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HF 630

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/18/2013 04:26pm

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

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1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 630
1.2A bill for an act
1.3relating to education; providing funding and policy for early childhood and
1.4family, prekindergarten through grade 12, and adult education, including
1.5general education, student accountability, education excellence, charter schools,
1.6special education, facilities, technology, nutrition, libraries, accounting, early
1.7childhood, self-sufficiency, lifelong learning, state agencies, and forecast
1.8adjustments; authorizing rulemaking; requiring reports; appropriating money;
1.9amending Minnesota Statutes 2012, sections 13.319, by adding a subdivision;
1.1015.059, subdivision 5b; 120A.20, subdivision 1; 120A.41; 120B.02; 120B.021,
1.11subdivision 1; 120B.023; 120B.024; 120B.125; 120B.128; 120B.30, subdivisions
1.121, 1a; 120B.31, subdivision 1; 120B.35, subdivision 3; 120B.36, subdivision
1.131; 121A.22, subdivision 2; 121A.2205; 122A.09, subdivision 4; 122A.18,
1.14subdivision 2; 122A.23, subdivision 2; 122A.28, subdivision 1; 122A.33,
1.15subdivision 3; 122A.61, subdivision 1; 123B.41, subdivision 7; 123B.54;
1.16123B.88, subdivision 22; 123B.92, subdivisions 1, 5; 124D.02, subdivision
1.171; 124D.095, subdivision 10; 124D.10; 124D.11, subdivision 5; 124D.111,
1.18subdivision 1; 124D.119; 124D.122; 124D.128, subdivision 2; 124D.42;
1.19124D.4531, subdivision 1; 124D.52, by adding a subdivision; 124D.531,
1.20subdivision 1; 124D.59, subdivision 2; 124D.61; 124D.79, subdivision 1, by
1.21adding a subdivision; 125A.0941; 125A.0942; 125A.11, subdivision 1; 125A.27,
1.22subdivisions 8, 11, 14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33;
1.23125A.35, subdivision 1; 125A.36; 125A.43; 125A.76, subdivisions 1, 4a, 8,
1.24by adding subdivisions; 125A.78, subdivision 2; 125A.79, subdivisions 1, 5;
1.25126C.01, by adding a subdivision; 126C.05, subdivisions 1, 15; 126C.10,
1.26subdivisions 1, 2, 14, 24, 29, 32; 126C.15, subdivisions 1, 2; 126C.17,
1.27subdivisions 1, 5, 6; 126C.40, subdivision 6; 126C.44; 126C.48, subdivision
1.288; 127A.47, subdivision 7; 128D.11, subdivision 3; 134.32; 134.34; 134.351,
1.29subdivisions 3, 7; 134.353; 134.354; 134.355, subdivisions 1, 2, 3, 4, 5, 6;
1.30134.36; 260A.02, subdivision 3; 260A.03; 260A.05, subdivision 1; 260A.07,
1.31subdivision 1; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First
1.32Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3,
1.33as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10,
1.34as amended; article 2, section 50, subdivisions 2, as amended, 4, as amended,
1.355, as amended, 6, as amended, 7, as amended, 9, as amended; article 3,
1.36section 11, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as
1.37amended; article 4, section 10, subdivisions 2, as amended, 3, as amended, 4,
1.38as amended, 6, as amended; article 5, section 12, subdivisions 2, as amended,
1.393, as amended, 4, as amended; article 6, section 2, subdivisions 2, as amended,
1.403, as amended, 5, as amended; article 7, section 2, subdivisions 2, as amended,
1.413, as amended, 4, as amended, 8, as amended; article 8, section 2, subdivisions
1.422, as amended, 3, as amended; article 9, section 3, subdivision 2, as amended;
1.43proposing coding for new law in Minnesota Statutes, chapters 120B; 121A;
2.1124D; 126C; 127A; proposing coding for new law as Minnesota Statutes, chapter
2.216F; repealing Minnesota Statutes 2012, sections 124D.454, subdivisions 3,
2.310, 11; 125A.35, subdivisions 4, 5; 125A.76, subdivisions 2, 4, 5, 7; 125A.79,
2.4subdivisions 6, 7; 126C.17, subdivision 13; Minnesota Rules, parts 3501.0010;
2.53501.0020; 3501.0030, subparts 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15,
2.616; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 3501.0100; 3501.0110;
2.73501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 3501.0170;
2.83501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240;
2.93501.0250; 3501.0270; 3501.0280, subparts 1, 2; 3501.0290; 3501.0505;
2.103501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530; 3501.0535;
2.113501.0540; 3501.0545; 3501.0550; 3501.1000; 3501.1020; 3501.1030;
2.123501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140;
2.133501.1150; 3501.1160; 3501.1170; 3501.1180; 3501.1190.
2.14May 18, 2013
2.15The Honorable Paul Thissen
2.16Speaker of the House of Representatives
2.17The Honorable Sandra L. Pappas
2.18President of the Senate
2.19We, the undersigned conferees for H. F. No. 630 report that we have agreed upon the
2.20items in dispute and recommend as follows:
2.21That the Senate recede from its amendments and that H. F. No. 630 be further
2.22amended as follows:
2.23Delete everything after the enacting clause and insert:

2.24
"ARTICLE 1
2.25GENERAL EDUCATION

2.26    Section 1. Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:
2.27    Subdivision 1. Age limitations; pupils. (a) All schools supported in whole or
2.28in part by state funds are public schools. Admission to a public school is free to any
2.29person who: (1) resides within the district that operates the school; (2) is under 21 years of
2.30age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age
2.31requirements imposed by this section. Notwithstanding the provisions of any law to the
2.32contrary, the conduct of all students under 21 years of age attending a public secondary
2.33school is governed by a single set of reasonable rules and regulations promulgated by the
2.34school board.
2.35(b) A person shall not be admitted to a public school (1) as a kindergarten pupil,
2.36unless the pupil is at least five years of age on September 1 of the calendar year in which
2.37the school year for which the pupil seeks admission commences; or (2) as a 1st grade
2.38student, unless the pupil is at least six years of age on September 1 of the calendar year in
2.39which the school year for which the pupil seeks admission commences or has completed
2.40kindergarten; except that any school board may establish a policy for admission of
2.41selected pupils at an earlier age under section 124D.02.
3.1(c) A pupil who becomes age 21 after enrollment is eligible for continued free public
3.2school enrollment until at least one of the following occurs: (1) the first September 1 after
3.3the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3)
3.4the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4)
3.5the end of the school year.

3.6    Sec. 2. Minnesota Statutes 2012, section 120A.41, is amended to read:
3.7120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
3.8A school board's annual school calendar must include at least 425 hours of
3.9instruction for a kindergarten student without a disability, 935 hours of instruction for a
3.10student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7
3.11though 12, not including summer school. Nothing in this section permits a school district
3.12to adopt The school calendar for all-day kindergarten must include at least 850 hours of
3.13instruction for the school year. A school board's annual calendar must include at least 165
3.14days of instruction for a student in grades 1 through 11 unless a four-day week schedule
3.15unless has been approved by the commissioner under section 124D.126.

3.16    Sec. 3. Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:
3.17    Subd. 3. Voluntary dissolution; referendum revenue. As of the effective date of
3.18the voluntary dissolution of a district and its attachment to one or more existing districts
3.19pursuant to section 123A.46, the authorization for all referendum revenues previously
3.20approved by the voters of all affected districts for those districts pursuant to section
3.21126C.17, subdivision 9 , or its predecessor provision, is canceled. However, if all of the
3.22territory of any independent district is included in the enlarged district, and if the adjusted
3.23net tax capacity of taxable property in that territory comprises 90 percent or more of
3.24the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged
3.25district's referendum revenue shall be determined as follows:
3.26The referendum revenue shall be the revenue per resident marginal cost adjusted
3.27 pupil unit times the number of resident marginal cost adjusted pupil units in the enlarged
3.28district. Any new referendum revenue shall be authorized only after approval is granted
3.29by the voters of the entire enlarged district in an election pursuant to section 126C.17,
3.30subdivision 9
.
3.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.32and later.

4.1    Sec. 4. Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:
4.2    Subd. 4. Consolidation; maximum authorized referendum revenues. (a) As
4.3of the effective date of a consolidation pursuant to section 123A.48, if the plan for
4.4consolidation so provides, or if the plan for consolidation makes no provision concerning
4.5referendum revenues, the authorization for all referendum revenues previously approved
4.6by the voters of all affected districts for those districts pursuant to section 126C.17,
4.7subdivision 9
, or its predecessor provision shall be recalculated as provided in this
4.8subdivision. The referendum revenue authorization for the newly created district shall
4.9be the revenue per resident marginal cost adjusted pupil unit that would raise an amount
4.10equal to the combined dollar amount of the referendum revenues authorized by each of
4.11the component districts for the year preceding the consolidation, unless the referendum
4.12revenue authorization of the newly created district is subsequently modified pursuant to
4.13section 126C.17, subdivision 9.
4.14(b) The referendum allowance for a consolidated district in the years following
4.15consolidation equals the average of the consolidating districts' existing authorities for those
4.16years, weighted by the districts' resident marginal cost adjusted pupil units in the year
4.17preceding consolidation. For purposes of this calculation, the referendum authorities used
4.18for individual districts shall not decrease from year to year until such time as all existing
4.19authorities for all the consolidating districts have fully expired, but shall increase if they
4.20were originally approved with consumer price index-based or other annual increases.
4.21(c) The referendum revenue authorization for the newly created district shall continue
4.22for a period of time equal to the longest period authorized for any component district.
4.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
4.24and later.

4.25    Sec. 5. Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:
4.26    Subd. 5. Alternative method. (a) As of the effective date of a consolidation
4.27pursuant to section 123A.48, if the plan for consolidation so provides, the authorization
4.28for all referendum revenues previously approved by the voters of all affected districts for
4.29those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision
4.30shall be combined as provided in this subdivision. The referendum revenue authorization
4.31for the newly created district may be any allowance per resident marginal cost adjusted
4.32 pupil unit provided in the plan for consolidation, but may not exceed the allowance
4.33per resident marginal cost adjusted pupil unit that would raise an amount equal to the
4.34combined dollar amount of the referendum revenues authorized by each of the component
4.35districts for the year preceding the consolidation.
5.1(b) The referendum allowance for a consolidated district in the years following
5.2consolidation equals the average of the consolidating districts' existing authorities for those
5.3years, weighted by the districts' resident marginal cost adjusted pupil units in the year
5.4preceding consolidation. For purposes of this calculation, the referendum authorities used
5.5for individual districts shall not decrease from year to year until such time as all existing
5.6authorities for all the consolidating districts have fully expired, but shall increase if they
5.7were originally approved with consumer price index-based or other annual increases.
5.8(c) The referendum revenue authorization for the newly created district shall
5.9continue for a period of time equal to the longest period authorized for any component
5.10district. The referendum revenue authorization for the newly created district may be
5.11modified pursuant to section 126C.17, subdivision 9.
5.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.13and later.

5.14    Sec. 6. Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:
5.15    Subd. 7. Elementary pupils. "Elementary pupils" means pupils in grades
5.16kindergarten through 6; provided, each kindergarten pupil in a half-day program shall be
5.17counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42,
5.18and 123B.44 to 123B.48.
5.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.20and later.

5.21    Sec. 7. Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:
5.22    Subd. 3. Cost; limitation. (a) The cost per pupil of the textbooks, individualized
5.23instructional or cooperative learning materials, software or other educational technology,
5.24and standardized tests provided for in this section for each school year must not exceed the
5.25statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
5.26public elementary and secondary schools for textbooks, individualized instructional
5.27materials and standardized tests as computed and established by the department by February
5.281 of the preceding school year from the most recent public school year data then available.
5.29(b) The cost computed in clause (a) shall be increased by an inflation adjustment
5.30equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
5.31subdivision 2
, from the second preceding school year to the current school year.
5.32 Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in
5.33section 126C.10, subdivision 2, the commissioner shall use the amount of the formula
6.1allowance for the current year minus $414 in determining the inflation adjustment for
6.2fiscal years 2015 and 2016.
6.3(c) The commissioner shall allot to the districts or intermediary service areas the
6.4total cost for each school year of providing or loaning the textbooks, individualized
6.5instructional or cooperative learning materials, software or other educational technology,
6.6and standardized tests for the pupils in each nonpublic school. The allotment shall not
6.7exceed the product of the statewide average expenditure per pupil, according to clause
6.8(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
6.9who make requests pursuant to this section and who are enrolled as of September 15 of
6.10the current school year.

6.11    Sec. 8. Minnesota Statutes 2012, section 123B.88, subdivision 22, is amended to read:
6.12    Subd. 22. Postsecondary enrollment options pupils. Districts may provide bus
6.13transportation along school bus routes when space is available, for pupils attending
6.14programs at a postsecondary institution under the postsecondary enrollment options
6.15program. The transportation is permitted only if it does not increase the district's
6.16expenditures for transportation. Fees collected for this service under section 123B.36,
6.17subdivision 1
, paragraph (13), shall be subtracted from the authorized cost for nonregular
6.18transportation for the purpose of section 123B.92. A school district may provide
6.19transportation for a pupil participating in an articulated program operated under an
6.20agreement between the school district and the postsecondary institution.

6.21    Sec. 9. Minnesota Statutes 2012, section 123B.92, subdivision 1, is amended to read:
6.22    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
6.23terms defined in this subdivision have the meanings given to them.
6.24    (a) "Actual expenditure per pupil transported in the regular and excess transportation
6.25categories" means the quotient obtained by dividing:
6.26    (1) the sum of:
6.27    (i) all expenditures for transportation in the regular category, as defined in paragraph
6.28(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
6.29    (ii) an amount equal to one year's depreciation on the district's school bus fleet
6.30and mobile units computed on a straight line basis at the rate of 15 percent per year for
6.31districts operating a program under section 124D.128 for grades 1 to 12 for all students in
6.32the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
6.33    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
6.34defined in section 169.011, subdivision 71, which must be used a majority of the time for
7.1pupil transportation purposes, computed on a straight line basis at the rate of 20 percent
7.2per year of the cost of the type three school buses by:
7.3    (2) the number of pupils eligible for transportation in the regular category, as defined
7.4in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
7.5    (b) "Transportation category" means a category of transportation service provided to
7.6pupils as follows:
7.7    (1) Regular transportation is:
7.8    (i) transportation to and from school during the regular school year for resident
7.9elementary pupils residing one mile or more from the public or nonpublic school they
7.10attend, and resident secondary pupils residing two miles or more from the public
7.11or nonpublic school they attend, excluding desegregation transportation and noon
7.12kindergarten transportation; but with respect to transportation of pupils to and from
7.13nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
7.14    (ii) transportation of resident pupils to and from language immersion programs;
7.15    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
7.16the pupil's home and the child care provider and between the provider and the school, if
7.17the home and provider are within the attendance area of the school;
7.18    (iv) transportation to and from or board and lodging in another district, of resident
7.19pupils of a district without a secondary school; and
7.20    (v) transportation to and from school during the regular school year required under
7.21subdivision 3 for nonresident elementary pupils when the distance from the attendance
7.22area border to the public school is one mile or more, and for nonresident secondary pupils
7.23when the distance from the attendance area border to the public school is two miles or
7.24more, excluding desegregation transportation and noon kindergarten transportation.
7.25    For the purposes of this paragraph, a district may designate a licensed day care facility,
7.26school day care facility, respite care facility, the residence of a relative, or the residence
7.27of a person or other location chosen by the pupil's parent or guardian, or an after-school
7.28program for children operated by a political subdivision of the state, as the home of a pupil
7.29for part or all of the day, if requested by the pupil's parent or guardian, and if that facility,
7.30residence, or program is within the attendance area of the school the pupil attends.
7.31    (2) Excess transportation is:
7.32    (i) transportation to and from school during the regular school year for resident
7.33secondary pupils residing at least one mile but less than two miles from the public or
7.34nonpublic school they attend, and transportation to and from school for resident pupils
7.35residing less than one mile from school who are transported because of full-service school
7.36zones, extraordinary traffic, drug, or crime hazards; and
8.1    (ii) transportation to and from school during the regular school year required under
8.2subdivision 3 for nonresident secondary pupils when the distance from the attendance area
8.3border to the school is at least one mile but less than two miles from the public school
8.4they attend, and for nonresident pupils when the distance from the attendance area border
8.5to the school is less than one mile from the school and who are transported because of
8.6full-service school zones, extraordinary traffic, drug, or crime hazards.
8.7    (3) Desegregation transportation is transportation within and outside of the district
8.8during the regular school year of pupils to and from schools located outside their normal
8.9attendance areas under a plan for desegregation mandated by the commissioner or under
8.10court order.
8.11    (4) "Transportation services for pupils with disabilities" is:
8.12    (i) transportation of pupils with disabilities who cannot be transported on a regular
8.13school bus between home or a respite care facility and school;
8.14    (ii) necessary transportation of pupils with disabilities from home or from school to
8.15other buildings, including centers such as developmental achievement centers, hospitals,
8.16and treatment centers where special instruction or services required by sections 125A.03
8.17to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
8.18where services are provided;
8.19    (iii) necessary transportation for resident pupils with disabilities required by sections
8.20125A.12 , and 125A.26 to 125A.48;
8.21    (iv) board and lodging for pupils with disabilities in a district maintaining special
8.22classes;
8.23    (v) transportation from one educational facility to another within the district for
8.24resident pupils enrolled on a shared-time basis in educational programs, and necessary
8.25transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
8.26with disabilities who are provided special instruction and services on a shared-time basis
8.27or if resident pupils are not transported, the costs of necessary travel between public
8.28and private schools or neutral instructional sites by essential personnel employed by the
8.29district's program for children with a disability;
8.30    (vi) transportation for resident pupils with disabilities to and from board and lodging
8.31facilities when the pupil is boarded and lodged for educational purposes;
8.32(vii) transportation of pupils for a curricular field trip activity on a school bus
8.33equipped with a power lift when the power lift is required by a student's disability or
8.34section 504 plan; and
8.35(viii) services described in clauses (i) to (vii), when provided for pupils with
8.36disabilities in conjunction with a summer instructional program that relates to the
9.1pupil's individualized education program or in conjunction with a learning year program
9.2established under section 124D.128.
9.3    For purposes of computing special education initial aid under section 125A.76,
9.4subdivision 2, the cost of providing transportation for children with disabilities includes
9.5(A) the additional cost of transporting a homeless student from a temporary nonshelter
9.6home in another district to the school of origin, or a formerly homeless student from a
9.7permanent home in another district to the school of origin but only through the end of
9.8the academic year; and (B) depreciation on district-owned school buses purchased after
9.9July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated
9.10according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the
9.11disabled transportation category must be excluded in calculating the actual expenditure
9.12per pupil transported in the regular and excess transportation categories according to
9.13paragraph (a). For purposes of subitem (A), a school district may transport a child who
9.14does not have a school of origin to the same school attended by that child's sibling, if
9.15the siblings are homeless.
9.16    (5) "Nonpublic nonregular transportation" is:
9.17    (i) transportation from one educational facility to another within the district for
9.18resident pupils enrolled on a shared-time basis in educational programs, excluding
9.19transportation for nonpublic pupils with disabilities under clause (4);
9.20    (ii) transportation within district boundaries between a nonpublic school and a
9.21public school or a neutral site for nonpublic school pupils who are provided pupil support
9.22services pursuant to section 123B.44; and
9.23    (iii) late transportation home from school or between schools within a district for
9.24nonpublic school pupils involved in after-school activities.
9.25    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
9.26educational programs and services, including diagnostic testing, guidance and counseling
9.27services, and health services. A mobile unit located off nonpublic school premises is a
9.28neutral site as defined in section 123B.41, subdivision 13.
9.29EFFECTIVE DATE.This section is effective July 1, 2013.

9.30    Sec. 10. Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:
9.31    Subd. 5. District reports. (a) Each district must report data to the department as
9.32required by the department to account for transportation expenditures.
9.33(b) Salaries and fringe benefits of district employees whose primary duties are
9.34other than transportation, including central office administrators and staff, building
9.35administrators and staff, teachers, social workers, school nurses, and instructional aides,
10.1must not be included in a district's transportation expenditures, except that a district may
10.2include salaries and benefits according to paragraph (c) for (1) an employee designated
10.3as the district transportation director, (2) an employee providing direct support to the
10.4transportation director, or (3) an employee providing direct transportation services such as
10.5a bus driver or bus aide.
10.6(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
10.7clauses (1), (2), and (3), who work part time in transportation and part time in other areas
10.8must not be included in a district's transportation expenditures unless the district maintains
10.9documentation of the employee's time spent on pupil transportation matters in the form
10.10and manner prescribed by the department.
10.11(d) A school district that contracts for transportation service may allocate
10.12transportation expense to transportation categories based upon contract rates. Districts
10.13may only allocate transportation expense to transportation categories based upon contract
10.14rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile,
10.15cost-per-route, or cost-per-student basis. In order to allocate transportation expense based
10.16upon contract rates, a school district, if audited, must be able to demonstrate to the auditor
10.17that variances in the application of transportation cost basis rates are appropriate.
10.18(e) Pupil transportation expenditures, excluding expenditures for capital outlay,
10.19leased buses, student board and lodging, crossing guards, and aides on buses, must may
10.20 be allocated among transportation categories based on cost-per-mile or cost-per-student
10.21regardless of whether the transportation services are provided on district-owned or
10.22contractor-owned school buses. Expenditures for school bus driver salaries and fringe
10.23benefits may either be directly charged to the appropriate transportation category or may
10.24be allocated among transportation categories based on cost-per-mile or cost-per-student.
10.25Expenditures by private contractors or individuals who provide transportation exclusively
10.26in one transportation category must be charged directly to the appropriate transportation
10.27category. Transportation services provided by contractor-owned school bus companies
10.28incorporated under different names but owned by the same individual or group of
10.29individuals must be treated as the same company for cost allocation purposes.
10.30(e) Notwithstanding paragraph (d), districts contracting for transportation services
10.31are exempt from the standard cost allocation method for authorized and nonauthorized
10.32transportation categories if the district: (1) bids its contracts separately for authorized and
10.33nonauthorized transportation categories and for special transportation separate from regular
10.34and excess transportation; (2) receives bids or quotes from more than one vendor for these
10.35transportation categories; and (3) the district's cost-per-mile does not vary more than ten
10.36percent among categories, excluding salaries and fringe benefits of bus aides. If the costs
11.1reported by the district for contractor-owned operations vary by more than ten percent
11.2among categories, the department shall require the district to reallocate its transportation
11.3costs, excluding salaries and fringe benefits of bus aides, among all categories.
11.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
11.5and later.

11.6    Sec. 11. Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:
11.7    Subd. 9. Nonpublic pupil transportation aid. (a) A district's nonpublic pupil
11.8transportation aid for the 1996-1997 and later school years for transportation services for
11.9nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this
11.10section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does
11.11not limit the obligation to transport pupils under sections 123B.84 to 123B.87.
11.12(b) For regular and excess transportation according to subdivision 1, paragraph (b),
11.13clauses (1) and (2), an amount equal to the product of:
11.14(1) the district's actual expenditure per pupil transported in the regular and excess
11.15transportation categories during the second preceding school year; times
11.16(2) the number of nonpublic school pupils residing in the district who receive regular
11.17or excess transportation service or reimbursement for the current school year; times
11.18(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
11.19the current school year to the formula allowance pursuant to section 126C.10, subdivision
11.202
, for the second preceding school year.
11.21(c) For nonpublic nonregular transportation according to subdivision 1, paragraph
11.22(b), clause (5), an amount equal to the product of:
11.23(1) the district's actual expenditure for nonpublic nonregular transportation during
11.24the second preceding school year; times
11.25(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
11.26the current school year to the formula allowance pursuant to section 126C.10, subdivision
11.272
, for the second preceding school year.
11.28(d) Notwithstanding the amount of the formula allowance for fiscal year 2004
11.29 years 2015 and 2016 in section 126C.10, subdivision 2, the commissioner shall use the
11.30amount of the formula allowance for the current year minus $415 $414 in determining
11.31the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal year 2004
11.32 years 2015 and 2016.
11.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
11.34and later.

12.1    Sec. 12. Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:
12.2    Subdivision 1. Kindergarten instruction. The board may establish and maintain
12.3one or more kindergartens for the instruction of children and after July 1, 1974, shall
12.4provide kindergarten instruction for all eligible children, either in the district or in
12.5another district. All children to be eligible for kindergarten must be at least five years
12.6of age on September 1 of the calendar year in which the school year commences. In
12.7addition all children selected under an early admissions policy established by the school
12.8board may be admitted. If established, a board-adopted early admissions policy must
12.9describe the process and procedures for comprehensive evaluation in cognitive, social,
12.10and emotional developmental domains to help determine the child's ability to meet
12.11kindergarten grade expectations and progress to first grade in the subsequent year. The
12.12comprehensive evaluation must use valid and reliable instrumentation, be aligned with
12.13state kindergarten expectations, and include a parent report and teacher observations of
12.14the child's knowledge, skills, and abilities. The early admissions policy must be made
12.15available to parents in an accessible format and is subject to review by the commissioner
12.16of education. The evaluation is subject to section 127A.41. Nothing in this section
12.17shall prohibit a school district from establishing Head Start, prekindergarten, or nursery
12.18school classes for children below kindergarten age. Any school board with evidence that
12.19providing kindergarten will cause an extraordinary hardship on the school district may
12.20apply to the commissioner of education for an exception.

12.21    Sec. 13. Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:
12.22    Subd. 2. Commissioner designation. (a) A state-approved alternative program
12.23designated by the state must be a site. A state-approved alternative program must provide
12.24services to students who meet the criteria in section 124D.68 and who are enrolled in:
12.25    (1) a district that is served by the state-approved alternative program; or
12.26    (2) a charter school located within the geographic boundaries of a district that is
12.27served by the state-approved alternative program.
12.28    (b) A school district or charter school may be approved biennially by the state to
12.29provide additional instructional programming that results in grade level acceleration. The
12.30program must be designed so that students make grade progress during the school year
12.31and graduate prior to the students' peers.
12.32    (c) (b) To be designated, a district, charter school, or state-approved alternative
12.33program must demonstrate to the commissioner that it will:
12.34    (1) provide a program of instruction that permits pupils to receive instruction
12.35throughout the entire year; and
13.1    (2) develop and maintain a separate record system that, for purposes of section
13.2126C.05 , permits identification of membership attributable to pupils participating in the
13.3program. The record system and identification must ensure that the program will not have
13.4the effect of increasing the total average daily membership attributable to an individual
13.5pupil as a result of a learning year program. The record system must include the date the
13.6pupil originally enrolled in a learning year program, the pupil's grade level, the date of
13.7each grade promotion, the average daily membership generated in each grade level, the
13.8number of credits or standards earned, and the number needed to graduate.
13.9    (d) (c) A student who has not completed a school district's graduation requirements
13.10may continue to enroll in courses the student must complete in order to graduate until
13.11the student satisfies the district's graduation requirements or the student is 21 years old,
13.12whichever comes first.

13.13    Sec. 14. Minnesota Statutes 2012, section 124D.4531, is amended to read:
13.14124D.4531 CAREER AND TECHNICAL LEVY REVENUE.
13.15    Subdivision 1. Career and technical levy revenue. (a) A district with a career and
13.16technical program approved under this section for the fiscal year in which the levy is
13.17certified may levy an amount is eligible for career and technical revenue equal to 35 percent
13.18of approved expenditures in the fiscal year in which the levy is certified for the following:
13.19(1) salaries paid to essential, licensed personnel providing direct instructional
13.20services to students in that fiscal year, including extended contracts, for services rendered
13.21in the district's approved career and technical education programs, excluding salaries
13.22reimbursed by another school district under clause (2);
13.23(2) amounts paid to another Minnesota school district for salaries of essential,
13.24licensed personnel providing direct instructional services to students in that fiscal year for
13.25services rendered in the district's approved career and technical education programs;
13.26(2) (3) contracted services provided by a public or private agency other than a
13.27Minnesota school district or cooperative center under subdivision 7;
13.28(3) (4) necessary travel between instructional sites by licensed career and technical
13.29education personnel;
13.30(4) (5) necessary travel by licensed career and technical education personnel for
13.31vocational student organization activities held within the state for instructional purposes;
13.32(5) (6) curriculum development activities that are part of a five-year plan for
13.33improvement based on program assessment;
13.34(6) (7) necessary travel by licensed career and technical education personnel for
13.35noncollegiate credit-bearing professional development; and
14.1(7) (8) specialized vocational instructional supplies.
14.2(b) Up to ten percent of a district's career and technical levy revenue may be spent on
14.3equipment purchases. Districts using the career and technical levy revenue for equipment
14.4purchases must report to the department on the improved learning opportunities for
14.5students that result from the investment in equipment.
14.6(c) The district must recognize the full amount of this levy as revenue for the fiscal
14.7year in which it is certified.
14.8(d) The amount of the levy certified revenue calculated under this subdivision may
14.9not exceed $17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013,
14.10and $15,393,000 $20,657,000 for taxes payable in 2014.
14.11(e) If the estimated levy revenue exceeds the amount in paragraph (d), the
14.12commissioner must reduce the percentage in paragraph (a), clause (2), until the estimated
14.13levy revenue no longer exceeds the limit in paragraph (d).
14.14    Subd. 1a. Career and technical levy. (a) For fiscal year 2014 only, a district may
14.15levy an amount not more than the product of its career and technical revenue times the
14.16lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit in the fiscal
14.17year in which the levy is certified to the career and technical revenue equalizing factor.
14.18The career and technical revenue equalizing factor for fiscal year 2014 equals $7,612.
14.19(b) For fiscal year 2015 and later, a district may levy an amount not more than
14.20the product of its career and technical revenue times the lesser of one or the ratio of its
14.21adjusted net tax capacity per adjusted pupil unit in the fiscal year in which the levy is
14.22certified to the career and technical revenue equalizing factor. The career and technical
14.23revenue equalizing factor for fiscal year 2015 and later equals $7,612.
14.24    Subd. 1b. Career and technical aid. For fiscal year 2014 and later, a district's
14.25career and technical aid equals its career and technical revenue less its career and technical
14.26levy. If the district levy is less than the permitted levy, the district's career and technical
14.27aid shall be reduced proportionately.
14.28    Subd. 2. Allocation from cooperative centers and intermediate districts. For
14.29purposes of this section, a cooperative center or an intermediate district must allocate its
14.30approved expenditures for career and technical education programs among participating
14.31districts.
14.32    Subd. 3. Levy Revenue guarantee. Notwithstanding subdivision 1, paragraph (a),
14.33the career and technical education levy revenue for a district is not less than the lesser of:
14.34(1) the district's career and technical education levy authority revenue for the
14.35previous fiscal year; or
15.1(2) 100 percent of the approved expenditures for career and technical programs
15.2included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.
15.3    Subd. 3a. Levy, pay 2012-2014 Revenue adjustments. Notwithstanding
15.4subdivisions 1, 1a, and 3, for taxes payable in 2012 to 2014 only, the department must
15.5calculate the career and technical levy authority revenue for each district according to
15.6Minnesota Statutes 2010, section 124D.4531, and adjust the levy authority revenue for
15.7each district proportionately to meet the statewide levy revenue target under subdivision 1,
15.8paragraph (d). For purposes of calculating the levy revenue guarantee under subdivision
15.93, the career and technical education levy authority revenue for the previous fiscal year
15.10is the levy authority revenue according to Minnesota Statutes 2010, section 124D.4531,
15.11before adjustments to meet the statewide levy revenue target.
15.12    Subd. 4. District reports. Each district or cooperative center must report data to the
15.13department for all career and technical education programs as required by the department
15.14to implement the career and technical levy revenue formula.
15.15    Subd. 5. Allocation from districts participating in agreements for secondary
15.16education or interdistrict cooperation. For purposes of this section, a district with a
15.17career and technical program approved under this section that participates in an agreement
15.18under section 123A.30 or 123A.32 must allocate its levy revenue authority under this
15.19section among participating districts.
15.20EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

15.21    Sec. 15. Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:
15.22    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
15.23age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
15.24in average daily membership enrolled in the district of residence, in another district under
15.25sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
15.26section 124D.10; or for whom the resident district pays tuition under section 123A.18,
15.27123A.22 , 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
15.28124D.05 , 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
15.29subdivision.
15.30    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
15.31by the commissioner and has an individualized education program is counted as the ratio
15.32of the number of hours of assessment and education service to 825 times 1.25 1.0 with a
15.33minimum average daily membership of 0.28, but not more than 1.25 1.0 pupil units.
15.34    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
15.35counted as the ratio of the number of hours of assessment service to 825 times 1.25 1.0.
16.1    (c) A kindergarten pupil with a disability who is enrolled in a program approved
16.2by the commissioner is counted as the ratio of the number of hours of assessment and
16.3education services required in the fiscal year by the pupil's individualized education
16.4program to 875, but not more than one.
16.5    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 pupil
16.6units A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
16.7units if the pupil is enrolled in a free all-day, every day kindergarten program available to
16.8all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
16.9section 120A.41, or is counted as .55 pupil units, if the pupil is not enrolled in a free all-day,
16.10every day kindergarten program available to all kindergarten pupils at the pupil's school.
16.11    (e) A pupil who is in any of grades 1 to 3 6 is counted as 1.115 1.0 pupil units for
16.12fiscal year 2000 and thereafter.
16.13    (f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
16.14year 1995 and thereafter.
16.15    (g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.2 pupil units.
16.16    (h) (g) A pupil who is in the postsecondary enrollment options program is counted
16.17as 1.3 1.2 pupil units.
16.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
16.19and later.

16.20    Sec. 16. Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:
16.21    Subd. 5. Adjusted pupil units. (a) Adjusted pupil units for a district or charter
16.22school means the sum of:
16.23(1) the number of pupil units served, according to subdivision 7, plus
16.24(2) pupil units according to subdivision 1 for whom the district or charter school pays
16.25tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
16.26subdivision 4
, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus
16.27(3) pupil units according to subdivision 1 for whom the district or charter school
16.28receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
16.29123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
16.30(b) Adjusted marginal cost pupil units means the greater of:
16.31(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
16.32year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
16.33(2) the number of adjusted pupil units defined in paragraph (a) for the current school
16.34year.
17.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.2and later.

17.3    Sec. 17. Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:
17.4    Subd. 6. Resident pupil units. (a) Resident pupil units for a district means the
17.5number of pupil units according to subdivision 1 residing in the district.
17.6(b) Resident marginal cost pupil units means the greater of:
17.7(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
17.8and .23 times the pupil units defined in paragraph (a) for the previous school year; or
17.9(2) the number of resident pupil units defined in paragraph (a) for the current school
17.10year.
17.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.12and later.

17.13    Sec. 18. Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:
17.14    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
17.15year program under section 124D.128, an area learning center or an alternative learning
17.16program approved by the commissioner under sections 123A.05 and 123A.06, or a
17.17contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
17.18subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more
17.19than 935 hours in a school year for an elementary student, more than 850 hours in a school
17.20year for a kindergarten student without a disability in an all-day kindergarten program,
17.21or more than 425 hours in a school year for a half-day kindergarten student without a
17.22disability, that pupil may be counted as more than one pupil in average daily membership
17.23for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
17.24be determined by the ratio of the number of hours of instruction provided to that pupil in
17.25excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
17.26secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
17.27or the number of hours required for a full-time elementary pupil in the district to 935 for
17.28an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number
17.29of hours required for a full-time kindergarten student without a disability in the district to
17.30425 for a kindergarten student without a disability; and (iv) the greater of 425 hours or the
17.31number of hours required for a half-time kindergarten student without a disability in the
17.32district to 425 for a half-day kindergarten student without a disability. Hours that occur
17.33after the close of the instructional year in June shall be attributable to the following fiscal
17.34year. A kindergarten student must not be counted as more than 1.2 pupils in average daily
18.1membership under this subdivision. A student in kindergarten or grades 1 through 12 must
18.2not be counted as more than 1.2 pupils in average daily membership under this subdivision.
18.3(b)(i) To receive general education revenue for a pupil in an area learning center
18.4or alternative learning program that has an independent study component, a district
18.5must meet the requirements in this paragraph. The district must develop, for the pupil,
18.6a continual learning plan consistent with section 124D.128, subdivision 3. Each school
18.7district that has an area learning center or alternative learning program must reserve
18.8revenue in an amount equal to at least 90 percent of the district average general education
18.9revenue per pupil unit, minus an amount equal to the product of the formula allowance
18.10according to section 126C.10, subdivision 2, times .0485 .0466, calculated without basic
18.11skills and transportation sparsity revenue, times the number of pupil units generated by
18.12students attending an area learning center or alternative learning program. The amount of
18.13reserved revenue available under this subdivision may only be spent for program costs
18.14associated with the area learning center or alternative learning program. Basic skills
18.15revenue generated according to section 126C.10, subdivision 4, by pupils attending the
18.16eligible program must be allocated to the program.
18.17(ii) General education revenue for a pupil in a state-approved alternative program
18.18without an independent study component must be prorated for a pupil participating for less
18.19than a full year, or its equivalent. The district must develop a continual learning plan for the
18.20pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
18.21learning center or alternative learning program must reserve revenue in an amount equal to
18.22at least 90 percent of the district average general education revenue per pupil unit, minus
18.23an amount equal to the product of the formula allowance according to section 126C.10,
18.24subdivision 2
, times .0485 .0466, calculated without basic skills and transportation sparsity
18.25revenue, times the number of pupil units generated by students attending an area learning
18.26center or alternative learning program. The amount of reserved revenue available under this
18.27subdivision may only be spent for program costs associated with the area learning center or
18.28alternative learning program. Basic skills revenue generated according to section 126C.10,
18.29subdivision 4
, by pupils attending the eligible program must be allocated to the program.
18.30(iii) General education revenue for a pupil in a state-approved alternative program
18.31that has an independent study component must be paid for each hour of teacher contact
18.32time and each hour of independent study time completed toward a credit or graduation
18.33standards necessary for graduation. Average daily membership for a pupil shall equal the
18.34number of hours of teacher contact time and independent study time divided by 1,020.
18.35(iv) For a state-approved alternative program having an independent study
18.36component, the commissioner shall require a description of the courses in the program, the
19.1kinds of independent study involved, the expected learning outcomes of the courses, and
19.2the means of measuring student performance against the expected outcomes.
19.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
19.4and later.

19.5    Sec. 19. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
19.6    Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
19.7general education revenue for each district equals the sum of the district's basic revenue,
19.8extended time revenue, gifted and talented revenue, small schools revenue, basic skills
19.9revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
19.10revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
19.11alternative teacher compensation revenue, and transition revenue.
19.12(b) For fiscal year 2015 and later, the general education revenue for each district
19.13equals the sum of the district's basic revenue, extended time revenue, gifted and talented
19.14revenue, declining enrollment revenue, small schools revenue, basic skills revenue,
19.15secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue,
19.16total operating capital revenue, equity revenue, pension adjustment revenue, and transition
19.17revenue.

19.18    Sec. 20. Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:
19.19    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
19.20equals the formula allowance times the adjusted marginal cost pupil units for the school
19.21year. The formula allowance for fiscal year 2011 is $5,124. The formula allowance for
19.22fiscal year 2012 is $5,174. For fiscal year 2015 and later, the basic revenue for each district
19.23equals the formula allowance times the adjusted pupil units for the school year. The formula
19.24allowance for fiscal year 2013 and subsequent years is $5,224. The formula allowance for
19.25fiscal year 2014 is $5,302. The formula allowance for fiscal year 2015 and later is $5,806.

19.26    Sec. 21. Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:
19.27    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue
19.28is equal to the product of $4,601 $5,017 and the sum of the adjusted marginal cost pupil
19.29units of the district for each pupil in average daily membership in excess of 1.0 and less
19.30than 1.2 according to section 126C.05, subdivision 8.
19.31(b) A school district's extended time revenue may be used for extended day
19.32programs, extended week programs, summer school, and other programming authorized
19.33under the learning year program.

20.1    Sec. 22. Minnesota Statutes 2012, section 126C.10, subdivision 2b, is amended to read:
20.2    Subd. 2b. Gifted and talented revenue. Gifted and talented revenue for each
20.3district equals the district's adjusted marginal cost pupil units for that school year times
20.4$12 for fiscal year 2008 and later $13. A school district must reserve gifted and talented
20.5revenue and, consistent with section 120B.15, must spend the revenue only to:
20.6    (1) identify gifted and talented students;
20.7    (2) provide education programs for gifted and talented students; or
20.8    (3) provide staff development to prepare teachers to best meet the unique needs
20.9of gifted and talented students.
20.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
20.11and later.

20.12    Sec. 23. Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:
20.13    Subd. 2c. Small schools revenue. (a) A school district, not including a charter
20.14school, is eligible for small schools revenue equal to the greater of the calculation under
20.15paragraph (b) or (d).
20.16(b) The product of:
20.17(1) $5,224 $544;
20.18(2) the district's adjusted marginal cost pupil units for that year; and
20.19(3) the greater of zero or the ratio of (i) 1,000 960 less the district's adjusted marginal
20.20cost pupil units for that year, to (ii) 1,000; and
20.21(4) 0.10 960.
20.22(c) For the purpose of revenue calculated under paragraph (d), "district" includes a
20.23qualifying high school under subdivision 6 that is located in a district with more than one
20.24qualifying high school under subdivision 6.
20.25(d) The product of:
20.26(1) $544;
20.27(2) the district's adjusted pupil units for that year; and
20.28(3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units
20.29for that year, to (ii) 960.
20.30EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
20.31later.

20.32    Sec. 24. Minnesota Statutes 2012, section 126C.10, is amended by adding a
20.33subdivision to read:
21.1    Subd. 2d. Declining enrollment revenue. A school district's declining enrollment
21.2revenue equals the greater of zero or the product of: (1) 28 percent of the formula
21.3allowance for that year and (2) the difference between the adjusted pupil units for the
21.4preceding year and the adjusted pupil units for the current year.
21.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
21.6and later.

21.7    Sec. 25. Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:
21.8    Subd. 3. Compensatory education revenue. (a) For fiscal year 2014, the
21.9compensatory education revenue for each building in the district equals the formula
21.10allowance minus $415 times the compensation revenue pupil units computed according
21.11to section 126C.05, subdivision 3. For fiscal year 2015 and later, the compensatory
21.12education revenue for each building in the district equals the formula allowance minus
21.13$839 times the compensation revenue pupil units computed according to section 126C.05,
21.14subdivision 3. Revenue shall be paid to the district and must be allocated according to
21.15section 126C.15, subdivision 2.
21.16(b) When the district contracting with an alternative program under section 124D.69
21.17changes prior to the start of a school year, the compensatory revenue generated by pupils
21.18attending the program shall be paid to the district contracting with the alternative program
21.19for the current school year, and shall not be paid to the district contracting with the
21.20alternative program for the prior school year.
21.21(c) When the fiscal agent district for an area learning center changes prior to the start
21.22of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
21.23current school year, and shall not be paid to the fiscal agent district for the prior school year.

21.24    Sec. 26. Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:
21.25    Subd. 7. Secondary sparsity revenue. (a) A district's secondary sparsity revenue
21.26for a school year equals the sum of the results of the following calculation for each
21.27qualifying high school in the district:
21.28(1) the formula allowance for the school year minus $530, multiplied by
21.29(2) the secondary average daily membership of pupils served in the high school,
21.30multiplied by
21.31(3) the quotient obtained by dividing 400 minus the secondary average daily
21.32membership by 400 plus the secondary daily membership, multiplied by
21.33(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
21.3423 by ten.
22.1(b) A newly formed district that is the result of districts combining under the
22.2cooperation and combination program or consolidating under section 123A.48 must
22.3receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
22.4under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
22.5sparsity revenue the former districts had in the year prior to consolidation, increased for
22.6any subsequent changes in the secondary sparsity formula.
22.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
22.8and later.

22.9    Sec. 27. Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:
22.10    Subd. 8. Elementary sparsity revenue. A district's elementary sparsity revenue
22.11equals the sum of the following amounts for each qualifying elementary school in the
22.12district:
22.13(1) the formula allowance for the year minus $530, multiplied by
22.14(2) the elementary average daily membership of pupils served in the school,
22.15multiplied by
22.16(3) the quotient obtained by dividing 140 minus the elementary average daily
22.17membership by 140 plus the average daily membership.
22.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
22.19and later.

22.20    Sec. 28. Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:
22.21    Subd. 13. Total operating capital revenue. (a) Total operating capital revenue for
22.22a district equals the amount determined under paragraph (b) or (c), plus $73 $79 times the
22.23adjusted marginal cost pupil units for the school year. The revenue must be placed in a
22.24reserved account in the general fund and may only be used according to subdivision 14.
22.25(b) Capital revenue for a district equals $100 $109 times the district's maintenance
22.26cost index times its adjusted marginal cost pupil units for the school year.
22.27(c) The revenue for a district that operates a program under section 124D.128, is
22.28increased by an amount equal to $30 $31 times the number of marginal cost adjusted pupil
22.29units served at the site where the program is implemented.
22.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
22.31and later.

22.32    Sec. 29. Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:
23.1    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
23.2year 2007 2015 and later, a district may levy an amount not more than the product of its
23.3operating capital revenue for the fiscal year times the lesser of one or the ratio of its
23.4adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
23.5equalizing factor. The operating capital equalizing factor equals $10,194 $14,500.
23.6EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

23.7    Sec. 30. Minnesota Statutes 2012, section 126C.10, subdivision 14, is amended to read:
23.8    Subd. 14. Uses of total operating capital revenue. Total operating capital revenue
23.9may be used only for the following purposes:
23.10(1) to acquire land for school purposes;
23.11(2) to acquire or construct buildings for school purposes;
23.12(3) to rent or lease buildings, including the costs of building repair or improvement
23.13that are part of a lease agreement;
23.14(4) to improve and repair school sites and buildings, and equip or reequip school
23.15buildings with permanent attached fixtures, including library media centers;
23.16(5) for a surplus school building that is used substantially for a public nonschool
23.17purpose;
23.18(6) to eliminate barriers or increase access to school buildings by individuals with a
23.19disability;
23.20(7) to bring school buildings into compliance with the State Fire Code adopted
23.21according to chapter 299F;
23.22(8) to remove asbestos from school buildings, encapsulate asbestos, or make
23.23asbestos-related repairs;
23.24(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
23.25(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
23.26or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
23.27in section 296A.01;
23.28(11) for energy audits for school buildings and to modify buildings if the audit
23.29indicates the cost of the modification can be recovered within ten years;
23.30(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
23.31(13) to pay special assessments levied against school property but not to pay
23.32assessments for service charges;
23.33(14) to pay principal and interest on state loans for energy conservation according to
23.34section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
23.35Fund Act according to sections 298.292 to 298.298;
24.1(15) to purchase or lease interactive telecommunications equipment;
24.2(16) by board resolution, to transfer money into the debt redemption fund to: (i)
24.3pay the amounts needed to meet, when due, principal and interest payments on certain
24.4obligations issued according to chapter 475; or (ii) pay principal and interest on debt
24.5service loans or capital loans according to section 126C.70;
24.6(17) to pay operating capital-related assessments of any entity formed under a
24.7cooperative agreement between two or more districts;
24.8(18) to purchase or lease computers and related materials hardware, software, and
24.9annual licensing fees, copying machines, telecommunications equipment, and other
24.10noninstructional equipment;
24.11(19) to purchase or lease assistive technology or equipment for instructional
24.12programs;
24.13(20) to purchase textbooks as defined in section 123B.41, subdivision 2;
24.14(21) to purchase new and replacement library media resources or technology;
24.15(22) to lease or purchase vehicles;
24.16(23) to purchase or lease telecommunications equipment, computers, and related
24.17equipment for integrated information management systems for:
24.18(i) managing and reporting learner outcome information for all students under a
24.19results-oriented graduation rule;
24.20(ii) managing student assessment, services, and achievement information required
24.21for students with individualized education programs; and
24.22(iii) other classroom information management needs;
24.23(24) to pay personnel costs directly related to the acquisition, operation, and
24.24maintenance of telecommunications systems, computers, related equipment, and network
24.25and applications software; and
24.26(25) to pay the costs directly associated with closing a school facility, including
24.27moving and storage costs.

24.28    Sec. 31. Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:
24.29    Subd. 18. Transportation sparsity revenue allowance. (a) A district's
24.30transportation sparsity allowance equals the greater of zero or the result of the following
24.31computation:
24.32(i) Multiply the formula allowance according to subdivision 2, by .1469 .141.
24.33(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
24.3426/100 power.
25.1(iii) Multiply the result in clause (ii) by the district's density index raised to the
25.213/100 power.
25.3(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0466.
25.4(v) Subtract the result in clause (iv) from the result in clause (iii).
25.5(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
25.6times the adjusted marginal cost pupil units.
25.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
25.8and later.

25.9    Sec. 32. Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:
25.10    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
25.11    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
25.12transition revenue, and referendum revenue is less than the value of the school district at
25.13or immediately above the 95th percentile of school districts in its equity region for those
25.14revenue categories; and
25.15    (2) the school district's administrative offices are not located in a city of the first
25.16class on July 1, 1999.
25.17    (b) Equity revenue for a qualifying district that receives referendum revenue under
25.18section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal
25.19cost pupil units for that year; times (2) the sum of (i) $13 $14, plus (ii) $75 $80, times the
25.20school district's equity index computed under subdivision 27.
25.21    (c) Equity revenue for a qualifying district that does not receive referendum revenue
25.22under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
25.23cost pupil units for that year times $13 $14.
25.24    (d) A school district's equity revenue is increased by the greater of zero or an amount
25.25equal to the district's resident marginal cost pupil units times the difference between ten
25.26percent of the statewide average amount of referendum revenue per resident marginal cost
25.27 pupil unit for that year and the district's referendum revenue per resident marginal cost
25.28 pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
25.29that year.
25.30    (e) A school district's equity revenue for a school district located in the metro equity
25.31region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
25.32    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), A school
25.33district that has per pupil referendum revenue below the 95th percentile qualifies for
25.34 district's additional equity revenue equal to $46 equals $50 times its adjusted marginal
25.35cost pupil units.
26.1    (g) A district that does not qualify for revenue under paragraph (f) qualifies for
26.2equity revenue equal to $46 times its adjusted marginal cost pupil units.
26.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
26.4and later.

26.5    Sec. 33. Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:
26.6    Subd. 29. Equity levy. To obtain equity revenue for fiscal year 2005 2015 and later,
26.7a district may levy an amount not more than the product of its equity revenue for the
26.8fiscal year times the lesser of one or the ratio of its referendum market value per resident
26.9marginal cost pupil unit to $476,000 $510,000.
26.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
26.11and later.

26.12    Sec. 34. Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:
26.13    Subd. 31. Transition revenue. (a) A district's transition allowance equals the sum of
26.14the transition revenue the district would have received for fiscal year 2015 under Minnesota
26.15Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater of zero or
26.16the product of the ratio of the number of adjusted marginal cost pupil units the district
26.17would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's
26.18adjusted marginal cost pupil units for fiscal year 2004, times the difference between:
26.19    (1) the lesser sum of:
26.20    (i) the district's general education revenue per adjusted marginal cost pupil unit
26.21for fiscal year 2003 or the amount of general education revenue the district would have
26.22received per adjusted marginal cost pupil unit for fiscal year 2004 2015 according to
26.23Minnesota Statutes 2002, 2012, section 126C.10;
26.24(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
26.25Statutes 2012, section 124D.86;
26.26(iii) the pension adjustment the district would have received for fiscal year 2015
26.27under Minnesota Statutes 2012, section 127A.50;
26.28(iv) the special education aid the district would have received for fiscal year 2015
26.29under Minnesota Statutes 2012, section 125A.76; and
26.30(v) the special education excess cost aid the district would have received for fiscal
26.31year 2015 under Minnesota Statutes 2012, section 125A.79; and
26.32(2) the sum of the district's:
27.1(i) general education revenue for fiscal year 2004 2015 excluding transition revenue
27.2under section 126C.10;
27.3(ii) achievement and integration revenue for fiscal year 2015 under section
27.4124D.862; and
27.5(iii) special education aid for fiscal year 2015 under section 125A.76; and
27.6divided by the number of adjusted marginal cost pupil units the district would have
27.7counted for fiscal year 2004 under Minnesota Statutes 2002 2015.
27.8    (b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of
27.9the product of the district's transition allowance times the district's adjusted marginal cost
27.10pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
27.11    (c) (b) A district's transition revenue for fiscal year 2010 2015 and later equals the
27.12sum of the product of the district's transition allowance times the district's adjusted marginal
27.13cost pupil units plus the district's transition for prekindergarten revenue under subdivision
27.1431a plus the district's transition for tuition reciprocity revenue under subdivision 31c.
27.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
27.16and later.

27.17    Sec. 35. Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:
27.18    Subd. 32. Transition levy. To obtain transition revenue for fiscal year 2005 2015
27.19 and later, a district may levy an amount not more than the product of its transition revenue
27.20for the fiscal year times the lesser of one or the ratio of its referendum market value per
27.21resident marginal cost pupil unit to $476,000 $510,000.
27.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
27.23and later.

27.24    Sec. 36. Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:
27.25    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years 2007,
27.262008, and 2009, the basic alternative teacher compensation aid for a school district
27.27with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of
27.28the alternative teacher compensation revenue under section 122A.415, subdivision 1.
27.29The basic alternative teacher compensation aid for an intermediate school district or
27.30charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
27.31the recipient is a charter school, equals $260 times the number of pupils enrolled in the
27.32school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
27.33year for a charter school in the first year of operation, times the ratio of the sum of the
28.1alternative teacher compensation aid and alternative teacher compensation levy for all
28.2participating school districts to the maximum alternative teacher compensation revenue
28.3for those districts under section 122A.415, subdivision 1.
28.4    (b) For fiscal years 2010 and later 2013 and 2014 only, the basic alternative
28.5teacher compensation aid for a school with a plan approved under section 122A.414,
28.6subdivision 2b
, equals 65 percent of the alternative teacher compensation revenue under
28.7section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
28.8an intermediate school district or charter school with a plan approved under section
28.9122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
28.10the number of pupils enrolled in the school on October 1 of the previous year, or on
28.11October 1 of the current year for a charter school in the first year of operation, times
28.12the ratio of the sum of the alternative teacher compensation aid and alternative teacher
28.13compensation levy for all participating school districts to the maximum alternative teacher
28.14compensation revenue for those districts under section 122A.415, subdivision 1.
28.15(c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 122A.415,
28.16subdivision 1
, the state total basic alternative teacher compensation aid entitlement must
28.17not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the
28.18amount of alternative teacher compensation aid approved under section 122A.415 so as
28.19not to exceed these limits.

28.20    Sec. 37. Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:
28.21    Subd. 35. Alternative teacher compensation levy. For fiscal year 2007 years 2013
28.22 and later 2014 only, the alternative teacher compensation levy for a district receiving basic
28.23alternative teacher compensation aid equals the product of (1) the difference between the
28.24district's alternative teacher compensation revenue and the district's basic alternative
28.25teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
28.26net tax capacity per adjusted pupil unit to $5,634.

28.27    Sec. 38. Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:
28.28    Subd. 36. Alternative teacher compensation aid. (a) For fiscal year 2007 years
28.292013 and later 2014 only, a district's alternative teacher compensation equalization aid
28.30equals the district's alternative teacher compensation revenue minus the district's basic
28.31alternative teacher compensation aid minus the district's alternative teacher compensation
28.32levy. If a district does not levy the entire amount permitted, the alternative teacher
28.33compensation equalization aid must be reduced in proportion to the actual amount levied.
29.1(b) A district's alternative teacher compensation aid equals the sum of the
29.2district's basic alternative teacher compensation aid and the district's alternative teacher
29.3compensation equalization aid.

29.4    Sec. 39. Minnesota Statutes 2012, section 126C.10, is amended by adding a
29.5subdivision to read:
29.6    Subd. 38. Pension adjustment revenue. A school district's pension adjustment
29.7revenue equals the greater of zero or the product of:
29.8(1) the difference between the district's adjustment under Minnesota Statutes 2012,
29.9section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state
29.10average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for
29.11fiscal year 2014 per adjusted pupil unit; and
29.12(2) the district's adjusted pupil units for the fiscal year.
29.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
29.14and later.

29.15    Sec. 40. Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:
29.16    Subdivision 1. Revenue. Of a district's general education revenue for fiscal year
29.172000 2015 and thereafter each school district shall reserve an amount equal to the formula
29.18 allowance multiplied by the following calculation:
29.19(1) the sum of adjusted marginal cost pupils in average daily membership, according
29.20to section 126C.05, subdivision 5, in kindergarten times .057 $299; plus
29.21(2) the sum of adjusted marginal cost pupils in average daily membership, according
29.22to section 126C.05, subdivision 5, in grades 1 to 3 6 times .115; plus $459.
29.23(3) the sum of adjusted marginal cost pupils in average daily membership, according
29.24to section 126C.05, subdivision 5, in grades 4 to 6 times .06.
29.25EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

29.26    Sec. 41. Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:
29.27    Subd. 5. Additional revenue use. If the board of a district determines that the
29.28district has achieved and is maintaining the class sizes specified in subdivision 4, the board
29.29may use the revenue to reduce class size in grades 4, 5, and 6, provide all-day, everyday
29.30kindergarten, prepare and use individualized learning plans, improve program offerings,
29.31purchase instructional material, services, or technology, or provide staff development
29.32needed for reduced class sizes.
30.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

30.2    Sec. 42. Minnesota Statutes 2012, section 126C.126, is amended to read:
30.3126C.126 USE OF GENERAL EDUCATION REVENUE FOR ALL-DAY
30.4KINDERGARTEN AND PREKINDERGARTEN.
30.5     A school district may spend general education revenue on extended time
30.6kindergarten and prekindergarten programs. At the school board's discretion, the district
30.7may use revenue generated by the all-day kindergarten pupil count under section 126C.05,
30.8subdivision 1, paragraph (d), to meet the needs of three- and four-year-olds in the district.
30.9A school district may not use these funds on programs for three- and four-year-old children
30.10while maintaining a fee-based all-day kindergarten program.
30.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
30.12and later.

30.13    Sec. 43. Minnesota Statutes 2012, section 126C.13, is amended by adding a
30.14subdivision to read:
30.15    Subd. 3a. Student achievement rate. The commissioner must establish the student
30.16achievement rate by July 1 of each year for levies payable in the following year. The
30.17student achievement rate must be a rate, rounded up to the nearest hundredth of a percent,
30.18that, when applied to the adjusted net tax capacity for all districts, raises the amount
30.19specified in this subdivision. The student achievement rate must be the rate that raises
30.20$20,000,000 for fiscal year 2015 and later years. The student achievement rate may not
30.21be changed due to changes or corrections made to a district's adjusted net tax capacity
30.22after the rate has been established.

30.23    Sec. 44. Minnesota Statutes 2012, section 126C.13, is amended by adding a
30.24subdivision to read:
30.25    Subd. 3b. Student achievement levy. To obtain general education revenue, a
30.26district may levy an amount not to exceed the student achievement rate times the adjusted
30.27net tax capacity of the district for the preceding year. If the amount of the student
30.28achievement levy would exceed the general education revenue, the student achievement
30.29levy must be determined according to subdivision 3c.

30.30    Sec. 45. Minnesota Statutes 2012, section 126C.13, is amended by adding a
30.31subdivision to read:
31.1    Subd. 3c. Student achievement levy; districts off the formula. (a) If the amount
31.2of the student achievement levy for a district exceeds the district's general education
31.3revenue, excluding operating capital revenue, equity revenue, and transition revenue, the
31.4amount of the student achievement levy must be limited to the district's general education
31.5revenue, excluding operating capital revenue, equity revenue, and transition revenue.
31.6    (b) A levy made according to this subdivision shall also be construed to be the levy
31.7made according to subdivision 3b.

31.8    Sec. 46. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
31.9    Subd. 4. General education aid. (a) For fiscal years 2007 2013 and later 2014 only,
31.10a district's general education aid is the sum of the following amounts:
31.11    (1) general education revenue, excluding equity revenue, total operating capital
31.12revenue, alternative teacher compensation revenue, and transition revenue;
31.13    (2) operating capital aid under section 126C.10, subdivision 13b;
31.14    (3) equity aid under section 126C.10, subdivision 30;
31.15    (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
31.16    (5) transition aid under section 126C.10, subdivision 33;
31.17    (6) shared time aid under section 126C.01, subdivision 7;
31.18    (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
31.19    (8) online learning aid according to section 124D.096.
31.20(b) For fiscal year 2015 and later, a district's general education aid equals:
31.21(1) general education revenue, excluding operating capital revenue, equity revenue,
31.22and transition revenue, minus the student achievement levy, multiplied times the ratio of
31.23the actual amount of student achievement levy levied to the permitted student achievement
31.24levy; plus
31.25(2) equity aid under section 126C.10, subdivision 30; plus
31.26(3) transition aid under section 126C.10, subdivision 33; plus
31.27(4) shared time aid under section 126C.10, subdivision 7; plus
31.28(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
31.29(6) online learning aid under section 124D.096.

31.30    Sec. 47. Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:
31.31    Subdivision 1. Use of revenue. The basic skills revenue under section 126C.10,
31.32subdivision 4
, must be reserved and used to meet the educational needs of pupils who
31.33enroll under-prepared to learn and whose progress toward meeting state or local content
31.34or performance standards is below the level that is appropriate for learners of their age.
32.1Basic skills revenue may also be used for programs designed to prepare children and their
32.2families for entry into school whether the student first enrolls in kindergarten or first grade.
32.3Any of the following may be provided to meet these learners' needs:
32.4(1) direct instructional services under the assurance of mastery program according
32.5to section 124D.66;
32.6(2) remedial instruction in reading, language arts, mathematics, other content areas,
32.7or study skills to improve the achievement level of these learners;
32.8(3) additional teachers and teacher aides to provide more individualized instruction
32.9to these learners through individual tutoring, lower instructor-to-learner ratios, or team
32.10teaching;
32.11(4) a longer school day or week during the regular school year or through a summer
32.12program that may be offered directly by the site or under a performance-based contract
32.13with a community-based organization;
32.14(5) comprehensive and ongoing staff development consistent with district and site
32.15plans according to section 122A.60, for teachers, teacher aides, principals, and other
32.16personnel to improve their ability to identify the needs of these learners and provide
32.17appropriate remediation, intervention, accommodations, or modifications;
32.18(6) instructional materials, digital learning, and technology appropriate for meeting
32.19the individual needs of these learners;
32.20(7) programs to reduce truancy, encourage completion of high school, enhance
32.21self-concept, provide health services, provide nutrition services, provide a safe and secure
32.22learning environment, provide coordination for pupils receiving services from other
32.23governmental agencies, provide psychological services to determine the level of social,
32.24emotional, cognitive, and intellectual development, and provide counseling services,
32.25guidance services, and social work services;
32.26(8) bilingual programs, bicultural programs, and programs for English learners;
32.27(9) all day kindergarten;
32.28(10) early education programs, parent-training programs, school readiness programs,
32.29kindergarten programs for four-year-olds, voluntary home visits under section 124D.13,
32.30subdivision 4, and other outreach efforts designed to prepare children for kindergarten;
32.31(11) extended school day and extended school year programs; and
32.32(11) (12) substantial parent involvement in developing and implementing remedial
32.33education or intervention plans for a learner, including learning contracts between the
32.34school, the learner, and the parent that establish achievement goals and responsibilities of
32.35the learner and the learner's parent or guardian.
33.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
33.2and later.

33.3    Sec. 48. Minnesota Statutes 2012, section 126C.15, subdivision 2, is amended to read:
33.4    Subd. 2. Building allocation. (a) A district or cooperative must allocate its
33.5compensatory revenue to each school building in the district or cooperative where
33.6the children who have generated the revenue are served unless the school district or
33.7cooperative has received permission under Laws 2005, First Special Session chapter 5,
33.8article 1, section 50, to allocate compensatory revenue according to student performance
33.9measures developed by the school board.
33.10    (b) Notwithstanding paragraph (a), a district or cooperative may allocate up to
33.11five percent of the amount of compensatory revenue that the district receives to school
33.12sites according to a plan adopted by the school board, and a district or cooperative may
33.13allocate up to an additional five percent of its compensatory revenue for activities under
33.14subdivision 1, clause (10), according to a plan adopted by the school board. The money
33.15reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but
33.16may be spent on students in any grade, including students attending school readiness or
33.17other prekindergarten programs.
33.18    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
33.19means education site as defined in section 123B.04, subdivision 1.
33.20    (d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
33.21generated by students served at a cooperative unit shall be paid to the cooperative unit.
33.22    (e) A district or cooperative with school building openings, school building
33.23closings, changes in attendance area boundaries, or other changes in programs or student
33.24demographics between the prior year and the current year may reallocate compensatory
33.25revenue among sites to reflect these changes. A district or cooperative must report to the
33.26department any adjustments it makes according to this paragraph and the department must
33.27use the adjusted compensatory revenue allocations in preparing the report required under
33.28section 123B.76, subdivision 3, paragraph (c).
33.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
33.30and later.

33.31    Sec. 49. Minnesota Statutes 2012, section 126C.17, is amended to read:
33.32126C.17 REFERENDUM REVENUE.
34.1    Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
34.2initial referendum revenue allowance equals the sum of the allowance under section
34.3126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
34.4unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
34.5plus the referendum conversion allowance approved under subdivision 13, minus $415.
34.6For districts with more than one referendum authority, the reduction must be computed
34.7separately for each authority. The reduction must be applied first to the referendum
34.8conversion allowance and next to the authority with the earliest expiration date. A
34.9district's initial referendum revenue allowance may not be less than zero.
34.10(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
34.11referendum allowance plus any additional allowance per resident marginal cost pupil unit
34.12authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
34.13fiscal year 2003 and later.
34.14(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals
34.15the sum of:
34.16(1) the product of (i) the ratio of the resident marginal cost pupil units the district
34.17would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
34.18to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
34.19referendum allowance plus any additional allowance per resident marginal cost pupil unit
34.20authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
34.21year 2003 and later, plus
34.22(2) any additional allowance per resident marginal cost pupil unit authorized under
34.23subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
34.24(a) A district's initial referendum allowance for fiscal year 2015 equals the result of
34.25the following calculations:
34.26(1) multiply the referendum allowance the district would have received for fiscal
34.27year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
34.28elections held before July 1, 2013, by the resident marginal cost pupil units the district
34.29would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
34.30(2) add to the result of clause (1) the adjustment the district would have received
34.31under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
34.32(c), based on elections held before July 1, 2013;
34.33(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
34.34year 2015; and
34.35(4) if the result of clause (3) is less than zero, set the allowance to zero.
35.1(b) A district's referendum allowance equals the sum of the district's initial
35.2referendum allowance for fiscal year 2015, plus any additional referendum allowance per
35.3adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal
35.4year 2016 or later. For a district with more than one referendum allowance for fiscal year
35.52015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under
35.6paragraph (a) must be divided into components such that the same percentage of the
35.7district's allowance expires at the same time as the old allowances would have expired
35.8under Minnesota Statutes 2012, section 126C.17.
35.9    Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal
35.10year 2007 2015 and later, a district's referendum allowance must not exceed the greater of:
35.11(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
35.12times the annual inflationary increase as calculated under paragraph (b) plus (ii) its
35.13referendum conversion allowance for fiscal year 2003, minus (iii) $215;
35.14(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
35.15annual inflationary increase as calculated under paragraph (b); or times the greatest of:
35.16(1) $1,845;
35.17(2) the sum of the referendum revenue the district would have received for fiscal
35.18year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
35.19elections held before July 1, 2013, and the adjustment the district would have received
35.20under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
35.21(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
35.22units for fiscal year 2015; or
35.23(3) the product of the referendum allowance limit the district would have received
35.24for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
35.25the resident marginal cost pupil units the district would have received for fiscal year 2015
35.26under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
35.27district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
35.287, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
35.29the district's adjusted pupil units for fiscal year 2015; or
35.30(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum
35.31revenue authority for each reorganizing district in the year preceding reorganization divided
35.32by its resident marginal cost adjusted pupil units for the year preceding reorganization.
35.33(b) For purposes of this subdivision, for fiscal year 2005 2016 and later, "inflationary
35.34increase" means one plus the percentage change in the Consumer Price Index for urban
35.35consumers, as prepared by the United States Bureau of Labor Standards, for the current
35.36fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016 and later, for purposes
36.1of paragraph (a), clause (1) (3), the inflationary increase equals the inflationary increase
36.2for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance
36.3for that year compared with the formula allowance for fiscal year 2008 2015.
36.4    Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under
36.5section 126C.10 is not subject to a referendum allowance limit.
36.6    Subd. 4. Total referendum revenue. The total referendum revenue for each district
36.7equals the district's referendum allowance times the resident marginal cost adjusted pupil
36.8units for the school year.
36.9    Subd. 5. Referendum equalization revenue. (a) For fiscal year 2003 and later,
36.10 A district's referendum equalization revenue equals the sum of the first tier referendum
36.11equalization revenue and the second tier referendum equalization revenue.
36.12(b) A district's first tier referendum equalization revenue equals the district's first
36.13tier referendum equalization allowance times the district's resident marginal cost adjusted
36.14 pupil units for that year.
36.15(c) For fiscal year 2006, a district's first tier referendum equalization allowance
36.16equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
36.17fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
36.18of the district's referendum allowance under subdivision 1 or $600.
36.19For fiscal year 2008 and later, A district's first tier referendum equalization allowance
36.20equals the lesser of the district's referendum allowance under subdivision 1 or $700 $760.
36.21(d) A district's second tier referendum equalization revenue equals the district's
36.22second tier referendum equalization allowance times the district's resident marginal cost
36.23 adjusted pupil units for that year.
36.24(e) For fiscal year 2006, a district's second tier referendum equalization allowance
36.25equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
36.26of the formula allowance, minus the district's first tier referendum equalization allowance.
36.27For fiscal year 2007 and later, A district's second tier referendum equalization allowance
36.28equals the lesser of the district's referendum allowance under subdivision 1 or 26 25 percent
36.29of the formula allowance, minus the district's first tier referendum equalization allowance.
36.30(f) Notwithstanding paragraph (e), the second tier referendum allowance for a
36.31district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
36.32elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
36.33referendum allowance under subdivision 1 minus the district's first tier referendum
36.34equalization allowance.
37.1    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
37.2a district's referendum equalization levy equals the sum of the first tier referendum
37.3equalization levy and the second tier referendum equalization levy.
37.4(b) A district's first tier referendum equalization levy equals the district's first tier
37.5referendum equalization revenue times the lesser of one or the ratio of the district's
37.6referendum market value per resident marginal cost pupil unit to $476,000 $510,000.
37.7(c) A district's second tier referendum equalization levy equals the district's second
37.8tier referendum equalization revenue times the lesser of one or the ratio of the district's
37.9referendum market value per resident marginal cost pupil unit to $270,000 $290,000.
37.10    Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid
37.11equals the difference between its referendum equalization revenue and levy.
37.12(b) If a district's actual levy for first or second tier referendum equalization revenue
37.13is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
37.14(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
37.15where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
37.16referendum revenue, must not exceed 26 25 percent of the formula allowance times the
37.17district's resident marginal cost adjusted pupil units. A district's referendum levy is
37.18increased by the amount of any reduction in referendum aid under this paragraph.
37.19    Subd. 7a. Referendum tax base replacement aid. For each school district that
37.20had a referendum allowance for fiscal year 2002 exceeding $415, for each separately
37.21authorized referendum levy, the commissioner of revenue, in consultation with the
37.22commissioner of education, shall certify the amount of the referendum levy in taxes
37.23payable year 2001 attributable to the portion of the referendum allowance exceeding $415
37.24levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section
37.25273.13 , excluding the portion of the tax paid by the portion of class 2a property consisting
37.26of the house, garage, and surrounding one acre of land. The resulting amount must be
37.27used to reduce the district's referendum levy amount otherwise determined, and must be
37.28paid to the district each year that the referendum authority remains in effect, is renewed,
37.29or new referendum authority is approved. The aid payable under this subdivision must
37.30be subtracted from the district's referendum equalization aid under subdivision 7. The
37.31referendum equalization aid after the subtraction must not be less than zero.
37.32    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, a
37.33district's referendum equalization aid for fiscal year 2015 must not be less than the sum
37.34of the referendum equalization aid the district would have received for fiscal year 2015
37.35under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
38.1district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
38.27, paragraphs (a), (b), and (c).
38.3(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016
38.4and later, for a district qualifying for additional aid under paragraph (a) for fiscal year
38.52015, must not be less than the product of (1) the district's referendum equalization aid
38.6for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum
38.7revenue for that school year to the district's referendum revenue for fiscal year 2015, times
38.8(3) the lesser of one or the ratio of the district's referendum market value used for fiscal
38.9year 2015 referendum equalization calculations to the district's referendum market value
38.10used for that year's referendum equalization calculations.
38.11    Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount
38.12equal to the difference between its total referendum revenue according to subdivision 4
38.13and its referendum equalization revenue according to subdivision 5.
38.14    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
38.15subdivision 1
, may be increased in the amount approved by the voters of the district
38.16at a referendum called for the purpose. The referendum may be called by the board.
38.17The referendum must be conducted one or two calendar years before the increased levy
38.18authority, if approved, first becomes payable. Only one election to approve an increase
38.19may be held in a calendar year. Unless the referendum is conducted by mail under
38.20subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
38.21first Monday in November. The ballot must state the maximum amount of the increased
38.22revenue per resident marginal cost adjusted pupil unit. The ballot may state a schedule,
38.23determined by the board, of increased revenue per resident marginal cost adjusted pupil
38.24unit that differs from year to year over the number of years for which the increased revenue
38.25is authorized or may state that the amount shall increase annually by the rate of inflation.
38.26For this purpose, the rate of inflation shall be the annual inflationary increase calculated
38.27under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
38.28authority is expiring. In this case, the ballot may also compare the proposed levy authority
38.29to the existing expiring levy authority, and express the proposed increase as the amount, if
38.30any, over the expiring referendum levy authority. The ballot must designate the specific
38.31number of years, not to exceed ten, for which the referendum authorization applies. The
38.32ballot, including a ballot on the question to revoke or reduce the increased revenue amount
38.33under paragraph (c), must abbreviate the term "per resident marginal cost adjusted pupil
38.34unit" as "per pupil." The notice required under section 275.60 may be modified to read, in
38.35cases of renewing existing levies at the same amount per pupil as in the previous year:
39.1"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
39.2TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
39.3SCHEDULED TO EXPIRE."
39.4    The ballot may contain a textual portion with the information required in this
39.5subdivision and a question stating substantially the following:
39.6    "Shall the increase in the revenue proposed by (petition to) the board of .........,
39.7School District No. .., be approved?"
39.8    If approved, an amount equal to the approved revenue per resident marginal cost
39.9 adjusted pupil unit times the resident marginal cost adjusted pupil units for the school
39.10year beginning in the year after the levy is certified shall be authorized for certification
39.11for the number of years approved, if applicable, or until revoked or reduced by the voters
39.12of the district at a subsequent referendum.
39.13    (b) The board must prepare and deliver by first class mail at least 15 days but no more
39.14than 30 days before the day of the referendum to each taxpayer a notice of the referendum
39.15and the proposed revenue increase. The board need not mail more than one notice to any
39.16taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
39.17those shown to be owners on the records of the county auditor or, in any county where
39.18tax statements are mailed by the county treasurer, on the records of the county treasurer.
39.19Every property owner whose name does not appear on the records of the county auditor
39.20or the county treasurer is deemed to have waived this mailed notice unless the owner
39.21has requested in writing that the county auditor or county treasurer, as the case may be,
39.22include the name on the records for this purpose. The notice must project the anticipated
39.23amount of tax increase in annual dollars for typical residential homesteads, agricultural
39.24homesteads, apartments, and commercial-industrial property within the school district.
39.25    The notice for a referendum may state that an existing referendum levy is expiring
39.26and project the anticipated amount of increase over the existing referendum levy in
39.27the first year, if any, in annual dollars for typical residential homesteads, agricultural
39.28homesteads, apartments, and commercial-industrial property within the district.
39.29    The notice must include the following statement: "Passage of this referendum will
39.30result in an increase in your property taxes." However, in cases of renewing existing levies,
39.31the notice may include the following statement: "Passage of this referendum extends an
39.32existing operating referendum at the same amount per pupil as in the previous year."
39.33    (c) A referendum on the question of revoking or reducing the increased revenue
39.34amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
39.35revoke or reduce the revenue amount must state the amount per resident marginal cost
39.36pupil unit by which the authority is to be reduced. Revenue authority approved by the
40.1voters of the district pursuant to paragraph (a) must be available to the school district at
40.2least once before it is subject to a referendum on its revocation or reduction for subsequent
40.3years. Only one revocation or reduction referendum may be held to revoke or reduce
40.4referendum revenue for any specific year and for years thereafter.
40.5    (d) The approval of 50 percent plus one of those voting on the question is required to
40.6pass a referendum authorized by this subdivision.
40.7    (e) At least 15 days before the day of the referendum, the district must submit a
40.8copy of the notice required under paragraph (b) to the commissioner and to the county
40.9auditor of each county in which the district is located. Within 15 days after the results
40.10of the referendum have been certified by the board, or in the case of a recount, the
40.11certification of the results of the recount by the canvassing board, the district must notify
40.12the commissioner of the results of the referendum.
40.13    Subd. 10. School referendum levy; market value. A school referendum levy must
40.14be levied against the referendum market value of all taxable property as defined in section
40.15126C.01, subdivision 3 . Any referendum levy amount subject to the requirements of this
40.16subdivision must be certified separately to the county auditor under section 275.07.
40.17    Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b),
40.18any referendum under this section held on a day other than the first Tuesday after the first
40.19Monday in November must be conducted by mail in accordance with section 204B.46.
40.20Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
40.21conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
40.22must be prepared and delivered by first-class mail at least 20 days before the referendum.
40.23(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
40.24may grant authority to a district to hold a referendum on a different day if the district is in
40.25statutory operating debt and has an approved plan or has received an extension from the
40.26department to file a plan to eliminate the statutory operating debt.
40.27(c) The commissioner must approve, deny, or modify each district's request for a
40.28referendum levy on a different day within 60 days of receiving the request from a district.
40.29    Subd. 13. Referendum conversion allowance. A school district that received
40.30supplemental or transition revenue in fiscal year 2002 may convert its supplemental
40.31revenue conversion allowance and transition revenue conversion allowance to additional
40.32referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
40.33of the school board must approve the conversion at a public meeting before November 1,
40.342001. For a district with other referendum authority, the referendum conversion allowance
40.35approved by the board continues until the portion of the district's other referendum
40.36authority with the earliest expiration date after June 30, 2006, expires. For a district
41.1with no other referendum authority, the referendum conversion allowance approved by
41.2the board continues until June 30, 2012.
41.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
41.4and later.

41.5    Sec. 50. Minnesota Statutes 2012, section 126C.20, is amended to read:
41.6126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
41.7There is annually appropriated from the general fund to the department the
41.8amount necessary for general education aid under section 126C.13, the early graduation
41.9achievement scholarship program under section 120B.08, and the early graduation
41.10military service award program under section 120B.09. This amount must be reduced by
41.11the amount of any money specifically appropriated for the same purpose in any year
41.12from any state fund.
41.13EFFECTIVE DATE.This section is effective for revenue in fiscal year 2014 and
41.14later.

41.15    Sec. 51. Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:
41.16    Subdivision 1. To lease building or land. (a) When an independent or a special
41.17school district or a group of independent or special school districts finds it economically
41.18advantageous to rent or lease a building or land for any instructional purposes or for
41.19school storage or furniture repair, and it determines that the operating capital revenue
41.20authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
41.21apply to the commissioner for permission to make an additional capital expenditure levy
41.22for this purpose. An application for permission to levy under this subdivision must contain
41.23financial justification for the proposed levy, the terms and conditions of the proposed
41.24lease, and a description of the space to be leased and its proposed use.
41.25    (b) The criteria for approval of applications to levy under this subdivision must
41.26include: the reasonableness of the price, the appropriateness of the space to the proposed
41.27activity, the feasibility of transporting pupils to the leased building or land, conformity
41.28of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
41.29the proposed lease to the space needs and the financial condition of the district. The
41.30commissioner must not authorize a levy under this subdivision in an amount greater than
41.31the cost to the district of renting or leasing a building or land for approved purposes.
41.32The proceeds of this levy must not be used for custodial or other maintenance services.
42.1A district may not levy under this subdivision for the purpose of leasing or renting a
42.2district-owned building or site to itself.
42.3    (c) For agreements finalized after July 1, 1997, a district may not levy under this
42.4subdivision for the purpose of leasing: (1) a newly constructed building used primarily
42.5for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
42.6building addition or additions used primarily for regular kindergarten, elementary, or
42.7secondary instruction that contains more than 20 percent of the square footage of the
42.8previously existing building.
42.9    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
42.10purpose of leasing or renting a district-owned building or site to itself only if the amount
42.11is needed by the district to make payments required by a lease purchase agreement,
42.12installment purchase agreement, or other deferred payments agreement authorized by law,
42.13and the levy meets the requirements of paragraph (c). A levy authorized for a district by
42.14the commissioner under this paragraph may be in the amount needed by the district to
42.15make payments required by a lease purchase agreement, installment purchase agreement,
42.16or other deferred payments agreement authorized by law, provided that any agreement
42.17include a provision giving the school districts the right to terminate the agreement
42.18annually without penalty.
42.19    (e) The total levy under this subdivision for a district for any year must not exceed
42.20$150 $162 times the resident adjusted pupil units for the fiscal year to which the levy
42.21is attributable.
42.22    (f) For agreements for which a review and comment have been submitted to the
42.23Department of Education after April 1, 1998, the term "instructional purpose" as used in
42.24this subdivision excludes expenditures on stadiums.
42.25    (g) The commissioner of education may authorize a school district to exceed the
42.26limit in paragraph (e) if the school district petitions the commissioner for approval. The
42.27commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
42.28for not more than five years if the district meets the following criteria:
42.29    (1) the school district has been experiencing pupil enrollment growth in the
42.30preceding five years;
42.31    (2) the purpose of the increased levy is in the long-term public interest;
42.32    (3) the purpose of the increased levy promotes colocation of government services; and
42.33    (4) the purpose of the increased levy is in the long-term interest of the district by
42.34avoiding over construction of school facilities.
42.35    (h) A school district that is a member of an intermediate school district may include
42.36in its authority under this section the costs associated with leases of administrative and
43.1classroom space for intermediate school district programs. This authority must not
43.2exceed $43 $46 times the adjusted marginal cost pupil units of the member districts. This
43.3authority is in addition to any other authority authorized under this section.
43.4    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
43.52012 to 2023, a district that is a member of the "Technology and Information Education
43.6Systems" data processing joint board, that finds it economically advantageous to enter into
43.7a lease agreement to finance improvements to a building and land for a group of school
43.8districts or special school districts for staff development purposes, may levy for its portion
43.9of lease costs attributed to the district within the total levy limit in paragraph (e). The total
43.10levy authority under this paragraph shall not exceed $632,000.
43.11(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
43.12purpose of leasing administrative space if the district can demonstrate to the satisfaction of
43.13the commissioner that the lease cost for the administrative space is no greater than the
43.14lease cost for instructional space that the district would otherwise lease. The commissioner
43.15must deny this levy authority unless the district passes a resolution stating its intent to
43.16lease instructional space under this section if the commissioner does not grant authority
43.17under this paragraph. The resolution must also certify that the lease cost for administrative
43.18space under this paragraph is no greater than the lease cost for the district's proposed
43.19instructional lease.
43.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
43.21and later.

43.22    Sec. 52. Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:
43.23    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
43.24by, the commissioner in accordance with the procedures and limits in subdivision 1,
43.25paragraphs (a) and (b), a district, as defined in this subdivision, may:
43.26(1) purchase real or personal property under an installment contract or may lease
43.27real or personal property with an option to purchase under a lease purchase agreement, by
43.28which installment contract or lease purchase agreement title is kept by the seller or vendor
43.29or assigned to a third party as security for the purchase price, including interest, if any; and
43.30(2) annually levy the amounts necessary to pay the district's obligations under the
43.31installment contract or lease purchase agreement.
43.32(b) The obligation created by the installment contract or the lease purchase
43.33agreement must not be included in the calculation of net debt for purposes of section
43.34475.53 , and does not constitute debt under other law. An election is not required in
43.35connection with the execution of the installment contract or the lease purchase agreement.
44.1(c) The proceeds of the levy authorized by this subdivision must not be used to
44.2acquire a facility to be primarily used for athletic or school administration purposes.
44.3(d) For the purposes of this subdivision, "district" means:
44.4(1) a school district which is eligible for revenue under section 124D.86, subdivision
44.53
, clause (1), (2), or (3), and whose Special School District No. 1, Minneapolis,
44.6Independent School District No. 625, St. Paul, Independent School District No. 709,
44.7Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
44.8 plan has been determined by the commissioner to be in compliance with Department of
44.9Education rules relating to equality of educational opportunity and school desegregation
44.10and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4)
44.11or (5), where the acquisition of property under this subdivision is determined by the
44.12commissioner to contribute to the implementation of the desegregation plan; or
44.13(2) a school district that participates in a joint program for interdistrict desegregation
44.14with a district defined in clause (1) other districts eligible for revenue under section
44.15124D.862 if the facility acquired under this subdivision is to be primarily used for the a
44.16 joint program for interdistrict desegregation and the commissioner determines that the
44.17joint programs are being undertaken to implement the districts' desegregation plan.
44.18(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
44.19or rent a district-owned building to itself does not apply to levies otherwise authorized
44.20by this subdivision.
44.21(f) For the purposes of this subdivision, any references in subdivision 1 to building
44.22or land shall include personal property.

44.23    Sec. 53. Minnesota Statutes 2012, section 126C.44, is amended to read:
44.24126C.44 SAFE SCHOOLS LEVY.
44.25    (a) Each district may make a levy on all taxable property located within the district
44.26for the purposes specified in this section. The maximum amount which may be levied for
44.27all costs under this section shall be equal to $30 $36 multiplied by the district's adjusted
44.28marginal cost pupil units for the school year. The proceeds of the levy must be reserved
44.29and used for directly funding the following purposes or for reimbursing the cities and
44.30counties who contract with the district for the following purposes:
44.31    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
44.32peace officers and sheriffs for liaison in services in the district's schools;
44.33    (2) to pay the costs for a drug abuse prevention program as defined in section
44.34609.101, subdivision 3 , paragraph (e), in the elementary schools;
45.1    (3) to pay the costs for a gang resistance education training curriculum in the
45.2district's schools;
45.3    (4) to pay the costs for security in the district's schools and on school property;
45.4    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
45.5voluntary opt-in suicide prevention tools, and violence prevention measures taken by
45.6the school district; or
45.7    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
45.8school social workers, licensed school psychologists, and licensed alcohol and chemical
45.9dependency counselors to help provide early responses to problems;
45.10    (7) to pay for facility security enhancements including laminated glass, public
45.11announcement systems, emergency communications devices, and equipment and facility
45.12modifications related to violence prevention and facility security;
45.13    (8) to pay for costs associated with improving the school climate; or
45.14    (9) to pay costs for colocating and collaborating with mental health professionals
45.15who are not district employees or contractors.
45.16    (b) For expenditures under paragraph (a), clause (1), the district must initially
45.17attempt to contract for services to be provided by peace officers or sheriffs with the
45.18police department of each city or the sheriff's department of the county within the district
45.19containing the school receiving the services. If a local police department or a county
45.20sheriff's department does not wish to provide the necessary services, the district may
45.21contract for these services with any other police or sheriff's department located entirely or
45.22partially within the school district's boundaries.
45.23    (b) (c) A school district that is a member of an intermediate school district may
45.24include in its authority under this section the costs associated with safe schools activities
45.25authorized under paragraph (a) for intermediate school district programs. This authority
45.26must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
45.27This authority is in addition to any other authority authorized under this section. Revenue
45.28raised under this paragraph must be transferred to the intermediate school district.
45.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
45.30and later.

45.31    Sec. 54. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
45.32    Subd. 7. Alternative attendance programs. (a) The general education aid and
45.33special education aid for districts must be adjusted for each pupil attending a nonresident
45.34district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
45.35adjustments must be made according to this subdivision.
46.1    (a) General education aid paid to a resident district must be reduced by an amount
46.2equal to the referendum equalization aid attributable to the pupil in the resident district.
46.3    (b) General education aid paid to a district serving a pupil in programs listed in this
46.4subdivision must be increased by an amount equal to the greater of (1) the referendum
46.5equalization aid attributable to the pupil in the nonresident district; or (2) the product of
46.6the district's open enrollment concentration index, the maximum amount of referendum
46.7revenue in the first tier, and the district's net open enrollment pupil units for that year. A
46.8district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
46.9lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
46.10served to its resident pupil units for that year and 0.2. This clause does not apply to a
46.11school district where more than 50 percent of the open enrollment students are enrolled
46.12solely in online learning courses.
46.13    (c) If the amount of the reduction to be made from the general education aid of the
46.14resident district is greater than the amount of general education aid otherwise due the
46.15district, the excess reduction must be made from other state aids due the district.
46.16    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
46.17area learning center, operated according to paragraph (f), providing special instruction and
46.18services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
46.19section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
46.20be equal to (1) the actual cost of providing special instruction and services to the pupil,
46.21including a proportionate amount for special transportation and unreimbursed building
46.22lease and debt service costs for facilities used primarily for special education, minus (2)
46.23if the pupil receives special instruction and services outside the regular classroom for
46.24more than 60 percent of the school day, the amount of general education revenue and
46.25referendum aid attributable to that pupil for the portion of time the pupil receives special
46.26instruction and services outside of the regular classroom, excluding portions attributable to
46.27district and school administration, district support services, operations and maintenance,
46.28capital expenditures, and pupil transportation, minus (3) special education aid attributable
46.29to that pupil, that is received by the district providing special instruction and services.
46.30For purposes of this paragraph, general education revenue and referendum equalization
46.31aid attributable to a pupil must be calculated using the serving district's average general
46.32education revenue and referendum equalization aid per adjusted pupil unit.
46.33    (e) For fiscal year 2007 and later, special education aid paid to a resident district must
46.34be reduced by an amount equal to (b) For purposes of this subdivision, the "unreimbursed
46.35cost of providing special education and services" means the difference between: (1) the
46.36actual cost of providing special instruction and services, including special transportation
47.1and unreimbursed building lease and debt service costs for facilities used primarily for
47.2special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as
47.3defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus
47.4(2) if the pupil receives special instruction and services outside the regular classroom for
47.5more than 60 percent of the school day, the amount of general education revenue and
47.6referendum equalization aid attributable to that pupil for the portion of time the pupil
47.7receives special instruction and services outside of the regular classroom, excluding
47.8portions attributable to district and school administration, district support services,
47.9operations and maintenance, capital expenditures, and pupil transportation, minus (3)
47.10special education aid under section 125A.76 attributable to that pupil, that is received by
47.11the district providing special instruction and services. For purposes of this paragraph,
47.12general education revenue and referendum equalization aid attributable to a pupil must be
47.13calculated using the serving district's average general education revenue and referendum
47.14equalization aid per adjusted pupil unit.
47.15(c) For fiscal year 2015 and later, special education aid paid to a resident district
47.16must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
47.17special education and services.
47.18(d) Notwithstanding paragraph (c), special education aid paid to a resident district
47.19must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
47.20education and services provided to students at an intermediate district, cooperative, or
47.21charter school where the percent of students eligible for special education services is at
47.22least 70 percent of the charter school's total enrollment.
47.23    (e) Special education aid paid to the district or cooperative providing special
47.24instruction and services for the pupil, or to the fiscal agent district for a cooperative,
47.25must be increased by the amount of the reduction in the aid paid to the resident district
47.26 under paragraphs (c) and (d). If the resident district's special education aid is insufficient
47.27to make the full adjustment, the remaining adjustment shall be made to other state aids
47.28due to the district.
47.29    (f) An area learning center operated by a service cooperative, intermediate district,
47.30education district, or a joint powers cooperative may elect through the action of the
47.31constituent boards to charge the resident district tuition for pupils rather than to have the
47.32general education revenue paid to a fiscal agent school district. Except as provided in
47.33paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
47.34of the district average general education revenue per pupil unit minus an amount equal
47.35to the product of the formula allowance according to section 126C.10, subdivision 2,
48.1times .0485 .0466, calculated without compensatory revenue and transportation sparsity
48.2revenue, times the number of pupil units for pupils attending the area learning center.
48.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
48.4and later.

48.5    Sec. 55. Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:
48.6    Subd. 8. Charter schools. (a) The general education aid for districts must be
48.7adjusted for each pupil attending a charter school under section 124D.10. The adjustments
48.8must be made according to this subdivision.
48.9(b) General education aid paid to a district in which a charter school not providing
48.10transportation according to section 124D.10, subdivision 16, is located must be increased
48.11by an amount equal to the sum of:
48.12(1) the product of: (i) the sum of an amount equal to the product of the formula
48.13allowance according to section 126C.10, subdivision 2, times .0485 .0466, plus the
48.14transportation sparsity allowance for the district; times (ii) the adjusted marginal cost
48.15 pupil units attributable to the pupil; plus
48.16(2) the product of $223 and the extended time marginal cost pupil units attributable
48.17to the pupil.
48.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
48.19and later.

48.20    Sec. 56. Minnesota Statutes 2012, section 127A.51, is amended to read:
48.21127A.51 STATEWIDE AVERAGE REVENUE.
48.22By October 1 of each year the commissioner must estimate the statewide average
48.23adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted
48.24general revenue among pupils and districts by computing the ratio of the 95th percentile
48.25to the fifth percentile of adjusted general revenue. The commissioner must provide that
48.26information to all districts.
48.27If the disparity in adjusted general revenue as measured by the ratio of the 95th
48.28percentile to the fifth percentile increases in any year, the commissioner shall recommend
48.29to the legislature options for change in the general education formula that will limit the
48.30disparity in adjusted general revenue to no more than the disparity for the previous
48.31school year. The commissioner must submit the recommended options to the education
48.32committees of the legislature by January 15.
48.33For purposes of this section and section 126C.10, adjusted general revenue means:
49.1(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
49.22
; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
49.3under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
49.4equity revenue under section 126C.10, subdivisions 24a and 24b; and
49.5(2) for fiscal year 2003 and later, the sum of basic revenue under section 126C.10,
49.6subdivision 2
; referendum revenue under section 126C.17; and equity revenue under
49.7section 126C.10, subdivisions 24a and 24b.
49.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
49.9and later.

49.10    Sec. 57. SCHOOL DISTRICT LEVY ADJUSTMENTS.
49.11    Subdivision 1. Tax rate adjustment. The commissioner of education must adjust
49.12each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
49.13by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
49.142012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or
49.15a similarly styled bill passed in a special session, to the statewide total tax capacity for
49.16assessment year 2012.
49.17    Subd. 2. Equalizing factors. The commissioner of education must adjust each
49.18school district equalizing factor established under Minnesota Statutes, chapters 120B to
49.19127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
49.20assessment year 2012 as it existed prior to the passage of Regular Session 2013 House
49.21File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax
49.22capacity for assessment year 2012.

49.23    Sec. 58. APPROPRIATIONS.
49.24    Subdivision 1. Department of Education. The sums indicated in this section are
49.25appropriated from the general fund to the Department of Education for the fiscal years
49.26designated.
49.27    Subd. 2. General education aid. For general education aid under Minnesota
49.28Statutes, section 126C.13, subdivision 4:
49.29
$
6,051,766,000
.....
2014
49.30
$
6,370,640,000
.....
2015
49.31The 2014 appropriation includes $781,842,000 for 2013 and $5,269,924,000 for
49.322014.
50.1The 2015 appropriation includes $823,040,000 for 2014 and $5,547,600,000 for
50.22015.
50.3    Subd. 3. Enrollment options transportation. For transportation of pupils attending
50.4postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
50.5of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
50.6
$
44,000
.....
2014
50.7
$
48,000
.....
2015
50.8    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
50.9127A.49:
50.10
$
2,747,000
.....
2014
50.11
$
3,136,000
.....
2015
50.12The 2014 appropriation includes $301,000 for 2013 and $2,446,000 for 2014.
50.13The 2015 appropriation includes $385,000 for 2014 and $2,751,000 for 2015.
50.14    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
50.15Statutes, section 123A.485:
50.16
$
472,000
.....
2014
50.17
$
480,000
.....
2015
50.18The 2014 appropriation includes $40,000 for 2013 and $432,000 for 2014.
50.19The 2015 appropriation includes $68,000 for 2014 and $412,000 for 2015.
50.20    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
50.21Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
50.22
$
15,582,000
.....
2014
50.23
$
16,169,000
.....
2015
50.24The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 for 2014.
50.25The 2015 appropriation includes $2,122,000 for 2014 and $14,047,000 for 2015.
50.26    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
50.27under Minnesota Statutes, section 123B.92, subdivision 9:
50.28
$
18,565,000
.....
2014
50.29
$
18,946,000
.....
2015
50.30The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 for 2014.
50.31The 2015 appropriation includes $2,502,000 for 2014 and $16,444,000 for 2015.
51.1    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
51.2690, Warroad, to operate the Angle Inlet School:
51.3
$
65,000
.....
2014
51.4
$
65,000
.....
2015
51.5    Subd. 9. Compensatory revenue pilot project. For grants for participation in the
51.6compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
51.7article 1, section 50, as amended by Laws 2007, chapter 146, article 1, section 21:
51.8
$
7,325,000
2014
51.9
$
7,325,000
2015
51.10Of this amount, $4,730,000 in each year is for a grant to Independent School District
51.11No. 11, Anoka-Hennepin; $240,000 in each year is for a grant to Independent School
51.12District No. 286, Brooklyn Center; $660,000 in each year is for a grant to Independent
51.13School District No. 279, Osseo; $500,000 in each year is for a grant to Independent School
51.14District No. 281, Robbinsdale; $520,000 in each year is for a grant to Independent School
51.15District No. 535, Rochester; $205,000 in each year is for a grant to Independent School
51.16District No. 833, South Washington; and $470,000 in each year is for a grant to Independent
51.17School District No. 241, Albert Lea. If a grant to a specific school district is not awarded,
51.18the commissioner may increase the aid amounts to any of the remaining participating
51.19school districts. The base budget for this program for fiscal year 2016 and later is
51.20$2,325,000, and the grants must be distributed in the same proportion as in fiscal year 2013.
51.21    Subd. 10. Compensatory pilot project formula aid. For grants for compensatory
51.22pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:
51.23
$
2,109,000
.....
2014
51.24The 2014 appropriation includes $2,109,000 for 2013 and $0 for 2014.
51.25    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
51.26Statutes, section 124D.4531, subdivision 1b:
51.27
$
4,320,000
.....
2014
51.28
$
5,680,000
.....
2015
51.29The 2014 appropriation includes $0 for 2014 and $4,320,000 for 2015.
51.30The 2015 appropriation includes $680,000 for 2014 and $5,000,000 for 2015.

51.31    Sec. 59. REPEALER.
51.32(a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, are repealed for fiscal
51.33year 2014 and later.
52.1(b) Minnesota Statutes 2012, sections 126C.10, subdivisions 31a, 31b, 31c, 34, 35,
52.2and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and 5, are repealed for
52.3fiscal year 2015 and later.

52.4
ARTICLE 2
52.5STUDENT ACCOUNTABILITY

52.6    Section 1. [120B.018] DEFINITIONS.
52.7    Subdivision 1. Scope. The definitions in this section apply to this chapter.
52.8    Subd. 2. Academic standard. "Academic standard" means a summary description
52.9of student learning in a required content area under section 120B.021 or elective content
52.10area under section 120B.022.
52.11    Subd. 3. Benchmark. "Benchmark" means specific knowledge or skill that a
52.12student must master to complete part of an academic standard by the end of the grade
52.13level or grade band.
52.14    Subd. 4. Credit. "Credit" means the determination by the local school district
52.15that a student has successfully completed an academic year of study or mastered the
52.16applicable subject matter.
52.17    Subd. 5. Elective standard. "Elective standard" means a locally adopted
52.18expectation for student learning in career and technical education and world languages.
52.19    Subd. 6. Required standard. "Required standard" means (1) a statewide adopted
52.20expectation for student learning in the content areas of language arts, mathematics,
52.21science, social studies, physical education, and the arts, or (2) a locally adopted
52.22expectation for student learning in health or the arts.

52.23    Sec. 2. Minnesota Statutes 2012, section 120B.02, is amended to read:
52.24120B.02 EDUCATIONAL EXPECTATIONS AND GRADUATION
52.25REQUIREMENTS FOR MINNESOTA'S STUDENTS.
52.26    Subdivision 1. Educational expectations. (a) The legislature is committed to
52.27establishing rigorous academic standards for Minnesota's public school students. To
52.28that end, the commissioner shall adopt in rule statewide academic standards. The
52.29commissioner shall not prescribe in rule or otherwise the delivery system, classroom
52.30assessments, or form of instruction that school sites must use. For purposes of this chapter,
52.31a school site is a separate facility, or a separate program within a facility that a local school
52.32board recognizes as a school site for funding purposes.
52.33(b) All commissioner actions regarding the rule must be premised on the following:
53.1(1) the rule is intended to raise academic expectations for students, teachers, and
53.2schools;
53.3(2) any state action regarding the rule must evidence consideration of school district
53.4autonomy; and
53.5(3) the Department of Education, with the assistance of school districts, must make
53.6available information about all state initiatives related to the rule to students and parents,
53.7teachers, and the general public in a timely format that is appropriate, comprehensive, and
53.8readily understandable.
53.9(c) When fully implemented, the requirements for high school graduation in
53.10Minnesota must require students to satisfactorily complete, as determined by the school
53.11district, the course credit requirements under section 120B.024, all state academic
53.12standards or local academic standards where state standards do not apply, and successfully
53.13pass graduation examinations as required under section 120B.30.
53.14(d) (c) The commissioner shall periodically review and report on the state's
53.15assessment process.
53.16(e) (d) School districts are not required to adopt specific provisions of the federal
53.17School-to-Work programs.
53.18    Subd. 2. Graduation requirements. To graduate from high school, students must
53.19demonstrate to their enrolling school district or school their satisfactory completion of the
53.20credit requirements under section 120B.024 and their understanding of academic standards
53.21on a nationally normed college entrance exam. A school district must adopt graduation
53.22requirements that meet or exceed state graduation requirements established in law or rule.
53.23EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
53.24students entering grade 9 in the 2013-2014 school year and later.

53.25    Sec. 3. Minnesota Statutes 2012, section 120B.021, subdivision 1, is amended to read:
53.26    Subdivision 1. Required academic standards. (a) The following subject areas
53.27are required for statewide accountability:
53.28    (1) language arts;
53.29    (2) mathematics;
53.30    (3) science;
53.31    (4) social studies, including history, geography, economics, and government and
53.32citizenship;
53.33    (5) physical education;
53.34    (6) health, for which locally developed academic standards apply; and
54.1    (7) the arts, for which statewide or locally developed academic standards apply, as
54.2determined by the school district. Public elementary and middle schools must offer at least
54.3three and require at least two of the following four arts areas: dance; music; theater; and
54.4visual arts. Public high schools must offer at least three and require at least one of the
54.5following five arts areas: media arts; dance; music; theater; and visual arts.
54.6    The commissioner must submit proposed standards in science and social studies to
54.7the legislature by February 1, 2004.
54.8    (b) For purposes of applicable federal law, the academic standards for language arts,
54.9mathematics, and science apply to all public school students, except the very few students
54.10with extreme cognitive or physical impairments for whom an individualized education
54.11program team has determined that the required academic standards are inappropriate. An
54.12individualized education program team that makes this determination must establish
54.13alternative standards.
54.14    A school district, no later than the 2007-2008 school year, must adopt graduation
54.15requirements that meet or exceed state graduation requirements established in law or rule.
54.16A school district that incorporates these state graduation requirements before the 2007-2008
54.17school year must provide students who enter the 9th grade in or before the 2003-2004
54.18school year the opportunity to earn a diploma based on existing locally established
54.19graduation requirements in effect when the students entered the 9th grade. (c) District
54.20efforts to develop, implement, or improve instruction or curriculum as a result of the
54.21provisions of this section must be consistent with sections 120B.10, 120B.11, and 120B.20.
54.22    The commissioner must include the contributions of Minnesota American Indian
54.23tribes and communities as they relate to the academic standards during the review and
54.24revision of the required academic standards.

54.25    Sec. 4. Minnesota Statutes 2012, section 120B.023, is amended to read:
54.26120B.023 BENCHMARKS.
54.27    Subdivision 1. Benchmarks implement, supplement statewide academic
54.28standards. (a) The commissioner must supplement required state academic standards with
54.29grade-level benchmarks. High school career and college ready benchmarks may cover
54.30more than one grade. The benchmarks must implement statewide academic standards
54.31by specifying the academic knowledge and skills that Schools must offer and students
54.32must achieve all benchmarks for an academic standard to satisfactorily complete a that
54.33 state standard. The commissioner must publish benchmarks to inform and guide parents,
54.34teachers, school districts, and other interested persons and to use in developing tests
54.35consistent with the benchmarks.
55.1(b) The commissioner shall publish benchmarks in the State Register and transmit
55.2the benchmarks in any other manner that informs and guides parents, teachers, school
55.3districts, and other interested persons and makes them accessible to the general public. The
55.4commissioner must use benchmarks in developing career and college readiness assessments
55.5under section 120B.30. The commissioner may charge a reasonable fee for publications.
55.6(c) Once established, the commissioner may change the benchmarks only with
55.7specific legislative authorization and after completing a review under subdivision 2.
55.8(d) The commissioner must develop and implement a system for reviewing each
55.9of the required academic standards and related benchmarks and elective standards on a
55.10periodic cycle, consistent with subdivision 2.
55.11(e) (d) The benchmarks are not subject to chapter 14 and section 14.386 does not
55.12apply.
55.13    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
55.14revise and appropriately embed technology and information literacy standards consistent
55.15with recommendations from school media specialists into the state's academic standards
55.16and graduation requirements and implement a review ten-year cycle for to review and
55.17revise state academic standards and related benchmarks, consistent with this subdivision.
55.18During each ten-year review and revision cycle, the commissioner also must examine the
55.19alignment of each required academic standard and related benchmark with the knowledge
55.20and skills students need for career and college readiness and advanced work in the
55.21particular subject area. The commissioner must include the contributions of Minnesota
55.22American Indian tribes and communities as related to the academic standards during the
55.23review and revision of the required academic standards.
55.24(b) The commissioner in the 2006-2007 school year must revise and align the state's
55.25academic standards and high school graduation requirements in mathematics to require
55.26that students satisfactorily complete the revised mathematics standards, beginning in the
55.272010-2011 school year. Under the revised standards:
55.28(1) students must satisfactorily complete an algebra I credit by the end of eighth
55.29grade; and
55.30(2) students scheduled to graduate in the 2014-2015 school year or later must
55.31satisfactorily complete an algebra II credit or its equivalent.
55.32    (b) The commissioner also must ensure that the statewide mathematics assessments
55.33administered to students in grades 3 through 8 and 11 are aligned with the state academic
55.34standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
55.35(b). The commissioner must implement a review of the academic standards and related
55.36benchmarks in mathematics beginning in the 2015-2016 school year.
56.1(c) The commissioner in the 2007-2008 school year must revise and align the state's
56.2academic standards and high school graduation requirements in the arts to require that
56.3students satisfactorily complete the revised arts standards beginning in the 2010-2011
56.4school year. The commissioner must implement a review of the academic standards and
56.5related benchmarks in arts beginning in the 2016-2017 school year.
56.6(d) The commissioner in the 2008-2009 school year must revise and align the state's
56.7academic standards and high school graduation requirements in science to require that
56.8students satisfactorily complete the revised science standards, beginning in the 2011-2012
56.9school year. Under the revised standards, students scheduled to graduate in the 2014-2015
56.10school year or later must satisfactorily complete a chemistry or physics credit or a career
56.11and technical education credit that meets standards underlying the chemistry, physics,
56.12or biology credit or a combination of those standards approved by the district. The
56.13commissioner must implement a review of the academic standards and related benchmarks
56.14in science beginning in the 2017-2018 school year.
56.15(e) The commissioner in the 2009-2010 school year must revise and align the state's
56.16academic standards and high school graduation requirements in language arts to require
56.17that students satisfactorily complete the revised language arts standards beginning in the
56.182012-2013 school year. The commissioner must implement a review of the academic
56.19standards and related benchmarks in language arts beginning in the 2018-2019 school year.
56.20(f) The commissioner in the 2010-2011 school year must revise and align the state's
56.21academic standards and high school graduation requirements in social studies to require
56.22that students satisfactorily complete the revised social studies standards beginning in the
56.232013-2014 school year. The commissioner must implement a review of the academic
56.24standards and related benchmarks in social studies beginning in the 2019-2020 school year.
56.25(g) School districts and charter schools must revise and align local academic
56.26standards and high school graduation requirements in health, world languages, and career
56.27and technical education to require students to complete the revised standards beginning
56.28in a school year determined by the school district or charter school. School districts and
56.29charter schools must formally establish a periodic review cycle for the academic standards
56.30and related benchmarks in health, world languages, and career and technical education.

56.31    Sec. 5. Minnesota Statutes 2012, section 120B.024, is amended to read:
56.32120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
56.33    Subdivision 1. Graduation requirements. (a) Students beginning 9th grade in the
56.342011-2012 school year and later must successfully complete the following high school
56.35level course credits for graduation:
57.1    (1) four credits of language arts sufficient to satisfy all of the academic standards
57.2in English language arts;
57.3    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
57.4and probability including an algebra II credit or its equivalent, sufficient to satisfy all of
57.5the academic standard standards in mathematics;
57.6(3) an algebra I credit by the end of 8th grade sufficient to satisfy all of the 8th
57.7grade standards in mathematics;
57.8    (3) (4) three credits of science, including at least: (i) one credit in of biology; and
57.9(ii) one chemistry or physics credit or a career and technical education credit that meets
57.10standards underlying the chemistry, physics, or biology credit or a combination of those
57.11standards approved by the district, but meeting biology standards under this item does not
57.12meet the biology requirement under item (i), one credit of chemistry or physics, and one
57.13elective credit of science. The combination of credits under this clause must be sufficient
57.14to satisfy (i) all of the academic standards in either chemistry or physics and (ii) all other
57.15academic standards in science;
57.16    (4) (5) three and one-half credits of social studies, encompassing at least United
57.17States history, geography, government and citizenship, world history, and economics or
57.18three credits of social studies encompassing at least United States history, geography,
57.19government and citizenship, and world history, and one-half credit of economics taught in
57.20a school's social studies, agriculture education, or business department sufficient to satisfy
57.21all of the academic standards in social studies;
57.22    (5) (6) one credit in of the arts sufficient to satisfy all of the state or local academic
57.23standards in the arts; and
57.24    (6) (7) a minimum of seven elective course credits.
57.25    A course credit is equivalent to a student successfully completing an academic
57.26year of study or a student mastering the applicable subject matter, as determined by the
57.27local school district.
57.28    Subd. 2. Credit equivalencies. (a) A one-half credit of economics taught in a
57.29school's agriculture education or business department may fulfill a one-half credit in
57.30social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the
57.31academic standards in economics.
57.32    (b) An agriculture science course or career and technical education credit may
57.33fulfill a the elective science credit requirement other than the specified science credit in
57.34biology under paragraph (a), clause (3). subdivision 1, clause (4), if the course meets
57.35academic standards in science as approved by the district. An agriculture science or
57.36career and technical education credit may fulfill the credit in chemistry or physics or the
58.1elective science credit required under subdivision 1, clause (4), if (1) the credit meets the
58.2chemistry, physics, or biology academic standards or a combination of these academic
58.3standards as approved by the district and (2) the student satisfies either all of the chemistry
58.4academic standards, all of the physics academic standards, or all of the applicable elective
58.5science standards prior to graduation. An agriculture science or career and technical
58.6education credit may not fulfill the required biology credit under subdivision 1, clause (4).
58.7    (c) A career and technical education course credit may fulfill a mathematics or arts
58.8credit requirement or a science credit requirement other than the specified science credit in
58.9biology under paragraph (a) subdivision 1, clause (2), (3), or (5) (6).
58.10(d) An agriculture education teacher is not required to meet the requirements of
58.11Minnesota Rules, part 3505.1150, subpart 1, item B, to meet the credit equivalency
58.12requirements of paragraph (b) above.
58.13EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
58.14students entering 9th grade in the 2013-2014 school year and later.

58.15    Sec. 6. Minnesota Statutes 2012, section 120B.11, is amended to read:
58.16120B.11 SCHOOL DISTRICT PROCESS FOR REVIEWING CURRICULUM,
58.17INSTRUCTION, AND STUDENT ACHIEVEMENT; STRIVING FOR THE
58.18WORLD'S BEST WORKFORCE.
58.19    Subdivision 1. Definitions. For the purposes of this section and section 120B.10,
58.20the following terms have the meanings given them.
58.21    (a) "Instruction" means methods of providing learning experiences that enable a
58.22student to meet state and district academic standards and graduation requirements.
58.23    (b) "Curriculum" means district or school adopted programs and written plans for
58.24providing students with learning experiences that lead to expected knowledge and skills
58.25 and career and college readiness.
58.26    (c) "World's best workforce" means striving to: meet school readiness goals; have
58.27all third grade students achieve grade-level literacy; close the academic achievement gap
58.28among all racial and ethnic groups of students and between students living in poverty and
58.29students not living in poverty; have all students attain career and college readiness before
58.30graduating from high school; and have all students graduate from high school.
58.31    Subd. 1a. Performance measures. Measures to determine school district and
58.32school site progress in striving to create the world's best workforce must include at least:
58.33(1) student performance on the National Association of Education Progress;
58.34(2) the size of the academic achievement gap by student subgroup;
59.1(3) student performance on the Minnesota Comprehensive Assessments;
59.2(4) high school graduation rates; and
59.3(5) career and college readiness under section 120B.30, subdivision 1.
59.4    Subd. 2. Adopting policies plans and budgets. A school board, at a public
59.5meeting, shall have in place an adopted written policy adopt a comprehensive, long-term
59.6strategic plan to support and improve teaching and learning that includes the following is
59.7aligned with creating the world's best workforce and includes:
59.8    (1) clearly defined district and school site goals and benchmarks for instruction
59.9including the use of best practices, district and school curriculum, and student achievement
59.10for all student subgroups identified in section 120B.35, subdivision 3, paragraph (b),
59.11clause (2);
59.12    (2) a process for assessing and evaluating each student's progress toward meeting state
59.13and local academic standards and identifying the strengths and weaknesses of instruction
59.14in pursuit of student and school success and curriculum affecting students' progress and
59.15growth toward career and college readiness and leading to the world's best workforce;
59.16    (3) a system for periodically reviewing and evaluating to periodically review and
59.17evaluate the effectiveness of all instruction and curriculum, taking into account strategies
59.18and best practices, student outcomes, school principal evaluations under section 123B.147,
59.19subdivision 3, and teacher evaluations under section 122A.40, subdivision 8, or 122A.41,
59.20subdivision 5;
59.21    (4) a plan strategies for improving instruction, curriculum, and student achievement;
59.22and
59.23    (5) an education effectiveness plan aligned with section 122A.625 practices that
59.24integrates integrate high-quality instruction, rigorous curriculum, and technology, and a
59.25collaborative professional culture that develops and supports teacher quality, performance,
59.26and effectiveness; and
59.27    (6) an annual budget for continuing to implement the district plan.
59.28    Subd. 3. District advisory committee. Each school board shall establish an
59.29advisory committee to ensure active community participation in all phases of planning and
59.30improving the instruction and curriculum affecting state and district academic standards,
59.31consistent with subdivision 2. A district advisory committee, to the extent possible, shall
59.32reflect the diversity of the district and its learning school sites, and shall include teachers,
59.33parents, support staff, students, and other community residents. The district may establish
59.34building site teams as subcommittees of the district advisory committee under subdivision
59.354. The district advisory committee shall recommend to the school board rigorous academic
59.36standards, student achievement goals and measures consistent with subdivision 1a and
60.1sections 120B.022, subdivision 1, paragraphs (b) and (c), and 120B.35, district assessments,
60.2and program evaluations. Learning School sites may expand upon district evaluations of
60.3instruction, curriculum, assessments, or programs. Whenever possible, parents and other
60.4community residents shall comprise at least two-thirds of advisory committee members.
60.5    Subd. 4. Building Site team. A school may establish a building site team to
60.6develop and implement an strategies and education effectiveness plan practices to improve
60.7instruction, curriculum, and student achievement at the school site, consistent with
60.8subdivision 2. The team shall advise advises the board and the advisory committee about
60.9developing the annual budget and revising an instruction and curriculum improvement
60.10plan that aligns curriculum, assessment of student progress and growth in meeting state
60.11and district academic standards, and instruction.
60.12    Subd. 5. Report. (a) By October 1 of each year, the school board shall use standard
60.13statewide reporting procedures the commissioner develops and adopt a report that includes
60.14the following:
60.15    (1) student achievement goals for meeting state academic standards;
60.16    (2) results of local assessment data, and any additional test data;
60.17    (3) the annual school district improvement plans including staff development goals
60.18under section 122A.60;
60.19    (4) information about district and learning site progress in realizing previously
60.20adopted improvement plans; and
60.21    (5) the amount and type of revenue attributed to each education site as defined
60.22in section 123B.04.
60.23    (b) Consistent with requirements for school performance reports under section
60.24120B.36, subdivision 1, the school board shall publish a summary of the report in the local
60.25newspaper with the largest circulation in the district, by mail, or by electronic means
60.26such as on the district Web site. The school board shall hold an annual public meeting
60.27to review, and revise where appropriate, student achievement goals, local assessment
60.28outcomes, plans, strategies, and practices for improving curriculum and instruction, and to
60.29review district success in realizing the previously adopted student achievement goals and
60.30related benchmarks and the improvement plans leading to the world's best workforce. If
60.31electronic means are used, school districts must publish notice of the report in a periodical
60.32of general circulation in the district. School districts must make copies of the report
60.33available to the public on request.
60.34    (c) The title of the report shall contain the name and number of the school district and
60.35read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
60.36must include at least the following information about advisory committee membership:
61.1    (1) the name of each committee member and the date when that member's term
61.2expires;
61.3    (2) the method and criteria the school board uses to select committee members; and
61.4    (3) the date by which a community resident must apply to next serve on the
61.5committee. The school board must transmit an electronic summary of its report to the
61.6commissioner in the form and manner the commissioner determines.
61.7    Subd. 6. Student evaluation. The school board annually shall provide high school
61.8graduates or GED recipients who receive a diploma or its equivalent from the school
61.9district with an opportunity to report to the board on the following:
61.10    (1) the quality of district instruction, curriculum, and services;
61.11    (2) the quality of district delivery of instruction, curriculum, and services;
61.12    (3) the utility of district facilities; and
61.13    (4) the effectiveness of district administration.
61.14    Subd. 7. Periodic report. Each school district shall periodically ask survey affected
61.15constituencies about their connection to and level of satisfaction with school. The
61.16district shall include the results of this evaluation in the summary report required under
61.17subdivision 5.
61.18    Subd. 8. Biennial evaluation; assessment program. At least once every two years,
61.19the district report shall include an evaluation of the district testing programs, according to
61.20the following:
61.21    (1) written objectives of the assessment program;
61.22    (2) names of tests and grade levels tested;
61.23    (3) use of test results; and
61.24    (4) student achievement results compared to previous years.
61.25    Subd. 9. Annual evaluation. (a) The commissioner must identify effective
61.26strategies, practices, and use of resources by districts and school sites in striving for the
61.27world's best workforce. The commissioner must assist districts and sites throughout the
61.28state in implementing these effective strategies, practices, and use of resources.
61.29(b) The commissioner must identify those districts in any consecutive three-year
61.30period not making sufficient progress toward improving teaching and learning and
61.31striving for the world's best workforce. The commissioner, in collaboration with the
61.32identified district, may require the district to use up to two percent of its basic general
61.33education revenue per fiscal year during the proximate three school years to implement
61.34commissioner-specified strategies and practices, consistent with paragraph (a), to improve
61.35and accelerate its progress in realizing its goals under this section. In implementing this
61.36section, the commissioner must consider districts' budget constraints and legal obligations.
62.1EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
62.2later.

62.3    Sec. 7. [120B.115] REGIONAL CENTERS OF EXCELLENCE.
62.4(a) Regional centers of excellence are established to assist and support school
62.5boards, school districts, school sites, and charter schools in implementing research-based
62.6interventions and practices to increase the students' achievement within a region.
62.7The centers must develop partnerships with local and regional service cooperatives,
62.8postsecondary institutions, integrated school districts, the department, children's mental
62.9health providers, or other local or regional entities interested in providing a cohesive
62.10and consistent regional delivery system that serves all schools equitably. Centers must
62.11assist school districts, school sites, and charter schools in developing similar partnerships.
62.12Center support may include assisting school districts, school sites, and charter schools
62.13with common principles of effective practice, including:
62.14(1) defining measurable education goals under section 120B.11, subdivision 2;
62.15(2) implementing evidence-based practices;
62.16(3) engaging in data-driven decision-making;
62.17(4) providing multi-layered levels of support;
62.18(5) supporting culturally responsive teaching and learning aligning state and local
62.19academic standards and career and college readiness benchmarks; and
62.20(6) engaging parents, families, youth, and local community members in programs
62.21and activities at the school district, school site, or charter school.
62.22Centers must work with school site leadership teams to build capacity to implement
62.23programs that close the achievement gap, increase students' progress and growth toward
62.24career and college readiness, and increase student graduation rates.
62.25(b) The department must assist the regional centers of excellence to meet staff,
62.26facilities, and technical needs, provide the centers with programmatic support, and work
62.27with the centers to establish a coherent statewide system of regional support, including
62.28consulting, training, and technical support, to help school boards, school districts, school
62.29sites, and charter schools effectively and efficiently implement the world's best workforce
62.30goals under section 120B.11 and other state and federal education initiatives.

62.31    Sec. 8. Minnesota Statutes 2012, section 120B.125, is amended to read:
62.32120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION
62.33TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY
62.34CAREER TRACKING PROHIBITED.
63.1(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14,
63.2120B.15 , 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections,
63.3school districts are strongly encouraged to, beginning in the 2013-2014 school year, must
63.4 assist all students by no later than grade 9 to explore their college and career interests and
63.5aspirations and develop a plan for a smooth and successful transition to postsecondary
63.6education or employment. All students' plans must be designed to:
63.7(1) provide a comprehensive academic plan for completing a college and
63.8career-ready curriculum premised on meeting state and local academic standards and
63.9developing 21st century skills such as team work, collaboration, and good work habits;
63.10(2) emphasize academic rigor and high expectations;
63.11(3) help students identify personal learning styles that may affect their postsecondary
63.12education and employment choices;
63.13(4) help students succeed at gaining gain access to postsecondary education and
63.14career options;
63.15(5) integrate strong academic content into career-focused courses and integrate
63.16relevant career-focused courses into strong academic content;
63.17(6) help students and families identify and gain access to appropriate counseling
63.18and other supports and assistance that enable students to complete required coursework,
63.19prepare for postsecondary education and careers, and obtain information about
63.20postsecondary education costs and eligibility for financial aid and scholarship;
63.21(7) help students and families identify collaborative partnerships of kindergarten
63.22through grade 12 schools, postsecondary institutions, economic development agencies, and
63.23employers that support students' transition to postsecondary education and employment
63.24and provide students with experiential learning opportunities; and
63.25(8) be reviewed and revised at least annually by the student, the student's parent or
63.26guardian, and the school or district to ensure that the student's course-taking schedule
63.27keeps the student "on track" making adequate progress to meet state and local high school
63.28graduation requirements and with a reasonable chance to succeed with employment or
63.29postsecondary education without the need to first complete remedial course work.
63.30(b) A school district may develop grade-level curricula or provide instruction that
63.31introduces students to various careers, but must not require any curriculum, instruction,
63.32or employment-related activity that obligates an elementary or secondary student to
63.33involuntarily select a career, career interest, employment goals, or related job training.
63.34(c) School districts are encouraged to seek and use revenue and in-kind contributions
63.35from nonstate sources and to seek administrative cost savings through innovative local
63.36funding arrangements, such as the Collaboration Among Rochester Educators (CARE)
64.1model for funding postsecondary enrollment options, among other sources, for purposes
64.2of implementing this section.
64.3EFFECTIVE DATE.This section is effective the day following final enactment.

64.4    Sec. 9. Minnesota Statutes 2012, section 120B.128, is amended to read:
64.5120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM
64.6(EPAS) PROGRAM.
64.7(a) School districts and charter schools may elect to participate in the Educational
64.8Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a
64.9longitudinal, systematic approach to student educational and career planning, assessment,
64.10instructional support, and evaluation. The EPAS achievement tests include English,
64.11reading, mathematics, science, and components on planning for high school and
64.12postsecondary education, interest inventory, needs assessments, and student education
64.13plans. These tests are linked to the ACT assessment for college admission and allow
64.14students, parents, teachers, and schools to determine the student's college readiness before
64.15grades 11 and 12.
64.16(b) The commissioner of education shall provide ACT Explore tests for students
64.17in grade 8 and the ACT Plan test for students in grade 10 to assess individual student
64.18academic strengths and weaknesses, academic achievement and progress, higher order
64.19thinking skills, and college readiness.
64.20(c) Students enrolled in grade 8 through the 2011-2012 school year who have
64.21not yet demonstrated proficiency on the Minnesota comprehensive assessments, the
64.22graduation-required assessments for diploma, or the basic skills testing requirements
64.23prior to high school graduation may satisfy state high school graduation requirements
64.24for assessments in reading, mathematics, and writing by taking the graduation-required
64.25assessment for diploma in reading, mathematics, or writing under Minnesota Statutes
64.262012, section 120B.30, subdivision 1, paragraph (c), clauses (1) and (2), the WorkKeys
64.27job skills assessment, the Compass college placement test, a nationally recognized armed
64.28services vocation aptitude test, or the ACT assessment for college admission.
64.29(d) The state shall pay the test costs for school districts and charter schools that
64.30choose to participate in the EPAS program public school students to participate in the
64.31assessments under this section. The commissioner shall establish an application procedure
64.32and a process for state payment of costs.
64.33EFFECTIVE DATE.This section is effective the day following final enactment.

65.1    Sec. 10. Minnesota Statutes 2012, section 120B.15, is amended to read:
65.2120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
65.3    (a) School districts may identify students, locally develop programs addressing
65.4instructional and affective needs, provide staff development, and evaluate programs to
65.5provide gifted and talented students with challenging and appropriate educational programs.
65.6    (b) School districts may must adopt guidelines for assessing and identifying students
65.7for participation in gifted and talented programs. The guidelines should include the use of:
65.8    (1) multiple and objective criteria; and
65.9    (2) assessments and procedures that are valid and reliable, fair, and based on current
65.10theory and research. Assessments and procedures should be sensitive to underrepresented
65.11groups, including, but not limited to, low-income, minority, twice-exceptional, and
65.12English learners.
65.13    (c) School districts must adopt procedures for the academic acceleration of gifted
65.14and talented students. These procedures must include how the district will:
65.15    (1) assess a student's readiness and motivation for acceleration; and
65.16    (2) match the level, complexity, and pace of the curriculum to a student to achieve
65.17the best type of academic acceleration for that student.
65.18(d) School districts must adopt procedures consistent with section 124D.02,
65.19subdivision 1, for early admission to kindergarten or first grade of gifted and talented
65.20learners. The procedures must be sensitive to underrepresented groups.

65.21    Sec. 11. [120B.21] MENTAL HEALTH EDUCATION.
65.22School districts and charter schools are encouraged to provide mental health
65.23instruction for students in grades 6 through 12 aligned with local health standards and
65.24integrated into existing programs, curriculum, or the general school environment of a
65.25district or charter school. The commissioner, in consultation with the commissioner of
65.26human services and mental health organizations, is encouraged to provide districts and
65.27charter schools with:
65.28(1) age-appropriate model learning activities for grades 6 through 12 that encompass
65.29the mental health components of the National Health Education Standards and the
65.30benchmarks developed by the department's quality teaching network in health and best
65.31practices in mental health education; and
65.32(2) a directory of resources for planning and implementing age-appropriate mental
65.33health curriculum and instruction in grades 6 through 12.
65.34EFFECTIVE DATE.This section is effective the day following final enactment.

66.1    Sec. 12. Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:
66.2    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
66.3with appropriate technical qualifications and experience and stakeholders, consistent
66.4with subdivision 1a, shall include in the comprehensive assessment system, for each
66.5grade level to be tested, state-constructed tests developed from and as computer-adaptive
66.6reading and mathematics assessments for students that are aligned with the state's required
66.7academic standards under section 120B.021, include multiple choice questions, and be are
66.8 administered annually to all students in grades 3 through 8 7. Reading and mathematics
66.9assessments for all students in grade 8 must be aligned with the state's required reading and
66.10mathematics standards, be administered annually, and include multiple choice questions.
66.11 State-developed high school tests aligned with the state's required academic standards
66.12under section 120B.021 and administered to all high school students in a subject other than
66.13writing must include multiple choice questions. The commissioner shall establish one
66.14or more months during which schools shall administer the tests to students each school
66.15year. For students enrolled in grade 8 before the 2005-2006 school year, Minnesota basic
66.16skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing
66.17requirements for a passing state notation. The passing scores of basic skills tests in reading
66.18and mathematics are the equivalent of 75 percent correct for students entering grade 9
66.19based on the first uniform test administered in February 1998. Students who have not
66.20successfully passed a Minnesota basic skills test by the end of the 2011-2012 school year
66.21must pass the graduation-required assessments for diploma under paragraph (c), except that
66.22for the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's
66.23graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).
66.24(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible
66.25to be assessed under (i) the graduation-required assessment for diploma in reading,
66.26mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1,
66.27paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii)
66.28the Compass college placement test, (iv) the ACT assessment for college admission, or (v)
66.29a nationally recognized armed services vocational aptitude test.
66.30(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are
66.31eligible to be assessed under (i) the graduation-required assessment for diploma in reading,
66.32mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision
66.331, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the
66.34Compass college placement test, (iv) the ACT assessment for college admission, or (v) a
66.35nationally recognized armed services vocational aptitude test.
67.1(3) For students under clause (1) or (2), a school district may substitute a score from
67.2an alternative, equivalent assessment to satisfy the requirements of this paragraph.
67.3(b) The state assessment system must be aligned to the most recent revision of
67.4academic standards as described in section 120B.023 in the following manner:
67.5(1) mathematics;
67.6(i) grades 3 through 8 beginning in the 2010-2011 school year; and
67.7(ii) high school level beginning in the 2013-2014 school year;
67.8(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
67.9school year; and
67.10(3) language arts and reading; grades 3 through 8 and high school level beginning in
67.11the 2012-2013 school year.
67.12    (c) For students enrolled in grade 8 in the 2005-2006 2012-2013 school year and
67.13later, only the following options shall fulfill students' state graduation test requirements,
67.14based on a longitudinal, systematic approach to student education and career planning,
67.15assessment, instructional support, and evaluation, include the following:
67.16    (1) for reading and mathematics:
67.17    (i) obtaining an achievement level equivalent to or greater than proficient as
67.18determined through a standard setting process on the Minnesota comprehensive
67.19assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
67.20score as determined through a standard setting process on the graduation-required
67.21assessment for diploma in grade 10 for reading and grade 11 for mathematics or
67.22subsequent retests;
67.23    (ii) achieving a passing score as determined through a standard setting process
67.24on the state-identified language proficiency test in reading and the mathematics test for
67.25English learners or the graduation-required assessment for diploma equivalent of those
67.26assessments for students designated as English learners;
67.27    (iii) achieving an individual passing score on the graduation-required assessment for
67.28diploma as determined by appropriate state guidelines for students with an individualized
67.29education program or 504 plan;
67.30    (iv) obtaining achievement level equivalent to or greater than proficient as
67.31determined through a standard setting process on the state-identified alternate assessment
67.32or assessments in grade 10 for reading and grade 11 for mathematics for students with
67.33an individualized education program; or
67.34    (v) achieving an individual passing score on the state-identified alternate assessment
67.35or assessments as determined by appropriate state guidelines for students with an
67.36individualized education program; and
68.1    (2) for writing:
68.2    (i) achieving a passing score on the graduation-required assessment for diploma;
68.3    (ii) achieving a passing score as determined through a standard setting process on
68.4the state-identified language proficiency test in writing for students designated as English
68.5learners;
68.6    (iii) achieving an individual passing score on the graduation-required assessment for
68.7diploma as determined by appropriate state guidelines for students with an individualized
68.8education program or 504 plan; or
68.9    (iv) achieving an individual passing score on the state-identified alternate assessment
68.10or assessments as determined by appropriate state guidelines for students with an
68.11individualized education program.
68.12    (1) demonstrate understanding of required academic standards on a nationally
68.13normed college entrance exam;
68.14    (2) achievement and career and college readiness tests in mathematics, reading, and
68.15writing, consistent with paragraph (e) and to the extent available, to monitor students'
68.16continuous development of and growth in requisite knowledge and skills; analyze
68.17students' progress and performance levels, identifying students' academic strengths and
68.18diagnosing areas where students require curriculum or instructional adjustments, targeted
68.19interventions, or remediation; and, based on analysis of students' progress and performance
68.20data, determine students' learning and instructional needs and the instructional tools and
68.21best practices that support academic rigor for the student; and
68.22    (3) consistent with this paragraph and section 120B.125, age-appropriate exploration
68.23and planning activities and career assessments to encourage students to identify personally
68.24relevant career interests and aptitudes and help students and their families develop a
68.25regularly reexamined transition plan for postsecondary education or employment without
68.26need for postsecondary remediation.
68.27Based on appropriate state guidelines, students with an individualized education program
68.28may satisfy state graduation requirements by achieving an individual score on the
68.29state-identified alternative assessments.
68.30Expectations of schools, districts, and the state for career or college readiness under
68.31this subdivision must be comparable in rigor, clarity of purpose, and rates of student
68.32completion. A student under clause (2) must receive targeted, relevant, academically
68.33rigorous, and resourced instruction, which may include a targeted instruction and
68.34intervention plan focused on improving the student's knowledge and skills in core subjects
68.35so that the student has a reasonable chance to succeed in a career or college without need
68.36for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091,
69.1124D.49, and related sections, an enrolling school or district must actively encourage a
69.2student in grade 11 or 12 who is identified as academically ready for a career or college
69.3to participate in courses and programs awarding college credit to high school students.
69.4Students are not required to achieve a specified score or level of proficiency on an
69.5assessment under this subdivision to graduate from high school.
69.6    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
69.7year to the 2009-2010 school year who do not pass the mathematics graduation-required
69.8assessment for diploma under paragraph (c) are eligible to receive a high school diploma
69.9if they:
69.10(1) complete with a passing score or grade all state and local coursework and credits
69.11required for graduation by the school board granting the students their diploma;
69.12(2) participate in district-prescribed academic remediation in mathematics; and
69.13    (3) fully participate in at least two retests of the mathematics GRAD test or until
69.14they pass the mathematics GRAD test, whichever comes first. To improve the secondary
69.15and postsecondary outcomes of all students, the alignment between secondary and
69.16postsecondary education programs and Minnesota's workforce needs, and the efficiency
69.17and cost-effectiveness of secondary and postsecondary programs, the commissioner, after
69.18consulting with the chancellor of the Minnesota State Colleges and Universities and using
69.19a request for proposal process, shall contract for a series of assessments that are consistent
69.20with this subdivision, aligned with state academic standards, and include career and college
69.21readiness benchmarks. Mathematics, reading, and writing assessments for students in
69.22grades 8 and 10 must be predictive of a nationally normed assessment for career and college
69.23readiness. This nationally recognized assessment must be a college entrance exam and
69.24given to students in grade 11. This series of assessments must include a college placement
69.25diagnostic exam and contain career exploration elements. The commissioner and the
69.26chancellor of the Minnesota State Colleges and Universities must collaborate in aligning
69.27instruction and assessments for adult basic education students to provide the students with
69.28diagnostic information about any targeted interventions they need so that they may seek
69.29postsecondary education or employment without need for postsecondary remediation.
69.30    (1) Districts and schools, on an annual basis, must use the career exploration
69.31elements in these assessments to help students, beginning no later than grade 9, and their
69.32families explore and plan for postsecondary education or careers based on the students'
69.33interests, aptitudes, and aspirations. Districts and schools must use timely regional labor
69.34market information and partnerships, among other resources, to help students and their
69.35families successfully develop, pursue, review, and revise an individualized plan for
69.36postsecondary education or a career. This process must help increase students' engagement
70.1in and connection to school, improve students' knowledge and skills, and deepen students'
70.2understanding of career pathways as a sequence of academic and career courses that lead
70.3to an industry-recognized credential, an associate's degree, or a bachelor's degree and are
70.4available to all students, whatever their interests and career goals.
70.5(2) Students in grade 10 or 11 not yet academically ready for a career or college based
70.6on their growth in academic achievement between grades 8 and 10 must take the college
70.7placement diagnostic exam before taking the college entrance exam under clause (3).
70.8Students, their families, the school, and the district can then use the results of the college
70.9placement diagnostic exam for targeted instruction, intervention, or remediation and
70.10improve students' knowledge and skills in core subjects sufficient for a student to graduate
70.11and have a reasonable chance to succeed in a career or college without remediation.
70.12(3) All students except those eligible for alternative assessments must be given the
70.13college entrance part of these assessments in grade 11. A student under this clause who
70.14demonstrates attainment of required state academic standards, which include career and
70.15college readiness benchmarks, on these assessments is academically ready for a career or
70.16college and is encouraged to participate in courses awarding college credit to high school
70.17students. Such courses and programs may include sequential courses of study within
70.18broad career areas and technical skill assessments that extend beyond course grades.
70.19(4) As appropriate, students through grade 12 must continue to participate in targeted
70.20instruction, intervention, or remediation and be encouraged to participate in courses
70.21awarding college credit to high school students.
70.22    (5) A study to determine the alignment between these assessments and state
70.23academic standards under this chapter must be conducted. Where alignment exists, the
70.24commissioner must seek federal approval to, and immediately upon receiving approval,
70.25replace the federally required assessments referenced under subdivision 1a and section
70.26120B.35, subdivision 2, with assessments under this paragraph.
70.27    (e) In developing, supporting, and improving students' academic readiness for a
70.28career or college, schools, districts, and the state must have a continuum of empirically
70.29derived, clearly defined benchmarks focused on students' attainment of knowledge and
70.30skills so that students, their parents, and teachers know how well students must perform to
70.31have a reasonable chance to succeed in a career or college without need for postsecondary
70.32remediation. The commissioner, in consultation with local school officials and educators,
70.33and Minnesota's public postsecondary institutions must ensure that the foundational
70.34knowledge and skills for students' successful performance in postsecondary employment
70.35or education and an articulated series of possible targeted interventions are clearly
70.36identified and satisfy Minnesota's postsecondary admissions requirements.
71.1    (f) For students in grade 8 in the 2012-2013 school year and later, a school, district,
71.2or charter school must place record on the high school transcript a student's current pass
71.3status for each subject that has a required graduation assessment progress toward career
71.4and college readiness, and for other students as soon as practicable.
71.5    In addition, (g) The school board granting the students their diplomas may formally
71.6decide to include a notation of high achievement on the high school diplomas of those
71.7graduating seniors who, according to established school board criteria, demonstrate
71.8exemplary academic achievement during high school.
71.9(e) (h) The 3rd through 8th 7th grade computer-adaptive assessment results and grade
71.108 and high school test results shall be available to districts for diagnostic purposes affecting
71.11student learning and district instruction and curriculum, and for establishing educational
71.12accountability. The commissioner must establish empirically derived benchmarks on
71.13adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and
71.14college readiness. The commissioner must disseminate to the public the computer-adaptive
71.15assessments, grade 8, and high school test results upon receiving those results.
71.16    (f) (i) The 3rd through 8th grade grades 3 through 7 computer-adaptive assessments
71.17and grade 8 and high school tests must be aligned with state academic standards. The
71.18commissioner shall determine the testing process and the order of administration.
71.19The statewide results shall be aggregated at the site and district level, consistent with
71.20subdivision 1a.
71.21    (g) In addition to the testing and reporting requirements under this section, (j) The
71.22commissioner shall include the following components in the statewide public reporting
71.23system:
71.24    (1) uniform statewide testing computer-adaptive assessments of all students in
71.25grades 3 through 8 7 and testing at the grade 8 and high school level levels that provides
71.26appropriate, technically sound accommodations or alternate assessments;
71.27    (2) educational indicators that can be aggregated and compared across school
71.28districts and across time on a statewide basis, including average daily attendance, high
71.29school graduation rates, and high school drop-out rates by age and grade level;
71.30    (3) state results on the American College Test; and
71.31    (4) state results from participation in the National Assessment of Educational
71.32Progress so that the state can benchmark its performance against the nation and other
71.33states, and, where possible, against other countries, and contribute to the national effort
71.34to monitor achievement.
71.35EFFECTIVE DATE.This section is effective the day following final enactment
71.36and applies to the 2013-2014 school year and later, except that paragraph (a) applies
72.1the day following final enactment and the requirements for using computer-adaptive
72.2mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016
72.3school year and later. The series of assessments contracted for under paragraph (d) apply
72.4in the 2014-2015 school year and later.

72.5    Sec. 13. Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:
72.6    Subd. 1a. Statewide and local assessments; results. (a) For purposes of this
72.7section, the following definitions have the meanings given them.
72.8(1) "Computer-adaptive assessments" means fully adaptive assessments.
72.9(2) "Fully adaptive assessments" include test items that are on-grade level and items
72.10that may be above or below a student's grade level.
72.11(3) "On-grade level" test items contain subject area content that is aligned to state
72.12academic standards for the grade level of the student taking the assessment.
72.13(4) "Above-grade level" test items contain subject area content that is above the
72.14grade level of the student taking the assessment and is considered aligned with state
72.15academic standards to the extent it is aligned with content represented in state academic
72.16standards above the grade level of the student taking the assessment. Notwithstanding
72.17the student's grade level, administering above-grade level test items to a student does not
72.18violate the requirement that state assessments must be aligned with state standards.
72.19(5) "Below-grade level" test items contain subject area content that is below the
72.20grade level of the student taking the test and is considered aligned with state academic
72.21standards to the extent it is aligned with content represented in state academic standards
72.22below the student's current grade level. Notwithstanding the student's grade level,
72.23administering below-grade level test items to a student does not violate the requirement
72.24that state assessments must be aligned with state standards.
72.25(b) The commissioner must use fully adaptive mathematics and reading assessments
72.26for grades 3 through 7 beginning in the 2015-2016 school year and later.
72.27(c) For purposes of conforming with existing federal educational accountability
72.28requirements, the commissioner must develop and implement computer-adaptive reading
72.29and mathematics assessments for grades 3 through 8 7, state-developed grade 8 and
72.30 high school reading and mathematics tests aligned with state academic standards, and
72.31science assessments under clause (2) that districts and sites must use to monitor student
72.32growth toward achieving those standards. The commissioner must not develop statewide
72.33assessments for academic standards in social studies, health and physical education, and
72.34the arts. The commissioner must require:
73.1    (1) annual computer-adaptive reading and mathematics assessments in grades 3
73.2through 8 7, and grade 8 and high school reading and mathematics tests; and
73.3    (2) annual science assessments in one grade in the grades 3 through 5 span, the
73.4grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span,
73.5and the commissioner must not require students to achieve a passing score on high school
73.6science assessments as a condition of receiving a high school diploma.
73.7(d) The commissioner must ensure that for annual computer-adaptive assessments:
73.8(1) individual student performance data and achievement reports are available
73.9within three school days of when students take an assessment except in a year when an
73.10assessment reflects new performance standards;
73.11(2) growth information is available for each student from the student's first
73.12assessment to each proximate assessment using a constant measurement scale;
73.13(3) parents, teachers, and school administrators are able to use elementary and
73.14middle school student performance data to project students' secondary and postsecondary
73.15achievement; and
73.16(4) useful diagnostic information about areas of students' academic strengths and
73.17weaknesses is available to teachers and school administrators for improving student
73.18instruction and indicating the specific skills and concepts that should be introduced and
73.19developed for students at given performance levels, organized by strands within subject
73.20areas, and aligned to state academic standards.
73.21    (b) (e) The commissioner must ensure that all statewide state tests administered to
73.22elementary and secondary students measure students' academic knowledge and skills and
73.23not students' values, attitudes, and beliefs.
73.24    (c) (f) Reporting of state assessment results must:
73.25    (1) provide timely, useful, and understandable information on the performance of
73.26individual students, schools, school districts, and the state;
73.27    (2) include a value-added growth indicator of student achievement under section
73.28 120B.35, subdivision 3, paragraph (b); and
73.29    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
73.30whether students have met the state's basic skills requirements; and
73.31    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
73.32whether students have met the state's academic standards.
73.33    (d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d),
73.34clause (1), the commissioner must include appropriate, technically sound accommodations
73.35or alternative assessments for the very few students with disabilities for whom statewide
73.36assessments are inappropriate and for English learners.
74.1    (e) (h) A school, school district, and charter school must administer statewide
74.2assessments under this section, as the assessments become available, to evaluate student
74.3proficiency progress toward career and college readiness in the context of the state's grade
74.4level academic standards. If a state assessment is not available, a school, school district,
74.5and charter school must determine locally if a student has met the required academic
74.6standards. A school, school district, or charter school may use a student's performance
74.7on a statewide assessment as one of multiple criteria to determine grade promotion or
74.8retention. A school, school district, or charter school may use a high school student's
74.9performance on a statewide assessment as a percentage of the student's final grade in a
74.10course, or place a student's assessment score on the student's transcript.
74.11EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
74.12later except the requirements for using computer-adaptive mathematics and reading
74.13assessments for grades 3 through 7 apply in the 2015-2016 school year and later. Results
74.14related to career and college readiness benchmarks apply in the 2014-2015 school year
74.15and later.

74.16    Sec. 14. Minnesota Statutes 2012, section 120B.31, subdivision 1, is amended to read:
74.17    Subdivision 1. Educational accountability and public reporting. Consistent
74.18with the direction to adopt statewide academic standards under section 120B.02, the
74.19department, in consultation with education and other system stakeholders, must establish a
74.20coordinated and comprehensive system of educational accountability and public reporting
74.21that promotes greater academic achievement, preparation for higher academic education,
74.22preparation for the world of work, citizenship under sections 120B.021, subdivision 1,
74.23clause (4), and 120B.024, paragraph (a), clause (4), and the arts.

74.24    Sec. 15. Minnesota Statutes 2012, section 120B.35, subdivision 3, is amended to read:
74.25    Subd. 3. State growth target; other state measures. (a) The state's educational
74.26assessment system measuring individual students' educational growth is based on
74.27indicators of achievement growth that show an individual student's prior achievement.
74.28Indicators of achievement and prior achievement must be based on highly reliable
74.29statewide or districtwide assessments.
74.30(b) The commissioner, in consultation with a stakeholder group that includes
74.31assessment and evaluation directors and staff and researchers must implement a model
74.32that uses a value-added growth indicator and includes criteria for identifying schools
74.33and school districts that demonstrate medium and high growth under section 120B.299,
74.34subdivisions 8 and 9, and may recommend other value-added measures under section
75.1120B.299, subdivision 3 . The model may be used to advance educators' professional
75.2development and replicate programs that succeed in meeting students' diverse learning
75.3needs. Data on individual teachers generated under the model are personnel data under
75.4section 13.43. The model must allow users to:
75.5(1) report student growth consistent with this paragraph; and
75.6(2) for all student categories, report and compare aggregated and disaggregated state
75.7growth data using the nine student categories identified under the federal 2001 No Child
75.8Left Behind Act and two student gender categories of male and female, respectively,
75.9following appropriate reporting practices to protect nonpublic student data.
75.10The commissioner must report separate measures of student growth and proficiency,
75.11consistent with this paragraph.
75.12(c) When reporting student performance under section 120B.36, subdivision 1, the
75.13commissioner annually, beginning July 1, 2011, must report two core measures indicating
75.14the extent to which current high school graduates are being prepared for postsecondary
75.15academic and career opportunities:
75.16(1) a preparation measure indicating the number and percentage of high school
75.17graduates in the most recent school year who completed course work important to
75.18preparing them for postsecondary academic and career opportunities, consistent with
75.19the core academic subjects required for admission to Minnesota's public colleges and
75.20universities as determined by the Office of Higher Education under chapter 136A; and
75.21(2) a rigorous coursework measure indicating the number and percentage of high
75.22school graduates in the most recent school year who successfully completed one or more
75.23college-level advanced placement, international baccalaureate, postsecondary enrollment
75.24options including concurrent enrollment, other rigorous courses of study under section
75.25120B.021, subdivision 1a , or industry certification courses or programs.
75.26When reporting the core measures under clauses (1) and (2), the commissioner must also
75.27analyze and report separate categories of information using the nine student categories
75.28identified under the federal 2001 No Child Left Behind Act and two student gender
75.29categories of male and female, respectively, following appropriate reporting practices to
75.30protect nonpublic student data.
75.31(d) When reporting student performance under section 120B.36, subdivision 1, the
75.32commissioner annually, beginning July 1, 2014, must report summary data on school
75.33safety and students' engagement and connection at school. The summary data under this
75.34paragraph are separate from and must not be used for any purpose related to measuring
75.35or evaluating the performance of classroom teachers. The commissioner, in consultation
75.36with qualified experts on student engagement and connection and classroom teachers,
76.1must identify highly reliable variables that generate summary data under this paragraph.
76.2The summary data may be used at school, district, and state levels only. Any data on
76.3individuals received, collected, or created that are used to generate the summary data
76.4under this paragraph are nonpublic data under section 13.02, subdivision 9.
76.5(e) For purposes of statewide educational accountability, the commissioner must
76.6identify and report measures that demonstrate the success of learning year program
76.7providers under sections 123A.05 and 124D.68, among other such providers, in improving
76.8students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually
76.9report summary data on:
76.10(1) the four- and six-year graduation rates of students under this paragraph;
76.11(2) the percent of students under this paragraph whose progress and performance
76.12levels are meeting career and college readiness benchmarks under section 120B.30,
76.13subdivision 1; and
76.14(3) the success that learning year program providers experience in:
76.15(i) identifying at-risk and off-track student populations by grade;
76.16(ii) providing successful prevention and intervention strategies for at-risk students;
76.17(iii) providing successful recuperative and recovery or reenrollment strategies for
76.18off-track students; and
76.19(iv) improving the graduation outcomes of at-risk and off-track students.
76.20The commissioner may include in the annual report summary data on other education
76.21providers serving a majority of students eligible to participate in a learning year program.
76.22EFFECTIVE DATE.Paragraph (e) applies to data that are collected in the
76.232014-2015 school year and later and reported annually beginning July 1, 2015.

76.24    Sec. 16. Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:
76.25    Subdivision 1. School performance report cards reports. (a) The commissioner
76.26shall report student academic performance under section 120B.35, subdivision 2; the
76.27percentages of students showing low, medium, and high growth under section 120B.35,
76.28subdivision 3
, paragraph (b); school safety and student engagement and connection
76.29under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
76.30120B.35, subdivision 3 , paragraph (c); the percentage of students under section 120B.35,
76.31subdivision 3, paragraph (b), clause (2), whose progress and performance levels are
76.32meeting career and college readiness benchmarks under sections 120B.30, subdivision
76.331, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress of
76.34eligible districts in reducing disparities in students' academic achievement and racial and
76.35economic integration under section 124D.861; two separate student-to-teacher ratios that
77.1clearly indicate the definition of teacher consistent with sections 122A.06 and 122A.15
77.2for purposes of determining these ratios; staff characteristics excluding salaries; student
77.3enrollment demographics; district mobility; and extracurricular activities. The report also
77.4must indicate a school's adequate yearly progress status under applicable federal law,
77.5and must not set any designations applicable to high- and low-performing schools due
77.6solely to adequate yearly progress status.
77.7    (b) The commissioner shall develop, annually update, and post on the department
77.8Web site school performance report cards reports.
77.9    (c) The commissioner must make available performance report cards reports by the
77.10beginning of each school year.
77.11    (d) A school or district may appeal its adequate yearly progress status in writing to
77.12the commissioner within 30 days of receiving the notice of its status. The commissioner's
77.13decision to uphold or deny an appeal is final.
77.14    (e) School performance report card data are nonpublic data under section 13.02,
77.15subdivision 9
, until the commissioner publicly releases the data. The commissioner shall
77.16annually post school performance report cards reports to the department's public Web
77.17site no later than September 1, except that in years when the report card reflects reports
77.18reflect new performance standards, the commissioner shall post the school performance
77.19report cards reports no later than October 1.
77.20EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
77.21later.

77.22    Sec. 17. Minnesota Statutes 2012, section 124D.52, is amended by adding a
77.23subdivision to read:
77.24    Subd. 8. Standard high school diploma for adults. (a) The commissioner shall
77.25adopt rules for providing a standard adult high school diploma to persons who:
77.26(1) are not eligible for kindergarten through grade 12 services;
77.27(2) do not have a high school diploma; and
77.28(3) successfully complete an adult basic education program of instruction approved
77.29by the commissioner of education necessary to earn an adult high school diploma.
77.30(b) Persons participating in an approved adult basic education program of instruction
77.31must demonstrate the competencies, knowledge, and skills sufficient to ensure that
77.32postsecondary programs and institutions and potential employers regard persons with a
77.33standard high school diploma and persons with a standard adult high school diploma as
77.34equally well prepared and qualified graduates. Approved adult basic education programs
77.35of instruction under this subdivision must issue a standard adult high school diploma to
78.1persons who successfully demonstrate the competencies, knowledge, and skills required
78.2by the program.
78.3EFFECTIVE DATE.This section is effective July 1, 2014.

78.4    Sec. 18. CAREER PATHWAYS AND TECHNICAL EDUCATION ADVISORY
78.5TASK FORCE.
78.6    Subdivision 1. Recommendations. (a) A career pathways and technical education
78.7advisory task force is established to recommend to the Minnesota legislature, consistent
78.8with Minnesota Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3,
78.9how to structurally redesign secondary and postsecondary education to:
78.10(1) improve secondary and postsecondary outcomes for students and adult learners;
78.11(2) align secondary and postsecondary education programs serving students and
78.12adult learners;
78.13(3) align secondary and postsecondary education programs and Minnesota's
78.14workforce needs; and
78.15(4) measure and evaluate the combined efficacy of Minnesota's public kindergarten
78.16through grade 12 and postsecondary education programs.
78.17(b) Advisory task force members, in preparing these recommendations, must
78.18seek the advice of education providers, employers, policy makers, and other interested
78.19stakeholders and must at least consider how to:
78.20(1) better inform students about career options, occupational trends, and educational
78.21paths leading to viable and rewarding careers and reduce the gap between the demand for
78.22and preparation of a skilled Minnesota workforce;
78.23(2) in consultation with a student's family, develop and periodically adapt, as
78.24needed, an education and work plan for each student aligned with the student's personal
78.25and professional interests, abilities, skills, and aspirations;
78.26(3) improve monitoring of high school students' progress with targeted interventions
78.27and support and remove the need for remedial instruction;
78.28(4) increase and accelerate opportunities for secondary school students to earn
78.29postsecondary credits leading to a certificate, industry license, or degree;
78.30(5) better align high school courses and expectations and postsecondary
78.31credit-bearing courses;
78.32(6) better align high school standards and assessments, postsecondary readiness
78.33measures and entrance requirements, and the expectations of Minnesota employers;
79.1(7) increase the rates at which students complete a postsecondary certificate,
79.2industry license, or degree; and
79.3(8) provide graduates of two-year and four-year postsecondary institutions with the
79.4foundational skills needed for civic engagement, ongoing employment, and continuous
79.5learning.
79.6    Subd. 2. Membership. The Career Pathways Advisory Task Force shall have 15
79.7members appointed by July 15, 2013, as follows:
79.8(1) one member appointed by the Minnesota Association of Career and Technical
79.9Administrators;
79.10(2) one member appointed by the Minnesota Association for Career and Technical
79.11Education;
79.12(3) one member appointed by the University of Minnesota who is a faculty member
79.13working to develop career and technical educators in Minnesota;
79.14(4) one member appointed by the Minnesota State Colleges and Universities who is
79.15a faculty member working to develop career and technical educators in Minnesota;
79.16(5) one member appointed by the National Research Center for Career and Technical
79.17Education;
79.18(6) one member appointed by the Minnesota Department of Education;
79.19(7) one member appointed by the Minnesota Board of Teaching;
79.20(8) one member appointed by the Minnesota Association of Colleges for Teacher
79.21Education;
79.22(9) one member appointed by the Minnesota State Colleges and Universities from
79.23faculty for foundational skills and general education;
79.24(10) one member representing licensed career and technical education teachers
79.25appointed by Education Minnesota;
79.26(11) one member appointed by the commissioner of the Minnesota Department of
79.27Employment and Economic Development;
79.28(12) one member appointed by the Minnesota Chamber of Commerce;
79.29(13) one member appointed by the Minnesota Business Partnership;
79.30(14) one member appointed by the Minnesota Secondary School Principals
79.31Association;
79.32(15) one member appointed by the Minnesota Association of School Administrators;
79.33(16) one member appointed by the Minnesota School Counselors Association;
79.34(17) one member appointed by the Minnesota Association of Charter Schools; and
79.35(18) four members appointed by the commissioner of education who have expertise
79.36in any of the areas with which the task force has been charged in subdivision 1.
80.1    Subd. 3. Terms. Each member shall serve until the task force sunsets, unless
80.2replaced by their appointing authority.
80.3    Subd. 4. First meeting; acting chair; chair. The commissioner of education shall
80.4convene the first meeting by August 15, 2013, and shall act as chair until the task force
80.5elects a chair from among its members at the first meeting.
80.6    Subd. 5. Staff; technical assistance. The commissioner of education, on request
80.7by the task force, will provide technical assistance and provide staff assistance sufficient
80.8for the task force to carry out its duties.
80.9    Subd. 6. Report. By February 15, 2014, the task force shall submit a written
80.10report describing its recommendations to the chairs and ranking minority members of the
80.11legislative committees and divisions with primary jurisdiction over kindergarten through
80.12grade 12 education.
80.13    Subd. 7. Sunset. The task force expires the day after the task force reports to the
80.14legislature, or February 15, 2014, whichever is earlier.
80.15EFFECTIVE DATE.This section is effective the day following final enactment.

80.16    Sec. 19. STANDARD ADULT HIGH SCHOOL DIPLOMA ADVISORY TASK
80.17FORCE.
80.18    Subdivision 1. Establishment. The commissioner of education shall appoint a
80.19nine-member advisory task force to recommend programmatic requirements for adult
80.20basic education programs of instruction leading to a standard adult high school diploma
80.21under Minnesota Statutes, section 124D.52, subdivision 8.
80.22    Subd. 2. Membership. The commissioner of education must appoint representatives
80.23from the following organizations to the task force by July 1, 2013:
80.24(1) one employee of the Department of Education with expertise in adult basic
80.25education;
80.26(2) five administrators and teachers with expertise in development of education
80.27curriculum from local adult basic education programs located in rural, suburban, and
80.28urban areas of the state, at least one of whom represents the Literacy Action network;
80.29(3) one employee of the Minnesota State Colleges and Universities with expertise
80.30in adult basic education;
80.31(4) one employee of the Department of Employment and Economic Development
80.32with expertise in adult basic education and employment; and
81.1(5) one member of the Minnesota Chamber of Commerce familiar with adult basic
81.2education programs under Minnesota Statutes, section 124D.52.
81.3    Subd. 3. Duties. The duties of the task force shall include:
81.4(1) reviewing "Minnesota Adult Secondary Credential: a Student Strategy for
81.5Workforce Readiness and Individual Prosperity," a report submitted in 2012 by the
81.6Minnesota Adult Secondary Task Force, and other relevant materials; and
81.7(2) developing specific criteria to be used in awarding the new adult diploma.
81.8    Subd. 4. First meeting. The commissioner of education must convene the first
81.9meeting of the task force by August 1, 2013.
81.10    Subd. 5. Chair. The commissioner shall appoint a chair.
81.11    Subd. 6. Assistance. The commissioner, upon request, must provide technical
81.12assistance to task force members.
81.13    Subd. 7. Report. By February 1, 2014, the task force must submit its
81.14recommendations to the commissioner of education for providing a standard adult high
81.15school diploma to persons who are not eligible for kindergarten through grade 12 services,
81.16who do not have a high school diploma, and who successfully complete an approved adult
81.17basic education program of instruction necessary to earn an adult high school diploma.
81.18The commissioner must consider these recommendations when adopting rules under
81.19Minnesota Statutes, section 124D.52, subdivision 8.
81.20    Subd. 8. Sunset. The task force sunsets the day after submitting its report under
81.21subdivision 7, or February 2, 2014, whichever is earlier.
81.22EFFECTIVE DATE.This section is effective the day following final enactment.

81.23    Sec. 20. APPROPRIATIONS.
81.24    Subdivision 1. Minnesota Department of Education. The sums indicated in this
81.25section are appropriated from the general fund to the Department of Education for the
81.26fiscal years designated.
81.27    Subd. 2. Statewide testing and reporting system. For the statewide testing and
81.28reporting system under Minnesota Statutes, section 120B.30:
81.29
$
15,955,000
.....
2014
81.30
$
21,001,000
.....
2015
81.31Any balance in the first year does not cancel but is available in the second year.
82.1    Subd. 3. Educational planning and assessment system (EPAS) program. For
82.2the educational planning and assessment system program under Minnesota Statutes,
82.3section 120B.128:
82.4
$
829,000
.....
2014
82.5
$
0
.....
2015
82.6Any balance in the first year does not cancel but is available in the second year.

82.7    Sec. 21. REVISOR'S INSTRUCTION.
82.8The revisor of statutes shall renumber Minnesota Statutes, section 120B.023,
82.9subdivision 2, as Minnesota Statutes, section 120B.021, subdivision 4. The revisor shall
82.10make necessary cross-reference changes consistent with the renumbering.

82.11    Sec. 22. REPEALER.
82.12(a) Minnesota Rules, parts 3501.0505; 3501.0510; 3501.0515; 3501.0520;
82.133501.0525; 3501.0530; 3501.0535; 3501.0540; 3501.0545; and 3501.0550, are repealed.
82.14(b) Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4,
82.155, 6, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090;
82.163501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160;
82.173501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240;
82.183501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020;
82.193501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140;
82.203501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, are repealed.
82.21EFFECTIVE DATE.This section is effective the day following final enactment.

82.22
ARTICLE 3
82.23EDUCATION EXCELLENCE

82.24    Section 1. Minnesota Statutes 2012, section 120A.22, subdivision 5, is amended to read:
82.25    Subd. 5. Ages and terms. (a) Every child between seven and 16 17 years of age must
82.26receive instruction unless the child has graduated. Every child under the age of seven who
82.27is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days,
82.28or other kindergarten programs shall receive instruction. Except as provided in subdivision
82.296, a parent may withdraw a child under the age of seven from enrollment at any time.
82.30(b) A school district by annual board action may require children subject to this
82.31subdivision to receive instruction in summer school. A district that acts to require children
82.32to receive instruction in summer school shall establish at the time of its action the criteria
82.33for determining which children must receive instruction.
83.1(c) A pupil 16 years of age or older who meets the criteria of section 124D.68,
83.2subdivision 2, may be assigned to an area learning center. Such assignment may be made
83.3only after consultation with the principal, area learning center director, and parent or
83.4guardian.
83.5EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
83.6later.

83.7    Sec. 2. Minnesota Statutes 2012, section 120A.22, subdivision 8, is amended to read:
83.8    Subd. 8. Withdrawal from school. Any student between 16 and 18 who is 17 years
83.9old who seeks to withdraw from school, and the student's parent or guardian must:
83.10(1) attend a meeting with school personnel to discuss the educational opportunities
83.11available to the student, including alternative educational opportunities; and
83.12(2) sign a written election to withdraw from school.

83.13    Sec. 3. Minnesota Statutes 2012, section 120A.22, subdivision 11, is amended to read:
83.14    Subd. 11. Assessment of performance. (a) Each year the performance of every
83.15child ages seven through 16 and every child ages 16 through 17 for which an initial
83.16report was filed pursuant to section 120A.24, subdivision 1, after the child is 16 and who
83.17is not enrolled in a public school must be assessed using a nationally norm-referenced
83.18standardized achievement examination. The superintendent of the district in which the
83.19child receives instruction and the person in charge of the child's instruction must agree about
83.20the specific examination to be used and the administration and location of the examination.
83.21(b) To the extent the examination in paragraph (a) does not provide assessment in
83.22all of the subject areas in subdivision 9, the parent must assess the child's performance
83.23in the applicable subject area. This requirement applies only to a parent who provides
83.24instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
83.25(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
83.26child's performance on the total battery score is at or below the 30th percentile or one
83.27grade level below the performance level for children of the same age, the parent must
83.28obtain additional evaluation of the child's abilities and performance for the purpose of
83.29determining whether the child has learning problems.
83.30(d) A child receiving instruction from a nonpublic school, person, or institution that
83.31is accredited by an accrediting agency, recognized according to section 123B.445, or
83.32recognized by the commissioner, is exempt from the requirements of this subdivision.
84.1EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
84.2later.

84.3    Sec. 4. Minnesota Statutes 2012, section 120A.22, subdivision 12, is amended to read:
84.4    Subd. 12. Legitimate exemptions. (a) A parent, guardian, or other person
84.5having control of a child may apply to a school district to have the child excused from
84.6attendance for the whole or any part of the time school is in session during any school
84.7year. Application may be made to any member of the board, a truant officer, a principal,
84.8or the superintendent. The school district may state in its school attendance policy that
84.9it may ask the student's parent or legal guardian to verify in writing the reason for
84.10the child's absence from school. A note from a physician or a licensed mental health
84.11professional stating that the child cannot attend school is a valid excuse. The board of the
84.12district in which the child resides may approve the application upon the following being
84.13demonstrated to the satisfaction of that board:
84.14(1) that the child's physical or mental health is such as to prevent attendance at
84.15school or application to study for the period required, which includes:
84.16(i) child illness, medical, dental, orthodontic, or counseling appointments;
84.17(ii) family emergencies;
84.18(iii) the death or serious illness or funeral of an immediate family member;
84.19(iv) active duty in any military branch of the United States;
84.20(v) the child has a condition that requires ongoing treatment for a mental health
84.21diagnosis; or
84.22(vi) other exemptions included in the district's school attendance policy;
84.23(2) that the child has already completed state and district standards required for
84.24graduation from high school; or
84.25(3) that it is the wish of the parent, guardian, or other person having control of the
84.26child, that the child attend for a period or periods not exceeding in the aggregate three
84.27hours in any week, a school for religious instruction conducted and maintained by some
84.28church, or association of churches, or any Sunday school association incorporated under
84.29the laws of this state, or any auxiliary thereof. This school for religious instruction must
84.30be conducted and maintained in a place other than a public school building, and it must
84.31not, in whole or in part, be conducted and maintained at public expense. However, a child
84.32may be absent from school on such days as the child attends upon instruction according to
84.33the ordinances of some church.
84.34(b) Notwithstanding subdivision 6, paragraph (a), a parent may withdraw a child
84.35from an all-day, every-day kindergarten program and put their child in a half-day program,
85.1if offered, or an alternate-day program without being truant. A school board must excuse a
85.2kindergarten child from a part of a school day at the request of the child's parent.

85.3    Sec. 5. Minnesota Statutes 2012, section 120A.24, subdivision 1, is amended to read:
85.4    Subdivision 1. Reports to superintendent. (a) The person or nonpublic school in
85.5charge of providing instruction to a child must submit to the superintendent of the district
85.6in which the child resides the name, birth date, and address of the child; the annual tests
85.7intended to be used under section 120A.22, subdivision 11, if required; the name of each
85.8instructor; and evidence of compliance with one of the requirements specified in section
85.9120A.22, subdivision 10 :
85.10(1) by October 1 of the first school year the child receives instruction after reaching
85.11the age of seven;
85.12(2) within 15 days of when a parent withdraws a child from public school after
85.13age seven to provide instruction in a nonpublic school that is not accredited by a
85.14state-recognized accredited agency;
85.15(3) within 15 days of moving out of a district; and
85.16(4) by October 1 after a new resident district is established.
85.17(b) The person or nonpublic school in charge of providing instruction to a child
85.18between the ages of seven and 16 and every child ages 16 through 17 for which an
85.19initial report was filed pursuant to this subdivision after the child is 16 must submit, by
85.20October 1 of each school year, a letter of intent to continue to provide instruction under
85.21this section for all students under the person's or school's supervision and any changes to
85.22the information required in paragraph (a) for each student.
85.23(c) The superintendent may collect the required information under this section
85.24through an electronic or Web-based format, but must not require electronic submission of
85.25information under this section from the person in charge of reporting under this subdivision.
85.26EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
85.27later.

85.28    Sec. 6. Minnesota Statutes 2012, section 121A.22, subdivision 2, is amended to read:
85.29    Subd. 2. Exclusions. In addition, this section does not apply to drugs or medicine
85.30that are:
85.31(1) purchased without a prescription;
85.32(2) used by a pupil who is 18 years old or older;
85.33(3) used in connection with services for which a minor may give effective consent,
85.34including section 144.343, subdivision 1, and any other law;
86.1(4) used in situations in which, in the judgment of the school personnel who are
86.2present or available, the risk to the pupil's life or health is of such a nature that drugs or
86.3medicine should be given without delay;
86.4(5) used off the school grounds;
86.5(6) used in connection with athletics or extra curricular activities;
86.6(7) used in connection with activities that occur before or after the regular school day;
86.7(8) provided or administered by a public health agency to prevent or control an
86.8illness or a disease outbreak as provided for in sections 144.05 and 144.12;
86.9(9) prescription asthma or reactive airway disease medications self-administered by
86.10a pupil with an asthma inhaler if the district has received a written authorization from the
86.11pupil's parent permitting the pupil to self-administer the medication, the inhaler is properly
86.12labeled for that student, and the parent has not requested school personnel to administer
86.13the medication to the pupil. The parent must submit written authorization for the pupil to
86.14self-administer the medication each school year; or
86.15(10) prescription nonsyringe injectors of epinephrine auto-injectors, consistent with
86.16section 121A.2205, if the parent and prescribing medical professional annually inform
86.17the pupil's school in writing that (i) the pupil may possess the epinephrine or (ii) the
86.18pupil is unable to possess the epinephrine and requires immediate access to nonsyringe
86.19injectors of epinephrine auto-injectors that the parent provides properly labeled to the
86.20school for the pupil as needed.

86.21    Sec. 7. Minnesota Statutes 2012, section 121A.2205, is amended to read:
86.22121A.2205 POSSESSION AND USE OF NONSYRINGE INJECTORS OF
86.23 EPINEPHRINE AUTO-INJECTORS; MODEL POLICY.
86.24    Subdivision 1. Definitions. As used in this section:
86.25(1) "administer" means the direct application of an epinephrine auto-injector to
86.26the body of an individual;
86.27(2) "epinephrine auto-injector" means a device that automatically injects a
86.28premeasured dose of epinephrine; and
86.29(3) "school" means a public school under section 120A.22, subdivision 4, or a
86.30nonpublic school, excluding a home school, under section 120A.22, subdivision 4, that
86.31is subject to the federal Americans with Disabilities Act.
86.32    Subd. 2. Plan for use of epinephrine auto-injectors. (a) At the start of each school
86.33year or at the time a student enrolls in school, whichever is first, a student's parent, school
86.34staff, including those responsible for student health care, and the prescribing medical
86.35professional must develop and implement an individualized written health plan for a
87.1student who is prescribed nonsyringe injectors of epinephrine auto-injectors that enables
87.2the student to:
87.3(1) possess nonsyringe injectors of epinephrine auto-injectors; or
87.4(2) if the parent and prescribing medical professional determine the student is unable
87.5to possess the epinephrine, have immediate access to nonsyringe injectors of epinephrine
87.6auto-injectors in close proximity to the student at all times during the instructional day.
87.7The plan must designate the school staff responsible for implementing the student's
87.8health plan, including recognizing anaphylaxis and administering nonsyringe injectors of
87.9 epinephrine auto-injectors when required, consistent with section 121A.22, subdivision 2,
87.10clause (10). This health plan may be included in a student's 504 plan.
87.11(b) A school under this section is a public school under section 120A.22, subdivision
87.124
, or a nonpublic school, excluding a home school, under section 120A.22, subdivision 4,
87.13that is subject to the federal Americans with Disabilities Act. Other nonpublic schools are
87.14encouraged to develop and implement an individualized written health plan for students
87.15requiring nonsyringe injectors of epinephrine auto-injectors, consistent with this section
87.16and section 121A.22, subdivision 2, clause (10).
87.17(c) A school district and its agents and employees are immune from liability for
87.18any act or failure to act, made in good faith, in implementing this section and section
87.19121A.2207.
87.20(d) The education commissioner may develop and transmit to interested schools a
87.21model policy and individualized health plan form consistent with this section and federal
87.22504 plan requirements. The policy and form may:
87.23(1) assess a student's ability to safely possess nonsyringe injectors of epinephrine
87.24 auto-injectors;
87.25(2) identify staff training needs related to recognizing anaphylaxis and administering
87.26epinephrine when needed;
87.27(3) accommodate a student's need to possess or have immediate access to nonsyringe
87.28injectors of epinephrine auto-injectors in close proximity to the student at all times during
87.29the instructional day; and
87.30(4) ensure that the student's parent provides properly labeled nonsyringe injectors of
87.31epinephrine auto-injectors to the school for the student as needed.
87.32(e) Additional nonsyringe injectors of epinephrine auto-injectors may be available in
87.33school first aid kits.
87.34(f) The school board of the school district must define instructional day for the
87.35purposes of this section.

88.1    Sec. 8. [121A.2207] LIFE-THREATENING ALLERGIES IN SCHOOLS;
88.2STOCK SUPPLY OF EPINEPHRINE AUTO-INJECTORS.
88.3    Subdivision 1. Districts and schools permitted to maintain supply.
88.4Notwithstanding section 151.37, districts and schools may obtain and possess epinephrine
88.5auto-injectors to be maintained and administered by school personnel to a student or
88.6other individual if, in good faith, it is determined that person is experiencing anaphylaxis
88.7regardless of whether the student or other individual has a prescription for an epinephrine
88.8auto-injector. The administration of an epinephrine auto-injector in accordance with
88.9this section is not the practice of medicine.
88.10    Subd. 2. Arrangements with manufacturers. A district or school may enter into
88.11arrangements with manufacturers of epinephrine auto-injectors to obtain epinephrine
88.12auto-injectors at fair-market, free, or reduced prices. A third party, other than a
88.13manufacturer or supplier, may pay for a school's supply of epinephrine auto-injectors.

88.14    Sec. 9. Minnesota Statutes 2012, section 121A.39, is amended to read:
88.15121A.39 SCHOOL COUNSELORS.
88.16(a) A school district is strongly encouraged to have an adequate student-to-counselor
88.17ratio for its students beginning in the 2015-2016 school year and later.
88.18(b) A school counselor shall assist a student in meeting the requirements for high
88.19school graduation, college and career exploration, and selection, college affordability
88.20planning, and successful transitions into postsecondary education or training.

88.21    Sec. 10. Minnesota Statutes 2012, section 122A.09, subdivision 4, is amended to read:
88.22    Subd. 4. License and rules. (a) The board must adopt rules to license public school
88.23teachers and interns subject to chapter 14.
88.24(b) The board must adopt rules requiring a person to pass a skills examination in
88.25reading, writing, and mathematics as a requirement for initial teacher licensure, except
88.26that the board may issue up to two additional temporary, one-year teaching licenses to an
88.27otherwise qualified candidate who has not yet passed the skills exam. Such rules must
88.28require college and universities offering a board-approved teacher preparation program to
88.29provide remedial assistance to persons who did not achieve a qualifying score on the skills
88.30examination, including those for whom English is a second language.
88.31(c) The board must adopt rules to approve teacher preparation programs. The board,
88.32upon the request of a postsecondary student preparing for teacher licensure or a licensed
88.33graduate of a teacher preparation program, shall assist in resolving a dispute between the
88.34person and a postsecondary institution providing a teacher preparation program when the
89.1dispute involves an institution's recommendation for licensure affecting the person or the
89.2person's credentials. At the board's discretion, assistance may include the application
89.3of chapter 14.
89.4(d) The board must provide the leadership and adopt rules for the redesign of teacher
89.5education programs to implement a research based, results-oriented curriculum that
89.6focuses on the skills teachers need in order to be effective. The board shall implement new
89.7systems of teacher preparation program evaluation to assure program effectiveness based
89.8on proficiency of graduates in demonstrating attainment of program outcomes. Teacher
89.9preparation programs including alternative teacher preparation programs under section
89.10122A.245 , among other programs, must include a content-specific, board-approved,
89.11performance-based assessment that measures teacher candidates in three areas: planning
89.12for instruction and assessment; engaging students and supporting learning; and assessing
89.13student learning.
89.14(e) The board must adopt rules requiring candidates for initial licenses to pass an
89.15examination of general pedagogical knowledge and examinations of licensure-specific
89.16teaching skills. The rules shall be effective by September 1, 2001. The rules under this
89.17paragraph also must require candidates for initial licenses to teach prekindergarten or
89.18elementary students to pass, as part of the examination of licensure-specific teaching
89.19skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive,
89.20scientifically based reading instruction under section 122A.06, subdivision 4, and their
89.21knowledge and understanding of the foundations of reading development, the development
89.22of reading comprehension, and reading assessment and instruction, and their ability to
89.23integrate that knowledge and understanding.
89.24(f) The board must adopt rules requiring teacher educators to work directly with
89.25elementary or secondary school teachers in elementary or secondary schools to obtain
89.26periodic exposure to the elementary or secondary teaching environment.
89.27(g) The board must grant licenses to interns and to candidates for initial licenses
89.28based on appropriate professional competencies that are aligned with the board's licensing
89.29system and students' diverse learning needs. The board must include these licenses in a
89.30statewide differentiated licensing system that creates new leadership roles for successful
89.31experienced teachers premised on a collaborative professional culture dedicated to meeting
89.32students' diverse learning needs in the 21st century and formalizes mentoring and induction
89.33for newly licensed teachers that is provided through a teacher support framework.
89.34(h) The board must design and implement an assessment system which requires a
89.35candidate for an initial license and first continuing license to demonstrate the abilities
89.36necessary to perform selected, representative teaching tasks at appropriate levels.
90.1(i) The board must receive recommendations from local committees as established
90.2by the board for the renewal of teaching licenses.
90.3(j) The board must grant life licenses to those who qualify according to requirements
90.4established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
90.5214.10 . The board must not establish any expiration date for application for life licenses.
90.6(k) The board must adopt rules that require all licensed teachers who are renewing
90.7their continuing license to include in their renewal requirements further preparation in
90.8the areas of using positive behavior interventions and in accommodating, modifying, and
90.9adapting curricula, materials, and strategies to appropriately meet the needs of individual
90.10students and ensure adequate progress toward the state's graduation rule.
90.11(l) In adopting rules to license public school teachers who provide health-related
90.12services for disabled children, the board shall adopt rules consistent with license or
90.13registration requirements of the commissioner of health and the health-related boards who
90.14license personnel who perform similar services outside of the school.
90.15(m) The board must adopt rules that require all licensed teachers who are renewing
90.16their continuing license to include in their renewal requirements further reading
90.17preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
90.18until they are approved by law. Teachers who do not provide direct instruction including, at
90.19least, counselors, school psychologists, school nurses, school social workers, audiovisual
90.20directors and coordinators, and recreation personnel are exempt from this section.
90.21(n) The board must adopt rules that require all licensed teachers who are renewing
90.22their continuing license to include in their renewal requirements further preparation,
90.23first, in understanding the key warning signs of early-onset mental illness in children
90.24and adolescents and then, during subsequent licensure renewal periods, preparation may
90.25include providing a more in-depth understanding of students' mental illness trauma,
90.26accommodations for students' mental illness, parents' role in addressing students' mental
90.27illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942
90.28governing restrictive procedures, and de-escalation methods, among other similar topics.
90.29EFFECTIVE DATE.Paragraph (b) is effective the day following final enactment.
90.30Paragraph (n) is effective August 1, 2014.

90.31    Sec. 11. Minnesota Statutes 2012, section 122A.18, subdivision 2, is amended to read:
90.32    Subd. 2. Teacher and support personnel qualifications. (a) The Board of
90.33Teaching must issue licenses under its jurisdiction to persons the board finds to be
90.34qualified and competent for their respective positions.
91.1(b) The board must require a person to pass an examination of skills in reading,
91.2writing, and mathematics before being granted an initial teaching license to provide direct
91.3instruction to pupils in prekindergarten, elementary, secondary, or special education
91.4programs, except that the board may issue up to two additional temporary, one-year
91.5teaching licenses to an otherwise qualified candidate who has not yet passed the skills
91.6exam. The board must require colleges and universities offering a board approved teacher
91.7preparation program to provide make available upon request remedial assistance that
91.8includes a formal diagnostic component to persons enrolled in their institution who did
91.9not achieve a qualifying score on the skills examination, including those for whom
91.10English is a second language. The colleges and universities must provide make available
91.11 assistance in the specific academic areas of deficiency in which the person did not achieve
91.12a qualifying score. School districts may make available upon request similar, appropriate,
91.13and timely remedial assistance that includes a formal diagnostic component to those
91.14persons employed by the district who completed their teacher education program, who did
91.15not achieve a qualifying score on the skills examination, including those persons for whom
91.16English is a second language and persons under section 122A.23, subdivision 2, paragraph
91.17(h), who completed their teacher's education program outside the state of Minnesota,
91.18and who received a temporary license to teach in Minnesota. The Board of Teaching
91.19shall report annually to the education committees of the legislature on the total number
91.20of teacher candidates during the most recent school year taking the skills examination,
91.21the number who achieve a qualifying score on the examination, the number who do not
91.22achieve a qualifying score on the examination, the distribution of all candidates' scores,
91.23the number of candidates who have taken the examination at least once before, and the
91.24number of candidates who have taken the examination at least once before and achieve
91.25a qualifying score.
91.26(c) The Board of Teaching must grant continuing licenses only to those persons who
91.27have met board criteria for granting a continuing license, which includes passing the
91.28skills examination in reading, writing, and mathematics consistent with paragraph (b) and
91.29section 122A.09, subdivision 4, paragraph (b).
91.30(d) All colleges and universities approved by the board of teaching to prepare
91.31persons for teacher licensure must include in their teacher preparation programs a common
91.32core of teaching knowledge and skills to be acquired by all persons recommended
91.33for teacher licensure. This common core shall meet the standards developed by the
91.34interstate new teacher assessment and support consortium in its 1992 "model standards for
91.35beginning teacher licensing and development." Amendments to standards adopted under
91.36this paragraph are covered by chapter 14. The board of teaching shall report annually to
92.1the education committees of the legislature on the performance of teacher candidates
92.2on common core assessments of knowledge and skills under this paragraph during the
92.3most recent school year.
92.4EFFECTIVE DATE.This section is effective the day following final enactment.

92.5    Sec. 12. Minnesota Statutes 2012, section 122A.23, subdivision 2, is amended to read:
92.6    Subd. 2. Applicants licensed in other states. (a) Subject to the requirements of
92.7sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a teaching
92.8license or a temporary teaching license under paragraphs (b) to (e) to an applicant who holds
92.9at least a baccalaureate degree from a regionally accredited college or university and holds
92.10or held a similar out-of-state teaching license that requires the applicant to successfully
92.11complete a teacher preparation program approved by the issuing state, which includes
92.12field-specific teaching methods and student teaching or essentially equivalent experience.
92.13(b) The Board of Teaching must issue a teaching license to an applicant who:
92.14(1) successfully completed all exams and human relations preparation components
92.15required by the Board of Teaching; and
92.16(2) holds or held an out-of-state teaching license to teach the same content field and
92.17grade levels if the scope of the out-of-state license is no more than one grade level less
92.18than a similar Minnesota license.
92.19(c) The Board of Teaching, consistent with board rules and paragraph (h), must
92.20issue up to three one-year temporary teaching licenses to an applicant who holds or held
92.21an out-of-state teaching license to teach the same content field and grade levels, where
92.22the scope of the out-of-state license is no more than one grade level less than a similar
92.23Minnesota license, but has not successfully completed all exams and human relations
92.24preparation components required by the Board of Teaching.
92.25(d) The Board of Teaching, consistent with board rules, must issue up to three
92.26one-year temporary teaching licenses to an applicant who:
92.27(1) successfully completed all exams and human relations preparation components
92.28required by the Board of Teaching; and
92.29(2) holds or held an out-of-state teaching license to teach the same content field
92.30and grade levels, where the scope of the out-of-state license is no more than one grade
92.31level less than a similar Minnesota license, but has not completed field-specific teaching
92.32methods or student teaching or equivalent experience.
92.33The applicant may complete field-specific teaching methods and student teaching
92.34or equivalent experience by successfully participating in a one-year school district
93.1mentorship program consistent with board-adopted standards of effective practice and
93.2Minnesota graduation requirements.
93.3(e) The Board of Teaching must issue a temporary teaching license for a term of
93.4up to three years only in the content field or grade levels specified in the out-of-state
93.5license to an applicant who:
93.6(1) successfully completed all exams and human relations preparation components
93.7required by the Board of Teaching; and
93.8(2) holds or held an out-of-state teaching license where the out-of-state license is
93.9more limited in the content field or grade levels than a similar Minnesota license.
93.10(f) The Board of Teaching must not issue to an applicant more than three one-year
93.11temporary teaching licenses under this subdivision.
93.12(g) The Board of Teaching must not issue a license under this subdivision if the
93.13applicant has not attained the additional degrees, credentials, or licenses required in a
93.14particular licensure field.
93.15(h) The Board of Teaching must require an applicant for a teaching license or
93.16a temporary teaching license under this subdivision to pass a skills examination in
93.17reading, writing, and mathematics before the board issues the license. Consistent with
93.18section 122A.18, subdivision 2, paragraph (b), and notwithstanding other provisions of
93.19this subdivision, the board may issue up to two additional temporary, one-year teaching
93.20licenses to an otherwise qualified applicant who has not yet passed the skills exam.
93.21EFFECTIVE DATE.This section is effective the day following final enactment.

93.22    Sec. 13. Minnesota Statutes 2012, section 122A.28, subdivision 1, is amended to read:
93.23    Subdivision 1. K-12 license to teach deaf and hard-of-hearing students;
93.24relicensure. (a) The Board of Teaching must review and determine appropriate licensure
93.25requirements for a candidate for a license or an applicant for a continuing license to teach
93.26deaf and hard-of-hearing students in prekindergarten through grade 12. In addition to
93.27other requirements, a candidate must demonstrate the minimum level of proficiency in
93.28American sign language as determined by the board.
93.29(b) Among other relicensure requirements, each teacher under this section must
93.30complete 30 continuing education clock hours on hearing loss topics, including American
93.31Sign Language, American Sign Language linguistics, or deaf culture, in each licensure
93.32renewal period.
93.33EFFECTIVE DATE.This section is effective August 1, 2013.

94.1    Sec. 14. Minnesota Statutes 2012, section 122A.33, subdivision 3, is amended to read:
94.2    Subd. 3. Notice of nonrenewal; opportunity to respond. A school board that
94.3declines to renew the coaching contract of a licensed or nonlicensed head varsity coach
94.4must notify the coach within 14 days of that decision. If the coach requests reasons for not
94.5renewing the coaching contract, the board must give the coach its reasons in writing within
94.6ten days of receiving the request. The existence of parent complaints must not be the sole
94.7reason for a board not to renew a coaching contract. Upon request, the board must provide
94.8the coach with a reasonable opportunity to respond to the reasons at a board meeting. The
94.9hearing may be opened or closed at the election of the coach unless the board closes the
94.10meeting under section 13D.05, subdivision 2, to discuss private data.
94.11EFFECTIVE DATE.This section is effective the day following final enactment.

94.12    Sec. 15. Minnesota Statutes 2012, section 122A.40, subdivision 8, is amended to read:
94.13    Subd. 8. Development, evaluation, and peer coaching for continuing contract
94.14teachers. (a) To improve student learning and success, a school board and an exclusive
94.15representative of the teachers in the district, consistent with paragraph (b), may develop
94.16a teacher evaluation and peer review process for probationary and continuing contract
94.17teachers through joint agreement. If a school board and the exclusive representative of the
94.18teachers do not agree to an annual teacher evaluation and peer review process, then the
94.19school board and the exclusive representative of the teachers must implement the plan
94.20for evaluation and review under paragraph (c). The process must include having trained
94.21observers serve as peer coaches or having teachers participate in professional learning
94.22communities, consistent with paragraph (b).
94.23(b) To develop, improve, and support qualified teachers and effective teaching
94.24practices and improve student learning and success, the annual evaluation process for
94.25teachers:
94.26(1) must, for probationary teachers, provide for all evaluations required under
94.27subdivision 5;
94.28(2) must establish a three-year professional review cycle for each teacher that
94.29includes an individual growth and development plan, a peer review process, the
94.30opportunity to participate in a professional learning community under paragraph (a), and
94.31at least one summative evaluation performed by a qualified and trained evaluator such as a
94.32school administrator. For the years when a tenured teacher is not evaluated by a qualified
94.33and trained evaluator, the teacher must be evaluated by a peer review;
94.34(3) must be based on professional teaching standards established in rule;
95.1(4) must coordinate staff development activities under sections 122A.60 and
95.2122A.61 with this evaluation process and teachers' evaluation outcomes;
95.3(5) may provide time during the school day and school year for peer coaching and
95.4teacher collaboration;
95.5(6) may include mentoring and induction programs;
95.6(7) must include an option for teachers to develop and present a portfolio
95.7demonstrating evidence of reflection and professional growth, consistent with section
95.8122A.18, subdivision 4 , paragraph (b), and include teachers' own performance assessment
95.9based on student work samples and examples of teachers' work, which may include video
95.10among other activities for the summative evaluation;
95.11(8) must use an agreed upon teacher value-added assessment model for the grade
95.12levels and subject areas for which value-added data are available and establish state or local
95.13measures of student growth for the grade levels and subject areas for which value-added
95.14data are not available as a basis for 35 percent of teacher evaluation results must use data
95.15from valid and reliable assessments aligned to state and local academic standards and must
95.16use state and local measures of student growth that may include value-added models or
95.17student learning goals to determine 35 percent of teacher evaluation results;
95.18(9) must use longitudinal data on student engagement and connection, and other
95.19student outcome measures explicitly aligned with the elements of curriculum for which
95.20teachers are responsible;
95.21(10) must require qualified and trained evaluators such as school administrators to
95.22perform summative evaluations;
95.23(11) must give teachers not meeting professional teaching standards under clauses
95.24(3) through (10) support to improve through a teacher improvement process that includes
95.25established goals and timelines; and
95.26(12) must discipline a teacher for not making adequate progress in the teacher
95.27improvement process under clause (11) that may include a last chance warning,
95.28termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
95.29other discipline a school administrator determines is appropriate.
95.30Data on individual teachers generated under this subdivision are personnel data
95.31under section 13.43.
95.32(c) The department, in consultation with parents who may represent parent
95.33organizations and teacher and administrator representatives appointed by their respective
95.34organizations, representing the Board of Teaching, the Minnesota Association of School
95.35Administrators, the Minnesota School Boards Association, the Minnesota Elementary
95.36and Secondary Principals Associations, Education Minnesota, and representatives of
96.1the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
96.2Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
96.3in teacher evaluation, must create and publish a teacher evaluation process that complies
96.4with the requirements in paragraph (b) and applies to all teachers under this section and
96.5section 122A.41 for whom no agreement exists under paragraph (a) for an annual teacher
96.6evaluation and peer review process. The teacher evaluation process created under this
96.7subdivision does not create additional due process rights for probationary teachers under
96.8subdivision 5.
96.9EFFECTIVE DATE.This section is effective the day following final enactment.

96.10    Sec. 16. Minnesota Statutes 2012, section 122A.41, subdivision 5, is amended to read:
96.11    Subd. 5. Development, evaluation, and peer coaching for continuing contract
96.12teachers. (a) To improve student learning and success, a school board and an exclusive
96.13representative of the teachers in the district, consistent with paragraph (b), may develop an
96.14annual teacher evaluation and peer review process for probationary and nonprobationary
96.15teachers through joint agreement. If a school board and the exclusive representative of
96.16the teachers in the district do not agree to an annual teacher evaluation and peer review
96.17process, then the school board and the exclusive representative of the teachers must
96.18implement the plan for evaluation and review developed under paragraph (c). The process
96.19must include having trained observers serve as peer coaches or having teachers participate
96.20in professional learning communities, consistent with paragraph (b).
96.21(b) To develop, improve, and support qualified teachers and effective teaching
96.22practices and improve student learning and success, the annual evaluation process for
96.23teachers:
96.24(1) must, for probationary teachers, provide for all evaluations required under
96.25subdivision 2;
96.26(2) must establish a three-year professional review cycle for each teacher that
96.27includes an individual growth and development plan, a peer review process, the
96.28opportunity to participate in a professional learning community under paragraph (a), and
96.29at least one summative evaluation performed by a qualified and trained evaluator such
96.30as a school administrator;
96.31(3) must be based on professional teaching standards established in rule;
96.32(4) must coordinate staff development activities under sections 122A.60 and
96.33122A.61 with this evaluation process and teachers' evaluation outcomes;
96.34(5) may provide time during the school day and school year for peer coaching and
96.35teacher collaboration;
97.1(6) may include mentoring and induction programs;
97.2(7) must include an option for teachers to develop and present a portfolio
97.3demonstrating evidence of reflection and professional growth, consistent with section
97.4122A.18, subdivision 4 , paragraph (b), and include teachers' own performance assessment
97.5based on student work samples and examples of teachers' work, which may include video
97.6among other activities for the summative evaluation;
97.7(8) must use an agreed upon teacher value-added assessment model for the grade
97.8levels and subject areas for which value-added data are available and establish state or local
97.9measures of student growth for the grade levels and subject areas for which value-added
97.10data are not available as a basis for 35 percent of teacher evaluation results must use data
97.11from valid and reliable assessments aligned to state and local academic standards and must
97.12use state and local measures of student growth that may include value-added models or
97.13student learning goals to determine 35 percent of teacher evaluation results;
97.14(9) must use longitudinal data on student engagement and connection and other
97.15student outcome measures explicitly aligned with the elements of curriculum for which
97.16teachers are responsible;
97.17(10) must require qualified and trained evaluators such as school administrators to
97.18perform summative evaluations;
97.19(11) must give teachers not meeting professional teaching standards under clauses
97.20(3) through (10) support to improve through a teacher improvement process that includes
97.21established goals and timelines; and
97.22(12) must discipline a teacher for not making adequate progress in the teacher
97.23improvement process under clause (11) that may include a last chance warning,
97.24termination, discharge, nonrenewal, transfer to a different position, a leave of absence, or
97.25other discipline a school administrator determines is appropriate.
97.26Data on individual teachers generated under this subdivision are personnel data
97.27under section 13.43.
97.28(c) The department, in consultation with parents who may represent parent
97.29organizations and teacher and administrator representatives appointed by their respective
97.30organizations, representing the Board of Teaching, the Minnesota Association of School
97.31Administrators, the Minnesota School Boards Association, the Minnesota Elementary
97.32and Secondary Principals Associations, Education Minnesota, and representatives of
97.33the Minnesota Assessment Group, the Minnesota Business Partnership, the Minnesota
97.34Chamber of Commerce, and Minnesota postsecondary institutions with research expertise
97.35in teacher evaluation, must create and publish a teacher evaluation process that complies
97.36with the requirements in paragraph (b) and applies to all teachers under this section and
98.1section 122A.40 for whom no agreement exists under paragraph (a) for an annual teacher
98.2evaluation and peer review process. The teacher evaluation process created under this
98.3subdivision does not create additional due process rights for probationary teachers under
98.4subdivision 2.
98.5EFFECTIVE DATE.This section is effective the day following final enactment.

98.6    Sec. 17. Minnesota Statutes 2012, section 122A.415, is amended by adding a
98.7subdivision to read:
98.8    Subd. 4. Basic alternative teacher compensation aid. (a) For fiscal year 2015
98.9and later, the basic alternative teacher compensation aid for a school with a plan approved
98.10under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher
98.11compensation revenue under subdivision 1. The basic alternative teacher compensation
98.12aid for an intermediate school district or charter school with a plan approved under section
98.13122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
98.14the number of pupils enrolled in the school on October 1 of the previous year, or on
98.15October 1 of the current year for a charter school in the first year of operation, times
98.16the ratio of the sum of the alternative teacher compensation aid and alternative teacher
98.17compensation levy for all participating school districts to the maximum alternative teacher
98.18compensation revenue for those districts under subdivision 1.
98.19(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
98.20teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2015
98.21and later. The commissioner must limit the amount of alternative teacher compensation
98.22aid approved under this section so as not to exceed these limits.
98.23EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
98.24later.

98.25    Sec. 18. Minnesota Statutes 2012, section 122A.415, is amended by adding a
98.26subdivision to read:
98.27    Subd. 5. Alternative teacher compensation levy. For fiscal year 2015 and later,
98.28the alternative teacher compensation levy for a district receiving basic alternative teacher
98.29compensation aid equals the product of (1) the difference between the district's alternative
98.30teacher compensation revenue and the district's basic alternative teacher compensation
98.31aid, times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per
98.32adjusted pupil unit to $6,100.
99.1EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
99.2later.

99.3    Sec. 19. Minnesota Statutes 2012, section 122A.415, is amended by adding a
99.4subdivision to read:
99.5    Subd. 6. Alternative teacher compensation equalization aid. (a) For fiscal year
99.62015 and later, a district's alternative teacher compensation equalization aid equals the
99.7district's alternative teacher compensation revenue minus the district's basic alternative
99.8teacher compensation aid minus the district's alternative teacher compensation levy. If a
99.9district does not levy the entire amount permitted, the alternative teacher compensation
99.10equalization aid must be reduced in proportion to the actual amount levied.
99.11(b) A district's alternative teacher compensation aid equals the sum of the
99.12district's basic alternative teacher compensation aid and the district's alternative teacher
99.13compensation equalization aid.
99.14EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
99.15later.

99.16    Sec. 20. Minnesota Statutes 2012, section 122A.61, subdivision 1, is amended to read:
99.17    Subdivision 1. Staff development revenue. A district is required to reserve
99.18an amount equal to at least two percent of the basic revenue under section 126C.10,
99.19subdivision 2
, for in-service education for programs under section 120B.22, subdivision 2,
99.20for staff development plans, including plans for challenging instructional activities and
99.21experiences under section 122A.60, and for curriculum development and programs, other
99.22in-service education, teachers' evaluation, teachers' workshops, teacher conferences, the
99.23cost of substitute teachers staff development purposes, preservice and in-service education
99.24for special education professionals and paraprofessionals, and other related costs for
99.25staff development efforts. A district may annually waive the requirement to reserve their
99.26basic revenue under this section if a majority vote of the licensed teachers in the district
99.27and a majority vote of the school board agree to a resolution to waive the requirement.
99.28A district in statutory operating debt is exempt from reserving basic revenue according
99.29to this section. Districts may expend an additional amount of unreserved revenue for
99.30staff development based on their needs.
99.31EFFECTIVE DATE.This section is effective July 1, 2013.

99.32    Sec. 21. Minnesota Statutes 2012, section 124D.03, subdivision 12, is amended to read:
100.1    Subd. 12. Termination of enrollment. A district may terminate the enrollment
100.2of a nonresident student enrolled under this section or section 124D.08 at the end of a
100.3school year if the student meets the definition of a habitual truant under section 260C.007,
100.4subdivision 19
, the student has been provided appropriate services under chapter 260A,
100.5and the student's case has been referred to juvenile court. A district may also terminate the
100.6enrollment of a nonresident student over the age of 16 17 enrolled under this section if the
100.7student is absent without lawful excuse for one or more periods on 15 school days and has
100.8not lawfully withdrawn from school under section 120A.22, subdivision 8.
100.9EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
100.10later.

100.11    Sec. 22. Minnesota Statutes 2012, section 124D.095, subdivision 10, is amended to
100.12read:
100.13    Subd. 10. Online and Digital Learning Advisory Council. (a) An Online and
100.14Digital Learning Advisory Council is established. The term for each council member shall
100.15be three years. The advisory council is composed of 12 14 members from throughout the
100.16state who have demonstrated experience with or interest in online learning. Two members
100.17of the council must represent technology business. The remaining membership must
100.18represent the following interests:
100.19(1) superintendents;
100.20(2) special education specialists;
100.21(3) technology directors;
100.22(4) teachers;
100.23(5) rural, urban, and suburban school districts;
100.24(6) supplemental programs;
100.25(7) full-time programs;
100.26(8) consortia;
100.27(9) charter schools;
100.28(10) Board of Teaching-approved teacher preparation programs; and
100.29(11) parents.
100.30The members of the council shall be appointed by the commissioner.
100.31(b) The advisory council shall bring to the attention of the commissioner and the
100.32legislature any matters related to online and digital learning and. The advisory council
100.33shall provide input to the department and the legislature in online learning matters related,
100.34but not restricted, to:
100.35(1) quality assurance;
101.1(2) teacher qualifications;
101.2(3) program approval;
101.3(4) special education;
101.4(5) attendance;
101.5(6) program design and requirements; and
101.6(7) fair and equal access to programs.
101.7(b) By June 30, 2013, (c) The Online Learning advisory council with the support of
101.8the Minnesota Department of Education and the Minnesota Learning Commons shall:
101.9(1) oversee the development and maintenance of a catalog of publicly available
101.10digital learning content currently aligned to Minnesota academic standards to include:
101.11(i) indexing of Minnesota academic standards with which curriculum is aligned;
101.12(ii) a method for student and teacher users to provide evaluative feedback; and
101.13(iii) a plan for ongoing maintenance; and
101.14(2) recommend methods for including student performance data on the digital
101.15learning content within the catalog.
101.16(d) The advisory council shall also consider and provide input to the department and
101.17legislature on digital learning matters including, but not limited to:
101.18(1) a review and approval process to ensure the quality of online learning providers
101.19based on teacher qualifications, support for special education services, definitions of
101.20student attendance, program design, and equal access;
101.21(2) effective use of technology and related instructional strategies to improve student
101.22outcomes and advance students' 21st century skills and knowledge;
101.23(3) measures to determine the impact of various forms of online and digital learning
101.24in and outside of the classroom;
101.25(4) resources to help parents, students, and schools choose among enrollment
101.26options in a transparent education system;
101.27(5) how to personalize or differentiate learning to meet the needs, abilities, and
101.28learning styles of each student and support students' ownership of their learning so that all
101.29students are digital learners and have access to high-quality digital curriculum in every
101.30class and grade level;
101.31(6) professional development in best practices to prepare current and future teachers,
101.32other education leaders, and other school staff to use and evaluate the effectiveness of
101.33digital tools and instructional strategies, provide personalized or differentiated instruction,
101.34and focus on competency-based learning and advancement so that all educators have a
101.35digital presence and use high-quality digital curriculum;
102.1(7) support for collaborative efforts to leverage resources for digital instructional
102.2content and curriculum; and
102.3(8) barriers to improving the use of classroom technology and methods to ensure that
102.4each student has access to a digital device and high-speed Internet at school and at home.
102.5(e) The advisory council shall make policy recommendations to the commissioner
102.6and committees of the legislature having jurisdiction over kindergarten through grade 12
102.7education annually by December 15 of each year, including implementation plans based
102.8on recommendations from previous councils and task forces related to online and digital
102.9learning.
102.10(c) (f) The Online and Digital Learning Advisory Council under this subdivision
102.11expires June 30, 2013 2016.
102.12EFFECTIVE DATE.This section is effective the day following final enactment.

102.13    Sec. 23. Minnesota Statutes 2012, section 124D.122, is amended to read:
102.14124D.122 ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.
102.15The board of any district or a consortium of districts, with the approval of the
102.16commissioner, may establish and operate a flexible learning year program in one or more of
102.17the day or residential facilities for children with a disability within the district. Consortiums
102.18may use a single application and evaluation process, though results, public hearings, and
102.19board approvals must be obtained for each district as required under appropriate sections.

102.20    Sec. 24. Minnesota Statutes 2012, section 124D.42, is amended to read:
102.21124D.42 READING AND MATH CORPS.
102.22    Subd. 6. Program training. The commission must, within available resources:
102.23(1) orient each grantee organization in the nature, philosophy, and purpose of the
102.24program;
102.25(2) build an ethic of community service through general community service training;
102.26and
102.27(3) provide guidance on integrating programmatic-based measurement into program
102.28models.
102.29    Subd. 8. Minnesota reading corps program. (a) A Minnesota reading corps
102.30program is established to provide ServeMinnesota Innovation AmeriCorps members with
102.31a data-based problem-solving model of literacy instruction to use in helping to train local
102.32Head Start program providers, other prekindergarten program providers, and staff in
102.33schools with students in kindergarten through grade 3 to evaluate and teach early literacy
103.1skills, including comprehensive, scientifically based reading instruction under section
103.2122A.06, subdivision 4 , to children age 3 to grade 3.
103.3(b) Literacy programs under this subdivision must comply with the provisions
103.4governing literacy program goals and data use under section 119A.50, subdivision 3,
103.5paragraph (b).
103.6(c) The commission must submit a biennial report to the committees of the
103.7legislature with jurisdiction over kindergarten through grade 12 education that records and
103.8evaluates program data to determine the efficacy of the programs under this subdivision.
103.9    Subd. 9. Minnesota math corps program. (a) A Minnesota math corps program is
103.10established to give ServeMinnesota AmeriCorps members a data-based problem-solving
103.11model of mathematics instruction useful for providing elementary and middle school
103.12students and their teachers with instructional support to meet state academic standards in
103.13mathematics.
103.14(b) The commission must submit a biennial report to the committees of the
103.15legislature with jurisdiction over kindergarten through grade 12 education that records and
103.16evaluates program data to determine the efficacy of the programs under this subdivision.
103.17EFFECTIVE DATE.This section is effective July 1, 2013.

103.18    Sec. 25. Minnesota Statutes 2012, section 124D.65, subdivision 5, is amended to read:
103.19    Subd. 5. School district EL revenue. (a) A district's English learner programs
103.20revenue equals the product of (1) $700 in fiscal year 2004 and later $704 times (2) the
103.21greater of 20 or the adjusted marginal cost average daily membership of eligible English
103.22learners enrolled in the district during the current fiscal year.
103.23(b) A pupil ceases to generate state English learner aid in the school year following
103.24the school year in which the pupil attains the state cutoff score on a commissioner-provided
103.25assessment that measures the pupil's emerging academic English.
103.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
103.27and later.

103.28    Sec. 26. Minnesota Statutes 2012, section 124D.79, subdivision 1, is amended to read:
103.29    Subdivision 1. Community involvement. The commissioner must provide for the
103.30maximum involvement of the state committees on American Indian education, parents
103.31of American Indian children, secondary students eligible to be served, American Indian
103.32language and culture education teachers, American Indian teachers, teachers' aides,
103.33representatives of community groups, and persons knowledgeable in the field of American
104.1Indian education, in the formulation of policy and procedures relating to the administration
104.2of sections 124D.71 to 124D.82. The commissioner must annually hold a field hearing on
104.3Indian education to gather input from American Indian educators, parents, and students on
104.4the state of American Indian education in Minnesota. Results of the hearing must be made
104.5available to all 11 tribal nations for review and comment.

104.6    Sec. 27. Minnesota Statutes 2012, section 124D.79, is amended by adding a
104.7subdivision to read:
104.8    Subd. 4. Consultation with the tribal nations education committee. (a) The
104.9commissioner shall seek consultation with the Tribal Nations Education Committee on all
104.10issues relating to American Indian education including:
104.11(1) administration of the commissioner's duties under sections 124D.71 to 124D.82
104.12and other programs;
104.13(2) administration of other programs for the education of American Indian people, as
104.14determined by the commissioner;
104.15(3) awarding of scholarships to eligible American Indian students;
104.16(4) administration of the commissioner's duties regarding awarding of American
104.17Indian postsecondary preparation grants to school districts; and
104.18(5) recommendations of education policy changes for American Indians.
104.19(b) Membership in the Tribal Nations Education Committee is the sole discretion
104.20of the committee and nothing in this subdivision gives the commissioner authority to
104.21dictate committee membership.

104.22    Sec. 28. [124D.791] INDIAN EDUCATION DIRECTOR.
104.23    Subdivision 1. Appointment. An Indian education director shall be appointed by
104.24the commissioner.
104.25    Subd. 2. Qualifications. The commissioner shall select the Indian education
104.26director on the basis of outstanding professional qualifications and knowledge of
104.27American Indian education, culture, practices, and beliefs. The Indian education director
104.28serves in the unclassified service. The commissioner may remove the Indian education
104.29director for cause. The commissioner is encouraged to seek qualified applicants who
104.30are enrolled members of a tribe.
104.31    Subd. 3. Compensation. Compensation of the Indian education director shall be
104.32established under chapter 15A.
104.33    Subd. 4. Duties; powers. The Indian education director shall:
105.1(1) serve as the liaison for the department with the Tribal Nations Education
105.2Committee, the 11 reservations, the Minnesota Chippewa tribe, the Minnesota Indian
105.3Affairs Council, and the urban advisory council;
105.4(2) evaluate the state of American Indian education in Minnesota;
105.5(3) engage the tribal bodies, community groups, parents of children eligible to be
105.6served by American Indian education programs, American Indian administrators and
105.7teachers, persons experienced in the training of teachers for American Indian education
105.8programs, the tribally controlled schools, and other persons knowledgeable in the field of
105.9American Indian education and seek their advice on policies that can improve the quality
105.10of American Indian education;
105.11(4) advise the commissioner on American Indian education issues, including:
105.12(i) issues facing American Indian students;
105.13(ii) policies for American Indian education;
105.14(iii) awarding scholarships to eligible American Indian students and in administering
105.15the commissioner's duties regarding awarding of American Indian postsecondary
105.16preparation grants to school districts; and
105.17(iv) administration of the commissioner's duties under sections 124D.71 to 124D.82
105.18and other programs for the education of American Indian people;
105.19(5) propose to the commissioner legislative changes that will improve the quality
105.20of American Indian education;
105.21(6) develop a strategic plan and a long-term framework for American Indian
105.22education, in conjunction with the Minnesota Indian Affairs Council, that is updated every
105.23five years and implemented by the commissioner, with goals to:
105.24(i) increase American Indian student achievement, including increased levels of
105.25proficiency and growth on statewide accountability assessments;
105.26(ii) increase the number of American Indian teachers in public schools;
105.27(iii) close the achievement gap between American Indian students and their more
105.28advantaged peers;
105.29(iv) increase the statewide graduation rate for American Indian students; and
105.30(v) increase American Indian student placement in postsecondary programs and
105.31the workforce; and
105.32(7) keep the American Indian community informed about the work of the department
105.33by reporting to the Tribal Nations Education Committee at each committee meeting.

105.34    Sec. 29. [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
106.1    Subdivision 1. Program to close the academic achievement and opportunity gap;
106.2revenue uses. (a) The "Achievement and Integration for Minnesota" program is established
106.3to pursue racial and economic integration and increase student academic achievement,
106.4create equitable educational opportunities, and reduce academic disparities based on
106.5students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools.
106.6(b) For purposes of this section and section 124D.862, "eligible district" means a
106.7district required to submit a plan to the commissioner under Minnesota Rules governing
106.8school desegregation and integration, or be a member of a multidistrict integration
106.9collaborative that files a plan with the commissioner.
106.10(c) Eligible districts must use the revenue under section 124D.862 to pursue
106.11academic achievement and racial and economic integration through: (1) integrated
106.12learning environments that prepare all students to be effective citizens and enhance
106.13social cohesion; (2) policies and curricula and trained instructors, administrators, school
106.14counselors, and other advocates to support and enhance integrated learning environments
106.15under this section, including through magnet schools, innovative, research-based
106.16instruction, differentiated instruction, and targeted interventions to improve achievement;
106.17and (3) rigorous, career and college readiness programs for underserved student
106.18populations, consistent with section 120B.30, subdivision 1; integrated learning
106.19environments to increase student academic achievement; cultural fluency, competency,
106.20and interaction; graduation and educational attainment rates; and parent involvement.
106.21    Subd. 2. Plan implementation; components. (a) The school board of each eligible
106.22district must formally develop and implement a long-term plan under this section. The
106.23plan must be incorporated into the district's comprehensive strategic plan under section
106.24120B.11. Plan components may include: innovative and integrated prekindergarten
106.25through grade 12 learning environments that offer students school enrollment choices;
106.26family engagement initiatives that involve families in their students' academic life
106.27and success; professional development opportunities for teachers and administrators
106.28focused on improving the academic achievement of all students; increased programmatic
106.29opportunities focused on rigor and college and career readiness for underserved students,
106.30including students enrolled in alternative learning centers under section 123A.05, public
106.31alternative programs under section 126C.05, subdivision 15, and contract alternative
106.32programs under section 124D.69, among other underserved students; or recruitment and
106.33retention of teachers and administrators with diverse racial and ethnic backgrounds. The
106.34plan must contain goals for: (1) reducing the disparities in academic achievement among
106.35all students and specific categories of students under section 120B.35, subdivision 3,
107.1paragraph (b), excluding the student categories of gender, disability, and English learners;
107.2and (2) increasing racial and economic integration in schools and districts.
107.3(b) Among other requirements, an eligible district must implement effective,
107.4research-based interventions that include formative assessment practices to reduce the
107.5disparities in student academic performance among the specific categories of students as
107.6measured by student progress and growth on state reading and math assessments and
107.7as aligned with section 120B.11.
107.8(c) Eligible districts must create efficiencies and eliminate duplicative programs
107.9and services under this section, which may include forming collaborations or a single,
107.10seven-county metropolitan areawide partnership of eligible districts for this purpose.
107.11    Subd. 3. Public engagement; progress report and budget process. (a) To
107.12receive revenue under section 124D.862, the school board of an eligible district must
107.13incorporate school and district plan components under section 120B.11 into the district's
107.14comprehensive integration plan.
107.15(b) A school board must hold at least one formal annual hearing to publicly report
107.16its progress in realizing the goals identified in its plan. At the hearing, the board must
107.17provide the public with longitudinal data demonstrating district and school progress in
107.18reducing the disparities in student academic performance among the specified categories
107.19of students and in realizing racial and economic integration, consistent with the district
107.20plan and the measures in paragraph (a). At least 30 days before the formal hearing under
107.21this paragraph, the board must post its plan, its preliminary analysis, relevant student
107.22performance data, and other longitudinal data on the district Web site. A district must hold
107.23one hearing to meet the hearing requirements of both this section and section 120B.11
107.24(c) The district must submit a detailed budget to the commissioner by March 15 in
107.25the year before it implements its plan. The commissioner must review, and approve or
107.26disapprove the district's budget by June 1 of that year.
107.27(d) The longitudinal data required under paragraph (a) must be based on student
107.28growth and progress in reading and mathematics, as defined under section 120B.30,
107.29subdivision 1, and student performance data and achievement reports from fully adaptive
107.30reading and mathematics assessments for grades 3 through 7 beginning in the 2015-2016
107.31school year under section 120B.30, subdivision 1a, and either (i) school enrollment choices,
107.32(ii) the number of world language proficiency or high achievement certificates awarded
107.33under section 120B.022, subdivision 1, paragraphs (b) and (c), or (iii) school safety and
107.34students' engagement and connection at school under section 120B.35, subdivision 3,
107.35paragraph (d). Additional longitudinal data may be based on: students' progress toward
108.1career and college readiness under section 120B.30, subdivision 1; or rigorous coursework
108.2completed under section 120B.35, subdivision 3, paragraph (c), clause (2).
108.3    Subd. 4. Timeline and implementation. A board must approve its plan and
108.4submit it to the department by March 15. If a district that is part of a multidistrict council
108.5applies for revenue for a plan, the individual district shall not receive revenue unless it
108.6ratifies the plan adopted by the multidistrict council. Each plan has a term of three years.
108.7For the 2014-15 school year, an eligible district under this section must submit its plan
108.8to the commissioner for review by March 15, 2014. For the 2013-14 school year only,
108.9an eligible district may continue to implement its current plan until the commissioner
108.10approves a new plan under this section.
108.11    Subd. 5. Evaluation. The commissioner must evaluate the efficacy of district
108.12plans in reducing the disparities in student academic performance among the specified
108.13categories of students within the district, and in realizing racial and economic integration.
108.14The commissioner shall report evaluation results to the kindergarten through grade 12
108.15education committees of the legislature by February 1 of every odd-numbered year.

108.16    Sec. 30. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
108.17    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
108.18district's initial achievement and integration revenue equals the sum of (1) $350 times
108.19the district's adjusted pupil units for that year times the ratio of the district's enrollment
108.20of protected students for the previous school year to total enrollment for the previous
108.21school year and (2) the greater of zero or 66 percent of the difference between the district's
108.22integration revenue for fiscal year 2013 and the district's integration revenue for fiscal
108.23year 2014 under clause (1).
108.24(b) In each year, 0.3 percent of each district's initial achievement and integration
108.25revenue is transferred to the department for the oversight and accountability activities
108.26required under this section and section 124D.861.
108.27    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
108.28revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
108.29be implementing a voluntary plan to reduce racial and economic enrollment disparities
108.30through intradistrict and interdistrict activities that have been approved as a part of the
108.31district's achievement and integration plan.
108.32    Subd. 3. Achievement and integration revenue. Achievement and integration
108.33revenue equals the sum of initial achievement and integration revenue and incentive
108.34revenue.
109.1    Subd. 4. Achievement and integration aid. For fiscal year 2015 and later,
109.2a district's achievement and integration aid equals 70 percent of its achievement and
109.3integration revenue.
109.4    Subd. 5. Achievement and integration levy. A district's achievement and
109.5integration levy equals its achievement and integration revenue times the levy percentage
109.6specified in H.F. No. 677 or a similarly styled bill. For Special School District No. 1,
109.7Minneapolis, Independent School District No. 625, St. Paul, and Independent School
109.8District No. 709, Duluth, 100 percent of the levy certified under this subdivision is shifted
109.9into the prior calendar year for purposes of sections 123B.75, subdivision 5, and 127A.441.
109.10    Subd. 6. Revenue uses. (a) At least 80 percent of a district's achievement and
109.11integration revenue received under this section must be used for innovative and integrated
109.12learning environments, school enrollment choices, family engagement activities, and other
109.13approved programs providing direct services to students.
109.14(b) Up to 20 percent of the revenue may be used for professional development and
109.15staff development activities and placement services.
109.16(c) No more than ten percent of the total amount of revenue may be spent on
109.17administrative services.
109.18    Subd. 7. Revenue reserved. Integration revenue received under this section must
109.19be reserved and used only for the programs authorized in subdivision 2.
109.20    Subd. 8. Commissioner authority to withhold revenue. (a) The commissioner
109.21must review the results of each district's integration and achievement plan by August 1 at
109.22the end of the third year of implementing the plan and determine if the district met its goals.
109.23(b) If a district met its goals, it may submit a new three-year plan to the commissioner
109.24for review.
109.25(c) If a district has not met its goals, the commissioner must:
109.26(1) develop a district improvement plan and timeline, in consultation with the
109.27affected district, that identifies strategies and practices designed to meet the district's goals
109.28under this section and section 120B.11; and
109.29(2) use up to 20 percent of the district's integration revenue, until the district's goals
109.30are reached, to implement the improvement plan.
109.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014 and
109.32later. Subdivision 5 is effective for taxes payable in 2014 only.

109.33    Sec. 31. Minnesota Statutes 2012, section 260C.007, subdivision 19, is amended to read:
109.34    Subd. 19. Habitual truant. "Habitual truant" means a child under the age of 16 17
109.35years who is absent from attendance at school without lawful excuse for seven school days
110.1per school year if the child is in elementary school or for one or more class periods on
110.2seven school days per school year if the child is in middle school, junior high school, or
110.3high school, or a child who is 16 or 17 years of age who is absent from attendance at school
110.4without lawful excuse for one or more class periods on seven school days per school year
110.5 and who has not lawfully withdrawn from school under section 120A.22, subdivision 8.
110.6EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
110.7later.

110.8    Sec. 32. ACHIEVEMENT AND INTEGRATION; RECOMMENDATIONS FOR
110.9CONFORMING CHANGES.
110.10The education commissioner shall review Minnesota Rules, parts 3535.0100 to
110.113535.0180, for consistency with Minnesota Statutes, sections 124D.861 and 124D.862,
110.12and make recommendations to the education committees of the legislature by February 15,
110.132014, for revising the rules or amending applicable statutes.
110.14EFFECTIVE DATE.This section is effective the day following final enactment.

110.15    Sec. 33. TEACHER LICENSURE ADVISORY TASK FORCE.
110.16    Subdivision 1. Establishment and duties. (a) A Teacher Licensure Advisory Task
110.17Force is established to make recommendations to the Board of Teaching, the education
110.18commissioner, and the education committees of the legislature on requirements for:
110.19teacher applicants to demonstrate mastery of reading, writing, and mathematics skills
110.20through nationally normed assessments, a professional skills portfolio, or accredited
110.21college coursework, among other methods of demonstrating skills mastery; and an
110.22alternative licensure pathway for nonnative English speakers seeking licensure to teach in
110.23a language immersion program.
110.24(b) Task force recommendations on how teacher candidates demonstrate skills
110.25mastery must encompass the following criteria:
110.26(1) assessment content must be relevant to the teacher's subject area licensure;
110.27(2) the scope of assessment content must be documented in sufficient detail to
110.28correspond to a similarly detailed description of relevant public school curriculum;
110.29(3) the scope of assessment content must be publicly available and readily accessible
110.30on the Web site of the Board of Teaching and all Minnesota board-approved teacher
110.31preparation programs and institutions;
111.1(4) the Board of Teaching and all Minnesota board-approved teacher preparation
111.2programs and institutions, upon request, must make available to the public at cost a written
111.3review of the scope of assessment content;
111.4(5) if applicable, and consistent with federal and state data practices laws including
111.5the definition of summary data under Minnesota Statutes, section 13.02, subdivision 19,
111.6the Board of Teaching and all Minnesota board-approved teacher preparation programs
111.7and institutions annually must post on their Web site up-to-date longitudinal summary
111.8data showing teacher candidates' overall passing rate and the passing rate for each
111.9demographic group of teacher candidates taking a skills assessment in that school year and
111.10in previous school years;
111.11(6) reliable evidence showing assessment content is not culturally biased;
111.12(7) the Board of Teaching and all Minnesota board-approved teacher preparation
111.13programs and institutions must appropriately accommodate teacher candidates
111.14with documented learning disabilities, including an appeals process if a request for
111.15accommodations is denied; and
111.16(8) if applicable, give timely, detailed item analysis feedback to teacher candidates
111.17who do not pass the skills assessment sufficient for the candidate to target specific areas
111.18of deficiency for appropriate remediation.
111.19    Subd. 2. Membership. The Teacher Licensure Advisory Task Force shall be
111.20composed of the following 20 members appointed by July 15, 2013:
111.21(1) two members of the Board of Teaching appointed by the board's chair;
111.22(2) two representatives from the Department of Education appointed by the
111.23commissioner of education;
111.24(3) two members of the house of representatives, one appointed by the speaker of the
111.25house of representatives, and one appointed by the minority leader;
111.26(4) two senators, one appointed by the Subcommittee on Committees of the
111.27Committee on Rules and Administration, and one appointed by the minority leader;
111.28(5) one elementary school principal from rural Minnesota appointed by the
111.29Minnesota Elementary School Principals Association and one secondary school principal
111.30from the seven-county metropolitan area appointed by the Minnesota Secondary School
111.31Principals Association;
111.32(6) one licensed and practicing public elementary school teacher and one licensed
111.33and practicing secondary school teacher appointed by Education Minnesota;
111.34(7) one teacher preparation faculty member each from the University of Minnesota
111.35system appointed by the system president, the Minnesota State Colleges and Universities
112.1system appointed by the system chancellor, and the Minnesota Private Colleges and
112.2Universities system appointed by the Minnesota Private Colleges Council;
112.3(8) one member of the nonpublic education council appointed by the council;
112.4(9) one representative of Minnesota charter schools appointed by the Minnesota
112.5Charter Schools Association;
112.6(10) two representatives from the business community, appointed by the Minnesota
112.7Chamber of Commerce; and
112.8(11) one representative from the Minnesota School Boards Association.
112.9    Subd. 3. First meeting; chair. The executive director of the Board of Teaching and
112.10the commissioner of education jointly must convene the task force by August 1, 2013, and
112.11shall appoint a chair from the membership of the task force.
112.12    Subd. 4. Report. By February 1, 2014, task force members must submit to the
112.13Board of Teaching, the education commissioner, and to the chairs and ranking minority
112.14members of the senate and house of representatives committees and divisions with
112.15primary jurisdiction over K-12 education their written recommendations on requirements
112.16for teacher applicants to demonstrate mastery of reading, writing, and mathematics skills
112.17and for an alternative licensure pathway for nonnative English speakers seeking licensure
112.18to teach in a language immersion program.
112.19    Subd. 5. Sunset. The task force shall sunset the day after submitting the report
112.20under subdivision 6, or February 2, 2014, whichever is earlier.
112.21    Subd. 6. Support. The executive director of the board and the commissioner of
112.22education must provide technical assistance to task force members upon request.
112.23    Subd. 7. Board of Teaching rules. The Board of Teaching must consider the
112.24recommendations of the advisory task force and adopt revised rules by January 1, 2015,
112.25governing the skills portion of the teacher licensure exam.
112.26EFFECTIVE DATE.This section is effective the day following final enactment.

112.27    Sec. 34. STUDENT SUPPORT SERVICES; TEAM STAFFING APPROACH.
112.28The commissioner of education shall develop and submit to the kindergarten
112.29through grade 12 education policy and finance committees of the legislature by February
112.301, 2014, recommendations for providing access to licensed student support services,
112.31including licensed school counselors, licensed school psychologists, licensed school
112.32nurses, licensed school social workers, and licensed chemical health counselors, to public
113.1school students throughout Minnesota using a multidisciplinary team staffing structure.
113.2The recommendations must reflect:
113.3(1) the extent to which students need academic, career, physical, emotional, social,
113.4and early-onset mental health services to ensure educational achievement, safety and
113.5enhancement of student's physical, emotional, and social well-being;
113.6(2) the extent to which such services or teams do not exist, are incomplete or
113.7inadequate given the number of students with unmet psychological, social, and health
113.8needs that interfere with learning;
113.9(3) existing funding streams and opportunities for additional funds to improve
113.10students' access to needed licensed student support services; and
113.11(4) caseloads and best practices when working to improve access to needed licensed
113.12student support services.
113.13EFFECTIVE DATE.This section is effective the day following final enactment.

113.14    Sec. 35. FISCAL YEAR 2014 ACHIEVEMENT AND INTEGRATION AID
113.15AND LEVY.
113.16    Subdivision 1. Achievement and integration aid. A district's achievement and
113.17integration aid for fiscal year 2014 equals the difference between the district's achievement
113.18and integration revenue and its achievement and integration levy for fiscal year 2014.
113.19    Subd. 2. Achievement and integration levy. For fiscal year 2014 only, a district's
113.20achievement and integration levy equals the amount the district was authorized to levy
113.21under Laws 2011, First Special Session chapter 11, article 2, section 49, paragraph (f).
113.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
113.23and later.

113.24    Sec. 36. SUCCESS FOR THE FUTURE GRANT APPLICATIONS.
113.25    A school district may receive a success for the future grant in the 2012-2013 school
113.26year if the school district's grant application was postmarked on or before the Department
113.27of Education's deadline date for application.
113.28EFFECTIVE DATE.This section is effective the day following final enactment.

113.29    Sec. 37. APPROPRIATIONS.
113.30    Subdivision 1. Department. The sums indicated in this section are appropriated
113.31from the general fund to the Department of Education for the fiscal years designated.
114.1    Subd. 2. Integration aid. For integration aid under Minnesota Statutes, section
114.2124D.86:
114.3
$
17,197,000
.....
2014
114.4
$
0
.....
2015
114.5The 2014 appropriation includes $17,197,000 for 2013 and $0 for 2014.
114.6The 2015 appropriation includes $0 for 2014 and $0 for 2015.
114.7    Subd. 3. Achievement and integration aid. For achievement and integration aid
114.8under Minnesota Statutes, section 124D.862:
114.9
$
58,911,000
.....
2014
114.10
$
68,623,000
.....
2015
114.11The 2014 appropriation includes $0 for 2013 and $58,911,000 for 2014.
114.12The 2015 appropriation includes $9,273,000 for 2014 and $59,350,000 for 2015.
114.13    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
114.14Statutes, section 124D.98:
114.15
$
52,514,000
.....
2014
114.16
$
53,818,000
.....
2015
114.17The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 for 2014.
114.18The 2015 appropriation includes $7,225,000 for 2014 and $46,593,000 for 2015.
114.19    Subd. 5. Interdistrict desegregation or integration transportation grants. For
114.20interdistrict desegregation or integration transportation grants under Minnesota Statutes,
114.21section 124D.87:
114.22
$
13,968,000
.....
2014
114.23
$
14,712,000
.....
2015
114.24    Subd. 6. Success for the future. For American Indian success for the future grants
114.25under Minnesota Statutes, section 124D.81:
114.26
$
2,137,000
.....
2014
114.27
$
2,137,000
.....
2015
114.28The 2014 appropriation includes $290,000 for 2013 and $1,847,000 for 2014.
114.29The 2015 appropriation includes $290,000 for 2014 and $1,847,000 for 2015.
114.30    Subd. 7. American Indian teacher preparation grants. For joint grants to assist
114.31American Indian people to become teachers under Minnesota Statutes, section 122A.63:
114.32
$
190,000
.....
2014
114.33
$
190,000
.....
2015
115.1    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
115.2Statutes, section 124D.83:
115.3
$
2,080,000
.....
2014
115.4
$
2,230,000
.....
2015
115.5The 2014 appropriation includes $266,000 for 2013 and $1,814,000 for 2014.
115.6The 2015 appropriation includes $285,000 for 2014 and $1,945,000 for 2015.
115.7    Subd. 9. Early childhood programs at tribal schools. For early childhood family
115.8education programs at tribal contract schools under Minnesota Statutes, section 124D.83,
115.9subdivision 4:
115.10
$
68,000
.....
2014
115.11
$
68,000
.....
2015
115.12    Subd. 10. Examination fees; teacher training and support programs. (a) For
115.13students' advanced placement and international baccalaureate examination fees under
115.14Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
115.15for teachers and other interested educators under Minnesota Statutes, section 120B.13,
115.16subdivision 1:
115.17
$
4,500,000
.....
2014
115.18
$
4,500,000
.....
2015
115.19(b) The advanced placement program shall receive 75 percent of the appropriation
115.20each year and the international baccalaureate program shall receive 25 percent of the
115.21appropriation each year. The department, in consultation with representatives of the
115.22advanced placement and international baccalaureate programs selected by the Advanced
115.23Placement Advisory Council and the Minnesota Association of IB World Schools,
115.24respectively, shall determine the amounts of the expenditures each year for examination
115.25fees and training and support programs for each program.
115.26(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
115.27$500,000 each year is for teachers to attend subject matter summer training programs
115.28and follow-up support workshops approved by the advanced placement or international
115.29baccalaureate programs. The amount of the subsidy for each teacher attending an
115.30advanced placement or international baccalaureate summer training program or workshop
115.31shall be the same. The commissioner shall determine the payment process and the amount
115.32of the subsidy.
115.33(d) The commissioner shall pay all examination fees for all students of low-income
115.34families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
116.1of available appropriations shall also pay examination fees for students sitting for an
116.2advanced placement examination, international baccalaureate examination, or both.
116.3Any balance in the first year does not cancel but is available in the second year.
116.4    Subd. 11. Concurrent enrollment program. For concurrent enrollment programs
116.5under Minnesota Statutes, section 124D.091:
116.6
$
2,000,000
.....
2014
116.7
$
2,000,000
.....
2015
116.8If the appropriation is insufficient, the commissioner must proportionately reduce
116.9the aid payment to each district.
116.10Any balance in the first year does not cancel but is available in the second year.
116.11    Subd. 12. Collaborative urban educator. For the collaborative urban educator
116.12grant program:
116.13
$
782,000
.....
2014
116.14
$
782,000
.....
2015
116.15$195,000 each year is for the Southeast Asian teacher program at Concordia
116.16University, St. Paul; $195,000 each year is for the collaborative educator program at the
116.17University of St. Thomas; $195,000 each year is for the Center for Excellence in Urban
116.18Teaching at Hamline University; and $195,000 each year is for East African teacher
116.19educator activities at Augsburg College.
116.20Any balance in the first year does not cancel but is available in the second year.
116.21Each institution shall prepare for the legislature, by January 15 of each year, a
116.22detailed report regarding the funds used. The report must include the number of teachers
116.23prepared as well as the diversity for each cohort of teachers produced.
116.24    Subd. 13. ServeMinnesota program. For funding ServeMinnesota programs under
116.25Minnesota Statutes, sections 124D.37 to 124D.45:
116.26
$
900,000
.....
2014
116.27
$
900,000
.....
2015
116.28A grantee organization may provide health and child care coverage to the dependents
116.29of each participant enrolled in a full-time ServeMinnesota program to the extent such
116.30coverage is not otherwise available.
116.31    Subd. 14. Student organizations. For student organizations:
116.32
$
725,000
.....
2014
116.33
$
725,000
.....
2015
116.34$46,000 each year is for student organizations serving health occupations (HOSA).
117.1$43,000 each year is for student organizations serving service occupations (HERO).
117.2$100,000 each year is for student organizations serving trade and industry
117.3occupations (Skills USA, secondary and postsecondary).
117.4$95,000 each year is for student organizations serving business occupations (BPA,
117.5secondary and postsecondary).
117.6$150,000 each year is for student organizations serving agriculture occupations
117.7(FFA, PAS).
117.8$142,000 each year is for student organizations serving family and consumer science
117.9occupations (FCCLA).
117.10$109,000 each year is for student organizations serving marketing occupations
117.11(DECA and DECA collegiate).
117.12$40,000 each year is for the Minnesota Foundation for Student Organizations.
117.13Any balance in the first year does not cancel but is available in the second year.
117.14    Subd. 15. Early childhood literacy programs. For early childhood literacy
117.15programs under Minnesota Statutes, section 119A.50, subdivision 3:
117.16
$
4,125,000
.....
2014
117.17
$
4,125,000
.....
2015
117.18Up to $4,125,000 each year is for leveraging federal and private funding to support
117.19AmeriCorps members serving in the Minnesota Reading Corps program established by
117.20ServeMinnesota, including costs associated with the training and teaching of early literacy
117.21skills to children age three to grade 3 and the evaluation of the impact of the program
117.22under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
117.23Any balance in the first year does not cancel but is available in the second year.
117.24    Subd. 16. Minnesota math corps program. For the Minnesota math corps program
117.25under Minnesota Statutes, section 124D.42, subdivision 9:
117.26
$
250,000
.....
2014
117.27
$
250,000
.....
2015
117.28Any unexpended balance in the first year does not cancel but is available in the
117.29second year.
117.30    Subd. 17. Regional centers of excellence. For regional centers of excellence under
117.31Minnesota Statutes, section 120B.115, subdivision 4:
117.32
$
1,000,000
.....
2014
117.33
$
1,000,000
.....
2015
118.1The base for the regional centers of excellence in fiscal years 2016 and 2017 is
118.2$1,000,000 each year.
118.3    Subd. 18. School Climate Center. For the School Climate Center:
118.4
$
500,000
.....
2014
118.5
$
500,000
.....
2015
118.6    Subd. 19. Site decision-making grant program. For site decision-making grants
118.7under Minnesota Statutes, section 123B.04, subdivision 2, paragraph (f):
118.8
$
200,000
.....
2014
118.9An education site having a written achievement contract under Minnesota Statutes,
118.10section 123B.04, subdivision 4, agreed to by the school board and the education site,
118.11may apply to the commissioner of education for a two-year grant not to exceed $10 per
118.12resident pupil unit at the site in the 2012-2013 school year. Each participating education
118.13site and its school board that are the parties to the achievement contract must report
118.14annually to the commissioner, in the form and manner determined by the commissioner,
118.15on the progress and success of the education site in achieving student or contract goals
118.16or other performance expectations or measures contained in the achievement contract.
118.17The commissioner must include the substance and an analysis of these reports in the
118.18next statewide report under Minnesota Statutes, section 123B.04, subdivision 5, clause
118.19(3), evaluating the effectiveness of site management agreements in redesigning learning
118.20programs and broadening the definition of student achievement. Any unexpended funds
118.21do not cancel but are available in fiscal year 2015.
118.22    Subd. 20. Alternative compensation. For alternative teacher compensation aid
118.23under Minnesota Statutes, section 122A.415, subdivision 4:
118.24
$
60,340,000
.....
2015
118.25The 2015 appropriation includes $0 for 2014 and $59,711,000 for 2015.
118.26    Subd. 21. Teacher development and evaluation pilot grant program. For
118.27grants to school districts to participate in the teacher development and evaluation pilot
118.28grant program:
118.29
$
683,000
.....
2014
118.30This is a onetime appropriation.
118.31    Subd. 22. Starbase MN. For a grant to Starbase MN for rigorous science,
118.32technology, engineering, and math (STEM) program providing students in grades 4 to
119.16 with a multisensory learning experience and a hands-on curriculum in an aerospace
119.2environment using state-of-the-art technology:
119.3
$
500,000
.....
2014
119.4
$
500,000
.....
2015
119.5Any balance in the first year does not cancel and is available in the second year.
119.6    Subd. 23. Civic education grants. For grants to the Minnesota Civic Education
119.7Coalition: Kids Voting St. Paul, Learning Law and Democracy Foundation, and YMCA
119.8Youth in Government to provide civic education programs for Minnesota youth age 18
119.9and under. Civic education is the study of constitutional principles and the democratic
119.10foundation of our national, state, and local institutions and the study of political processes
119.11and structures of government, grounded in the understanding of constitutional government
119.12under the rule of law.
119.13
$
125,000
.....
2014
119.14
$
125,000
.....
2015
119.15Any balance in the first year does not cancel and is available in the second year.

119.16
ARTICLE 4
119.17CHARTER SCHOOLS

119.18    Section 1. Minnesota Statutes 2012, section 124D.10, is amended to read:
119.19124D.10 CHARTER SCHOOLS.
119.20    Subdivision 1. Purposes. (a) The primary purpose of this section is to:
119.21    (1) improve pupil learning and student achievement;. Additional purposes include to:
119.22    (2) (1) increase learning opportunities for pupils;
119.23    (3) (2) encourage the use of different and innovative teaching methods;
119.24    (4) (3) measure learning outcomes and create different and innovative forms of
119.25measuring outcomes;
119.26    (5) (4) establish new forms of accountability for schools; and or
119.27    (6) (5) create new professional opportunities for teachers, including the opportunity
119.28to be responsible for the learning program at the school site.
119.29    (b) This section does not provide a means to keep open a school that a school board
119.30decides to close. However, a school board may endorse or authorize the establishing of
119.31a charter school to replace the school the board decided to close. Applicants seeking a
119.32charter under this circumstance must demonstrate to the authorizer that the charter sought
119.33is substantially different in purpose and program from the school the board closed and
119.34that the proposed charter satisfies the requirements of this subdivision. If the school
120.1board that closed the school authorizes the charter, it must document in its affidavit to the
120.2commissioner that the charter is substantially different in program and purpose from
120.3the school it closed.
120.4    An authorizer shall not approve an application submitted by a charter school
120.5developer under subdivision 4, paragraph (a), if the application does not comply with this
120.6subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
120.7under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
120.8    Subd. 2. Applicability. This section applies only to charter schools formed and
120.9operated under this section.
120.10    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
120.11subdivision have the meanings given them.
120.12    "Application" to receive approval as an authorizer means the proposal an eligible
120.13authorizer submits to the commissioner under paragraph (c) before that authorizer is able
120.14to submit any affidavit to charter to a school.
120.15    "Application" under subdivision 4 means the charter school business plan a
120.16school developer submits to an authorizer for approval to establish a charter school that
120.17documents the school developer's mission statement, school purposes, program design,
120.18financial plan, governance and management structure, and background and experience,
120.19plus any other information the authorizer requests. The application also shall include a
120.20"statement of assurances" of legal compliance prescribed by the commissioner.
120.21    "Affidavit" means a written statement the authorizer submits to the commissioner
120.22for approval to establish a charter school under subdivision 4 attesting to its review and
120.23approval process before chartering a school.
120.24    (b) The following organizations may authorize one or more charter schools:
120.25    (1) a school board, intermediate school district school board, or education district
120.26organized under sections 123A.15 to 123A.19;
120.27    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
120.28of 1986, excluding a nonpublic sectarian or religious institution; any person other than a
120.29natural person that directly or indirectly, through one or more intermediaries, controls,
120.30is controlled by, or is under common control with the nonpublic sectarian or religious
120.31institution; and any other charitable organization under this clause that in the federal IRS
120.32Form 1023, Part IV, describes activities indicating a religious purpose, that:
120.33    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
120.34Foundations;
120.35    (ii) is registered with the attorney general's office; and
121.1    (iii) is incorporated in the state of Minnesota and has been operating continuously
121.2for at least five years but does not operate a charter school;
121.3    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
121.4four-year degrees and is registered with the Minnesota Office of Higher Education under
121.5chapter 136A; community college, state university, or technical college governed by the
121.6Board of Trustees of the Minnesota State Colleges and Universities; or the University
121.7of Minnesota;
121.8    (4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
121.9and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
121.10of 1986, may authorize one or more charter schools if the charter school has operated
121.11for at least three years under a different authorizer and if the nonprofit corporation has
121.12existed for at least 25 years; or
121.13    (5) single-purpose authorizers that are charitable, nonsectarian organizations formed
121.14under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the
121.15state of Minnesota under chapter 317A as a corporation with no members whose sole
121.16purpose is to charter schools. Eligible organizations interested in being approved as an
121.17authorizer under this paragraph must submit a proposal to the commissioner that includes
121.18the provisions of paragraph (c) and a five-year financial plan. Such authorizers shall
121.19consider and approve charter school applications using the criteria provided in subdivision
121.204 and shall not limit the applications it solicits, considers, or approves to any single
121.21curriculum, learning program, or method.
121.22    (c) An eligible authorizer under this subdivision must apply to the commissioner for
121.23approval as an authorizer before submitting any affidavit to the commissioner to charter
121.24a school. The application for approval as a charter school authorizer must demonstrate
121.25the applicant's ability to implement the procedures and satisfy the criteria for chartering a
121.26school under this section. The commissioner must approve or disapprove an application
121.27within 45 business days of the application deadline. If the commissioner disapproves
121.28the application, the commissioner must notify the applicant of the specific deficiencies
121.29in writing and the applicant then has 20 business days to address the deficiencies to the
121.30commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
121.31business days to make a final decision to approve or disapprove the application. Failing to
121.32address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
121.33be an authorizer. The commissioner, in establishing criteria for approval, must consider
121.34the applicant's:
121.35    (1) capacity and infrastructure;
121.36    (2) application criteria and process;
122.1    (3) contracting process;
122.2    (4) ongoing oversight and evaluation processes; and
122.3    (5) renewal criteria and processes.
122.4    (d) An applicant must include in its application to the commissioner to be an
122.5approved authorizer at least the following:
122.6    (1) how chartering schools is a way for the organization to carry out its mission;
122.7    (2) a description of the capacity of the organization to serve as an authorizer,
122.8including the personnel who will perform the authorizing duties, their qualifications, the
122.9amount of time they will be assigned to this responsibility, and the financial resources
122.10allocated by the organization to this responsibility;
122.11    (3) a description of the application and review process the authorizer will use to
122.12make decisions regarding the granting of charters;
122.13    (4) a description of the type of contract it will arrange with the schools it charters
122.14that meets the provisions of subdivision 6;
122.15    (5) the process to be used for providing ongoing oversight of the school consistent
122.16with the contract expectations specified in clause (4) that assures that the schools chartered
122.17are complying with both the provisions of applicable law and rules, and with the contract;
122.18    (6) a description of the criteria and process the authorizer will use to grant expanded
122.19applications under subdivision 4, paragraph (j);
122.20    (7) the process for making decisions regarding the renewal or termination of
122.21the school's charter based on evidence that demonstrates the academic, organizational,
122.22and financial competency of the school, including its success in increasing student
122.23achievement and meeting the goals of the charter school agreement; and
122.24    (8) an assurance specifying that the organization is committed to serving as an
122.25authorizer for the full five-year term.
122.26    (e) A disapproved applicant under this section may resubmit an application during a
122.27future application period.
122.28    (f) If the governing board of an approved authorizer votes to withdraw as an
122.29approved authorizer for a reason unrelated to any cause under subdivision 23, the
122.30authorizer must notify all its chartered schools and the commissioner in writing by July
122.3115 of its intent to withdraw as an authorizer on June 30 in the next calendar year. The
122.32commissioner may approve the transfer of a charter school to a new authorizer under this
122.33paragraph after the new authorizer submits an affidavit to the commissioner.
122.34    (g) The authorizer must participate in department-approved training.
122.35    (h) An authorizer that chartered a school before August 1, 2009, must apply by
122.36June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
123.1authorizer under this section. For purposes of this paragraph, an authorizer that fails to
123.2submit a timely application is ineligible to charter a school.
123.3    (i) (h) The commissioner shall review an authorizer's performance every five years
123.4in a manner and form determined by the commissioner and may review an authorizer's
123.5performance more frequently at the commissioner's own initiative or at the request of a
123.6charter school operator, charter school board member, or other interested party. The
123.7commissioner, after completing the review, shall transmit a report with findings to the
123.8authorizer. If, consistent with this section, the commissioner finds that an authorizer has
123.9not fulfilled the requirements of this section, the commissioner may subject the authorizer
123.10to corrective action, which may include terminating the contract with the charter school
123.11board of directors of a school it chartered. The commissioner must notify the authorizer
123.12in writing of any findings that may subject the authorizer to corrective action and
123.13the authorizer then has 15 business days to request an informal hearing before the
123.14commissioner takes corrective action. If the commissioner terminates a contract between
123.15an authorizer and a charter school under this paragraph, the commissioner may assist the
123.16charter school in acquiring a new authorizer.
123.17    (j) (i) The commissioner may at any time take corrective action against an authorizer,
123.18including terminating an authorizer's ability to charter a school for:
123.19    (1) failing to demonstrate the criteria under paragraph (c) under which the
123.20commissioner approved the authorizer;
123.21    (2) violating a term of the chartering contract between the authorizer and the charter
123.22school board of directors;
123.23    (3) unsatisfactory performance as an approved authorizer; or
123.24    (4) any good cause shown that provides the commissioner a legally sufficient reason
123.25to take corrective action against an authorizer.
123.26    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
123.27a school developer, may charter a licensed teacher under section 122A.18, subdivision
123.281
, or a group of individuals that includes one or more licensed teachers under section
123.29122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the
123.30authorizer's affidavit under paragraph (b). The school must be organized and operated as a
123.31nonprofit corporation under chapter 317A and the provisions under the applicable chapter
123.32shall apply to the school except as provided in this section.
123.33    Notwithstanding sections 465.717 and 465.719, a school district, subject to this
123.34section and section 124D.11, may create a corporation for the purpose of establishing a
123.35charter school.
124.1    (b) Before the operators may establish and operate a school, the authorizer must file
124.2an affidavit with the commissioner stating its intent to charter a school. An authorizer
124.3must file a separate affidavit for each school it intends to charter. The affidavit must state
124.4the terms and conditions under which the authorizer would charter a school and how the
124.5authorizer intends to oversee the fiscal and student performance of the charter school and to
124.6comply with the terms of the written contract between the authorizer and the charter school
124.7board of directors under subdivision 6. The commissioner must approve or disapprove the
124.8authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner
124.9disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies
124.10in the affidavit and the authorizer then has 20 business days to address the deficiencies.
124.11If the authorizer does not address deficiencies to the commissioner's satisfaction, the
124.12commissioner's disapproval is final. Failure to obtain commissioner approval precludes an
124.13authorizer from chartering the school that is the subject of this affidavit.
124.14    (c) The authorizer may prevent an approved charter school from opening for
124.15operation if, among other grounds, the charter school violates this section or does not meet
124.16the ready-to-open standards that are part of the authorizer's oversight and evaluation
124.17process or are stipulated in the charter school contract.
124.18    (d) The operators authorized to organize and operate a school, before entering into
124.19a contract or other agreement for professional or other services, goods, or facilities,
124.20must incorporate as a nonprofit corporation under chapter 317A and must establish a
124.21board of directors composed of at least five members who are not related parties until a
124.22timely election for members of the ongoing charter school board of directors is held
124.23according to the school's articles and bylaws under paragraph (f). A charter school board
124.24of directors must be composed of at least five members who are not related parties.
124.25Staff members employed at the school, including teachers providing instruction under a
124.26contract with a cooperative, members of the board of directors, and all parents or legal
124.27guardians of children enrolled in the school are the voters eligible to elect the members
124.28of the school's board of directors. A charter school must notify eligible voters of the
124.29school board election dates at least 30 days before the election. Board of director meetings
124.30must comply with chapter 13D.
124.31    (e) A charter school shall publish and maintain on the school's official Web site: (1)
124.32the minutes of meetings of the board of directors, and of members and committees having
124.33any board-delegated authority, for at least one calendar year from the date of publication;
124.34(2) directory information for members of the board of directors and committees having
124.35board-delegated authority; and (3) identifying and contact information for the school's
124.36authorizer. Identifying and contact information for the school's authorizer must be
125.1included in other school materials made available to the public. Upon request of an
125.2individual, the charter school must also make available in a timely fashion financial
125.3statements showing all operations and transactions affecting income, surplus, and deficit
125.4during the school's last annual accounting period; and a balance sheet summarizing assets
125.5and liabilities on the closing date of the accounting period. A charter school also must post
125.6on its official Web site information identifying its authorizer and indicate how to contact
125.7that authorizer and include that same information about its authorizer in other school
125.8materials that it makes available to the public.
125.9    (f) Every charter school board member shall attend ongoing annual training
125.10throughout the member's term on the board governance, including. All new board
125.11members shall attend initial training on the board's role and responsibilities, employment
125.12policies and practices, and financial management. A new board member who does not
125.13begin the required initial training within six months after being seated and complete that
125.14training within 12 months of being seated on the board is automatically ineligible to
125.15continue to serve as a board member. The school shall include in its annual report the
125.16training attended by each board member during the previous year.
125.17    (g) The ongoing board must be elected before the school completes its third year of
125.18operation. Board elections must be held during the school year but may not be conducted
125.19on days when the school is closed for holidays, breaks, or vacations. The charter school
125.20board of directors shall be composed of at least five nonrelated members and include: (i)
125.21at least one licensed teacher employed as a teacher at the school or a licensed teacher
125.22 providing instruction under contract between the charter school and a cooperative; (ii) the
125.23 at least one parent or legal guardian of a student enrolled in the charter school who is not an
125.24employee of the charter school; and (iii) an at least one interested community member who
125.25 resides in Minnesota and is not employed by the charter school and does not have a child
125.26enrolled in the school. The board may be a teacher majority board composed may include
125.27a majority of teachers described in this paragraph or parents or community members, or it
125.28may have no clear majority. The chief financial officer and the chief administrator may only
125.29serve as ex-officio nonvoting board members and may not serve as a voting member of the
125.30board. No charter school employees shall not serve on the board unless other than teachers
125.31under item (i) applies. Contractors providing facilities, goods, or services to a charter
125.32school shall not serve on the board of directors of the charter school. Board bylaws shall
125.33outline the process and procedures for changing the board's governance model structure,
125.34consistent with chapter 317A. A board may change its governance model structure only:
126.1    (1) by a majority vote of the board of directors and a majority vote of the licensed
126.2teachers employed by the school as teachers, including licensed teachers providing
126.3instruction under a contract between the school and a cooperative; and
126.4    (2) with the authorizer's approval.
126.5    Any change in board governance structure must conform with the composition of
126.6the board structure established under this paragraph.
126.7    (h) The granting or renewal of a charter by an authorizer must not be conditioned
126.8upon the bargaining unit status of the employees of the school.
126.9    (i) The granting or renewal of a charter school by an authorizer must not be
126.10contingent on the charter school being required to contract, lease, or purchase services
126.11from the authorizer. Any potential contract, lease, or purchase of service from an
126.12authorizer must be disclosed to the commissioner, accepted through an open bidding
126.13process, and be a separate contract from the charter contract. The school must document
126.14the open bidding process. An authorizer must not enter into a contract to provide
126.15management and financial services for a school that it authorizes, unless the school
126.16documents that it received at least two competitive bids.
126.17    (j) An authorizer may permit the board of directors of a charter school to expand
126.18the operation of the charter school to additional sites or to add additional grades at the
126.19school beyond those described in the authorizer's original affidavit as approved by
126.20the commissioner only after submitting a supplemental affidavit for approval to the
126.21commissioner in a form and manner prescribed by the commissioner. The supplemental
126.22affidavit must document that:
126.23    (1) the proposed expansion plan demonstrates need and projected enrollment;
126.24    (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
126.25students' improved academic performance and growth on statewide assessments under
126.26chapter 120B;
126.27    (3) the charter school is financially sound and the financing it needs to implement
126.28the proposed expansion exists; and
126.29    (4) the charter school has the governance structure and management capacity to
126.30carry out its expansion.
126.31    (k) The commissioner shall have 30 business days to review and comment on the
126.32supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
126.33the supplemental affidavit and the authorizer then has 20 business days to address, to the
126.34commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
126.35may not expand grades or add sites until the commissioner has approved the supplemental
126.36affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
127.1    Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
127.2member of the charter school board of directors if the individual, an immediate family
127.3member, or the individual's partner is an a full or part owner, employee or agent of, or
127.4a contractor principal with a for-profit or nonprofit entity or individual independent
127.5contractor with whom the charter school contracts, directly or indirectly, for professional
127.6services, goods, or facilities. An individual is prohibited from serving as a board member if
127.7an immediate family member is an employee of the school. A violation of this prohibition
127.8renders a contract voidable at the option of the commissioner or the charter school board
127.9of directors. A member of a charter school board of directors who violates this prohibition
127.10is individually liable to the charter school for any damage caused by the violation.
127.11    (b) No member of the board of directors, employee, officer, or agent of a charter
127.12school shall participate in selecting, awarding, or administering a contract if a conflict
127.13of interest exists. A conflict exists when:
127.14    (1) the board member, employee, officer, or agent;
127.15    (2) the immediate family of the board member, employee, officer, or agent;
127.16    (3) the partner of the board member, employee, officer, or agent; or
127.17    (4) an organization that employs, or is about to employ any individual in clauses
127.18(1) to (3),
127.19has a financial or other interest in the entity with which the charter school is contracting.
127.20A violation of this prohibition renders the contract void.
127.21    (c) Any employee, agent, or board member of the authorizer who participates
127.22in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
127.23nonrenewal process or decision is ineligible to serve on the board of directors of a school
127.24chartered by that authorizer.
127.25    (d) An individual may serve as a member of the board of directors if no conflict of
127.26interest under paragraph (a) exists.
127.27    (e) The conflict of interest provisions under this subdivision do not apply to
127.28compensation paid to a teacher employed as a teacher by the charter school who or a
127.29teacher who provides instructional services to the charter school through a cooperative
127.30formed under chapter 308A when the teacher also serves as a member of on the charter
127.31school board of directors.
127.32    (f) The conflict of interest provisions under this subdivision do not apply to a teacher
127.33who provides services to a charter school through a cooperative formed under chapter
127.34308A when the teacher also serves on the charter school board of directors.
127.35    Subd. 5. Conversion of existing schools. A board of an independent or special
127.36school district may convert one or more of its existing schools to charter schools under
128.1this section if 60 percent of the full-time teachers at the school sign a petition seeking
128.2conversion. The conversion must occur at the beginning of an academic year.
128.3    Subd. 6. Charter contract. The authorization for a charter school must be in the
128.4form of a written contract signed by the authorizer and the board of directors of the charter
128.5school. The contract must be completed within 45 business days of the commissioner's
128.6approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
128.7copy of the signed charter contract within ten business days of its execution. The contract
128.8for a charter school must be in writing and contain at least the following:
128.9(1) a declaration that the charter school will carry out the primary purpose in
128.10subdivision 1 and how the school will report its implementation of the primary purpose;
128.11    (1) (2) a declaration of the additional purpose or purposes in subdivision 1 that the
128.12school intends to carry out and how the school will report its implementation of those
128.13purposes;
128.14    (2) (3) a description of the school program and the specific academic and
128.15nonacademic outcomes that pupils must achieve;
128.16    (3) (4) a statement of admission policies and procedures;
128.17    (4) (5) a governance, management, and administration plan for the school;
128.18    (5) (6) signed agreements from charter school board members to comply with all
128.19federal and state laws governing organizational, programmatic, and financial requirements
128.20applicable to charter schools;
128.21    (6) (7) the criteria, processes, and procedures that the authorizer will use for
128.22ongoing oversight of operational, financial, and academic performance to monitor and
128.23evaluate the fiscal, operational, and academic performance consistent with subdivision
128.2415, paragraphs (a) and (b);
128.25    (7) (8) for contract renewal, the formal written performance evaluation of the school
128.26that is a prerequisite for reviewing a charter contract under subdivision 15;
128.27    (8) (9) types and amounts of insurance liability coverage to be obtained by the
128.28charter school, consistent with subdivision 8, paragraph (k);
128.29    (9) (10) consistent with subdivision 25, paragraph (d), a provision to indemnify and
128.30hold harmless the authorizer and its officers, agents, and employees from any suit, claim,
128.31or liability arising from any operation of the charter school, and the commissioner and
128.32department officers, agents, and employees notwithstanding section 3.736;
128.33    (10) (11) the term of the initial contract, which may be up to five years plus an
128.34additional preoperational planning year, and up to five years for a renewed contract or a
128.35contract with a new authorizer after a transfer of authorizers, if warranted by the school's
128.36academic, financial, and operational performance;
129.1    (11) (12) how the board of directors or the operators of the charter school will
129.2provide special instruction and services for children with a disability under sections
129.3125A.03 to 125A.24, and 125A.65, a description of the financial parameters within
129.4which the charter school will operate to provide the special instruction and services to
129.5children with a disability;
129.6    (12) the process and criteria the authorizer intends to use to monitor and evaluate the
129.7fiscal and student performance of the charter school, consistent with subdivision 15; and
129.8(13) the specific conditions for contract renewal that identify performance under the
129.9primary purpose of subdivision 1 as the most important factor in determining contract
129.10renewal;
129.11(14) the additional purposes under subdivision 1, paragraph (a), and related
129.12performance obligations under clause (7) contained in the charter contract as additional
129.13factors in determining contract renewal; and
129.14    (13) (15) the plan for an orderly closing of the school under chapter 317A, if whether
129.15 the closure is a termination for cause, a voluntary termination, or a nonrenewal of the
129.16contract, and that includes establishing the responsibilities of the school board of directors
129.17and the authorizer and notifying the commissioner, authorizer, school district in which the
129.18charter school is located, and parents of enrolled students about the closure, information
129.19and assistance sufficient to enable the student to re-enroll in another school, the transfer
129.20of student records to students' resident districts under subdivision 8, paragraph (p), and
129.21procedures for closing financial operations.
129.22    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
129.23commissioner and its authorizer by December 31 each year.
129.24    (b) The charter school, with the assistance of the auditor conducting the audit,
129.25must include with the report, as supplemental information, a copy of all charter school
129.26agreements for corporate management services, including parent company or other
129.27administrative, financial, and staffing services. If the entity that provides the professional
129.28services to the charter school is exempt from taxation under section 501 of the Internal
129.29Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy
129.30of the annual return required under section 6033 of the Internal Revenue Code of 1986.
129.31    (c) A charter school independent audit report shall include audited financial data of
129.32an affiliated building corporation or other component unit.
129.33    (c) (d) If the audit report finds that a material weakness exists in the financial
129.34reporting systems of a charter school, the charter school must submit a written report to
129.35the commissioner explaining how the material weakness will be resolved. An auditor,
129.36as a condition of providing financial services to a charter school, must agree to make
130.1available information about a charter school's financial audit to the commissioner and
130.2authorizer upon request.
130.3    Subd. 7. Public status; exemption from statutes and rules. A charter school is
130.4a public school and is part of the state's system of public education. A charter school is
130.5exempt from all statutes and rules applicable to a school, school board, or school district
130.6unless a statute or rule is made specifically applicable to a charter school or is included
130.7in this section.
130.8    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
130.9federal, state, and local health and safety requirements applicable to school districts.
130.10    (b) A school must comply with statewide accountability requirements governing
130.11standards and assessments in chapter 120B.
130.12    (c) A school authorized by a school board may be located in any district, unless the
130.13school board of the district of the proposed location disapproves by written resolution.
130.14    (d) A charter school must be nonsectarian in its programs, admission policies,
130.15employment practices, and all other operations. An authorizer may not authorize a charter
130.16school or program that is affiliated with a nonpublic sectarian school or a religious
130.17institution. A charter school student must be released for religious instruction, consistent
130.18with section 120A.22, subdivision 12, clause (3).
130.19    (e) Charter schools must not be used as a method of providing education or
130.20generating revenue for students who are being home-schooled. This paragraph does not
130.21apply to shared time aid under section 126C.19.
130.22    (f) The primary focus of a charter school must be to provide a comprehensive
130.23program of instruction for at least one grade or age group from five through 18 years
130.24of age. Instruction may be provided to people younger than five years and older than
130.2518 years of age.
130.26    (g) A charter school may not charge tuition.
130.27    (h) A charter school is subject to and must comply with chapter 363A and section
130.28121A.04 .
130.29    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
130.30Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
130.31123B.34 to 123B.39.
130.32    (j) A charter school is subject to the same financial audits, audit procedures, and
130.33audit requirements as a district, except as required under subdivision 6a. Audits must be
130.34conducted in compliance with generally accepted governmental auditing standards, the
130.35federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
130.36to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
131.1118A.05 ; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
131.2the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
131.3necessary because of the program at the school. Deviations must be approved by the
131.4commissioner and authorizer. The Department of Education, state auditor, legislative
131.5auditor, or authorizer may conduct financial, program, or compliance audits. A charter
131.6school determined to be in statutory operating debt under sections 123B.81 to 123B.83
131.7must submit a plan under section 123B.81, subdivision 4.
131.8    (k) A charter school is a district for the purposes of tort liability under chapter 466.
131.9    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
131.10subdivision 7
; 121A.75; and 260B.171, subdivisions 3 and 5.
131.11    (m) A charter school is subject to the Pledge of Allegiance requirement under
131.12section 121A.11, subdivision 3.
131.13    (n) A charter school offering online courses or programs must comply with section
131.14124D.095 .
131.15    (o) A charter school and charter school board of directors are subject to chapter 181.
131.16    (p) A charter school must comply with section 120A.22, subdivision 7, governing
131.17the transfer of students' educational records and sections 138.163 and 138.17 governing
131.18the management of local records.
131.19    (q) A charter school that provides early childhood health and developmental
131.20screening must comply with sections 121A.16 to 121A.19.
131.21    (r) A charter school that provides school-sponsored youth athletic activities must
131.22comply with section 121A.38.
131.23    (s) A charter school is subject to and must comply with continuing truant notification
131.24under section 260A.03.
131.25(t) A charter school must develop and implement a teacher evaluation and peer
131.26review process, under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (12).
131.27(u) A charter school most adopt a policy, plan, budget, and process, consistent with
131.28section 120B.11, to review curriculum, instruction, and student achievement and strive
131.29for the world's best workforce.
131.30    Subd. 8a. Aid reduction. The commissioner may reduce a charter school's state aid
131.31under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
131.32under this section.
131.33    Subd. 8b. Aid reduction for violations. The commissioner may reduce a charter
131.34school's state aid by an amount not to exceed 60 percent of the charter school's basic
131.35revenue for the period of time that a violation of law occurs.
131.36    Subd. 9. Admission requirements. (a) A charter school may limit admission to:
132.1    (1) pupils within an age group or grade level;
132.2    (2) pupils who are eligible to participate in the graduation incentives program under
132.3section 124D.68; or
132.4    (3) residents of a specific geographic area in which the school is located when the
132.5majority of students served by the school are members of underserved populations.
132.6    (b) A charter school shall enroll an eligible pupil who submits a timely application,
132.7unless the number of applications exceeds the capacity of a program, class, grade level, or
132.8building. In this case, pupils must be accepted by lot. The charter school must develop
132.9and publish, including on its Web site, a lottery policy and process that it must use when
132.10accepting pupils by lot.
132.11    (c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
132.12and to a foster child of that pupil's parents and may give preference for enrolling children
132.13of the school's staff before accepting other pupils by lot.
132.14    (d) A person shall not be admitted to a charter school (1) as a kindergarten pupil,
132.15unless the pupil is at least five years of age on September 1 of the calendar year in which
132.16the school year for which the pupil seeks admission commences; or (2) as a first grade
132.17student, unless the pupil is at least six years of age on September 1 of the calendar year in
132.18which the school year for which the pupil seeks admission commences or has completed
132.19kindergarten; except that a charter school may establish and publish on its Web site a
132.20policy for admission of selected pupils at an earlier age, consistent with the enrollment
132.21process in paragraphs (b) and (c).
132.22    (e) Except as permitted in paragraph (d), a charter school may not limit admission
132.23to pupils on the basis of intellectual ability, measures of achievement or aptitude, or
132.24athletic ability and may not establish any criteria or requirements for admission that are
132.25inconsistent with this subdivision.
132.26    (f) The charter school shall not distribute any services or goods of value to students,
132.27parents, or guardians as an inducement, term, or condition of enrolling a student in a
132.28charter school.
132.29    Subd. 10. Pupil performance. A charter school must design its programs to at
132.30least meet the outcomes adopted by the commissioner for public school students. In
132.31the absence of the commissioner's requirements, the school must meet the outcomes
132.32contained in the contract with the authorizer. The achievement levels of the outcomes
132.33contained in the contract may exceed the achievement levels of any outcomes adopted by
132.34the commissioner for public school students.
132.35    Subd. 11. Employment and other operating matters. (a) A charter school must
132.36employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
133.1who hold valid licenses to perform the particular service for which they are employed in
133.2the school. The charter school's state aid may be reduced under section 127A.43 if the
133.3school employs a teacher who is not appropriately licensed or approved by the board of
133.4teaching. The school may employ necessary employees who are not required to hold
133.5teaching licenses to perform duties other than teaching and may contract for other services.
133.6The school may discharge teachers and nonlicensed employees. The charter school board
133.7is subject to section 181.932. When offering employment to a prospective employee, a
133.8charter school must give that employee a written description of the terms and conditions
133.9of employment and the school's personnel policies.
133.10    (b) A person, without holding a valid administrator's license, may perform
133.11administrative, supervisory, or instructional leadership duties. The board of directors shall
133.12establish qualifications for persons that hold administrative, supervisory, or instructional
133.13leadership roles. The qualifications shall include at least the following areas: instruction
133.14and assessment; human resource and personnel management; financial management;
133.15legal and compliance management; effective communication; and board, authorizer, and
133.16community relationships. The board of directors shall use those qualifications as the basis
133.17for job descriptions, hiring, and performance evaluations of those who hold administrative,
133.18supervisory, or instructional leadership roles. The board of directors and an individual
133.19who does not hold a valid administrative license and who serves in an administrative,
133.20supervisory, or instructional leadership position shall develop a professional development
133.21plan. Documentation of the implementation of the professional development plan of these
133.22persons shall be included in the school's annual report.
133.23    (c) The board of directors also shall decide and be responsible for policy matters
133.24related to the operation of the school, including budgeting, curriculum programming,
133.25personnel, and operating procedures. The board shall adopt a policy on nepotism in
133.26employment. The board shall adopt personnel evaluation policies and practices that,
133.27at a minimum:
133.28(1) carry out the school's mission and goals;
133.29(2) evaluate the execution of charter contract goals and commitments;
133.30(3) evaluate student achievement, postsecondary and workforce readiness, and
133.31student engagement and connection goals;
133.32(4) establish a teacher evaluation process under subdivision 8, paragraph (t); and
133.33(5) provide professional development related to the individual's job responsibilities.
133.34    Subd. 12. Pupils with a disability. A charter school must comply with sections
133.35125A.02 , 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
133.36with a disability as though it were a district.
134.1    Subd. 13. Length of school year. A charter school must provide instruction each
134.2year for at least the number of hours required by section 120A.41. It may provide
134.3instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
134.4    Subd. 14. Annual public reports. (a) A charter school must publish an annual report
134.5approved by the board of directors. The annual report must at least include information
134.6on school enrollment, student attrition, governance and management, staffing, finances,
134.7academic performance, operational performance, innovative practices and implementation,
134.8and future plans. A charter school must post the annual report on the school's official
134.9Web site. A charter school must also distribute the annual report by publication, mail, or
134.10electronic means to the commissioner, its authorizer, school employees, and parents and
134.11legal guardians of students enrolled in the charter school and must also post the report on
134.12the charter school's official Web site. The reports are public data under chapter 13.
134.13    (b) The commissioner shall establish specifications for an authorizer's annual public
134.14report that is part of the system to evaluate authorizer performance under subdivision
134.153, paragraph (h). The report shall at least include key indicators of school academic,
134.16operational, and financial performance.
134.17    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
134.18evaluation of the school's performance before the authorizer renews the charter contract.
134.19The department must review and comment on the authorizer's evaluation process at the
134.20time the authorizer submits its application for approval and each time the authorizer
134.21undergoes its five-year review under subdivision 3, paragraph (i) (h).
134.22    (b) An authorizer shall monitor and evaluate the fiscal, academic, financial,
134.23 operational, and student performance of the school, and may for this purpose annually
134.24assess a charter school a fee according to paragraph (c). The agreed-upon fee structure
134.25must be stated in the charter school contract.
134.26    (c) The fee that each charter school pays to an authorizer each year an authorizer
134.27may annually assess is the greater of:
134.28    (1) the basic formula allowance for that year; or
134.29    (2) the lesser of:
134.30    (i) the maximum fee factor times the basic formula allowance for that year; or
134.31    (ii) the fee factor times the basic formula allowance for that year times the charter
134.32school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
134.33year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
134.34and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
134.353.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
135.1    (d) An authorizer may not assess a fee for any required services other than as
135.2provided in this subdivision.
135.3    (e) For the preoperational planning period, after a school is chartered, the authorizer
135.4may assess a charter school a fee equal to the basic formula allowance.
135.5    (f) By September 30 of each year, an authorizer shall submit to the commissioner a
135.6statement of income and expenditures related to chartering activities during the previous
135.7school year ending June 30. A copy of the statement shall be given to all schools chartered
135.8by the authorizer.
135.9    Subd. 16. Transportation. (a) A charter school after its first fiscal year of operation
135.10by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
135.11operation must notify the district in which the school is located and the Department of
135.12Education if it will provide its own transportation or use the transportation services of the
135.13district in which it is located for the fiscal year.
135.14    (b) If a charter school elects to provide transportation for pupils, the transportation
135.15must be provided by the charter school within the district in which the charter school is
135.16located. The state must pay transportation aid to the charter school according to section
135.17124D.11, subdivision 2 .
135.18    For pupils who reside outside the district in which the charter school is located, the
135.19charter school is not required to provide or pay for transportation between the pupil's
135.20residence and the border of the district in which the charter school is located. A parent
135.21may be reimbursed by the charter school for costs of transportation from the pupil's
135.22residence to the border of the district in which the charter school is located if the pupil is
135.23from a family whose income is at or below the poverty level, as determined by the federal
135.24government. The reimbursement may not exceed the pupil's actual cost of transportation
135.25or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
135.26more than 250 miles per week.
135.27    At the time a pupil enrolls in a charter school, the charter school must provide the
135.28parent or guardian with information regarding the transportation.
135.29    (c) If a charter school does not elect to provide transportation, transportation for
135.30pupils enrolled at the school must be provided by the district in which the school is
135.31located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
135.32pupil residing in the same district in which the charter school is located. Transportation
135.33may be provided by the district in which the school is located, according to sections
135.34123B.88, subdivision 6 , and 124D.03, subdivision 8, for a pupil residing in a different
135.35district. If the district provides the transportation, the scheduling of routes, manner and
135.36method of transportation, control and discipline of the pupils, and any other matter relating
136.1to the transportation of pupils under this paragraph shall be within the sole discretion,
136.2control, and management of the district.
136.3    Subd. 17. Leased space. A charter school may lease space from an independent
136.4or special school board eligible to be an authorizer, other public organization, private,
136.5nonprofit nonsectarian organization, private property owner, or a sectarian organization
136.6if the leased space is constructed as a school facility. The department must review and
136.7approve or disapprove leases in a timely manner for purposes of determining eligibility for
136.8lease aid under section 124D.11, subdivision 4.
136.9    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
136.10may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
136.11existing facility to serve as a school or (ii) to expand an existing building or construct
136.12a new school facility, an authorizer must submit an affidavit to the commissioner for
136.13approval in the form and manner the commissioner prescribes, and consistent with
136.14paragraphs (b) and (c) or (d).
136.15    (b) An affiliated nonprofit building corporation under this subdivision must:
136.16    (1) be incorporated under section 317A;
136.17    (2) comply with applicable Internal Revenue Service regulations, including
136.18regulations for "supporting organizations" as defined by the Internal Revenue Service;
136.19    (3) submit to the commissioner each fiscal year a list of current board members
136.20and a copy of its annual audit; and
136.21    (4) comply with government data practices law under chapter 13.
136.22An affiliated nonprofit building corporation must not serve as the leasing agent for
136.23property or facilities it does not own. A charter school that leases a facility from an
136.24affiliated nonprofit building corporation that does not own the leased facility is ineligible
136.25to receive charter school lease aid. The state is immune from liability resulting from a
136.26contract between a charter school and an affiliated nonprofit building corporation.
136.27    (c) A charter school may organize an affiliated nonprofit building corporation to
136.28renovate or purchase an existing facility to serve as a school if the charter school:
136.29    (1) has been operating for at least five consecutive school years;
136.30    (2) has had a net positive unreserved general fund balance as of June 30 in the
136.31preceding five fiscal years;
136.32    (3) has a long-range strategic and financial plan;
136.33    (4) completes a feasibility study of available buildings;
136.34    (5) documents enrollment projections and the need to use an affiliated building
136.35corporation to renovate or purchase an existing facility to serve as a school; and
137.1(6) has a plan for the renovation or purchase, which describes the parameters and
137.2budget for the project.
137.3    (d) A charter school may organize an affiliated nonprofit building corporation to
137.4expand an existing school facility or construct a new school facility if the charter school:
137.5    (1) demonstrates the lack of facilities available to serve as a school;
137.6    (2) has been operating for at least eight consecutive school years;
137.7    (3) has had a net positive unreserved general fund balance as of June 30 in the
137.8preceding five fiscal years;
137.9    (4) completes a feasibility study of facility options;
137.10    (5) has a long-range strategic and financial plan that includes enrollment projections
137.11and demonstrates the need for constructing a new school facility; and
137.12    (6) has a plan for the expansion or new school facility, which describes the
137.13parameters and budget for the project.
137.14    Subd. 17b. Positive review and comment. (e) A charter school or an affiliated
137.15nonprofit building corporation organized by a charter school must not initiate an
137.16installment contract for purchase, or a lease agreement, or solicit bids for new construction,
137.17expansion, or remodeling of an educational facility that requires an expenditure in
137.18excess of $1,400,000, unless it meets the criteria in subdivision 17a, paragraph (b) and
137.19paragraph (c) or (d), as applicable, and receives a positive review and comment from
137.20the commissioner under section 123B.71.
137.21    Subd. 19. Disseminate information. (a) The authorizer, the operators, Authorizers
137.22 and the department must disseminate information to the public on how to form and
137.23operate a charter school. Charter schools must disseminate information about how to
137.24use the offerings of a charter school. Targeted groups include low-income families and
137.25communities, students of color, and students who are at risk of academic failure.
137.26    (b) Authorizers, operators, and the department also may disseminate information
137.27about the successful best practices in teaching and learning demonstrated by charter
137.28schools.
137.29    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
137.30makes a written request for an extended leave of absence to teach at a charter school,
137.31the district must grant the leave. The district must grant a leave not to exceed a total of
137.32five years. Any request to extend the leave shall be granted only at the discretion of the
137.33school board. The district may require that the request for a leave or extension of leave
137.34be made before February 1 in the school year preceding the school year in which the
137.35teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is
137.36scheduled to terminate. Except as otherwise provided in this subdivision and except for
138.1section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but
138.2not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
138.3    During a leave, the teacher may continue to aggregate benefits and credits in the
138.4Teachers' Retirement Association account under chapters 354 and 354A, consistent with
138.5subdivision 22.
138.6    Subd. 21. Collective bargaining. Employees of the board of directors of a charter
138.7school may, if otherwise eligible, organize under chapter 179A and comply with its
138.8provisions. The board of directors of a charter school is a public employer, for the
138.9purposes of chapter 179A, upon formation of one or more bargaining units at the school.
138.10Bargaining units at the school must be separate from any other units within an authorizing
138.11district, except that bargaining units may remain part of the appropriate unit within an
138.12authorizing district, if the employees of the school, the board of directors of the school,
138.13the exclusive representative of the appropriate unit in the authorizing district, and the
138.14board of the authorizing district agree to include the employees in the appropriate unit of
138.15the authorizing district.
138.16    Subd. 22. Teacher and other employee retirement. (a) Teachers in a charter
138.17school must be public school teachers for the purposes of chapters 354 and 354A.
138.18    (b) Except for teachers under paragraph (a), employees in a charter school must be
138.19public employees for the purposes of chapter 353.
138.20    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
138.21The duration of the contract with an authorizer must be for the term contained in the
138.22contract according to subdivision 6. The authorizer may or may not renew a contract at
138.23the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
138.24terminate a contract during the term of the contract for any ground listed in paragraph (b).
138.25At least 60 business days before not renewing or terminating a contract, the authorizer
138.26shall notify the board of directors of the charter school of the proposed action in writing.
138.27The notice shall state the grounds for the proposed action in reasonable detail and that the
138.28charter school's board of directors may request in writing an informal hearing before the
138.29authorizer within 15 business days of receiving notice of nonrenewal or termination of
138.30the contract. Failure by the board of directors to make a written request for an informal
138.31hearing within the 15-business-day period shall be treated as acquiescence to the proposed
138.32action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
138.33business days' notice to the charter school's board of directors of the hearing date. The
138.34authorizer shall conduct an informal hearing before taking final action. The authorizer
138.35shall take final action to renew or not renew a contract no later than 20 business days
138.36before the proposed date for terminating the contract or the end date of the contract.
139.1    (b) A contract may be terminated or not renewed upon any of the following grounds:
139.2    (1) failure to meet demonstrate satisfactory academic achievement for all students,
139.3including the requirements for pupil performance contained in the contract;
139.4    (2) failure to meet generally accepted standards of fiscal management;
139.5    (3) violations of law; or
139.6    (4) other good cause shown.
139.7    If a contract is terminated or not renewed under this paragraph, the school must be
139.8dissolved according to the applicable provisions of chapter 317A.
139.9    (c) If the authorizer and the charter school board of directors mutually agree to
139.10terminate or not renew the contract, a change in authorizers is allowed if the commissioner
139.11approves the change to a different eligible authorizer to authorize the charter school.
139.12Both parties must jointly submit their intent in writing to the commissioner to mutually
139.13terminate the contract. The authorizer that is a party to the existing contract must inform
139.14the proposed authorizer about the fiscal and operational status and student performance
139.15of the school. Before the commissioner determines whether to approve a change in
139.16authorizer, the proposed authorizer must identify any outstanding issues in the proposed
139.17charter contract that were unresolved in the previous charter contract and have the charter
139.18school agree to resolve those issues. If no change in authorizer is approved, the school
139.19must be dissolved according to applicable law and the terms of the contract.
139.20    (c) If the authorizer and the charter school board of directors mutually agree not to
139.21renew the contract, a change in authorizers is allowed. The authorizer and the school
139.22board must jointly submit a written and signed letter of their intent to the commissioner
139.23to mutually not renew the contract. The authorizer that is a party to the existing contract
139.24must inform the proposed authorizer about the fiscal, operational, and student performance
139.25status of the school, as well as any outstanding contractual obligations that exist. The
139.26charter contract between the proposed authorizer and the school must identify and provide
139.27a plan to address any outstanding obligations from the previous contract. The proposed
139.28contract must be submitted at least 105 business days before the end of the existing
139.29charter contract. The commissioner shall have 30 business days to review and make a
139.30determination. The proposed authorizer and the school shall have 15 business days to
139.31respond to the determination and address any issues identified by the commissioner. A
139.32final determination by the commissioner shall be made no later than 45 business days
139.33before the end of the current charter contract. If no change in authorizer is approved, the
139.34school and the current authorizer may withdraw their letter of nonrenewal and enter into a
139.35new contract. If the transfer of authorizers is not approved and the current authorizer and
140.1the school do not withdraw their letter and enter into a new contract, the school must be
140.2dissolved according to applicable law and the terms of the contract.
140.3    (d) The commissioner, after providing reasonable notice to the board of directors of
140.4a charter school and the existing authorizer, and after providing an opportunity for a public
140.5hearing, may terminate the existing contract between the authorizer and the charter school
140.6board if the charter school has a history of:
140.7    (1) failure to meet pupil performance requirements consistent with state law;
140.8    (2) financial mismanagement or failure to meet generally accepted standards of
140.9fiscal management; or
140.10    (3) repeated or major violations of the law.
140.11    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
140.12entering a lease of real property with a related party unless the lessor is a nonprofit
140.13corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
140.14reasonable under section 124D.11, subdivision 4, clause (1).
140.15    (b) For purposes of this section and section 124D.11:
140.16    (1) "related party" means an affiliate or immediate relative of the other party in
140.17question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
140.18    (2) "affiliate" means a person that directly or indirectly, through one or more
140.19intermediaries, controls, is controlled by, or is under common control with another person;
140.20    (3) "immediate family" means an individual whose relationship by blood, marriage,
140.21adoption, or partnering is no more remote than first cousin;
140.22    (4) "person" means an individual or entity of any kind; and
140.23    (5) "control" means the ability to affect the management, operations, or policy
140.24actions or decisions of a person, whether through ownership of voting securities, by
140.25contract, or otherwise.
140.26    (c) A lease of real property to be used for a charter school, not excluded in paragraph
140.27(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
140.28section 124D.10, subdivision 23a."
140.29    (d) If a charter school enters into as lessee a lease with a related party and the
140.30charter school subsequently closes, the commissioner has the right to recover from the
140.31lessor any lease payments in excess of those that are reasonable under section 124D.11,
140.32subdivision 4
, clause (1).
140.33    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
140.34contract. If a contract is not renewed or is terminated according to subdivision 23, a
140.35pupil who attended the school, siblings of the pupil, or another pupil who resides in the
140.36same place as the pupil may enroll in the resident district or may submit an application
141.1to a nonresident district according to section 124D.03 at any time. Applications and
141.2notices required by section 124D.03 must be processed and provided in a prompt manner.
141.3The application and notice deadlines in section 124D.03 do not apply under these
141.4circumstances. The closed charter school must transfer the student's educational records
141.5within ten business days of closure to the student's school district of residence where the
141.6records must be retained or transferred under section 120A.22, subdivision 7.
141.7    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
141.8school may sue and be sued.
141.9    (b) The board may not levy taxes or issue bonds.
141.10    (c) The commissioner, an authorizer, members of the board of an authorizer in
141.11their official capacity, and employees of an authorizer are immune from civil or criminal
141.12liability with respect to all activities related to a charter school they approve or authorize.
141.13The board of directors shall obtain at least the amount of and types of insurance up to the
141.14applicable tort liability limits under chapter 466. The charter school board must submit
141.15a copy of the insurance policy to its authorizer and the commissioner before starting
141.16operations. The charter school board must submit changes in its insurance carrier or policy
141.17to its authorizer and the commissioner within 20 business days of the change.
141.18(d) Notwithstanding section 3.736, the charter school shall assume full liability for
141.19its activities and indemnify and hold harmless the authorizer and its officers, agents, and
141.20employees from any suit, claim, or liability arising from any operation of the charter school
141.21and the commissioner and department officers, agents, and employees. A charter school
141.22is not required to indemnify or hold harmless a state employee if the state would not be
141.23required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
141.24    Subd. 27. Collaboration between charter school and school district. (a) A charter
141.25school board may voluntarily enter into a two-year, renewable agreement for collaboration
141.26to enhance student achievement with a school district within whose geographic boundary
141.27it operates.
141.28(b) A school district need not be an approved authorizer to enter into a collaboration
141.29agreement with a charter school. A charter school need not be authorized by the school
141.30district with which it seeks to collaborate.
141.31(c) A charter school authorizer is prohibited from requiring a collaboration agreement
141.32as a condition of entering into or renewing a charter contract as defined in subdivision 6.
141.33(d) Nothing in this subdivision or in the collaboration agreement may impact in any
141.34way the authority or autonomy of the charter school.
142.1(e) Nothing in this subdivision or in the collaboration agreement shall cause the state
142.2to pay twice for the same student, service, or facility or otherwise impact state funding, or
142.3the flow thereof, to the school district or the charter school.
142.4(f) The collaboration agreement may include, but need not be limited to,
142.5collaboration regarding facilities, transportation, training, student achievement,
142.6assessments, mutual performance standards, and other areas of mutual agreement.
142.7(g) The school district may include the academic performance of the students of a
142.8collaborative charter school site operating within the geographic boundaries of the school
142.9district, for purposes of student assessment and reporting to the state.
142.10(h) Districts, authorizers, or charter schools entering into a collaborative agreement
142.11are equally and collectively subject to the same state and federal accountability measures
142.12for student achievement, school performance outcomes, and school improvement
142.13strategies. The collaborative agreement and all accountability measures must be posted
142.14on the district, charter school, and authorizer Web sites.
142.15EFFECTIVE DATE.This section is effective July 1, 2013, except subdivision 6 is
142.16effective August 1, 2013.

142.17    Sec. 2. Minnesota Statutes 2012, section 124D.11, subdivision 1, is amended to read:
142.18    Subdivision 1. General education revenue. (a) General education revenue must
142.19be paid to a charter school as though it were a district. The general education revenue
142.20for each adjusted marginal cost pupil unit is the state average general education revenue
142.21per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
142.22residence, minus an amount equal to the product of the formula allowance according to
142.23section 126C.10, subdivision 2, times .0485 .0466, calculated without basic skills revenue,
142.24extended time revenue, alternative teacher compensation revenue, pension adjustment
142.25revenue, transition revenue, and transportation sparsity revenue, plus basic skills revenue,
142.26extended time revenue, basic alternative teacher compensation aid according to section
142.27126C.10, subdivision 34, pension adjustment revenue, and transition revenue as though
142.28the school were a school district. The general education revenue for each extended time
142.29marginal cost pupil unit equals $4,378 $4,794.
142.30(b) Notwithstanding paragraph (a), for charter schools in the first year of operation,
142.31general education revenue shall be computed using the number of adjusted pupil units
142.32in the current fiscal year.
142.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
142.34and later.

143.1    Sec. 3. Minnesota Statutes 2012, section 124D.11, subdivision 2, is amended to read:
143.2    Subd. 2. Transportation revenue. Transportation revenue must be paid to a charter
143.3school that provides transportation services according to section 124D.10, subdivision 16,
143.4according to this subdivision. Transportation aid shall equal transportation revenue.
143.5In addition to the revenue under subdivision 1, a charter school providing
143.6transportation services must receive general education aid equal to the sum of the product
143.7of (i) an amount equal to the product of the formula allowance according to section
143.8126C.10, subdivision 2 , times .0485 .0466, plus the transportation sparsity allowance for
143.9the school district in which the charter school is located times (ii) the adjusted marginal
143.10cost pupil units, plus the product of $223 times the extended time marginal cost pupil units.
143.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
143.12and later.

143.13    Sec. 4. Minnesota Statutes 2012, section 124D.11, subdivision 4, is amended to read:
143.14    Subd. 4. Building lease aid. (a) When a charter school finds it economically
143.15advantageous to rent or lease a building or land for any instructional purposes and it
143.16determines that the total operating capital revenue under section 126C.10, subdivision 13,
143.17is insufficient for this purpose, it may apply to the commissioner for building lease aid
143.18for this purpose. The commissioner must review and either approve or deny a lease aid
143.19application using the following criteria:
143.20(1) the reasonableness of the price based on current market values;
143.21(2) the extent to which the lease conforms to applicable state laws and rules; and
143.22(3) the appropriateness of the proposed lease in the context of the space needs and
143.23financial circumstances of the charter school. The commissioner must approve aid only
143.24for a facility lease that has (i) a sum certain annual cost and (ii) an escape clause the
143.25charter school may exercise if its charter contract is terminated or not renewed.
143.26A charter school must not use the building lease aid it receives for custodial, maintenance
143.27service, utility, or other operating costs.
143.28    (b) The amount of annual building lease aid per pupil unit served for a charter school
143.29for any year shall not exceed the lesser of (a) (1) 90 percent of the approved cost or (b) (2)
143.30 the product of the pupil units served for the current school year times $1,200 $1,314.
143.31EFFECTIVE DATE.This section is effective July 1, 2014.

143.32    Sec. 5. Minnesota Statutes 2012, section 260A.02, subdivision 3, is amended to read:
144.1    Subd. 3. Continuing truant. "Continuing truant" means a child who is subject to the
144.2compulsory instruction requirements of section 120A.22 and is absent from instruction in a
144.3school, as defined in section 120A.05, without valid excuse within a single school year for:
144.4(1) three days if the child is in elementary school; or
144.5(2) three or more class periods on three days if the child is in middle school, junior
144.6high school, or high school.
144.7Nothing in this section shall prevent a school district or charter school from notifying
144.8a truant child's parent or legal guardian of the child's truancy or otherwise addressing a
144.9child's attendance problems prior to the child becoming a continuing truant.

144.10    Sec. 6. Minnesota Statutes 2012, section 260A.03, is amended to read:
144.11260A.03 NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A
144.12CONTINUING TRUANT.
144.13Upon a child's initial classification as a continuing truant, the school attendance
144.14officer or other designated school official shall notify the child's parent or legal guardian,
144.15by first-class mail or other reasonable means, of the following:
144.16(1) that the child is truant;
144.17(2) that the parent or guardian should notify the school if there is a valid excuse
144.18for the child's absences;
144.19(3) that the parent or guardian is obligated to compel the attendance of the child
144.20at school pursuant to section 120A.22 and parents or guardians who fail to meet this
144.21obligation may be subject to prosecution under section 120A.34;
144.22(4) that this notification serves as the notification required by section 120A.34;
144.23(5) that alternative educational programs and services may be available in the child's
144.24enrolling or resident district;
144.25(6) that the parent or guardian has the right to meet with appropriate school personnel
144.26to discuss solutions to the child's truancy;
144.27(7) that if the child continues to be truant, the parent and child may be subject to
144.28juvenile court proceedings under chapter 260C;
144.29(8) that if the child is subject to juvenile court proceedings, the child may be subject
144.30to suspension, restriction, or delay of the child's driving privilege pursuant to section
144.31260C.201 ; and
144.32(9) that it is recommended that the parent or guardian accompany the child to school
144.33and attend classes with the child for one day.

144.34    Sec. 7. Minnesota Statutes 2012, section 260A.05, subdivision 1, is amended to read:
145.1    Subdivision 1. Establishment. A school district or charter school may establish
145.2one or more school attendance review boards to exercise the powers and duties in this
145.3section. The school district or charter school board shall appoint the members of the
145.4school attendance review board and designate the schools within the board's jurisdiction.
145.5Members of a school attendance review board may include:
145.6(1) the superintendent of the school district or the superintendent's designee or
145.7charter school director or the director's designee;
145.8(2) a principal and one or more other school officials from within the district or
145.9charter school;
145.10(3) parent representatives;
145.11(4) representatives from community agencies that provide services for truant
145.12students and their families;
145.13(5) a juvenile probation officer;
145.14(6) school counselors and attendance officers; and
145.15(7) law enforcement officers.

145.16    Sec. 8. Minnesota Statutes 2012, section 260A.07, subdivision 1, is amended to read:
145.17    Subdivision 1. Establishment; referrals. A county attorney may establish a truancy
145.18mediation program for the purpose of resolving truancy problems without court action. If
145.19a student is in a school district or charter school that has established a school attendance
145.20review board, the student may be referred to the county attorney under section 260A.06,
145.21subdivision 3
. If the student's school district or charter school has not established a board,
145.22the student may be referred to the county attorney by the school district or charter school
145.23if the student continues to be truant after the parent or guardian has been sent or conveyed
145.24the notice under section 260A.03.

145.25    Sec. 9. APPROPRIATIONS.
145.26    Subdivision 1. Department. The sums indicated in this section are appropriated
145.27from the general fund to the Department of Education for the fiscal years designated.
145.28    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
145.29Statutes, section 124D.11, subdivision 4:
145.30
$
54,484,000
.....
2014
145.31
$
59,533,000
.....
2015
145.32The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 for 2014.
145.33The 2015 appropriation includes $7,502,000 for 2014 and $52,031,000 for 2015.

146.1    Sec. 10. REVISOR'S INSTRUCTION; CHARTER SCHOOLS
146.2RECODIFICATION.
146.3The revisor of statutes, in consultation with K-12 education staff in House Research
146.4and Senate Counsel and Research, shall prepare a recodification of Minnesota Statutes,
146.5sections 124D.10 and 124D.11, including corresponding technical corrections and other
146.6needed technical changes and shall submit the completed recodification to the chairs and
146.7ranking minority members of the legislative committees having jurisdiction over K-12
146.8education policy and finance.

146.9
ARTICLE 5
146.10SPECIAL PROGRAMS

146.11    Section 1. Minnesota Statutes 2012, section 15.059, subdivision 5b, is amended to read:
146.12    Subd. 5b. Continuation dependent on federal law. Notwithstanding this section,
146.13the following councils and committees do not expire unless federal law no longer requires
146.14the existence of the council or committee:
146.15(1) Rehabilitation Council for the Blind, created in section 248.10;
146.16(2) Juvenile Justice Advisory Committee, created in section 299A.72;
146.17(3) Governor's Workforce Development Council, created in section 116L.665;
146.18(4) local workforce councils, created in section 116L.666, subdivision 2;
146.19(5) Rehabilitation Council, created in section 268A.02, subdivision 2; and
146.20(6) Statewide Independent Living Council, created in section 268A.02, subdivision
146.212
; and
146.22(7) Interagency Coordinating Council, created in section 125A.28.

146.23    Sec. 2. Minnesota Statutes 2012, section 124D.11, subdivision 5, is amended to read:
146.24    Subd. 5. Special education aid. (a) Except as provided in subdivision 2, special
146.25education aid must be paid to a charter school according to section 125A.76, as though
146.26it were a school district.
146.27(b) For fiscal year 2006, the charter school may charge tuition to the district of
146.28residence as follows:
146.29(1) if the charter school does not receive general education revenue on behalf of
146.30the student according to subdivision 1, tuition shall be charged as provided in section
146.31125A.11; or
146.32(2) if the charter school receives general education revenue on behalf of the student
146.33according to subdivision 1, tuition shall be charged as provided in section 127A.47,
146.34subdivision 7
, paragraph (d).
147.1(c) (b) For fiscal year 2007 2015 and later, the special education aid paid to the
147.2charter school shall be adjusted as follows:
147.3(1) if the charter school does not receive general education revenue on behalf of
147.4the student according to subdivision 1, the aid shall be adjusted as provided in section
147.5125A.11 ; or
147.6(2) if the charter school receives general education revenue on behalf of the student
147.7according to subdivision 1, the aid shall be adjusted as provided in section 127A.47,
147.8subdivision 7
, paragraph paragraphs (b) to (d).
147.9EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

147.10    Sec. 3. Minnesota Statutes 2012, section 125A.0941, is amended to read:
147.11125A.0941 DEFINITIONS.
147.12(a) The following terms have the meanings given them.
147.13(b) "Emergency" means a situation where immediate intervention is needed to
147.14protect a child or other individual from physical injury or to prevent serious property
147.15damage. Emergency does not mean circumstances such as: a child who does not respond
147.16to a task or request and instead places his or her head on a desk or hides under a desk or
147.17table; a child who does not respond to a staff person's request unless failing to respond
147.18would result in physical injury to the child or other individual; or an emergency incident
147.19has already occurred and no threat of physical injury currently exists.
147.20(c) "Physical holding" means physical intervention intended to hold a child immobile
147.21or limit a child's movement, where body contact is the only source of physical restraint,
147.22and where immobilization is used to effectively gain control of a child in order to protect
147.23the a child or other person individual from physical injury. The term physical holding does
147.24not mean physical contact that:
147.25(1) helps a child respond or complete a task;
147.26(2) assists a child without restricting the child's movement;
147.27(3) is needed to administer an authorized health-related service or procedure; or
147.28(4) is needed to physically escort a child when the child does not resist or the child's
147.29resistance is minimal.
147.30(d) "Positive behavioral interventions and supports" means interventions and
147.31strategies to improve the school environment and teach children the skills to behave
147.32appropriately.
147.33(e) "Prone restraint" means placing a child in a face down position.
148.1(f) "Restrictive procedures" means the use of physical holding or seclusion in an
148.2emergency. Restrictive procedures must not be used to punish or otherwise discipline a
148.3child.
148.4(g) "Seclusion" means confining a child alone in a room from which egress is barred.
148.5Egress may be barred by an adult locking or closing the door in the room or preventing the
148.6child from leaving the room. Removing a child from an activity to a location where the
148.7child cannot participate in or observe the activity is not seclusion.
148.8EFFECTIVE DATE.This section is effective July 1, 2013.

148.9    Sec. 4. Minnesota Statutes 2012, section 125A.0942, is amended to read:
148.10125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
148.11    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
148.12restrictive procedures shall maintain and make publicly accessible in an electronic format
148.13on a school or district Web site or make a paper copy available upon request describing a
148.14restrictive procedures plan for children with disabilities that includes at least the following:
148.15(1) lists the list of restrictive procedures the school intends to use;
148.16(2) describes how the school will implement a range of positive behavior strategies
148.17and provide links to mental health services;
148.18(3) describes how the school will monitor and review the use of restrictive
148.19procedures, including:
148.20(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
148.21clause (5); and
148.22(ii) convening an oversight committee to undertake a quarterly review of the use
148.23of restrictive procedures based on patterns or problems indicated by similarities in the
148.24time of day, day of the week, duration of the use of a procedure, the individuals involved,
148.25or other factors associated with the use of restrictive procedures; the number of times a
148.26restrictive procedure is used schoolwide and for individual children; the number and types
148.27of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
148.28procedures are used in nonemergency situations; the need for additional staff training; and
148.29proposed actions to minimize the use of restrictive procedures; and
148.30(3) (4) includes a written description and documentation of the training staff
148.31completed under subdivision 5.
148.32(b) Schools annually must publicly identify oversight committee members who
148.33must at least include:
148.34(1) a mental health professional, school psychologist, or school social worker;
149.1(2) an expert in positive behavior strategies;
149.2(3) a special education administrator; and
149.3(4) a general education administrator.
149.4    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
149.5by a licensed special education teacher, school social worker, school psychologist,
149.6behavior analyst certified by the National Behavior Analyst Certification Board, a person
149.7with a master's degree in behavior analysis, other licensed education professional,
149.8paraprofessional under section 120B.363, or mental health professional under section
149.9245.4871, subdivision 27 , who has completed the training program under subdivision 5.
149.10(b) A school shall make reasonable efforts to notify the parent on the same day a
149.11restrictive procedure is used on the child, or if the school is unable to provide same-day
149.12notice, notice is sent within two days by written or electronic means or as otherwise
149.13indicated by the child's parent under paragraph (d).
149.14(c) When restrictive procedures are used twice in 30 days or when a pattern emerges
149.15and restrictive procedures are not included in a child's individualized education program
149.16or behavior intervention plan, The district must hold a meeting of the individualized
149.17education program team, conduct or review a functional behavioral analysis, review data,
149.18consider developing additional or revised positive behavioral interventions and supports,
149.19consider actions to reduce the use of restrictive procedures, and modify the individualized
149.20education program or behavior intervention plan as appropriate. The district must hold
149.21the meeting: within ten calendar days after district staff use restrictive procedures on two
149.22separate school days within 30 calendar days or a pattern of use emerges and the child's
149.23individualized education program or behavior intervention plan does not provide for using
149.24restrictive procedures in an emergency; or at the request of a parent or the district after
149.25restrictive procedures are used. The district must review use of restrictive procedures at a
149.26child's annual individualized education program meeting when the child's individualized
149.27education program provides for using restrictive procedures in an emergency.
149.28(d) If the individualized education program team under paragraph (c) determines
149.29that existing interventions and supports are ineffective in reducing the use of restrictive
149.30procedures or the district uses restrictive procedures on a child on ten or more school days
149.31during the same school year, the team, as appropriate, either must consult with other
149.32professionals working with the child; consult with experts in behavior analysis, mental
149.33health, communication, or autism; consult with culturally competent professionals;
149.34review existing evaluations, resources, and successful strategies; or consider whether to
149.35reevaluate the child.
150.1(e) At the individualized education program meeting under paragraph (c), the team
150.2must review any known medical or psychological limitations, including any medical
150.3information the parent provides voluntarily, that contraindicate the use of a restrictive
150.4procedure, consider whether to prohibit that restrictive procedure, and document any
150.5prohibition in the individualized education program or behavior intervention plan.
150.6(d) (f) An individualized education program team may plan for using restrictive
150.7procedures and may include these procedures in a child's individualized education
150.8program or behavior intervention plan; however, the restrictive procedures may be used
150.9only in response to behavior that constitutes an emergency, consistent with this section.
150.10The individualized education program or behavior intervention plan shall indicate how the
150.11parent wants to be notified when a restrictive procedure is used.
150.12    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
150.13used only in an emergency. A school that uses physical holding or seclusion shall meet the
150.14following requirements:
150.15(1) the physical holding or seclusion must be is the least intrusive intervention
150.16that effectively responds to the emergency;
150.17(2) physical holding or seclusion is not used to discipline a noncompliant child;
150.18(3) physical holding or seclusion must end ends when the threat of harm ends and
150.19the staff determines that the child can safely return to the classroom or activity;
150.20(3) (4) staff must directly observe observes the child while physical holding or
150.21seclusion is being used;
150.22(4) (5) each time physical holding or seclusion is used, the staff person who
150.23implements or oversees the physical holding or seclusion shall document documents, as
150.24soon as possible after the incident concludes, the following information:
150.25(i) a description of the incident that led to the physical holding or seclusion;
150.26(ii) why a less restrictive measure failed or was determined by staff to be
150.27inappropriate or impractical;
150.28(iii) the time the physical holding or seclusion began and the time the child was
150.29released; and
150.30(iv) a brief record of the child's behavioral and physical status;
150.31(5) (6) the room used for seclusion must:
150.32(i) be at least six feet by five feet;
150.33(ii) be well lit, well ventilated, adequately heated, and clean;
150.34(iii) have a window that allows staff to directly observe a child in seclusion;
150.35(iv) have tamperproof fixtures, electrical switches located immediately outside the
150.36door, and secure ceilings;
151.1(v) have doors that open out and are unlocked, locked with keyless locks that
151.2have immediate release mechanisms, or locked with locks that have immediate release
151.3mechanisms connected with a fire and emergency system; and
151.4(vi) not contain objects that a child may use to injure the child or others;
151.5(6) (7) before using a room for seclusion, a school must:
151.6(i) receive written notice from local authorities that the room and the locking
151.7mechanisms comply with applicable building, fire, and safety codes; and
151.8(ii) register the room with the commissioner, who may view that room; and
151.9(7) (8) until August 1, 2013 2015, a school district may use prone restraints with
151.10children age five or older under the following conditions if:
151.11(i) a the district has provided to the department a list of staff who have had specific
151.12training on the use of prone restraints;
151.13(ii) a the district provides information on the type of training that was provided
151.14and by whom;
151.15(iii) prone restraints may only be used by staff who have received specific training
151.16 use prone restraints;
151.17(iv) each incident of the use of prone restraints is reported to the department within
151.18five working days on a form provided by the department; and
151.19(v) a the district, prior to before using prone restraints, must review any known
151.20medical or psychological limitations that contraindicate the use of prone restraints.
151.21The department will report back to the chairs and ranking minority members of the
151.22legislative committees with primary jurisdiction over education policy by February
151.231, 2013, on the use of prone restraints in the schools. Consistent with item (iv), The
151.24department must collect data on districts' use of prone restraints and publish the data in a
151.25readily accessible format on the department's Web site on a quarterly basis.
151.26(b) The department must develop a statewide plan by February 1, 2013, to reduce
151.27districts' use of restrictive procedures that includes By March 1, 2014, stakeholders must
151.28recommend to the commissioner specific and measurable implementation and outcome
151.29goals for reducing the use of restrictive procedures and the commissioner must submit to
151.30the legislature a report on districts' progress in reducing the use of restrictive procedures
151.31that recommends how to further reduce these procedures and eliminate the use of prone
151.32restraints. The statewide plan includes the following components: measurable goals; the
151.33resources, training, technical assistance, mental health services, and collaborative efforts
151.34needed to significantly reduce districts' use of prone restraints; and recommendations
151.35to clarify and improve the law governing districts' use of restrictive procedures. The
151.36department must convene commissioner must consult with interested stakeholders to
152.1develop the statewide plan and identify the need for technical assistance when preparing
152.2the report, including representatives of advocacy organizations, special education directors,
152.3teachers, paraprofessionals, intermediate school districts, school boards, day treatment
152.4providers, county social services, state human services department staff, mental health
152.5professionals, and autism experts. To assist the department and stakeholders under this
152.6paragraph, school districts must report summary data to the department by July 1, 2012,
152.7on districts' use of restrictive procedures during the 2011-2012 school year, including data
152.8on the number of incidents involving restrictive procedures, the total number of students
152.9on which restrictive procedures were used, the number of resulting injuries, relevant
152.10demographic data on the students and school, and other relevant data collected by the
152.11district. By June 30 each year, districts must report summary data on their use of restrictive
152.12procedures to the department, in a form and manner determined by the commissioner.
152.13    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
152.14(1) engaging in conduct prohibited under section 121A.58;
152.15(2) requiring a child to assume and maintain a specified physical position, activity,
152.16or posture that induces physical pain;
152.17(3) totally or partially restricting a child's senses as punishment;
152.18(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
152.19substance, or spray as punishment;
152.20(5) denying or restricting a child's access to equipment and devices such as walkers,
152.21wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
152.22except when temporarily removing the equipment or device is needed to prevent injury
152.23to the child or others or serious damage to the equipment or device, in which case the
152.24equipment or device shall be returned to the child as soon as possible;
152.25(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
152.26physical abuse under section 626.556;
152.27(7) withholding regularly scheduled meals or water;
152.28(8) denying access to bathroom facilities; and
152.29(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
152.30impairs a child's ability to communicate distress, places pressure or weight on a child's
152.31head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
152.32straddling a child's torso.
152.33    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1, staff
152.34who use restrictive procedures, including paraprofessionals, shall complete training in
152.35the following skills and knowledge areas:
152.36(1) positive behavioral interventions;
153.1(2) communicative intent of behaviors;
153.2(3) relationship building;
153.3(4) alternatives to restrictive procedures, including techniques to identify events and
153.4environmental factors that may escalate behavior;
153.5(5) de-escalation methods;
153.6(6) standards for using restrictive procedures only in an emergency;
153.7(7) obtaining emergency medical assistance;
153.8(8) the physiological and psychological impact of physical holding and seclusion;
153.9(9) monitoring and responding to a child's physical signs of distress when physical
153.10holding is being used; and
153.11(10) recognizing the symptoms of and interventions that may cause positional
153.12asphyxia when physical holding is used.;
153.13(11) district policies and procedures for timely reporting and documenting each
153.14incident involving use of a restricted procedure; and
153.15(12) schoolwide programs on positive behavior strategies.
153.16(b) The commissioner, after consulting with the commissioner of human services,
153.17must develop and maintain a list of training programs that satisfy the requirements of
153.18paragraph (a). The commissioner also must develop and maintain a list of experts to
153.19help individualized education program teams reduce the use of restrictive procedures.
153.20The district shall maintain records of staff who have been trained and the organization
153.21or professional that conducted the training. The district may collaborate with children's
153.22community mental health providers to coordinate trainings.
153.23    Subd. 6. Behavior supports. School districts are encouraged to establish effective
153.24schoolwide systems of positive behavior interventions and supports. Nothing in this
153.25section or section 125A.0941 precludes the use of reasonable force under sections
153.26121A.582 ; 609.06, subdivision 1; and 609.379.
153.27EFFECTIVE DATE.This section is effective July 1, 2013.

153.28    Sec. 5. Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:
153.29    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006,
153.30when a school district provides instruction and services outside the district of residence,
153.31board and lodging, and any tuition to be paid, shall be paid by the district of residence.
153.32The tuition rate to be charged for any child with a disability, excluding a pupil for whom
153.33tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
153.34the sum of (1) the actual cost of providing special instruction and services to the child
153.35including a proportionate amount for special transportation and unreimbursed building
154.1lease and debt service costs for facilities used primarily for special education, plus (2)
154.2the amount of general education revenue and referendum aid attributable to the pupil,
154.3minus (3) the amount of special education aid for children with a disability received
154.4on behalf of that child, minus (4) if the pupil receives special instruction and services
154.5outside the regular classroom for more than 60 percent of the school day, the amount of
154.6general education revenue and referendum aid, excluding portions attributable to district
154.7and school administration, district support services, operations and maintenance, capital
154.8expenditures, and pupil transportation, attributable to that pupil for the portion of time
154.9the pupil receives special instruction and services outside of the regular classroom. If
154.10the boards involved do not agree upon the tuition rate, either board may apply to the
154.11commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
154.12a date for a hearing or request a written statement from each board, giving each board
154.13at least ten days' notice, and after the hearing or review of the written statements the
154.14commissioner must make an order fixing the tuition rate, which is binding on both school
154.15districts. General education revenue and referendum equalization aid attributable to a
154.16pupil must be calculated using the resident district's average general education revenue
154.17and referendum equalization aid per adjusted pupil unit.
154.18    (b) (a) For fiscal year 2007 2015 and later, when a school district provides special
154.19instruction and services for a pupil with a disability as defined in section 125A.02 outside
154.20the district of residence, excluding a pupil for whom an adjustment to special education
154.21aid is calculated according to section 127A.47, subdivision 7, paragraph (e) paragraphs (b)
154.22to (d), special education aid paid to the resident district must be reduced by an amount
154.23equal to (1) the actual cost of providing special instruction and services to the pupil,
154.24including a proportionate amount for special transportation and unreimbursed building
154.25lease and debt service costs for facilities used primarily for special education, plus (2)
154.26the amount of general education revenue and referendum equalization aid attributable
154.27to that pupil, calculated using the resident district's average general education revenue
154.28and referendum equalization aid per adjusted pupil unit excluding basic skills revenue,
154.29elementary sparsity revenue and secondary sparsity revenue, minus (3) the amount of
154.30special education aid for children with a disability under section 125A.76 received on
154.31behalf of that child, minus (4) if the pupil receives special instruction and services outside
154.32the regular classroom for more than 60 percent of the school day, the amount of general
154.33education revenue and referendum equalization aid, excluding portions attributable to
154.34district and school administration, district support services, operations and maintenance,
154.35capital expenditures, and pupil transportation, attributable to that pupil for the portion of
154.36time the pupil receives special instruction and services outside of the regular classroom,
155.1calculated using the resident district's average general education revenue and referendum
155.2equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity
155.3revenue and secondary sparsity revenue and the serving district's basic skills revenue,
155.4elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit.
155.5Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a
155.6fiscal agent school district, the general education revenue and referendum equalization
155.7aid attributable to a pupil must be calculated using the resident district's average general
155.8education revenue and referendum equalization aid excluding compensatory revenue,
155.9elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid
155.10to the district or cooperative providing special instruction and services for the pupil
155.11must be increased by the amount of the reduction in the aid paid to the resident district.
155.12Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision
155.137
, shall be recognized and reported as revenues and expenditures on the resident school
155.14district's books of account under sections 123B.75 and 123B.76. If the resident district's
155.15special education aid is insufficient to make the full adjustment, the remaining adjustment
155.16shall be made to other state aid due to the district.
155.17    (c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 127A.47,
155.18subdivision 7
, paragraphs (b) to (d) and (e), a charter school where more than 30 percent
155.19of enrolled students receive special education and related services, a site approved under
155.20section 125A.515, an intermediate district, a special education cooperative, or a school
155.21district that served as the applicant agency for a group of school districts for federal
155.22special education aids for fiscal year 2006 may apply to the commissioner for authority to
155.23charge the resident district an additional amount to recover any remaining unreimbursed
155.24costs of serving pupils with a disability. The application must include a description of the
155.25costs and the calculations used to determine the unreimbursed portion to be charged to the
155.26resident district. Amounts approved by the commissioner under this paragraph must be
155.27included in the tuition billings or aid adjustments under paragraph (a) or (b), or section
155.28127A.47, subdivision 7 , paragraph (d) or (e) paragraphs (b) to (d), as applicable.
155.29    (d) (c) For purposes of this subdivision and section 127A.47, subdivision 7,
155.30paragraphs (d) and (e), "general education revenue and referendum equalization aid"
155.31means the sum of the general education revenue according to section 126C.10, subdivision
155.321, excluding alternative teacher compensation revenue, plus the referendum equalization
155.33aid according to section 126C.17, subdivision 7, as adjusted according to section 127A.47,
155.34subdivision 7, paragraphs (a) to (c).
155.35EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

156.1    Sec. 6. Minnesota Statutes 2012, section 125A.27, subdivision 8, is amended to read:
156.2    Subd. 8. Eligibility for Part C. "Eligibility for Part C" means eligibility for
156.3early childhood special education infant and toddler intervention services under section
156.4125A.02 and Minnesota Rules.

156.5    Sec. 7. Minnesota Statutes 2012, section 125A.27, subdivision 11, is amended to read:
156.6    Subd. 11. Interagency child find systems. "Interagency child find systems" means
156.7activities developed on an interagency basis with the involvement of interagency early
156.8intervention committees and other relevant community groups, including primary referral
156.9sources included in Code of Federal Regulations, title 34, section 303.303(c), using
156.10rigorous standards to actively seek out, identify, and refer infants and young children,
156.11with, or at risk of, disabilities, and their families, including a child to reduce the need for
156.12future services. The child find system must mandate referrals for a child under the age of
156.13three who: (1) is involved in the subject of a substantiated case of abuse or neglect, or
156.14(2) is identified as directly affected by illegal substance abuse, or withdrawal symptoms
156.15resulting from prenatal drug exposure, to reduce the need for future services. The referral
156.16procedures must specify that a referral must occur within seven calendar days from the
156.17date of identification.

156.18    Sec. 8. Minnesota Statutes 2012, section 125A.27, subdivision 14, is amended to read:
156.19    Subd. 14. Parent. "Parent" means the biological parent with parental rights,
156.20adoptive parent, legal guardian, or surrogate parent "parent" as defined by Code of Federal
156.21Regulations, title 34, section 303.27, or a surrogate parent appointed in accordance with
156.22Code of Federal Regulations, title 34, section 303.422, or United States Code, title 20,
156.23section 1439(a)(5).

156.24    Sec. 9. Minnesota Statutes 2012, section 125A.28, is amended to read:
156.25125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
156.26An Interagency Coordinating Council of at least 17, but not more than 25 members
156.27is established, in compliance with Public Law 108-446, section 641. The members must
156.28be appointed by the governor and reasonably represent the population of Minnesota.
156.29Council members must elect the council chair, who may not be a representative of the
156.30Department of Education. The representative of the commissioner may not serve as the
156.31chair. The council must be composed of at least five parents, including persons of color,
156.32of children with disabilities under age 12, including at least three parents of a child
156.33with a disability under age seven, five representatives of public or private providers
157.1of services for children with disabilities under age five, including a special education
157.2director, county social service director, local Head Start director, and a community health
157.3services or public health nursing administrator, one member of the senate, one member of
157.4the house of representatives, one representative of teacher preparation programs in early
157.5childhood-special education or other preparation programs in early childhood intervention,
157.6at least one representative of advocacy organizations for children with disabilities under
157.7age five, one physician who cares for young children with special health care needs, one
157.8representative each from the commissioners of commerce, education, health, human
157.9services, a representative from the state agency responsible for child care, foster care,
157.10mental health, homeless coordinator of education of homeless children and youth, and a
157.11representative from Indian health services or a tribal council. Section 15.059, subdivisions
157.122 to 5, apply to the council. The council must meet at least quarterly.
157.13The council must address methods of implementing the state policy of developing
157.14and implementing comprehensive, coordinated, multidisciplinary interagency programs of
157.15early intervention services for children with disabilities and their families.
157.16The duties of the council include recommending policies to ensure a comprehensive
157.17and coordinated system of all state and local agency services for children under age five
157.18with disabilities and their families. The policies must address how to incorporate each
157.19agency's services into a unified state and local system of multidisciplinary assessment
157.20practices, individual intervention plans, comprehensive systems to find children in need of
157.21services, methods to improve public awareness, and assistance in determining the role of
157.22interagency early intervention committees.
157.23On the date that Minnesota Part C Annual Performance Report is submitted to the
157.24federal Office of Special Education, the council must recommend to the governor and the
157.25commissioners of education, health, human services, commerce, and employment and
157.26economic development policies for a comprehensive and coordinated system.
157.27Annually, the council must prepare and submit a report to the governor and the
157.28secretary of the federal Department of Education on the status of early intervention
157.29services and programs for infants and toddlers with disabilities and their families under
157.30the Individuals with Disabilities Education Act, United States Code, title 20, sections
157.311471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The Minnesota
157.32Part C annual performance report may serve as the report.
157.33Notwithstanding any other law to the contrary, the State Interagency Coordinating
157.34Council expires on June 30, 2014 does not expire unless federal law no longer requires
157.35the existence of the council or committee.

158.1    Sec. 10. Minnesota Statutes 2012, section 125A.29, is amended to read:
158.2125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL
158.3BOARDS.
158.4(a) It is the joint responsibility of county boards and school boards to coordinate,
158.5provide, and pay for appropriate services, and to facilitate payment for services from public
158.6and private sources. Appropriate services for children eligible under section 125A.02 must
158.7be determined in consultation with parents, physicians, and other educational, medical,
158.8health, and human services providers. The services provided must be in conformity with:
158.9(1) an IFSP for each eligible infant and toddler from birth through age two and
158.10the infant's or toddler's family including:
158.11(i) American Indian infants and toddlers with disabilities and their families residing
158.12on a reservation geographically located in the state;
158.13(ii) infants and toddlers with disabilities who are homeless children and their
158.14families; and
158.15(iii) infants and toddlers with disabilities who are wards of the state; or
158.16(2) an individualized education program (IEP) or individual service plan (ISP) for
158.17each eligible child ages three through four.
158.18(b) Appropriate early intervention services include family education and
158.19counseling, home visits, occupational and physical therapy, speech pathology, audiology,
158.20psychological services, special instruction, nursing, respite, nutrition, assistive technology,
158.21transportation and related costs, social work, vision services, case management services
158.22provided in conformity with an IFSP that are designed to meet the special developmental
158.23needs of an eligible child and the needs of the child's family related to enhancing the
158.24child's development and that are selected in collaboration with the parent. These services
158.25include core early intervention services and additional early intervention services listed in
158.26this section and infant and toddler intervention services defined under United States Code,
158.27title 20, sections 1431 to 1444, and Code of Federal Regulations, title 34, section 303,
158.28 including service coordination under section 125A.33, medical services for diagnostic and
158.29evaluation purposes, early identification, and screening, assessment, and health services
158.30necessary to enable children with disabilities to benefit from early intervention services.
158.31(c) School and county boards shall coordinate early intervention services. In the
158.32absence of agreements established according to section 125A.39, service responsibilities
158.33for children birth through age two are as follows:
158.34(1) school boards must provide, pay for, and facilitate payment for special education
158.35and related services required under sections 125A.03 and 125A.06;
159.1(2) county boards must provide, pay for, and facilitate payment for noneducational
159.2services of social work, psychology, transportation and related costs, nursing, respite, and
159.3nutrition services not required under clause (1).
159.4(d) School and county boards may develop an interagency agreement according
159.5to section 125A.39 to establish agency responsibility that assures early intervention
159.6services are coordinated, provided, paid for, and that payment is facilitated from public
159.7and private sources.
159.8(e) County and school boards must jointly determine the primary agency in this
159.9cooperative effort and must notify the commissioner of the state lead agency of their
159.10decision.

159.11    Sec. 11. Minnesota Statutes 2012, section 125A.30, is amended to read:
159.12125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
159.13(a) A school district, group of districts, or special education cooperative, in
159.14cooperation with the health and human service agencies located in the county or counties
159.15in which the district or cooperative is located, must establish an Interagency Early
159.16Intervention Committee for children with disabilities under age five and their families
159.17under this section, and for children with disabilities ages three to 22 consistent with
159.18the requirements under sections 125A.023 and 125A.027. Committees must include
159.19representatives of local health, education, and county human service agencies, county
159.20boards, school boards, early childhood family education programs, Head Start, parents of
159.21young children with disabilities under age 12, child care resource and referral agencies,
159.22school readiness programs, current service providers, and agencies that serve families
159.23experiencing homelessness, and may also include representatives from other private or
159.24public agencies and school nurses. The committee must elect a chair from among its
159.25members and must meet at least quarterly.
159.26(b) The committee must develop and implement interagency policies and procedures
159.27concerning the following ongoing duties:
159.28(1) develop public awareness systems designed to inform potential recipient families,
159.29especially parents with premature infants, or infants with other physical risk factors
159.30associated with learning or development complications, of available programs and services;
159.31(2) to reduce families' need for future services, and especially parents with premature
159.32infants, or infants with other physical risk factors associated with learning or development
159.33complications, implement interagency child find systems designed to actively seek out,
159.34identify, and refer infants and young children with, or at risk of, disabilities, including
159.35a child under the age of three who: (i) is involved in the subject of a substantiated case
160.1of abuse or neglect or (ii) is identified as directly affected by illegal substance abuse, or
160.2withdrawal symptoms resulting from prenatal drug exposure;
160.3(3) establish and evaluate the identification, referral, child screening, evaluation,
160.4child- and family-directed assessment systems, procedural safeguard process,
160.5and community learning systems to recommend, where necessary, alterations and
160.6improvements;
160.7(4) assure the development of individualized family service plans for all eligible
160.8infants and toddlers with disabilities from birth through age two, and their families,
160.9and individualized education programs and individual service plans when necessary to
160.10appropriately serve children with disabilities, age three and older, and their families and
160.11recommend assignment of financial responsibilities to the appropriate agencies;
160.12(5) implement a process for assuring that services involve cooperating agencies at all
160.13steps leading to individualized programs;
160.14(6) facilitate the development of a transitional transition plan if a service provider is
160.15not recommended to continue to provide services in the individual family service plan by
160.16the time a child is two years and nine months old;
160.17(7) identify the current services and funding being provided within the community
160.18for children with disabilities under age five and their families;
160.19(8) develop a plan for the allocation and expenditure of additional state and federal
160.20early intervention funds under United States Code, title 20, section 1471 et seq. (Part C,
160.21Public Law 108-446) and United States Code, title 20, section 631, et seq. (Chapter I,
160.22Public Law 89-313); and
160.23(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal
160.24law to enable a member of an interagency early intervention committee to allow another
160.25member access to data classified as not public.
160.26(c) The local committee shall also:
160.27(1) participate in needs assessments and program planning activities conducted by
160.28local social service, health and education agencies for young children with disabilities
160.29and their families; and.
160.30(2) review and comment on the early intervention section of the total special
160.31education system for the district, the county social service plan, the section or sections of
160.32the community health services plan that address needs of and service activities targeted
160.33to children with special health care needs, the section on children with special needs in
160.34the county child care fund plan, sections in Head Start plans on coordinated planning and
160.35services for children with special needs, any relevant portions of early childhood education
160.36plans, such as early childhood family education or school readiness, or other applicable
161.1coordinated school and community plans for early childhood programs and services, and
161.2the section of the maternal and child health special project grants that address needs of and
161.3service activities targeted to children with chronic illness and disabilities.

161.4    Sec. 12. Minnesota Statutes 2012, section 125A.32, is amended to read:
161.5125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
161.6(a) A team must participate in IFSP meetings to develop the IFSP. The team shall
161.7include:
161.8(1) a parent or parents of the child, as defined in Code of Federal Regulations,
161.9title 34, section 303.27;
161.10(2) other family members, as requested by the parent, if feasible to do so;
161.11(3) an advocate or person outside of the family, if the parent requests that the
161.12person participate;
161.13(4) the service coordinator who has been working with the family since the
161.14initial referral, or who has been designated by the public agency to be responsible for
161.15implementation of the IFSP and coordination with other agencies including transition
161.16services; and
161.17(5) a person or persons involved in conducting evaluations and assessments.; and
161.18(6) as appropriate, persons who will be providing early intervention services under
161.19the plan to the child or family.
161.20(b) The IFSP must include:
161.21(1) information about the child's developmental status;
161.22(2) family information, with the consent of the family;
161.23(3) measurable results or major outcomes expected to be achieved by the child with
161.24the family's assistance, that include developmentally appropriate preliteracy and language
161.25skills for the child, and the criteria, procedures, and timelines;
161.26(4) specific early intervention services based on peer-reviewed research, to the
161.27extent practicable, necessary to meet the unique needs of the child and the family to
161.28achieve the outcomes;
161.29(5) payment arrangements, if any;
161.30(6) medical and other services that the child needs, but that are not required under
161.31the Individual with Disabilities Education Act, United States Code, title 20, section 1471
161.32et seq. (Part C, Public Law 108-446) including funding sources to be used in paying for
161.33those services and the steps that will be taken to secure those services through public
161.34or private sources;
161.35(7) dates and duration of early intervention services;
162.1(8) name of the service coordinator;
162.2(9) steps to be taken to support a child's transition from early infant and toddler
162.3 intervention services to other appropriate services, including convening a transition
162.4conference at least 90 days or, at the discretion of all parties, not more than nine months
162.5before the child is eligible for preschool services; and
162.6(10) signature of the parent and authorized signatures of the agencies responsible
162.7for providing, paying for, or facilitating payment, or any combination of these, for early
162.8 infant and toddler intervention services.

162.9    Sec. 13. Minnesota Statutes 2012, section 125A.33, is amended to read:
162.10125A.33 SERVICE COORDINATION.
162.11(a) The team responsible for the initial evaluation and the child- and family-directed
162.12assessment and for developing the IFSP under section 125A.32, if appropriate, must
162.13select a service coordinator to carry out service coordination activities on an interagency
162.14basis. Service coordination must actively promote a family's capacity and competency
162.15to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the
162.16family's needs. Service coordination activities include:
162.17(1) coordinating the performance of evaluations and assessments;
162.18(2) facilitating and participating in the development, review, and evaluation of
162.19individualized family service plans;
162.20(3) assisting families in identifying available service providers;
162.21(4) coordinating and monitoring the delivery of available services;
162.22(5) informing families of the availability of advocacy services;
162.23(6) coordinating with medical, health, and other service providers;
162.24(7) facilitating the development of a transition plan to preschool, school, or if
162.25appropriate, to other services, at least 90 days before the time the child is no longer
162.26eligible for early infant and toddler intervention services or, at the discretion of all parties,
162.27not more than nine months prior to the child's eligibility for preschool services third
162.28birthday, if appropriate;
162.29(8) managing the early intervention record and submitting additional information to
162.30the local primary agency at the time of periodic review and annual evaluations; and
162.31(9) notifying a local primary agency when disputes between agencies impact service
162.32delivery required by an IFSP.
162.33(b) A service coordinator must be knowledgeable about children and families
162.34receiving services under this section, requirements of state and federal law, and services
162.35available in the interagency early childhood intervention system. The IFSP must include
163.1the name of the services coordinator from the profession most relevant to the child's or
163.2family's needs or who is otherwise qualified to carry out all applicable responsibilities
163.3under the Individuals with Disabilities Education Act, United States Code, title 20,
163.4sections 1471 to 1485 (Part C, Public Law 102-119), who will be responsible for
163.5implementing the early intervention services identified in the child's IFSP, including
163.6transition services, and coordination with other agencies and persons.

163.7    Sec. 14. Minnesota Statutes 2012, section 125A.35, subdivision 1, is amended to read:
163.8    Subdivision 1. Lead agency; allocation of resources. The state lead agency must
163.9administer the early intervention account that consists of federal allocations. The Part C
163.10state plan must state the amount of federal resources in the early intervention account
163.11available for use by local agencies. The state lead agency must distribute the funds to the
163.12local primary agency designated by an Interagency Early Intervention Committee based
163.13on a formula that includes a December 1 count of the prior year of Part C eligible children
163.14for the following purposes:
163.15(1) as provided in Code of Federal Regulations, title 34, part 303.425 303.430, to
163.16arrange for payment for early intervention services not elsewhere available, or to pay for
163.17services during the pendency of a conflict procedure, including mediation, complaints, due
163.18process hearings, and interagency disputes; and
163.19(2) to support interagency child find system activities.

163.20    Sec. 15. Minnesota Statutes 2012, section 125A.36, is amended to read:
163.21125A.36 PAYMENT FOR SERVICES.
163.22Core early intervention services must be provided at public expense with no cost to
163.23parents. Parents must be requested to assist in the cost of additional early intervention
163.24services by using third-party payment sources and applying for available resources.
163.25Payment structures permitted under state law must be used to pay for additional early
163.26intervention services. Parental financial responsibility must be clearly defined in the
163.27IFSP. A parent's inability to pay must not prohibit a child from receiving needed early
163.28intervention services.

163.29    Sec. 16. Minnesota Statutes 2012, section 125A.43, is amended to read:
163.30125A.43 MEDIATION PROCEDURE.
163.31(a) The commissioner, or the commissioner's designee, of the state lead agency must
163.32use federal funds to provide mediation for the activities in paragraphs (b) and (c).
164.1(b) A parent may resolve a dispute regarding issues in section 125A.42, paragraph
164.2(b)
, clause (5), through mediation. If the parent chooses mediation, mediation must be
164.3voluntary on the part of the parties. The parent and the public agencies must complete the
164.4mediation process within 30 calendar days of the date the Office of Dispute Resolution
164.5 Department of Education receives a parent's written request for mediation unless a district
164.6declines mediation. The mediation process may not be used to delay a parent's right
164.7to a due process hearing. The resolution of the written, signed mediation agreement is
164.8not binding on any party both parties and is enforceable in any state court of competent
164.9jurisdiction or in a district court of the United States.
164.10(c) Resolution of a dispute through mediation, or other form of alternative dispute
164.11resolution, is not limited to formal disputes arising from the objection of a parent or
164.12guardian and is not limited to the period following a request for a due process hearing.
164.13(d) The commissioner shall provide training and resources to school districts to
164.14facilitate early identification of disputes and access to mediation.
164.15(e) The local primary agency may request mediation on behalf of involved agencies
164.16when there are disputes between agencies regarding responsibilities to coordinate, provide,
164.17pay for, or facilitate payment for early intervention services.

164.18    Sec. 17. Minnesota Statutes 2012, section 125A.76, subdivision 1, is amended to read:
164.19    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
164.20the definitions in this subdivision apply.
164.21    (a) (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
164.22For the purposes of computing basic revenue pursuant to this section, each child with a
164.23disability shall be counted as prescribed in section 126C.05, subdivision 1.
164.24    (b) (c) "Essential personnel" means teachers, cultural liaisons, related services, and
164.25support services staff providing services to students. Essential personnel may also include
164.26special education paraprofessionals or clericals providing support to teachers and students
164.27by preparing paperwork and making arrangements related to special education compliance
164.28requirements, including parent meetings and individualized education programs. Essential
164.29personnel does not include administrators and supervisors.
164.30    (c) (d) "Average daily membership" has the meaning given it in section 126C.05.
164.31    (d) (e) "Program growth factor" means 1.046 for fiscal year years 2012 though 2015,
164.321.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
164.33program growth factor for the previous year for fiscal year 2018 and later.
164.34(f) "Nonfederal special education expenditure" means all direct expenditures that
164.35are necessary and essential to meet the district's obligation to provide special instruction
165.1and services to children with a disability according to sections 124D.454, 125A.03 to
165.2125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
165.3the department under section 125A.75, subdivision 4, excluding expenditures:
165.4(1) reimbursed with federal funds;
165.5(2) reimbursed with other state aids under this chapter;
165.6(3) for general education costs of serving students with a disability;
165.7(4) for facilities;
165.8(5) for pupil transportation; and
165.9(6) for postemployment benefits.
165.10(g) "Old formula special education expenditures" means expenditures eligible for
165.11revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
165.12For the Minnesota State Academy for the Deaf and the Minnesota State Academy for the
165.13Blind, expenditures are limited to the salary and fringe benefits of one-to-one instructional
165.14and behavior management aides assigned to a child attending the academy, if the aides are
165.15required by the child's individualized education program.
165.16(h) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014
165.17and 4.48 percent for fiscal year 2015.
165.18(i) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
165.19for fiscal year 2015.
165.20(j) "Special education aid increase limit" means $80 for fiscal year 2016, $100 for
165.21fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education aid
165.22increase limit for the previous fiscal year and $40.
165.23EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

165.24    Sec. 18. Minnesota Statutes 2012, section 125A.76, is amended by adding a
165.25subdivision to read:
165.26    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
165.27special education initial aid equals the sum of:
165.28(1) the lesser of 62 percent of the district's old formula special education
165.29expenditures for the prior fiscal year, 50 percent of the district's nonfederal special
165.30education expenditures for the prior year, or 56 percent of the product of the sum of the
165.31following amounts, computed using prior fiscal year data, and the program growth factor:
165.32(i) the product of the district's average daily membership served and the sum of:
165.33(A) $450; plus
166.1(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
166.2who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
166.3who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
166.4(C) .008 times the district' s average daily membership served; plus
166.5(ii) $10,400 times the December 1 child count for the primary disability areas of
166.6autism spectrum disorders, developmental delay, and severely multiply impaired; plus
166.7(iii) $18,000 times the December 1 child count for the primary disability areas of
166.8deaf and hard-of-hearing and emotional or behavioral disorders; plus
166.9(iv) $27,000 times the December 1 child count for the primary disability areas of
166.10developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
166.11physically impaired, visually impaired, and deafblind; plus
166.12(2) the cost of providing transportation services for children with disabilities under
166.13section 123B.92, subdivision 1, paragraph (b), clause (4).
166.14EFFECTIVE DATE.This section is effective for fiscal year 2016 and later.

166.15    Sec. 19. Minnesota Statutes 2012, section 125A.76, is amended by adding a
166.16subdivision to read:
166.17    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
166.18subsidy reduction aid for a school district, not including a charter school, equals the lesser
166.19of (a) the product of the cross subsidy reduction aid limit and the district's average daily
166.20membership served or (b) the product of the cross subsidy reduction aid percentage, the
166.21district's average daily membership served and the sum of:
166.22(1) $450; plus
166.23(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
166.24who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
166.25who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
166.26(3) .008 times the district's average daily membership served; plus
166.27(i) $10,100 times the December 1 child count for the primary disability areas of
166.28autism spectrum disorders, developmental delay, and severely multiply impaired; plus
166.29(ii) $17,500 times the December 1 child count for the primary disability areas of
166.30deaf and hard-of-hearing and emotional or behavioral disorders; plus
166.31(iii) $26,000 times the December 1 child count for the primary disability areas of
166.32developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
166.33physically impaired, visually impaired, and deafblind.

167.1    Sec. 20. Minnesota Statutes 2012, section 125A.76, is amended by adding a
167.2subdivision to read:
167.3    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
167.4district's special education aid equals the sum of the district's special education initial aid
167.5under subdivision 2a, the district's cross subsidy reduction aid under subdivision 2b, and
167.6the district's excess cost aid under section 125A.79, subdivision 5.
167.7(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
167.8the district's special education initial aid under subdivision 2a and the district's excess cost
167.9aid under section 125A.79, subdivision 5.
167.10(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
167.11a school district must not exceed the sum of the special education aid the district would
167.12have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
167.13and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
167.14127A.47, subdivision 7, and the product of the district's average daily membership served
167.15and the special education aid increase limit.
167.16(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
167.17aid for a school district must not exceed the sum of: (i) the product of the district's average
167.18daily membership served and the special education aid increase limit and (ii) the product
167.19of the sum of the special education aid the district would have received for fiscal year 2016
167.20under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
167.21to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
167.22the district's average daily membership served for the current fiscal year to the district's
167.23average daily membership served for fiscal year 2016, and the program growth factor.
167.24(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
167.25aid for a school district, not including a charter school, must not be less than the lesser of
167.26(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
167.27product of the sum of the special education aid the district would have received for fiscal
167.28year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
167.29according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
167.30ratio of the district's adjusted daily membership for the current fiscal year to the district's
167.31average daily membership for fiscal year 2016, and the program growth factor.
167.32EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

167.33    Sec. 21. Minnesota Statutes 2012, section 125A.76, is amended by adding a
167.34subdivision to read:
168.1    Subd. 2d. Statewide average expenditure. By January 15 of each year, the
168.2department must calculate the statewide average special education expenditure per
168.3December 1 child count for the prior fiscal year by primary disability area and provide that
168.4information to all districts. By January 15 of each odd-numbered year, the commissioner
168.5must identify options for aligning the assignment of disability areas to the categories and
168.6the rates for each category in subdivision 2a, clause (1), with the latest expenditure data and
168.7submit these options to the legislative committees with jurisdiction over education finance.
168.8EFFECTIVE DATE.This section is effective July 1, 2015.

168.9    Sec. 22. Minnesota Statutes 2012, section 125A.76, subdivision 4a, is amended to read:
168.10    Subd. 4a. Adjustments for tuition reciprocity with adjoining states. (a) If an
168.11agreement is reached between the state of Minnesota and an adjoining state pursuant to
168.12section 124D.041 that requires a special education tuition payment from the state of
168.13Minnesota to the adjoining state, the tuition payment shall be made from the special
168.14education aid appropriation for that year, and the state total special education aid under
168.15subdivision 4 shall be reduced by the amount of the payment.
168.16    (b) If an agreement is reached between the state of Minnesota and an adjoining state
168.17pursuant to section 124D.041 that requires a special education tuition payment from
168.18an adjoining state to the state of Minnesota, the special education aid appropriation for
168.19that year and the state total special education aid under subdivision 4 shall be increased
168.20by the amount of the payment.
168.21    (c) (b) If an agreement is reached between the state of Minnesota and an adjoining
168.22state pursuant to section 124D.041 that requires special education tuition payments to
168.23be made between the two states and not between districts in the two states, the special
168.24education aid for a Minnesota school district serving a student with a disability from the
168.25adjoining state shall be calculated according to section 127A.47, subdivision 7, except that
168.26no reduction shall be made in the special education aid paid to the resident district.
168.27EFFECTIVE DATE.This section is effective for fiscal year 2016 and later.

168.28    Sec. 23. Minnesota Statutes 2012, section 125A.76, subdivision 8, is amended to read:
168.29    Subd. 8. Special education forecast maintenance of effort. (a) If, on the basis of
168.30a forecast of general fund revenues and expenditures under section 16A.103, the state's
168.31expenditures for special education and related services for children with disabilities from
168.32nonfederal sources for a fiscal year, including special education aid under section 125A.76;
168.33special education excess cost aid under section 125A.76, subdivision 7 subdivision 2c;
169.1travel for home-based services under section 125A.75, subdivision 1; aid for students with
169.2disabilities under section 125A.75, subdivision 3; court-placed special education under
169.3section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8;
169.4and direct expenditures by state agencies are projected to be less than the amount required
169.5to meet federal special education maintenance of effort, the reimbursement percentages
169.6for excess cost aid under section 125A.79, subdivision 5, must be increased as required to
169.7ensure that the additional amount required to meet federal special education maintenance of
169.8effort is added to the state total special education aid in section 125A.76, subdivision 4 2c.
169.9    (b) If, on the basis of a forecast of general fund revenues and expenditures under
169.10section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater
169.11than previously forecast for an enacted budget, and an addition to state total special
169.12education aid has been made under paragraph (a), the state total special education aid
169.13must be reduced by the lesser of the amount of the expenditure increase or the amount
169.14previously added to state total special education aid in section 125A.76, subdivision 4 2c.
169.15    (c) For the purpose of this section, "previously forecast for an enacted budget" means
169.16the allocation of funding for these programs in the most recent forecast of general fund
169.17revenues and expenditures or the act appropriating money for these programs, whichever
169.18occurred most recently. It does not include planning estimates for a future biennium.
169.19    (d) If the amount of special education aid is adjusted in accordance with this
169.20subdivision, the commissioner of education shall notify the chairs of the legislative
169.21committees having jurisdiction over kindergarten through grade 12 education regarding
169.22the amount of the adjustment and provide an explanation of the federal maintenance of
169.23effort requirements.
169.24EFFECTIVE DATE.This section is effective for fiscal year 2016 and later.

169.25    Sec. 24. Minnesota Statutes 2012, section 125A.78, subdivision 2, is amended to read:
169.26    Subd. 2. Initial aid adjustment. For the fiscal year after approval of a district's
169.27application, and thereafter, the special education initial aid under section 125A.76,
169.28subdivision 1
, must be computed based on activities defined as reimbursable under
169.29Department of Education rules for special education and nonspecial education students,
169.30and additional activities as detailed and approved by the commissioner.
169.31EFFECTIVE DATE.This section is effective for fiscal year 2016 and later.

169.32    Sec. 25. Minnesota Statutes 2012, section 125A.79, subdivision 1, is amended to read:
170.1    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
170.2subdivision apply.
170.3    (a) "Unreimbursed old formula special education cost expenditures" means the
170.4sum of the following:
170.5    (1) old formula special education expenditures for teachers' salaries, contracted
170.6services, supplies, equipment, and transportation services eligible for revenue under
170.7section 125A.76 the prior fiscal year; plus minus
170.8    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
170.9125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
170.10    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and
170.11transportation services (2) special education initial aid under section 125A.76;, subdivision
170.122a; minus
170.13    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
170.14eligible for revenue under section 125A.76, subdivision 2.
170.15(3) the amount of general education revenue and referendum equalization aid for the
170.16prior fiscal year attributable to pupils receiving special instruction and services outside the
170.17regular classroom for more than 60 percent of the school day for the portion of time the
170.18pupils receive special instruction and services outside the regular classroom, excluding
170.19portions attributable to district and school administration, district support services,
170.20operations and maintenance, capital expenditures, and pupil transportation.
170.21(b) "Unreimbursed nonfederal special education expenditures" means:
170.22(1) nonfederal special education expenditures for the prior fiscal year; minus
170.23(2) special education initial aid under section 125A.76, subdivision 2a; minus
170.24(3) the amount of general education revenue and referendum equalization aid for the
170.25prior fiscal year attributable to pupils receiving special instruction and services outside the
170.26regular classroom for more than 60 percent of the school day for the portion of time the
170.27pupils receive special instruction and services outside of the regular classroom, excluding
170.28portions attributable to district and school administration, district support services,
170.29operations and maintenance, capital expenditures, and pupil transportation.
170.30    (b) (c) "General revenue" for a school district means the sum of the general
170.31education revenue according to section 126C.10, subdivision 1, excluding alternative
170.32teacher compensation revenue, minus transportation sparsity revenue minus total operating
170.33capital revenue. "General revenue" for a charter school means the sum of the general
170.34education revenue according to section 124D.11, subdivision 1, and transportation revenue
170.35according to section 124D.11, subdivision 2, excluding alternative teacher compensation
171.1revenue, minus referendum equalization aid minus transportation sparsity revenue minus
171.2operating capital revenue.
171.3    (c) "Average daily membership" has the meaning given it in section 126C.05.
171.4    (d) "Program growth factor" means 1.02 for fiscal year 2012 and later.

171.5    Sec. 26. Minnesota Statutes 2012, section 125A.79, subdivision 5, is amended to read:
171.6    Subd. 5. Initial excess cost aid. For fiscal years 2008 2016 and later, a district's
171.7initial excess cost aid equals the greater of:
171.8    (1) 75 56 percent of the difference between (i) the district's unreimbursed nonfederal
171.9 special education cost expenditures and (ii) 4.36 7.0 percent of the district's general
171.10revenue; or
171.11    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
171.12special education expenditures and (ii) 2.5 percent of the district's general revenue; or
171.13    (2) (3) zero.
171.14EFFECTIVE DATE.This section is effective for fiscal year 2016 and later.

171.15    Sec. 27. Minnesota Statutes 2012, section 125A.79, subdivision 8, is amended to read:
171.16    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
171.17services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
171.18treatment facility by court action in a state that does not have a reciprocity agreement with
171.19the commissioner under section 125A.155, the resident school district shall submit the
171.20balance of the tuition bills, minus the general education revenue, excluding basic skills
171.21revenue and alternative teacher compensation revenue, and referendum equalization aid
171.22attributable to the pupil, calculated using the resident district's average general education
171.23revenue and referendum equalization aid per adjusted pupil unit minus the special
171.24education contracted services initial revenue attributable to the pupil.
171.25EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

171.26    Sec. 28. SPECIAL EDUCATION CASE LOADS TASK FORCE.
171.27    Subdivision 1. Members. The commissioner shall establish and appoint a special
171.28education case loads task force consisting of at least ten members who will provide equal
171.29representation from school districts, including special education teachers, and advocacy
171.30organizations, including parents of children with disabilities.
172.1    Subd. 2. Duties. The special education case loads task force shall develop
172.2recommendations for the appropriate numbers of students with disabilities that may be
172.3assigned to a teacher both with and without paraprofessional support in the classroom and
172.4for cost-effective and efficient strategies and structures for improving student outcomes.
172.5The task force must also identify state rules that should be revised to align with state statute.
172.6    Subd. 3. Report. The task force must submit a report by February 15, 2014, to the
172.7education policy and finance committees of the legislature recommending appropriate
172.8case loads for teachers of school-age children in all federal settings, including educational
172.9service alternatives and proposed state rule revisions.
172.10    Subd. 4. Expiration. The task force expires February 16, 2014.

172.11    Sec. 29. RULEMAKING AUTHORITY.
172.12The commissioner of education shall use the expedited rulemaking process in
172.13Minnesota Statutes, section 14.389, to amend Minnesota Rules related to providing
172.14special education under Part C of the Individuals with Disabilities Education Act. The
172.15commissioner shall amend the rules to conform to new federal regulations in Code
172.16of Federal Regulations, title 34, part 303, including definitions of and procedures for
172.17evaluation and assessment, including assessment of the child and family, initial evaluation
172.18and assessment, the use of native language, the use of informed clinical opinion as an
172.19independent basis to establish eligibility, and transition of a toddler from Part C consistent
172.20with Code of Federal Regulations, title 34, sections 303.24, 303.25, and 303.321, only
172.21to the extent necessary to avoid loss of federal funds. The authority to use the expedited
172.22process to amend rules specified in this section expires July 1, 2014. Rule amendments
172.23adopted under the expedited process before that date remain in effect unless further
172.24amended under the rulemaking procedures in Minnesota Statutes, chapter 14.

172.25    Sec. 30. REPORT ON HOMELESS CHILDREN SERVED.
172.26The commissioner of education must collect statistics on the number of homeless
172.27children who have received Part C services and must annually report those results to
172.28the legislature by July 1.
172.29EFFECTIVE DATE.This section is effective July 1, 2013.

172.30    Sec. 31. APPROPRIATIONS.
173.1    Subdivision 1. Department of Education. The sums indicated in this section are
173.2appropriated from the general fund to the Department of Education for the fiscal years
173.3designated.
173.4    Subd. 2. Special education; regular. For special education aid under Minnesota
173.5Statutes, section 125A.75:
173.6
$
997,725,000
.....
2014
173.7
$
1,108,211,000
.....
2015
173.8The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000 for 2014.
173.9The 2015 appropriation includes $169,929,000 for 2014 and $938,282,000 for 2015.
173.10    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
173.11section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
173.12within the district boundaries for whom no district of residence can be determined:
173.13
$
1,655,000
.....
2014
173.14
$
1,752,000
.....
2015
173.15If the appropriation for either year is insufficient, the appropriation for the other
173.16year is available.
173.17    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
173.18services under Minnesota Statutes, section 125A.75, subdivision 1:
173.19
$
345,000
.....
2014
173.20
$
355,000
.....
2015
173.21The 2014 appropriation includes $45,000 for 2013 and $300,000 for 2014.
173.22The 2015 appropriation includes $47,000 for 2014 and $308,000 for 2015.
173.23    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
173.24Statutes, section 125A.79, subdivision 7:
173.25
$
42,030,000
.....
2014
173.26The 2014 appropriation includes $42,030,000 for 2013 and $0 for 2014.
173.27    Subd. 6. Court-placed special education revenue. For reimbursing serving school
173.28districts for unreimbursed eligible expenditures attributable to children placed in the serving
173.29school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
173.30
$
54,000
.....
2014
173.31
$
55,000
.....
2015
174.1    Subd. 7. Special education out-of-state tuition. For special education out-of-state
174.2tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
174.3
$
250,000
.....
2014
174.4
$
250,000
.....
2015
174.5    Subd. 8. Special education paperwork cost savings. For special education
174.6paperwork cost savings:
174.7
$
1,763,000
.....
2014
174.8For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not
174.9expended.

174.10    Sec. 32. REPEALER.
174.11Minnesota Statutes 2012, sections 124D.454, subdivisions 3, 10, and 11; 125A.35,
174.12subdivisions 4 and 5; 125A.76, subdivisions 2, 4, 5, and 7; and 125A.79, subdivisions 6
174.13and 7, are repealed for fiscal year 2016 and later.

174.14
ARTICLE 6
174.15FACILITIES AND TECHNOLOGY

174.16    Section 1. Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:
174.17    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
174.18district equals the sum of the first tier equalized debt service levy and the second tier
174.19equalized debt service levy.
174.20(b) A district's first tier equalized debt service levy equals the district's first tier debt
174.21service equalization revenue times the lesser of one or the ratio of:
174.22(1) the quotient derived by dividing the adjusted net tax capacity of the district for
174.23the year before the year the levy is certified by the adjusted pupil units in the district for
174.24the school year ending in the year prior to the year the levy is certified; to
174.25(2) $3,049 $3,550.
174.26(c) A district's second tier equalized debt service levy equals the district's second tier
174.27debt service equalization revenue times the lesser of one or the ratio of:
174.28(1) the quotient derived by dividing the adjusted net tax capacity of the district for
174.29the year before the year the levy is certified by the adjusted pupil units in the district for
174.30the school year ending in the year prior to the year the levy is certified; to
174.31(2) $7,622 $7,900.
174.32EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
174.33later.

175.1    Sec. 2. Minnesota Statutes 2012, section 123B.54, is amended to read:
175.2123B.54 DEBT SERVICE APPROPRIATION.
175.3    (a) $21,727,000 in fiscal year 2014 and $24,201,000 in fiscal year 2015 and later
175.4are The amount necessary to make debt service equalization aid payments under section
175.5123B.53 is annually appropriated from the general fund to the commissioner of education
175.6for payment of debt service equalization aid under section 123B.53.
175.7    (b) The appropriations in paragraph (a) must be reduced by the amount of any
175.8money specifically appropriated for the same purpose in any year from any state fund.

175.9    Sec. 3. Minnesota Statutes 2012, section 123B.57, subdivision 4, is amended to read:
175.10    Subd. 4. Health and safety levy. To receive health and safety revenue, a district
175.11may levy an amount equal to the district's health and safety revenue as defined in
175.12subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
175.13dividing the adjusted net tax capacity of the district for the year preceding the year the
175.14levy is certified by the adjusted marginal cost pupil units in the district for the school year
175.15to which the levy is attributable, to $2,796 $3,165.
175.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
175.17and later.

175.18    Sec. 4. Minnesota Statutes 2012, section 123B.591, subdivision 2, is amended to read:
175.19    Subd. 2. Deferred maintenance revenue. The deferred maintenance revenue for
175.20an eligible school district equals the product of $60 $64 times the adjusted marginal cost
175.21 pupil units for the school year times the lesser of one or the ratio of the district's average
175.22age of building space to 35 years.
175.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
175.24and later.

175.25    Sec. 5. Minnesota Statutes 2012, section 123B.591, subdivision 3, is amended to read:
175.26    Subd. 3. Deferred maintenance levy. To obtain deferred maintenance revenue for
175.27fiscal year 2008 and later, a district may levy an amount not more than the product of its
175.28deferred maintenance revenue for the fiscal year times the lesser of one or the ratio of its
175.29adjusted net tax capacity per adjusted marginal cost pupil unit to $5,621 $5,965.
175.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
175.31and later.

176.1    Sec. 6. Minnesota Statutes 2012, section 125B.26, subdivision 4, is amended to read:
176.2    Subd. 4. District aid. For fiscal year 2006 and later, a district, charter school,
176.3or intermediate school district's Internet access equity aid equals the district, charter
176.4school, or intermediate school district's approved cost for the previous fiscal year
176.5according to subdivision 1 exceeding $15 $16 times the district's adjusted marginal
176.6cost pupil units for the previous fiscal year or no reduction if the district is part of an
176.7organized telecommunications access cluster. Equity aid must be distributed to the
176.8telecommunications access cluster for districts, charter schools, or intermediate school
176.9districts that are members of the cluster or to individual districts, charter schools, or
176.10intermediate school districts not part of a telecommunications access cluster.
176.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
176.12and later.

176.13    Sec. 7. Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:
176.14    Subd. 3. No election. Subject to the provisions of subdivisions 7 to 10, the school
176.15district may also by a two-thirds majority vote of all the members of its board of education
176.16and without any election by the voters of the district, issue and sell in each calendar year
176.17general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
176.18net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
176.192003, an amount not to exceed $7,500,000, and for calendar years year 2004 to 2016 and
176.20later, an amount not to exceed $15,000,000; with an additional provision that any amount
176.21of bonds so authorized for sale in a specific year and not sold can be carried forward and
176.22sold in the year immediately following).
176.23EFFECTIVE DATE.This section is effective July 1, 2013.

176.24    Sec. 8. Laws 2007, chapter 146, article 4, section 12, is amended to read:
176.25    Sec. 12. BONDING AUTHORIZATION.
176.26    To provide funds for the acquisition or betterment of school facilities, Independent
176.27School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
176.28the board of directors issue general obligation bonds in one or more series for calendar
176.29years 2008 through 2016, as provided in this section. The aggregate principal amount of
176.30any bonds issued under this section for each calendar year must not exceed $15,000,000.
176.31Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59.
176.32The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475.
176.33The authority to issue bonds under this section is in addition to any bonding authority
177.1authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
177.2authority authorized under this section must be disregarded in calculating the bonding
177.3limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
177.4section 475.53, subdivision 4.
177.5EFFECTIVE DATE.This section is effective July 1, 2013.

177.6    Sec. 9. SCHOOL FACILITIES FINANCING WORK GROUP.
177.7The commissioner of education must convene a working group to develop
177.8recommendations for reforming the financing of prekindergarten through grade 12
177.9education facilities to create adequate, equitable, and sustainable financing of public
177.10school facilities throughout the state. Membership on the working group must include
177.11representatives of school superintendents, business managers, school facilities directors,
177.12and school boards. The scope of the working group recommendations must include
177.13funding options for facilities projects currently financed with debt service, alternative
177.14facilities, deferred maintenance, health and safety, building lease, and operating capital
177.15revenues. The commissioner, on behalf of the working group, must submit a report to the
177.16chairs and ranking minority members of the legislative committees and divisions with
177.17primary jurisdiction over kindergarten through grade 12 education finance by February 1,
177.182014, recommending how best to allocate funds for school facilities.

177.19    Sec. 10. CYRUS AND MORRIS SCHOOL DISTRICT CONSOLIDATION.
177.20    Subdivision 1. Purpose. The legislature finds that an orderly, voluntary
177.21consolidation of Independent School Districts Nos. 611, Cyrus, and 769, Morris, promotes
177.22the well-being of the students and increases educational efficiency in those school districts.
177.23    Subd. 2. Remediation costs. Independent School District No. 611, Cyrus, may
177.24identify all health and safety remediation costs related to the demolition of the Cyrus
177.25school building and submit those amounts to the commissioner of education for approval.
177.26Any approved costs may be included either in the district's health and safety plan or in the
177.27bonding authority authorized under subdivision 3.
177.28    Subd. 3. Facility bonds. Independent School District No. 611, Cyrus, may issue
177.29general obligation bonds without an election under Minnesota Statutes, chapter 475, after
177.30a public meeting of the school board with notice given by mail according to Minnesota
177.31Statutes, section 123B.09, subdivision 11, in an amount not to exceed $1,000,000
177.32approved by the commissioner of education for the costs associated with demolishing the
178.1Cyrus school building. The bonds must be repaid within ten years of issuance. Any excess
178.2bond proceeds after bonds are repaid must be credited back to the taxpayers of the former
178.3Independent School District No. 611, Cyrus.
178.4    Subd. 4. Reorganization operating debt determined. Independent School District
178.5No. 611, Cyrus, must estimate its reorganization operating debt according to Minnesota
178.6Statutes, section 123B.82, and submit that amount to the commissioner of education
178.7for approval.
178.8    Subd. 5. Reorganization operating debt bonds. Independent School District No.
178.9611, Cyrus, may issue general obligation bonds without an election under Minnesota
178.10Statutes, chapter 475, after a public meeting of the school board with notice given by mail
178.11according to Minnesota Statutes, section 123B.09, subdivision 11, in an amount not to
178.12exceed the reorganization operating debt approved by the commissioner of education
178.13under subdivision 4. The bonds must be repaid within six years of issuance.
178.14    Subd. 6. Repayment. The bonded debt issued under this section remains payable
178.15by the taxable property located within the boundaries of former Independent School
178.16District No. 611, Cyrus.
178.17EFFECTIVE DATE.This section is effective the day following final enactment.

178.18    Sec. 11. ELEVATOR REPAIR LEVY; NORMAN COUNTY WEST SCHOOL
178.19DISTRICT.
178.20For taxes payable in 2015 and 2016, Independent School District No. 2527,
178.21Norman County West, may levy for an amount not to exceed $27,500 in each year. The
178.22proceeds of this levy must be used to refurbish an existing elevator with new electrical and
178.23mechanical components.
178.24EFFECTIVE DATE.This section is effective for taxes payable in 2015 and 2016.

178.25    Sec. 12. APPROPRIATIONS.
178.26    Subdivision 1. Department of Education. The sums indicated in this section are
178.27appropriated from the general fund to the Department of Education for the fiscal years
178.28designated.
178.29    Subd. 2. Health and safety revenue. For health and safety aid according to
178.30Minnesota Statutes, section 123B.57, subdivision 5:
179.1
$
463,000
.....
2014
179.2
$
434,000
.....
2015
179.3The 2014 appropriation includes $26,000 for 2013 and $437,000 for 2014.
179.4The 2015 appropriation includes $68,000 for 2014 and $366,000 for 2015.
179.5    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
179.6Statutes, section 123B.53, subdivision 6:
179.7
$
19,083,000
.....
2014
179.8
$
25,060,000
.....
2015
179.9The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 for 2014.
179.10The 2015 appropriation includes $2,626,000 for 2014 and $22,434,000 for 2015.
179.11    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
179.12according to Minnesota Statutes, section 123B.59, subdivision 1:
179.13
$
19,287,000
.....
2014
179.14
$
19,287,000
.....
2015
179.15The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 for 2014.
179.16The 2015 appropriation includes $2,623,000 for 2014 and $16,664,000 for 2015.
179.17    Subd. 5. Equity in telecommunications access. For equity in telecommunications
179.18access:
179.19
$
3,750,000
.....
2014
179.20
$
3,750,000
.....
2015
179.21If the appropriation amount is insufficient, the commissioner shall reduce the
179.22reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
179.23revenue for fiscal years 2014 and 2015 shall be prorated.
179.24Any balance in the first year does not cancel but is available in the second year.
179.25    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
179.26Minnesota Statutes, section 123B.591, subdivision 4:
179.27
$
3,564,000
.....
2014
179.28
$
3,730,000
.....
2015
179.29The 2014 appropriation includes $456,000 for 2013 and $3,108,000 for 2014.
179.30The 2015 appropriation includes $489,000 for 2014 and $3,241,000 for 2015.

180.1
ARTICLE 7
180.2NUTRITION, LIBRARIES, AND ACCOUNTING

180.3    Section 1. Minnesota Statutes 2012, section 123B.75, subdivision 5, is amended to read:
180.4    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
180.5year, the school district must recognize as revenue, in the fund for which the levy was
180.6made, the lesser of:
180.7(1) the sum of May, June, and July school district tax settlement revenue received in
180.8that calendar year, plus general education aid according to section 126C.13, subdivision
180.94
, received in July and August of that calendar year; or
180.10(2) the sum of:
180.11(i) 31 percent of the referendum levy certified according to section 126C.17, in
180.12calendar year 2000; and
180.13(ii) the entire amount of the levy certified in the prior calendar year according to
180.14section 124D.86, subdivision 4, for school districts receiving revenue under sections
180.15124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a),
180.16and 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
180.17(iii) zero percent of the amount of the levy certified in the prior calendar year for the
180.18school district's general and community service funds, plus or minus auditor's adjustments,
180.19not including the levy portions that are assumed by the state, that remains after subtracting
180.20the referendum levy certified according to section 126C.17 and the amount recognized
180.21according to item (ii).
180.22(b) For fiscal year 2011 and later years, in June of each year, the school district must
180.23recognize as revenue, in the fund for which the levy was made, the lesser of:
180.24(1) the sum of May, June, and July school district tax settlement revenue received in
180.25that calendar year, plus general education aid according to section 126C.13, subdivision
180.264
, received in July and August of that calendar year; or
180.27(2) the sum of:
180.28(i) the greater of 48.6 percent of the referendum levy certified according to section
180.29126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
180.30according to section 126C.17 in calendar year 2000; plus
180.31(ii) the entire amount of the levy certified in the prior calendar year according
180.32to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
180.33under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
180.34School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
180.35Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
180.36and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
181.1(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
181.2school district's general and community service funds, plus or minus auditor's adjustments,
181.3that remains after subtracting the referendum levy certified according to section 126C.17
181.4and the amount recognized according to item (ii).

181.5    Sec. 2. Minnesota Statutes 2012, section 124D.111, subdivision 1, is amended to read:
181.6    Subdivision 1. School lunch aid computation. Each school year, the state must pay
181.7participants in the national school lunch program the amount of 12 12.5 cents for each full
181.8paid, reduced reduced-price, and free student lunch served to students.
181.9EFFECTIVE DATE.This section is effective July 1, 2013.

181.10    Sec. 3. Minnesota Statutes 2012, section 124D.119, is amended to read:
181.11124D.119 SUMMER FOOD SERVICE REPLACEMENT AID.
181.12States funds are available to compensate department-approved summer food
181.13program sponsors for reduced federal operating reimbursement rates under Public Law
181.14104-193, the federal summer food service program. A sponsor is eligible for summer food
181.15service replacement aid equal to the sum of the following amounts:. Reimbursement shall
181.16be made on December 15 based on total meals served by each sponsor from the end of the
181.17school year to the beginning of the next school year on a pro rata basis.
181.18(1) for breakfast service, up to four cents per breakfast served by the sponsor during
181.19the current program year;
181.20(2) for lunch or supper service, up to 14 cents per lunch or supper served by the
181.21sponsor during the current program year; and
181.22(3) for supplement service, up to ten cents per supplement served by the sponsor
181.23during the current program year.

181.24    Sec. 4. Minnesota Statutes 2012, section 127A.45, subdivision 12a, is amended to read:
181.25    Subd. 12a. Forward shifted aid payments. (a) Nineteen percent of the state aid
181.26in fiscal year 1999, and 31 percent of the state aid in fiscal years 2000 and later received
181.27under section 124D.86 must be paid by the state to the recipient school district on July 15
181.28of that year. The recipient school district must recognize this aid in the same fiscal year
181.29as the levy is recognized.
181.30(b) One hundred percent of the state aid in fiscal years 2003 and later received under
181.31section 124D.87 must be paid by the state to the recipient school district on August 30 of
181.32that year. The recipient school district must recognize this aid in the previous fiscal year.

182.1    Sec. 5. Minnesota Statutes 2012, section 127A.45, subdivision 13, is amended to read:
182.2    Subd. 13. Aid payment percentage. Except as provided in subdivisions 11, 12,
182.312a, and 14, each fiscal year, all education aids and credits in this chapter and chapters
182.4120A, 120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section
182.5273.1392 , shall be paid at the current year aid payment percentage of the estimated
182.6entitlement during the fiscal year of the entitlement. For the purposes of this subdivision,
182.7a district's estimated entitlement for special education excess cost aid under section
182.8125A.79 125A.76 for fiscal year 2006 2014 and later equals 74.0 97.4 percent of the
182.9district's entitlement for the current fiscal year. The final adjustment payment, according
182.10to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
182.11data, minus the payments made during the fiscal year of the entitlement.

182.12    Sec. 6. Minnesota Statutes 2012, section 134.32, is amended to read:
182.13134.32 GRANT AUTHORIZATION; TYPES OF GRANTS AND AID.
182.14    Subdivision 1. Provision of grants. The department shall provide the grants and aid
182.15specified in this section from any available state, federal, or other funds.
182.16    Subd. 3. Regional library basic system support grants aid. It shall provide
182.17regional library basic system support grants aid to regional public library systems which
182.18meet the requirements of section 134.34, to assist those systems in providing basic system
182.19services.
182.20    Subd. 4. Special project grants. It may provide special project grants to assist
182.21innovative and experimental library programs including, but not limited to, special
182.22services for American Indians and the Spanish-speaking, delivery of library materials to
182.23homebound persons, other extensions of library services to persons without access to
182.24libraries and projects to strengthen and improve library services.
182.25    Subd. 5. Interlibrary exchange grants. It may provide grants for interlibrary
182.26exchange of books, periodicals, resource material, reference information and the expenses
182.27incident to the sharing of library resources and materials, including planning, development
182.28and operating grants to multicounty, multitype library systems.
182.29    Subd. 6. Library service grants. It may provide grants for the improvement of
182.30library services at welfare and corrections institutions and for library service for the blind
182.31and physically disabled.
182.32    Subd. 7. Construction or remodeling grants. It may provide grants for
182.33construction or remodeling of library facilities from any state and federal funds specifically
182.34appropriated for this purpose.
183.1    Subd. 8. Rulemaking. (a) The commissioner shall promulgate rules consistent
183.2with sections 134.32 to 134.355 governing:
183.3(1) applications for these grants and aid;
183.4(2) computation formulas for determining the amounts of establishment grants and
183.5regional library basic system support grants aid; and
183.6(3) eligibility criteria for grants and aid.
183.7(b) To the extent allowed under federal law, a construction grant applicant, in
183.8addition to the points received under Minnesota Rules, part 3530.2632, shall receive an
183.9additional five points if the construction grant is for a project combining public library
183.10services and school district library services at a single location.

183.11    Sec. 7. Minnesota Statutes 2012, section 134.34, is amended to read:
183.12134.34 REGIONAL LIBRARY BASIC SYSTEM SUPPORT GRANTS AID;
183.13REQUIREMENTS.
183.14    Subdivision 1. Local support levels. (a) A Regional library basic system support
183.15grant aid shall be made provided to any regional public library system where there are at
183.16least three participating counties and where each participating city and county is providing
183.17for public library service support the lesser of (a) an amount equivalent to .82 percent of
183.18the average of the adjusted net tax capacity of the taxable property of that city or county,
183.19as determined by the commissioner of revenue for the second, third, and fourth year
183.20preceding that calendar year or (b) a per capita amount calculated under the provisions of
183.21this subdivision. The per capita amount is established for calendar year 1993 as $7.62.
183.22In succeeding calendar years, the per capita amount shall be increased by a percentage
183.23equal to one-half of the percentage by which the total state adjusted net tax capacity of
183.24property as determined by the commissioner of revenue for the second year preceding
183.25that calendar year increases over that total adjusted net tax capacity for the third year
183.26preceding that calendar year.
183.27(b) The minimum level of support specified under this subdivision or subdivision 4
183.28shall be certified annually to the participating cities and counties by the Department of
183.29Education. If a city or county chooses to reduce its local support in accordance with
183.30subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The
183.31regional public library system shall notify the Department of Education that a revised
183.32certification is required. The revised minimum level of support shall be certified to the
183.33city or county by the Department of Education.
183.34(c) A city which is a part of a regional public library system shall not be required to
183.35provide this level of support if the property of that city is already taxable by the county for
184.1the support of that regional public library system. In no event shall the Department of
184.2Education require any city or county to provide a higher level of support than the level
184.3of support specified in this section in order for a system to qualify for a regional library
184.4basic system support grant aid. This section shall not be construed to prohibit a city or
184.5county from providing a higher level of support for public libraries than the level of
184.6support specified in this section.
184.7    Subd. 3. Regional designation. Regional library basic system support grants aid
184.8shall be made provided only to those regional public library systems officially designated
184.9by the commissioner of education as the appropriate agency to strengthen, improve and
184.10promote public library services in the participating areas. The commissioner of education
184.11shall designate no more than one such regional public library system located entirely within
184.12any single development region existing under sections 462.381 to 462.398 or chapter 473.
184.13    Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library basic
184.14system support grant aid shall not be made provided to a regional public library system
184.15for a participating city or county which decreases the dollar amount provided for support
184.16for operating purposes of public library service below the amount provided by it for the
184.17second, or third preceding year, whichever is less. For purposes of this subdivision and
184.18subdivision 1, any funds provided under section 473.757, subdivision 2, for extending
184.19library hours of operation shall not be considered amounts provided by a city or county for
184.20support for operating purposes of public library service. This subdivision shall not apply
184.21to participating cities or counties where the adjusted net tax capacity of that city or county
184.22has decreased, if the dollar amount of the reduction in support is not greater than the dollar
184.23amount by which support would be decreased if the reduction in support were made in
184.24direct proportion to the decrease in adjusted net tax capacity.
184.25(b) For calendar year 2009 and later, in any calendar year in which a city's or
184.26county's aid under sections 477A.011 to 477A.014 or credit reimbursement under section
184.27273.1384 is reduced after the city or county has certified its levy payable in that year, it
184.28may reduce its local support by the lesser of:
184.29(1) ten percent; or
184.30(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the
184.31city's or county's revenue base, based on aids certified for the current calendar year. For
184.32calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and
184.33credit reimbursement reductions under the December 2008 unallotment, as well as any
184.34aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the
184.35commissioner of revenue will calculate the reductions under this paragraph and certify
184.36them to the commissioner of education within 15 days of May 17, 2009.
185.1(c) For taxes payable in 2010 and later, in any payable year in which the total
185.2amounts certified for city or county aids under sections 477A.011 to 477A.014 are less
185.3than the total amounts paid under those sections in the previous calendar year, a city or
185.4county may reduce its local support by the lesser of:
185.5(1) ten percent; or
185.6(2) a percent equal to the ratio of:
185.7(i) the difference between (A) the sum of the aid it was paid under sections
185.8477A.011 to 477A.014 and the credit reimbursement it received under section 273.1384
185.9in the previous calendar year and (B) the sum of the aid it is certified to be paid in the
185.10current calendar year under sections 477A.011 to 477A.014 and the credit reimbursement
185.11estimated to be paid under section 273.1384; to
185.12(ii) its revenue base for the previous year, based on aids actually paid in the previous
185.13calendar year. The commissioner of revenue shall calculate the percent aid cut for each
185.14county and city under this paragraph and certify the percentage cuts to the commissioner
185.15of education by August 1 of the year prior to the year in which the reduced aids and
185.16credit reimbursements are to be paid. The percentage of reduction related to reductions
185.17to credit reimbursements under section 273.1384 shall be based on the best estimation
185.18available as of July 30.
185.19(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
185.20support for public libraries below the minimum level specified in subdivision 1.
185.21(e) For purposes of this subdivision, "revenue base" means the sum of:
185.22(1) its levy for taxes payable in the current calendar year, including the levy on
185.23the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a),
185.24or 473F.08, subdivision 3, paragraph (a);
185.25(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
185.26(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
185.27    Subd. 7. Proposed budget. In addition to the annual report required in section
185.28134.13 , a regional public system that receives a basic system support grant aid under this
185.29section must provide each participating county and city with its proposed budget for
185.30the next year.

185.31    Sec. 8. Minnesota Statutes 2012, section 134.351, subdivision 3, is amended to read:
185.32    Subd. 3. Agreement. In order for a multicounty, multitype library system to qualify
185.33for a planning, development or operating grant aid pursuant to sections 134.353 and
185.34134.354 , each participating library in the system shall adopt an organizational agreement
185.35providing for the following:
186.1(a) Sharing of resources among all participating libraries;
186.2(b) Long-range planning for cooperative programs;
186.3(c) The development of a delivery system for services and programs;
186.4(d) The development of a bibliographic database; and
186.5(e) A communications system among all cooperating libraries.

186.6    Sec. 9. Minnesota Statutes 2012, section 134.351, subdivision 7, is amended to read:
186.7    Subd. 7. Reports. Each multicounty, multitype system receiving a grant aid
186.8 pursuant to section 134.353 or 134.354 shall provide an annual progress report to the
186.9Department of Education.

186.10    Sec. 10. Minnesota Statutes 2012, section 134.353, is amended to read:
186.11134.353 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM
186.12DEVELOPMENT GRANT AID.
186.13The commissioner of education may provide development grants aid to multicounty,
186.14multitype library systems. In awarding a development grant aid, the commissioner shall
186.15consider the extra costs incurred in systems located in sparsely populated and large
186.16geographic regions.

186.17    Sec. 11. Minnesota Statutes 2012, section 134.354, is amended to read:
186.18134.354 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM OPERATING
186.19GRANT AID.
186.20The commissioner of education may provide operating grants aid to multicounty,
186.21multitype library systems. In awarding an operating grant aid, the commissioner shall
186.22consider the extra costs incurred in systems located in sparsely populated and large
186.23geographic areas.

186.24    Sec. 12. Minnesota Statutes 2012, section 134.355, subdivision 1, is amended to read:
186.25    Subdivision 1. Appropriations. Basic system support grants aid and regional library
186.26telecommunications aid provide the appropriations for the basic regional library system.

186.27    Sec. 13. Minnesota Statutes 2012, section 134.355, subdivision 2, is amended to read:
186.28    Subd. 2. Grant application. Any regional public library system which qualifies
186.29according to the provisions of section 134.34 may apply for an annual grant aid for
186.30regional library basic system support. Regional public library districts under section
187.1134.201 may not compensate board members using grant aid funds. The amount of each
187.2grant aid for each fiscal year shall be calculated as provided in this section.

187.3    Sec. 14. Minnesota Statutes 2012, section 134.355, subdivision 3, is amended to read:
187.4    Subd. 3. Per capita distribution. Fifty-seven and one-half percent of the available
187.5grant aid funds shall be distributed to provide all qualifying systems an equal amount
187.6per capita. Each system's allocation pursuant to this subdivision shall be based on the
187.7population it serves.

187.8    Sec. 15. Minnesota Statutes 2012, section 134.355, subdivision 4, is amended to read:
187.9    Subd. 4. Per square mile distribution. Twelve and one-half percent of the
187.10available grant aid funds shall be distributed to provide all qualifying systems an equal
187.11amount per square mile. Each system's allocation pursuant to this subdivision shall be
187.12based on the area it serves.

187.13    Sec. 16. Minnesota Statutes 2012, section 134.355, subdivision 5, is amended to read:
187.14    Subd. 5. Base grant aid distribution. Five percent of the available grant aid funds
187.15shall be paid to each system as a base grant aid for basic system services.

187.16    Sec. 17. Minnesota Statutes 2012, section 134.355, subdivision 6, is amended to read:
187.17    Subd. 6. Adjusted net tax capacity per capita distribution. Twenty-five percent
187.18of the available grant aid funds shall be distributed to regional public library systems based
187.19upon the adjusted net tax capacity per capita for each member county or participating
187.20portion of a county as calculated for the second year preceding the fiscal year for which
187.21the grant aid is made provided. Each system's entitlement shall be calculated as follows:
187.22(a) Multiply the adjusted net tax capacity per capita for each county or participating
187.23portion of a county by .0082.
187.24(b) Add sufficient grant aid funds that are available under this subdivision to raise
187.25the amount of the county or participating portion of a county with the lowest value
187.26calculated according to paragraph (a) to the amount of the county or participating portion
187.27of a county with the next highest value calculated according to paragraph (a). Multiply the
187.28amount of the additional grant aid funds by the population of the county or participating
187.29portion of a county.
187.30(c) Continue the process described in paragraph (b) by adding sufficient grant aid
187.31funds that are available under this subdivision to the amount of a county or participating
187.32portion of a county with the next highest value calculated in paragraph (a) to raise it and
188.1the amount of counties and participating portions of counties with lower values calculated
188.2in paragraph (a) up to the amount of the county or participating portion of a county
188.3with the next highest value, until reaching an amount where funds available under this
188.4subdivision are no longer sufficient to raise the amount of a county or participating portion
188.5of a county and the amount of counties and participating portions of counties with lower
188.6values up to the amount of the next highest county or participating portion of a county.
188.7(d) If the point is reached using the process in paragraphs (b) and (c) at which the
188.8remaining grant aid funds under this subdivision are not adequate for raising the amount of
188.9a county or participating portion of a county and all counties and participating portions of
188.10counties with amounts of lower value to the amount of the county or participating portion
188.11of a county with the next highest value, those funds are to be divided on a per capita basis
188.12for all counties or participating portions of counties that received grant aid funds under
188.13the calculation in paragraphs (b) and (c).

188.14    Sec. 18. Minnesota Statutes 2012, section 134.36, is amended to read:
188.15134.36 RULES.
188.16The commissioner of education shall promulgate rules as necessary for
188.17implementation of library grant and aid programs.

188.18    Sec. 19. FUND TRANSFER; FISCAL YEARS 2014 AND 2015 ONLY.
188.19(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for
188.20fiscal years 2014 and 2015 only, the commissioner must approve a request for a fund
188.21transfer if the transfer does not increase state aid obligations to the district or result in
188.22additional property tax authority for the district. This section does not permit transfers
188.23from the community service fund, the food service fund, or the reserved account for
188.24staff development under section 122A.61.
188.25(b) A school board may approve a fund transfer under paragraph (a) only after
188.26adopting a resolution stating the fund transfer will not diminish instructional opportunities
188.27for students.
188.28EFFECTIVE DATE.This section is effective July 1, 2013.

188.29    Sec. 20. ACCELERATED REPAYMENT OF EDUCATION AIDS.
188.30(a) No later than September 30, 2013, the commissioner of management and budget
188.31must estimate the amount of any positive unrestricted budgetary general fund balance at
188.32the close of the fiscal year ending June 30, 2013. The commissioner must allocate the
189.1amount estimated to the purposes and in the manner specified in Minnesota Statutes,
189.2section 16A.152, subdivision 2, paragraph (a), clauses (3) and (4), in that order.
189.3(b) The amounts necessary to meet the requirements of this section are appropriated
189.4from the general fund as necessary to meet the appropriations schedules otherwise
189.5established in statute.
189.6(c) The commissioner of management and budget shall certify the total dollar
189.7amount of the reductions to the purposes specified in Minnesota Statutes, section 16A.152,
189.8subdivision 2, paragraph (a), clauses (3) and (4), to the commissioner of education. The
189.9commissioner of education shall increase the aid payment percentage and reduce the
189.10property tax shift percentage by these amounts and apply those reductions to the current
189.11fiscal year and thereafter.
189.12(d) No later than October 15, 2013, the commissioner of management and budget
189.13must notify the chairs and ranking minority members of the senate committee on finance,
189.14the house of representatives committee on ways and means, and the legislative committees
189.15with jurisdiction over education of:
189.16(1) the amount of positive unrestricted budgetary general fund balance estimated
189.17under paragraph (a); and
189.18(2) the dollar amount of reductions certified under paragraph (c) and the resulting
189.19changes in the aid payment percentage and property tax shift percentage.
189.20EFFECTIVE DATE.This section is effective the day following final enactment.

189.21    Sec. 21. APPROPRIATIONS.
189.22    Subdivision 1. Department of Education. The sums indicated in this section are
189.23appropriated from the general fund to the Department of Education for the fiscal years
189.24designated.
189.25    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
189.26section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
189.27
$
13,032,000
.....
2014
189.28
$
13,293,000
.....
2015
189.29    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
189.30Statutes, section 124D.1158:
189.31
$
5,711,000
.....
2014
189.32
$
6,022,000
.....
2015
190.1    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
190.2section 124D.118:
190.3
$
1,039,000
.....
2014
190.4
$
1,049,000
.....
2015
190.5    Subd. 5. Summer food service replacement aid. For summer food service
190.6replacement aid under Minnesota Statutes, section 124D.119:
190.7
$
150,000
.....
2014
190.8
$
150,000
.....
2015
190.9    Subd. 6. Basic system support. For basic system support grants under Minnesota
190.10Statutes, section 134.355:
190.11
$
13,570,000
.....
2014
190.12
$
13,570,000
.....
2015
190.13The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 for 2014.
190.14The 2015 appropriation includes $1,845,000 for 2014 and $11,725,000 for 2015.
190.15    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
190.16Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
190.17
$
1,300,000
.....
2014
190.18
$
1,300,000
.....
2015
190.19The 2014 appropriation includes $176,000 for 2013 and $1,124,000 for 2014.
190.20The 2015 appropriation includes $176,000 for 2014 and $1,124,000 for 2015.
190.21    Subd. 8. Electronic library for Minnesota. For statewide licenses to online
190.22databases selected in cooperation with the Minnesota Office of Higher Education for
190.23school media centers, public libraries, state government agency libraries, and public
190.24or private college or university libraries:
190.25
$
900,000
.....
2014
190.26
$
900,000
.....
2015
190.27Any balance in the first year does not cancel but is available in the second year.
190.28    Subd. 9. Regional library telecommunications aid. For regional library
190.29telecommunications aid under Minnesota Statutes, section 134.355:
190.30
$
2,300,000
.....
2014
190.31
$
2,300,000
.....
2015
190.32The 2014 appropriation includes $312,000 for 2013 and $1,988,000 for 2014.
190.33The 2015 appropriation includes $312,000 for 2014 and $1,988,000 for 2015.

191.1    Sec. 22. REVISOR'S INSTRUCTION.
191.2In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute
191.3the term "Division of State Library Services" for "Library Development and Services,"
191.4"Office of Library Development and Services," or "LDS" where "LDS" stands for "Library
191.5Development and Services." The revisor shall also make grammatical changes related
191.6to the changes in terms.

191.7    Sec. 23. REPEALER.
191.8Minnesota Statutes 2012, section 123B.75, subdivision 6a, is repealed.

191.9
ARTICLE 8
191.10EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND
191.11LIFELONG LEARNING

191.12    Section 1. [16F.01] MINNESOTA YOUTH COUNCIL COMMITTEE.
191.13    Subdivision 1. Establishment and membership. The Minnesota Youth Council
191.14Committee is established within and under the auspices of the Minnesota Alliance With
191.15Youth. The committee consists of four members from each congressional district in
191.16Minnesota and four members selected at-large. Members must be selected through an
191.17application and interview process conducted by the Minnesota Alliance With Youth. In
191.18making its appointments, the Minnesota Alliance With Youth should strive to ensure
191.19gender and ethnic diversity in the committee's membership. Members must be between
191.20the ages of 13 and 19 and serve two-year terms, except that one-half of the initial members
191.21must serve a one-year term. Members may serve a maximum of two terms.
191.22    Subd. 2. Duties. The Minnesota Youth Council Committee shall:
191.23(1) provide advice and recommendations to the legislature and the governor on
191.24issues affecting youth;
191.25(2) serve as a liaison for youth around the state to the legislature and the governor; and
191.26(3) submit an annual report of the council's activities and goals.
191.27    Subd. 3. Partnerships. The Minnesota Youth Council Committee shall partner with
191.28nonprofits, the private sector, and educational resources to fulfill its duties.
191.29    Subd. 4. Youth Council Committee in the legislature. (a) The Minnesota Youth
191.30Council Committee shall meet at least twice each year during the regular session of the
191.31legislature.
191.32(b) The committee may:
191.33(1) select introduced bills in the house of representatives and senate for consideration
191.34for a public hearing before the committee;
191.35(2) propose youth legislation;
192.1(3) provide advisory opinions to the legislature on bills heard before the committee;
192.2and
192.3(4) prepare a youth omnibus bill.
192.4(c) The leaders of the majority and minority parties of the house of representatives
192.5and senate shall each appoint one legislator to serve as a legislative liaison to the
192.6committee. Leadership of the house of representatives and senate, on rotating years, may
192.7appoint a staff member to staff the committee.

192.8    Sec. 2. [124D.165] EARLY LEARNING SCHOLARSHIPS.
192.9    Subdivision 1. Establishment; purpose. There is established an early learning
192.10scholarships program in order to increase access to high-quality early childhood programs
192.11for children ages three to five.
192.12    Subd. 2. Family eligibility. (a) For a family to receive an early childhood education
192.13scholarship, parents or guardians must meet the following eligibility requirements:
192.14(1) have a child three or four years of age on September 1 of the current year, who
192.15has not yet started kindergarten; and
192.16(2) have income equal to or less than 185 percent of federal poverty level income
192.17in the current calendar year, or be able to document their child's current participation in
192.18the free and reduced-price lunch program or child and adult care food program, National
192.19School Lunch Act, United States Code, title 42, sections 1751 and 1766; Head Start under
192.20the federal Improving Head Start for School Readiness Act of 2007; Minnesota family
192.21investment program under chapter 256J; child care assistance programs under chapter
192.22119B; the supplemental nutrition assistance program; or placement in foster care under
192.23section 260C.212.
192.24(b) Notwithstanding the other provisions of this section, a parent under age 21 who
192.25is pursuing a high school or general education equivalency diploma is eligible for an early
192.26learning scholarship if the parent has a child age zero to five years old and meets the
192.27income eligibility guidelines in this subdivision.
192.28(c) Any siblings between the ages zero to five years old of a child who has been
192.29awarded a scholarship under this section must be awarded a scholarship upon request,
192.30provided the sibling attends the same program.
192.31(d) A child who has received a scholarship under this section must continue to receive
192.32a scholarship each year until that child is eligible for kindergarten under section 120A.20.
192.33(e) Early learning scholarships may not be counted as earned income for the
192.34purposes of medical assistance under chapter 256B, MinnesotaCare under chapter 256L,
192.35Minnesota family investment program under chapter 256J, child care assistance programs
193.1under chapter 119B, or Head Start under the federal Improving Head Start for School
193.2Readiness Act of 2007.
193.3    Subd. 3. Administration. (a) The commissioner shall establish application
193.4timelines and determine the schedule for awarding scholarships that meets operational
193.5needs of eligible families and programs. The commissioner may prioritize applications on
193.6factors including family income, geographic location, and whether the child's family is on a
193.7waiting list for a publicly funded program providing early education or child care services.
193.8(b) Scholarships may be awarded up to $5,000 for each eligible child per year.
193.9(c) A four-star rated program that has children eligible for a scholarship enrolled
193.10in or on a waiting list for a program beginning in July, August, or September may notify
193.11the commissioner, in the form and manner prescribed by the commissioner, each year
193.12of the program's desire to enhance program services or to serve more children than
193.13current funding provides. The commissioner may designate a predetermined number of
193.14scholarship slots for that program and notify the program of that number.
193.15(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has
193.16not been accepted and subsequently enrolled in a rated program within ten months of the
193.17awarding of the scholarship, the scholarship cancels and the recipient must reapply in
193.18order to be eligible for another scholarship. A child may not be awarded more than one
193.19scholarship in a 12-month period.
193.20(e) A child who receives a scholarship who has not completed development
193.21screening under sections 121A.16 to 121A.19 must complete that screening within 90
193.22days of first attending an eligible program.
193.23    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept
193.24an early childhood education scholarship, a program must:
193.25(1) participate in the quality rating and improvement system under section
193.26124D.142; and
193.27(2) beginning July 1, 2016, have a three- or four-star rating in the quality rating
193.28and improvement system.
193.29(b) Any program accepting scholarships must use the revenue to supplement and not
193.30supplant federal funding.
193.31    Subd. 5. Report required. The commissioner shall contract with an independent
193.32contractor to evaluate the early learning scholarship program. The evaluation must
193.33include recommendations regarding the appropriate scholarship amount, efficiency, and
193.34effectiveness of the administration, and impact on kindergarten readiness.

193.35    Sec. 3. Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to read:
194.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
194.2education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
194.3during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
194.4(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
194.5fiscal years equals:
194.6    (1) the state total adu