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HF 890

Conference Committee Report - 90th Legislature (2017 - 2018) Posted on 05/08/2017 10:19pm

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1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 890
1.2A bill for an act
1.3relating to education finance; providing funding in early childhood, kindergarten
1.4through grade 12, and adult education, including general education, education
1.5excellence, teachers, special education, facilities and technology, nutrition, libraries,
1.6early childhood and family support, community education and prevention,
1.7self-sufficiency and lifelong learning, and state agencies; making forecast
1.8adjustments; requiring a report; appropriating money;amending Minnesota Statutes
1.92016, sections 13.321, by adding a subdivision; 13.461, by adding a subdivision;
1.1043A.08, subdivisions 1, 1a; 120A.22, subdivision 9; 120A.41; 120B.021,
1.11subdivisions 1, 3; 120B.022, subdivision 1b; 120B.12, subdivision 2; 120B.22,
1.12subdivision 2; 120B.23, subdivision 3; 120B.232, subdivision 1; 120B.30,
1.13subdivision 1; 120B.31, subdivision 4, by adding a subdivision; 120B.35,
1.14subdivision 3; 120B.36, subdivision 1; 121A.22, subdivision 2; 121A.221; 122A.09,
1.15subdivision 4a; 122A.14, subdivision 9; 122A.18, subdivisions 7c, 8; 122A.21,
1.16subdivisions 1, 2, by adding a subdivision; 122A.245, subdivisions 1, 2, 3, 10;
1.17122A.40, subdivision 10; 122A.41, by adding a subdivision; 122A.415, subdivision
1.184; 122A.416; 123A.30, subdivision 6; 123A.73, subdivision 2; 123B.41,
1.19subdivisions 2, 5a; 123B.52, subdivision 1, by adding a subdivision; 123B.595,
1.20subdivisions 1, 4; 123B.92, subdivision 1; 124D.03, subdivision 5a; 124D.05,
1.21subdivision 3; 124D.09, subdivisions 3, 5, 9, 12, 13, by adding subdivisions;
1.22124D.095, subdivision 3; 124D.1158, subdivisions 3, 4; 124D.135, subdivision
1.231; 124D.15, subdivision 1; 124D.16, subdivision 2; 124D.165, subdivisions 1, 2,
1.243, 4; 124D.531, subdivision 1; 124D.549; 124D.55; 124D.59, subdivision 2;
1.25124D.68, subdivision 2; 124E.03, subdivision 2; 124E.11; 125A.08; 125A.0941;
1.26125A.11, subdivision 1; 125A.21, subdivision 2; 125A.515; 125A.56, subdivision
1.271; 125A.74, subdivision 1; 126C.05, subdivisions 1, 8; 126C.10, subdivisions 2,
1.282a, 3, 13a; 127A.41, subdivision 3; 127A.45, subdivision 10; 134.31, subdivision
1.292; 136A.1791, subdivisions 1, 2, 9; 256B.0625, subdivision 26; 256J.08,
1.30subdivisions 38, 39; 297A.70, subdivision 2; Laws 2015, First Special Session
1.31chapter 3, article 1, section 27, subdivisions 2, as amended, 3, 4, as amended, 6,
1.32as amended, 7, as amended, 9, as amended; article 2, section 70, subdivisions 2,
1.33as amended, 3, as amended, 4, as amended, 5, as amended, 7, as amended, 11, as
1.34amended; article 4, section 9, subdivision 2, as amended; article 5, section 30,
1.35subdivisions 2, as amended, 3, as amended, 5, as amended, 6; article 6, section 13,
1.36subdivisions 2, as amended, 3, as amended; article 7, section 7, subdivisions 2, as
1.37amended, 3, as amended, 4, as amended; article 9, section 8, subdivisions 5, as
1.38amended, 6, as amended; article 10, section 3, subdivision 2, as amended; article
1.3911, section 3, subdivision 2, as amended; Laws 2016, chapter 189, article 25,
1.40sections 58; 62, subdivisions 7, 11, 17; proposing coding for new law in Minnesota
1.41Statutes, chapters 120A; 120B; 121A; 122A; 124D; 125A; 126C; 127A; 136A;
1.42proposing coding for new law as Minnesota Statutes, chapter 119C; repealing
2.1Minnesota Statutes 2016, sections 122A.40, subdivision 11; 122A.41, subdivision
2.214; 123A.73, subdivision 3; 124D.151; 124D.73, subdivision 2; 129C.10; 129C.105;
2.3129C.15; 129C.20; 129C.25; 129C.26; 129C.30; Minnesota Rules, parts 3500.3100,
2.4subpart 4; 3600.0010, subparts 1, 2, 2a, 2b, 3, 6; 3600.0020; 3600.0030, subparts
2.51, 2, 4, 6; 3600.0045; 3600.0055; 3600.0065; 3600.0075; 3600.0085.
2.6May 8, 2017
2.7The Honorable Kurt L. Daudt
2.8Speaker of the House of Representatives
2.9The Honorable Michelle L. Fischbach
2.10President of the Senate
2.11We, the undersigned conferees for H. F. No. 890 report that we have agreed upon the
2.12items in dispute and recommend as follows:
2.13That the Senate recede from its amendments and that H. F. No. 890 be further amended
2.14as follows:
2.15Delete everything after the enacting clause and insert:

2.16"ARTICLE 1
2.17GENERAL EDUCATION

2.18    Section 1. Minnesota Statutes 2016, section 120A.41, is amended to read:
2.19120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
2.20(a) A school board's annual school calendar must include at least 425 hours of instruction
2.21for a kindergarten student without a disability, 935 hours of instruction for a student in
2.22grades 1 through 6, and 1,020 hours of instruction for a student in grades 7 through 12, not
2.23including summer school. The school calendar for all-day kindergarten must include at least
2.24850 hours of instruction for the school year. The school calendar for a prekindergarten
2.25student under section 124D.151, if offered by the district, must include at least 350 hours
2.26of instruction for the school year. A school board's annual calendar must include at least
2.27165 days of instruction for a student in grades 1 through 11 unless a four-day week schedule
2.28has been approved by the commissioner under section 124D.126.
2.29(b) A school board's annual school calendar may include plans for up to five days of
2.30instruction provided through online instruction due to inclement weather. The inclement
2.31weather plans must be developed according to section 120A.414.

2.32    Sec. 2. [120A.414] E-LEARNING DAYS.
2.33    Subdivision 1. Days. "E-learning day" means a school day where a school offers full
2.34access to online instruction provided by students' individual teachers due to inclement
2.35weather. A school district or charter school that chooses to have e-learning days may have
3.1up to five e-learning days in one school year. An e-learning day is counted as a day of
3.2instruction and included in the hours of instruction under section 120A.41.
3.3    Subd. 2. Plan. A school board may adopt an e-learning day plan after consulting with
3.4the exclusive representative of the teachers. A charter school may adopt an e-learning day
3.5plan after consulting with its teachers. The plan must include accommodations for students
3.6without Internet access at home and for digital device access for families without the
3.7technology or an insufficient amount of technology for the number of children in the
3.8household. A school's e-learning day plan must provide accessible options for students with
3.9disabilities under chapter 125A.
3.10    Subd. 3. Annual notice. A school district or charter school must notify parents and
3.11students of the e-learning day plan at the beginning of the school year.
3.12    Subd. 4. Daily notice. On an e-learning day declared by the school, a school district or
3.13charter school must notify parents and students at least two hours prior to the normal school
3.14start time that students need to follow the e-learning day plan for that day.
3.15    Subd. 5. Teacher access. Each student's teacher must be accessible both online and by
3.16telephone during normal school hours on an e-learning day to assist students and parents.
3.17EFFECTIVE DATE.This section is effective for the 2017-2018 school year and later.

3.18    Sec. 3. Minnesota Statutes 2016, section 121A.22, subdivision 2, is amended to read:
3.19    Subd. 2. Exclusions. In addition, this section does not apply to drugs or medicine that
3.20are:
3.21(1) purchased without a prescription;
3.22(2) used by a pupil who is 18 years old or older;
3.23(3) used in connection with services for which a minor may give effective consent,
3.24including section 144.343, subdivision 1, and any other law;
3.25(4) used in situations in which, in the judgment of the school personnel who are present
3.26or available, the risk to the pupil's life or health is of such a nature that drugs or medicine
3.27should be given without delay;
3.28(5) used off the school grounds;
3.29(6) used in connection with athletics or extra curricular activities;
3.30(7) used in connection with activities that occur before or after the regular school day;
4.1(8) provided or administered by a public health agency to prevent or control an illness
4.2or a disease outbreak as provided for in sections 144.05 and 144.12;
4.3(9) prescription asthma or reactive airway disease medications self-administered by a
4.4pupil with an asthma inhaler, consistent with section 121A.221, if the district has received
4.5a written authorization from the pupil's parent permitting the pupil to self-administer the
4.6medication, the inhaler is properly labeled for that student, and the parent has not requested
4.7school personnel to administer the medication to the pupil. The parent must submit written
4.8authorization for the pupil to self-administer the medication each school year; or
4.9(10) epinephrine auto-injectors, consistent with section 121A.2205, if the parent and
4.10prescribing medical professional annually inform the pupil's school in writing that (i) the
4.11pupil may possess the epinephrine or (ii) the pupil is unable to possess the epinephrine and
4.12requires immediate access to epinephrine auto-injectors that the parent provides properly
4.13labeled to the school for the pupil as needed.

4.14    Sec. 4. Minnesota Statutes 2016, section 121A.221, is amended to read:
4.15121A.221 POSSESSION AND USE OF ASTHMA INHALERS BY ASTHMATIC
4.16STUDENTS.
4.17(a) Consistent with section 121A.22, subdivision 2, clause (9), in a school district that
4.18employs a school nurse or provides school nursing services under another arrangement, the
4.19school nurse or other appropriate party must assess the student's knowledge and skills to
4.20safely possess and use an asthma inhaler in a school setting and enter into the student's
4.21school health record a plan to implement safe possession and use of asthma inhalers.
4.22(b) Consistent with section 121A.22, subdivision 2, clause (9), in a school that does not
4.23have a school nurse or school nursing services, the student's parent or guardian must submit
4.24written verification from the prescribing professional that documents an assessment of the
4.25student's knowledge and skills to safely possess and use an asthma inhaler in a school setting
4.26has been completed.

4.27    Sec. 5. Minnesota Statutes 2016, section 123B.41, subdivision 2, is amended to read:
4.28    Subd. 2. Textbook. (a) "Textbook" means any book or book substitute, including
4.29electronic books as well as other printed materials delivered electronically, which a pupil
4.30uses as a text or text substitute in a particular class or program in the school regularly
4.31attended and a copy of which is expected to be available for the individual use of each pupil
4.32in this class or program. Textbook includes an online book with an annual subscription cost.
5.1(b) For purposes of calculating the annual nonpublic pupil aid entitlement for textbooks,
5.2the term shall be limited to books, workbooks, or manuals, whether bound or in loose-leaf
5.3form, as well as electronic books and other printed materials delivered electronically,
5.4intended for use as a principal source of study material for a given class or a group of
5.5students.
5.6(c) For purposes of sections 123B.40 to 123B.48, the terms "textbook" and "software
5.7or other educational technology" include only such secular, neutral, and nonideological
5.8materials as are available, used by, or of benefit to Minnesota public school pupils.
5.9EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and later.

5.10    Sec. 6. Minnesota Statutes 2016, section 123B.41, subdivision 5a, is amended to read:
5.11    Subd. 5a. Software or other educational technology. For purposes of sections 123B.42
5.12and 123B.43, "software or other educational technology" includes software, programs,
5.13applications, hardware, and any other electronic educational technology. Software or other
5.14educational technology includes course registration fees for advanced placement courses
5.15delivered online.
5.16EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and later.

5.17    Sec. 7. Minnesota Statutes 2016, section 123B.92, subdivision 1, is amended to read:
5.18    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the terms
5.19defined in this subdivision have the meanings given to them.
5.20    (a) "Actual expenditure per pupil transported in the regular and excess transportation
5.21categories" means the quotient obtained by dividing:
5.22    (1) the sum of:
5.23    (i) all expenditures for transportation in the regular category, as defined in paragraph
5.24(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
5.25    (ii) an amount equal to one year's depreciation on the district's school bus fleet and
5.26mobile units computed on a straight line basis at the rate of 15 percent per year for districts
5.27operating a program under section 124D.128 for grades 1 to 12 for all students in the district
5.28and 12-1/2 percent per year for other districts of the cost of the fleet, plus
5.29    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
5.30defined in section 169.011, subdivision 71, which must be used a majority of the time for
6.1pupil transportation purposes, computed on a straight line basis at the rate of 20 percent per
6.2year of the cost of the type three school buses by:
6.3    (2) the number of pupils eligible for transportation in the regular category, as defined
6.4in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause
6.5(2).
6.6    (b) "Transportation category" means a category of transportation service provided to
6.7pupils as follows:
6.8    (1) Regular transportation is:
6.9    (i) transportation to and from school during the regular school year for resident elementary
6.10pupils residing one mile or more from the public or nonpublic school they attend, and
6.11resident secondary pupils residing two miles or more from the public or nonpublic school
6.12they attend, excluding desegregation transportation and noon kindergarten transportation;
6.13but with respect to transportation of pupils to and from nonpublic schools, only to the extent
6.14permitted by sections 123B.84 to 123B.87;
6.15    (ii) transportation of resident pupils to and from language immersion programs;
6.16    (iii) transportation of a pupil who is a custodial parent and that pupil's child between the
6.17pupil's home and the child care provider and between the provider and the school, if the
6.18home and provider are within the attendance area of the school;
6.19    (iv) transportation to and from or board and lodging in another district, of resident pupils
6.20of a district without a secondary school; and
6.21    (v) transportation to and from school during the regular school year required under
6.22subdivision 3 for nonresident elementary pupils when the distance from the attendance area
6.23border to the public school is one mile or more, and for nonresident secondary pupils when
6.24the distance from the attendance area border to the public school is two miles or more,
6.25excluding desegregation transportation and noon kindergarten transportation.
6.26    For the purposes of this paragraph, a district may designate a licensed day care facility,
6.27school day care facility, respite care facility, the residence of a relative, or the residence of
6.28a person or other location chosen by the pupil's parent or guardian, or an after-school program
6.29for children operated by a political subdivision of the state, as the home of a pupil for part
6.30or all of the day, if requested by the pupil's parent or guardian, and if that facility, residence,
6.31or program is within the attendance area of the school the pupil attends.
6.32    (2) Excess transportation is:
7.1    (i) transportation to and from school during the regular school year for resident secondary
7.2pupils residing at least one mile but less than two miles from the public or nonpublic school
7.3they attend, and transportation to and from school for resident pupils residing less than one
7.4mile from school who are transported because of full-service school zones, extraordinary
7.5traffic, drug, or crime hazards; and
7.6    (ii) transportation to and from school during the regular school year required under
7.7subdivision 3 for nonresident secondary pupils when the distance from the attendance area
7.8border to the school is at least one mile but less than two miles from the public school they
7.9attend, and for nonresident pupils when the distance from the attendance area border to the
7.10school is less than one mile from the school and who are transported because of full-service
7.11school zones, extraordinary traffic, drug, or crime hazards.
7.12    (3) Desegregation transportation is transportation within and outside of the district during
7.13the regular school year of pupils to and from schools located outside their normal attendance
7.14areas under a plan for desegregation mandated by the commissioner or under court order.
7.15    (4) "Transportation services for pupils with disabilities" is:
7.16    (i) transportation of pupils with disabilities who cannot be transported on a regular school
7.17bus between home or a respite care facility and school;
7.18    (ii) necessary transportation of pupils with disabilities from home or from school to
7.19other buildings, including centers such as developmental achievement centers, hospitals,
7.20and treatment centers where special instruction or services required by sections 125A.03 to
7.21125A.24 , 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
7.22where services are provided;
7.23    (iii) necessary transportation for resident pupils with disabilities required by sections
7.24125A.12 , and 125A.26 to 125A.48;
7.25    (iv) board and lodging for pupils with disabilities in a district maintaining special classes;
7.26    (v) transportation from one educational facility to another within the district for resident
7.27pupils enrolled on a shared-time basis in educational programs, and necessary transportation
7.28required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils with disabilities
7.29who are provided special instruction and services on a shared-time basis or if resident pupils
7.30are not transported, the costs of necessary travel between public and private schools or
7.31neutral instructional sites by essential personnel employed by the district's program for
7.32children with a disability;
8.1    (vi) transportation for resident pupils with disabilities to and from board and lodging
8.2facilities when the pupil is boarded and lodged for educational purposes;
8.3(vii) transportation of pupils for a curricular field trip activity on a school bus equipped
8.4with a power lift when the power lift is required by a student's disability or section 504 plan;
8.5and
8.6(viii) services described in clauses (i) to (vii), when provided for pupils with disabilities
8.7in conjunction with a summer instructional program that relates to the pupil's individualized
8.8education program or in conjunction with a learning year program established under section
8.9124D.128 .
8.10    For purposes of computing special education initial aid under section 125A.76, the cost
8.11of providing transportation for children with disabilities includes (A) the additional cost of
8.12transporting a student in a shelter care facility as defined in section 260C.007, subdivision
8.1330, a homeless student from a temporary nonshelter home in another district to the school
8.14of origin, or a formerly homeless student from a permanent home in another district to the
8.15school of origin but only through the end of the academic year; and (B) depreciation on
8.16district-owned school buses purchased after July 1, 2005, and used primarily for
8.17transportation of pupils with disabilities, calculated according to paragraph (a), clauses (ii)
8.18and (iii). Depreciation costs included in the disabled transportation category must be excluded
8.19in calculating the actual expenditure per pupil transported in the regular and excess
8.20transportation categories according to paragraph (a). For purposes of subitem (A), a school
8.21district may transport a child who does not have a school of origin to the same school
8.22attended by that child's sibling, if the siblings are homeless or in a shelter care facility.
8.23    (5) "Nonpublic nonregular transportation" is:
8.24    (i) transportation from one educational facility to another within the district for resident
8.25pupils enrolled on a shared-time basis in educational programs, excluding transportation
8.26for nonpublic pupils with disabilities under clause (4);
8.27    (ii) transportation within district boundaries between a nonpublic school and a public
8.28school or a neutral site for nonpublic school pupils who are provided pupil support services
8.29pursuant to section 123B.44; and
8.30    (iii) late transportation home from school or between schools within a district for
8.31nonpublic school pupils involved in after-school activities.
8.32    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for educational
8.33programs and services, including diagnostic testing, guidance and counseling services, and
9.1health services. A mobile unit located off nonpublic school premises is a neutral site as
9.2defined in section 123B.41, subdivision 13.
9.3EFFECTIVE DATE.This section is effective retroactively from December 10, 2016.

9.4    Sec. 8. Minnesota Statutes 2016, section 126C.05, subdivision 8, is amended to read:
9.5    Subd. 8. Average daily membership. (a) Membership for pupils in grades kindergarten
9.6through 12 and for prekindergarten pupils with disabilities shall mean the number of pupils
9.7on the current roll of the school, counted from the date of entry until withdrawal. The date
9.8of withdrawal shall mean the day the pupil permanently leaves the school or the date it is
9.9officially known that the pupil has left or has been legally excused. However, a pupil,
9.10regardless of age, who has been absent from school for 15 consecutive school days during
9.11the regular school year or for five consecutive school days during summer school or
9.12intersession classes of flexible school year programs without receiving instruction in the
9.13home or hospital shall be dropped from the roll and classified as withdrawn. Nothing in this
9.14section shall be construed as waiving the compulsory attendance provisions cited in section
9.15120A.22 . Average daily membership equals the sum for all pupils of the number of days
9.16of the school year each pupil is enrolled in the district's schools divided by the number of
9.17days the schools are in session or are providing e-learning days due to inclement weather.
9.18Days of summer school or intersession classes of flexible school year programs are only
9.19included in the computation of membership for pupils with a disability not appropriately
9.20served primarily in the regular classroom. A student must not be counted as more than 1.2
9.21pupils in average daily membership under this section and section 126C.10, subdivision 2a,
9.22paragraph (b). When the initial total average daily membership exceeds 1.2 for a pupil
9.23enrolled in more than one school district during the fiscal year, each district's average daily
9.24membership must be reduced proportionately.
9.25(b) A student must not be counted as more than one pupil in average daily membership
9.26except for purposes of section 126C.10, subdivision 2a.

9.27    Sec. 9. Minnesota Statutes 2016, section 126C.10, subdivision 2, is amended to read:
9.28    Subd. 2. Basic revenue. The basic revenue for each district equals the formula allowance
9.29times the adjusted pupil units for the school year. The formula allowance for fiscal year
9.302015 is $5,831. The formula allowance for fiscal year 2016 is $5,948. The formula allowance
9.31for fiscal year 2017 and later is $6,067. The formula allowance for fiscal year 2018 is $6,158.
9.32The formula allowance for fiscal year 2019 and later is $6,249.
9.33EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and later.

10.1    Sec. 10. Minnesota Statutes 2016, section 126C.10, subdivision 2a, is amended to read:
10.2    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue is equal
10.3to the product of $5,117 and the sum of the adjusted pupil units of the district for each pupil
10.4in average daily membership in excess of 1.0 and less than 1.2 according to section 126C.05,
10.5subdivision 8
.
10.6(b) Extended time revenue for pupils placed in an on-site education program at the Prairie
10.7Lakes Education Center or the Lake Park School, located within the borders of Independent
10.8School District No. 347, Willmar, for instruction provided after the end of the preceding
10.9regular school year and before the beginning of the following regular school year equals
10.10membership hours divided by the minimum annual instructional hours in section 126C.05,
10.11subdivision 15, not to exceed 0.20, times the pupil unit weighting in section 126C.05,
10.12subdivision 1, times $5,117.
10.13(c) A school district's extended time revenue may be used for extended day programs,
10.14extended week programs, summer school, vacation break academies such as spring break
10.15academies and summer term academies, and other programming authorized under the
10.16learning year program.
10.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2018 and later.

10.18    Sec. 11. Minnesota Statutes 2016, section 126C.10, subdivision 3, is amended to read:
10.19    Subd. 3. Compensatory education revenue. (a) For fiscal year 2014, the compensatory
10.20education revenue for each building in the district equals the formula allowance minus $415
10.21times the compensation revenue pupil units computed according to section 126C.05,
10.22subdivision 3
. For fiscal year 2015 and later, The compensatory education revenue for each
10.23building in the district equals the formula allowance minus $839 times the compensation
10.24revenue pupil units computed according to section 126C.05, subdivision 3. A district's
10.25compensatory revenue equals the sum of its compensatory revenue for each building in the
10.26district and the amounts designated under Laws 2015, First Special Session chapter 3, article
10.272, section 70, subdivision 8, for fiscal year 2017. Revenue shall be paid to the district and
10.28must be allocated according to section 126C.15, subdivision 2.
10.29(b) When the district contracting with an alternative program under section 124D.69
10.30changes prior to the start of a school year, the compensatory revenue generated by pupils
10.31attending the program shall be paid to the district contracting with the alternative program
10.32for the current school year, and shall not be paid to the district contracting with the alternative
10.33program for the prior school year.
11.1(c) When the fiscal agent district for an area learning center changes prior to the start of
11.2a school year, the compensatory revenue shall be paid to the fiscal agent district for the
11.3current school year, and shall not be paid to the fiscal agent district for the prior school year.
11.4(d) Of the amount of revenue under this subdivision, 1.7 percent for fiscal year 2018,
11.53.5 percent for fiscal year 2019, and for fiscal year 2020 and later, 3.5 percent plus the
11.6percentage change in the formula allowance from fiscal year 2019, must be used for extended
11.7time activities under subdivision 2a, paragraph (c).
11.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2018 and later.

11.9    Sec. 12. Minnesota Statutes 2016, section 126C.10, subdivision 13a, is amended to read:
11.10    Subd. 13a. Operating capital levy. To obtain operating capital revenue, a district may
11.11levy an amount not more than the product of its operating capital revenue for the fiscal year
11.12times the lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to
11.13the operating capital equalizing factor. The operating capital equalizing factor equals $15,740
11.14for fiscal year 2017, $19,972 $19,245 for fiscal year 2018, and $22,912 $22,185 for fiscal
11.15year 2019 and later.

11.16    Sec. 13. Minnesota Statutes 2016, section 126C.10, is amended by adding a subdivision
11.17to read:
11.18    Subd. 18a. Pupil transportation adjustment. (a) An independent, common, or special
11.19school district's transportation sparsity revenue under Minnesota Statutes, section 126C.10,
11.20subdivision 18, is increased by the greater of zero or 18.2 percent of the difference between:
11.21(1) the lesser of the district's total cost for regular and excess pupil transportation under
11.22section 123B.92, subdivision 1, paragraph (b), including depreciation, for the previous fiscal
11.23year or 105 percent of the district's total cost for the second previous fiscal year; and
11.24(2) the sum of:
11.25(i) 4.66 percent of the district's basic revenue for the previous fiscal year;
11.26(ii) transportation sparsity revenue under Minnesota Statutes, section 126C.10, subdivision
11.2718, for the previous fiscal year; and
11.28(iii) the district's charter school transportation adjustment for the previous fiscal year.
11.29(b) A charter school's pupil transportation adjustment equals the school district per pupil
11.30adjustment under paragraph (a).
11.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2018 and later.

12.1    Sec. 14. Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read:
12.2    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
12.3subdivision 1
, may be increased in the amount approved by the voters of the district at a
12.4referendum called for the purpose. The referendum may be called by the board. The
12.5referendum must be conducted one or two calendar years before the increased levy authority,
12.6if approved, first becomes payable. Only one election to approve an increase may be held
12.7in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
12.8paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
12.9November. The ballot must state the maximum amount of the increased revenue per adjusted
12.10pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
12.11per adjusted pupil unit that differs from year to year over the number of years for which the
12.12increased revenue is authorized or may state that the amount shall increase annually by the
12.13rate of inflation. For this purpose, the rate of inflation shall be the annual inflationary increase
12.14calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum
12.15levy authority is expiring. In this case, the ballot may also compare the proposed levy
12.16authority to the existing expiring levy authority, and express the proposed increase as the
12.17amount, if any, over the expiring referendum levy authority. The ballot must designate the
12.18specific number of years, not to exceed ten, for which the referendum authorization applies.
12.19The ballot, including a ballot on the question to revoke or reduce the increased revenue
12.20amount under paragraph (c), must abbreviate the term "per adjusted pupil unit" as "per
12.21pupil." The notice required under section 275.60 may be modified to read, in cases of
12.22renewing existing levies at the same amount per pupil as in the previous year:
12.23"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
12.24EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
12.25TO EXPIRE."
12.26    The ballot may contain a textual portion with the information required in this subdivision
12.27and a question stating substantially the following:
12.28    "Shall the increase in the revenue proposed by (petition to) the board of ......., School
12.29District No. .., be approved?"
12.30    If approved, an amount equal to the approved revenue per adjusted pupil unit times the
12.31adjusted pupil units for the school year beginning in the year after the levy is certified shall
12.32be authorized for certification for the number of years approved, if applicable, or until
12.33revoked or reduced by the voters of the district at a subsequent referendum.
13.1    (b) The board must prepare and deliver by first class mail at least 15 days but no more
13.2than 30 days before the day of the referendum to each taxpayer a notice of the referendum
13.3and the proposed revenue increase. The board need not mail more than one notice to any
13.4taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
13.5those shown to be owners on the records of the county auditor or, in any county where tax
13.6statements are mailed by the county treasurer, on the records of the county treasurer. Every
13.7property owner whose name does not appear on the records of the county auditor or the
13.8county treasurer is deemed to have waived this mailed notice unless the owner has requested
13.9in writing that the county auditor or county treasurer, as the case may be, include the name
13.10on the records for this purpose. The notice must project the anticipated amount of tax increase
13.11in annual dollars for typical residential homesteads, agricultural homesteads, apartments,
13.12and commercial-industrial property within the school district.
13.13    The notice for a referendum may state that an existing referendum levy is expiring and
13.14project the anticipated amount of increase over the existing referendum levy in the first
13.15year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
13.16apartments, and commercial-industrial property within the district.
13.17    The notice must include the following statement: "Passage of this referendum will result
13.18in an increase in your property taxes." However, in cases of renewing existing levies, the
13.19notice may include the following statement: "Passage of this referendum extends an existing
13.20operating referendum at the same amount per pupil as in the previous year."
13.21    (c) A referendum on the question of revoking or reducing the increased revenue amount
13.22authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
13.23or reduce the revenue amount must state the amount per adjusted pupil unit by which the
13.24authority is to be reduced. Revenue authority approved by the voters of the district pursuant
13.25to paragraph (a) must be available to the school district at least once before it is subject to
13.26a referendum on its revocation or reduction for subsequent years. Only one revocation or
13.27reduction referendum may be held to revoke or reduce referendum revenue for any specific
13.28year and for years thereafter.
13.29    (d) The approval of 50 percent plus one of those voting on the question is required to
13.30pass a referendum authorized by this subdivision.
13.31    (e) At least 15 days before the day of the referendum, the district must submit a copy of
13.32the notice required under paragraph (b) to the commissioner and to the county auditor of
13.33each county in which the district is located. Within 15 days after the results of the referendum
13.34have been certified by the board, or in the case of a recount, the certification of the results
14.1of the recount by the canvassing board, the district must notify the commissioner of the
14.2results of the referendum.
14.3EFFECTIVE DATE.This section is effective August 1, 2017.

14.4    Sec. 15. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
14.5    Subd. 10. Payments to school nonoperating funds. Each fiscal year state general fund
14.6payments for a district nonoperating fund must be made at the current year aid payment
14.7percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
14.8shall be paid in 12 six equal monthly installments from July through December. The amount
14.9of the actual entitlement, after adjustment for actual data, minus the payments made during
14.10the fiscal year of the entitlement must be paid prior to October 31 of the following school
14.11year. The commissioner may make advance payments of debt service equalization aid and
14.12state-paid tax credits for a district's debt service fund earlier than would occur under the
14.13preceding schedule if the district submits evidence showing a serious cash flow problem in
14.14the fund. The commissioner may make earlier payments during the year and, if necessary,
14.15increase the percent of the entitlement paid to reduce the cash flow problem.

14.16    Sec. 16. NEVIS SCHOOL DISTRICT; LEVY ADJUSTMENT.
14.17Notwithstanding Minnesota Statutes, section 126C.48, Independent School District No.
14.18308, Nevis, at the discretion of its school board, may spread any levy adjustment remaining
14.19from the conversion of its operating referendum revenue over three or fewer years beginning
14.20with school property taxes for taxes payable in 2018.
14.21EFFECTIVE DATE.This section is effective the day following final enactment.

14.22    Sec. 17. APPROPRIATIONS.
14.23    Subdivision 1. Department of Education. The sums indicated in this section are
14.24appropriated from the general fund to the Department of Education for the fiscal years
14.25designated.
14.26    Subd. 2. General education aid. For general education aid under Minnesota Statutes,
14.27section 126C.13, subdivision 4:
14.28
$
6,981,058,000
.....
2018
14.29
$
7,139,147,000
.....
2019
14.30The 2018 appropriation includes $686,828,000 for 2017 and $6,294,230,000 for 2018.
14.31The 2019 appropriation includes $699,358,000 for 2018 and $6,439,789,000 for 2019.
15.1    Subd. 3. Enrollment options transportation. For transportation of pupils attending
15.2postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
15.3of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
15.4
$
29,000
.....
2018
15.5
$
31,000
.....
2019
15.6    Subd. 4. Abatement aid. For abatement aid under Minnesota Statutes, section 127A.49:
15.7
$
2,374,000
.....
2018
15.8
$
2,163,000
.....
2019
15.9The 2018 appropriation includes $262,000 for 2017 and $2,112,000 for 2018.
15.10The 2019 appropriation includes $234,000 for 2018 and $1,929,000 for 2019.
15.11    Subd. 5. Consolidation transition aid. For districts consolidating under Minnesota
15.12Statutes, section 123A.485:
15.13
$
185,000
.....
2018
15.14
$
382,000
.....
2019
15.15The 2018 appropriation includes $0 for 2017 and $185,000 for 2018.
15.16The 2019 appropriation includes $20,000 for 2018 and $362,000 for 2019.
15.17    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
15.18Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
15.19
$
18,182,000
.....
2018
15.20
$
19,164,000
.....
2019
15.21The 2018 appropriation includes $1,687,000 for 2017 and $16,495,000 for 2018.
15.22The 2019 appropriation includes $1,832,000 for 2018 and $17,332,000 for 2019.
15.23    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid under
15.24Minnesota Statutes, section 123B.92, subdivision 9:
15.25
$
18,292,000
.....
2018
15.26
$
18,366,000
.....
2019
15.27The 2018 appropriation includes $1,835,000 for 2017 and $16,457,000 for 2018.
15.28The 2019 appropriation includes $1,828,000 for 2018 and $16,538,000 for 2019.
15.29    Subd. 8. One-room schoolhouse. For a grant to Independent School District No. 690,
15.30Warroad, to operate the Angle Inlet School:
15.31
$
65,000
.....
2018
16.1
$
65,000
.....
2019
16.2    Subd. 9. Career and technical aid. For career and technical aid under Minnesota
16.3Statutes, section 124D.4531, subdivision 1b:
16.4
$
4,561,000
.....
2018
16.5
$
4,125,000
.....
2019
16.6The 2018 appropriation includes $476,000 for 2017 and $4,085,000 for 2018.
16.7The 2019 appropriation includes $453,000 for 2018 and $3,672,000 for 2019.

16.8    Sec. 18. REPEALER.
16.9Minnesota Statutes 2016, section 124D.73, subdivision 2, is repealed.

16.10ARTICLE 2
16.11EDUCATION EXCELLENCE

16.12    Section 1. Minnesota Statutes 2016, section 120A.22, subdivision 9, is amended to read:
16.13    Subd. 9. Curriculum Knowledge and skills. Instruction must be provided in at least
16.14the following subject areas:
16.15(1) basic communication skills including reading and writing, literature, and fine arts;
16.16(2) mathematics and science;
16.17(3) social studies including history, geography, and economics, government, and
16.18citizenship; and
16.19(4) health and physical education.
16.20Instruction, textbooks, and materials must be in the English language. Another language
16.21may be used pursuant to sections 124D.59 to 124D.61.

16.22    Sec. 2. Minnesota Statutes 2016, section 120B.021, subdivision 1, is amended to read:
16.23    Subdivision 1. Required academic standards. (a) The following subject areas are
16.24required for statewide accountability:
16.25    (1) language arts;
16.26    (2) mathematics;
16.27    (3) science;
17.1    (4) social studies, including history, geography, economics, and government and
17.2citizenship that includes civics consistent with section 120B.02, subdivision 3;
17.3    (5) physical education;
17.4    (6) health, for which locally developed academic standards apply; and
17.5    (7) the arts, for which statewide or locally developed academic standards apply, as
17.6determined by the school district. Public elementary and middle schools must offer at least
17.7three and require at least two of the following four arts areas: dance; music; theater; and
17.8visual arts. Public high schools must offer at least three and require at least one of the
17.9following five arts areas: media arts; dance; music; theater; and visual arts.
17.10    (b) For purposes of applicable federal law, the academic standards for language arts,
17.11mathematics, and science apply to all public school students, except the very few students
17.12with extreme cognitive or physical impairments for whom an individualized education
17.13program team has determined that the required academic standards are inappropriate. An
17.14individualized education program team that makes this determination must establish
17.15alternative standards.
17.16(c) Beginning in the 2016-2017 school year, The department must adopt the most recent
17.17National Association of Sport and Physical Education SHAPE America (Society of Health
17.18and Physical Educators) kindergarten through grade 12 standards and benchmarks for
17.19physical education as the required physical education academic standards. The department
17.20may modify and adapt the national standards to accommodate state interest. The modification
17.21and adaptations must maintain the purpose and integrity of the national standards. The
17.22department must make available sample assessments, which school districts may use as an
17.23alternative to local assessments, to assess students' mastery of the physical education
17.24standards beginning in the 2018-2019 school year.
17.25(d) A school district may include child sexual abuse prevention instruction in a health
17.26curriculum, consistent with paragraph (a), clause (6). Child sexual abuse prevention
17.27instruction may include age-appropriate instruction on recognizing sexual abuse and assault,
17.28boundary violations, and ways offenders groom or desensitize victims, as well as strategies
17.29to promote disclosure, reduce self-blame, and mobilize bystanders. A school district may
17.30provide instruction under this paragraph in a variety of ways, including at an annual assembly
17.31or classroom presentation. A school district may also provide parents information on the
17.32warning signs of child sexual abuse and available resources.
18.1    (d) (e) District efforts to develop, implement, or improve instruction or curriculum as a
18.2result of the provisions of this section must be consistent with sections 120B.10, 120B.11,
18.3and 120B.20.

18.4    Sec. 3. Minnesota Statutes 2016, section 120B.021, subdivision 3, is amended to read:
18.5    Subd. 3. Rulemaking. The commissioner, consistent with the requirements of this section
18.6and section 120B.022, must adopt statewide rules under section 14.389 for implementing
18.7statewide rigorous core academic standards in language arts, mathematics, science, social
18.8studies, physical education, and the arts. After the rules authorized under this subdivision
18.9are initially adopted, the commissioner may not amend or repeal these rules nor adopt new
18.10rules on the same topic without specific legislative authorization. The academic standards
18.11for language arts, mathematics, and the arts must be implemented for all students beginning
18.12in the 2003-2004 school year. The academic standards for science and social studies must
18.13be implemented for all students beginning in the 2005-2006 school year.

18.14    Sec. 4. Minnesota Statutes 2016, section 120B.022, subdivision 1b, is amended to read:
18.15    Subd. 1b. State bilingual and multilingual seals. (a) Consistent with efforts to strive
18.16for the world's best workforce under sections 120B.11 and 124E.03, subdivision 2, paragraph
18.17(i), and close the academic achievement and opportunity gap under sections 124D.861 and
18.18124D.862 , voluntary state bilingual and multilingual seals are established to recognize high
18.19school students in any school district, charter school, or nonpublic school who demonstrate
18.20an advanced-low level or an intermediate high level of functional proficiency in listening,
18.21speaking, reading, and writing on either assessments aligned with American Council on the
18.22Teaching of Foreign Languages' (ACTFL) proficiency guidelines or on equivalent valid
18.23and reliable assessments in one or more languages in addition to English. American Sign
18.24Language is a language other than English for purposes of this subdivision and a world
18.25language for purposes of subdivision 1a.
18.26(b) In addition to paragraph (a), to be eligible to receive a seal:
18.27(1) students must satisfactorily complete all required English language arts credits; and
18.28(2) students must demonstrate mastery of Minnesota's English language proficiency
18.29standards.
18.30(c) Consistent with this subdivision, a high school student who demonstrates an
18.31intermediate high ACTFL level of functional proficiency in one language in addition to
18.32English is eligible to receive the state bilingual gold seal. A high school student who
19.1demonstrates an intermediate high ACTFL level of functional native proficiency in more
19.2than one language in addition to English is eligible to receive the state multilingual gold
19.3seal. A high school student who demonstrates an advanced-low ACTFL level of functional
19.4proficiency in one language in addition to English is eligible to receive the state bilingual
19.5platinum seal. A high school student who demonstrates an advanced-low ACTFL level of
19.6functional proficiency in more than one language in addition to English is eligible to receive
19.7the state multilingual platinum seal.
19.8(d) School districts and charter schools may give students periodic opportunities to
19.9demonstrate their level of proficiency in listening, speaking, reading, and writing in a
19.10language in addition to English. Where valid and reliable assessments are unavailable, a
19.11school district or charter school may rely on evaluators trained in assessing under ACTFL
19.12proficiency guidelines to assess a student's level of foreign, heritage, or indigenous language
19.13proficiency under this section. School districts and charter schools must maintain appropriate
19.14records to identify high school students eligible to receive the state bilingual or multilingual
19.15gold and platinum seals. The school district or charter school must affix the appropriate seal
19.16to the transcript of each high school student who meets the requirements of this subdivision
19.17and may affix the seal to the student's diploma. A school district or charter school must not
19.18charge the high school student a fee for this seal.
19.19(e) A school district or charter school may award elective course credits in world
19.20languages to a student who demonstrates the requisite proficiency in a language other than
19.21English under this section.
19.22(f) A school district or charter school may award community service credit to a student
19.23who demonstrates an intermediate high or advanced-low ACTFL level of functional
19.24proficiency in listening, speaking, reading, and writing in a language other than English
19.25and who participates in community service activities that are integrated into the curriculum,
19.26involve the participation of teachers, and support biliteracy in the school or local community.
19.27(g) The commissioner must list on the Web page those assessments that are aligned to
19.28ACTFL proficiency guidelines.
19.29(h) By August 1, 2015, the colleges and universities of the Minnesota State Colleges
19.30and Universities system must establish criteria to translate the seals into college credits
19.31based on the world language course equivalencies identified by the Minnesota State Colleges
19.32and Universities faculty and staff and, upon request from an enrolled student, the Minnesota
19.33State Colleges and Universities may award foreign language credits to a student who receives
19.34a Minnesota World Language Proficiency Certificate under subdivision 1a. A student who
20.1demonstrated the requisite level of language proficiency in grade 10, 11, or 12 to receive a
20.2seal or certificate and is enrolled in a Minnesota State Colleges and Universities institution
20.3must request college credits for the student's seal or proficiency certificate within three
20.4academic years after graduating from high school. The University of Minnesota is encouraged
20.5to award students foreign language academic credits consistent with this paragraph.

20.6    Sec. 5. Minnesota Statutes 2016, section 120B.12, subdivision 2, is amended to read:
20.7    Subd. 2. Identification; report. (a) Each school district shall identify before the end of
20.8kindergarten, grade 1, and grade 2 students who are not reading at grade level before the
20.9end of the current school year and shall identify students in grade 3 or higher who
20.10demonstrate a reading difficulty to a classroom teacher. Reading assessments in English,
20.11and in the predominant languages of district students where practicable, must identify and
20.12evaluate students' areas of academic need related to literacy. The district also must monitor
20.13the progress and provide reading instruction appropriate to the specific needs of English
20.14learners. The district must use a locally adopted, developmentally appropriate, and culturally
20.15responsive assessment and annually report summary assessment results to the commissioner
20.16by July 1. The district also must annually report to the commissioner by July 1 a summary
20.17of the district's efforts to screen and identify students with:
20.18    (1) dyslexia, using screening tools such as those recommended by the department's
20.19dyslexia and literacy specialist; or
20.20    (2) convergence insufficiency disorder to the commissioner by July 1.
20.21(b) A student identified under this subdivision must be provided with alternate instruction
20.22under section 125A.56, subdivision 1.

20.23    Sec. 6. Minnesota Statutes 2016, section 120B.12, subdivision 2a, is amended to read:
20.24    Subd. 2a. Parent notification and involvement. Schools, at least annually, must give
20.25the parent of each student who is not reading at or above grade level timely information
20.26about:
20.27(1) the student's reading proficiency as measured by a locally adopted assessment;
20.28(2) reading-related services currently being provided to the student and the student's
20.29progress; and
20.30(3) strategies for parents to use at home in helping their student succeed in becoming
20.31grade-level proficient in reading in English and in their native language.
21.1A district may not use this section to deny a student's right to a special education
21.2evaluation.

21.3    Sec. 7. Minnesota Statutes 2016, section 120B.12, subdivision 3, is amended to read:
21.4    Subd. 3. Intervention. (a) For each student identified under subdivision 2, the district
21.5shall provide reading intervention to accelerate student growth and reach the goal of reading
21.6at or above grade level by the end of the current grade and school year. If a student does
21.7not read at or above grade level by the end of grade 3, the district must continue to provide
21.8reading intervention until the student reads at grade level. District intervention methods
21.9shall encourage family engagement and, where possible, collaboration with appropriate
21.10school and community programs. Intervention methods may include, but are not limited to,
21.11requiring attendance in summer school, intensified reading instruction that may require that
21.12the student be removed from the regular classroom for part of the school day, extended-day
21.13programs, or programs that strengthen students' cultural connections.
21.14(b) A school district or charter school is strongly encouraged to provide a personal
21.15learning plan for a student who is unable to demonstrate grade-level proficiency, as measured
21.16by the statewide reading assessment in grade 3. The district or charter school must determine
21.17the format of the personal learning plan in collaboration with the student's educators and
21.18other appropriate professionals. The school must develop the learning plan in consultation
21.19with the student's parent or guardian. The personal learning plan must address knowledge
21.20gaps and skill deficiencies through strategies such as specific exercises and practices during
21.21and outside of the regular school day, periodic assessments, and reasonable timelines. The
21.22personal learning plan may include grade retention, if it is in the student's best interest. A
21.23school must maintain and regularly update and modify the personal learning plan until the
21.24student reads at grade level. This paragraph does not apply to a student under an
21.25individualized education program.

21.26    Sec. 8. [120B.122] DYSLEXIA SPECIALIST.
21.27    Subdivision 1. Purpose. The department must employ a dyslexia specialist to provide
21.28technical assistance for dyslexia and related disorders and to serve as the primary source of
21.29information and support for schools in addressing the needs of students with dyslexia and
21.30related disorders. The dyslexia specialist shall also act to increase professional awareness
21.31and instructional competencies to meet the educational needs of students with dyslexia or
21.32identified with risk characteristics associated with dyslexia and shall develop implementation
21.33guidance and make recommendations to the commissioner consistent with section 122A.06,
22.1subdivision 4, to be used to assist general education teachers and special education teachers
22.2to recognize educational needs and to improve literacy outcomes for students with dyslexia
22.3or identified with risk characteristics associated with dyslexia, including recommendations
22.4related to increasing the availability of online and asynchronous professional development
22.5programs and materials.
22.6    Subd. 2. Definition. For purposes of this section, a "dyslexia specialist" means a dyslexia
22.7therapist, licensed psychologist, licensed speech-language pathologist, or certified dyslexia
22.8training specialist who has a minimum of three years of field experience in screening,
22.9identifying, and treating dyslexia and related disorders.
22.10    Subd. 3. Requirements. A dyslexia specialist shall be highly trained in dyslexia and
22.11related disorders and in using interventions and treatments that are evidence-based,
22.12multisensory, direct, explicit, structured, and sequential in the areas of phonics, phonemic
22.13awareness, vocabulary, fluency, and comprehension.

22.14    Sec. 9. Minnesota Statutes 2016, section 120B.125, is amended to read:
22.15120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION TO
22.16POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL LEARNING
22.17PLANS.
22.18(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 120B.30,
22.19subdivision 1
, paragraph (c), 125A.08, and other related sections, school districts, beginning
22.20in the 2013-2014 school year, must assist all students by no later than grade 9 to explore
22.21their educational, college, and career interests, aptitudes, and aspirations and develop a plan
22.22for a smooth and successful transition to postsecondary education or employment. All
22.23students' plans must:
22.24(1) provide a comprehensive plan to prepare for and complete a career and college ready
22.25curriculum by meeting state and local academic standards and developing career and
22.26employment-related skills such as team work, collaboration, creativity, communication,
22.27critical thinking, and good work habits;
22.28(2) emphasize academic rigor and high expectations and inform the student, and the
22.29student's parent or guardian if the student is a minor, of the student's achievement level
22.30score on the Minnesota Comprehensive Assessments that are administered during high
22.31school;
23.1(3) help students identify interests, aptitudes, aspirations, and personal learning styles
23.2that may affect their career and college ready goals and postsecondary education and
23.3employment choices;
23.4(4) set appropriate career and college ready goals with timelines that identify effective
23.5means for achieving those goals;
23.6(5) help students access education and career options;
23.7(6) integrate strong academic content into career-focused courses and applied and
23.8experiential learning opportunities and integrate relevant career-focused courses and applied
23.9and experiential learning opportunities into strong academic content;
23.10(7) help identify and access appropriate counseling and other supports and assistance
23.11that enable students to complete required coursework, prepare for postsecondary education
23.12and careers, and obtain information about postsecondary education costs and eligibility for
23.13financial aid and scholarship;
23.14(8) help identify collaborative partnerships among prekindergarten through grade 12
23.15schools, postsecondary institutions, economic development agencies, and local and regional
23.16employers that support students' transition to postsecondary education and employment and
23.17provide students with applied and experiential learning opportunities; and
23.18(9) be reviewed and revised at least annually by the student, the student's parent or
23.19guardian, and the school or district to ensure that the student's course-taking schedule keeps
23.20the student making adequate progress to meet state and local academic standards and high
23.21school graduation requirements and with a reasonable chance to succeed with employment
23.22or postsecondary education without the need to first complete remedial course work.
23.23(b) A school district may develop grade-level curricula or provide instruction that
23.24introduces students to various careers, but must not require any curriculum, instruction, or
23.25employment-related activity that obligates an elementary or secondary student to involuntarily
23.26select or pursue a career, career interest, employment goals, or related job training.
23.27(c) Educators must possess the knowledge and skills to effectively teach all English
23.28learners in their classrooms. School districts must provide appropriate curriculum, targeted
23.29materials, professional development opportunities for educators, and sufficient resources
23.30to enable English learners to become career and college ready.
23.31(d) When assisting students in developing a plan for a smooth and successful transition
23.32to postsecondary education and employment, districts must recognize the unique possibilities
24.1of each student and ensure that the contents of each student's plan reflect the student's unique
24.2talents, skills, and abilities as the student grows, develops, and learns.
24.3(e) If a student with a disability has an individualized education program (IEP) or
24.4standardized written plan that meets the plan components of this section, the IEP satisfies
24.5the requirement and no additional transition plan is needed.
24.6(f) Students who do not meet or exceed Minnesota academic standards, as measured by
24.7the Minnesota Comprehensive Assessments that are administered during high school, shall
24.8be informed that admission to a public school is free and available to any resident under 21
24.9years of age or who meets the requirements of section 120A.20, subdivision 1, paragraph
24.10(c). A student's plan under this section shall continue while the student is enrolled.
24.11EFFECTIVE DATE.This section is effective July 1, 2017.

24.12    Sec. 10. Minnesota Statutes 2016, section 120B.132, is amended to read:
24.13120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED PLACEMENT
24.14AND INTERNATIONAL BACCALAUREATE PROGRAMS.
24.15    Subdivision 1. Establishment; eligibility. A program is established to raise kindergarten
24.16through grade 12 academic achievement through increased student participation in
24.17preadvanced placement, advanced placement, and international baccalaureate programs,
24.18consistent with section 120B.13. Schools and charter schools eligible to participate under
24.19this section:
24.20    (1) must have a three-year plan approved by the local school board to establish a new
24.21international baccalaureate program leading to international baccalaureate authorization,
24.22expand an existing program that leads to international baccalaureate authorization, or expand
24.23an existing authorized international baccalaureate program; or
24.24    (2) must have a three-year plan approved by the local school board to create a new or
24.25expand an existing program to implement the college board advanced placement courses
24.26and exams or preadvanced placement initiative; and
24.27    (3) must propose to further raise students' academic achievement by:
24.28    (i) increasing the availability of and all students' access to advanced placement or
24.29international baccalaureate courses or programs;
24.30    (ii) expanding the breadth of advanced placement or international baccalaureate courses
24.31or programs that are available to students;
25.1    (iii) increasing the number and the diversity of the students who participate in advanced
25.2placement or international baccalaureate courses or programs and succeed;
25.3    (iv) providing low-income and other disadvantaged students with increased access to
25.4advanced placement or international baccalaureate courses and programs; or
25.5    (v) increasing the number of high school students, including low-income and other
25.6disadvantaged students, who receive college credit by successfully completing advanced
25.7placement or international baccalaureate courses or programs and achieving satisfactory
25.8scores on related exams.
25.9    Subd. 2. Application and review process; funding priority. (a) Charter schools and
25.10school districts in which eligible schools under subdivision 1 are located may apply to the
25.11commissioner, in the form and manner the commissioner determines, for competitive funding
25.12to further raise students' academic achievement. The application must detail the specific
25.13efforts the applicant intends to undertake in further raising students' academic achievement,
25.14consistent with subdivision 1, and a proposed budget detailing the district or charter school's
25.15current and proposed expenditures for advanced placement, preadvanced placement, and
25.16international baccalaureate courses and programs. The proposed budget must demonstrate
25.17that the applicant's efforts will support implementation of advanced placement, preadvanced
25.18placement, and international baccalaureate courses and programs. Expenditures for
25.19administration must not exceed five percent of the proposed budget. The commissioner may
25.20require an applicant to provide additional information.
25.21    (b) When reviewing applications, the commissioner must determine whether the applicant
25.22satisfied all the requirements in this subdivision and subdivision 1. The commissioner may
25.23give funding priority to an otherwise qualified applicant that demonstrates:
25.24    (1) a focus on developing or expanding preadvanced placement, advanced placement,
25.25or international baccalaureate courses or programs or increasing students' participation in,
25.26access to, or success with the courses or programs, including the participation, access, or
25.27success of low-income and other disadvantaged students;
25.28    (2) a compelling need for access to preadvanced placement, advanced placement, or
25.29international baccalaureate courses or programs;
25.30    (3) an effective ability to actively involve local business and community organizations
25.31in student activities that are integral to preadvanced placement, advanced placement, or
25.32international baccalaureate courses or programs;
26.1    (4) access to additional public or nonpublic funds or in-kind contributions that are
26.2available for preadvanced placement, advanced placement, or international baccalaureate
26.3courses or programs; or
26.4    (5) an intent to implement activities that target low-income and other disadvantaged
26.5students.; or
26.6(6) an intent to increase the advanced placement and international baccalaureate course
26.7offerings in science, technology, engineering, and math to low-income and other
26.8disadvantaged students.
26.9    Subd. 3. Funding; permissible funding uses. (a) The commissioner shall award grants
26.10to applicant school districts and charter schools that meet the requirements of subdivisions
26.111 and 2. The commissioner must award grants on an equitable geographical basis to the
26.12extent feasible and consistent with this section. Grant awards must not exceed the lesser of:
26.13    (1) $85 times the number of pupils enrolled at the participating sites on October 1 of the
26.14previous fiscal year; or
26.15    (2) the approved supplemental expenditures based on the budget submitted under
26.16subdivision 2. For charter schools in their first year of operation, the maximum funding
26.17award must be calculated using the number of pupils enrolled on October 1 of the current
26.18fiscal year. The commissioner may adjust the maximum funding award computed using
26.19prior year data for changes in enrollment attributable to school closings, school openings,
26.20grade level reconfigurations, or school district reorganizations between the prior fiscal year
26.21and the current fiscal year; or
26.22    (3) $150,000 per district or charter school.
26.23    (b) School districts and charter schools that submit an application and receive funding
26.24under this section must use the funding, consistent with the application, to:
26.25    (1) provide teacher training and instruction to more effectively serve students, including
26.26low-income and other disadvantaged students, who participate in preadvanced placement,
26.27advanced placement, or international baccalaureate courses or programs;
26.28    (2) further develop preadvanced placement, advanced placement, or international
26.29baccalaureate courses or programs;
26.30    (3) improve the transition between grade levels to better prepare students, including
26.31low-income and other disadvantaged students, for succeeding in preadvanced placement,
26.32advanced placement, or international baccalaureate courses or programs;
27.1    (4) purchase books and supplies;
27.2    (5) pay course or program fees;
27.3    (6) increase students' participation in and success with preadvanced placement, advanced
27.4placement, or international baccalaureate courses or programs;
27.5    (7) expand students' access to preadvanced placement, advanced placement, or
27.6international baccalaureate courses or programs through online learning;
27.7    (8) hire appropriately licensed personnel to teach additional advanced placement or
27.8international baccalaureate courses or programs; or
27.9    (9) engage in other activity directly related activities to expanding expand low-income
27.10or disadvantaged students' access to, participation in, and success with preadvanced
27.11placement, advanced placement, or international baccalaureate courses or programs,
27.12including. Other activities may include but are not limited to preparing and disseminating
27.13promotional materials to low-income and other disadvantaged students and their families.
27.14    Subd. 4. Grants; annual reports. (a) Each school district and charter school that receives
27.15a grant under this section annually must collect demographic and other student data to
27.16demonstrate and measure the extent to which the district or charter school raised students'
27.17academic achievement under this program and must report the data to the commissioner in
27.18the form and manner the commissioner determines. The commissioner annually by February
27.1915 must make summary data about this program available to the education policy and finance
27.20committees of the legislature.
27.21    (b) Each school district and charter school that receives a grant under this section annually
27.22must report to the commissioner, consistent with the Uniform Financial Accounting and
27.23Reporting Standards, its actual expenditures for advanced placement, preadvanced placement,
27.24and international baccalaureate courses and programs. The report must demonstrate that
27.25the school district or charter school has maintained its effort from other sources for advanced
27.26placement, preadvanced placement, and international baccalaureate courses and programs
27.27compared with the previous fiscal year, and the district or charter school has expended all
27.28grant funds, consistent with its approved budget.
27.29    (c) Notwithstanding any law to the contrary, a grant under this section is available for
27.30three years from the date of the grant if the district or charter school meets the annual
27.31benchmarks in its plan under subdivision 1.

28.1    Sec. 11. Minnesota Statutes 2016, section 120B.22, subdivision 2, is amended to read:
28.2    Subd. 2. In-service training. Each district is encouraged to provide training for district
28.3staff and school board members to help on the following:
28.4(1) helping students identify violence in the family and the community so that students
28.5may learn to resolve conflicts in effective, nonviolent ways;
28.6(2) responding to a disclosure of child sexual abuse in a supportive, appropriate manner;
28.7and
28.8(3) complying with mandatory reporting requirements under section 626.556.
28.9The in-service training must be ongoing and involve experts familiar with sexual abuse,
28.10domestic violence, and personal safety issues.

28.11    Sec. 12. Minnesota Statutes 2016, section 120B.23, subdivision 3, is amended to read:
28.12    Subd. 3. Grant awards. (a) The commissioner may award grants for a violence
28.13prevention education program to eligible applicants as defined in subdivision 2. Grant
28.14amounts may not exceed $3 per resident pupil unit in the district or group of districts in the
28.15prior school year. Grant recipients should be geographically distributed throughout the state.
28.16(b) School districts and charter schools may accept funds from private and other public
28.17sources for child sexual abuse prevention programs developed and implemented under
28.18sections 120B.021, subdivision 1, paragraph (d), and 120B.234, including federal funding
28.19under the Every Student Succeeds Act.

28.20    Sec. 13. Minnesota Statutes 2016, section 120B.232, subdivision 1, is amended to read:
28.21    Subdivision 1. Character development education. (a) Character education is the shared
28.22responsibility of parents, teachers, and members of the community. The legislature
28.23encourages districts to integrate or offer instruction on character education including, but
28.24not limited to, character qualities such as attentiveness, truthfulness, respect for authority,
28.25diligence, gratefulness, self-discipline, patience, forgiveness, respect for others, peacemaking,
28.26and resourcefulness. Instruction should be integrated into a district's existing programs,
28.27curriculum, or the general school environment. To the extent practicable, instruction should
28.28be integrated into positive behavioral intervention strategies, under section 122A.627. The
28.29commissioner shall provide assistance at the request of a district to develop character
28.30education curriculum and programs.
29.1(b) Character development education under paragraph (a) may include a voluntary
29.2elementary, middle, and high school program that incorporates the history and values of
29.3Congressional Medal of Honor recipients and may be offered as part of the social studies,
29.4English language arts, or other curriculum, as a schoolwide character building and veteran
29.5awareness initiative, or as an after-school program, among other possibilities.

29.6    Sec. 14. [120B.234] CHILD SEXUAL ABUSE PREVENTION EDUCATION.
29.7    Subdivision 1. Purpose. The purpose of this section, which may be cited as "Erin's
29.8Law," is to encourage districts to integrate or offer instruction on child sexual abuse
29.9prevention to students and training to all school personnel on recognizing and preventing
29.10sexual abuse and sexual violence.
29.11    Subd. 2. Curriculum. School districts may consult with other federal, state, or local
29.12agencies and community-based organizations, including the Child Information Gateway
29.13Web site maintained by the United States Department of Health and Human Services, to
29.14identify research-based tools, curricula, and programs to prevent child sexual abuse for use
29.15under section 120B.021, subdivision 1, paragraph (d).
29.16    Subd. 3. Other state programs. The child sexual abuse prevention instruction provided
29.17under this section is part of preventing sexual violence against children, which includes,
29.18but is not limited to, the following activities:
29.19(1) training on mandated reporting requirements provided on the Department of
29.20Education's Web site;
29.21(2) the Code of Ethics for Minnesota Teachers; and
29.22(3) consultation by the commissioner of education with the commissioners of health,
29.23human services, and public safety, and other state agencies to prevent violence against
29.24children.
29.25EFFECTIVE DATE.This section is effective the day following final enactment.

29.26    Sec. 15. Minnesota Statutes 2016, section 120B.30, subdivision 1, is amended to read:
29.27    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts with
29.28appropriate technical qualifications and experience and stakeholders, consistent with
29.29subdivision 1a, shall include in the comprehensive assessment system, for each grade level
29.30to be tested, state-constructed tests developed as computer-adaptive reading and mathematics
29.31assessments for students that are aligned with the state's required academic standards under
29.32section 120B.021, include multiple choice questions, and are administered annually to all
30.1students in grades 3 through 8. State-developed high school tests aligned with the state's
30.2required academic standards under section 120B.021 and administered to all high school
30.3students in a subject other than writing must include multiple choice questions. The
30.4commissioner shall establish one or more months during which schools shall administer
30.5the tests to students each school year.
30.6(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible to be
30.7assessed under (i) the graduation-required assessment for diploma in reading, mathematics,
30.8or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraphs (c),
30.9clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) the Compass
30.10college placement test, (iv) the ACT assessment for college admission, (v) a nationally
30.11recognized armed services vocational aptitude test.
30.12(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are eligible
30.13to be assessed under (i) the graduation-required assessment for diploma in reading,
30.14mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1,
30.15paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the Compass
30.16college placement test, (iv) the ACT assessment for college admission, (v) a nationally
30.17recognized armed services vocational aptitude test.
30.18(3) For students under clause (1) or (2), a school district may substitute a score from an
30.19alternative, equivalent assessment to satisfy the requirements of this paragraph.
30.20(b) The state assessment system must be aligned to the most recent revision of academic
30.21standards as described in section 120B.023 in the following manner:
30.22(1) mathematics;
30.23(i) grades 3 through 8 beginning in the 2010-2011 school year; and
30.24(ii) high school level beginning in the 2013-2014 school year;
30.25(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
30.26school year; and
30.27(3) language arts and reading; grades 3 through 8 and high school level beginning in the
30.282012-2013 school year.
30.29    (c) For students enrolled in grade 8 in the 2012-2013 school year and later, students'
30.30state graduation requirements, based on a longitudinal, systematic approach to student
30.31education and career planning, assessment, instructional support, and evaluation, include
30.32the following:
31.1    (1) an opportunity to participate on a nationally normed college entrance exam, in grade
31.211 or grade 12;
31.3    (2) achievement and career and college readiness in mathematics, reading, and writing,
31.4consistent with paragraph (k) and to the extent available, to monitor students' continuous
31.5development of and growth in requisite knowledge and skills; analyze students' progress
31.6and performance levels, identifying students' academic strengths and diagnosing areas where
31.7students require curriculum or instructional adjustments, targeted interventions, or
31.8remediation; and, based on analysis of students' progress and performance data, determine
31.9students' learning and instructional needs and the instructional tools and best practices that
31.10support academic rigor for the student; and
31.11    (3) (2) consistent with this paragraph and section 120B.125, age-appropriate exploration
31.12and planning activities and career assessments to encourage students to identify personally
31.13relevant career interests and aptitudes and help students and their families develop a regularly
31.14reexamined transition plan for postsecondary education or employment without need for
31.15postsecondary remediation.
31.16Based on appropriate state guidelines, students with an individualized education program
31.17may satisfy state graduation requirements by achieving an individual score on the
31.18state-identified alternative assessments.
31.19    (d) Expectations of schools, districts, and the state for career or college readiness under
31.20this subdivision must be comparable in rigor, clarity of purpose, and rates of student
31.21completion.
31.22    A student under paragraph (c), clause (2) (1), must receive targeted, relevant, academically
31.23rigorous, and resourced instruction, which may include a targeted instruction and intervention
31.24plan focused on improving the student's knowledge and skills in core subjects so that the
31.25student has a reasonable chance to succeed in a career or college without need for
31.26postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 124D.49,
31.27and related sections, an enrolling school or district must actively encourage a student in
31.28grade 11 or 12 who is identified as academically ready for a career or college to participate
31.29in courses and programs awarding college credit to high school students. Students are not
31.30required to achieve a specified score or level of proficiency on an assessment under this
31.31subdivision to graduate from high school.
31.32    (e) Though not a high school graduation requirement, students are encouraged to
31.33participate in a nationally recognized college entrance exam. To the extent state funding
31.34for college entrance exam fees is available, a district must pay the cost reimburse a student
32.1in grade 11 or 12 who is eligible for a free or reduced-price meal, one time, for an interested
32.2student in grade 11 or 12 to take for the registration fees associated with a nationally
32.3recognized college entrance exam before graduating. A student must be able to take the
32.4exam under this paragraph at the student's high school during the school day and at any one
32.5of the multiple exam administrations available to students in the district. In order to comply
32.6with this subdivision, a district may administer the ACT or SAT or both the ACT and SAT
32.7to comply with this paragraph at the student's high school or arrange for the student to take
32.8the exam at another location. If the district administers only one of these two tests and a
32.9student opts not to take that test and chooses instead to take the other of the two tests, the
32.10A free or reduced-price meal eligible student may take the other test exam at a different
32.11time or location and remains eligible for the examination fee reimbursement.
32.12    (f) The commissioner and the chancellor of the Minnesota State Colleges and Universities
32.13must collaborate in aligning instruction and assessments for adult basic education students
32.14and English learners to provide the students with diagnostic information about any targeted
32.15interventions, accommodations, modifications, and supports they need so that assessments
32.16and other performance measures are accessible to them and they may seek postsecondary
32.17education or employment without need for postsecondary remediation. When administering
32.18formative or summative assessments used to measure the academic progress, including the
32.19oral academic development, of English learners and inform their instruction, schools must
32.20ensure that the assessments are accessible to the students and students have the modifications
32.21and supports they need to sufficiently understand the assessments.
32.22    (g) Districts and schools, on an annual basis, must use career exploration elements to
32.23help students, beginning no later than grade 9, and their families explore and plan for
32.24postsecondary education or careers based on the students' interests, aptitudes, and aspirations.
32.25Districts and schools must use timely regional labor market information and partnerships,
32.26among other resources, to help students and their families successfully develop, pursue,
32.27review, and revise an individualized plan for postsecondary education or a career. This
32.28process must help increase students' engagement in and connection to school, improve
32.29students' knowledge and skills, and deepen students' understanding of career pathways as
32.30a sequence of academic and career courses that lead to an industry-recognized credential,
32.31an associate's degree, or a bachelor's degree and are available to all students, whatever their
32.32interests and career goals.
32.33(h) A student who demonstrates attainment of required state academic standards, which
32.34include career and college readiness benchmarks, on high school assessments under
32.35subdivision 1a is academically ready for a career or college and is encouraged to participate
33.1in courses awarding college credit to high school students. Such courses and programs may
33.2include sequential courses of study within broad career areas and technical skill assessments
33.3that extend beyond course grades.
33.4(i) As appropriate, students through grade 12 must continue to participate in targeted
33.5instruction, intervention, or remediation and be encouraged to participate in courses awarding
33.6college credit to high school students.
33.7    (j) In developing, supporting, and improving students' academic readiness for a career
33.8or college, schools, districts, and the state must have a continuum of empirically derived,
33.9clearly defined benchmarks focused on students' attainment of knowledge and skills so that
33.10students, their parents, and teachers know how well students must perform to have a
33.11reasonable chance to succeed in a career or college without need for postsecondary
33.12remediation. The commissioner, in consultation with local school officials and educators,
33.13and Minnesota's public postsecondary institutions must ensure that the foundational
33.14knowledge and skills for students' successful performance in postsecondary employment
33.15or education and an articulated series of possible targeted interventions are clearly identified
33.16and satisfy Minnesota's postsecondary admissions requirements.
33.17    (k) For students in grade 8 in the 2012-2013 school year and later, a school, district, or
33.18charter school must record on the high school transcript a student's progress toward career
33.19and college readiness, and for other students as soon as practicable.
33.20    (l) The school board granting students their diplomas may formally decide to include a
33.21notation of high achievement on the high school diplomas of those graduating seniors who,
33.22according to established school board criteria, demonstrate exemplary academic achievement
33.23during high school.
33.24(m) The 3rd through 8th grade computer-adaptive assessment results and high school
33.25test results shall be available to districts for diagnostic purposes affecting student learning
33.26and district instruction and curriculum, and for establishing educational accountability. The
33.27commissioner must establish empirically derived benchmarks on adaptive assessments in
33.28grades 3 through 8. The commissioner, in consultation with the chancellor of the Minnesota
33.29State Colleges and Universities, must establish empirically derived benchmarks on the high
33.30school tests that reveal a trajectory toward career and college readiness consistent with
33.31section 136F.302, subdivision 1a. The commissioner must disseminate to the public the
33.32computer-adaptive assessments and high school test results upon receiving those results.
33.33    (n) The grades 3 through 8 computer-adaptive assessments and high school tests must
33.34be aligned with state academic standards. The commissioner shall determine the testing
34.1process and the order of administration. The statewide results shall be aggregated at the site
34.2and district level, consistent with subdivision 1a.
34.3    (o) The commissioner shall include the following components in the statewide public
34.4reporting system:
34.5    (1) uniform statewide computer-adaptive assessments of all students in grades 3 through
34.68 and testing at the high school levels that provides appropriate, technically sound
34.7accommodations or alternate assessments;
34.8    (2) educational indicators that can be aggregated and compared across school districts
34.9and across time on a statewide basis, including average daily attendance, high school
34.10graduation rates, and high school drop-out rates by age and grade level;
34.11    (3) state results on the American College Test; and
34.12    (4) state results from participation in the National Assessment of Educational Progress
34.13so that the state can benchmark its performance against the nation and other states, and,
34.14where possible, against other countries, and contribute to the national effort to monitor
34.15achievement.
34.16    (p) For purposes of statewide accountability, "career and college ready" means a high
34.17school graduate has the knowledge, skills, and competencies to successfully pursue a career
34.18pathway, including postsecondary credit leading to a degree, diploma, certificate, or
34.19industry-recognized credential and employment. Students who are career and college ready
34.20are able to successfully complete credit-bearing coursework at a two- or four-year college
34.21or university or other credit-bearing postsecondary program without need for remediation.
34.22    (q) For purposes of statewide accountability, "cultural competence," "cultural
34.23competency," or "culturally competent" means the ability and will of families and educators
34.24to interact effectively with people of different cultures, native languages, and socioeconomic
34.25backgrounds.

34.26    Sec. 16. Minnesota Statutes 2016, section 120B.31, is amended by adding a subdivision
34.27to read:
34.28    Subd. 3a. Rollout sites; report. The commissioner of education shall designate up to
34.29six school districts or charter schools as rollout sites.
34.30(a) The rollout sites should represent urban school districts, suburban school districts,
34.31nonurban school districts, and charter schools. The commissioner shall designate rollout
35.1sites and notify the schools by August 1, 2017, and the designated school districts or charter
35.2schools shall have the right to opt in or out as rollout sites by September 1, 2017.
35.3(b) The commissioner must consult stakeholders and review the American Community
35.4Survey to develop recommendations for best practices for disaggregated data. Stakeholders
35.5consulted under this paragraph include at least:
35.6(1) the rollout sites;
35.7(2) parent groups; and
35.8(3) community representatives.
35.9(c) The commissioner shall report to the legislative committees having jurisdiction over
35.10kindergarten through grade 12 education policy and finance by February 1, 2018. The
35.11commissioner may research best practices from other states that have disaggregated data
35.12beyond the requirements of the most recent reauthorization of the Elementary and Secondary
35.13Education Act. The commissioner must consult with the stakeholders on how to measure
35.14a student's background as an immigrant or a refugee and provide a recommendation in the
35.15report on how to include the data in the statewide rollout. The recommendations may address:
35.16(1) the most meaningful use of disaggregated data, including but not limited to which
35.17reports should include further disaggregated data;
35.18(2) collection of additional student characteristics, including but not limited to ensuring
35.19enhanced enrollment forms:
35.20(i) provide context and the objective of additional data;
35.21(ii) are designed to convey respect and acknowledgment of the sensitive nature of the
35.22additional data; and
35.23(iii) are designed to collect data consistent with user feedback;
35.24(3) efficient data-reporting approaches when reporting additional information to the
35.25department;
35.26(4) the frequency by which districts and schools must update enrollment forms to meet
35.27the needs of the state's changing racial and ethnic demographics; and
35.28(5) the criteria for determining additional data. This recommendation should include a
35.29recommendation for frequency of reviews and updates of the additional data and should
35.30also identify the approach of updating any additional census data and data on new enrollees.
35.31This recommendation must consider additional student groups that may face education
36.1disparities and must take into account maintaining student privacy and providing
36.2nonidentifiable student level data.
36.3EFFECTIVE DATE.This section is effective for the 2018-2019 school year and later.

36.4    Sec. 17. Minnesota Statutes 2016, section 120B.31, subdivision 4, is amended to read:
36.5    Subd. 4. Student performance data. In developing policies and assessment processes
36.6to hold schools and districts accountable for high levels of academic standards under section
36.7120B.021 , the commissioner shall aggregate and disaggregate student data over time to
36.8report summary student performance and growth levels and, under section 120B.11,
36.9subdivision 2
, clause (2), student learning and outcome data measured at the school, school
36.10district, and statewide level. The commissioner shall use the student categories identified
36.11under the federal Elementary and Secondary Education Act, as most recently reauthorized,
36.12and student categories of:
36.13(1) homelessness,;
36.14(2) ethnicity, under section 120B.35, subdivision 3, paragraph (a), clause (2);
36.15(3) race, under section 120B.35, subdivision 3, paragraph (a), clause (2);
36.16(4) home language, immigrant, refugee status,;
36.17(5) English learners under section 124D.59,;
36.18(6) free or reduced-price lunch,; and
36.19(7) other categories designated by federal law to organize and report the data so that
36.20state and local policy makers can understand the educational implications of changes in
36.21districts' demographic profiles over time as data are available.
36.22Any report the commissioner disseminates containing summary data on student performance
36.23must integrate student performance and the demographic factors that strongly correlate with
36.24that performance.
36.25EFFECTIVE DATE.This section is effective for the 2019-2020 school year and later.

36.26    Sec. 18. Minnesota Statutes 2016, section 120B.35, subdivision 3, is amended to read:
36.27    Subd. 3. State growth target; other state measures. (a)(1) The state's educational
36.28assessment system measuring individual students' educational growth is based on indicators
36.29of achievement growth that show an individual student's prior achievement. Indicators of
37.1achievement and prior achievement must be based on highly reliable statewide or districtwide
37.2assessments.
37.3(2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and
37.4report separate categories of information using the student categories identified under the
37.5federal Elementary and Secondary Education Act, as most recently reauthorized, and, in
37.6addition to "other" for each race and ethnicity, and the Karen community, other student
37.7categories as determined by the total Minnesota population at or above the 1,000-person
37.8threshold based on the most recent decennial census, including ethnicity; race; refugee status
37.9seven of the most populous Asian and Pacific Islander groups, three of the most populous
37.10Native groups, seven of the most populous Hispanic/Latino groups, and five of the most
37.11populous Black and African Heritage groups as determined by the total Minnesota population
37.12based on the most recent American Community Survey; English learners under section
37.13124D.59 ; home language; free or reduced-price lunch; immigrant; and all students enrolled
37.14in a Minnesota public school who are currently or were previously in foster care, except
37.15that such disaggregation and cross tabulation is not required if the number of students in a
37.16category is insufficient to yield statistically reliable information or the results would reveal
37.17personally identifiable information about an individual student.
37.18(b) The commissioner, in consultation with a stakeholder group that includes assessment
37.19and evaluation directors, district staff, experts in culturally responsive teaching, and
37.20researchers, must implement a model that uses a value-added growth indicator and includes
37.21criteria for identifying schools and school districts that demonstrate medium and high growth
37.22under section 120B.299, subdivisions 8 and 9, and may recommend other value-added
37.23measures under section 120B.299, subdivision 3. The model may be used to advance
37.24educators' professional development and replicate programs that succeed in meeting students'
37.25diverse learning needs. Data on individual teachers generated under the model are personnel
37.26data under section 13.43. The model must allow users to:
37.27(1) report student growth consistent with this paragraph; and
37.28(2) for all student categories, report and compare aggregated and disaggregated state
37.29student growth and, under section 120B.11, subdivision 2, clause (2), student learning and
37.30outcome data using the student categories identified under the federal Elementary and
37.31Secondary Education Act, as most recently reauthorized, and other student categories under
37.32paragraph (a), clause (2).
37.33The commissioner must report measures of student growth and, under section 120B.11,
37.34subdivision 2
, clause (2), student learning and outcome data, consistent with this paragraph,
38.1including the English language development, academic progress, and oral academic
38.2development of English learners and their native language development if the native language
38.3is used as a language of instruction, and include data on all pupils enrolled in a Minnesota
38.4public school course or program who are currently or were previously counted as an English
38.5learner under section 124D.59.
38.6(c) When reporting student performance under section 120B.36, subdivision 1, the
38.7commissioner annually, beginning July 1, 2011, must report two core measures indicating
38.8the extent to which current high school graduates are being prepared for postsecondary
38.9academic and career opportunities:
38.10(1) a preparation measure indicating the number and percentage of high school graduates
38.11in the most recent school year who completed course work important to preparing them for
38.12postsecondary academic and career opportunities, consistent with the core academic subjects
38.13required for admission to Minnesota's public colleges and universities as determined by the
38.14Office of Higher Education under chapter 136A; and
38.15(2) a rigorous coursework measure indicating the number and percentage of high school
38.16graduates in the most recent school year who successfully completed one or more
38.17college-level advanced placement, international baccalaureate, postsecondary enrollment
38.18options including concurrent enrollment, other rigorous courses of study under section
38.19120B.021, subdivision 1a , or industry certification courses or programs.
38.20When reporting the core measures under clauses (1) and (2), the commissioner must also
38.21analyze and report separate categories of information using the student categories identified
38.22under the federal Elementary and Secondary Education Act, as most recently reauthorized,
38.23and other student categories under paragraph (a), clause (2).
38.24(d) When reporting student performance under section 120B.36, subdivision 1, the
38.25commissioner annually, beginning July 1, 2014, must report summary data on school safety
38.26and students' engagement and connection at school, consistent with the student categories
38.27identified under paragraph (a), clause (2). The summary data under this paragraph are
38.28separate from and must not be used for any purpose related to measuring or evaluating the
38.29performance of classroom teachers. The commissioner, in consultation with qualified experts
38.30on student engagement and connection and classroom teachers, must identify highly reliable
38.31variables that generate summary data under this paragraph. The summary data may be used
38.32at school, district, and state levels only. Any data on individuals received, collected, or
38.33created that are used to generate the summary data under this paragraph are nonpublic data
38.34under section 13.02, subdivision 9.
39.1(e) For purposes of statewide educational accountability, the commissioner must identify
39.2and report measures that demonstrate the success of learning year program providers under
39.3sections 123A.05 and 124D.68, among other such providers, in improving students'
39.4graduation outcomes. The commissioner, beginning July 1, 2015, must annually report
39.5summary data on:
39.6(1) the four- and six-year graduation rates of students under this paragraph;
39.7(2) the percent of students under this paragraph whose progress and performance levels
39.8are meeting career and college readiness benchmarks under section 120B.30, subdivision
39.91; and
39.10(3) the success that learning year program providers experience in:
39.11(i) identifying at-risk and off-track student populations by grade;
39.12(ii) providing successful prevention and intervention strategies for at-risk students;
39.13(iii) providing successful recuperative and recovery or reenrollment strategies for off-track
39.14students; and
39.15(iv) improving the graduation outcomes of at-risk and off-track students.
39.16The commissioner may include in the annual report summary data on other education
39.17providers serving a majority of students eligible to participate in a learning year program.
39.18(f) The commissioner, in consultation with recognized experts with knowledge and
39.19experience in assessing the language proficiency and academic performance of all English
39.20learners enrolled in a Minnesota public school course or program who are currently or were
39.21previously counted as an English learner under section 124D.59, must identify and report
39.22appropriate and effective measures to improve current categories of language difficulty and
39.23assessments, and monitor and report data on students' English proficiency levels, program
39.24placement, and academic language development, including oral academic language.
39.25(g) When reporting four- and six-year graduation rates, the commissioner or school
39.26district must disaggregate the data by student categories according to paragraph (a), clause
39.27(2).
39.28(h) A school district must inform parents and guardians that volunteering information
39.29on student categories not required by the most recent reauthorization of the Elementary and
39.30Secondary Education Act is optional and will not violate the privacy of students or their
39.31families, parents, or guardians. The notice must state the purpose for collecting the student
39.32data.
40.1EFFECTIVE DATE.This section is effective for the 2018-2019 school year and later
40.2for rollout sites under Minnesota Statutes, section 120B.31, subdivision 3a. This section is
40.3effective for the 2019-2020 school year and later for all other schools.

40.4    Sec. 19. Minnesota Statutes 2016, section 120B.36, subdivision 1, is amended to read:
40.5    Subdivision 1. School performance reports and public reporting. (a) The commissioner
40.6shall report student academic performance data under section 120B.35, subdivisions 2 and
40.73; the percentages of students showing low, medium, and high growth under section 120B.35,
40.8subdivision 3
, paragraph (b); school safety and student engagement and connection under
40.9section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 120B.35,
40.10subdivision 3
, paragraph (c); the percentage of students under section 120B.35, subdivision
40.113
, paragraph (b), clause (2), whose progress and performance levels are meeting career and
40.12college readiness benchmarks under sections 120B.30, subdivision 1, and 120B.35,
40.13subdivision 3
, paragraph (e); longitudinal data on the progress of eligible districts in reducing
40.14disparities in students' academic achievement and realizing racial and economic integration
40.15under section 124D.861; the acquisition of English, and where practicable, native language
40.16academic literacy, including oral academic language, and the academic progress of all
40.17English learners enrolled in a Minnesota public school course or program who are currently
40.18or were previously counted as English learners under section 124D.59; two separate
40.19student-to-teacher ratios that clearly indicate the definition of teacher consistent with sections
40.20122A.06 and 122A.15 for purposes of determining these ratios; staff characteristics excluding
40.21salaries; student enrollment demographics; foster care status, including all students enrolled
40.22in a Minnesota public school course or program who are currently or were previously in
40.23foster care, student homelessness, and district mobility; and extracurricular activities. The
40.24report also must indicate a school's status under applicable federal law.
40.25    (b) The school performance report for a school site and a school district must include
40.26school performance reporting information and calculate proficiency rates as required by the
40.27most recently reauthorized Elementary and Secondary Education Act.
40.28    (c) The commissioner shall develop, annually update, and post on the department Web
40.29site school performance reports consistent with paragraph (a) and section 120B.11.
40.30    (c) (d) The commissioner must make available performance reports by the beginning of
40.31each school year.
40.32    (d) (e) A school or district may appeal its results in a form and manner determined by
40.33the commissioner and consistent with federal law. The commissioner's decision to uphold
40.34or deny an appeal is final.
41.1    (e) (f) School performance data are nonpublic data under section 13.02, subdivision 9,
41.2until the commissioner publicly releases the data. The commissioner shall annually post
41.3school performance reports to the department's public Web site no later than September 1,
41.4except that in years when the reports reflect new performance standards, the commissioner
41.5shall post the school performance reports no later than October 1.
41.6EFFECTIVE DATE.This section is effective for the 2017-2018 school year and later.

41.7    Sec. 20. Minnesota Statutes 2016, section 122A.40, subdivision 10, is amended to read:
41.8    Subd. 10. Negotiated unrequested leave of absence. The school board and the exclusive
41.9bargaining representative of the teachers may must negotiate a plan providing for unrequested
41.10leave of absence without pay or fringe benefits for as many teachers as may be necessary
41.11because of discontinuance of position, lack of pupils, financial limitations, or merger of
41.12classes caused by consolidation of districts. Failing to successfully negotiate such a plan,
41.13the provisions of subdivision 11 shall apply. The negotiated plan must not include provisions
41.14which would result in the exercise of seniority by a teacher holding a provisional license,
41.15other than a vocational education license, contrary to the provisions of subdivision 11,
41.16paragraph (c), or the reinstatement of a teacher holding a provisional license, other than a
41.17vocational education license, contrary to the provisions of subdivision 11, paragraph (e).
41.18The provisions of section 179A.16 do not apply for the purposes of this subdivision.
41.19EFFECTIVE DATE.This section is effective July 1, 2018.

41.20    Sec. 21. Minnesota Statutes 2016, section 122A.41, is amended by adding a subdivision
41.21to read:
41.22    Subd. 14a. Negotiated unrequested leave of absence. The school board and the exclusive
41.23bargaining representative of the teachers must negotiate a plan providing for unrequested
41.24leave of absence without pay or fringe benefits for as many teachers as may be necessary
41.25because of discontinuance of position, lack of pupils, financial limitations, or merger of
41.26classes caused by consolidation of districts.
41.27EFFECTIVE DATE.This section is effective July 1, 2018.

41.28    Sec. 22. Minnesota Statutes 2016, section 122A.414, subdivision 2, is amended to read:
41.29    Subd. 2. Alternative teacher professional pay system. (a) To participate in this program,
41.30a school district, an intermediate school district consistent with paragraph (d), a school site,
41.31or a charter school must have a world's best workforce plan under section 120B.11 and an
42.1alternative teacher professional pay system agreement under paragraph (b). A charter school
42.2participant also must comply with subdivision 2a.
42.3    (b) The alternative teacher professional pay system agreement must:
42.4    (1) describe how teachers can achieve career advancement and additional compensation;
42.5    (2) describe how the school district, intermediate school district, school site, or charter
42.6school will provide teachers with career advancement options that allow teachers to retain
42.7primary roles in student instruction and facilitate site-focused professional development
42.8that helps other teachers improve their skills;
42.9    (3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
42.10paid before implementing the pay system from being reduced as a result of participating in
42.11this system, base at least 60 percent of any compensation increase on teacher performance
42.12using:
42.13    (i) schoolwide student achievement gains under section 120B.35 or locally selected
42.14standardized assessment outcomes, or both;
42.15    (ii) measures of student growth and literacy that may include value-added models or
42.16student learning goals, consistent with section 122A.40, subdivision 8, paragraph (b), clause
42.17(9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures that include
42.18the academic literacy, oral academic language, and achievement of English learners under
42.19section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, subdivision 5,
42.20paragraph (b), clause (10); and
42.21    (iii) an objective evaluation program under section 122A.40, subdivision 8, paragraph
42.22(b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
42.23    (4) provide for participation in job-embedded learning opportunities such as professional
42.24learning communities to improve instructional skills and learning that are aligned with
42.25student needs under section 120B.11, consistent with the staff development plan under
42.26section 122A.60 and led during the school day by trained teacher leaders such as master or
42.27mentor teachers;
42.28    (5) allow any teacher in a participating school district, intermediate school district, school
42.29site, or charter school that implements an alternative pay system to participate in that system
42.30without any quota or other limit; and
42.31    (6) encourage collaboration rather than competition among teachers.
42.32(c) The alternative teacher professional pay system may:
43.1    (1) include a hiring bonus or other added compensation for to provide students with
43.2equitable access to teachers who, consistent with section 120B.11, subdivision 2, clause
43.3(3):
43.4    (i) are identified as effective or highly effective under the local teacher professional
43.5review cycle and or, when being considered for hire as first-year teachers, have demonstrated
43.6skills during student teaching for being highly effective at closing achievement gaps;
43.7    (ii) work in a high-need or hard-to-fill position; or
43.8    (iii) are hired to work in a hard-to-staff school such as a school with a majority of students
43.9whose families meet federal poverty guidelines, a geographically isolated school, or a school
43.10identified by the state as eligible for targeted programs or services for its students; and
43.11    (2) include incentives for teachers to obtain a master's degree or other advanced
43.12certification with at least 18 credits in their content field of licensure required for teaching
43.13concurrent enrollment or college in the schools courses, or to pursue the training or education
43.14necessary to obtain an additional licensure in shortage areas identified by the district or
43.15charter school,; or
43.16    (3) help fund a "grow your own" Grow Your Own new teacher initiative involving
43.17nonlicensed educational professionals, including paraprofessionals and cultural liaisons.
43.18    (d) An intermediate school district under this subdivision must demonstrate in a form
43.19and manner determined by the commissioner that it uses the aid it receives under this section
43.20for activities identified in the alternative teacher professional pay system agreement.

43.21    Sec. 23. Minnesota Statutes 2016, section 122A.415, subdivision 4, is amended to read:
43.22    Subd. 4. Basic alternative teacher compensation aid. (a) The basic alternative teacher
43.23compensation aid for a school with a plan approved under section 122A.414, subdivision
43.242b
, equals 65 percent of the alternative teacher compensation revenue under subdivision 1.
43.25The basic alternative teacher compensation aid for a charter school with a plan approved
43.26under section 122A.414, subdivisions 2a and 2b, equals $260 times the number of pupils
43.27enrolled in the school on October 1 of the previous year, or on October 1 of the current year
43.28for a charter school in the first year of operation, times the ratio of the sum of the alternative
43.29teacher compensation aid and alternative teacher compensation levy for all participating
43.30school districts to the maximum alternative teacher compensation revenue for those districts
43.31under subdivision 1.
43.32(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
43.33teacher compensation aid entitlement must not exceed $75,840,000 for fiscal year 2016 and
44.1$88,118,000 for fiscal year 2017 and later. The commissioner must limit the amount of
44.2alternative teacher compensation aid approved under this section so as not to exceed these
44.3limits by not approving new participants or by prorating the aid among participating districts,
44.4intermediate school districts, school sites, and charter schools. The commissioner may also
44.5reallocate a portion of the allowable aid for the biennium from the second year to the first
44.6year to meet the needs of approved participants.
44.7(c) Basic alternative teacher compensation aid for an intermediate district or other
44.8cooperative unit equals $3,000 times the number of licensed teachers employed by the
44.9intermediate district or cooperative unit on October 1 of the previous school year.

44.10    Sec. 24. [122A.417] ALTERNATIVE TEACHER COMPENSATION REVENUE
44.11FOR ST. CROIX RIVER EDUCATION DISTRICT.
44.12Notwithstanding section 122A.415, subdivision 4, paragraph (c), the St. Croix River
44.13Education District, No. 6009-61, is eligible to receive alternative teacher compensation
44.14revenue based on its staffing as of October 1 of the previous fiscal year as reported to the
44.15department in a manner determined by the commissioner. To qualify for alternative teacher
44.16compensation revenue, the St. Croix River Education District must meet all the requirements
44.17of sections 122A.414 and 122A.415 that apply to cooperative units, must report its staffing
44.18as of October 1 of each year to the department in a manner determined by the commissioner,
44.19and must annually report to the department by November 30 its expenditures for the
44.20alternative teacher professional pay system consistent with the uniform financial accounting
44.21and reporting standards.

44.22    Sec. 25. Minnesota Statutes 2016, section 124D.03, subdivision 5a, is amended to read:
44.23    Subd. 5a. Lotteries. If a school district has more applications than available seats at a
44.24specific grade level, it must hold an impartial lottery following the January 15 deadline to
44.25determine which students will receive seats. The district must give priority to enrolling
44.26siblings of currently enrolled students, students whose applications are related to an approved
44.27integration and achievement plan, and children of the school district's staff must receive
44.28priority in the lottery., and students residing in that part of a municipality, defined under
44.29section 469.1812, subdivision 3, where:
44.30(1) the student's resident district does not operate a school building;
44.31(2) the municipality is located partially or fully within the boundaries of at least five
44.32school districts;
45.1(3) the nonresident district in which the student seeks to enroll operates one or more
45.2school buildings within the municipality; and
45.3(4) no other nonresident, independent, special, or common school district operates a
45.4school building within the municipality.
45.5The process for the school district lottery must be established in school district policy,
45.6approved by the school board, and posted on the school district's Web site.
45.7EFFECTIVE DATE.This section is effective for lotteries conducted beginning July
45.81, 2017.

45.9    Sec. 26. Minnesota Statutes 2016, section 124D.09, subdivision 3, is amended to read:
45.10    Subd. 3. Definitions. For purposes of this section, the following terms have the meanings
45.11given to them.
45.12(a) "Eligible institution" means a Minnesota public postsecondary institution, a private,
45.13nonprofit two-year trade and technical school granting associate degrees, an opportunities
45.14industrialization center accredited by the North Central Association of Colleges and Schools,
45.15or a private, residential, two-year or four-year, liberal arts, degree-granting college or
45.16university located in Minnesota.
45.17(b) "Course" means a course or program.
45.18(c) "Concurrent enrollment" means nonsectarian courses in which an eligible pupil under
45.19subdivision 5 or 5b enrolls to earn both secondary and postsecondary credits, are taught by
45.20a secondary teacher or a postsecondary faculty member, and are offered at a high school
45.21for which the district is eligible to receive concurrent enrollment program aid under section
45.22124D.091.

45.23    Sec. 27. Minnesota Statutes 2016, section 124D.09, subdivision 5, is amended to read:
45.24    Subd. 5. Authorization; notification. Notwithstanding any other law to the contrary,
45.25an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled tribal
45.26contract or grant school eligible for aid under section 124D.83, except a foreign exchange
45.27pupil enrolled in a district under a cultural exchange program, may apply to an eligible
45.28institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by that
45.29postsecondary institution. Notwithstanding any other law to the contrary, a 9th or 10th grade
45.30pupil enrolled in a district or an American Indian-controlled tribal contract or grant school
45.31eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in a district
45.32under a cultural exchange program, may apply to enroll in nonsectarian courses offered
46.1under subdivision 10, if (1) the school district and the eligible postsecondary institution
46.2providing the course agree to the student's enrollment or (2) the course is a world language
46.3course currently available to 11th and 12th grade students, and consistent with section
46.4120B.022 governing world language standards, certificates, and seals. If an institution
46.5accepts a secondary pupil for enrollment under this section, the institution shall send written
46.6notice to the pupil, the pupil's school or school district, and the commissioner within ten
46.7days of acceptance. The notice must indicate the course and hours of enrollment of that
46.8pupil. If the pupil enrolls in a course for postsecondary credit, the institution must notify
46.9the pupil about payment in the customary manner used by the institution.

46.10    Sec. 28. Minnesota Statutes 2016, section 124D.09, is amended by adding a subdivision
46.11to read:
46.12    Subd. 5b. Authorization; 9th or 10th grade pupil. Notwithstanding any other law to
46.13the contrary, a 9th or 10th grade pupil enrolled in a district or an American Indian-controlled
46.14tribal contract or grant school eligible for aid under section 124D.83, except a foreign
46.15exchange pupil enrolled in a district under a cultural exchange program, may apply to enroll
46.16in nonsectarian courses offered under subdivision 10, if:
46.17(1) the school district and the eligible postsecondary institution providing the course
46.18agree to the student's enrollment; or
46.19(2) the course is a world language course currently available to 11th and 12th grade
46.20students, and consistent with section 120B.022 governing world language standards,
46.21certificates, and seals.

46.22    Sec. 29. Minnesota Statutes 2016, section 124D.09, subdivision 10, is amended to read:
46.23    Subd. 10. Courses according to agreements. (a) An eligible pupil, according to
46.24subdivision 5, may enroll in a nonsectarian course taught by a secondary teacher or a
46.25postsecondary faculty member and offered at a secondary school, or another location,
46.26according to an agreement between a public school board and the governing body of an
46.27eligible public postsecondary system or an eligible private postsecondary institution, as
46.28defined in subdivision 3. All provisions of this section shall apply to a pupil, public school
46.29board, district, and the governing body of a postsecondary institution, except as otherwise
46.30provided.
46.31(b) To encourage students, especially American Indian students and students of color,
46.32to consider teaching as a profession, participating schools, school districts, and postsecondary
46.33institutions are encouraged to develop and offer an "Introduction to Teaching" or
47.1"Introduction to Education" course under this subdivision. An institution that receives a
47.2grant to develop a course under this paragraph must annually report to the commissioner
47.3in a form and manner determined by the commissioner on the participation rates of students
47.4in courses under this paragraph, including the number of students who apply for admission
47.5to colleges or universities with teacher preparation programs.

47.6    Sec. 30. Minnesota Statutes 2016, section 124D.09, is amended by adding a subdivision
47.7to read:
47.8    Subd. 11a. Access to building and technology. (a) A school district must allow a student
47.9enrolled in a course under this section to remain at the school site during regular school
47.10hours.
47.11(b) A school district must adopt a policy that provides a student enrolled in a course
47.12under this section with reasonable access during regular school hours to a computer and
47.13other technology resources that the student needs to complete coursework for a postsecondary
47.14enrollment course.

47.15    Sec. 31. Minnesota Statutes 2016, section 124D.09, subdivision 12, is amended to read:
47.16    Subd. 12. Credits; grade point average weighting policy. (a) A pupil must not audit
47.17a course under this section.
47.18(b) A district shall grant academic credit to a pupil enrolled in a course for secondary
47.19credit if the pupil successfully completes the course. Seven quarter or four semester college
47.20credits equal at least one full year of high school credit. Fewer college credits may be
47.21prorated. A district must also grant academic credit to a pupil enrolled in a course for
47.22postsecondary credit if secondary credit is requested by a pupil. If no comparable course is
47.23offered by the district, the district must, as soon as possible, notify the commissioner, who
47.24shall determine the number of credits that shall be granted to a pupil who successfully
47.25completes a course. If a comparable course is offered by the district, the school board shall
47.26grant a comparable number of credits to the pupil. If there is a dispute between the district
47.27and the pupil regarding the number of credits granted for a particular course, the pupil may
47.28appeal the board's decision to the commissioner. The commissioner's decision regarding
47.29the number of credits shall be final.
47.30(c) A school board must adopt a policy regarding weighted grade point averages for any
47.31high school or dual enrollment course. The policy must state whether the district offers
47.32weighted grades. A school board must annually publish on its Web site a list of courses for
47.33which a student may earn a weighted grade.
48.1(d) The secondary credits granted to a pupil must be counted toward the graduation
48.2requirements and subject area requirements of the district. Evidence of successful completion
48.3of each course and secondary credits granted must be included in the pupil's secondary
48.4school record. A pupil shall provide the school with a copy of the pupil's grade in each
48.5course taken for secondary credit under this section. Upon the request of a pupil, the pupil's
48.6secondary school record must also include evidence of successful completion and credits
48.7granted for a course taken for postsecondary credit. In either case, the record must indicate
48.8that the credits were earned at a postsecondary institution.
48.9(e) If a pupil enrolls in a postsecondary institution after leaving secondary school, the
48.10postsecondary institution must award postsecondary credit for any course successfully
48.11completed for secondary credit at that institution. Other postsecondary institutions may
48.12award, after a pupil leaves secondary school, postsecondary credit for any courses
48.13successfully completed under this section. An institution may not charge a pupil for the
48.14award of credit.
48.15(f) The Board of Trustees of the Minnesota State Colleges and Universities and the
48.16Board of Regents of the University of Minnesota must, and private nonprofit and proprietary
48.17postsecondary institutions should, award postsecondary credit for any successfully completed
48.18courses in a program certified by the National Alliance of Concurrent Enrollment Partnerships
48.19offered according to an agreement under subdivision 10. Consistent with section 135A.101,
48.20subdivision 3
, all MnSCU institutions must give full credit to a secondary pupil who
48.21completes for postsecondary credit a postsecondary course or program that is part or all of
48.22a goal area or a transfer curriculum at a MnSCU institution when the pupil enrolls in a
48.23MnSCU institution after leaving secondary school. Once one MnSCU institution certifies
48.24as completed a secondary student's postsecondary course or program that is part or all of a
48.25goal area or a transfer curriculum, every MnSCU institution must consider the student's
48.26course or program for that goal area or the transfer curriculum as completed.

48.27    Sec. 32. Minnesota Statutes 2016, section 124D.09, subdivision 13, is amended to read:
48.28    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this section,
48.29the department must make payments according to this subdivision for courses that were
48.30taken for secondary credit.
48.31The department must not make payments to a school district or postsecondary institution
48.32for a course taken for postsecondary credit only. The department must not make payments
48.33to a postsecondary institution for a course from which a student officially withdraws during
48.34the first 14 days of the quarter or semester or who has been absent from the postsecondary
49.1institution for the first 15 consecutive school days of the quarter or semester and is not
49.2receiving instruction in the home or hospital.
49.3A postsecondary institution shall receive the following:
49.4(1) for an institution granting quarter credit, the reimbursement per credit hour shall be
49.5an amount equal to 88 percent of the product of the formula allowance minus $425, multiplied
49.6by 1.2, and divided by 45; or
49.7(2) for an institution granting semester credit, the reimbursement per credit hour shall
49.8be an amount equal to 88 percent of the product of the general revenue formula allowance
49.9minus $425, multiplied by 1.2, and divided by 30.
49.10The department must pay to each postsecondary institution 100 percent of the amount
49.11in clause (1) or (2) within 30 45 days of receiving initial enrollment information each quarter
49.12or semester. If changes in enrollment occur during a quarter or semester, the change shall
49.13be reported by the postsecondary institution at the time the enrollment information for the
49.14succeeding quarter or semester is submitted. At any time the department notifies a
49.15postsecondary institution that an overpayment has been made, the institution shall promptly
49.16remit the amount due.

49.17    Sec. 33. [124D.4535] INNOVATIVE DELIVERY OF CAREER AND TECHNICAL
49.18EDUCATION PROGRAMS; SHARING OF DISTRICT RESOURCES.
49.19    Subdivision 1. Establishment; requirements for participation. (a) A program is
49.20established to improve student, career and college readiness, and school outcomes by
49.21allowing groups of school districts to work together in partnership with local and regional
49.22postsecondary institutions and programs, community institutions, and other private, public,
49.23for-profit, and nonprofit workplace partners, to:
49.24(1) provide innovative education programs and activities that integrate core academic
49.25and career and technical subjects in students' programs of study through coordinated
49.26secondary and postsecondary career and technical programs leading to an industry
49.27certification or other credential;
49.28(2) provide embedded professional development for program participants;
49.29(3) use performance assessments in authentic settings to measure students' technical
49.30skills and progress toward attaining an industry certification or other credential; and
49.31(4) efficiently share district, institution, and workplace resources.
50.1(b) To participate in this program to improve student, career and college readiness, and
50.2school outcomes, a group of two or more school districts must collaborate with school staff
50.3and project partners and receive formal school board approval to form a partnership. The
50.4partnership must develop a plan to provide challenging programmatic options for students
50.5under paragraph (a); create professional development opportunities for educators and other
50.6program participants; increase student engagement and connection and challenging learning
50.7opportunities for diverse populations of students that are focused on employability skills
50.8and technical, job-specific skills related to a specific career pathway; or demonstrate
50.9efficiencies in delivering financial and other services needed to realize plan goals and
50.10objectives. The plan must include:
50.11(1) collaborative education goals and objectives;
50.12(2) strategies and processes to implement those goals and objectives, including a budget
50.13process with periodic expenditure reviews;
50.14(3) valid and reliable measures including performance assessments in authentic settings
50.15and progress toward attaining an industry certification or other credential, among other
50.16measures, to evaluate progress in realizing plan goals and objectives;
50.17(4) an implementation timeline; and
50.18(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
50.19schedules, and legal considerations needed to fully implement the plan.
50.20A partnership may invite additional districts or other participants under paragraph (a) to
50.21join the partnership after notifying the commissioner.
50.22(c) A partnership of interested districts must submit an application to the commissioner
50.23of education in the form and manner the commissioner determines, consistent with the
50.24requirements of this section. The application must contain the formal approval adopted by
50.25the school board in each district to participate in the plan.
50.26(d) Notwithstanding any other law to the contrary, a participating school district under
50.27this section continues to: receive revenue and maintain its taxation authority; be organized
50.28and governed by an elected school board with general powers under section 123B.02; and
50.29be subject to employment agreements under chapter 122A and section 179A.20; and district
50.30employees continue to remain employees of the employing school district.
50.31(e) Participating districts must submit a biennial report by February 1 in each
50.32odd-numbered year to the education committees of the legislature and the commissioner of
50.33education that includes performance assessment, high school graduation, and career and
51.1technical certification data to show the success of the partnership in preparing diverse
51.2populations of students for careers and jobs.
51.3    Subd. 2. Commissioner's role. The commissioner of education must convene an advisory
51.4panel to advise the commissioner on applicants' qualifications to participate in this program.
51.5The commissioner must ensure an equitable geographical distribution of program participants
51.6to the extent practicable. The commissioner must select only those applicants that fully
51.7comply with subdivision 1. The commissioner may terminate a program participant that
51.8fails to effectively implement the goals and objectives contained in its application and
51.9according to its stated timeline.
51.10EFFECTIVE DATE.(a) This section is effective the day following final enactment
51.11and applies to those applications submitted after that date.
51.12(b) Districts already approved for an innovation zone pilot project under Laws 2012,
51.13chapter 263, section 1, as amended by Laws 2014, chapter 312, article 15, section 24, may
51.14continue to operate.

51.15    Sec. 34. Minnesota Statutes 2016, section 124D.68, subdivision 2, is amended to read:
51.16    Subd. 2. Eligible pupils. (a) A pupil under the age of 21 or who meets the requirements
51.17of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation
51.18incentives program, if the pupil:
51.19(1) performs substantially below the performance level for pupils of the same age in a
51.20locally determined achievement test;
51.21(2) is behind in satisfactorily completing coursework or obtaining credits for graduation;
51.22(3) is pregnant or is a parent;
51.23(4) has been assessed as chemically dependent;
51.24(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
51.25(6) has been referred by a school district for enrollment in an eligible program or a
51.26program pursuant to section 124D.69;
51.27(7) is a victim of physical or sexual abuse;
51.28(8) has experienced mental health problems;
51.29(9) has experienced homelessness sometime within six months before requesting a
51.30transfer to an eligible program;
51.31(10) speaks English as a second language or is an English learner; or
52.1(11) has withdrawn from school or has been chronically truant; or
52.2(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
52.3other life threatening illness or is the sibling of an eligible pupil who is being currently
52.4treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
52.5of the seven-county metropolitan area.
52.6(b) For the 2016-2017 school year fiscal years 2017 and 2018 only, a pupil otherwise
52.7qualifying under paragraph (a) who is at least 21 years of age and not yet 22 years of age,
52.8is an English learner with an interrupted formal education according to section 124D.59,
52.9subdivision 2a
, and was in an early middle college program during the previous school year
52.10is eligible to participate in the graduation incentives program under section 124D.68 and
52.11in concurrent enrollment courses offered under section 124D.09, subdivision 10, and is
52.12funded in the same manner as other pupils under this section.

52.13    Sec. 35. Minnesota Statutes 2016, section 124D.695, is amended to read:
52.14124D.695 APPROVED RECOVERY PROGRAM FUNDING.
52.15    Subdivision 1. Approved recovery program. "Approved recovery program" means a
52.16course of instruction offered by a recovery school that provides academic services, assistance
52.17with recovery, and continuing care to students recovering from substance abuse or
52.18dependency. A recovery program may be offered in a transitional academic setting designed
52.19to meet graduation requirements. A recovery program must be approved by the commissioner
52.20of education. The commissioner may specify the manner and form of the application for
52.21the approval of a recovery school or recovery program. The commissioner must also approve
52.22any unreimbursed pupil transportation costs incurred by students participating in an approved
52.23recovery program.
52.24    Subd. 2. Eligibility. (a) An approved recovery program is eligible for an annual recovery
52.25program grant of up to $125,000 to pay for a portion of the costs of under this section for
52.26recovery program support staff under this section and approved pupil transportation expenses.
52.27(b) "Recovery program support staff" means licensed alcohol and chemical dependency
52.28counselors, licensed school counselors, licensed school psychologists, licensed school
52.29nurses, and licensed school social workers.
52.30EFFECTIVE DATE.This section is effective the day following final enactment.

53.1    Sec. 36. Minnesota Statutes 2016, section 124E.03, subdivision 2, is amended to read:
53.2    Subd. 2. Certain federal, state, and local requirements. (a) A charter school shall
53.3meet all federal, state, and local health and safety requirements applicable to school districts.
53.4    (b) A school must comply with statewide accountability requirements governing standards
53.5and assessments in chapter 120B.
53.6    (c) A charter school must comply with the Minnesota Public School Fee Law, sections
53.7123B.34 to 123B.39.
53.8    (d) A charter school is a district for the purposes of tort liability under chapter 466.
53.9    (e) A charter school must comply with the Pledge of Allegiance requirement under
53.10section 121A.11, subdivision 3.
53.11    (f) A charter school and charter school board of directors must comply with chapter 181
53.12governing requirements for employment.
53.13    (g) A charter school must comply with continuing truant notification under section
53.14260A.03 .
53.15(h) A charter school must develop and implement a teacher evaluation and peer review
53.16process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (13), and place
53.17students in classrooms in accordance with section 122A.40, subdivision 8, paragraph (d).
53.18The teacher evaluation process in this paragraph does not create any additional employment
53.19rights for teachers.
53.20(i) A charter school must adopt a policy, plan, budget, and process, consistent with
53.21section 120B.11, to review curriculum, instruction, and student achievement and strive for
53.22the world's best workforce.
53.23(j) A charter school is subject to and must comply with the Pupil Fair Dismissal Act,
53.24sections 121A.40 to 121A.56.

53.25    Sec. 37. Minnesota Statutes 2016, section 124E.05, subdivision 7, is amended to read:
53.26    Subd. 7. Withdrawal. If the governing board of an approved authorizer votes to withdraw
53.27as an approved authorizer for a reason unrelated to any cause under section 124E.10,
53.28subdivision 4
, the authorizer must notify all its chartered schools and the commissioner in
53.29writing by March 1 of its intent to withdraw as an authorizer on June 30 in the next calendar
53.30year, regardless of when the authorizer's five-year term of approval ends. Upon notification
53.31of the schools and commissioner, the authorizer must provide a letter to the school for
53.32distribution to families of students enrolled in the school that explains the decision to
54.1withdraw as an authorizer. The commissioner may approve the transfer of a charter school
54.2to a new authorizer under section 124E.10, subdivision 5.

54.3    Sec. 38. Minnesota Statutes 2016, section 124E.11, is amended to read:
54.4124E.11 ADMISSION REQUIREMENTS AND ENROLLMENT.
54.5    (a) A charter school, including its free preschool or prekindergarten program established
54.6under section 124E.06, subdivision 3, paragraph (b), may limit admission to:
54.7    (1) pupils within an age group or grade level;
54.8    (2) pupils who are eligible to participate in the graduation incentives program under
54.9section 124D.68; or
54.10    (3) residents of a specific geographic area in which the school is located when the
54.11majority of students served by the school are members of underserved populations.
54.12    (b) A charter school, including its free preschool or prekindergarten program established
54.13under section 124E.06, subdivision 3, paragraph (b), shall enroll an eligible pupil who
54.14submits a timely application, unless the number of applications exceeds the capacity of a
54.15program, class, grade level, or building. In this case, pupils must be accepted by lot. The
54.16charter school must develop and publish, including on its Web site, a lottery policy and
54.17process that it must use when accepting pupils by lot.
54.18    (c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
54.19and to a foster child of that pupil's parents and may give preference for enrolling children
54.20of the school's staff before accepting other pupils by lot. A charter school that is located in
54.21Duluth township in St. Louis County and admits students in kindergarten through grade 6
54.22must give enrollment preference to students residing within a five-mile radius of the school
54.23and to the siblings of enrolled children. A charter school may give enrollment preference
54.24to children currently enrolled in the school's free preschool or prekindergarten program
54.25under section 124E.06, subdivision 3, paragraph (a), who are eligible to enroll in kindergarten
54.26in the next school year.
54.27    (d) A person shall not be admitted to a charter school (1) as a kindergarten pupil, unless
54.28the pupil is at least five years of age on September 1 of the calendar year in which the school
54.29year for which the pupil seeks admission commences; or (2) as a first grade student, unless
54.30the pupil is at least six years of age on September 1 of the calendar year in which the school
54.31year for which the pupil seeks admission commences or has completed kindergarten; except
54.32that a charter school may establish and publish on its Web site a policy for admission of
55.1selected pupils at an earlier age, consistent with the enrollment process in paragraphs (b)
55.2and (c).
55.3    (e) Except as permitted in paragraph (d), a charter school, including its free preschool
55.4or prekindergarten program established under section 124E.06, subdivision 3, paragraph
55.5(b), may not limit admission to pupils on the basis of intellectual ability, measures of
55.6achievement or aptitude, or athletic ability and may not establish any criteria or requirements
55.7for admission that are inconsistent with this section.
55.8    (f) The charter school shall not distribute any services or goods of value to students,
55.9parents, or guardians as an inducement, term, or condition of enrolling a student in a charter
55.10school.
55.11    (g) Once a student is enrolled in the school, the student is considered enrolled in the
55.12school until the student formally withdraws or is expelled under the Pupil Fair Dismissal
55.13Act in sections 121A.40 to 121A.56. A charter school is subject to and must comply with
55.14the Pupil Fair Dismissal Act, sections 121A.40 to 121A.56.
55.15(h) A charter school with at least 90 percent of enrolled students who are eligible for
55.16special education services and have a primary disability of deaf or hard-of-hearing may
55.17enroll prekindergarten pupils with a disability under section 126C.05, subdivision 1,
55.18paragraph (a), and must comply with the federal Individuals with Disabilities Education
55.19Act under Code of Federal Regulations, title 34, section 300.324, subsection (2), clause
55.20(iv).

55.21    Sec. 39. Minnesota Statutes 2016, section 124E.22, is amended to read:
55.22124E.22 BUILDING LEASE AID.
55.23(a) When a charter school finds it economically advantageous to rent or lease a building
55.24or land for any instructional purpose and it determines that the total operating capital revenue
55.25under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to the
55.26commissioner for building lease aid. The commissioner must review and either approve or
55.27deny a lease aid application using the following criteria:
55.28(1) the reasonableness of the price based on current market values;
55.29(2) the extent to which the lease conforms to applicable state laws and rules; and
55.30(3) the appropriateness of the proposed lease in the context of the space needs and
55.31financial circumstances of the charter school. The commissioner must approve aid only for
55.32a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve the
56.1charter school of its lease obligations at the time the charter contract is terminated or not
56.2renewed. The closure clause under item (ii) must not be constructed or construed to relieve
56.3the charter school of its lease obligations in effect before the charter contract is terminated
56.4or not renewed.
56.5    (b) A charter school must not use the building lease aid it receives for custodial,
56.6maintenance service, utility, or other operating costs.
56.7    (c) The amount of annual building lease aid for a charter school shall not exceed the
56.8lesser of (1) 90 percent of the approved cost or (2) the product of the charter school building
56.9lease aid pupil units served for the current school year times $1,314.
56.10(d) A charter school's building lease aid pupil units equals the sum of the charter school
56.11pupil units under section 126C.05 and the pupil units for the portion of the day that the
56.12charter school's enrolled students are participating in the Postsecondary Enrollment Options
56.13Act under section 124D.09 and not otherwise included in the pupil count under section
56.14126C.05.
56.15EFFECTIVE DATE.This section is effective for fiscal year 2018 and later.

56.16    Sec. 40. Minnesota Statutes 2016, section 125A.56, subdivision 1, is amended to read:
56.17    Subdivision 1. Requirement. (a) Before a pupil is referred for a special education
56.18evaluation, the district must conduct and document at least two instructional strategies,
56.19alternatives, or interventions using a system of scientific, research-based instruction and
56.20intervention in academics or behavior, based on the pupil's needs, while the pupil is in the
56.21regular classroom. The pupil's teacher must document the results. A special education
56.22evaluation team may waive this requirement when it determines the pupil's need for the
56.23evaluation is urgent. This section may not be used to deny a pupil's right to a special
56.24education evaluation.
56.25    (b) A school district shall use alternative intervention services, including the assurance
56.26of mastery program under section 124D.66, or an early intervening services program under
56.27subdivision 2 to serve at-risk pupils who demonstrate a need for alternative instructional
56.28strategies or interventions.
56.29(c) A student identified as being unable to read at grade level under section 120B.12,
56.30subdivision 2, paragraph (a), must be provided with alternate instruction under this
56.31subdivision that is multisensory, systematic, sequential, cumulative, and explicit.

57.1    Sec. 41. [136A.1276] ALTERNATIVE TEACHER PREPARATION GRANT
57.2PROGRAM.
57.3    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
57.4the meanings given them.
57.5(b) "Alternative teacher preparation program" means an alternative teacher preparation
57.6program under section 122A.245, subdivision 2, or an experimental teacher preparation
57.7program under section 122A.09, subdivision 10.
57.8(c) "Commissioner" means the commissioner of the Office of Higher Education.
57.9(d) "Program" means a teacher preparation curriculum leading to specific licensure areas.
57.10(e) "Shortage area" means:
57.11(1) licensure fields and economic development regions reported by the commissioner
57.12of education as experiencing a teacher shortage; and
57.13(2) economic development regions where there is a shortage of licensed teachers who
57.14reflect the racial or ethnic diversity of students in the region.
57.15(f) "Unit" means an institution or defined subdivision of the institution that has primary
57.16responsibility for overseeing and delivering teacher preparation programs.
57.17    Subd. 2. Establishment; eligibility. (a) The commissioner, in consultation with the
57.18Board of Teaching, must establish and administer a program annually awarding grants to
57.19eligible alternative teacher preparation programs consistent with this section.
57.20(b) To be eligible to receive a grant, an alternative teacher preparation program must
57.21certify that it:
57.22(1) is working to fill Minnesota's teacher shortage areas; and
57.23(2) is a school district, charter school, or nonprofit corporation organized under chapter
57.24317A or under section 501(c)(3) of the Internal Revenue Code of 1986 for an
57.25education-related purpose that has been operating continuously for at least three years in
57.26Minnesota or any other state.
57.27(c) The commissioner must give priority to applicants based in Minnesota when awarding
57.28grants under this section.
57.29    Subd. 3. Use of grants. (a) An alternative teacher preparation program receiving a grant
57.30under this section must use the grant to:
57.31(1) establish initial unit approval to become an alternative teacher preparation program;
58.1(2) expand alternative teacher preparation programs by expanding program approval to
58.2other licensure areas identified as shortage areas by the commissioner of education;
58.3(3) recruit, select, and train teachers who reflect the racial or ethnic diversity of students
58.4in Minnesota; or
58.5(4) establish professional development programs for teachers who have obtained teaching
58.6licenses through alternative teacher preparation programs.
58.7An alternative teacher preparation program may expend grant funds on regional management
58.8and operations, development, and central support services, including financial support and
58.9support for technology and human services.
58.10(b) An alternative teacher preparation program may use grant funds awarded under this
58.11section as a match for nonstate funds, subject to paragraph (a).
58.12(c) Appropriations made to this program do not cancel and are available until expended.
58.13    Subd. 4. Report. An alternative teacher preparation program receiving a grant under
58.14this section must submit a report to the commissioner and the Board of Teaching on the
58.15grantee's ability to fill teacher shortage areas and positively impact student achievement
58.16where data are available and do not identify individual teachers. A grant recipient must
58.17submit the report required under this subdivision by January 31, 2018, and each
58.18even-numbered year thereafter. The report must include disaggregated data regarding:
58.19(1) the racial and ethnic diversity of teachers and teacher candidates licensed through
58.20the program; and
58.21(2) program participant placement.
58.22EFFECTIVE DATE.This section is effective for revenue in fiscal year 2018 and later.

58.23    Sec. 42. Minnesota Statutes 2016, section 136A.1791, subdivision 1, is amended to read:
58.24    Subdivision 1. Definitions. (a) The terms used in this section have the meanings given
58.25them in this subdivision.
58.26(b) "Qualified educational loan" means a government, commercial, or foundation loan
58.27for actual costs paid for tuition and reasonable educational and living expenses related to a
58.28teacher's preparation or further education.
58.29(c) "School district" means an independent school district, special school district,
58.30intermediate district, education district, special education cooperative, service cooperative,
58.31a cooperative center for vocational education, or a charter school located in Minnesota.
59.1(d) "Teacher" means an individual holding a teaching license issued by the licensing
59.2division in the Department of Education on behalf of the Board of Teaching who is employed
59.3by a school district to provide classroom instruction in a teacher shortage area.
59.4(e) "Teacher shortage area" means:
59.5(1) the licensure fields and economic development regions reported by the commissioner
59.6of education as experiencing a teacher shortage.; and
59.7(2) economic development regions where there is a shortage of licensed teachers who
59.8reflect the racial or ethnic diversity of students in the region as reported by the commissioner
59.9of education.
59.10(f) "Commissioner" means the commissioner of the Office of Higher Education unless
59.11indicated otherwise.
59.12EFFECTIVE DATE.This section is effective August 1, 2017.

59.13    Sec. 43. Minnesota Statutes 2016, section 136A.1791, subdivision 2, is amended to read:
59.14    Subd. 2. Program established; administration. The commissioner shall establish and
59.15administer a teacher shortage loan forgiveness program. A teacher is eligible for the program
59.16if the teacher is teaching in a licensure field and in an economic development region with
59.17an identified teacher shortage area under subdivision 3 and complies with the requirements
59.18of this section.
59.19EFFECTIVE DATE.This section is effective August 1, 2017.

59.20    Sec. 44. Minnesota Statutes 2016, section 136A.1791, subdivision 9, is amended to read:
59.21    Subd. 9. Annual reporting. By February 1 of each year, the commissioner must report
59.22to the chairs of the K-12 kindergarten through grade 12 and higher education committees
59.23of the legislature on the number of individuals who received loan forgiveness under this
59.24section, the race or ethnicity of the teachers participating in the program, the licensure areas
59.25and economic development regions in which the teachers taught, the average amount paid
59.26to a teacher participating in the program, and other summary data identified by the
59.27commissioner as outcome indicators.
59.28EFFECTIVE DATE.This section is effective August 1, 2017.

60.1    Sec. 45. Laws 2016, chapter 189, article 25, section 58, is amended to read:
60.2    Sec. 58. NORTHWEST REGIONAL PARTNERSHIP STATEWIDE
60.3CONCURRENT ENROLLMENT TEACHER TRAINING PROGRAM.
60.4    Subdivision 1. Definition. (a) For purposes of this section, the following terms have the
60.5meanings given them.
60.6(b) "Northwest Regional Partnership" means a voluntary association of the Lakes Country
60.7Service Cooperative, the Northwest Service Cooperative, and Minnesota State
60.8University-Moorhead that works together to provide coordinated higher learning opportunities
60.9for teachers.
60.10(c) "State Partnership" means a voluntary association of the Northwest Regional
60.11Partnership and the Metropolitan Educational Cooperative Service Unit.
60.12(d) "Eligible postsecondary institution" means a public or private postsecondary institution
60.13that awards graduate credits.
60.14(e) "Eligible teacher" means a licensed teacher of secondary school courses for
60.15postsecondary credit.
60.16    Subd. 2. Establishment. (a) Lakes Country Service Cooperative, in consultation with
60.17the Northwest Service Cooperative, may develop a continuing education program to allow
60.18eligible teachers to attain the requisite graduate credits necessary to be qualified to teach
60.19secondary school courses for postsecondary credit.
60.20(b) If established, the State Partnership must contract with one or more eligible
60.21postsecondary institutions to establish a continuing education credit program to allow eligible
60.22teachers to attain sufficient graduate credits to qualify to teach secondary school courses
60.23for postsecondary credit. Members of the State Partnership must work to eliminate duplication
60.24of service and develop the continuing education credit program efficiently and
60.25cost-effectively.
60.26    Subd. 3. Curriculum development. Minnesota State University-Moorhead may develop
60.27The continuing education program must use flexible delivery models, such as an online
60.28education curriculum to, that allow eligible secondary school teachers to attain graduate
60.29credit at a reduced credit rate. Information about the curriculum, including course length
60.30and course requirements, must be posted on the Web site of the eligible institution offering
60.31the course at least two weeks before eligible teachers are required to register for courses in
60.32the continuing education program.
61.1    Subd. 4. Funding for course development; scholarships; stipends. (a) Lakes Country
61.2Service Cooperative, in consultation with the other members of the Northwest Regional
61.3Partnership, shall:
61.4(1) provide funding for course development for up to 18 credits in applicable
61.5postsecondary subject areas;
61.6(2) provide scholarships for eligible teachers to enroll in the continuing education
61.7program; and
61.8(3) develop criteria for awarding educator stipends on a per-credit basis to incentivize
61.9participation in the continuing education program.
61.10(b) If established, the State Partnership must:
61.11(1) provide funding for course development for up to 18 credits in applicable
61.12postsecondary subject areas;
61.13(2) provide scholarships for eligible teachers to enroll in the continuing education
61.14program; and
61.15(3) develop criteria for awarding educator stipends on a per-credit basis to incentivize
61.16participation in the continuing education program.
61.17    Subd. 5. Participant eligibility. Participation in the continuing education program is
61.18reserved for teachers of secondary school courses for postsecondary credit. Priority must
61.19be given to teachers employed by a school district that is a member of the Lakes Country
61.20Service Cooperative or Northwest Service Cooperative. Teachers employed by a school
61.21district that is not a member of the Lakes Country Service Cooperative or Northwest Service
61.22Cooperative may participate in the continuing education program as space allows. A teacher
61.23participating in this program is ineligible to participate in other concurrent enrollment teacher
61.24training grant programs.
61.25    Subd. 6. Private funding. The partnership partnerships may receive private resources
61.26to supplement the available public money. All money received in fiscal year 2017 shall be
61.27administered by the Lakes Country Service Cooperative. All money received in fiscal year
61.282018 and later shall be administered by the State Partnership.
61.29    Subd. 7. Report required. (a) The Northwest Regional Partnership must submit an
61.30annual a report by January 15 of each year, 2018, on the progress of its activities to the
61.31legislature, commissioner of education, and Board of Trustees of the Minnesota State
61.32Colleges and Universities. The annual report shall contain a financial report for the preceding
61.33year. The first report is due no later than January 15, 2018.
62.1(b) If established, the State Partnership must submit an annual joint report to the
62.2legislature and the Office of Higher Education by January 15 of each year on the progress
62.3of its activities. The report must include the number of teachers participating in the program,
62.4the geographic location of the teachers, the number of credits earned, and the subject areas
62.5of the courses in which participants earned credit. The report must include a financial report
62.6for the preceding year.
62.7EFFECTIVE DATE.This section is effective the day following final enactment.

62.8    Sec. 46. Laws 2016, chapter 189, article 25, section 62, subdivision 7, is amended to read:
62.9    Subd. 7. Education Innovation Partners Cooperative Center. (a) For a matching
62.10grant to Education Innovation Partners Cooperative Center, No. 6091-50, to provide
62.11research-based professional development services, on-site training, and leadership coaching
62.12to teachers and other school staff:
62.13
62.14
$
500,000
90,000
.....
2017
62.15
$
410,000
.....
2018
62.16(b) $410,000 of the $500,000 appropriation in Laws 2016, chapter 189, article 25, section
62.1762, subdivision 7, is canceled to the state general fund on June 30, 2017.
62.18(c) A grant under this subdivision must be matched with money or in-kind contributions
62.19from nonstate sources. This is a onetime appropriation. This appropriation is available until
62.20June 30, 2019.
62.21EFFECTIVE DATE.This section is effective the day following final enactment.

62.22    Sec. 47. Laws 2016, chapter 189, article 25, section 62, subdivision 11, is amended to
62.23read:
62.24    Subd. 11. Student teachers in shortage areas. For transfer to the commissioner of the
62.25Office of Higher Education for the purpose of providing grants to student teachers in shortage
62.26areas under Minnesota Statutes, section 136A.1275:
62.27
$
2,800,000
.....
2017
62.28    Of this amount, up to two percent is for administration of the student teacher grant
62.29program in expectation that the Office of Higher Education will begin to disburse grants
62.30no later than September 1, 2017. This is a onetime appropriation. This appropriation is
62.31available until June 30, 2019.
62.32EFFECTIVE DATE.This section is effective the day following final enactment.

63.1    Sec. 48. AGRICULTURAL EDUCATOR GRANTS.
63.2    Subdivision 1. Grant program established. A grant program is established to support
63.3school districts in paying agricultural education teachers for work over the summer with
63.4high school students in extended programs.
63.5    Subd. 2. Application. The commissioner of education shall develop the form and method
63.6for applying for the grants. The commissioner shall develop criteria for determining the
63.7allocation of the grants, including appropriate goals for the use of the grants.
63.8    Subd. 3. Grant awards. Grant funding under this section must be matched by funding
63.9from the school district for the agricultural education teacher's summer employment. Grant
63.10funding for each teacher is limited to the one-half share of 40 working days.
63.11    Subd. 4. Reports. School districts that receive grant funds shall report to the
63.12commissioner of education no later than December 31 of each year regarding the number
63.13of teachers funded by the grant program and the outcomes compared to the goals established
63.14in the grant application. The Department of Education shall develop the criteria necessary
63.15for the reports.

63.16    Sec. 49. INNOVATION RESEARCH ZONES PILOT PROGRAM.
63.17    Subdivision 1. Establishment; requirements for participation; research zone plans.
63.18(a) The innovation research zone pilot program is established to improve student and school
63.19outcomes consistent with the world's best workforce requirements under Minnesota Statutes,
63.20section 120B.11. Innovation zone partnerships allow school districts and charter schools to
63.21research and implement innovative education programming models designed to better
63.22prepare students for the world of the 21st century.
63.23(b) One or more school districts or charter schools may join together to form an innovation
63.24zone partnership. The partnership may include other nonschool partners, including
63.25postsecondary institutions, other units of local government, nonprofit organizations, and
63.26for-profit organizations. An innovation zone plan must be collaboratively developed in
63.27concert with the school's instructional staff.
63.28(c) An innovation research zone partnership must research and implement innovative
63.29education programs and models that are based on proposed hypotheses. An innovation zone
63.30plan may include an emerging practice not yet supported by peer-reviewed research.
63.31Examples of innovation zone research may include, but are not limited to:
63.32(1) personalized learning, allowing students to excel at their own pace and according to
63.33their interests, aspirations, and unique needs;
64.1(2) the use of competency outcomes rather than seat time and course completion to fulfill
64.2standards, credits, and other graduation requirements;
64.3(3) multidisciplinary, real-world, inquiry-based, and student-directed models designed
64.4to make learning more engaging and relevant, including documenting and validating learning
64.5that takes place beyond the school day and school walls;
64.6(4) models of instruction designed to close the achievement gap, including new models
64.7for age three to grade 3 models, English as a second language models, early identification
64.8and prevention of mental health issues, and others;
64.9(5) new partnerships between secondary schools and postsecondary institutions,
64.10employers, or career training institutions enabling students to complete industry certifications,
64.11postsecondary education credits, and other credentials;
64.12(6) new methods of collaborative leadership including the expansion of schools where
64.13teachers have larger professional roles;
64.14(7) new ways to enhance parental and community involvement in learning;
64.15(8) new models of professional development for educators, including embedded
64.16professional development; or
64.17(9) new models in other areas such as whole child instruction, social-emotional skill
64.18development, technology-based or blended learning, parent and community involvement,
64.19professional development and mentoring, and models that increase the return on investment.
64.20(d) An innovation zone plan submitted to the commissioner must describe:
64.21(1) how the plan will improve student and school outcomes consistent with the world's
64.22best workforce requirements under Minnesota Statutes, section 120B.11;
64.23(2) the role of each partner in the zone;
64.24(3) the research methodology used for each proposed action in the plan;
64.25(4) the exemptions from statutes and rules in subdivision 2 that the research zone
64.26partnership will use;
64.27(5) a description of how teachers and other educational staff from the affected school
64.28sites will be included in the planning and implementation process;
64.29(6) a detailed description of expected outcomes and graduation standards;
64.30(7) a timeline for implementing the plan and assessing the outcomes; and
64.31(8) how results of the plan will be disseminated.
65.1The governing board for each partner must approve the innovation zone plan.
65.2(e) Upon unanimous approval of the initial innovation zone partners and approval of the
65.3commissioner of education, the innovation zone partnership may extend membership to
65.4other partners. A new partner's membership is effective 30 days after the innovation zone
65.5partnership notifies the commissioner of the proposed change in membership unless the
65.6commissioner disapproves the new partner's membership.
65.7(f) Notwithstanding any other law to the contrary, a school district or charter school
65.8participating in an innovation zone partnership under this section continues to receive all
65.9revenue and maintains its taxation authority in the same manner as before its participation
65.10in the innovation zone partnership. The innovation zone school district and charter school
65.11partners remain organized and governed by their respective school boards with general
65.12powers under Minnesota Statutes, chapter 123B or 124E, and remain subject to any
65.13employment agreements under Minnesota Statutes, chapters 122A and 179A. School district
65.14and charter school employees participating in an innovation zone partnership remain
65.15employees of their respective school district or charter school.
65.16(g) An innovation zone partnership may submit its plan at any time to the commissioner
65.17in the form and manner specified by the commissioner. The commissioner must approve
65.18or reject the plan after reviewing the recommendation of the Innovation Research Zone
65.19Advisory Panel. An initial innovation zone plan that has been rejected by the commissioner
65.20may be resubmitted to the commissioner after the innovation zone partnership has modified
65.21the plan to meet each individually identified objection.
65.22    Subd. 2. Exemptions from laws and rules. (a) Notwithstanding any other law to the
65.23contrary, an innovation zone partner with an approved plan is exempt from each of the
65.24following state education laws and rules specifically identified in its plan:
65.25(1) any law or rule from which a district-created, site-governed school under Minnesota
65.26Statutes, section 123B.045, is exempt;
65.27(2) any statute or rule from which the commissioner has exempted another district or
65.28charter school, as identified in the list published on the Department of Education's Web site
65.29under subdivision 4, paragraph (b);
65.30(3) online learning program approval under Minnesota Statutes, section 124D.095,
65.31subdivision 7, if the school district or charter school offers a course or program online
65.32combined with direct access to a teacher for a portion of that course or program;
66.1(4) restrictions on extended time revenue under Minnesota Statutes, section 126C.10,
66.2subdivision 2a, for a student who meets the criteria of Minnesota Statutes, section 124D.68,
66.3subdivision 2; and
66.4(5) any required hours of instruction in any class or subject area for a student who is
66.5meeting all competencies consistent with the graduation standards described in the innovation
66.6zone plan.
66.7(b) The exemptions under this subdivision must not be construed as exempting an
66.8innovation zone partner from the Minnesota Comprehensive Assessments.
66.9    Subd. 3. Innovation Research Zone Advisory Panel. (a) The commissioner must
66.10establish and convene an Innovation Research Zone Advisory Panel to review all innovation
66.11zone plans submitted for approval.
66.12(b) The panel must be composed of nine members. One member must be appointed by
66.13each of the following organizations: Educators for Excellence, Education Minnesota,
66.14Minnesota Association of Secondary School Principals, Minnesota Elementary School
66.15Principals' Association, Minnesota Association of School Administrators, Minnesota School
66.16Boards Association, Minnesota Association of Charter Schools, and the Office of Higher
66.17Education. The commissioner must appoint one member with expertise in evaluation and
66.18research.
66.19    Subd. 4. Commissioner approval. (a) Upon recommendation of the Innovation Research
66.20Zone Advisory Panel, the commissioner may approve up to three innovation zone plans in
66.21the seven-county metropolitan area and up to three in greater Minnesota. If an innovation
66.22zone partnership fails to implement its innovation zone plan as described in its application
66.23and according to the stated timeline, upon recommendation of the Innovation Research
66.24Zone Advisory Panel, the commissioner must alert the partnership members and provide
66.25the opportunity to remediate. If implementation continues to fail, the commissioner must
66.26suspend or terminate the innovation zone plan.
66.27(b) The commissioner must publish a list of the exemptions the commissioner has granted
66.28to a district or charter school on the Department of Education's Web site by July 1, 2017.
66.29The list must be updated annually.
66.30    Subd. 5. Project evaluation, dissemination, and report to legislature. Each research
66.31zone partnership must submit project data to the commissioner in the form and manner
66.32provided for in the approved application. At least once every two years, the commissioner
66.33must analyze each innovation zone's progress in realizing the objectives of the innovation
66.34zone partnership's plan. The commissioner must summarize and categorize innovation zone
67.1plans and submit a report to the legislative committees having jurisdiction over education
67.2by February 1 of each odd-numbered year in accordance with Minnesota Statutes, section
67.33.195.
67.4EFFECTIVE DATE.This section is effective the day following final enactment.

67.5    Sec. 50. COMMISSIONER OF EDUCATION MUST SUBMIT ESSA PLAN TO
67.6LEGISLATURE.
67.7    Subdivision 1. ESSA plan. The commissioner of education must submit the state plan
67.8developed pursuant to the Elementary and Secondary Education Act of 1965, as amended
67.9by the Every Student Succeeds Act, United States Code, title 20, section 6311, to the
67.10education policy and finance committees of the legislature at least 30 days before submitting
67.11the plan to the United States Department of Education.
67.12    Subd. 2. Alignment with World's Best Workforce measures. The state plan must be
67.13consistent and aligned, to the extent practicable, with the performance accountability
67.14measures required under Minnesota Statutes, section 120B.11, subdivision 1a, to create a
67.15single accountability system for all public schools.
67.16    Subd. 3. Indicators. (a) The school quality or student success accountability indicator
67.17required by ESSA must be an academic indicator.
67.18(b) The state plan may use one of the following indicators for elementary and secondary
67.19schools:
67.20(1) reading and math growth for students performing in the bottom quartile, as measured
67.21on the state accountability assessments, and using growth to proficiency standards;
67.22(2) third grade reading proficiency as measured on the state accountability assessments;
67.23(3) eighth grade mathematics proficiency as measured on the state accountability
67.24assessments; or
67.25(4) science proficiency as measured on the state accountability assessments.
67.26(c) The state plan should use the tenth grade reading Minnesota Comprehensive
67.27Assessment and eleventh grade mathematics Minnesota Comprehensive Assessment to
67.28measure career and college readiness. To the extent practicable, the state plan should also
67.29use the following information to measure college and career readiness:
67.30(1) student success or attainment on advanced placement or international baccalaureate
67.31examinations;
68.1(2) credits under Minnesota Statutes, section 124D.09; or
68.2(3) industry-recognized certifications.
68.3EFFECTIVE DATE.This section is effective the day following final enactment.

68.4    Sec. 51. EDUCATIONAL STABILITY FOR STUDENTS IN FOSTER CARE.
68.5    Subdivision 1. Establishment. A pilot project is established to provide incentives for
68.6school districts and county governments to develop partnership agreements and implement
68.7transportation plans to help keep foster care students enrolled in their school of origin when
68.8a student is placed in a foster care setting outside the school of origin's boundaries.
68.9    Subd. 2. Qualifying plans. A school district must submit an application in the form and
68.10manner prescribed by the commissioner of education to participate in the program. To
68.11qualify for participation, one or more school districts and the local child welfare agency
68.12must have a written interagency agreement that describes the local plan for ensuring
68.13educational stability for foster care students. The parties to the agreement must seek title
68.14IV-E reimbursement for eligible students and eligible transportation costs. The plan must
68.15describe:
68.16(1) how transportation services will be arranged and provided; and
68.17(2) how local transportation costs will be paid for if pilot project funds are insufficient
68.18to cover all costs.
68.19    Subd. 3. Pilot project; funding. The commissioner must reimburse partnerships with
68.20qualifying plans under subdivision 2 at the end of the school year based on allowable
68.21expenditures and reimbursements and compliance with other reporting requirements. If the
68.22available appropriation is insufficient to fully fund all qualifying plans, the commissioner
68.23may prorate the available funds statewide among all school districts with qualifying plans.
68.24    Subd. 4. Report. By February 1, 2018, the commissioner of education shall report on
68.25the pilot project to the legislative committees with jurisdiction over early childhood through
68.26grade 12 education. The report must include, at a minimum, the number of local agreements
68.27entered into for this project along with the number of school districts and counties
68.28participating in the agreements, baseline data showing the number of foster care students
68.29who were able to remain in their school of origin and the changes in the ratio over the time
68.30of the pilot project, data on expenditures for school stability transportation and federal
68.31reimbursements received for the pilot project with a midyear projection of end-of-year costs
68.32and revenues, and projected costs for statewide implementation of the program.

69.1    Sec. 52. FEDERAL EVERY STUDENT SUCCEEDS ACT FUNDING FOR
69.2SCIENCE, TECHNOLOGY, ENGINEERING, AND MATH (STEM) ACTIVITIES.
69.3School districts are encouraged to use the funding provided for activities to support the
69.4effective use of technology under Title IV, Part A, of the federal Every Student Succeeds
69.5Act for:
69.6(1) mentor-led, hands-on STEM education and engagement with materials that support
69.7inquiry-based and active learning;
69.8(2) student participation in STEM competitions, including robotics competitions; and
69.9(3) mentor-led, classroom-based, after-school activities with informal STEM instruction
69.10and education.
69.11EFFECTIVE DATE.This section is effective July 1, 2017.

69.12    Sec. 53. RURAL CAREER AND TECHNICAL EDUCATION CONSORTIUM
69.13GRANTS.
69.14    Subdivision 1. Definition. "Rural career and technical education (CTE) consortium"
69.15means a voluntary collaboration of a service cooperative and other regional public and
69.16private partners, including school districts and higher education institutions, that work
69.17together to provide career and technical education opportunities within the service
69.18cooperative's multicounty service area.
69.19    Subd. 2. Establishment. (a) A rural CTE consortium shall:
69.20(1) focus on the development of courses and programs that encourage collaboration
69.21between two or more school districts;
69.22(2) develop new career and technical programs that focus on the industry sectors that
69.23fuel the rural regional economy;
69.24(3) facilitate the development of highly trained and knowledgeable students who are
69.25equipped with technical and workplace skills needed by regional employers;
69.26(4) improve access to career and technical education programs for students who attend
69.27sparsely populated rural school districts by developing public and private partnerships with
69.28business and industry leaders and by increasing coordination of high school and
69.29postsecondary program options;
69.30(5) increase family and student awareness of the availability and benefit of career and
69.31technical education courses and training opportunities; and
70.1(6) provide capital start-up costs for items including but not limited to a mobile welding
70.2lab, medical equipment and lab, and industrial kitchen equipment.
70.3(b) In addition to the requirements in paragraph (a), a rural CTE consortium may:
70.4(1) address the teacher shortage crisis in career and technical education through incentive
70.5funding and training programs; and
70.6(2) provide transportation reimbursement grants to provide equitable opportunities
70.7throughout the region for students to participate in career and technical education.
70.8    Subd. 3. Rural career and technical education advisory committee. In order to be
70.9eligible for a grant under this section, a service cooperative must establish a rural career
70.10and technical education advisory committee to advise the cooperative on the administration
70.11of the rural CTE consortium.
70.12    Subd. 4. Private funding. A rural CTE consortium may receive other sources of funds
70.13to supplement state funding. All funds received shall be administered by the service
70.14cooperative that is a member of the consortium.
70.15    Subd. 5. Reporting requirements. A rural CTE consortium must submit an annual
70.16report on the progress of its activities to the commissioner of education and the legislative
70.17committees with jurisdiction over secondary and postsecondary education. The annual report
70.18must contain a financial report for the preceding fiscal year. The first report is due no later
70.19than January 15, 2019.
70.20    Subd. 6. Grant recipients. For fiscal years 2018 and 2019, the commissioner shall
70.21award a two-year grant to the consortium that is a collaboration of the Southwest/West
70.22Central Service Cooperative (SWWC), Southwest Minnesota State University, Minnesota
70.23West Community and Technical College, Ridgewater College, and other regional public
70.24and private partners. For fiscal years 2020 and 2021, the commissioner shall award a two-year
70.25grant to an applicant consortium that includes the South Central Service Cooperative or
70.26Southeast Service Cooperative and a two-year grant to an applicant consortium that includes
70.27the Northwest Service Cooperative or Northeast Service Cooperative.

70.28    Sec. 54. INTERMEDIATE SCHOOL DISTRICT MENTAL HEALTH INNOVATION
70.29GRANT PROGRAM; APPROPRIATION.
70.30(a) $2,450,000 in fiscal year 2018 and $2,450,000 in fiscal year 2019 are appropriated
70.31from the general fund to the commissioner of human services for a grant program to fund
70.32innovative projects to improve mental health outcomes for youth attending a qualifying
70.33school unit.
71.1(b) A "qualifying school unit" means an intermediate district organized under Minnesota
71.2Statutes, section 136D.01, or a service cooperative organized under Minnesota Statutes,
71.3section 123A.21, subdivision 1, paragraph (a), clause (2), that provides instruction to students
71.4in a setting of federal instructional level four or higher. Grants under paragraph (a) must be
71.5awarded to eligible applicants such that the services are proportionately provided among
71.6qualifying school units. The commissioner shall calculate the share of the appropriation to
71.7be used in each qualifying school unit by dividing the qualifying school unit's average daily
71.8membership in a setting of federal instructional level 4 or higher for fiscal year 2016 by the
71.9total average daily membership in a setting of federal instructional level 4 or higher for the
71.10same year for all qualifying school units.
71.11(c) An eligible applicant is an entity that has demonstrated capacity to serve the youth
71.12identified in paragraph (a) and that is:
71.13(1) certified under Minnesota Rules, parts 9520.0750 to 9520.0870;
71.14(2) a community mental health center under Minnesota Statutes, section 256B.0625,
71.15subdivision 5;
71.16(3) an Indian health service facility or facility owned and operated by a tribe or tribal
71.17organization operating under United States Code, title 25, section 5321; or
71.18(4) a provider of children's therapeutic services and supports as defined in Minnesota
71.19Statutes, section 256B.0943.
71.20(d) An eligible applicant must employ or contract with at least two licensed mental health
71.21professionals as defined in Minnesota Statutes, section 245.4871, subdivision 27, clauses
71.22(1) to (6), who have formal training in evidence-based practices.
71.23(e) A qualifying school unit must submit an application to the commissioner in the form
71.24and manner specified by the commissioner. The commissioner may approve an application
71.25that describes models for innovative projects to serve the needs of the schools and students.
71.26The commissioner may provide technical assistance to the qualifying school unit. The
71.27commissioner shall then solicit grant project proposals and award grant funding to the
71.28eligible applicants whose project proposals best meet the requirements of this section and
71.29most closely adhere to the models created by the intermediate districts and service
71.30cooperatives.
71.31(f) To receive grant funding, an eligible applicant must obtain a letter of support for the
71.32applicant's grant project proposal from each qualifying school unit the eligible applicant is
71.33proposing to serve. An eligible applicant must also demonstrate the following:
72.1(1) the ability to seek third-party reimbursement for services;
72.2(2) the ability to report data and outcomes as required by the commissioner; and
72.3(3) the existence of partnerships with counties, tribes, substance use disorder providers,
72.4and mental health service providers, including providers of mobile crisis services.
72.5(g) Grantees shall obtain all available third-party reimbursement sources as a condition
72.6of receiving grant funds. For purposes of this grant program, a third-party reimbursement
72.7source does not include a public school as defined in Minnesota Statutes, section 120A.20,
72.8subdivision 1.
72.9(h) The base budget for this program is $0. This appropriation is available until June 30,
72.102020.

72.11    Sec. 55. APPROPRIATIONS.
72.12    Subdivision 1. Department of Education. The sums indicated in this section are
72.13appropriated from the general fund to the Department of Education for the fiscal years
72.14designated.
72.15    Subd. 2. Achievement and integration aid. For achievement and integration aid under
72.16Minnesota Statutes, section 124D.862:
72.17
$
71,114,000
.....
2018
72.18
$
73,117,000
.....
2019
72.19The 2018 appropriation includes $6,725,000 for 2017 and $64,389,000 for 2018.
72.20The 2019 appropriation includes $7,154,000 for 2018 and $65,963,000 for 2019.
72.21    Subd. 3. Literacy incentive aid. For literacy incentive aid under Minnesota Statutes,
72.22section 124D.98:
72.23
$
47,264,000
.....
2018
72.24
$
47,763,000
.....
2019
72.25The 2018 appropriation includes $4,597,000 for 2017 and $42,667,000 for 2018.
72.26The 2019 appropriation includes $4,740,000 for 2018 and $43,023,000 for 2019.
72.27    Subd. 4. Interdistrict desegregation or integration transportation grants. For
72.28interdistrict desegregation or integration transportation grants under Minnesota Statutes,
72.29section 124D.87:
72.30
$
13,337,000
.....
2018
72.31
$
14,075,000
.....
2019
73.1    Subd. 5. Tribal contract schools. For tribal contract school aid under Minnesota Statutes,
73.2section 124D.83:
73.3
$
1,983,000
.....
2018
73.4
$
1,930,000
.....
2019
73.5The 2018 appropriation includes $323,000 for 2017 and $1,660,000 for 2018.
73.6The 2019 appropriation includes $184,000 for 2018 and $1,746,000 for 2019.
73.7    Subd. 6. American Indian education aid. For American Indian education aid under
73.8Minnesota Statutes, section 124D.81, subdivision 2a:
73.9
$
9,244,000
.....
2018
73.10
$
9,464,000
.....
2019
73.11The 2018 appropriation includes $886,000 for 2017 and $8,358,000 for 2018.
73.12The 2019 appropriation includes $928,000 for 2018 and $8,536,000 for 2019.
73.13    Subd. 7. Early childhood literacy programs. (a) For early childhood literacy programs
73.14under Minnesota Statutes, section 119A.50, subdivision 3:
73.15
$
6,125,000
.....
2018
73.16
$
6,125,000
.....
2019
73.17(b) Up to $6,125,000 each year is for leveraging federal and private funding to support
73.18AmeriCorps members serving in the Minnesota reading corps program established by
73.19ServeMinnesota, including costs associated with training and teaching early literacy skills
73.20to children ages three to grade 3 and evaluating the impact of the program under Minnesota
73.21Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
73.22(c) Any balance in the first year does not cancel but is available in the second year.
73.23(d) The base for fiscal year 2020 is $7,125,000.
73.24    Subd. 8. Concurrent enrollment program. For concurrent enrollment programs under
73.25Minnesota Statutes, section 124D.091:
73.26
$
4,000,000
.....
2018
73.27
$
4,000,000
.....
2019
73.28If the appropriation is insufficient, the commissioner must proportionately reduce the
73.29aid payment to each district.
73.30Any balance in the first year does not cancel but is available in the second year.
74.1    Subd. 9. Expanded concurrent enrollment grants. For grants to institutions offering
74.2"Introduction to Teaching" or "Introduction to Education" college in the schools courses
74.3under Minnesota Statutes, section 124D.09, subdivision 10, paragraph (b):
74.4
$
375,000
.....
2018
74.5
$
375,000
.....
2019
74.6The department may retain up to five percent of the appropriation amount to monitor
74.7and administer the grant program.
74.8    Subd. 10. ServeMinnesota program. For funding ServeMinnesota programs under
74.9Minnesota Statutes, sections 124D.37 to 124D.45:
74.10
$
900,000
.....
2018
74.11
$
900,000
.....
2019
74.12A grantee organization may provide health and child care coverage to the dependents
74.13of each participant enrolled in a full-time ServeMinnesota program to the extent such
74.14coverage is not otherwise available.
74.15    Subd. 11. Student organizations. For student organizations:
74.16
$
725,000
.....
2018
74.17
$
725,000
.....
2019
74.18(a) $46,000 each year is for student organizations serving health occupations (HOSA).
74.19(b) $100,000 each year is for student organizations serving trade and industry occupations
74.20(Skills USA, secondary and postsecondary).
74.21(c) $95,000 each year is for student organizations serving business occupations (BPA,
74.22secondary and postsecondary).
74.23(d) $193,000 each year is for student organizations serving agriculture occupations (FFA,
74.24PAS).
74.25(e) $142,000 in fiscal years 2018 and 2019 is for student organizations serving family
74.26and consumer science occupations (FCCLA). Notwithstanding Minnesota Rules, part
74.273505.1000, subparts 28 and 31, the student organizations serving FCCLA shall continue to
74.28serve students younger than grade 9. Beginning in fiscal year 2020, the amount is $185,000.
74.29(f) $109,000 each year is for student organizations serving marketing occupations (DECA
74.30and DECA collegiate).
74.31(g) $40,000 each year is for the Minnesota Foundation for Student Organizations.
74.32(h) Any balance in the first year does not cancel but is available in the second year.
75.1(i) The base for fiscal year 2020 and later is $768,000.
75.2    Subd. 12. Museums and education centers. For grants to museums and education
75.3centers:
75.4
$
460,000
.....
2018
75.5
$
460,000
.....
2019
75.6(a) $319,000 each year is for the Minnesota Children's Museum. Of the amount in this
75.7paragraph, $50,000 in each year is for the Minnesota Children's Museum, Rochester.
75.8(b) $50,000 each year is for the Duluth Children's Museum.
75.9(c) $41,000 each year is for the Minnesota Academy of Science.
75.10(d) $50,000 each year is for the Headwaters Science Center.
75.11Any balance in the first year does not cancel but is available in the second year.
75.12    Subd. 13. Minnesota Center for the Book programming. For grants to the entity
75.13designated by the Library of Congress as the Minnesota Center for the Book to provide
75.14statewide programming related to the Minnesota Book Awards and for additional
75.15programming throughout the state related to the Center for the Book designation:
75.16
$
50,000
.....
2018
75.17
$
50,000
.....
2019
75.18The base for fiscal year 2020 is $0.
75.19    Subd. 14. Singing-based pilot program to improve student reading. (a) For a grant
75.20to pilot a research-supported, computer-based educational program that uses singing to
75.21improve the reading ability of students in grades 2 through 5:
75.22
$
500,000
.....
2018
75.23
$
0
.....
2019
75.24(b) The commissioner of education shall award a grant to the Rock 'n' Read Project to
75.25implement a research-supported, computer-based educational program that uses singing to
75.26improve the reading ability of students in grades 2 through 5. The grantee shall be responsible
75.27for selecting participating school sites; providing any required hardware and software,
75.28including software licenses, for the duration of the grant period; providing technical support,
75.29training, and staff to install required project hardware and software; providing on-site
75.30professional development and instructional monitoring and support for school staff and
75.31students; administering preintervention and postintervention reading assessments; evaluating
75.32the impact of the intervention; and other project management services as required. To the
75.33extent practicable, the grantee must select participating schools in urban, suburban, and
76.1greater Minnesota, and give priority to schools in which a high proportion of students do
76.2not read proficiently at grade level and are eligible for free or reduced-price lunch.
76.3(c) By February 15, 2019, the grantee must submit a report detailing expenditures and
76.4outcomes of the grant to the commissioner of education and the chairs and ranking minority
76.5members of the legislative committees with primary jurisdiction over kindergarten through
76.6grade 12 education policy and finance.
76.7(d) This is a onetime appropriation.
76.8    Subd. 15. Starbase MN. (a) For a grant to Starbase MN for a rigorous science,
76.9technology, engineering, and math (STEM) program providing students in grades 4 through
76.106 with a multisensory learning experience and a hands-on curriculum in an aerospace
76.11environment using state-of-the-art technology:
76.12
$
1,398,000
.....
2018
76.13
$
0
.....
2019
76.14(b) Any balance in the first year does not cancel but is available in the second year. The
76.15base for fiscal year 2020 is $500,000.
76.16    (c) All unspent funds, estimated at $898,000 from the Starbase MN appropriation under
76.17Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 17, are canceled
76.18the day following final enactment.
76.19    Subd. 16. Recovery program grants. For recovery program grants under Minnesota
76.20Statutes, section 124D.695:
76.21
$
750,000
.....
2018
76.22
$
750,000
.....
2019
76.23Any balance in the first year does not cancel but is available in the second year.
76.24    Subd. 17. Minnesota math corps program. For the Minnesota math corps program
76.25under Minnesota Statutes, section 124D.42, subdivision 9:
76.26
$
500,000
.....
2018
76.27
$
500,000
.....
2019
76.28Any balance in the first year does not cancel but is available in the second year.
76.29    Subd. 18. Civic education grants. For grants to the Minnesota Civic Education Coalition,
76.30Minnesota Civic Youth, Learning Law and Democracy Foundation, and YMCA Youth in
76.31Government to provide civic education programs for Minnesota youth age 18 and younger.
76.32Civic education is the study of constitutional principles and the democratic foundation of
77.1our national, state, and local institutions, and the study of political processes and structures
77.2of government, grounded in the understanding of constitutional government under the rule
77.3of law.
77.4
$
125,000
.....
2018
77.5
$
125,000
.....
2019
77.6    Any balance in the first year does not cancel but is available in the second year. The
77.7budget base for this program is $0.
77.8    Subd. 19. Minnesota Principals Academy. (a) For grants to the University of Minnesota
77.9College of Education and Human Development for the operation of the Minnesota Principals
77.10Academy:
77.11
$
200,000
.....
2018
77.12
$
200,000
.....
2019
77.13(b) Of these amounts, $50,000 must be used to pay the costs of attendance for principals
77.14from schools designated as priority schools by the commissioner of education. To the extent
77.15funds are available, the Department of Education must use up to $200,000 of federal Title
77.16II funds to support additional participation in the Principals Academy by principals from
77.17priority schools.
77.18(c) Any balance in the first year does not cancel but is available in the second year.
77.19    Subd. 20. Educational stability for students living in foster care. For a pilot project
77.20to promote educational stability for students living in foster care:
77.21
$
1,000,000
.....
2018
77.22Up to five percent of the appropriation may be used for state and local administrative
77.23costs such as reporting, technical support, and establishing a Title IV-E reimbursement
77.24claiming process. This is a onetime appropriation. This appropriation is available until June
77.2530, 2019.
77.26    Subd. 21. Charter school building lease aid. For building lease aid under Minnesota
77.27Statutes, section 124E.22:
77.28
$
73,204,000
.....
2018
77.29
$
78,648,000
.....
2019
77.30The 2018 appropriation includes $6,850,000 for 2017 and $66,354,000 for 2018.
77.31The 2019 appropriation includes $7,372,000 for 2018 and $74,276,000 for 2019.
78.1    Subd. 22. Race 2 Reduce. (a) For grants to support expanded Race 2 Reduce water
78.2conservation programming in Minnesota schools:
78.3
$
307,000
.....
2018
78.4
$
0
.....
2019
78.5(b) $143,000 is for H2O for Life; $98,000 is for Independent School District No. 624,
78.6White Bear Lake; and $66,000 is for Independent School District No. 832, Mahtomedi.
78.7(c) The appropriation is available until June 30, 2019. The base for fiscal year 2020 is
78.8$0.
78.9    Subd. 23. Paraprofessional pathway to teacher licensure. (a) For grants to school
78.10districts for Grow Your Own new teacher programs:
78.11
$
1,500,000
.....
2018
78.12
$
1,500,000
.....
2019
78.13(b) The grants are for school districts with more than 30 percent minority students for
78.14a Board of Teaching-approved nonconventional teacher residency pilot program. The
78.15program must provide tuition scholarships or stipends to enable school district employees
78.16or community members affiliated with a school district who seek an education license to
78.17participate in a nonconventional teacher preparation program. School districts that receive
78.18funds under this subdivision are strongly encouraged to recruit candidates of color and
78.19American Indian candidates to participate in the Grow Your Own new teacher programs.
78.20Districts or schools providing financial support may require a commitment as determined
78.21by the district to teach in the district or school for a reasonable amount of time that does
78.22not exceed five years.
78.23(c) Programs must annually report to the commissioner by the date determined by the
78.24commissioner on their activities under this section, including the number of participants,
78.25the percentage of participants who are of color or who are American Indian, and an
78.26assessment of program effectiveness, including participant feedback, areas for improvement,
78.27the percentage of participants continuing to pursue teacher licensure, and the number of
78.28participants hired in the school or district as teachers after completing preparation programs.
78.29(d) The department may retain up to three percent of the appropriation amount to monitor
78.30and administer the grant program.
78.31(e) Any balance in the first year does not cancel but is available in the second year.
78.32    Subd. 24. Statewide testing and reporting system. For the statewide testing and
78.33reporting system under Minnesota Statutes, section 120B.30:
79.1
$
10,892,000
.....
2018
79.2
$
10,892,000
.....
2019
79.3Any balance in the first year does not cancel but is available in the second year.
79.4    Subd. 25. College entrance examination reimbursement. To reimburse districts for
79.5students who qualify under Minnesota Statutes, section 120B.30, subdivision 1, paragraph
79.6(e), for payment of their college entrance examination fee:
79.7
$
1,511,000
.....
2018
79.8
$
1,511,000
.....
2019
79.9The commissioner must reimburse school districts for their costs of one-time payments
79.10to free or reduced-price meal eligible students who take the ACT or SAT test under
79.11Minnesota Statutes, section 120B.30, subdivision 1.
79.12Any balance in the first year does not cancel but is available in the second year.
79.13    Subd. 26. Alternative teacher compensation aid. For alternative teacher compensation
79.14aid under Minnesota Statutes, section 122A.415, subdivision 4:
79.15
$
89,863,000
.....
2018
79.16
$
89,623,000
.....
2019
79.17The 2018 appropriation includes $8,917,000 for 2017 and $80,946,000 for 2018.
79.18The 2019 appropriation includes $8,993,000 for 2018 and $80,630,000 for 2019.
79.19    Subd. 27. Collaborative urban and greater Minnesota educators of color program
79.20grants. (a) For collaborative urban and greater Minnesota educators of color program grants:
79.21
$
1,000,000
.....
2018
79.22
$
1,000,000
.....
2019
79.23(b) Grants shall be awarded in equal amounts: $195,000 each year is for the Southeast
79.24Asian Teacher program at Concordia University, St. Paul; $195,000 each year is for the
79.25Collaborative Urban Educator program at the University of St. Thomas; $195,000 each year
79.26is for the Center for Excellence in Urban Teaching at Hamline University; and $195,000
79.27each year is for the East Africa Student to Teacher program at Augsburg College.
79.28(c) By January 15 of each year, each institution shall prepare for the legislature a detailed
79.29report regarding the funds used to recruit, retain, and induct teacher candidates who are of
79.30color or who are American Indian. The report must include the total number of teacher
79.31candidates of color, disaggregated by race or ethnic group, who are recruited to the institution,
79.32are newly admitted to the licensure program, are enrolled in the licensure program, have
79.33completed student teaching, have graduated, and are licensed and newly employed as
80.1Minnesota teachers in their licensure field. The total number of teacher candidates who are
80.2of color or who are American Indian at each stage from recruitment to licensed teaching
80.3must be reported as a percentage of total candidates seeking the same licensure at the
80.4institution. The report must include the graduation rate for each cohort of teacher candidates,
80.5the placement rate for each graduating cohort of teacher candidates, and the retention rate
80.6for each graduating cohort of teacher candidates, among other program outcomes.
80.7(d) The commissioner must establish a competitive grant process to award $220,000
80.8each year to Board of Teaching-approved teacher preparation programs, including alternative
80.9teacher preparation programs. The competitive process must award grants based on program
80.10benchmarks, including licensure rates, participation rates, and on-time graduation rates.
80.11(e) For fiscal year 2020 and later, the commissioner must award all collaborative urban
80.12educator grants through the competitive grant program.
80.13(f) Any balance in the first year does not cancel but is available in the second year.
80.14    Subd. 28. Examination fees; teacher training and support programs. (a) For students'
80.15advanced placement and international baccalaureate examination fees under Minnesota
80.16Statutes, section 120B.13, subdivision 3, and the training and related costs for teachers and
80.17other interested educators under Minnesota Statutes, section 120B.13, subdivision 1:
80.18
$
4,500,000
.....
2018
80.19
$
4,500,000
.....
2019
80.20(b) The advanced placement program shall receive 75 percent of the appropriation each
80.21year and the international baccalaureate program shall receive 25 percent of the appropriation
80.22each year. The department, in consultation with representatives of the advanced placement
80.23and international baccalaureate programs selected by the Advanced Placement Advisory
80.24Council and International Baccalaureate Minnesota, respectively, shall determine the amounts
80.25of the expenditures each year for examination fees and training and support programs for
80.26each program.
80.27(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least $500,000
80.28each year is for teachers to attend subject matter summer training programs and follow-up
80.29support workshops approved by the advanced placement or international baccalaureate
80.30programs. The amount of the subsidy for each teacher attending an advanced placement or
80.31international baccalaureate summer training program or workshop shall be the same. The
80.32commissioner shall determine the payment process and the amount of the subsidy.
80.33(d) The commissioner shall pay all examination fees for all students of low-income
80.34families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent of
81.1available appropriations, shall also pay examination fees for students sitting for an advanced
81.2placement examination, international baccalaureate examination, or both.
81.3Any balance in the first year does not cancel but is available in the second year.
81.4    Subd. 29. Grants to increase science, technology, engineering, and math course
81.5offerings. For grants to schools to encourage low-income and other underserved students
81.6to participate in advanced placement and international baccalaureate programs according
81.7to Minnesota Statutes, section 120B.132:
81.8
$
250,000
.....
2018
81.9
$
250,000
.....
2019
81.10Any balance in the first year does not cancel but is available in the second year.
81.11    Subd. 30. Agricultural educator grants. For agricultural educator grants under section
81.1248:
81.13
$
250,000
.....
2018
81.14
$
250,000
.....
2019
81.15Any balance in the first year does not cancel but is available in the second year.
81.16    Subd. 31. American Indian teacher preparation grants. For joint grants to assist
81.17American Indian people to become teachers under Minnesota Statutes, section 122A.63:
81.18
$
460,000
.....
2018
81.19
$
460,000
.....
2019
81.20    Subd. 32. African American Registry. (a) For grants to the African American Registry
81.21for the Teacher's Forum:
81.22
$
100,000
.....
2018
81.23
$
100,000
.....
2019
81.24(b) The African American Registry must use the grant funds to establish partnerships
81.25with Metropolitan State University and the University of St. Thomas to improve the cultural
81.26competency of candidates seeking a first teaching license. By January 15 of each year, the
81.27African American Registry shall submit to the legislature a detailed report regarding the
81.28funds used. The report must include the number of teachers prepared. The base in fiscal
81.29year 2020 is $0.
81.30    Subd. 33. Rural career and technical education consortium. (a) For rural career and
81.31technical education consortium grants:
81.32
$
1,500,000
.....
2018
81.33
$
1,500,000
.....
2019
82.1This appropriation is available until June 30, 2022. If the appropriation in the first year
82.2is insufficient, the 2019 appropriation is available.
82.3(b) The base in fiscal year 2020 is $3,000,000.
82.4    Subd. 34. Sanneh Foundation. (a) For a grant to the Sanneh Foundation to provide
82.5all-day, in-school, and before- and after-school academic and behavioral interventions for
82.6low-performing and chronically absent students with a focus on low-income students and
82.7students of color throughout the school year and during the summer to decrease absenteeism,
82.8encourage school engagement, and improve grades and graduation rates.
82.9
$
1,000,000
.....
2018
82.10(b) Funds appropriated in this section must be used to establish and provide services in
82.11schools where the Sanneh Foundation does not currently operate, and must not be used for
82.12programs operating in schools as of June 30, 2017.
82.13(c) This is a onetime appropriation. Any balance in the first year does not cancel but is
82.14available in the second year.
82.15    Subd. 35. Alternative teacher preparation grant program. (a) For transfer to the
82.16commissioner of the Office of Higher Education for alternative teacher preparation program
82.17grants under Minnesota Statutes, section 136A.1276:
82.18
$
750,000
.....
2018
82.19
$
0
.....
2019
82.20(b) Any balance in the first year does not cancel but is available in the second year.
82.21    Subd. 36. Teacher shortage loan forgiveness. (a) For transfer to the commissioner of
82.22the Office of Higher Education for the loan forgiveness program under Minnesota Statutes,
82.23section 136A.1791:
82.24
$
500,000
.....
2018
82.25
$
0
.....
2019
82.26(b) The commissioner may use no more than three percent of this appropriation to
82.27administer the program under this subdivision.
82.28(c) Any balance in the first year does not cancel but is available in the second year.
82.29    Subd. 37. Statewide concurrent enrollment teacher training program. For the
82.30statewide concurrent enrollment teacher training program under Laws 2016, chapter 189,
82.31article 25, section 58, as amended:
83.1
$
375,000
.....
2018
83.2
$
375,000
.....
2019
83.3Any balance in the first year does not cancel but is available in the second year.

83.4    Sec. 56. REPEALER.
83.5Minnesota Statutes 2016, sections 122A.40, subdivision 11; and 122A.41, subdivision
83.614, are repealed effective July 1, 2018.

83.7ARTICLE 3
83.8TEACHERS

83.9    Sec. 1. [122A.627] POSITIVE BEHAVIORAL INTERVENTIONS AND SUPPORTS.
83.10"Positive behavioral interventions and supports" or "PBIS" means an evidence-based
83.11framework for preventing problem behavior, providing instruction and support for positive
83.12and prosocial behaviors, and supporting social, emotional, and behavioral needs for all
83.13students. Schoolwide implementation of PBIS requires training, coaching, and evaluation
83.14for school staff to consistently implement the key components that make PBIS effective for
83.15all students, including:
83.16(1) establishing, defining, teaching, and practicing three to five positively stated
83.17schoolwide behavioral expectations that are representative of the local community and
83.18cultures;
83.19(2) developing and implementing a consistent system used by all staff to provide positive
83.20feedback and acknowledgment for students who display schoolwide behavioral expectations;
83.21(3) developing and implementing a consistent and specialized support system for students
83.22who do not display behaviors representative of schoolwide positive expectations;
83.23(4) developing a system to support decisions based on data related to student progress,
83.24effective implementation of behavioral practices, and screening for students requiring
83.25additional behavior supports;
83.26(5) using a continuum of evidence-based interventions that is integrated and aligned to
83.27support academic and behavioral success for all students; and
83.28(6) using a team-based approach to support effective implementation, monitor progress,
83.29and evaluate outcomes.
83.30Consistent with section 120B.232, subdivision 1, character education curriculum and
83.31programs may be used to support implementation of the key components of PBIS.

84.1ARTICLE 4
84.2SPECIAL EDUCATION

84.3    Section 1. Minnesota Statutes 2016, section 125A.0941, is amended to read:
84.4125A.0941 DEFINITIONS.
84.5(a) The following terms have the meanings given them.
84.6(b) "Emergency" means a situation where immediate intervention is needed to protect
84.7a child or other individual from physical injury. Emergency does not mean circumstances
84.8such as: a child who does not respond to a task or request and instead places his or her head
84.9on a desk or hides under a desk or table; a child who does not respond to a staff person's
84.10request unless failing to respond would result in physical injury to the child or other
84.11individual; or an emergency incident has already occurred and no threat of physical injury
84.12currently exists.
84.13(c) "Physical holding" means physical intervention intended to hold a child immobile
84.14or limit a child's movement, where body contact is the only source of physical restraint, and
84.15where immobilization is used to effectively gain control of a child in order to protect a child
84.16or other individual from physical injury. The term physical holding does not mean physical
84.17contact that:
84.18(1) helps a child respond or complete a task;
84.19(2) assists a child without restricting the child's movement;
84.20(3) is needed to administer an authorized health-related service or procedure; or
84.21(4) is needed to physically escort a child when the child does not resist or the child's
84.22resistance is minimal.
84.23(d) "Positive behavioral interventions and supports" means interventions and strategies
84.24to improve the school environment and teach children the skills to behave appropriately,
84.25including the key components under section 122A.627.
84.26(e) "Prone restraint" means placing a child in a face down position.
84.27(f) "Restrictive procedures" means the use of physical holding or seclusion in an
84.28emergency. Restrictive procedures must not be used to punish or otherwise discipline a
84.29child.
84.30(g) "Seclusion" means confining a child alone in a room from which egress is barred.
84.31Egress may be barred by an adult locking or closing the door in the room or preventing the
85.1child from leaving the room. Removing a child from an activity to a location where the
85.2child cannot participate in or observe the activity is not seclusion.

85.3    Sec. 2. Minnesota Statutes 2016, section 125A.11, subdivision 1, is amended to read:
85.4    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and later,
85.5when a school district provides special instruction and services for a pupil with a disability
85.6as defined in section 125A.02 outside the district of residence, excluding a pupil for whom
85.7an adjustment to special education aid is calculated according to section 127A.47, subdivision
85.87
, paragraphs (b) to (d), special education aid paid to the resident district must be reduced
85.9by an amount equal to (1) the actual cost of providing special instruction and services to
85.10the pupil, including a proportionate amount for special transportation, plus (2) the amount
85.11of general education revenue, excluding local optional revenue, plus local optional aid and
85.12referendum equalization aid attributable to that pupil, calculated using the resident district's
85.13average general education revenue and referendum equalization aid per adjusted pupil unit
85.14excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue,
85.15minus (3) the amount of special education aid for children with a disability under section
85.16125A.76 received on behalf of that child, minus (4) if the pupil receives special instruction
85.17and services outside the regular classroom for more than 60 percent of the school day, the
85.18amount of general education revenue and referendum equalization aid, excluding portions
85.19attributable to district and school administration, district support services, operations and
85.20maintenance, capital expenditures, and pupil transportation, attributable to that pupil for
85.21the portion of time the pupil receives special instruction and services outside of the regular
85.22classroom, calculated using the resident district's average general education revenue and
85.23referendum equalization aid per adjusted pupil unit excluding basic skills revenue, elementary
85.24sparsity revenue and secondary sparsity revenue and the serving district's basic skills revenue,
85.25elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit.
85.26Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a fiscal
85.27agent school district, the general education revenue and referendum equalization aid
85.28attributable to a pupil must be calculated using the resident district's average general
85.29education revenue and referendum equalization aid excluding compensatory revenue,
85.30elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid to
85.31the district or cooperative providing special instruction and services for the pupil must be
85.32increased by the amount of the reduction in the aid paid to the resident district. If the resident
85.33district's special education aid is insufficient to make the full adjustment, the remaining
85.34adjustment shall be made to other state aid due to the district.
86.1    (b) Notwithstanding paragraph (a), when a charter school receiving special education
86.2aid under section 124E.21, subdivision 3, provides special instruction and services for a
86.3pupil with a disability as defined in section 125A.02, excluding a pupil for whom an
86.4adjustment to special education aid is calculated according to section 127A.47, subdivision
86.57
, paragraphs (b) to (e), special education aid paid to the resident district must be reduced
86.6by an amount equal to that calculated under paragraph (a) as if the charter school received
86.7aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education
86.8aid paid to the charter school providing special instruction and services for the pupil must
86.9not be increased by the amount of the reduction in the aid paid to the resident district.
86.10    (c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs (b)
86.11to (d):
86.12    (1) an intermediate district or a special education cooperative may recover unreimbursed
86.13costs of serving pupils with a disability, including building lease, debt service, and indirect
86.14costs necessary for the general operation of the organization, by billing membership fees
86.15and nonmember access fees to the resident district;
86.16    (2) a charter school where more than 30 percent of enrolled students receive special
86.17education and related services, a site approved under section 125A.515, an intermediate
86.18district, a site constructed according to Laws 1992, chapter 558, section 7, subdivision 7,
86.19to meet the educational needs of court-placed adolescents, or a special education cooperative
86.20may apply to the commissioner for authority to charge the resident district an additional
86.21amount to recover any remaining unreimbursed costs of serving pupils with a disability;
86.22    (3) the billing under clause (1) or application under clause (2) must include a description
86.23of the costs and the calculations used to determine the unreimbursed portion to be charged
86.24to the resident district. Amounts approved by the commissioner under clause (2) must be
86.25included in the aid adjustments under paragraph (a), or section 127A.47, subdivision 7,
86.26paragraphs (b) to (d), as applicable.
86.27    (d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph (b),
86.28"general education revenue and referendum equalization aid" means the sum of the general
86.29education revenue according to section 126C.10, subdivision 1, excluding the local optional
86.30levy according to section 126C.10, subdivision 2e, paragraph (c), plus the referendum
86.31equalization aid according to section 126C.17, subdivision 7.
86.32EFFECTIVE DATE.This section is effective the day following final enactment.

87.1    Sec. 3. Minnesota Statutes 2016, section 125A.21, subdivision 2, is amended to read:
87.2    Subd. 2. Third-party reimbursement. (a) Beginning July 1, 2000, districts shall seek
87.3reimbursement from insurers and similar third parties for the cost of services provided by
87.4the district whenever the services provided by the district are otherwise covered by the
87.5child's health coverage. Districts shall request, but may not require, the child's family to
87.6provide information about the child's health coverage when a child with a disability begins
87.7to receive services from the district of a type that may be reimbursable, and shall request,
87.8but may not require, updated information after that as needed.
87.9(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
87.10under chapter 256L who have no other health coverage, a district shall provide an initial
87.11and annual written notice to the enrolled child's parent or legal representative of its intent
87.12to seek reimbursement from medical assistance or MinnesotaCare for:
87.13(1) the evaluations required as part of the individualized education program process or
87.14individualized family service plan process; and
87.15(2) health-related services provided by the district according to the individualized
87.16education program or individualized family service plan.
87.17The initial notice must give the child's parent or legal representative the right to request a
87.18copy of the child's education records on the health-related services that the district provided
87.19to the child and disclosed to a third-party payer.
87.20(c) The district shall give the parent or legal representative annual written notice of:
87.21(1) the district's intent to seek reimbursement from medical assistance or MinnesotaCare
87.22for evaluations required as part of the individualized education program process or
87.23individualized family service plan process, and for health-related services provided by the
87.24district according to the individualized education program or individualized family service
87.25plan;
87.26(2) the right of the parent or legal representative to request a copy of all records
87.27concerning individualized education program or individualized family service plan
87.28health-related services disclosed by the district to any third party; and
87.29(3) the right of the parent or legal representative to withdraw consent for disclosure of
87.30a child's records at any time without consequence.
87.31The written notice shall be provided as part of the written notice required by Code of Federal
87.32Regulations, title 34, section 300.504 or 303.520. The district must ensure that the parent
88.1of a child with a disability is given notice, in understandable language, of federal and state
88.2procedural safeguards available to the parent under this paragraph and paragraph (b).
88.3(d) In order to access the private health care coverage of a child who is covered by private
88.4health care coverage in whole or in part, a district must:
88.5(1) obtain annual written informed consent from the parent or legal representative, in
88.6compliance with subdivision 5; and
88.7(2) inform the parent or legal representative that a refusal to permit the district or state
88.8Medicaid agency to access their private health care coverage does not relieve the district of
88.9its responsibility to provide all services necessary to provide free and appropriate public
88.10education at no cost to the parent or legal representative.
88.11(e) If the commissioner of human services obtains federal approval to exempt covered
88.12individualized education program or individualized family service plan health-related
88.13services from the requirement that private health care coverage refuse payment before
88.14medical assistance may be billed, paragraphs (b), (c), and (d) shall also apply to students
88.15with a combination of private health care coverage and health care coverage through medical
88.16assistance or MinnesotaCare.
88.17(f) In the event that Congress or any federal agency or the Minnesota legislature or any
88.18state agency establishes lifetime limits, limits for any health care services, cost-sharing
88.19provisions, or otherwise provides that individualized education program or individualized
88.20family service plan health-related services impact benefits for persons enrolled in medical
88.21assistance or MinnesotaCare, the amendments to this subdivision adopted in 2002 are
88.22repealed on the effective date of any federal or state law or regulation that imposes the
88.23limits. In that event, districts must obtain informed consent consistent with this subdivision
88.24as it existed prior to the 2002 amendments and subdivision 5, before seeking reimbursement
88.25for children enrolled in medical assistance under chapter 256B or MinnesotaCare under
88.26chapter 256L who have no other health care coverage.
88.27EFFECTIVE DATE.This section is effective August 1, 2017.

88.28    Sec. 4. Minnesota Statutes 2016, section 125A.515, is amended to read:
88.29125A.515 PLACEMENT OF STUDENTS; APPROVAL OF EDUCATION
88.30PROGRAM.
88.31    Subdivision 1. Approval of on-site education programs. The commissioner shall
88.32approve on-site education programs for placement of children and youth in residential
88.33facilities including detention centers, before being licensed by the Department of Human
89.1Services or the Department of Corrections. Education programs in these facilities shall
89.2conform to state and federal education laws including the Individuals with Disabilities
89.3Education Act (IDEA). This section applies only to placements in children's residential
89.4facilities licensed by the Department of Human Services or the Department of Corrections.
89.5For purposes of this section, "on-site education program" means the educational services
89.6provided directly on the grounds of the care and treatment children's residential facility to
89.7children and youth placed for care and treatment.
89.8    Subd. 3. Responsibilities for providing education. (a) The district in which the children's
89.9residential facility is located must provide education services, including special education
89.10if eligible, to all students placed in a facility.
89.11(b) For education programs operated by the Department of Corrections, the providing
89.12district shall be the Department of Corrections. For students remanded to the commissioner
89.13of corrections, the providing and resident district shall be the Department of Corrections.
89.14    Subd. 3a. Students without a disability from other states. A school district is not
89.15required to provide education services under this section to a student who:
89.16(1) is not a resident of Minnesota;
89.17(2) does not have an individualized education program; and
89.18(3) does not have a tuition arrangement or agreement to pay the cost of education from
89.19the placing authority.
89.20    Subd. 4. Education services required. (a) Education services must be provided to a
89.21student beginning within three business days after the student enters the care and treatment
89.22children's residential facility. The first four days of the student's placement may be used to
89.23screen the student for educational and safety issues.
89.24(b) If the student does not meet the eligibility criteria for special education, regular
89.25education services must be provided to that student.
89.26    Subd. 5. Education programs for students placed in children's residential facilities.
89.27(a) When a student is placed in a children's residential facility approved under this section
89.28that has an on-site education program, the providing district, upon notice from the care and
89.29treatment children's residential facility, must contact the resident district within one business
89.30day to determine if a student has been identified as having a disability, and to request at
89.31least the student's transcript, and for students with disabilities, the most recent individualized
89.32education program (IEP) and evaluation report, and to determine if the student has been
90.1identified as a student with a disability. The resident district must send a facsimile copy to
90.2the providing district within two business days of receiving the request.
90.3(b) If a student placed under this section has been identified as having a disability and
90.4has an individualized education program in the resident district:
90.5(1) the providing agency must conduct an individualized education program meeting to
90.6reach an agreement about continuing or modifying special education services in accordance
90.7with the current individualized education program goals and objectives and to determine if
90.8additional evaluations are necessary; and
90.9(2) at least the following people shall receive written notice or documented phone call
90.10to be followed with written notice to attend the individualized education program meeting:
90.11(i) the person or agency placing the student;
90.12(ii) the resident district;
90.13(iii) the appropriate teachers and related services staff from the providing district;
90.14(iv) appropriate staff from the children's residential facility;
90.15(v) the parents or legal guardians of the student; and
90.16(vi) when appropriate, the student.
90.17(c) For a student who has not been identified as a student with a disability, a screening
90.18must be conducted by the providing districts as soon as possible to determine the student's
90.19educational and behavioral needs and must include a review of the student's educational
90.20records.
90.21    Subd. 6. Exit report summarizing educational progress. If a student has been placed
90.22in a facility under this section for 15 or more business days, the providing district must
90.23prepare an exit report summarizing the regular education, special education, evaluation,
90.24educational progress, and service information and must send the report to the resident district
90.25and the next providing district if different, the parent or legal guardian, and any appropriate
90.26social service agency. For students with disabilities, this report must include the student's
90.27IEP.
90.28    Subd. 7. Minimum educational services required. When a student is placed in a
90.29children's residential facility approved under this section, at a minimum, the providing
90.30district is responsible for:
90.31(1) the education necessary, including summer school services, for a student who is not
90.32performing at grade level as indicated in the education record or IEP; and
91.1(2) a school day, of the same length as the school day of the providing district, unless
91.2the unique needs of the student, as documented through the IEP or education record in
91.3consultation with treatment providers, requires an alteration in the length of the school day.
91.4    Subd. 8. Placement, services, and due process. When a student's treatment and
91.5educational needs allow, education shall be provided in a regular educational setting. The
91.6determination of the amount and site of integrated services must be a joint decision between
91.7the student's parents or legal guardians and the treatment and education staff. When
91.8applicable, educational placement decisions must be made by the IEP team of the providing
91.9district. Educational services shall be provided in conformance with the least restrictive
91.10environment principle of the Individuals with Disabilities Education Act. The providing
91.11district and care and treatment children's residential facility shall cooperatively develop
91.12discipline and behavior management procedures to be used in emergency situations that
91.13comply with the Minnesota Pupil Fair Dismissal Act and other relevant state and federal
91.14laws and regulations.
91.15    Subd. 9. Reimbursement for education services. (a) Education services provided to
91.16students who have been placed under this section are reimbursable in accordance with
91.17special education and general education statutes.
91.18(b) Indirect or consultative services provided in conjunction with regular education
91.19prereferral interventions and assessment provided to regular education students suspected
91.20of being disabled and who have demonstrated learning or behavioral problems in a screening
91.21are reimbursable with special education categorical aids.
91.22(c) Regular education, including screening, provided to students with or without
91.23disabilities is not reimbursable with special education categorical aids.
91.24    Subd. 10. Students unable to attend school but not covered under this section.
91.25Students who are absent from, or predicted to be absent from, school for 15 consecutive or
91.26intermittent days, and placed at home or in facilities not licensed by the Departments of
91.27Corrections or Human Services are entitled to regular and special education services
91.28consistent with this section or Minnesota Rules, part 3525.2325. These students include
91.29students with and without disabilities who are home due to accident or illness, in a hospital
91.30or other medical facility, or in a day treatment center.

91.31    Sec. 5. Minnesota Statutes 2016, section 125A.74, subdivision 1, is amended to read:
91.32    Subdivision 1. Eligibility. A district may enroll as a provider in the medical assistance
91.33program and receive medical assistance payments for covered evaluations and special
92.1education services provided to persons eligible for medical assistance under chapter 256B.
92.2To receive medical assistance payments, the district must pay the nonfederal share of medical
92.3assistance services provided according to section 256B.0625, subdivision 26, and comply
92.4with relevant provisions of state and federal statutes and regulations governing the medical
92.5assistance program.
92.6EFFECTIVE DATE.This section is effective August 1, 2017.

92.7    Sec. 6. Minnesota Statutes 2016, section 125A.76, subdivision 2c, is amended to read:
92.8    Subd. 2c. Special education aid. (a) For fiscal year 2016 and later, a district's special
92.9education aid equals the sum of the district's special education initial aid under subdivision
92.102a and the district's excess cost aid under section 125A.79, subdivision 5.
92.11(b) Notwithstanding paragraph (a), for fiscal year 2016, the special education aid for a
92.12school district must not exceed the sum of the special education aid the district would have
92.13received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79,
92.14as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision
92.157
, and the product of the district's average daily membership served and the special education
92.16aid increase limit.
92.17(c) Notwithstanding paragraph (a), for fiscal year 2017 and later, the special education
92.18aid for a school district must not exceed the sum of: (i) the product of the district's average
92.19daily membership served and the special education aid increase limit and (ii) the product
92.20of the sum of the special education aid the district would have received for fiscal year 2016
92.21under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to
92.22Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the
92.23district's average daily membership served for the current fiscal year to the district's average
92.24daily membership served for fiscal year 2016, and the program growth factor.
92.25(d) Notwithstanding paragraph (a), for fiscal year 2016 and later the special education
92.26aid for a school district, not including a charter school or cooperative unit as defined in
92.27section 123A.24, must not be less than the lesser of (1) the district's nonfederal special
92.28education expenditures for that fiscal year or (2) the product of the sum of the special
92.29education aid the district would have received for fiscal year 2016 under Minnesota Statutes
92.302012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012,
92.31sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted daily
92.32membership for the current fiscal year to the district's average daily membership for fiscal
92.33year 2016, and the program growth factor.
93.1(e) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first year
93.2of operation shall generate special education aid based on current year data. A newly formed
93.3cooperative unit as defined in section 123A.24 may apply to the commissioner for approval
93.4to generate special education aid for its first year of operation based on current year data,
93.5with an offsetting adjustment to the prior year data used to calculate aid for programs at
93.6participating school districts or previous cooperatives that were replaced by the new
93.7cooperative. The department shall establish procedures to adjust the prior year data and
93.8fiscal year 2016 old formula aid used in calculating special education aid to exclude costs
93.9that have been eliminated for districts where programs have closed or where a substantial
93.10portion of the program has been transferred to a cooperative unit.
93.11(f) The department shall establish procedures through the uniform financial accounting
93.12and reporting system to identify and track all revenues generated from third-party billings
93.13as special education revenue at the school district level; include revenue generated from
93.14third-party billings as special education revenue in the annual cross-subsidy report; and
93.15exclude third-party revenue from calculation of excess cost aid to the districts.
93.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2018 and later.

93.17    Sec. 7. Minnesota Statutes 2016, section 256B.0625, subdivision 26, is amended to read:
93.18    Subd. 26. Special education services. (a) Medical assistance covers evaluations necessary
93.19in making a determination for eligibility for individualized education program and
93.20individualized family service plan services and for medical services identified in a recipient's
93.21individualized education program and individualized family service plan and covered under
93.22the medical assistance state plan. Covered services include occupational therapy, physical
93.23therapy, speech-language therapy, clinical psychological services, nursing services, school
93.24psychological services, school social work services, personal care assistants serving as
93.25management aides, assistive technology devices, transportation services, health assessments,
93.26and other services covered under the medical assistance state plan. Mental health services
93.27eligible for medical assistance reimbursement must be provided or coordinated through a
93.28children's mental health collaborative where a collaborative exists if the child is included
93.29in the collaborative operational target population. The provision or coordination of services
93.30does not require that the individualized education program be developed by the collaborative.
93.31The services may be provided by a Minnesota school district that is enrolled as a medical
93.32assistance provider or its subcontractor, and only if the services meet all the requirements
93.33otherwise applicable if the service had been provided by a provider other than a school
93.34district, in the following areas: medical necessity, physician's orders, documentation,
94.1personnel qualifications, and prior authorization requirements. The nonfederal share of costs
94.2for services provided under this subdivision is the responsibility of the local school district
94.3as provided in section 125A.74. Services listed in a child's individualized education program
94.4are eligible for medical assistance reimbursement only if those services meet criteria for
94.5federal financial participation under the Medicaid program.
94.6(b) Approval of health-related services for inclusion in the individualized education
94.7program does not require prior authorization for purposes of reimbursement under this
94.8chapter. The commissioner may require physician review and approval of the plan not more
94.9than once annually or upon any modification of the individualized education program that
94.10reflects a change in health-related services.
94.11(c) Services of a speech-language pathologist provided under this section are covered
94.12notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person:
94.13(1) holds a masters degree in speech-language pathology;
94.14(2) is licensed by the Minnesota Board of Teaching as an educational speech-language
94.15pathologist; and
94.16(3) either has a certificate of clinical competence from the American Speech and Hearing
94.17Association, has completed the equivalent educational requirements and work experience
94.18necessary for the certificate or has completed the academic program and is acquiring
94.19supervised work experience to qualify for the certificate.
94.20(d) Medical assistance coverage for medically necessary services provided under other
94.21subdivisions in this section may not be denied solely on the basis that the same or similar
94.22services are covered under this subdivision.
94.23(e) The commissioner shall develop and implement package rates, bundled rates, or per
94.24diem rates for special education services under which separately covered services are grouped
94.25together and billed as a unit in order to reduce administrative complexity.
94.26(f) The commissioner shall develop a cost-based payment structure for payment of these
94.27services. Only costs reported through the designated Minnesota Department of Education
94.28data systems in distinct service categories qualify for inclusion in the cost-based payment
94.29structure. The commissioner shall reimburse claims submitted based on an interim rate, and
94.30shall settle at a final rate once the department has determined it. The commissioner shall
94.31notify the school district of the final rate. The school district has 60 days to appeal the final
94.32rate. To appeal the final rate, the school district shall file a written appeal request to the
94.33commissioner within 60 days of the date the final rate determination was mailed. The appeal
95.1request shall specify (1) the disputed items and (2) the name and address of the person to
95.2contact regarding the appeal.
95.3(g) Effective July 1, 2000, medical assistance services provided under an individualized
95.4education program or an individual family service plan by local school districts shall not
95.5count against medical assistance authorization thresholds for that child.
95.6(h) Nursing services as defined in section 148.171, subdivision 15, and provided as an
95.7individualized education program health-related service, are eligible for medical assistance
95.8payment if they are otherwise a covered service under the medical assistance program.
95.9Medical assistance covers the administration of prescription medications by a licensed nurse
95.10who is employed by or under contract with a school district when the administration of
95.11medications is identified in the child's individualized education program. The simple
95.12administration of medications alone is not covered under medical assistance when
95.13administered by a provider other than a school district or when it is not identified in the
95.14child's individualized education program.
95.15EFFECTIVE DATE.This section is effective August 1, 2017.

95.16    Sec. 8. Laws 2016, chapter 189, article 25, section 62, subdivision 17, is amended to read:
95.17    Subd. 17. Southwest Minnesota State University special education teacher education
95.18program. (a) For the Southwest Minnesota State University special education teacher
95.19education program to support Minnesota resident residents working toward licensure in an
95.20online program, including persons currently employed as:
95.21(1) special education paraprofessionals working toward licensure in an online program;
95.22(2) teachers without a special education license working on a variance; or
95.23(3) individuals teaching with a community expert license:
95.24
95.25
$
385,000
132,000
.....
2017
95.26
$
253,000
.....
2018
95.27(b) $253,000 of the $385,000 appropriation in Laws 2016, chapter 189, article 25, section
95.2862, subdivision 17, is canceled to the state general fund on June 30, 2017.
95.29The base for this program in fiscal year 2018 is $0. (c) The 2018 appropriation is available
95.30until June 30, 2019.
95.31EFFECTIVE DATE.This section is effective the day following final enactment.

96.1    Sec. 9. SPECIAL EDUCATION ASSISTIVE TECHNOLOGY STUDY.
96.2    Subdivision 1. Study. The commissioner of education must examine the use of assistive
96.3technology in Minnesota school districts. The commissioner may examine financial data,
96.4survey school officials, and use other methods to collect data on the use of assistive
96.5technology by Minnesota's students. The commissioner must consult with the Minnesota
96.6Assistive Technology Advisory Council and other interested organizations to determine the
96.7scope and focus of the study.
96.8    Subd. 2. Data reporting. The commissioner must examine the federally required uniform
96.9financial accounting and reporting standards object codes and, if necessary, recommend
96.10changes to better capture school district spending on assistive technology. The commissioner
96.11must examine approaches to collecting additional student-level assistive technology data
96.12through the electronic data reporting system.
96.13    Subd. 3. Assistive technology manual. The commissioner must examine the department's
96.14assistive technology manual, and determine whether to prepare a revised manual.
96.15    Subd. 4. Report. The commissioner of education must report to the chairs and ranking
96.16minority members of the legislative committees with jurisdiction over kindergarten through
96.17grade 12 education by February 15, 2018, on the use of assistive technology by Minnesota's
96.18students and recommend statutory changes to encourage individualized education programs
96.19and individualized family service plans to incorporate a child-centered assistive technology
96.20plan.

96.21    Sec. 10. APPROPRIATIONS.
96.22    Subdivision 1. Department of Education. The sums indicated in this section are
96.23appropriated from the general fund to the Department of Education for the fiscal years
96.24designated.
96.25    Subd. 2. Special education; regular. For special education aid under Minnesota Statutes,
96.26section 125A.75:
96.27
$
1,338,867,000
.....
2018
96.28
$
1,425,924,000
.....
2019
96.29The 2018 appropriation includes $156,403,000 for 2017 and $1,182,464,000 for 2018.
96.30The 2019 appropriation includes $131,384,000 for 2018 and $1,294,540,000 for 2019.
97.1    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, section
97.2125A.75, subdivision 3, for children with disabilities placed in residential facilities within
97.3the district boundaries for whom no district of residence can be determined:
97.4
$
1,597,000
.....
2018
97.5
$
1,830,000
.....
2019
97.6If the appropriation for either year is insufficient, the appropriation for the other year is
97.7available.
97.8    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
97.9services under Minnesota Statutes, section 125A.75, subdivision 1:
97.10
$
508,000
.....
2018
97.11
$
532,000
.....
2019
97.12The 2018 appropriation includes $48,000 for 2017 and $460,000 for 2018.
97.13The 2019 appropriation includes $51,000 for 2018 and $481,000 for 2019.
97.14    Subd. 5. Court-placed special education revenue. For reimbursing serving school
97.15districts for unreimbursed eligible expenditures attributable to children placed in the serving
97.16school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
97.17
$
46,000
.....
2018
97.18
$
47,000
.....
2019
97.19    Subd. 6. Special education out-of-state tuition. For special education out-of-state
97.20tuition under Minnesota Statutes, section 125A.79, subdivision 8:
97.21
$
250,000
.....
2018
97.22
$
250,000
.....
2019

97.23    Sec. 11. REPEALER.
97.24Minnesota Statutes 2016, sections 125A.75, subdivision 7; and 125A.76, subdivision
97.252b, are repealed effective for fiscal year 2018 and later.

97.26ARTICLE 5
97.27FACILITIES AND TECHNOLOGY

97.28    Section 1. Minnesota Statutes 2016, section 43A.08, subdivision 1, is amended to read:
97.29    Subdivision 1. Unclassified positions. Unclassified positions are held by employees
97.30who are:
97.31    (1) chosen by election or appointed to fill an elective office;
98.1    (2) heads of agencies required by law to be appointed by the governor or other elective
98.2officers, and the executive or administrative heads of departments, bureaus, divisions, and
98.3institutions specifically established by law in the unclassified service;
98.4    (3) deputy and assistant agency heads and one confidential secretary in the agencies
98.5listed in subdivision 1a and in the Office of Strategic and Long-Range Planning;
98.6    (4) the confidential secretary to each of the elective officers of this state and, for the
98.7secretary of state and state auditor, an additional deputy, clerk, or employee;
98.8    (5) intermittent help employed by the commissioner of public safety to assist in the
98.9issuance of vehicle licenses;
98.10    (6) employees in the offices of the governor and of the lieutenant governor and one
98.11confidential employee for the governor in the Office of the Adjutant General;
98.12    (7) employees of the Washington, D.C., office of the state of Minnesota;
98.13    (8) employees of the legislature and of legislative committees or commissions; provided
98.14that employees of the Legislative Audit Commission, except for the legislative auditor, the
98.15deputy legislative auditors, and their confidential secretaries, shall be employees in the
98.16classified service;
98.17    (9) presidents, vice-presidents, deans, other managers and professionals in academic
98.18and academic support programs, administrative or service faculty, teachers, research
98.19assistants, and student employees eligible under terms of the federal Economic Opportunity
98.20Act work study program in the Perpich Center for Arts Education and the Minnesota State
98.21Colleges and Universities, but not the custodial, clerical, or maintenance employees, or any
98.22professional or managerial employee performing duties in connection with the business
98.23administration of these institutions;
98.24    (10) officers and enlisted persons in the National Guard;
98.25    (11) attorneys, legal assistants, and three confidential employees appointed by the attorney
98.26general or employed with the attorney general's authorization;
98.27    (12) judges and all employees of the judicial branch, referees, receivers, jurors, and
98.28notaries public, except referees and adjusters employed by the Department of Labor and
98.29Industry;
98.30    (13) members of the State Patrol; provided that selection and appointment of State Patrol
98.31troopers must be made in accordance with applicable laws governing the classified service;
99.1    (14) examination monitors and intermittent training instructors employed by the
99.2Departments of Management and Budget and Commerce and by professional examining
99.3boards and intermittent staff employed by the technical colleges for the administration of
99.4practical skills tests and for the staging of instructional demonstrations;
99.5    (15) student workers;
99.6    (16) executive directors or executive secretaries appointed by and reporting to any
99.7policy-making board or commission established by statute;
99.8    (17) employees unclassified pursuant to other statutory authority;
99.9    (18) intermittent help employed by the commissioner of agriculture to perform duties
99.10relating to pesticides, fertilizer, and seed regulation;
99.11    (19) the administrators and the deputy administrators at the State Academies for the
99.12Deaf and the Blind; and
99.13    (20) chief executive officers in the Department of Human Services.
99.14EFFECTIVE DATE.This section is effective June 30, 2018.

99.15    Sec. 2. Minnesota Statutes 2016, section 43A.08, subdivision 1a, is amended to read:
99.16    Subd. 1a. Additional unclassified positions. Appointing authorities for the following
99.17agencies may designate additional unclassified positions according to this subdivision: the
99.18Departments of Administration; Agriculture; Commerce; Corrections; Education;
99.19Employment and Economic Development; Explore Minnesota Tourism; Management and
99.20Budget; Health; Human Rights; Labor and Industry; Natural Resources; Public Safety;
99.21Human Services; Revenue; Transportation; and Veterans Affairs; the Housing Finance and
99.22Pollution Control Agencies; the State Lottery; the State Board of Investment; the Office of
99.23Administrative Hearings; the Office of MN.IT Services; the Offices of the Attorney General,
99.24Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the
99.25Minnesota Office of Higher Education; the Perpich Center for Arts Education; and the
99.26Minnesota Zoological Board.
99.27A position designated by an appointing authority according to this subdivision must
99.28meet the following standards and criteria:
99.29(1) the designation of the position would not be contrary to other law relating specifically
99.30to that agency;
99.31(2) the person occupying the position would report directly to the agency head or deputy
99.32agency head and would be designated as part of the agency head's management team;
100.1(3) the duties of the position would involve significant discretion and substantial
100.2involvement in the development, interpretation, and implementation of agency policy;
100.3(4) the duties of the position would not require primarily personnel, accounting, or other
100.4technical expertise where continuity in the position would be important;
100.5(5) there would be a need for the person occupying the position to be accountable to,
100.6loyal to, and compatible with, the governor and the agency head, the employing statutory
100.7board or commission, or the employing constitutional officer;
100.8(6) the position would be at the level of division or bureau director or assistant to the
100.9agency head; and
100.10(7) the commissioner has approved the designation as being consistent with the standards
100.11and criteria in this subdivision.
100.12EFFECTIVE DATE.This section is effective June 30, 2018.

100.13    Sec. 3. [121A.335] LEAD IN SCHOOL DRINKING WATER.
100.14    Subdivision 1. Model plan. The commissioners of health and education shall jointly
100.15develop a model plan to require school districts to accurately and efficiently test for the
100.16presence of lead in water in public school buildings serving students in kindergarten through
100.17grade 12. To the extent possible, the commissioners shall base the plan on the standards
100.18established by the United States Environmental Protection Agency. The plan may be based
100.19on the technical guidance in the Department of Health's document, "Reducing Lead in
100.20Drinking Water: A Technical Guidance for Minnesota's School and Child Care Facilities."
100.21    Subd. 2. School plans. By July 1, 2018, the board of each school district or charter
100.22school must adopt the commissioners' model plan or develop and adopt an alternative plan
100.23to accurately and efficiently test for the presence of lead in water in school buildings serving
100.24prekindergarten students and students in kindergarten through grade 12.
100.25    Subd. 3. Frequency of testing. The plan under subdivision 2 must include a testing
100.26schedule for every building serving prekindergarten through grade 12 students. The schedule
100.27must require that each building be tested at least once every five years. A school district
100.28must begin testing school buildings by July 1, 2018, and complete testing of all buildings
100.29that serve students within five years.
100.30    Subd. 4. Ten-year facilities plan. A school district may include lead testing and
100.31remediation as a part of its ten-year facilities plan under section 123B.595.
101.1    Subd. 5. Reporting. A school district that has tested its buildings for the presence of
101.2lead shall make the results of the testing available to the public for review and must notify
101.3parents of the availability of the information.
101.4EFFECTIVE DATE.This section is effective July 1, 2017.

101.5    Sec. 4. Minnesota Statutes 2016, section 122A.416, is amended to read:
101.6122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE FOR
101.7PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT
101.8INTEGRATION COLLABORATIVES.
101.9Notwithstanding sections 122A.414, 122A.415, and 126C.10, multidistrict integration
101.10collaboratives and the Perpich Center for Arts Education are eligible to receive alternative
101.11teacher compensation revenue as if they were intermediate school districts. To qualify for
101.12alternative teacher compensation revenue, a multidistrict integration collaborative or the
101.13Perpich Center for Arts Education must meet all of the requirements of sections 122A.414
101.14and 122A.415 that apply to intermediate school districts, must report its enrollment as of
101.15October 1 of each year to the department, and must annually report its expenditures for the
101.16alternative teacher professional pay system consistent with the uniform financial accounting
101.17and reporting standards to the department by November 30 of each year.
101.18EFFECTIVE DATE.This section is effective June 30, 2018.

101.19    Sec. 5. Minnesota Statutes 2016, section 123A.30, subdivision 6, is amended to read:
101.20    Subd. 6. Severance pay. A district must pay severance pay to a teacher who is placed
101.21on unrequested leave of absence by the district as a result of the agreement. A teacher is
101.22eligible under this subdivision if the teacher:
101.23(1) is a teacher, but not a superintendent;
101.24(2) has a continuing contract with the district according to section 122A.40, subdivision
101.257
.
101.26The amount of severance pay must be equal to the teacher's salary for the school year
101.27during which the teacher was placed on unrequested leave of absence minus the gross
101.28amount the teacher was paid during the 12 months following the teacher's termination of
101.29salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching
101.30license, and minus the amount a teacher receives as severance or other similar pay according
101.31to a contract with the district or district policy. These entities requiring a valid Minnesota
101.32teaching license include, but are not limited to, the district that placed the teacher on
102.1unrequested leave of absence, another district in Minnesota, an education district, an
102.2intermediate school district, a service cooperative, a board formed under section 471.59, a
102.3state residential academy, the Perpich Center for Arts Education, a vocational center, or a
102.4special education cooperative. These entities do not include a district in another state, a
102.5Minnesota public postsecondary institution, or a state agency. Only amounts earned by the
102.6teacher as a substitute teacher or in a position requiring a valid Minnesota teaching license
102.7shall be subtracted. A teacher may decline any offer of employment as a teacher without
102.8loss of rights to severance pay.
102.9To determine the amount of severance pay that is due for the first six months following
102.10termination of the teacher's salary, the district may require the teacher to provide documented
102.11evidence of the teacher's employers and gross earnings during that period. The district must
102.12pay the teacher the amount of severance pay it determines to be due from the proceeds of
102.13the levy for this purpose. To determine the amount of severance pay that is due for the
102.14second six months of the 12 months following the termination of the teacher's salary, the
102.15district may require the teacher to provide documented evidence of the teacher's employers
102.16and gross earnings during that period. The district must pay the teacher the amount of
102.17severance pay it determines to be due from the proceeds of the levy for this purpose.
102.18A teacher who receives severance pay under this subdivision waives all further
102.19reinstatement rights under section 122A.40, subdivision 10 or 11. If the teacher receives
102.20severance pay, the teacher shall not receive credit for any years of service in the district
102.21paying severance pay prior to the year in which the teacher becomes eligible to receive
102.22severance pay.
102.23The severance pay is subject to section 465.72. The district may levy annually according
102.24to section 126C.43, for the severance pay.
102.25EFFECTIVE DATE.This section is effective June 30, 2018.

102.26    Sec. 6. Minnesota Statutes 2016, section 123A.73, subdivision 2, is amended to read:
102.27    Subd. 2. Involuntary Dissolution; referendum revenue. As of the effective date of
102.28the voluntary or involuntary dissolution of a district and its attachment to one or more
102.29existing districts pursuant to sections 123A.60 or 123A.64 to 123A.72, the authorization
102.30for any referendum revenue previously approved by the voters of the dissolved district in
102.31that district pursuant to section 126C.17, subdivision 9, or its predecessor or successor
102.32provision, is canceled. The authorization for any referendum revenue previously approved
102.33by the voters of a district to which all or part of the dissolved district is attached shall not
103.1be affected by the attachment and shall apply to the entire area of the district as enlarged
103.2by the attachment.
103.3EFFECTIVE DATE.This section is effective retroactively from January 1, 2017.

103.4    Sec. 7. Minnesota Statutes 2016, section 123B.595, subdivision 1, is amended to read:
103.5    Subdivision 1. Long-term facilities maintenance revenue. (a) For fiscal year 2017
103.6only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $193
103.7times the district's adjusted pupil units times the lesser of one or the ratio of the district's
103.8average building age to 35 years, plus the cost approved by the commissioner for indoor
103.9air quality, fire alarm and suppression, and asbestos abatement projects under section
103.10123B.57, subdivision 6 , with an estimated cost of $100,000 or more per site, plus (ii) for a
103.11school district with an approved voluntary prekindergarten program under section 124D.151,
103.12the cost approved by the commissioner for remodeling existing instructional space to
103.13accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would
103.14have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes
103.152014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school
103.16district with an approved voluntary prekindergarten program under section 124D.151, the
103.17cost approved by the commissioner for remodeling existing instructional space to
103.18accommodate prekindergarten instruction.
103.19(b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the greater
103.20of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser of one or
103.21the ratio of the district's average building age to 35 years, plus (ii) the cost approved by the
103.22commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement
103.23projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more
103.24per site, plus (iii) for a school district with an approved voluntary prekindergarten program
103.25under section 124D.151, the cost approved by the commissioner for remodeling existing
103.26instructional space to accommodate prekindergarten instruction, or (2) the sum of (i) the
103.27amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57,
103.28Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591,
103.29and (ii) for a school district with an approved voluntary prekindergarten program under
103.30section 124D.151, the cost approved by the commissioner for remodeling existing
103.31instructional space to accommodate prekindergarten instruction.
103.32(c) For fiscal year 2019 and later, long-term facilities maintenance revenue equals the
103.33greater of (1) the sum of (i) $380 times the district's adjusted pupil units times the lesser of
103.34one or the ratio of the district's average building age to 35 years, plus (ii) the cost approved
104.1by the commissioner for indoor air quality, fire alarm and suppression, and asbestos
104.2abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000
104.3or more per site, plus (iii) for a school district with an approved voluntary prekindergarten
104.4program under section 124D.151, the cost approved by the commissioner for remodeling
104.5existing instructional space to accommodate prekindergarten instruction, or (2) the sum of
104.6(i) the amount the district would have qualified for under Minnesota Statutes 2014, section
104.7123B.57 , Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section
104.8123B.591 , and (ii) for a school district with an approved voluntary prekindergarten program
104.9under section 124D.151, the cost approved by the commissioner for remodeling existing
104.10instructional space to accommodate prekindergarten instruction.
104.11(d) Notwithstanding paragraphs (a), (b), and (c), a school district that qualified for
104.12eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a),
104.13for fiscal year 2010 remains eligible for funding under this section as a district that would
104.14have qualified for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision
104.151, paragraph (a), for fiscal year 2017 and later.
104.16EFFECTIVE DATE.This section is effective the day following final enactment.

104.17    Sec. 8. Minnesota Statutes 2016, section 123B.595, subdivision 4, is amended to read:
104.18    Subd. 4. Facilities plans. (a) To qualify for revenue under this section, a school district
104.19or intermediate district, not including a charter school, must have a ten-year facility plan
104.20adopted by the school board and approved by the commissioner. The plan must include
104.21provisions for implementing a health and safety program that complies with health, safety,
104.22and environmental regulations and best practices, including indoor air quality management
104.23and remediation of lead hazards.
104.24(b) The district must annually update the plan, submit the plan to the commissioner for
104.25approval by July 31, and indicate whether the district will issue bonds to finance the plan
104.26or levy for the costs.
104.27    (c) For school districts issuing bonds to finance the plan, the plan must include a debt
104.28service schedule demonstrating that the debt service revenue required to pay the principal
104.29and interest on the bonds each year will not exceed the projected long-term facilities revenue
104.30for that year.
104.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2018 and later.

105.1    Sec. 9. Minnesota Statutes 2016, section 123B.71, subdivision 11, is amended to read:
105.2    Subd. 11. Review of proposals. In reviewing each proposal, the commissioner shall
105.3submit to the school board, within 60 days of receiving the proposal, the review and comment
105.4about the educational and economic advisability of the project. The commissioner must
105.5include comments from residents of the school district in the review and comment. The
105.6review and comment shall be based on information submitted with the proposal and other
105.7information the commissioner determines is necessary. If the commissioner submits a
105.8negative review and comment for a portion of a proposal, the review and comment shall
105.9clearly specify which portion of the proposal received a negative review and comment and
105.10which portion of the proposal received a positive review and comment.

105.11    Sec. 10. Minnesota Statutes 2016, section 123B.71, subdivision 12, is amended to read:
105.12    Subd. 12. Publication. (a) At least 20 days but not more than 60 days before a referendum
105.13for bonds or solicitation of bids for a project that has received a positive or unfavorable
105.14review and comment under section 123B.70, the school board shall publish a summary of
105.15the commissioner's review and comment of that project in the legal newspaper of the district.
105.16The school board must hold a public meeting to discuss the commissioner's review and
105.17comment before the referendum for bonds. Supplementary information shall be available
105.18to the public.
105.19(b) The publication requirement in paragraph (a) does not apply to alternative facilities
105.20projects approved under section 123B.59 123B.595.

105.21    Sec. 11. Minnesota Statutes 2016, section 124D.05, subdivision 3, is amended to read:
105.22    Subd. 3. Severance pay. A district must pay severance pay to a teacher who is placed
105.23on unrequested leave of absence by the district as a result of an agreement under this section.
105.24A teacher is eligible under this subdivision if the teacher:
105.25(1) is a teacher, as defined in section 122A.40, subdivision 1, but not a superintendent;
105.26(2) has a continuing contract with the district according to section 122A.40, subdivision
105.277
.
105.28The amount of severance pay must be equal to the teacher's salary for the school year
105.29during which the teacher was placed on unrequested leave of absence minus the gross
105.30amount the teacher was paid during the 12 months following the teacher's termination of
105.31salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching
105.32license, and minus the amount a teacher receives as severance or other similar pay according
106.1to a contract with the district or district policy. These entities include, but are not limited
106.2to, the district that placed the teacher on unrequested leave of absence, another district in
106.3Minnesota, an education district, an intermediate school district, a service cooperative, a
106.4board formed under section 471.59, a state residential academy, the Perpich Center for Arts
106.5Education, a vocational center, or a special education cooperative. These entities do not
106.6include a district in another state, a Minnesota public postsecondary institution, or a state
106.7agency. Only amounts earned by the teacher as a substitute teacher or in a position requiring
106.8a valid Minnesota teaching license shall be subtracted. A teacher may decline any offer of
106.9employment as a teacher without loss of rights to severance pay.
106.10To determine the amount of severance pay that is due for the first six months following
106.11termination of the teacher's salary, the district may require the teacher to provide documented
106.12evidence of the teacher's employers and gross earnings during that period. The district must
106.13pay the teacher the amount of severance pay it determines to be due from the proceeds of
106.14the levy for this purpose. To determine the amount of severance pay that is due for the
106.15second six months of the 12 months following the termination of the teacher's salary, the
106.16district may require the teacher to provide documented evidence of the teacher's employers
106.17and gross earnings during that period. The district must pay the teacher the amount of
106.18severance pay it determines to be due from the proceeds of the levy for this purpose.
106.19A teacher who receives severance pay under this subdivision waives all further
106.20reinstatement rights under section 122A.40, subdivision 10 or 11. If the teacher receives
106.21severance pay, the teacher must not receive credit for any years of service in the district
106.22paying severance pay prior to the year in which the teacher becomes eligible to receive
106.23severance pay.
106.24The severance pay is subject to section 465.72. The district may levy annually according
106.25to section 126C.43 for the severance pay.
106.26EFFECTIVE DATE.This section is effective June 30, 2018.

106.27    Sec. 12. [127A.155] LOLA AND RUDY PERPICH ARTS EDUCATION DIVISION.
106.28    Subdivision 1. Establishment of arts education division. The department must provide
106.29arts support services to school districts throughout Minnesota through the establishment of
106.30the Lola and Rudy Perpich arts education and outreach division.
106.31    Subd. 2. Division responsibilities. (a) The Perpich division must offer resources and
106.32outreach services statewide to enhance arts education opportunities for pupils in elementary
107.1and secondary school. The Perpich division must work with school districts across Minnesota
107.2to:
107.3(1) gather and conduct research in arts education;
107.4(2) develop exemplary curriculum, instructional practices, and assessments;
107.5(3) disseminate information regarding arts education opportunities; and
107.6(4) provide materials, training, and assistance to the arts education committees in school
107.7districts.
107.8(b) The Perpich division must collaborate with the commissioner of education to develop
107.9arts standards and strengthen state policies related to arts education.
107.10(c) The Perpich division must serve as liaison for the Department of Education to national
107.11organizations for arts education.
107.12(d) The commissioner may, on behalf of the Perpich division, apply for funds from
107.13public and private sources.
107.14EFFECTIVE DATE.This section is effective July 1, 2017.

107.15    Sec. 13. Minnesota Statutes 2016, section 297A.70, subdivision 2, is amended to read:
107.16    Subd. 2. Sales to government. (a) All sales, except those listed in paragraph (b), to the
107.17following governments and political subdivisions, or to the listed agencies or instrumentalities
107.18of governments and political subdivisions, are exempt:
107.19(1) the United States and its agencies and instrumentalities;
107.20(2) school districts, local governments, the University of Minnesota, state universities,
107.21community colleges, technical colleges, state academies, the Perpich Minnesota Center for
107.22Arts Education, and an instrumentality of a political subdivision that is accredited as an
107.23optional/special function school by the North Central Association of Colleges and Schools;
107.24(3) hospitals and nursing homes owned and operated by political subdivisions of the
107.25state of tangible personal property and taxable services used at or by hospitals and nursing
107.26homes;
107.27(4) notwithstanding paragraph (d), the sales and purchases by the Metropolitan Council
107.28of vehicles and repair parts to equip operations provided for in section 473.4051 are exempt
107.29through December 31, 2016;
107.30(5) other states or political subdivisions of other states, if the sale would be exempt from
107.31taxation if it occurred in that state; and
108.1(6) public libraries, public library systems, multicounty, multitype library systems as
108.2defined in section 134.001, county law libraries under chapter 134A, state agency libraries,
108.3the state library under section 480.09, and the Legislative Reference Library.
108.4(b) This exemption does not apply to the sales of the following products and services:
108.5(1) building, construction, or reconstruction materials purchased by a contractor or a
108.6subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
108.7maximum price covering both labor and materials for use in the construction, alteration, or
108.8repair of a building or facility;
108.9(2) construction materials purchased by tax exempt entities or their contractors to be
108.10used in constructing buildings or facilities which will not be used principally by the tax
108.11exempt entities;
108.12(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
108.13for leases entered into by the United States or its agencies or instrumentalities;
108.14(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
108.15and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
108.16subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic beverages
108.17purchased directly by the United States or its agencies or instrumentalities; or
108.18(5) goods or services purchased by a local government as inputs to a liquor store, gas
108.19or electric utility, solid waste hauling service, solid waste recycling service, landfill, golf
108.20course, marina, campground, cafe, or laundromat.
108.21(c) As used in this subdivision, "school districts" means public school entities and districts
108.22of every kind and nature organized under the laws of the state of Minnesota, and any
108.23instrumentality of a school district, as defined in section 471.59.
108.24(d) For purposes of the exemption granted under this subdivision, "local governments"
108.25has the following meaning:
108.26(1) for the period prior to January 1, 2017, local governments means statutory or home
108.27rule charter cities, counties, and townships; and
108.28(2) beginning January 1, 2017, local governments means statutory or home rule charter
108.29cities, counties, and townships; special districts as defined under section 6.465; any
108.30instrumentality of a statutory or home rule charter city, county, or township as defined in
108.31section 471.59; and any joint powers board or organization created under section 471.59.
108.32EFFECTIVE DATE.This section is effective June 30, 2018.

109.1    Sec. 14. Laws 2016, chapter 189, article 30, section 25, subdivision 5, is amended to read:
109.2    Subd. 5. Early repayment aid incentive. (a) For incentive grants for a district that
109.3repays the full outstanding original principal on its capital loan by November 30, 2016,
109.4under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by this
109.5act:
109.6
109.7
$
2,200,000
2,350,000
.....
2017
109.8(b) Of this amount, $150,000 is for a grant to Independent School District No. 36,
109.9Kelliher; $180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000
109.10is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to
109.11Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School
109.12District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682,
109.13Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central.
109.14(c) The grant may be used for any school-related purpose.
109.15(d) The base appropriation for 2022 is zero.
109.16EFFECTIVE DATE.This section is effective the day following final enactment.

109.17    Sec. 15. DISPOSITION OF CROSSWINDS SCHOOL; PROCEEDS OF SALE.
109.18(a) Notwithstanding the appropriation of state general obligation bond proceeds in Laws
109.191998, chapter 404, section 5, subdivision 5; Laws 1999, chapter 240, article 1, section 3;
109.20Laws 2000, chapter 492, article 1, section 5, subdivision 2; Laws 2001, First Special Session
109.21chapter 12, section 2, subdivision 2; and Laws 2005, chapter 20, article 1, section 5,
109.22subdivision 3, to acquire and better the Crosswinds school facilities by the Joint Powers
109.23District No. 6067, East Metro Integration District, in Woodbury, the Crosswinds school
109.24may be conveyed or sold by the commissioner of administration in accordance with
109.25Minnesota Statutes, sections 16B.281 to 16B.287.
109.26(b) As soon as practicable following July 1, 2017, and consistent with Minnesota Statutes,
109.27sections 16A.695 and 16B.281 to 16B.287, and constraints on the disposition of
109.28bond-financed property, the commissioner of administration shall offer the Crosswinds
109.29school property for sale. Before offering the Crosswinds school property for sale, the
109.30commissioner of administration must determine that the property is no longer needed to
109.31carry out the governmental program for which it was acquired or constructed.
109.32EFFECTIVE DATE.This section is effective July 1, 2017.

110.1    Sec. 16. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
110.2For the 2017-2018 school year only, for a school district or charter school enrolling
110.3pupils at the Crosswinds school, the Department of Education must calculate compensatory
110.4revenue, literacy aid, and alternative compensation revenue for the Crosswinds school based
110.5on the October 1, 2016, enrollment counts at that site.
110.6EFFECTIVE DATE.This section is effective July 1, 2017.

110.7    Sec. 17. PERPICH CENTER FOR ARTS EDUCATION CLOSURE.
110.8    Subdivision 1. Perpich Center for Arts Education abolished. (a) The Perpich Center
110.9for Arts Education (Perpich Center) is abolished effective June 30, 2018. Abolishment under
110.10this section does not reduce or otherwise limit the powers and authority of the Perpich Center
110.11during the concluding duration of its existence.
110.12(b) Notwithstanding any other law, any unexpended and unencumbered appropriations
110.13to the Perpich Center lapse to the fund or account from which they were appropriated on
110.14June 30, 2018. All money in a dedicated fund or account of the Perpich Center on June 30,
110.152018, must be transferred to the general fund.
110.16    Subd. 2. Library. All property in the Perpich Arts Library is transferred to the State
110.17Library Services Division of the Department of Education, in accordance with Minnesota
110.18Statutes, section 15.039, subdivisions 5 and 8, effective June 1, 2018.
110.19    Subd. 3. Student enrollment. Students enrolled in the Perpich Arts High School during
110.20the 2016-2017 school year may continue to enroll in that school for the 2017-2018 school
110.21year. No student may enroll in the Perpich Arts High School after the 2017-2018 school
110.22year.
110.23    Subd. 4. Education records. The Perpich Center must transfer the education records
110.24of each student of the Perpich Arts High School and Crosswinds school according to
110.25Minnesota Statutes, section 120A.22, subdivision 7.
110.26EFFECTIVE DATE.This section is effective the day following final enactment.

110.27    Sec. 18. APPROPRIATIONS.
110.28    Subdivision 1. Department of Education. The sums indicated in this section are
110.29appropriated from the general fund to the Department of Education for the fiscal years
110.30designated.
111.1    Subd. 2. Debt service equalization aid. For debt service equalization aid under
111.2Minnesota Statutes, section 123B.53, subdivision 6:
111.3
$
24,908,000
.....
2018
111.4
$
22,360,000
.....
2019
111.5The 2018 appropriation includes $2,324,000 for 2017 and $22,584,000 for 2018.
111.6The 2019 appropriation includes $2,509,000 for 2018 and $19,851,000 for 2019.
111.7    Subd. 3. Long-term facilities maintenance equalized aid. For long-term facilities
111.8maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:
111.9
$
80,121,000
.....
2018
111.10
$
103,397,000
.....
2019
111.11The 2018 appropriation includes $5,815,000 for 2017 and $74,306,000 for 2018.
111.12The 2019 appropriation includes $8,256,000 for 2018 and $95,141,000 for 2019.
111.13    Subd. 4. Equity in telecommunications access. For equity in telecommunications
111.14access:
111.15
$
3,750,000
.....
2018
111.16
$
3,750,000
.....
2019
111.17If the appropriation amount is insufficient, the commissioner shall reduce the
111.18reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
111.19revenue for fiscal years 2018 and 2019 shall be prorated.
111.20Any balance in the first year does not cancel but is available in the second year.
111.21    Subd. 5. Early repayment aid incentive. (a) For incentive grants for a district that
111.22repays the full outstanding original principal on its capital loan by November 30, 2016,
111.23under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by Laws
111.242016, chapter 189, article 30, section 22:
111.25
$
2,350,000
.....
2018
111.26
$
2,350,000
.....
2019
111.27(b) Of this amount, $150,000 is for a grant to Independent School District No. 36,
111.28Kelliher; $180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000
111.29is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to
111.30Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School
111.31District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682,
111.32Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central.
112.1(c) The grant may be used for any school-related purpose.
112.2(d) The base for 2022 is $0.

112.3    Sec. 19. REPEALER.
112.4(a) Minnesota Statutes 2016, section 123A.73, subdivision 3, is repealed retroactively
112.5from January 1, 2017.
112.6(b) Minnesota Statutes 2016, sections 129C.10, subdivision 5a; and 129C.30, are repealed
112.7effective July 1, 2017.
112.8(c) Minnesota Statutes 2016, sections 129C.10, subdivisions 1, 2, 3, 3a, 3b, 4, 4a, 6, 7,
112.9and 8; 129C.105; 129C.15; 129C.20; 129C.25; and 129C.26, and Minnesota Rules, parts
112.103600.0010, subparts 1, 2, 2a, 2b, 3, and 6; 3600.0020; 3600.0030, subparts 1, 2, 4, and 6;
112.113600.0045; 3600.0055; 3600.0065; 3600.0075; and 3600.0085, are repealed effective June
112.1230, 2018.

112.13ARTICLE 6
112.14NUTRITION

112.15    Section 1. Minnesota Statutes 2016, section 123B.52, subdivision 1, is amended to read:
112.16    Subdivision 1. Contracts. A contract for work or labor, or for the purchase of furniture,
112.17fixtures, or other property, except books registered under the copyright laws and information
112.18systems software, or for the construction or repair of school houses, the estimated cost or
112.19value of which shall exceed that specified in section 471.345, subdivision 3, must not be
112.20made by the school board without first advertising for bids or proposals by two weeks'
112.21published notice in the official newspaper. This notice must state the time and place of
112.22receiving bids and contain a brief description of the subject matter.
112.23    Additional publication in the official newspaper or elsewhere may be made as the board
112.24shall deem necessary.
112.25    After taking into consideration conformity with the specifications, terms of delivery,
112.26and other conditions imposed in the call for bids, every such contract for which a call for
112.27bids has been issued must be awarded to the lowest responsible bidder, be duly executed
112.28in writing, and be otherwise conditioned as required by law. The person to whom the contract
112.29is awarded shall give a sufficient bond to the board for its faithful performance.
112.30Notwithstanding section 574.26 or any other law to the contrary, on a contract limited to
112.31the purchase of a finished tangible product, a board may require, at its discretion, a
112.32performance bond of a contractor in the amount the board considers necessary. A record
113.1must be kept of all bids, with names of bidders and amount of bids, and with the successful
113.2bid indicated thereon. A bid containing an alteration or erasure of any price contained in
113.3the bid which is used in determining the lowest responsible bid must be rejected unless the
113.4alteration or erasure is corrected as provided in this section. An alteration or erasure may
113.5be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
113.6initialed in ink by the person signing the bid. In the case of identical low bids from two or
113.7more bidders, the board may, at its discretion, utilize negotiated procurement methods with
113.8the tied low bidders for that particular transaction, so long as the price paid does not exceed
113.9the low tied bid price. In the case where only a single bid is received, the board may, at its
113.10discretion, negotiate a mutually agreeable contract with the bidder so long as the price paid
113.11does not exceed the original bid. If no satisfactory bid is received, the board may readvertise.
113.12Standard requirement price contracts established for supplies or services to be purchased
113.13by the district must be established by competitive bids. Such standard requirement price
113.14contracts may contain escalation clauses and may provide for a negotiated price increase
113.15or decrease based upon a demonstrable industrywide or regional increase or decrease in the
113.16vendor's costs. Either party to the contract may request that the other party demonstrate
113.17such increase or decrease. The term of such contracts must not exceed two years with an
113.18option on the part of the district to renew for an additional two years, except as provided in
113.19subdivision 7. Contracts for the purchase of perishable food items, except milk for school
113.20lunches and vocational training programs, in any amount may be made by direct negotiation
113.21by obtaining two or more written quotations for the purchase or sale, when possible, without
113.22advertising for bids or otherwise complying with the requirements of this section or section
113.23471.345, subdivision 3 . All quotations obtained shall be kept on file for a period of at least
113.24one year after receipt.
113.25    Every contract made without compliance with the provisions of this section shall be
113.26void. Except in the case of the destruction of buildings or injury thereto, where the public
113.27interest would suffer by delay, contracts for repairs may be made without advertising for
113.28bids.
113.29EFFECTIVE DATE.This section is effective for contracts entered into on or after July
113.301, 2017.

113.31    Sec. 2. Minnesota Statutes 2016, section 123B.52, is amended by adding a subdivision to
113.32read:
113.33    Subd. 7. Food service contracts. A contract between a school board and a food service
113.34management company that complies with Code of Federal Regulations, title 7, section
114.1210.16, may be renewed annually after its initial term for not more than four additional
114.2years.
114.3EFFECTIVE DATE.This section is effective for contracts entered into on or after July
114.41, 2017.

114.5    Sec. 3. Minnesota Statutes 2016, section 124D.1158, subdivision 3, is amended to read:
114.6    Subd. 3. Program reimbursement. Each school year, the state must reimburse each
114.7participating school 30 cents for each reduced-price breakfast, 55 cents for each fully paid
114.8breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served
114.9to a prekindergarten student enrolled in an approved voluntary prekindergarten program
114.10under section 124D.151 or a kindergarten student.

114.11    Sec. 4. Minnesota Statutes 2016, section 124D.1158, subdivision 4, is amended to read:
114.12    Subd. 4. No fees. A school that receives school breakfast aid under this section must
114.13make breakfast available without charge to all participating students in grades 1 to 12 who
114.14qualify for free or reduced-price meals and to all prekindergarten students enrolled in an
114.15approved voluntary prekindergarten program under section 124D.151 and all kindergarten
114.16students.

114.17    Sec. 5. APPROPRIATIONS.
114.18    Subdivision 1. Department of Education. The sums indicated in this section are
114.19appropriated from the general fund to the Department of Education for the fiscal years
114.20designated.
114.21    Subd. 2. School lunch. For school lunch aid under Minnesota Statutes, section 124D.111,
114.22and Code of Federal Regulations, title 7, section 210.17:
114.23
$
16,670,000
.....
2018
114.24
$
17,172,000
.....
2019
114.25    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota Statutes,
114.26section 124D.1158:
114.27
$
10,511,000
.....
2018
114.28
$
11,269,000
.....
2019
114.29    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
114.30section 124D.118:
114.31
$
758,000
.....
2018
115.1
$
758,000
.....
2019
115.2    Subd. 5. Summer school food service replacement aid. For summer school food service
115.3replacement aid under Minnesota Statutes, section 124D.119:
115.4
$
150,000
.....
2018
115.5
$
150,000
.....
2019

115.6ARTICLE 7
115.7LIBRARIES

115.8    Section 1. Minnesota Statutes 2016, section 134.31, subdivision 2, is amended to read:
115.9    Subd. 2. Advice and instruction. The Department of Education shall give advice and
115.10instruction to the managers of any public library or to any governing body maintaining a
115.11library or empowered to do so by law upon any matter pertaining to the organization,
115.12maintenance, or administration of libraries. The department may also give advice and
115.13instruction, as requested, to postsecondary educational institutions, school districts or charter
115.14schools, state agencies, governmental units, nonprofit organizations, or private entities. It
115.15shall assist, to the extent possible, in the establishment and organization of library service
115.16in those areas where adequate services do not exist, and may aid in improving previously
115.17established library services. The department shall also provide assistance to school districts,
115.18regional library systems, and member libraries interested in offering joint library services
115.19at a single location.

115.20    Sec. 2. APPROPRIATIONS.
115.21    Subdivision 1. Department of Education. The sums indicated in this section are
115.22appropriated from the general fund to the Department of Education for the fiscal years
115.23designated.
115.24    Subd. 2. Basic system support. For basic system support aid under Minnesota Statutes,
115.25section 134.355:
115.26
$
13,570,000
.....
2018
115.27
$
13,570,000
.....
2019
115.28The 2018 appropriation includes $1,357,000 for 2017 and $12,213,000 for 2018.
115.29The 2019 appropriation includes $1,357,000 for 2018 and $12,213,000 for 2019.
115.30    Subd. 3. Multicounty, multitype library systems. For aid under Minnesota Statutes,
115.31sections 134.353 and 134.354, to multicounty, multitype library systems:
116.1
$
1,300,000
.....
2018
116.2
$
1,300,000
.....
2019
116.3The 2018 appropriation includes $130,000 for 2017 and $1,170,000 for 2018.
116.4The 2019 appropriation includes $130,000 for 2018 and $1,170,000 for 2019.
116.5    Subd. 4. Electronic library for Minnesota. For statewide licenses to online databases
116.6selected in cooperation with the Minnesota Office of Higher Education for school media
116.7centers, public libraries, state government agency libraries, and public or private college or
116.8university libraries:
116.9
$
900,000
.....
2018
116.10
$
900,000
.....
2019
116.11Any balance in the first year does not cancel but is available in the second year.
116.12    Subd. 5. Regional library telecommunications aid. For regional library
116.13telecommunications aid under Minnesota Statutes, section 134.355:
116.14
$
2,300,000
.....
2018
116.15
$
2,300,000
.....
2019
116.16The 2018 appropriation includes $230,000 for 2017 and $2,070,000 for 2018.
116.17The 2019 appropriation includes $230,000 for 2018 and $2,070,000 for 2019.

116.18ARTICLE 8
116.19EARLY CHILDHOOD AND FAMILY SUPPORT

116.20    Section 1. Minnesota Statutes 2016, section 124D.1158, subdivision 3, is amended to
116.21read:
116.22    Subd. 3. Program reimbursement. Each school year, the state must reimburse each
116.23participating school 30 cents for each reduced-price breakfast, 55 cents for each fully paid
116.24breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served
116.25to a prekindergarten student enrolled in an approved voluntary prekindergarten program
116.26under section 124D.151 or a kindergarten student.

116.27    Sec. 2. Minnesota Statutes 2016, section 124D.1158, subdivision 4, is amended to read:
116.28    Subd. 4. No fees. A school that receives school breakfast aid under this section must
116.29make breakfast available without charge to all participating students in grades 1 to 12 who
116.30qualify for free or reduced-price meals and to all prekindergarten students enrolled in an
117.1approved voluntary prekindergarten program under section 124D.151 and all kindergarten
117.2students.

117.3    Sec. 3. Minnesota Statutes 2016, section 124D.165, subdivision 1, is amended to read:
117.4    Subdivision 1. Establishment; purpose. There is established an early learning
117.5scholarships program in order to increase close the opportunity gap by increasing access to
117.6high-quality early childhood programs for children ages three to five.
117.7EFFECTIVE DATE.This section is effective July 1, 2017.

117.8    Sec. 4. Minnesota Statutes 2016, section 124D.165, subdivision 2, is amended to read:
117.9    Subd. 2. Family eligibility. (a) For a family to receive an early learning scholarship,
117.10parents or guardians must meet the following eligibility requirements:
117.11(1) have a an eligible child three or four years of age on September 1 of the current
117.12school year, who has not yet started kindergarten; and
117.13(2) have income equal to or less than 185 percent of federal poverty level income in the
117.14current calendar year, or be able to document their child's current participation in the free
117.15and reduced-price lunch program or child and adult care food program, National School
117.16Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution
117.17Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections
117.182011-2036; Head Start under the federal Improving Head Start for School Readiness Act
117.19of 2007; Minnesota family investment program under chapter 256J; child care assistance
117.20programs under chapter 119B; the supplemental nutrition assistance program; or placement
117.21in foster care under section 260C.212.
117.22(b) Notwithstanding the other provisions of this section, a parent under age 21 who is
117.23pursuing a high school or general education equivalency diploma is eligible for an early
117.24learning scholarship if the parent has a child age zero to five years old and meets the income
117.25eligibility guidelines in this subdivision.
117.26(c) Any siblings between the ages zero to (b) An "eligible child" means a child who has
117.27not yet enrolled in kindergarten and is:
117.28(1) at least three but not yet five years of age on September 1 of the current school year;
117.29(2) a sibling from birth to age five years old of a child who has been awarded a
117.30scholarship under this section must be awarded a scholarship upon request, provided the
117.31sibling attends the same program as long as funds are available;
118.1(3) the child of a parent under age 21 who is pursuing a high school degree or a course
118.2of study for a high school equivalency test; or
118.3(4) homeless, in foster care, or in need of child protective services.
118.4(d) (c) A child who has received a scholarship under this section must continue to receive
118.5a scholarship each year until that child is eligible for kindergarten under section 120A.20
118.6and as long as funds are available.
118.7(e) (d) Early learning scholarships may not be counted as earned income for the purposes
118.8of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota
118.9family investment program under chapter 256J, child care assistance programs under chapter
118.10119B, or Head Start under the federal Improving Head Start for School Readiness Act of
118.112007.
118.12(f) (e) A child from an adjoining state whose family resides at a Minnesota address as
118.13assigned by the United States Postal Service, who has received developmental screening
118.14under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district,
118.15and whose family meets the criteria of paragraph (a) is eligible for an early learning
118.16scholarship under this section.
118.17EFFECTIVE DATE.This section is effective July 1, 2017.

118.18    Sec. 5. Minnesota Statutes 2016, section 124D.165, subdivision 3, is amended to read:
118.19    Subd. 3. Administration. (a) The commissioner shall establish application timelines
118.20and determine the schedule for awarding scholarships that meets operational needs of eligible
118.21families and programs. The commissioner must give highest priority to applications from
118.22children who:
118.23(1) have a parent under age 21 who is pursuing a high school diploma or a course of
118.24study for a high school equivalency test;
118.25(2) are in foster care or otherwise in need of protection or services; or
118.26(3) have experienced homelessness in the last 24 months, as defined under the federal
118.27McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 11434a.
118.28The commissioner may prioritize applications on additional factors including family
118.29income, geographic location, and whether the child's family is on a waiting list for a publicly
118.30funded program providing early education or child care services.
118.31(b) For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000 per year
118.32for each eligible child. For fiscal year 2016 and later, The commissioner shall establish a
119.1target for the average scholarship amount per child based on the results of the rate survey
119.2conducted under section 119B.02.
119.3(c) A four-star rated program that has children eligible for a scholarship enrolled in or
119.4on a waiting list for a program beginning in July, August, or September may notify the
119.5commissioner, in the form and manner prescribed by the commissioner, each year of the
119.6program's desire to enhance program services or to serve more children than current funding
119.7provides. The commissioner may designate a predetermined number of scholarship slots
119.8for that program and notify the program of that number. For fiscal year 2018 and later, the
119.9statewide total number of scholarship slots directly designated by the commissioner must
119.10not exceed the number of scholarships awarded for fiscal year 2017. Beginning July 1, 2016,
119.11a school district or Head Start program qualifying under this paragraph may use its established
119.12registration process to enroll scholarship recipients and may verify a scholarship recipient's
119.13family income in the same manner as for other program participants.
119.14(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has not
119.15been accepted and subsequently enrolled in a rated program within ten months of the
119.16awarding of the scholarship, the scholarship cancels and the recipient must reapply in order
119.17to be eligible for another scholarship. A child may not be awarded more than one scholarship
119.18in a 12-month period.
119.19(e) A child who receives a scholarship who has not completed development screening
119.20under sections 121A.16 to 121A.19 must complete that screening within 90 days of first
119.21attending an eligible program.
119.22(f) For fiscal year 2017 and later, a school district or Head Start program enrolling
119.23scholarship recipients under paragraph (c) may apply to the commissioner, in the form and
119.24manner prescribed by the commissioner, for direct payment of state aid. Upon receipt of
119.25the application, the commissioner must pay each program directly for each approved
119.26scholarship recipient enrolled under paragraph (c) according to the metered payment system
119.27or another schedule established by the commissioner.

119.28    Sec. 6. Minnesota Statutes 2016, section 124D.165, subdivision 4, is amended to read:
119.29    Subd. 4. Early childhood program eligibility. (a) In order to be eligible to accept an
119.30early learning scholarship, a program must:
119.31(1) participate in the quality rating and improvement system under section 124D.142;
119.32and
120.1(2) beginning July 1, 2016 2022, have a three- or four-star rating in the quality rating
120.2and improvement system.
120.3(b) Any program accepting scholarships must use the revenue to supplement and not
120.4supplant federal funding.
120.5(c) Notwithstanding paragraph (a), all Minnesota early learning foundation scholarship
120.6program pilot sites are eligible to accept an early learning scholarship under this section.

120.7    Sec. 7. Minnesota Statutes 2016, section 124D.59, subdivision 2, is amended to read:
120.8    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten through
120.9grade 12 or a prekindergarten student enrolled in an approved voluntary prekindergarten
120.10program under section 124D.151 who meets the requirements under subdivision 2a or the
120.11following requirements:
120.12(1) the pupil, as declared by a parent or guardian first learned a language other than
120.13English, comes from a home where the language usually spoken is other than English, or
120.14usually speaks a language other than English; and
120.15(2) the pupil is determined by a valid assessment measuring the pupil's English language
120.16proficiency and by developmentally appropriate measures, which might include observations,
120.17teacher judgment, parent recommendations, or developmentally appropriate assessment
120.18instruments, to lack the necessary English skills to participate fully in academic classes
120.19taught in English.
120.20(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in the
120.21previous school year took a commissioner-provided assessment measuring the pupil's
120.22emerging academic English, shall be counted as an English learner in calculating English
120.23learner pupil units under section 126C.05, subdivision 17, and shall generate state English
120.24learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff
120.25score or is otherwise counted as a nonproficient participant on the assessment measuring
120.26the pupil's emerging academic English, or, in the judgment of the pupil's classroom teachers,
120.27consistent with section 124D.61, clause (1), the pupil is unable to demonstrate academic
120.28language proficiency in English, including oral academic language, sufficient to successfully
120.29and fully participate in the general core curriculum in the regular classroom.
120.30(c) Notwithstanding paragraphs (a) and (b), a pupil in prekindergarten under section
120.31124D.151 , kindergarten through grade 12 shall not be counted as an English learner in
120.32calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
120.33generate state English learner aid under section 124D.65, subdivision 5, if:
121.1(1) the pupil is not enrolled during the current fiscal year in an educational program for
121.2English learners under sections 124D.58 to 124D.64; or
121.3(2) the pupil has generated seven or more years of average daily membership in Minnesota
121.4public schools since July 1, 1996.

121.5    Sec. 8. Minnesota Statutes 2016, section 126C.05, subdivision 1, is amended to read:
121.6    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the age
121.7of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in
121.8average daily membership enrolled in the district of residence, in another district under
121.9sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
121.10chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22,
121.11123A.30 , 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03
121.12to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.
121.13    (a) A prekindergarten pupil with a disability who is enrolled in a program approved by
121.14the commissioner and has an individualized education program is counted as the ratio of
121.15the number of hours of assessment and education service to 825 times 1.0 with a minimum
121.16average daily membership of 0.28, but not more than 1.0 pupil unit.
121.17    (b) A prekindergarten pupil who is assessed but determined not to be disabled is counted
121.18as the ratio of the number of hours of assessment service to 825 times 1.0.
121.19    (c) A kindergarten pupil with a disability who is enrolled in a program approved by the
121.20commissioner is counted as the ratio of the number of hours of assessment and education
121.21services required in the fiscal year by the pupil's individualized education program to 875,
121.22but not more than one.
121.23(d) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled
121.24in an approved voluntary prekindergarten program under section 124D.151 is counted as
121.25the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil
121.26units.
121.27    (e) (d) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
121.28unit if the pupil is enrolled in a free all-day, every day kindergarten program available to
121.29all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
121.30section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day,
121.31every day kindergarten program available to all kindergarten pupils at the pupil's school.
121.32    (f) (e) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.
122.1    (g) (f) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.
122.2    (h) (g) A pupil who is in the postsecondary enrollment options program is counted as
122.31.2 pupil units.

122.4    Sec. 9. SCHOOL READINESS ADJUSTMENT.
122.5For fiscal year 2018 and later, a charter school's or a district's school readiness aid under
122.6Minnesota Statutes, section 124D.16, must be increased by an amount equal to the charter
122.7school's or district's total voluntary prekindergarten revenue for fiscal year 2017.
122.8Notwithstanding any other law, a charter school qualifying for revenue under this section
122.9is eligible for school readiness aid.

122.10    Sec. 10. APPROPRIATIONS.
122.11    Subdivision 1. Department of Education. The sums indicated in this section are
122.12appropriated from the general fund to the Department of Education for the fiscal years
122.13designated.
122.14    Subd. 2. School readiness. For revenue for school readiness programs under Minnesota
122.15Statutes, sections 124D.15 and 124D.16:
122.16
$
55,260,000
.....
2018
122.17
$
57,657,000
.....
2019
122.18The 2018 appropriation includes $3,368,000 for 2017 and $51,892,000 for 2018.
122.19The 2019 appropriation includes $5,765,000 for 2018 and $51,892,000 for 2019.
122.20    Subd. 3. Early learning scholarships. (a) For the early learning scholarship program
122.21under Minnesota Statutes, section 124D.165:
122.22
$
69,384,000
.....
2018
122.23
$
69,384,000
.....
2019
122.24(b) Of the amounts appropriated in paragraph (a), no more than the amount necessary
122.25to fund the same number of scholarship slots as were provided through the predetermined
122.26selection process for fiscal year 2017 may be awarded through that method.
122.27(c) Up to $950,000 each year is for administration of this program.
122.28(d) Any balance in the first year does not cancel but is available in the second year.
122.29(e) The base for fiscal year 2020 is $69,884,000.
123.1    Subd. 4. Head Start program. For Head Start programs under Minnesota Statutes,
123.2section 119A.52:
123.3
$
25,100,000
.....
2018
123.4
$
25,100,000
.....
2019
123.5    Subd. 5. Early childhood family education aid. For early childhood family education
123.6aid under Minnesota Statutes, section 124D.135:
123.7
$
30,175,000
.....
2018
123.8
$
31,474,000
.....
2019
123.9The 2018 appropriation includes $2,904,000 for 2017 and $27,271,000 for 2018.
123.10The 2019 appropriation includes $3,030,000 for 2018 and $28,444,000 for 2019.
123.11    Subd. 6. Developmental screening aid. For developmental screening aid under
123.12Minnesota Statutes, sections 121A.17 and 121A.19:
123.13
$
3,606,000
.....
2018
123.14
$
3,629,000
.....
2019
123.15The 2018 appropriation includes $358,000 for 2017 and $3,248,000 for 2018.
123.16The 2019 appropriation includes $360,000 for 2018 and $3,269,000 for 2019.
123.17    Subd. 7. Parent-child home program. For a grant to the parent-child home program:
123.18
$
900,000
.....
2018
123.19
$
900,000
.....
2019
123.20    The grant must be used for an evidence-based and research-validated early childhood
123.21literacy and school readiness program for children ages 16 months to four years at its existing
123.22suburban program location. The program must include urban and rural program locations
123.23for fiscal years 2018 and 2019.
123.24    The base for this program for fiscal year 2020 and later is $900,000.
123.25    Subd. 8. Kindergarten entrance assessment initiative and intervention program.
123.26For the kindergarten entrance assessment initiative and intervention program under Minnesota
123.27Statutes, section 124D.162:
123.28
$
281,000
.....
2018
123.29
$
281,000
.....
2019
123.30    Subd. 9. Quality rating and improvement system. (a) For transfer to the commissioner
123.31of human services for the purposes of expanding the quality rating and improvement system
124.1under Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports
124.2for providers participating in the quality rating and improvement system:
124.3
$
1,750,000
.....
2018
124.4
$
1,750,000
.....
2019
124.5(b) The amounts in paragraph (a) must be in addition to any federal funding under the
124.6child care and development block grant authorized under Public Law 101-508 in that year
124.7for the system under Minnesota Statutes, section 124D.142.
124.8(c) Any balance in the first year does not cancel but is available in the second year.
124.9(d) The base for this program in fiscal year 2020 and later is $1,750,000.
124.10    Subd. 10. Early childhood programs at tribal schools. For early childhood family
124.11education programs at tribal contract schools under Minnesota Statutes, section 124D.83,
124.12subdivision 4:
124.13
$
68,000
.....
2018
124.14
$
68,000
.....
2019
124.15    Subd. 11. Educate parents partnership. For the educate parents partnership under
124.16Minnesota Statutes, section 124D.129:
124.17
$
49,000
.....
2018
124.18
$
49,000
.....
2019
124.19    Subd. 12. Home visiting aid. For home visiting aid under Minnesota Statutes, section
124.20124D.135:
124.21
$
527,000
.....
2018
124.22
$
571,000
.....
2019
124.23The 2018 appropriation includes $0 for 2017 and $527,000 for 2018.
124.24The 2019 appropriation includes $58,000 for 2018 and $513,000 for 2019.

124.25    Sec. 11. REPEALER.
124.26Minnesota Statutes 2016, section 124D.151, is repealed.

124.27ARTICLE 9
124.28COMMUNITY EDUCATION AND PREVENTION

124.29    Section 1. [124D.99] EDUCATION PARTNERSHIPS COALITION FUND.
125.1    Subdivision 1. Program establishment. The commissioner of education shall establish
125.2a program supporting a coalition of coordinated, aligned education partnerships as specified
125.3in this section, for a comprehensive network of evidence-based support services designed
125.4to close opportunity gaps by improving educational and developmental outcomes of children
125.5and their families within communities experiencing poverty and impediments to economic
125.6viability.
125.7    Subd. 2. Definitions. (a) For purposes of this section the terms defined in this subdivision
125.8have the meanings given them.
125.9(b) "Tier 1 grant" means a sustaining grant for the ongoing operation, stability, and
125.10expansion of existing education partnership program locations.
125.11(c) "Tier 2 grant" means an implementation grant for expanding activity in education
125.12partnership program locations.
125.13    Subd. 3. Administration; design. (a) The commissioner shall establish program
125.14requirements, an application process and timeline for each tier of grants specified in
125.15subdivision 4, criteria for evaluation of applications, and a grant awards process. The
125.16commissioner's process must minimize administrative costs, minimize burdens for applicants
125.17and grant recipients, and provide a framework that permits flexibility in program design
125.18and implementation among grant recipients.
125.19(b) To the extent practicable, the commissioner shall design the program to align with
125.20programs implemented or proposed by organizations in Minnesota that:
125.21(1) identify and increase the capacity of organizations that are focused on achieving
125.22data-driven, locally controlled positive outcomes for children and youth throughout an entire
125.23neighborhood or geographic area through programs such as Strive Together, Promise
125.24Neighborhood, and the Education Partnerships Coalition members;
125.25(2) build a continuum of educational family and community supports with academically
125.26rigorous schools at the center;
125.27(3) maximize program efficiencies by integrating programmatic activities and eliminating
125.28administrative barriers;
125.29(4) develop local infrastructure needed to sustain and scale up proven and effective
125.30solutions beyond the initial neighborhood or geographic area; and
125.31(5) utilize appropriate outcome measures based on unique community needs and interests
125.32and apply rigorous evaluation on a periodic basis to be used to both monitor outcomes and
125.33allow for continuous improvements to systems.
126.1(c) A grant recipient's supportive services programming must address:
126.2(1) kindergarten readiness and youth development;
126.3(2) grade 3 reading proficiency;
126.4(3) high school graduation;
126.5(4) postsecondary educational attainment;
126.6(5) physical and mental health;
126.7(6) development of career skills and readiness;
126.8(7) parental engagement and development;
126.9(8) community engagement and programmatic alignment; and
126.10(9) reduction of remedial education.
126.11(d) The commissioner, in consultation with grant recipients, must:
126.12(1) develop and revise core indicators of progress toward outcomes specifying impacts
126.13for each tier identified under subdivision 4;
126.14(2) establish a reporting system for grant recipients to measure program outcomes using
126.15data sources and program goals; and
126.16(3) evaluate effectiveness based on the core indicators established by each partnership
126.17for each tier.
126.18    Subd. 4. Requirements. A grant recipient's program in the planning, development, or
126.19implementation phase must include:
126.20(1) integrated supportive services programming, as specified in paragraph (b), within a
126.21specific community or geographic area for all ages of children and youth and their families
126.22within that area, provided that services may be phased in to all ages over time; and
126.23(2) a system for evaluating goals and outcomes as provided under subdivision 3,
126.24paragraph (c).
126.25    Subd. 5. Grants. The commissioner shall award Tier 1 and Tier 2 grants to qualifying
126.26recipients that can demonstrate a nonstate source of funds, including in-kind contributions.
126.27    Subd. 6. Legislative report. By December 15 of each odd-numbered year, the
126.28commissioner shall submit a report on the education partnership program to the chairs and
126.29ranking minority members of the legislative committees having jurisdiction over kindergarten
126.30through grade 12 education, early childhood education, economic development, and human
127.1services. At a minimum, the report must summarize grantee activities, identify grant
127.2recipients and awards, analyze program performance measures and outcomes, and make
127.3any recommendations for legislative changes.
127.4EFFECTIVE DATE.This section is effective July 1, 2017, and subdivision 6 applies
127.5to reports due starting in calendar year 2019.

127.6    Sec. 2. APPROPRIATIONS.
127.7    Subdivision 1. Department of Education. The sums indicated in this section are
127.8appropriated from the general fund to the Department of Education for the fiscal years
127.9designated.
127.10    Subd. 2. Community education aid. For community education aid under Minnesota
127.11Statutes, section 124D.20:
127.12
$
483,000
.....
2018
127.13
$
393,000
.....
2019
127.14The 2018 appropriation includes $53,000 for 2017 and $430,000 for 2018.
127.15The 2019 appropriation includes $47,000 for 2018 and $346,000 for 2019.
127.16    Subd. 3. Adults with disabilities program aid. For adults with disabilities programs
127.17under Minnesota Statutes, section 124D.56:
127.18
$
710,000
.....
2018
127.19
$
710,000
.....
2019
127.20The 2018 appropriation includes $71,000 for 2017 and $639,000 for 2018.
127.21The 2019 appropriation includes $71,000 for 2018 and $639,000 for 2019.
127.22    Subd. 4. Hearing-impaired adults. For programs for hearing-impaired adults under
127.23Minnesota Statutes, section 124D.57:
127.24
$
70,000
.....
2018
127.25
$
70,000
.....
2019
127.26    Subd. 5. School-age care aid. For school-age care aid under Minnesota Statutes, section
127.27124D.22:
127.28
$
1,000
.....
2018
127.29
$
1,000
.....
2019
127.30The 2018 appropriation includes $0 for 2017 and $1,000 for 2018.
127.31The 2019 appropriation includes $0 for 2018 and $1,000 for 2019.
128.1    Subd. 6. Tier 1 grants. (a) For education partnership program Tier 1 sustaining grants
128.2under Minnesota Statutes, section 124D.99:
128.3
$
2,600,000
.....
2018
128.4
$
2,600,000
.....
2019
128.5(b) Of the amounts in paragraph (a), $1,300,000 each year is for the Northside
128.6Achievement Zone and $1,300,000 each year is for the St. Paul Promise Neighborhood.
128.7(c) The base funding for Tier 1 sustaining grants is $2,600,000.
128.8(d) Any balance in the first year does not cancel but is available in the second year.
128.9    Subd. 7. Tier 2 implementing grants. (a) For Tier 2 implementing grants under
128.10Minnesota Statutes, section 124D.99:
128.11
$
480,000
.....
2018
128.12
$
480,000
.....
2019
128.13(b) For fiscal years 2018 and 2019 only, $160,000 each year is for the Northfield Healthy
128.14Community Initiative in Northfield; $160,000 is for the Jones Family Foundation for the
128.15Every Hand Joined program in Red Wing; and $160,000 is for the United Way of Central
128.16Minnesota for the Partners for Student Success program.
128.17(c) The base funding for Tier 2 implementing grants is $480,000. The commissioner
128.18must competitively award all grants under this subdivision for fiscal year 2020 and later.
128.19(d) Any balance in the first year does not cancel but is available in the second year.

128.20ARTICLE 10
128.21SELF-SUFFICIENCY AND LIFELONG LEARNING

128.22    Section 1. Minnesota Statutes 2016, section 124D.52, subdivision 7, is amended to read:
128.23    Subd. 7. Performance tracking system. (a) By July 1, 2000, each approved adult basic
128.24education program must develop and implement a performance tracking system to provide
128.25information necessary to comply with federal law and serve as one means of assessing the
128.26effectiveness of adult basic education programs. For required reporting, longitudinal studies,
128.27and program improvement, the tracking system must be designed to collect data on the
128.28following core outcomes for learners, including English learners, who have completed
128.29participating in the adult basic education program:
128.30(1) demonstrated improvements in literacy skill levels in reading, writing, speaking the
128.31English language, numeracy, problem solving, English language acquisition, and other
128.32literacy skills;
129.1(2) placement in, retention in, or completion of postsecondary education, training,
129.2unsubsidized employment, or career advancement;
129.3(3) receipt of a secondary school diploma or its recognized equivalent; and
129.4(4) reduction in participation in the diversionary work program, Minnesota family
129.5investment program, and food support education and training program.
129.6(b) A district, group of districts, state agency, or private nonprofit organization providing
129.7an adult basic education program may meet this requirement by developing a tracking system
129.8based on either or both of the following methodologies:
129.9(1) conducting a reliable follow-up survey; or
129.10(2) submitting student information, including collected Social Security numbers for data
129.11matching.
129.12Data related to obtaining employment must be collected in the first quarter following
129.13program completion or can be collected while the student is enrolled, if known. Data related
129.14to employment retention must be collected in the third quarter following program exit. Data
129.15related to any other of the specified outcome outcomes may be collected at any time during
129.16a program year.
129.17(c) When a student in a program is requested to provide the student's Social Security
129.18number, the student must be notified in a written form easily understandable to the student
129.19that:
129.20(1) providing the Social Security number is optional and no adverse action may be taken
129.21against the student if the student chooses not to provide the Social Security number;
129.22(2) the request is made under section 124D.52, subdivision 7;
129.23(3) if the student provides the Social Security number, it will be used to assess the
129.24effectiveness of the program by tracking the student's subsequent career; and
129.25(4) the Social Security number will be shared with the Department of Education;
129.26Minnesota State Colleges and Universities; Office of Higher Education; Department of
129.27Human Services; and Department of Employment and Economic Development in order to
129.28accomplish the purposes described in paragraph (a) and will not be used for any other
129.29purpose or reported to any other governmental entities.
129.30(d) Annually a district, group of districts, state agency, or private nonprofit organization
129.31providing programs under this section must forward the tracking data collected to the
129.32Department of Education. For the purposes of longitudinal studies on the employment status
130.1of former students under this section, the Department of Education must forward the Social
130.2Security numbers to the Department of Employment and Economic Development to
130.3electronically match the Social Security numbers of former students with wage detail reports
130.4filed under section 268.044. The results of data matches must, for purposes of this section
130.5and consistent with the requirements of the United States Code, title 29, section 2871, of
130.6the Workforce Investment Act of 1998 Workforce Innovation and Opportunity Act, be
130.7compiled in a longitudinal form by the Department of Employment and Economic
130.8Development and released to the Department of Education in the form of summary data
130.9that does not identify the individual students. The Department of Education may release
130.10this summary data. State funding for adult basic education programs must not be based on
130.11the number or percentage of students who decline to provide their Social Security numbers
130.12or on whether the program is evaluated by means of a follow-up survey instead of data
130.13matching.

130.14    Sec. 2. Minnesota Statutes 2016, section 124D.549, is amended to read:
130.15124D.549 GENERAL EDUCATION DEVELOPMENT (GED) TESTS RULES;
130.16COMMISSIONER COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY
130.17TEST.
130.18The commissioner may amend rules to reflect changes in the national minimum standard
130.19score for passing the general education development (GED) tests, in consultation with adult
130.20basic education stakeholders, must select a high school equivalency test. The commissioner
130.21may issue a high school equivalency diploma to a Minnesota resident 19 years of age or
130.22older who has not earned a high school diploma, who has not previously been issued a
130.23general education development (GED) certification, and who has exceeded or achieved a
130.24minimum passing score on the equivalency test established by the publisher. The
130.25commissioner of education may waive the minimum age requirement if supportive evidence
130.26is provided by an employer or a recognized education or rehabilitation provider.

130.27    Sec. 3. Minnesota Statutes 2016, section 124D.55, is amended to read:
130.28124D.55 GENERAL EDUCATION DEVELOPMENT (GED)
130.29COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY TEST FEES.
130.30    The commissioner shall pay 60 percent of the fee that is charged to an eligible individual
130.31for the full battery of general education development (GED) the commissioner-selected
130.32high school equivalency tests, but not more than $40 for an eligible individual.
131.1For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged to
131.2an eligible individual for the full battery of general education development (GED) tests, but
131.3not more than the cost of one full battery of tests per year for any individual.

131.4    Sec. 4. Minnesota Statutes 2016, section 256J.08, subdivision 38, is amended to read:
131.5    Subd. 38. Full-time student. "Full-time student" means a person who is enrolled in a
131.6graded or ungraded primary, intermediate, secondary, GED commissioner of
131.7education-selected high school equivalency preparatory, trade, technical, vocational, or
131.8postsecondary school, and who meets the school's standard for full-time attendance.

131.9    Sec. 5. Minnesota Statutes 2016, section 256J.08, subdivision 39, is amended to read:
131.10    Subd. 39. General educational development or GED Commissioner of
131.11education-selected high school equivalency. "General educational development" or "GED"
131.12"Commissioner of education-selected high school equivalency" means the general educational
131.13development high school equivalency certification issued by the commissioner of education
131.14as an equivalent to a secondary school diploma under Minnesota Rules, part 3500.3100,
131.15subpart 4 section 124D.549.

131.16    Sec. 6. APPROPRIATIONS.
131.17    Subdivision 1. Department of Education. The sums indicated in this section are
131.18appropriated from the general fund to the Department of Education for the fiscal years
131.19designated.
131.20    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
131.21Statutes, section 124D.531:
131.22
$
50,010,000
.....
2018
131.23
$
51,497,000
.....
2019
131.24The 2018 appropriation includes $4,881,000 for 2017 and $45,129,000 for 2018.
131.25The 2019 appropriation includes $5,014,000 for 2018 and $46,483,000 for 2019.
131.26    Subd. 3. High school equivalency tests. For payment of 60 percent of the costs of the
131.27commissioner-selected high school equivalency tests under Minnesota Statutes, section
131.28124D.55:
131.29
$
125,000
.....
2018
131.30
$
125,000
.....
2019

132.1    Sec. 7. REVISOR'S INSTRUCTION.
132.2In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute the
132.3term "commissioner-selected high school equivalency" or similar term for "general education
132.4development," "GED," or similar terms for wherever the term refers to the tests or programs
132.5leading to a certification issued by the commissioner of education as an equivalency to a
132.6secondary diploma.

132.7    Sec. 8. REPEALER.
132.8Minnesota Rules, part 3500.3100, subpart 4, is repealed.

132.9ARTICLE 11
132.10STATE AGENCIES

132.11    Section 1. Minnesota Statutes 2016, section 122A.14, subdivision 9, is amended to read:
132.12    Subd. 9. Fee. Each person licensed by the Board of School Administrators shall pay
132.13the board a fee of $75, collected each fiscal year. When transmitting notice of the license
132.14fee, the board also must notify the licensee of the penalty for failing to pay the fee within
132.15the time specified by the board. The board may provide a lower fee for persons on retired
132.16or inactive status. After receiving notice from the board, any licensed school administrator
132.17who does not pay the fee in the given fiscal year shall have all administrative licenses held
132.18by the person automatically suspended, without the right to a hearing, until the fee has been
132.19paid to the board. If the board suspends a licensed school administrator for failing to pay
132.20the fee, it must immediately notify the district currently employing the school administrator
132.21of the school administrator's suspension. The executive secretary shall deposit the fees in
132.22the educator licensure account in the special revenue fund in the state treasury.
132.23EFFECTIVE DATE.This section is effective July 1, 2019.

132.24    Sec. 2. [122A.175] SPECIAL REVENUE FUND ACCOUNTS; EDUCATOR
132.25LICENSURE AND BACKGROUND CHECKS.
132.26    Subdivision 1. Educator licensure account. An educator licensure account is created
132.27in the special revenue fund. Applicant licensure fees received by the Department of
132.28Education, the Board of Teaching, or the Board of School Administrators must be deposited
132.29in the educator licensure account. Any funds appropriated from this account that remain
132.30unexpended at the end of the biennium cancel to the educator licensure account in the special
132.31revenue fund.
133.1    Subd. 2. Background check account. An educator licensure background check account
133.2is created in the special revenue fund. The Department of Education, the Board of Teaching,
133.3and the Board of School Administrators must deposit all payments submitted by license
133.4applicants for criminal background checks conducted by the Bureau of Criminal
133.5Apprehension in the educator licensure background check account. Amounts in the account
133.6are annually appropriated to the commissioner of education for payment to the superintendent
133.7of the Bureau of Criminal Apprehension for the costs of background checks on applicants
133.8for licensure.
133.9EFFECTIVE DATE.This section is effective July 1, 2019.

133.10    Sec. 3. Minnesota Statutes 2016, section 122A.18, subdivision 7c, is amended to read:
133.11    Subd. 7c. Temporary military license. The Board of Teaching shall establish a
133.12temporary license in accordance with section 197.4552 for teaching. The fee for a temporary
133.13license under this subdivision shall be $87.90 for an online application or $86.40 for a paper
133.14application. The board must deposit the fees received from applicants in the educator
133.15licensure account in the special revenue fund.
133.16EFFECTIVE DATE.This section is effective July 1, 2019.

133.17    Sec. 4. Minnesota Statutes 2016, section 122A.18, subdivision 8, is amended to read:
133.18    Subd. 8. Background checks. (a) The Board of Teaching and the commissioner of
133.19education must request a criminal history background check from the superintendent of the
133.20Bureau of Criminal Apprehension on all first-time teaching applicants for licenses under
133.21their jurisdiction. Applicants must include with their licensure applications:
133.22(1) an executed criminal history consent form, including fingerprints; and
133.23(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension
133.24for the fee for conducting payment to conduct the criminal history background check. The
133.25Board of Teaching and the commissioner of education must deposit payments received
133.26under this subdivision in the educator licensure background check account in the special
133.27revenue fund.
133.28(b) The superintendent of the Bureau of Criminal Apprehension shall perform the
133.29background check required under paragraph (a) by retrieving criminal history data as defined
133.30in section 13.87 and shall also conduct a search of the national criminal records repository.
133.31The superintendent is authorized to exchange fingerprints with the Federal Bureau of
133.32Investigation for purposes of the criminal history check. The superintendent shall recover
134.1the cost to the bureau of a background check through the fee charged to the applicant under
134.2paragraph (a).
134.3(c) The Board of Teaching or the commissioner of education may issue a license pending
134.4completion of a background check under this subdivision, but must notify the individual
134.5that the individual's license may be revoked based on the result of the background check.
134.6EFFECTIVE DATE.This section is effective July 1, 2019.

134.7    Sec. 5. Minnesota Statutes 2016, section 122A.21, subdivision 1, is amended to read:
134.8    Subdivision 1. Licensure applications. Each applicant submitting an application for
134.9the issuance, renewal, or extension of to the Board of Teaching to issue, renew, or extend
134.10a teaching license to teach, including applications for licensure via portfolio under subdivision
134.112, must be accompanied by include a processing fee of $57. The processing fee for a teacher's
134.12license and for the licenses of supervisory personnel must be paid to the executive secretary
134.13of the appropriate board and deposited in the educator licensure account in the special
134.14revenue fund. The executive secretary of the board shall deposit the fees with the
134.15commissioner of management and budget. The fees as set by the board are nonrefundable
134.16for applicants not qualifying for a license. However, a fee must be refunded by the
134.17commissioner of management and budget must refund a fee in any case in which the applicant
134.18already holds a valid unexpired license. The board may waive or reduce fees for applicants
134.19who apply at the same time for more than one license.
134.20EFFECTIVE DATE.This section is effective July 1, 2019.

134.21    Sec. 6. Minnesota Statutes 2016, section 122A.21, subdivision 2, is amended to read:
134.22    Subd. 2. Licensure via portfolio. (a) An eligible candidate may use licensure via portfolio
134.23to obtain a professional five-year teaching license or to add a licensure field, consistent with
134.24applicable Board of Teaching licensure rules.
134.25    (b) A candidate for a professional five-year teaching license must submit to the Educator
134.26Licensing Division at the department one portfolio demonstrating pedagogical competence
134.27and one portfolio demonstrating content competence.
134.28    (c) A candidate seeking to add a licensure field must submit to the Educator Licensing
134.29Division at the department one portfolio demonstrating content competence.
134.30    (d) The Board of Teaching must notify a candidate who submits a portfolio under
134.31paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not
134.32the portfolio was approved. If the portfolio was not approved, the board must immediately
135.1inform the candidate how to revise the portfolio to successfully demonstrate the requisite
135.2competence. The candidate may resubmit a revised portfolio at any time and the Educator
135.3Licensing Division at the department must approve or disapprove the portfolio within 60
135.4calendar days of receiving it.
135.5    (e) A candidate must pay to the executive secretary of the Board of Teaching a $300 fee
135.6for the first portfolio submitted for review and a $200 fee for any portfolio submitted
135.7subsequently. The revenue generated from Board of Teaching executive secretary must
135.8deposit the fee must be deposited in an education the educator licensure portfolio account
135.9in the special revenue fund. The fees set by the Board of Teaching are nonrefundable for
135.10applicants not qualifying for a license. The Board of Teaching may waive or reduce fees
135.11for candidates based on financial need.
135.12EFFECTIVE DATE.This section is effective July 1, 2019.

135.13    Sec. 7. Minnesota Statutes 2016, section 122A.21, is amended by adding a subdivision to
135.14read:
135.15    Subd. 3. Annual appropriations. (a) The amounts collected under subdivision 2 and
135.16deposited in the educator licensure account in the special revenue fund are annually
135.17appropriated to the Board of Teaching.
135.18(b) The appropriations in paragraph (a) must be reduced by the amount of any money
135.19specifically appropriated for the same purposes in any year from any state fund.
135.20EFFECTIVE DATE.This section is effective July 1, 2019.

135.21    Sec. 8. TRANSFERS.
135.22    Subdivision 1. Portfolio account. On July 1, 2019, the commissioner of management
135.23and budget shall transfer any balances in the educator licensure portfolio account in the
135.24special revenue fund to the educator licensure account in the special revenue fund.
135.25    Subd. 2. Background check. Any balance in an account that holds fees collected under
135.26Minnesota Statutes, section 122A.18, subdivision 8, is transferred to the educator licensure
135.27background check account in the special revenue fund under Minnesota Statutes, section
135.28122A.175, subdivision 2. On July 2, 2019, $80,000 is transferred from the educator licensure
135.29background check account in the special revenue fund to the educator licensure account in
135.30the special revenue fund.

136.1    Sec. 9. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
136.2    Subdivision 1. Department of Education. Unless otherwise indicated, the sums indicated
136.3in this section are appropriated from the general fund to the Department of Education for
136.4the fiscal years designated.
136.5    Subd. 2. Department. (a) For the Department of Education:
136.6
$
19,854,000
.....
2018
136.7
$
19,829,000
.....
2019
136.8Of these amounts:
136.9(1) $231,000 each year is for the Board of School Administrators. Beginning in fiscal
136.10year 2020, the amount indicated is appropriated from the educator licensure account in the
136.11special revenue fund;
136.12    (2) $123,000 each year is for a dyslexia specialist;
136.13(3) $200,000 each year is for the Lola and Rudy Perpich arts education and outreach
136.14division; and
136.15(4) $370,000 each year is for grants for arts integration and Turnaround Arts programs.
136.16The base for fiscal year 2020 is $0.
136.17(b) Any balance in the first year does not cancel but is available in the second year.
136.18(c) None of the amounts appropriated under this subdivision may be used for Minnesota's
136.19Washington, D.C. office.
136.20(d) The expenditures of federal grants and aids as shown in the biennial budget document
136.21and its supplements are approved and appropriated and shall be spent as indicated.
136.22(e) If H.F. 140 or a similarly styled bill transferring the Educator Licensing Division to
136.23the Board of Teaching is enacted, the fiscal year 2018 appropriation in paragraph (a) is
136.24reduced by $836,000 and the fiscal year 2019 appropriation in paragraph (a) is reduced by
136.25$845,000.
136.26(f) The agency's base in fiscal year 2020 is $19,228,000 and $19,228,000 in 2021.
136.27(g) Notwithstanding paragraph (f), if H.F. 140 or a similarly styled bill transferring the
136.28Educator Licensing Division to the Board of Teaching or its successor organization is
136.29enacted, the base in fiscal year 2020 is $18,294,000 and $18,205,000 in 2021.

137.1    Sec. 10. APPROPRIATIONS; BOARD OF TEACHING.
137.2    Subdivision 1. Board of Teaching. (a) The sums indicated in this section are appropriated
137.3from the general fund to the Board of Teaching or any successor organization for the fiscal
137.4years designated:
137.5
$
3,481,000
.....
2018
137.6
$
3,493,000
.....
2019
137.7(b) This appropriation includes funds for information technology project services and
137.8support subject to Minnesota Statutes, section 16E.0466. Any ongoing information
137.9technology costs will be incorporated into an interagency agreement and will be paid to the
137.10Office of MN.IT Services by the Board of Teaching under the mechanism specified in that
137.11agreement.
137.12(c) Of the amounts in paragraph (a), $2,513,000 in fiscal year 2018 and $2,525,000 in
137.13fiscal year 2019 are available only if H.F. 140 or a similarly styled bill is enacted.
137.14(d) Any balance in the first year does not cancel but is available in the second year.
137.15(e) The base for fiscal year 2020 is $968,000. This amount is increased by $1,766,000
137.16if H.F. 140 or a similarly styled bill is enacted. The base for fiscal year 2021 is $968,000.
137.17This amount is increased by $1,741,000 if H.F. 140 or a similarly styled bill is enacted.
137.18Beginning in fiscal year 2020, the amounts indicated are appropriated from the educator
137.19licensure account in the special revenue fund or, if the amount in the educator licensure
137.20account is insufficient, from the general fund to the Board of Teaching or any successor
137.21organization. If a successor organization is established, the Department of Administration
137.22must provide administrative support to the successor organization under Minnesota Statutes,
137.23section 16B.371. The commissioner of administration must assess the board for services
137.24provided under this section.
137.25    Subd. 2. Licensure by portfolio. For licensure by portfolio:
137.26
$
34,000
.....
2018
137.27
$
34,000
.....
2019
137.28    This appropriation is from the educator licensure portfolio account in the special revenue
137.29fund.

137.30    Sec. 11. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
137.31(a) The sums indicated in this section are appropriated from the general fund to the
137.32Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
138.1
$
13,204,000
.....
2018
138.2
$
13,186,000
.....
2019
138.3(b) Any balance in the first year does not cancel but is available in the second year.

138.4    Sec. 12. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
138.5(a) The sums in this section are appropriated from the general fund to the Perpich Center
138.6for Arts Education and to its successor fiscal agent for the fiscal years designated:
138.7
$
5,212,000
.....
2018
138.8
$
2,786,000
.....
2019
138.9(b) Of the amounts appropriated in paragraph (a), $162,000 in fiscal year 2018 and
138.10$361,000 in fiscal year 2019 are for transfer to the Department of Administration.
138.11(c) The base for fiscal year 2020 and later is $0.
138.12(d) Any balance in the first year does not cancel but is available in the second year.

138.13ARTICLE 12
138.14FORECAST ADJUSTMENTS
138.15A. GENERAL EDUCATION

138.16    Section 1. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision
138.172, as amended by Laws 2016, chapter 189, article 27, section 17, is amended to read:
138.18    Subd. 2. General education aid. For general education aid under Minnesota Statutes,
138.19section 126C.13, subdivision 4:
138.20
$
6,649,435,000
.....
2016
138.21
138.22
$
6,815,372,000
6,848,521,000
.....
2017
138.23The 2016 appropriation includes $622,908,000 for 2015 and 6,026,524,000 for 2016.
138.24The 2017 appropriation includes $641,412,000 for 2016 and $6,173,962,000
138.25$6,207,109,000 for 2017.
138.26EFFECTIVE DATE.This section is effective the day following final enactment.

139.1    Sec. 2. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 3, is
139.2amended to read:
139.3    Subd. 3. Enrollment options transportation. For transportation of pupils attending
139.4postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
139.5of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
139.6
$
39,000
.....
2016
139.7
139.8
$
42,000
26,000
.....
2017
139.9EFFECTIVE DATE.This section is effective the day following final enactment.

139.10    Sec. 3. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 4, as
139.11amended by Laws 2016, chapter 189, article 34, section 1, is amended to read:
139.12    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
139.13127A.49 :
139.14
$
3,051,000
.....
2016
139.15
139.16
$
3,425,000
2,666,000
.....
2017
139.17The 2016 appropriation includes $278,000 for 2015 and $2,773,000 for 2016.
139.18The 2017 appropriation includes $308,000 for 2016 and $3,117,000 $2,358,000 for
139.192017.
139.20EFFECTIVE DATE.This section is effective the day following final enactment.

139.21    Sec. 4. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 6, as
139.22amended by Laws 2016, chapter 189, article 34, section 3, is amended to read:
139.23    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
139.24Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
139.25
$
16,759,000
.....
2016
139.26
139.27
$
17,235,000
16,879,000
.....
2017
139.28The 2016 appropriation includes $1,575,000 for 2015 and $15,184,000 for 2016.
139.29The 2017 appropriation includes $1,687,000 for 2016 and $15,548,000 $15,192,000 for
139.302017.
139.31EFFECTIVE DATE.This section is effective the day following final enactment.

140.1    Sec. 5. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 7, as
140.2amended by Laws 2016, chapter 189, article 34, section 4, is amended to read:
140.3    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid under
140.4Minnesota Statutes, section 123B.92, subdivision 9:
140.5
$
17,673,000
.....
2016
140.6
140.7
$
18,103,000
18,278,000
.....
2017
140.8The 2016 appropriation includes $1,816,000 for 2015 and $15,857,000 for 2016.
140.9The 2017 appropriation includes $1,761,000 for 2016 and $16,342,000 $16,517,000 for
140.102017.
140.11EFFECTIVE DATE.This section is effective the day following final enactment.

140.12    Sec. 6. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 9, as
140.13amended by Laws 2016, chapter 189, article 34, section 5, is amended to read:
140.14    Subd. 9. Career and technical aid. For career and technical aid under Minnesota
140.15Statutes, section 124D.4531, subdivision 1b:
140.16
$
5,922,000
.....
2016
140.17
140.18
$
4,262,000
4,806,000
.....
2017
140.19The 2016 appropriation includes $574,000 for 2015 and $5,348,000 for 2016.
140.20The 2017 appropriation includes $517,000 for 2016 and $3,745,000 $4,289,000 for
140.212017.
140.22EFFECTIVE DATE.This section is effective the day following final enactment.
140.23B. EDUCATION EXCELLENCE

140.24    Sec. 7. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 2, as
140.25amended by Laws 2016, chapter 189, article 25, section 44, is amended to read:
140.26    Subd. 2. Alternative compensation. For alternative teacher compensation aid under
140.27Minnesota Statutes, section 122A.415, subdivision 4:
140.28
$
78,907,000
.....
2016
140.29
140.30
$
89,049,000
88,137,000
.....
2017
140.31The 2016 appropriation includes $7,766,000 for 2015 and $71,141,000 for 2016.
141.1The 2017 appropriation includes $7,876,000 for 2016 and $81,173,000 $80,261,000 for
141.22017.
141.3EFFECTIVE DATE.This section is effective the day following final enactment.

141.4    Sec. 8. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 3, as
141.5amended by Laws 2016, chapter 189, article 25, section 45, is amended to read:
141.6    Subd. 3. Achievement and integration aid. For achievement and integration aid under
141.7Minnesota Statutes, section 124D.862:
141.8
$
65,439,000
.....
2016
141.9
141.10
$
69,372,000
67,091,000
.....
2017
141.11The 2016 appropriation includes $6,382,000 for 2015 and $59,057,000 for 2016.
141.12The 2017 appropriation includes $6,561,000 for 2016 and $62,811,000 $60,530,000 for
141.132017.
141.14EFFECTIVE DATE.This section is effective the day following final enactment.

141.15    Sec. 9. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 4, as
141.16amended by Laws 2016, chapter 189, article 34, section 6, is amended to read:
141.17    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota Statutes,
141.18section 124D.98:
141.19
$
44,538,000
.....
2016
141.20
141.21
$
45,855,000
45,803,000
.....
2017
141.22The 2016 appropriation includes $4,683,000 for 2015 and $39,855,000 for 2016.
141.23The 2017 appropriation includes $4,428,000 for 2016 and $41,427,000 $41,375,000 for
141.242017.
141.25EFFECTIVE DATE.This section is effective the day following final enactment.

141.26    Sec. 10. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 5,
141.27as amended by Laws 2016, chapter 189, article 34, section 7, is amended to read:
141.28    Subd. 5. Interdistrict desegregation or integration transportation grants. For
141.29interdistrict desegregation or integration transportation grants under Minnesota Statutes,
141.30section 124D.87:
141.31
$
14,423,000
.....
2016
142.1
142.2
$
15,193,000
13,496,000
.....
2017
142.3EFFECTIVE DATE.This section is effective the day following final enactment.

142.4    Sec. 11. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 7,
142.5as amended by Laws 2016, chapter 189, article 34, section 8, is amended to read:
142.6    Subd. 7. Tribal contract schools. For tribal contract school aid under Minnesota Statutes,
142.7section 124D.83:
142.8
$
3,539,000
.....
2016
142.9
142.10
$
3,715,000
3,278,000
.....
2017
142.11The 2016 appropriation includes $204,000 for 2015 and $3,335,000 for 2016.
142.12The 2017 appropriation includes $370,000 for 2016 and $3,345,000 $2,908,000 for
142.132017.
142.14EFFECTIVE DATE.This section is effective the day following final enactment.

142.15    Sec. 12. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 11,
142.16as amended by Laws 2016, chapter 189, article 34, section 9, is amended to read:
142.17    Subd. 11. American Indian education aid. For American Indian education aid under
142.18Minnesota Statutes, section 124D.81, subdivision 2a:
142.19
$
7,740,000
.....
2016
142.20
142.21
$
8,878,000
8,838,000
.....
2017
142.22The 2016 appropriation includes $0 for 2015 and $7,740,000 for 2016.
142.23The 2017 appropriation includes $860,000 for 2016 and $8,018,000 $7,978,000 for
142.242017.
142.25EFFECTIVE DATE.This section is effective the day following final enactment.

142.26    Sec. 13. Laws 2015, First Special Session chapter 3, article 4, section 9, subdivision 2, as
142.27amended by Laws 2016, chapter 189, article 28, section 10, is amended to read:
142.28    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
142.29Statutes, section 124E.22:
142.30
$
63,540,000
.....
2016
142.31
142.32
$
70,132,000
68,046,000
.....
2017
143.1The 2016 appropriation includes $6,032,000 for 2015 and $57,508,000 for 2016.
143.2The 2017 appropriation includes $6,389,000 for 2016 and $63,743,000 $61,657,000 for
143.32017.
143.4EFFECTIVE DATE.This section is effective the day following final enactment.
143.5C. SPECIAL EDUCATION

143.6    Sec. 14. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 2,
143.7as amended by Laws 2016, chapter 189, article 29, section 15, is amended to read:
143.8    Subd. 2. Special education; regular. For special education aid under Minnesota Statutes,
143.9section 125A.75:
143.10
$
1,183,619,000
.....
2016
143.11
143.12
$
1,247,107,000
1,258,250,000
.....
2017
143.13The 2016 appropriation includes $137,932,000 for 2015 and $1,045,687,000 for 2016.
143.14The 2017 appropriation includes $147,202,000 for 2016 and $1,099,905,000
143.15$1,111,048,000 for 2017.
143.16EFFECTIVE DATE.This section is effective the day following final enactment.

143.17    Sec. 15. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 3,
143.18as amended by Laws 2016, chapter 189, article 34, section 10, is amended to read:
143.19    Subd. 3. Travel for home-based services. For aid for teacher travel for home-based
143.20services under Minnesota Statutes, section 125A.75, subdivision 1:
143.21
$
416,000
.....
2016
143.22
143.23
$
435,000
482,000
.....
2017
143.24The 2016 appropriation includes $35,000 for 2015 and $381,000 for 2016.
143.25The 2017 appropriation includes $42,000 for 2016 and $393,000 $440,000 for 2017.
143.26EFFECTIVE DATE.This section is effective the day following final enactment.

144.1    Sec. 16. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 5,
144.2as amended by Laws 2016, chapter 189, article 34, section 11, is amended to read:
144.3    Subd. 5. Aid for children with disabilities. For aid under Minnesota Statutes, section
144.4125A.75, subdivision 3 , for children with disabilities placed in residential facilities within
144.5the district boundaries for whom no district of residence can be determined:
144.6
$
1,307,000
.....
2016
144.7
144.8
$
1,516,000
1,390,000
.....
2017
144.9If the appropriation for either year is insufficient, the appropriation for the other year is
144.10available.
144.11EFFECTIVE DATE.This section is effective the day following final enactment.

144.12    Sec. 17. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 6,
144.13is amended to read:
144.14    Subd. 6. Court-placed special education revenue. For reimbursing serving school
144.15districts for unreimbursed eligible expenditures attributable to children placed in the serving
144.16school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
144.17
$
56,000
.....
2016
144.18
144.19
$
57,000
45,000
.....
2017
144.20EFFECTIVE DATE.This section is effective the day following final enactment.
144.21D. FACILITIES AND TECHNOLOGY

144.22    Sec. 18. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 2,
144.23as amended by Laws 2016, chapter 189, article 30, section 23, is amended to read:
144.24    Subd. 2. Long-term facilities maintenance equalization equalized aid. For long-term
144.25facilities maintenance equalization equalized aid under Minnesota Statutes, section 123B.595:
144.26
$
0
.....
2016
144.27
144.28
$
52,844,000
50,571,000
.....
2017
144.29The 2017 appropriation includes $0 for 2016 and $52,844,000 $50,571,000 for 2017.
144.30EFFECTIVE DATE.This section is effective the day following final enactment.

145.1    Sec. 19. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 3,
145.2as amended by Laws 2016, chapter 189, article 34, section 12, is amended to read:
145.3    Subd. 3. Debt service equalization. For debt service aid according to Minnesota Statutes,
145.4section 123B.53, subdivision 6:
145.5
$
20,349,000
.....
2016
145.6
145.7
$
22,926,000
20,406,000
.....
2017
145.8The 2016 appropriation includes $2,295,000 for 2015 and $18,054,000 for 2016.
145.9The 2017 appropriation includes $2,005,000 for 2016 and $20,921,000 $18,401,000 for
145.102017.
145.11EFFECTIVE DATE.This section is effective the day following final enactment.
145.12E. NUTRITION

145.13    Sec. 20. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 2, as
145.14amended by Laws 2016, chapter 189, article 27, section 18, is amended to read:
145.15    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, section
145.16124D.111 , and Code of Federal Regulations, title 7, section 210.17:
145.17
$
16,251,000
.....
2016
145.18
145.19
$
16,775,000
16,234,000
.....
2017
145.20EFFECTIVE DATE.This section is effective the day following final enactment.

145.21    Sec. 21. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 3, as
145.22amended by Laws 2016, chapter 189, article 27, section 19, is amended to read:
145.23    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota Statutes,
145.24section 124D.1158:
145.25
$
9,457,000
.....
2016
145.26
145.27
$
10,365,000
9,869,000
.....
2017
145.28EFFECTIVE DATE.This section is effective the day following final enactment.

146.1    Sec. 22. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 4, as
146.2amended by Laws 2016, chapter 189, article 34, section 15, is amended to read:
146.3    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
146.4section 124D.118:
146.5
$
788,000
.....
2016
146.6
146.7
$
788,000
758,000
.....
2017
146.8EFFECTIVE DATE.This section is effective the day following final enactment.
146.9F. EARLY CHILDHOOD EDUCATION

146.10    Sec. 23. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 5, as
146.11amended by Laws 2016, chapter 189, article 34, section 16, is amended to read:
146.12    Subd. 5. Early childhood family education aid. For early childhood family education
146.13aid under Minnesota Statutes, section 124D.135:
146.14
$
27,948,000
.....
2016
146.15
146.16
$
29,336,000
28,944,000
.....
2017
146.17The 2016 appropriation includes $2,713,000 for 2015 and $25,235,000 for 2016.
146.18The 2017 appropriation includes $2,803,000 for 2016 and $26,533,000 $26,141,000 for
146.192017.
146.20EFFECTIVE DATE.This section is effective the day following final enactment.

146.21    Sec. 24. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 6, as
146.22amended by Laws 2016, chapter 189, article 34, section 17, is amended to read:
146.23    Subd. 6. Developmental screening aid. For developmental screening aid under
146.24Minnesota Statutes, sections 121A.17 and 121A.19:
146.25
$
3,477,000
.....
2016
146.26
146.27
$
3,488,000
3,573,000
.....
2017
146.28The 2016 appropriation includes $338,000 for 2015 and $3,139,000 for 2016.
146.29The 2017 appropriation includes $348,000 for 2016 and $3,140,000 $3,225,000 for
146.302017.
146.31EFFECTIVE DATE.This section is effective the day following final enactment.

147.1    Sec. 25. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 2,
147.2as amended by Laws 2016, chapter 189, article 34, section 18, is amended to read:
147.3    Subd. 2. Community education aid. For community education aid under Minnesota
147.4Statutes, section 124D.20:
147.5
$
790,000
.....
2016
147.6
147.7
$
553,000
555,000
.....
2017
147.8The 2016 appropriation includes $107,000 for 2015 and $683,000 for 2016.
147.9The 2017 appropriation includes $75,000 for 2016 and $478,000 $480,000 for 2017.
147.10EFFECTIVE DATE.This section is effective the day following final enactment.
147.11G. SELF-SUFFICIENCY AND LIFELONG LEARNING

147.12    Sec. 26. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 2,
147.13as amended by Laws 2016, chapter 189, article 34, section 19, is amended to read:
147.14    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
147.15Statutes, section 124D.531:
147.16
$
48,231,000
.....
2016
147.17
147.18
$
49,683,000
48,762,000
.....
2017
147.19The 2016 appropriation includes $4,782,000 for 2015 and $43,449,000 for 2016.
147.20The 2017 appropriation includes $4,827,000 for 2016 and $44,856,000 $43,935,000 for
147.212017.
147.22EFFECTIVE DATE.This section is effective the day following final enactment."
147.23Delete the title and insert:
147.24"A bill for an act
147.25relating to education finance; providing funding in early childhood, kindergarten
147.26through grade 12, and adult education, including general education, education
147.27excellence, teachers, special education, facilities and technology, nutrition, libraries,
147.28early childhood and family support, community education and prevention,
147.29self-sufficiency and lifelong learning, and state agencies; making forecast
147.30adjustments; requiring a report; appropriating money;amending Minnesota Statutes
147.312016, sections 43A.08, subdivisions 1, 1a; 120A.22, subdivision 9; 120A.41;
147.32120B.021, subdivisions 1, 3; 120B.022, subdivision 1b; 120B.12, subdivisions 2,
147.332a, 3; 120B.125; 120B.132; 120B.22, subdivision 2; 120B.23, subdivision 3;
147.34120B.232, subdivision 1; 120B.30, subdivision 1; 120B.31, subdivision 4, by
147.35adding a subdivision; 120B.35, subdivision 3; 120B.36, subdivision 1; 121A.22,
147.36subdivision 2; 121A.221; 122A.14, subdivision 9; 122A.18, subdivisions 7c, 8;
147.37122A.21, subdivisions 1, 2, by adding a subdivision; 122A.40, subdivision 10;
147.38122A.41, by adding a subdivision; 122A.414, subdivision 2; 122A.415, subdivision
148.14; 122A.416; 123A.30, subdivision 6; 123A.73, subdivision 2; 123B.41,
148.2subdivisions 2, 5a; 123B.52, subdivision 1, by adding a subdivision; 123B.595,
148.3subdivisions 1, 4; 123B.71, subdivisions 11, 12; 123B.92, subdivision 1; 124D.03,
148.4subdivision 5a; 124D.05, subdivision 3; 124D.09, subdivisions 3, 5, 10, 12, 13,
148.5by adding subdivisions; 124D.1158, subdivisions 3, 4; 124D.165, subdivisions 1,
148.62, 3, 4; 124D.52, subdivision 7; 124D.549; 124D.55; 124D.59, subdivision 2;
148.7124D.68, subdivision 2; 124D.695; 124E.03, subdivision 2; 124E.05, subdivision
148.87; 124E.11; 124E.22; 125A.0941; 125A.11, subdivision 1; 125A.21, subdivision
148.92; 125A.515; 125A.56, subdivision 1; 125A.74, subdivision 1; 125A.76, subdivision
148.102c; 126C.05, subdivisions 1, 8; 126C.10, subdivisions 2, 2a, 3, 13a, by adding a
148.11subdivision; 126C.17, subdivision 9; 127A.45, subdivision 10; 134.31, subdivision
148.122; 136A.1791, subdivisions 1, 2, 9; 256B.0625, subdivision 26; 256J.08,
148.13subdivisions 38, 39; 297A.70, subdivision 2; Laws 2015, First Special Session
148.14chapter 3, article 1, section 27, subdivisions 2, as amended, 3, 4, as amended, 6,
148.15as amended, 7, as amended, 9, as amended; article 2, section 70, subdivisions 2,
148.16as amended, 3, as amended, 4, as amended, 5, as amended, 7, as amended, 11, as
148.17amended; article 4, section 9, subdivision 2, as amended; article 5, section 30,
148.18subdivisions 2, as amended, 3, as amended, 5, as amended, 6; article 6, section 13,
148.19subdivisions 2, as amended, 3, as amended; article 7, section 7, subdivisions 2, as
148.20amended, 3, as amended, 4, as amended; article 9, section 8, subdivisions 5, as
148.21amended, 6, as amended; article 10, section 3, subdivision 2, as amended; article
148.2211, section 3, subdivision 2, as amended; Laws 2016, chapter 189, article 25,
148.23sections 58; 62, subdivisions 7, 11, 17; article 30, section 25, subdivision 5;
148.24proposing coding for new law in Minnesota Statutes, chapters 120A; 120B; 121A;
148.25122A; 124D; 127A; 136A; repealing Minnesota Statutes 2016, sections 122A.40,
148.26subdivision 11; 122A.41, subdivision 14; 123A.73, subdivision 3; 124D.151;
148.27124D.73, subdivision 2; 125A.75, subdivision 7; 125A.76, subdivision 2b; 129C.10,
148.28subdivisions 1, 2, 3, 3a, 3b, 4, 4a, 5a, 6, 7, 8; 129C.105; 129C.15; 129C.20;
148.29129C.25; 129C.26; 129C.30; Minnesota Rules, parts 3500.3100, subpart 4;
148.303600.0010, subparts 1, 2, 2a, 2b, 3, 6; 3600.0020; 3600.0030, subparts 1, 2, 4, 6;
148.313600.0045; 3600.0055; 3600.0065; 3600.0075; 3600.0085."
149.1
We request the adoption of this report and repassage of the bill.
149.2
House Conferees:
149.3
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149.4
Jenifer Loon
Sondra Erickson
149.5
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149.6
Peggy Bennett
Ron Kresha
149.7
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149.8
Mary Murphy
149.9
Senate Conferees:
149.10
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149.11
Carla J. Nelson
Eric R. Pratt
149.12
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149.13
Justin Eichorn
Bill Weber
149.14
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149.15
Charles W. Wiger

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569