SF 1030

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 02:46pm

A bill for an act
relating to education; providing for general education; education excellence;
special programs; facilities and technology; nutrition and accounting; libraries;
early childhood education; prevention; self-sufficiency and lifelong learning;
state agencies; and forecast adjustments; appropriating money; amending
Minnesota Statutes 2010, sections 11A.16, subdivision 5; 120A.22, subdivision
11; 120A.24; 120B.023, subdivision 2; 120B.07; 121A.15, subdivision 8;
122A.09, subdivision 4; 122A.18, subdivision 2; 122A.40, subdivisions 7, 9,
11, 13, 15, 16, by adding subdivisions; 122A.41, subdivisions 4, 14, by adding
a subdivision; 123B.42, subdivision 1; 123B.44, subdivision 1; 123B.54;
123B.57; 123B.63, subdivision 3; 123B.75, subdivision 5; 123B.88, by adding a
subdivision; 123B.92, subdivision 1; 124D.09, subdivisions 5, 7, 8; 124D.10,
subdivision 3; 124D.11, subdivision 4; 124D.36; 124D.37; 124D.38, subdivision
3; 124D.385, subdivision 3; 124D.39; 124D.40; 124D.42; 124D.44; 124D.45,
subdivision 2; 124D.4531, subdivision 1; 124D.531, subdivisions 1, 4; 124D.59,
subdivision 2; 125A.69, subdivision 1; 125A.76, subdivision 1; 125A.79,
subdivision 1; 126C.10, subdivisions 2, 3, 7, 8, 8a, 14, 18; 126C.126; 126C.20;
126C.40, subdivision 1; 126C.44; 127A.441; 127A.45, subdivisions 2, 6a;
127A.46; 134.195, subdivision 8; 171.05, subdivision 2; 171.17, subdivision 1;
171.22, subdivision 1; 181A.05, subdivision 1; Laws 1999, chapter 241, article
4, section 25, by adding a subdivision; Laws 2008, chapter 363, article 2, section
46, subdivision 1, as amended; Laws 2009, chapter 96, article 1, section 24,
subdivisions 2, as amended, 3, 4, as amended, 5, as amended, 6, as amended, 7,
as amended; article 2, section 67, subdivisions 2, as amended, 3, as amended,
4, as amended, 6, 9, as amended; article 3, section 21, subdivisions 3, 4, as
amended; article 4, section 12, subdivision 6, as amended; article 5, section
13, subdivisions 2, 3, 4, as amended; article 6, section 11, subdivisions 3, as
amended, 4, as amended, 8, as amended, 12, as amended; proposing coding for
new law in Minnesota Statutes, chapters 120B; 122A; 124D; repealing Minnesota
Statutes 2010, sections 120A.26, subdivisions 1, 2; 122A.60; 122A.61; 123B.05;
124D.11, subdivision 8; 124D.38, subdivisions 4, 5, 6; 124D.86; 124D.87;
124D.871; 124D.88; 124D.892, subdivisions 1, 2; 124D.896; Minnesota Rules,
parts 3535.0100; 3535.0110; 3535.0120; 3535.0130; 3535.0140; 3535.0150;
3535.0160; 3535.0170; 3535.0180.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:

Subd. 5.

Calculation of income.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:

Subd. 11.

Assessment of performance.

(a) Each year the performance of
every child who is not enrolled in a public school must be assessed using a nationally
norm-referenced standardized achievement examination deleted text begin . The superintendent of the
district in which the child receives instruction and the person in charge of the child's
instruction must agree about the specific examination to be used and the administration
and location of the examination deleted text end new text begin or a nationally recognized college entrance exam new text end .

deleted text begin (b) To the extent the examination in paragraph (a) does not provide assessment in
all of the subject areas in subdivision 9, the parent must assess the child's performance
in the applicable subject area. This requirement applies only to a parent who provides
instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
deleted text end

deleted text begin (c) If the results of the assessments in paragraphs (a) and (b) indicate that the
child's performance on the total battery score is at or below the 30th percentile or one
grade level below the performance level for children of the same age, the parent must
obtain additional evaluation of the child's abilities and performance for the purpose of
determining whether the child has learning problems.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end A child receiving instruction from a nonpublic school, person, or institution
that is accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements of this subdivision.

Sec. 3.

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

120A.24 REPORTING.

Subdivision 1.

Reports to superintendent.

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

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

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

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

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

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

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

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

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

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

Subd. 2.

Availability of documentation.

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

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

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

Subd. 3.

Exemptions.

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

Subd. 4.

Reports to the state.

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

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

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

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

new text begin Subd. 5. new text end

new text begin Obligations. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 120B.07, is amended to read:

120B.07 EARLY GRADUATION.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

new text begin Subdivision 1. new text end

new text begin Participation. new text end

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

new text begin Subd. 2. new text end

new text begin Scholarship amounts. new text end

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

new text begin Subd. 3. new text end

new text begin Scholarship uses. new text end

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

new text begin Subd. 4. new text end

new text begin Application. new text end

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

new text begin Subd. 5. new text end

new text begin Enrollment verification. new text end

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

new text begin Subd. 6. new text end

new text begin General education money transferred. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2010, section 121A.15, subdivision 8, is amended to read:

Subd. 8.

Report.

The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a report
with the commissioner for all persons within the district receiving instruction in a home
school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a home school shall submit the statements as required by subdivisions 1, 2,
3, deleted text begin and deleted text end 4 new text begin , and 12 new text end to the superintendent of the district in which the person resides by October
1 of deleted text begin each school year deleted text end new text begin the first year of their homeschooling in Minnesota and the grade 7
year new text end . The school report must be prepared on forms developed jointly by the commissioner
of health and the commissioner of education and be distributed to the local districts by the
commissioner of health. The school report must state the number of persons attending the
school, the number of persons who have not been immunized according to subdivision 1 or
2, and the number of persons who received an exemption under subdivision 3, clause (c)
or (d). The school report must be filed with the commissioner of education within 60 days
of the commencement of each new school term. Upon request, a district must be given a
60-day extension for filing the school report. The commissioner of education shall forward
the report, or a copy thereof, to the commissioner of health who shall provide summary
reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
or other person having general control and supervision of the child care facility shall file a
report with the commissioner of human services on all persons enrolled in the child care
facility. The child care facility report must be prepared on forms developed jointly by
the commissioner of health and the commissioner of human services and be distributed
to child care facilities by the commissioner of health. The child care facility report
must state the number of persons enrolled in the facility, the number of persons with no
immunizations, the number of persons who received an exemption under subdivision 3,
clause (c) or (d), and the number of persons with partial or full immunization histories.
The child care facility report must be filed with the commissioner of human services by
November 1 of each year. The commissioner of human services shall forward the report,
or a copy thereof, to the commissioner of health who shall provide summary reports to
boards of health as defined in section 145A.02, subdivision 2. The report required by this
subdivision is not required of a family child care or group family child care facility, for
prekindergarten children enrolled in any elementary or secondary school provided services
according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
75 percent of children in the facility participate on a onetime only or occasional basis to a
maximum of 45 hours per child, per month.

Sec. 7.

Minnesota Statutes 2010, section 123B.42, subdivision 1, is amended to read:

Subdivision 1.

Providing education materials and tests.

The commissioner of
education shall promulgate rules under the provisions of chapter 14 requiring that in
each school year, based upon formal requests by or on behalf of nonpublic school pupils
in a nonpublic school new text begin with enrollment that exceeds ten students new text end , the local districts or
intermediary service areas must purchase or otherwise acquire textbooks, individualized
instructional or cooperative learning materials, and standardized tests and loan or provide
them for use by children enrolled in that nonpublic school. These textbooks, individualized
instructional or cooperative learning materials, and standardized tests must be loaned or
provided free to the children for the school year for which requested. The loan or provision
of the textbooks, individualized instructional or cooperative learning materials, and
standardized tests shall be subject to rules prescribed by the commissioner of education.

Sec. 8.

Minnesota Statutes 2010, section 123B.44, subdivision 1, is amended to read:

Subdivision 1.

Provided services.

The commissioner of education shall promulgate
rules under the provisions of chapter 14 requiring each district or other intermediary
service area: (a) to provide each year upon formal request by a specific date by or on
behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district or
area new text begin with a total enrollment of more than ten pupils new text end , the same specific health services as
are provided for public school pupils by the district where the nonpublic school is located;
and (b) to provide each year upon formal request by a specific date by or on behalf of a
nonpublic school secondary pupil enrolled in a nonpublic school located in that district
or area new text begin with a total enrollment of more than ten pupils new text end , the same specific guidance and
counseling services as are provided for public school secondary pupils by the district
where the nonpublic school is located. The district where the nonpublic school is located
must provide the necessary transportation within the district boundaries between the
nonpublic school and a public school or neutral site for nonpublic school pupils who are
provided pupil support services under this section if the district elects to provide pupil
support services at a site other than the nonpublic school. Each request for pupil support
services must set forth the guidance and counseling or health services requested by or on
behalf of all eligible nonpublic school pupils enrolled in a given nonpublic school. No
district or intermediary service area must not expend an amount for these pupil support
services which exceeds the amount allotted to it under this section.

Sec. 9.

Minnesota Statutes 2010, section 124D.59, subdivision 2, is amended to read:

Subd. 2.

Pupil of limited English proficiency.

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

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

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

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

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

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

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

Sec. 10.

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

Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. The formula
allowance for fiscal year deleted text begin 2007 is $4,974 deleted text end new text begin 2011 is $5,124 new text end . The formula allowance for fiscal
year deleted text begin 2008 is $5,074 and deleted text end new text begin 2012 is $5,174. new text end The formula allowance for fiscal year deleted text begin 2009 deleted text end new text begin
2013 new text end and subsequent years is deleted text begin $5,124 deleted text end new text begin $5,224 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) new text begin For fiscal year 2011 only, new text end the
compensatory education revenue for each building in the district equals the formula
allowance minus $415 times the compensation revenue pupil units computed according to
section 126C.05, subdivision 3. Revenue shall be paid to the district and must be allocated
according to section 126C.15, subdivision 2.

(b) new text begin For fiscal year 2011 only, new text end when the district contracting with an alternative
program under section 124D.69 changes prior to the start of a school year, the
compensatory revenue generated by pupils attending the program shall be paid to the
district contracting with the alternative program for the current school year, and shall not
be paid to the district contracting with the alternative program for the prior school year.

(c) new text begin For fiscal year 2011 only, new text end when the fiscal agent district for an area learning center
changes prior to the start of a school year, the compensatory revenue shall be paid to the
fiscal agent district for the current school year, and shall not be paid to the fiscal agent
district for the prior school year.

new text begin (d) The compensatory allowance for fiscal year 2012 and later is equal to the
district's total compensatory revenue for fiscal year 2011 divided by the district's 2011
adjusted marginal cost pupil units.
new text end

new text begin (e) The initial compensatory revenue for each district equals the district's
compensatory allowance times the adjusted marginal cost pupil units for the school year.
new text end

new text begin (f) Notwithstanding paragraph (e), the commissioner shall adjust each district's
compensatory revenue computed under paragraph (e), based on the district's proportionate
share of initial compensatory revenue to ensure that the total statewide entitlement for
compensatory revenue equals $414,260,438.
new text end

new text begin (g) A school district's compensatory revenue is equal to its initial compensatory
revenue under paragraph (e), as adjusted by the commissioner under paragraph (f), and
shall be paid to the district.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:

Subd. 7.

Secondary sparsity revenue.

(a) A district's secondary sparsity revenue
for a school year equals the sum of the results of the following calculation for each
qualifying high school in the district:

(1) deleted text begin the formula allowance for the school year, deleted text end new text begin $5,124 new text end multiplied by

(2) the secondary average daily membership of pupils served in the high school,
multiplied by

(3) the quotient obtained by dividing 400 minus the secondary average daily
membership by 400 plus the secondary daily membership, multiplied by

(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
23 by ten.

(b) A newly formed district that is the result of districts combining under the
cooperation and combination program or consolidating under section 123A.48 must
receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
sparsity revenue the former districts had in the year prior to consolidation, increased for
any subsequent changes in the secondary sparsity formula.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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

Subd. 8.

Elementary sparsity revenue.

A district's elementary sparsity revenue
equals the sum of the following amounts for each qualifying elementary school in the
district:

(1) deleted text begin the formula allowance for the year, deleted text end new text begin $5,124 new text end multiplied by

(2) the elementary average daily membership of pupils served in the school,
multiplied by

(3) the quotient obtained by dividing 140 minus the elementary average daily
membership by 140 plus the average daily membership.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

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

Subd. 8a.

Sparsity revenue for school districts that close facilities.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2010, section 126C.10, subdivision 14, is amended to read:

Subd. 14.

Uses of total operating capital revenue.

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

(1) to acquire land for school purposes;

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

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

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

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

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

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

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

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

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

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

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

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

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

(15) to purchase or lease interactive telecommunications equipment;

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

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

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

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

(20) to purchase textbooks;

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

(22) to new text begin lease or new text end purchase vehicles;

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

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

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

(iii) other classroom information management needs; and

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2010, section 126C.10, subdivision 18, is amended to read:

Subd. 18.

Transportation sparsity revenue allowance.

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

deleted text begin (i) deleted text end new text begin (1) new text end multiply deleted text begin the formula allowance according to subdivision 2, deleted text end new text begin $5,124 new text end by .1469 deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (ii) deleted text end new text begin (2) new text end multiply the result in clause deleted text begin (i) deleted text end new text begin (1) new text end by the district's sparsity index raised to
the 26/100 power deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (iii) deleted text end new text begin (3) new text end multiply the result in clause deleted text begin (ii) deleted text end new text begin (2) new text end by the district's density index raised to
the 13/100 power deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (iv) deleted text end new text begin (4) new text end multiply deleted text begin the formula allowance according to subdivision 2, deleted text end new text begin $5,124 new text end by
.0485 deleted text begin . deleted text end new text begin ; and
new text end

deleted text begin (v) deleted text end new text begin (5) new text end subtract the result in clause deleted text begin (iv) deleted text end new text begin (4) new text end from the result in clause deleted text begin (iii) deleted text end new text begin (3) new text end .

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2010, section 126C.20, is amended to read:

126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2010, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

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

Subd. 6a.

Cash flow adjustment.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

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

Subd. 2.

Person less than 18 years of age.

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

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

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

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

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

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

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

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

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

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

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

Sec. 22.

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

Subdivision 1.

Offenses.

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 23.

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

Subdivision 1.

Violations.

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

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

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

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

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

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

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

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

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

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

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

Sec. 24.

Minnesota Statutes 2010, section 181A.05, subdivision 1, is amended to read:

Subdivision 1.

When issued.

Any minor 14 or 15 years of age who wishes to work
on school days during school hours shall first secure an employment certificate. The
certificate shall be issued only by the school district superintendent, the superintendent's
agent, deleted text begin or deleted text end some other person designated by the Board of Education new text begin , or by the person in
charge of providing instruction for students enrolled in nonpublic schools as defined in
section 120A.22, subdivision 4 new text end . The employment certificate shall be issued only for
a specific position with a designated employer and shall be issued only in the following
circumstances:

(1) if a minor is to be employed in an occupation not prohibited by rules promulgated
under section 181A.09 and as evidence thereof presents a signed statement from the
prospective employer; and

(2) if the parent or guardian of the minor consents to the employment; and

(3) if the issuing officer believes the minor is physically capable of handling the job
in question and further believes the best interests of the minor will be served by permitting
the minor to work.

Sec. 25. new text begin KITTSON CENTRAL SCHOOL CLOSING.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 26. new text begin NORTHLAND COMMUNITY SCHOOL CLOSING.
new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27. new text begin SALARY FREEZE.
new text end

new text begin Subdivision 1. new text end

new text begin Salary increases prohibited. new text end

new text begin (a) From the effective date of this
section through June 30, 2013, a school district or charter school must not increase the
salary or wages for any employee. This section prohibits any increase including, but
not limited to, across-the-board increases; cost-of-living adjustments; increases based
on longevity; increases as a result of step and lane changes; increases in the form of
lump-sum payments; increases in employer contributions to deferred compensation plans;
or any other pay grade adjustments of any kind. For purposes of this section, salary or
wages does not include employer contributions toward the cost of medical or dental
insurance premiums, provided that employee contributions to the costs of medical or
dental insurance premiums are not decreased.
new text end

new text begin (b) This section does not prohibit an increase in the rate of salary and wages for an
employee who is promoted or transferred to a position with greater job responsibilities.
Additional educational credits or degrees or a lane change is not a promotion or a
transfer to a position with greater job responsibilities. This section also does not prohibit
a school district or charter school from implementing an alternative compensation
program approved by the commissioner of education. The commissioner may approve an
alternative compensation program at the commissioner's sole discretion.
new text end

new text begin Subd. 2. new text end

new text begin Contracts in effect. new text end

new text begin (a) This section does not prohibit a school district
or charter school from effectuating an increase in the salary or wages for employees
if required by a contract or collective bargaining agreement that is in effect before the
effective date of this section. However, from the effective date of this section until June
30, 2013, a school district or charter school may not:
new text end

new text begin (1) enter into a new contract or collective bargaining agreement that increases salary
or wages in a manner prohibited by this section or that decreases the number of student
contact days in the 2011-2012 and 2012-2013 school years;
new text end

new text begin (2) increase the salary or wages for employees through extension of an expired
contract or collective bargaining agreement or any other arrangement or agreement.
new text end

new text begin (b) Notwithstanding any law to the contrary, if, as of the effective date of this
section, a school district or charter school has agreed to or entered into a contract or
collective bargaining agreement that is not scheduled to become effective until after
the effective date of this section, any provision of the contract or collective bargaining
agreement that violates subdivision 1, paragraph (a), is void. Any subsequent contract or
collective bargaining agreement must comply with the terms of this section.
new text end

new text begin (c) Notwithstanding any law to the contrary, upon expiration of a contract or
collective bargaining agreement, each employee must remain at the salary and wage in
effect at the time the contract expired, except as authorized in subdivision 1, paragraph
(b). Any language in a contract or collective bargaining agreement that attempts to extend
the terms of the contract or collective bargaining agreement is invalid if it seeks to extend
the application of the terms of a collective bargaining agreement past the durational limits
set forth in Minnesota Statutes, section 179A.20, subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Future contracts. new text end

new text begin A contract or collective bargaining agreement or
compensation plan entered into after June 30, 2013, must not provide a retroactive salary
or wage increase that applies to a period before June 30, 2013, if that increase would be
prohibited by this section if granted before June 30, 2013.
new text end

new text begin Subd. 4. new text end

new text begin Arbitration and strikes. new text end

new text begin Notwithstanding any law to the contrary:
new text end

new text begin (1) employees of a school district or charter school may not legally strike due to a
school district or charter school's refusal to grant a salary or wage increase if the refusal is
required to comply with this section; and
new text end

new text begin (2) neither a school district or charter school nor an exclusive representative may
request interest arbitration in relation to an increase to salary or wages that is prohibited
by this section and an arbitrator may not issue an award that would increase salary or
wages in a manner prohibited by this section.
new text end

new text begin Subd. 5. new text end

new text begin Relation to other law. new text end

new text begin This section supersedes Minnesota Statutes,
chapter 179A, and any other law to the contrary. It is not an unfair labor practice under
Minnesota Statutes, chapter 179A, for a school district or charter school to take any action
required to comply with this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
Subdivisions 1, 2, 4, and 5 expire on June 30, 2013.
new text end

Sec. 28. new text begin SCHOOL DISTRICT LEVY ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rate adjustment. new text end

new text begin The commissioner of education must adjust
each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
2010 as it existed prior to the passage of Senate File No. 27, or a similarly styled bill, to
the statewide total tax capacity for assessment year 2010.
new text end

new text begin Subd. 2. new text end

new text begin Equalizing factors. new text end

new text begin The commissioner of education must adjust each
school district equalizing factor established under Minnesota Statutes, chapters 120B to
127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
assessment year 2010 as it existed prior to the passage of Senate File No. 27, or a similarly
styled bill, to the statewide total tax capacity for assessment year 2010.
new text end

Sec. 29. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin General education aid. new text end

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

	new text begin $ new text end	new text begin 5,684,409,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 5,815,940,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $1,664,876,000 for 2011 and $4,019,533,000
for 2012.
new text end

new text begin The 2013 appropriation includes $1,722,657,000 for 2012 and $4,093,283,000
for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

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

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

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

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

	new text begin $ new text end	new text begin 1,452,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,635,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $346,000 for 2011 and $1,106,000 for 2012.
new text end

new text begin The 2013 appropriation includes $473,000 for 2012 and $1,162,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

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

	new text begin $ new text end	new text begin 145,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 210,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin The 2013 appropriation includes $0 for 2012 and $210,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

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

	new text begin $ new text end	new text begin 15,750,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 15,578,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $5,078,000 for 2011 and $10,672,000 for 2012.
new text end

new text begin The 2013 appropriation includes $4,573,000 for 2012 and $11,005,000 for 2013.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

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

	new text begin $ new text end	new text begin 19,010,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 19,030,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $5,895,000 for 2011 and $13,115,000 for 2012.
new text end

new text begin The 2013 appropriation includes $5,621,000 for 2012 and $13,409,000 for 2013.
new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

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

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

new text begin Subd. 9. new text end

new text begin Compensatory revenue pilot program. new text end

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

	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

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

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

new text begin Subd. 10. new text end

new text begin Board of Teaching; licensure by portfolio. new text end

new text begin For the Board of Teaching
for licensure by portfolio:
new text end

	new text begin $ new text end	new text begin 30,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 30,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin This appropriation is from the educator licensure portfolio account of the special
revenue fund.
new text end

Sec. 30. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2010, sections 120A.26, subdivisions 1 and 2, new text end new text begin are repealed.
new text end

new text begin (b) Minnesota Statutes 2010, sections 122A.60; 122A.61; and 123B.05, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective July 1, 2011.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to
read:

Subd. 2.

Revisions and reviews required.

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

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

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

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

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

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

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

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

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

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

new text begin (h) The commissioner is prohibited from adopting common core standards in the
subject and school year listed in the revision cycle in paragraphs (a) to (f).
new text end

Sec. 2.

Minnesota Statutes 2010, section 122A.09, subdivision 4, is amended to read:

Subd. 4.

License and rules.

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

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

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

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

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

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

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

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

(i) The board must receive recommendations from local committees as established
by the board for the renewal of teaching licenses.

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

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

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

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

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

Sec. 3.

Minnesota Statutes 2010, section 122A.18, subdivision 2, is amended to read:

Subd. 2.

Teacher and support personnel qualifications.

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

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

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

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

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

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

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

Sec. 4.

new text begin [122A.39] SALARY INCREASES BASED ON STUDENT
ACHIEVEMENT.
new text end

new text begin (a) At least 50 percent of a teacher's salary increase contained in the contract
between the school board and the exclusive representative of the teachers must be based
on the teacher's performance and evaluation using:
new text end

new text begin (1) student achievement gains as measured by statewide assessment results under
section 120B.35;
new text end

new text begin (2) if statewide assessment results are unavailable, a teacher's increase in salary must
be based on student performance on districtwide assessments of state and local standards
and teacher-developed assessments; or
new text end

new text begin (3) if no districtwide assessment results are available, a teacher's increase in salary
must be based on student performance on teacher-developed and administrator-approved
assessments of state and local standards.
new text end

new text begin (b) A school administrator shall meet with teachers at least annually under this
section to review, modify if needed, and approve local course and grade-level expectations
for student achievement and growth.
new text end

new text begin (c) The evaluation of the teacher must only include student data for students who
received instruction from the teacher for a minimum of 100 days.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for two-year contracts with the
term beginning on July 1, 2013, and later.
new text end

Sec. 5.

Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Qualified economic offer. new text end

new text begin (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the district's biennial percent increase in basic
revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the most
recent estimate of basic revenue for the district for the biennium that corresponds to the
prospective contract term to (2) the basic revenue for the previous biennium, the teachers
may not strike for any issue relating to the total compensation for the years covered by that
contract or submit any issue relating to the total compensation to interest arbitration under
section 179A.16. However, the teachers may strike for noneconomic issues, consistent
with section 179A.18, subdivision 2, or submit noneconomic issues to interest arbitration
under section 179A.16. District fund balances or other revenue sources or allocations are
not to be included in any calculation of compensation under this subdivision.
new text end

new text begin (b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) by January 15 of an even-numbered
calendar year, the allocation of total compensation among the teachers shall be as follows:
new text end

new text begin (1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
new text end

new text begin (2) based on the percentage increase in the general education formula allowance
for the biennium in which the contract is in effect, any remaining percentage of the total
compensation, after subtracting the value of clause (1), is for increases in teacher salary
based on first, alternative teacher pay plans under section 122A.414, second, the number
of years of service, and third, promotion and advanced education.
new text end

new text begin (c) For purposes of this subdivision, the following terms have the meanings given
them.
new text end

new text begin "Teachers" means classroom teachers licensed under section 122A.18. At a school
board's election, teachers also means school administrators licensed under section
122A.14, subdivision 1. A school board that elects to offer school administrators an
employment contract under this subdivision must make the offer consistent with section
179A.20, and the provisions of this subdivision. A school board, at its discretion, also
may elect to offer any of its nonlicensed employees an employment contract under the
terms of this subdivision.
new text end

new text begin "Total compensation" means the sum of the following cost components: (i) a school
district's total salary schedule costs excluding alternative teacher compensation under
sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
health insurance costs paid by the school district for its teachers, excluding any district
contributions to health reimbursement arrangements (HRA) or health savings accounts
(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
(v) total long-term disability costs paid by the school district for its teachers; (vi) total
dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
the school district for its teachers; and (xi) other miscellaneous costs identified by the
school district as payment for teachers' services or benefits such as special school events,
extra service duty, summer school instruction, driver's education outside the regular school
day and school year, and other direct salary payments to teachers or fringe benefit costs
paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts ratified beginning
July 1, 2011.
new text end

Sec. 6.

Minnesota Statutes 2010, section 122A.40, subdivision 7, is amended to read:

Subd. 7.

Termination of contract after probationary period.

(a) A teacher who
has completed a probationary period in any district, and who has not been discharged or
advised of a refusal to renew the teacher's contract under subdivision 5, shall deleted text begin elect to deleted text end have
a deleted text begin continuing deleted text end new text begin renewable five-year new text end contract with deleted text begin such deleted text end new text begin the new text end district where contract terms and
conditions, including salary and salary increases, are established based either on the length
of the school calendar or an extended school calendar under section 120A.415. deleted text begin Thereafter, deleted text end
The teacher's contract must remain in full force and effect, except as modified by mutual
consent of the board and the teacher, until terminated by a majority roll call vote of the
full membership of the board prior to deleted text begin April 1 deleted text end new text begin July 1 new text end upon one of the grounds specified in
deleted text begin subdivision 9 or July 1 upon one of the grounds specified in deleted text end subdivision new text begin 9, new text end 10 new text begin , new text end or 11, or
until the teacher is discharged pursuant to subdivision 13, or by the written resignation
of the teacher submitted prior to April 1. If an agreement as to the terms and conditions
of employment for the succeeding school year has not been adopted deleted text begin pursuant to the
provisions of deleted text end new text begin under new text end sections 179A.01 to 179A.25 prior to March 1, the teacher's right of
resignation is extended to the 30th calendar day following the adoption of deleted text begin said deleted text end new text begin the new text end contract
deleted text begin in compliance with deleted text end new text begin under new text end section 179A.20, subdivision 5. deleted text begin Such deleted text end Written resignation by the
teacher is effective deleted text begin as of deleted text end new text begin on new text end June 30 if submitted deleted text begin prior to deleted text end new text begin before new text end that date and the deleted text begin teachers' deleted text end
new text begin teacher's new text end right of resignation for the new text begin next new text end school year deleted text begin then beginning deleted text end shall cease on July 15.

new text begin (b) new text end Before a teacher's contract is terminated by the board, the board must notify the
teacher in writing and state its deleted text begin ground deleted text end new text begin grounds new text end for the proposed termination in reasonable
detail together with a statement that the teacher may make a written request for a hearing
before the board within 14 new text begin calendar new text end days after receipt of deleted text begin such deleted text end new text begin the new text end notification new text begin , and it
shall be granted within ten calendar days with notice to the teacher of the date set for
the hearing, before final action is taken new text end .

If the grounds are those specified in subdivision deleted text begin 9 or deleted text end 13, the notice must also state a
teacher may request arbitration under subdivision 15. Within 14 new text begin calendar new text end days after receipt
of deleted text begin this deleted text end new text begin the new text end notification new text begin , new text end the teacher may make a written request for a hearing before the
board or an arbitrator and it shall be granted deleted text begin upon reasonable deleted text end new text begin within 14 calendar days with new text end
notice to the teacher of the date set for hearing new text begin or arbitration new text end , before final action is taken.
If no hearing new text begin or arbitration new text end is requested within deleted text begin such deleted text end new text begin the required time new text end period, it shall be
deemed acquiescence by the teacher to the board's action. deleted text begin Such deleted text end new text begin The teacher's new text end termination
new text begin under subdivision 9 new text end shall take effect at the close of the school year in which the contract
is terminated deleted text begin in the manner aforesaid deleted text end new text begin , and termination discharge under subdivision 13
shall take effect immediately. A board may, however, suspend a teacher with pay pending
the conclusion of such a hearing or arbitration and determination of the issues raised
in the hearing or arbitration after charges have been filed which constitute grounds for
discharge new text end . deleted text begin Such contract deleted text end new text begin A continuing contract teacher's contract new text end may be terminated at
any time by mutual consent of the board and the teacher new text begin , new text end and this section does not affect
the powers of a board to suspend, discharge, or demote a teacher under and pursuant to
other provisions of law.

deleted text begin (b) deleted text end new text begin (c) new text end A teacher electing to have a continuing contract based on the extended school
calendar under section 120A.415 must participate in staff development training under
subdivision 7a and shall receive an increased base salary.

Sec. 7.

Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
to read:

new text begin Subd. 7b. new text end

new text begin Teacher employment. new text end

new text begin (a) After completing the initial three-year
probationary period, without discharge, a teacher who is reemployed by a school board
continues in service and holds that position during good behavior and efficient and
competent service for a renewable five-year term. The terms and conditions of a teacher's
employment contract, including salary and salary increases, must be based either on the
length of the school year or an extended school calendar under section 120A.415.
new text end

new text begin (b) At the end of every five-year term, the school board either must continue or
terminate a teacher's employment based on:
new text end

new text begin (1) standards of professional practice, student learning, and successful teacher
evaluations that are conducted at least twice per year by a school administrator; and
new text end

new text begin (2) other locally selected criteria aligned to instructional practices in teaching and
learning.
new text end

Sec. 8.

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

Subd. 9.

Grounds for termination.

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

deleted text begin (a) deleted text end new text begin (1) new text end inefficiency;

deleted text begin (b) deleted text end new text begin (2) new text end neglect of duty, or persistent violation of school laws, rules, regulations,
or directives;

deleted text begin (c) deleted text end new text begin (3) new text end conduct unbecoming a teacher which materially impairs the teacher's
educational effectiveness; new text begin or
new text end

deleted text begin (d) deleted text end new text begin (4) new text end other good and sufficient grounds rendering the teacher unfit to perform
the teacher's duties.

A contract must not be terminated upon one of the grounds specified in clause deleted text begin (a),
(b), (c), or (d) deleted text end new text begin (1), (2), (3), or (4) new text end , unless the teacher fails to correct the deficiency after
being given written notice of the specific items of complaint deleted text begin and reasonable time deleted text end new text begin , a written
plan to assist the teacher in remedying, the specific items of complaint, and for a period
not to exceed six months new text end within which to remedy them.

Sec. 9.

Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:

Subd. 11.

Unrequested leave of absence.

new text begin (a) new text end The board may place on unrequested
leave of absence, without pay or fringe benefits, as many teachers as may be necessary
because of discontinuance of position, lack of pupils, financial limitations, or merger of
classes caused by consolidation of districts. The unrequested leave is effective at the close
of the school year. In placing teachers on unrequested leave, new text begin the superintendent may
exempt from the effects of paragraphs (b) to (f) those teachers who, in the superintendent's
judgment, are able to provide instruction that similarly licensed teachers cannot provide or
whose subject area license meets unmet district needs for student instruction. new text end The board is
governed by deleted text begin the following provisions: deleted text end new text begin paragraphs (b) to (m).
new text end

deleted text begin (a) deleted text end new text begin (b) new text end The board may place probationary teachers on unrequested leave first in
the inverse order of their employment. A teacher who has acquired continuing contract
rights must not be placed on unrequested leave of absence while probationary teachers
are retained in positions for which the teacher who has acquired continuing contract
rights is licensed deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Teachers who have acquired continuing contract rights shall be placed on
unrequested leave of absence in fields in which they are licensed in the inverse order in
which they were employed by the school district.

new text begin (d) new text end In the case of equal seniority, the order in which teachers who have acquired
continuing contract rights shall be placed on unrequested leave of absence in fields in
which they are licensed is negotiable deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (c) deleted text end new text begin (e) new text end Notwithstanding the provisions of deleted text begin clause (b) deleted text end new text begin paragraphs (c) and (d) new text end , a teacher
is not entitled to exercise any seniority when that exercise results in that teacher being
retained by the district in a field for which the teacher holds only a provisional license, as
defined by the board of teaching, unless that exercise of seniority results in the placement
on unrequested leave of absence of another teacher who also holds a provisional license
in the same field. The provisions of this deleted text begin clause deleted text end new text begin paragraph new text end do not apply to vocational
education licenses deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (d) deleted text end new text begin (f) new text end Notwithstanding deleted text begin clauses (a), deleted text end new text begin paragraphs new text end (b) deleted text begin and deleted text end new text begin , new text end (c), new text begin and (d), new text end if the placing of
a probationary teacher on unrequested leave before a teacher who has acquired continuing
rights, the placing of a teacher who has acquired continuing contract rights on unrequested
leave before another teacher who has acquired continuing contract rights but who has
greater seniority, or the deleted text begin restriction deleted text end new text begin restrictions new text end imposed by the provisions of deleted text begin clause deleted text end new text begin
paragraph (b), new text end (c) new text begin , or (d) new text end would place the district in violation of its affirmative action
program, the district may retain the deleted text begin probationary deleted text end teacher deleted text begin , the teacher with less seniority, or
the provisionally licensed teacher; deleted text end new text begin with a lower designated status or less seniority.
new text end

deleted text begin (e) deleted text end new text begin (g) new text end Teachers placed on unrequested leave of absence must be reinstated to
the positions from which they have been given leaves of absence or, if not available,
to other available positions in the school district in fields in which they are licensed.
Reinstatement must be in the inverse order of placement on leave of absence. A teacher
must not be reinstated to a position in a field in which the teacher holds only a provisional
license, other than a vocational education license, while another teacher who holds a
nonprovisional license in the same field remains on unrequested leave. The order of
reinstatement of teachers who have equal seniority and who are placed on unrequested
leave in the same school year is negotiable deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (f) deleted text end new text begin (h) new text end Appointment of a new teacher must not be made while there is available, on
unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
teacher fails to advise the school board within 30 days of the date of notification that a
position is available to that teacher who may return to employment and assume the duties
of the position to which appointed on a future date determined by the board deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (g) deleted text end new text begin (i) new text end A teacher placed on unrequested leave of absence may engage in teaching
or any other occupation during the period of this leave deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (h) deleted text end new text begin (j) new text end The unrequested leave of absence must not impair the continuing contract
rights of a teacher or result in a loss of credit for previous years of service deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (i) deleted text end new text begin (k) new text end The unrequested leave of absence of a teacher who is placed on unrequested
leave of absence and who is not reinstated shall continue deleted text begin for a period of five years deleted text end new text begin until
that teacher's contract expires under subdivision 7b new text end , after which the right to reinstatement
shall terminate. The teacher's right to reinstatement shall also terminate if the teacher fails
to file with the board by April 1 of any year a written statement requesting reinstatement deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (j) deleted text end new text begin (l) new text end The same provisions applicable to terminations of probationary or continuing
contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of
absence deleted text begin ; deleted text end new text begin .
new text end

( deleted text begin k deleted text end ) new text begin (m) new text end Nothing in this subdivision shall be construed to impair the rights of teachers
placed on unrequested leave of absence to receive unemployment benefits if otherwise
eligible.

Sec. 10.

Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:

Subd. 13.

Immediate discharge.

(a) Except as otherwise provided in paragraph
(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
of the following grounds:

(1) immoral conduct, insubordination, or conviction of a felony;

(2) conduct unbecoming a teacher which requires the immediate removal of the
teacher from new text begin the new text end classroom or other duties;

(3) failure without justifiable cause to teach without first securing the written release
of the school board;

(4) gross inefficiency which the teacher has failed to correct after reasonable written
notice;

(5) willful neglect of duty; deleted text begin or
deleted text end

(6) continuing physical or mental disability subsequent to a deleted text begin 12 months deleted text end new text begin 12-month
new text end leave of absence and inability to qualify for reinstatement in accordance with subdivision
12 new text begin ; or
new text end

new text begin (7) the inability of the board to terminate at the close of the previous school year
under subdivision 9 new text end .

For purposes of this deleted text begin paragraph deleted text end new text begin subdivision new text end , conduct unbecoming a teacher includes
an unfair discriminatory practice described in section 363A.13.

Prior to discharging a teacher under this paragraph, the board must notify the teacher
in writing and state its ground for the proposed discharge in reasonable detail. Within
deleted text begin ten deleted text end new text begin five new text end days after receipt of this notification the teacher may make a written request
for a hearing before the board and it shall be granted before final action is taken. The
board may, however, suspend a teacher with pay deleted text begin pending deleted text end new text begin only for the first 60 days of the
suspension from regular duty. If new text end the conclusion of such hearing and determination of the
issues raised in the hearing after charges have been filed deleted text begin which constitute deleted text end new text begin constitutes
new text end ground for discharge new text begin , the board may, in its discretion, determine the teacher's salary or
compensation at the time of filing charges against the teacher, but must subtract the
amount of any payment made to the teacher during the first 60 days of suspension. If
the determination of the issues is favorable to the teacher, the board must not abate the
teacher's salary or compensation. The hearing must be held within 30 days of the board
action proposing discharge, unless otherwise agreed to by both parties new text end .

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1, 2011, and applies to
all discharge actions initiated by the board after that date.
new text end

Sec. 11.

Minnesota Statutes 2010, section 122A.40, subdivision 15, is amended to read:

Subd. 15.

Hearing and determination by arbitrator.

new text begin (a) new text end A teacher whose
deleted text begin termination deleted text end new text begin discharge new text end is proposed under subdivision 7 on grounds specified in deleted text begin subdivision
9, or whose deleted text end deleted text begin discharge is proposed under deleted text end subdivision 13 deleted text begin , deleted text end may elect deleted text begin a hearing before an
arbitrator deleted text end new text begin arbitration new text end instead of new text begin a hearing before new text end the school board. The deleted text begin hearing deleted text end new text begin arbitration new text end
is governed by this subdivision.

deleted text begin (a) deleted text end new text begin (b) new text end The teacher must make a written request for a hearing before an arbitrator
within 14 new text begin calendar new text end days after receiving notification of proposed termination on grounds
specified in subdivision deleted text begin 9 or within ten days of receiving notification of proposed
discharge under subdivision deleted text end 13 new text begin . The hearing must be held within 30 days of the board
action proposing discharge, unless otherwise agreed to by both parties new text end . deleted text begin If a request for a
hearing does not specify that the hearing be before an arbitrator, it is considered to be a
request for a hearing before the school board.
deleted text end

deleted text begin (b) deleted text end new text begin (c) new text end If the teacher and the school board are unable to mutually agree on an
arbitrator, the board must request from the bureau of mediation services a list of five
new text begin randomly selected new text end persons to serve as an arbitrator. deleted text begin If the matter to be heard is a proposed
termination on grounds specified in subdivision 9, arbitrators on the list must be available
to hear the matter and make a decision within a time frame that will allow the board to
comply with all statutory timelines relating to termination. deleted text end If the teacher and the board
are unable to mutually agree on an arbitrator from the list provided, the parties shall
alternately strike names from the list until the name of one arbitrator remains. The person
remaining after the striking procedure must be the arbitrator. If the parties are unable to
agree on who shall strike the first name, the question must be decided by a flip of a coin.
The teacher and the school board must share equally the costs and fees of the arbitrator.

deleted text begin (c) deleted text end new text begin (d) new text end The arbitrator shall determine, by a preponderance of the evidence, whether
the grounds for deleted text begin termination or deleted text end discharge specified in subdivision deleted text begin 9 or deleted text end 13 exist to support
the proposed deleted text begin termination or deleted text end discharge. A lesser penalty than deleted text begin termination or deleted text end discharge may
be imposed by the arbitrator only to the extent that deleted text begin either party proposes such deleted text end new text begin both parties
agree to a new text end lesser penalty in the proceeding. In making the determination, the arbitration
proceeding is governed by sections 572B.15 to 572B.28 and by the collective bargaining
agreement applicable to the teacher.

deleted text begin (d) deleted text end new text begin (e) new text end An arbitration hearing conducted under this subdivision is a meeting for
preliminary consideration of allegations or charges within the meaning of section 13D.05,
subdivision 3, paragraph (a), and must be closed, unless the teacher requests it to be open.

deleted text begin (e) deleted text end new text begin (f) new text end The arbitrator's award is final and binding on the parties, subject to sections
572B.18 to 572B.28.

Sec. 12.

Minnesota Statutes 2010, section 122A.40, subdivision 16, is amended to read:

Subd. 16.

Decision.

After the hearing new text begin or arbitration new text end , the board must issue a written
decision and order deleted text begin . If the board orders termination of a continuing contract or discharge of
a teacher deleted text end , new text begin and new text end its decision must include findings of fact based upon competent evidence in
the record and must be served on the teacher deleted text begin , accompanied by an order of termination or
discharge, prior to April 1 in the case of a contract termination for grounds specified in
subdivision 9, prior to July 1 for grounds specified in subdivision 10 or 11, or deleted text end within ten
new text begin calendar new text end days after conclusion of the hearing deleted text begin in the case of a discharge deleted text end new text begin or receipt of an
arbitrator's decision new text end . If the decision of the board or of a reviewing court is favorable to the
teacher, the proceedings must be dismissed and the decision entered in the board minutes,
and all references to deleted text begin such deleted text end new text begin the new text end proceedings must be excluded from the teacher's record file.

Sec. 13.

Minnesota Statutes 2010, section 122A.41, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Qualified economic offer. new text end

new text begin (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the district's biennial percent increase in basic
revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the most
recent estimate of basic revenue for the district for the biennium that corresponds to the
prospective contract term to (2) the basic revenue for the previous biennium, the teachers
may not strike for any issue relating to the total compensation for the years covered by that
contract or submit any issue relating to the total compensation to interest arbitration under
section 179A.16. However, the teachers may strike for noneconomic issues, consistent
with section 179A.18, subdivision 2, or submit noneconomic issues to interest arbitration
under section 179A.16. District fund balances or other revenue sources or allocations are
not to be included in any calculation of compensation under this subdivision.
new text end

new text begin (b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) by January 15 of an even-numbered
calendar year, the allocation of total compensation among the teachers shall be as follows:
new text end

new text begin (1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
new text end

new text begin (2) based on the percentage increase in the general education formula allowance
for the biennium in which the contract is in effect, any remaining percentage of the total
compensation, after subtracting the value of clause (1), is for increases in teacher salary
based on first, alternative teacher pay plans under section 122A.414, second, the number
of years of service, and third, promotion and advanced education.
new text end

new text begin (c) For the purposes of this subdivision, the following terms have the meanings
given them.
new text end

new text begin "Teachers" means classroom teachers licensed under section 122A.18. At a school
board's election, teachers also means school administrators licensed under section
122A.14, subdivision 1. A school board that elects to offer school administrators an
employment contract under this subdivision must make the offer consistent with section
179A.20, and the provisions of this subdivision. A school board, at its discretion, also
may elect to offer any of its nonlicensed employees an employment contract under the
terms of this subdivision.
new text end

new text begin "Total compensation" means the sum of the following cost components: (i) a school
district's total salary schedule costs excluding alternative teacher compensation under
sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
health insurance costs paid by the school district for its teachers, excluding any district
contributions to health reimbursement arrangements (HRA) or health savings accounts
(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
(v) total long-term disability costs paid by the school district for its teachers; (vi) total
dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
the school district for its teachers; and (xi) other miscellaneous costs identified by the
school district as payment for teachers' services or benefits such as special school events,
extra service duty, summer school instruction, driver's education outside the regular school
day and school year, and other direct salary payments to teachers or fringe benefit costs
paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts ratified beginning
July 1, 2011.
new text end

Sec. 14.

Minnesota Statutes 2010, section 122A.41, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Period of service after probationary period; discharge or demotion deleted text end new text begin
Teacher employment new text end .

(a) After deleted text begin the completion of such deleted text end new text begin completing the initial three-year new text end
probationary period, without discharge, deleted text begin such teachers as are deleted text end new text begin a teacher who is new text end thereupon
reemployed shall continue in service and hold deleted text begin their respective deleted text end new text begin that new text end position during good
behavior and efficient and competent service new text begin for a renewable five-year term new text end and must not
be discharged or demoted except for cause after a hearing. The terms and conditions of a
teacher's employment contract, including salary and salary increases, must be based either
on the length of the school year or an extended school calendar under section 120A.415.

(b) A probationary teacher is deemed to have been reemployed for the ensuing
school year, unless the school board in charge of such school gave such teacher notice in
writing before July 1 of the termination of such employment.

(c) A teacher electing to have an employment contract based on the extended school
calendar under section 120A.415 must participate in staff development training under
subdivision 4a and shall receive an increased base salary.

new text begin (d) At the end of every five-year term, the school board either must continue or
terminate a teacher's employment based on:
new text end

new text begin (1) standards of professional practice, student learning, and successful teacher
evaluations that are conducted at least twice per year by a school administrator; and
new text end

new text begin (2) other locally selected criteria aligned to instructional practices in teaching and
learning.
new text end

Sec. 15.

Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:

Subd. 14.

Services terminated by discontinuance or lack of pupils; preference
given.

(a) A teacher whose services are terminated on account of discontinuance of
position or lack of pupils must receive first consideration for other positions in the district
for which that teacher is qualified. In the event it becomes necessary to discontinue one
or more positions, in making such discontinuance, teachers must be discontinued in any
department in the inverse order in which they were employed, unless a board and the
exclusive representative of teachers in the district negotiate a plan providing otherwise.

new text begin (b) The superintendent may exempt from the effects of this subdivision those
teachers who, in the superintendent's judgment, are able to provide instruction that
similarly licensed teachers cannot provide or whose subject area license meets unmet
district needs for student instruction.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Notwithstanding the provisions of deleted text begin clause deleted text end new text begin paragraph new text end (a), a teacher is not
entitled to exercise any seniority when that exercise results in that teacher being retained
by the district in a field for which the teacher holds only a provisional license, as defined
by the Board of Teaching, unless that exercise of seniority results in the termination of
services, on account of discontinuance of position or lack of pupils, of another teacher
who also holds a provisional license in the same field. The provisions of this deleted text begin clause deleted text end
new text begin paragraph new text end do not apply to vocational education licenses.

deleted text begin (c) deleted text end new text begin (d) new text end Notwithstanding the provisions of deleted text begin clause deleted text end new text begin paragraph new text end (a), a teacher must
not be reinstated to a position in a field in which the teacher holds only a provisional
license, other than a vocational education license, while another teacher who holds a
nonprovisional license in the same field is available for reinstatement.

Sec. 16.

new text begin [122A.645] READING INSTRUCTION STIPEND.
new text end

new text begin A teacher who received their initial teaching license prior to February 1, 2012,
and passes the assessment of reading instruction administered by the Board of Teaching
under Laws 2009, chapter 96, article 2, section 66, is eligible to receive a stipend of up to
$1,000. The teacher must submit an application for the stipend in the form and manner
determined by the commissioner of education. The commissioner shall award stipends
until the funds appropriated are expended.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

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

new text begin Subd. 1a. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2010, section 123B.92, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

(1) the sum of:

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

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

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

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

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

(1) Regular transportation is:

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

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

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

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

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

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

(2) Excess transportation is:

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

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

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

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

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

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

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

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

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

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

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

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

(5) "Nonpublic nonregular transportation" is:

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

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

Subd. 5.

Authorization; notification.

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

Sec. 20.

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

Subd. 7.

Dissemination of information; notification of intent to enroll.

By March
1 of each year, a district must provide general information about the program to all pupils
in grades new text begin 8, 9, new text end 10 new text begin , new text end and 11. To assist the district in planning, a pupil shall inform the district
by March 30 of each year of the pupil's intent to enroll in postsecondary courses during
the following school year. A pupil is not bound by notifying or not notifying the district
by March 30.

Sec. 21.

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

Subd. 8.

Limit on participation.

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

Sec. 22.

Minnesota Statutes 2010, section 124D.10, subdivision 3, is amended to read:

Subd. 3.

Authorizer.

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

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

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

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

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

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

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

(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution, and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose, that:

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

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

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

(iv) is incorporated in the state of Minnesota;

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

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

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

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

(1) capacity and infrastructure;

(2) application criteria and process;

(3) contracting process;

(4) ongoing oversight and evaluation processes; and

(5) renewal criteria and processes.

(d) The affidavit to be submitted to and evaluated by the commissioner must include
at least the following:

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

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

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

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

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

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

(iv) the school's governance plan;

(v) the financial management plan; and

(vi) the administration and operations plan;

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

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

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

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

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

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

(f) An authorizer that chartered a school before August 1, 2009, must apply by June
30, deleted text begin 2011 deleted text end new text begin 2012 new text end , to the commissioner for approval, under paragraph (c), to continue as an
authorizer under this section. For purposes of this paragraph, an authorizer that fails to
submit a timely application is ineligible to charter a school.

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

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

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

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

(3) unsatisfactory performance as an approved authorizer.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

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

Subd. 4.

Building lease aid.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

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

124D.36 CITATION; deleted text begin MINNESOTA YOUTHWORKS deleted text end new text begin SERVEMINNESOTA
INNOVATION new text end ACT.

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

Sec. 25.

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

124D.37 PURPOSE OF deleted text begin MINNESOTA deleted text end deleted text begin YOUTHWORKS deleted text end new text begin SERVEMINNESOTA
INNOVATION new text end ACT.

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

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

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

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

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

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

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

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

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

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

Sec. 26.

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

Subd. 3.

Federal law.

"Federal law" means Public Law deleted text begin 101-610 deleted text end new text begin 111-13 new text end , as
amended, or any other federal law or program assisting youth community service,
work-based learning, or youth transition from school to work.

Sec. 27.

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

Subd. 3.

Duties.

(a) The commission shall:

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

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

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

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

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

(6) administer the federal AmeriCorps Program.

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

Sec. 28.

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

124D.39 deleted text begin YOUTHWORKS deleted text end new text begin SERVEMINNESOTA INNOVATION new text end PROGRAM.

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

Sec. 29.

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

124D.40 deleted text begin YOUTHWORKS deleted text end new text begin SERVEMINNESOTA INNOVATION new text end GRANTS.

Subdivision 1.

Application.

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

Subd. 2.

Grant authority.

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

Sec. 30.

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

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

Subd. 6.

Program training.

The commission must, within available resources:

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

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

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

Subd. 8.

Minnesota reading corps program.

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

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

Sec. 31.

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

124D.44 MATCH REQUIREMENTS.

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

Sec. 32.

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

Subd. 2.

Interim report.

The commission must report deleted text begin semiannually deleted text end new text begin annually new text end to the
legislature with interim recommendations to change the program.

Sec. 33.

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

Subdivision 1.

Career and technical levy.

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

(1) $80 times the district's average daily membership in grades deleted text begin 10 deleted text end new text begin 9 new text end through 12 for
the fiscal year in which the levy is certified; or

(2) deleted text begin 25 deleted text end new text begin 35 new text end percent of approved expenditures in the fiscal year in which the levy is
certified for the following:

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

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

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

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

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

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

(vii) specialized vocational instructional supplies.

(b) Up to ten percent of a district's career and technical levy may be spent on
equipment purchases. Districts using the career and technical levy for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

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

new text begin Subdivision 1. new text end

new text begin Literacy incentive aid. new text end

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

new text begin Subd. 2. new text end

new text begin Proficiency aid. new text end

new text begin In fiscal year 2013 and later, the proficiency aid for
each school is equal to the product of the school's proficiency allowance times the
number of pupils at the school on October 1 of the previous fiscal year. A school's
proficiency allowance is equal to the percent of students in each building that meet or
exceed proficiency on the reading portion of the third grade Minnesota Comprehensive
Assessment-II, averaged across the previous three test administrations, times $150.
new text end

new text begin Subd. 3. new text end

new text begin Growth aid. new text end

new text begin In fiscal year 2013 and later, the growth aid for each school is
equal to the product of the school's growth allowance times the number of pupils enrolled
at the school on October 1 of the previous fiscal year. A school's growth allowance is
equal to the percent of students in the fourth grade at that school making medium or high
growth, under section 120B.299, averaged across the previous three test administrations,
times $150.
new text end

Sec. 35. new text begin CHARTER SCHOOL START-UP AID.
new text end

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

Sec. 36. new text begin LITERACY INCENTIVE AID LIMIT.
new text end

new text begin Notwithstanding Minnesota Statutes, section 124D.98, subdivision 1, for fiscal year
2013 only, the commissioner must adjust the entitlement for literacy incentive aid under
Minnesota Statutes, section 124D.98, subdivision 1, to ensure that the total entitlement
does not exceed $85,952,000. If the literacy incentive aid exceeds the limit established in
this section, the aid must be reduced proportionately to match the limit.
new text end

Sec. 37. new text begin LITERACY TRANSITION REVENUE.
new text end

new text begin Subdivision 1. new text end

new text begin Literacy transition revenue. new text end

new text begin For districts that received integration
revenue under Minnesota Statutes, section 124D.86, in fiscal year 2011, literacy transition
revenue for fiscal year 2012 only is equal to the total district amount received under
Minnesota Statutes, section 124D.86, subdivision 3, in fiscal year 2011.
new text end

new text begin Subd. 2. new text end

new text begin Literacy transition levy. new text end

new text begin For fiscal year 2012 only, a district may levy
an amount equal to 30 percent of the district's literacy transition revenue as defined in
subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Literacy transition aid. new text end

new text begin A district's literacy aid equals the difference
between the district's literacy transition revenue and its literacy transition aid.
new text end

new text begin Subd. 4. new text end

new text begin Adjustments. new text end

new text begin The literacy transition aid under subdivision 3 must be
adjusted in the same manner as was adjusted under Minnesota Statutes, section 124D.86,
subdivision 6, in fiscal year 2011 for revenue in fiscal year 2012.
new text end

new text begin Subd. 5. new text end

new text begin Method of payment. new text end

new text begin The commissioner shall make payments of literacy
transition aid to school districts according to the payment schedule under Minnesota
Statutes, section 127A.45.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 38. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

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

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

	new text begin $ new text end	new text begin 47,466,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 52,484,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $13,336,000 for 2011 and $34,130,000 for 2012.
new text end

new text begin The 2013 appropriation includes $14,627,000 for 2012 and $37,857,000 for 2013.
new text end

new text begin Subd. 3. new text end

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

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

	new text begin $ new text end	new text begin 180,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 25,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $119,000 for 2011 and $61,000 for 2012.
new text end

new text begin The 2013 appropriation includes $25,000 for 2012 and $0 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Literacy transition aid. new text end

new text begin For literacy transition aid:
new text end

	new text begin $ new text end	new text begin 64,240,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 19,272,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $19,272,000 for 2011 and $44,968,000 for 2012.
new text end

new text begin The 2013 appropriation includes $19,272,000 for 2012 and $0 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Literacy incentive aid. new text end

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

new text begin $ new text end

new text begin 60,167,000 new text end

new text begin ..... new text end

new text begin 2013 new text end

new text begin The 2013 appropriation includes $0 for 2012 and $60,167,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Reading instruction stipend aid. new text end

new text begin For reading instruction stipend aid
under Minnesota Statutes, section 122A.645:
new text end

new text begin $ new text end

new text begin 4,450,000 new text end

new text begin ..... new text end

new text begin 2013 new text end

new text begin The base for fiscal year 2014 and later is $4,450,000.
new text end

new text begin Subd. 7. new text end

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

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

new text begin $ new text end

new text begin 14,917,000 new text end

new text begin ..... new text end

new text begin 2012 new text end

new text begin Subd. 8. new text end

new text begin Success for the future. new text end

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

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

new text begin The 2012 appropriation includes $641,000 for 2011 and $1,496,000 for 2012.
new text end

new text begin The 2013 appropriation includes $641,000 for 2012 and $1,496,000 for 2013.
new text end

new text begin Subd. 9. new text end

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

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

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

new text begin Subd. 10. new text end

new text begin Tribal contract school aid. new text end

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

	new text begin $ new text end	new text begin 2,097,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,217,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $600,000 for 2011 and $1,497,000 for 2012.
new text end

new text begin The 2013 appropriation includes $641,000 for 2012 and $1,576,000 for 2013.
new text end

new text begin Subd. 11. new text end

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

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

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

new text begin Subd. 12. new text end

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

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

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

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

new text begin Subd. 13. new text end

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

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

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

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

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

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

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

new text begin Subd. 14. new text end

new text begin Concurrent enrollment programs. new text end

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

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

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

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

new text begin Subd. 15. new text end

new text begin Collaborative urban educator. new text end

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

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

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

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

new text begin Subd. 16. new text end

new text begin ServeMinnesota program. new text end

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

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

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

new text begin Subd. 17. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
new text end

	new text begin $ new text end	new text begin 800,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 800,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin $54,000 each year is for student organizations serving health occupations.
new text end

new text begin $51,000 each year is for student organizations serving service occupations.
new text end

new text begin $117,000 each year is for student organizations serving trade and industry
occupations.
new text end

new text begin $112,000 each year is for student organizations serving business occupations.
new text end

new text begin $174,000 each year is for student organizations serving agriculture occupations.
new text end

new text begin $166,000 each year is for student organizations serving family and consumer science
occupations.
new text end

new text begin $126,000 each year is for student organizations serving marketing occupations.
new text end

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

new text begin Subd. 18. new text end

new text begin Early childhood literacy programs. new text end

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

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

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

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

new text begin Subd. 19. new text end

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

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

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

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

Sec. 39. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 124D.871; and 124D.88, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, section 124D.11, subdivision 8, new text end new text begin is repealed.
new text end

new text begin (c) new text end new text begin Minnesota Statutes 2010, section 124D.38, subdivisions 4, 5, and 6, new text end new text begin are repealed.
new text end

new text begin (d) new text end new text begin Minnesota Statutes 2010, sections 124D.86; 124D.892, subdivisions 1 and 2; and
124D.896, new text end new text begin are repealed.
new text end

new text begin (e) new text end new text begin Minnesota Statutes 2010, section 124D.87, new text end new text begin is repealed.
new text end

new text begin (f) new text end new text begin Minnesota Rules, parts 3535.0100; 3535.0110; 3535.0120; 3535.0130;
3535.0140; 3535.0150; 3535.0160; 3535.0170; and 3535.0180, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective for revenue for fiscal year 2012
and later. Paragraphs (b) and (e) are effective for revenue for fiscal year 2013 and later.
Paragraphs (d) and (f) are effective the day following final enactment.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2010, section 125A.76, subdivision 1, is amended to
read:

Subdivision 1.

Definitions.

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

(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

(b) "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing services to students. Essential personnel may also include
special education paraprofessionals or clericals providing support to teachers and students
by preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individual education plans. Essential
personnel does not include administrators and supervisors.

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

(d) "Program growth factor" means deleted text begin 1.046 deleted text end new text begin 1.0 new text end for fiscal year 2012 and later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

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

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

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

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

(b) "General revenue" means the sum of the general education revenue according to
section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
the total qualifying referendum revenue specified in paragraph (e) minus transportation
sparsity revenue minus total operating capital revenue.

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

(d) "Program growth factor" means deleted text begin 1.02 deleted text end new text begin 1.0 new text end for fiscal year 2012 and later.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

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

	new text begin $ new text end	new text begin 789,955,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 796,681,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $235,975,000 for 2011 and $553,980,000 for 2012.
new text end

new text begin The 2013 appropriation includes $237,419,000 for 2012 and $559,262,000 for 2013.
new text end

new text begin Subd. 3. new text end

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

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

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

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

new text begin Subd. 4. new text end

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

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

	new text begin $ new text end	new text begin 357,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 359,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $107,000 for 2011 and $250,000 for 2012.
new text end

new text begin The 2013 appropriation includes $107,000 for 2012 and $252,000 for 2013.
new text end

new text begin Subd. 5. new text end

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

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

	new text begin $ new text end	new text begin 111,243,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 112,122,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $53,449,000 for 2011 and $57,794,000 for 2012.
new text end

new text begin The 2013 appropriation includes $53,777,000 for 2012 and $58,345,000 for 2013.
new text end

new text begin Subd. 6. new text end

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

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

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

new text begin Subd. 7. new text end

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

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

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

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

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

123B.54 DEBT SERVICE APPROPRIATION.

deleted text begin (a) deleted text end deleted text begin $17,161,000 in fiscal year 2012 and $19,175,000 deleted text end new text begin $19,947,000 new text end in fiscal year
2013 new text begin , $22,832,000 in fiscal year 2014, and $23,060,000 in fiscal year 2015 new text end and later are
appropriated from the general fund to the commissioner of education for payment of debt
service equalization aid under section 123B.53.

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

Sec. 2.

Minnesota Statutes 2010, section 123B.57, is amended to read:

123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.

Subdivision 1.

Health and safety deleted text begin program deleted text end new text begin revenue application new text end .

(a) To receive
health and safety revenue for any fiscal year a district must submit to the commissioner
deleted text begin an deleted text end new text begin a capital expenditure health and safety revenue new text end application deleted text begin for aid and levy deleted text end by the
date determined by the commissioner. deleted text begin The application may be for hazardous substance
removal, fire and life safety code repairs, labor and industry regulated facility and
equipment violations, and health, safety, and environmental management, including
indoor air quality management. deleted text end The application must include a health and safety deleted text begin program deleted text end new text begin
budget new text end adopted new text begin and confirmed new text end by the school district board new text begin as being consistent with the
district's health and safety policy under subdivision 2 new text end . The deleted text begin program deleted text end new text begin budget new text end must include
the estimated cost deleted text begin , per building, deleted text end of the program new text begin per Uniform Financial Accounting and
Reporting Standards (UFARS) finance code new text end by fiscal year. Upon approval through the
adoption of a resolution by each of an intermediate district's member school district
boards and the approval of the Department of Education, a school district may include
its proportionate share of the costs of health and safety projects for an intermediate
district in its application.

(b) Health and safety projects with an estimated cost of $500,000 or more per
site are not eligible for health and safety revenue. Health and safety projects with an
estimated cost of $500,000 or more per site that meet all other requirements for health and
safety funding, are eligible for alternative facilities bonding and levy revenue according
to section 123B.59. A school board shall not separate portions of a single project into
components to qualify for health and safety revenue, and shall not combine unrelated
projects into a single project to qualify for alternative facilities bonding and levy revenue.

new text begin (c) The commissioner of education shall not make eligibility for health and safety
revenue contingent on a district's compliance status, level of program development, or
training. The commissioner shall not mandate additional performance criteria such as
training, certifications, or compliance evaluations as a prerequisite for levy approval.
new text end

Subd. 2.

deleted text begin Contents of program deleted text end new text begin Health and safety policy new text end .

new text begin To qualify for health
and safety revenue, new text end a deleted text begin district deleted text end new text begin school board new text end must adopt a health and safety deleted text begin program deleted text end new text begin policy new text end .
The deleted text begin program deleted text end new text begin policy new text end must include deleted text begin plans, where applicable, for hazardous substance
removal, fire and life safety code repairs, regulated facility and equipment violations,
and deleted text end new text begin provisions for implementing a health and safety program that complies with new text end health,
safety, and environmental deleted text begin management, deleted text end new text begin regulations and best practices, new text end including indoor
air quality management.

deleted text begin (a) A hazardous substance plan must contain provisions for the removal or
encapsulation of asbestos from school buildings or property, asbestos-related repairs,
cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
If a district has already developed a plan for the removal or encapsulation of asbestos as
required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
may use a summary of that plan, which includes a description and schedule of response
actions, for purposes of this section. The plan must also contain provisions to make
modifications to existing facilities and equipment necessary to limit personal exposure
to hazardous substances, as regulated by the federal Occupational Safety and Health
Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
deleted text end deleted text begin determined by the commissioner to present a significant risk to district staff or student
health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
contamination.
deleted text end

deleted text begin (b) A fire and life safety plan must contain a description of the current fire and life
safety code violations, a plan for the removal or repair of the fire and life safety hazard,
and a description of safety preparation and awareness procedures to be followed until the
hazard is fully corrected.
deleted text end

deleted text begin (c) A facilities and equipment violation plan must contain provisions to correct
health and safety hazards as provided in Department of Labor and Industry standards
pursuant to section 182.655.
deleted text end

deleted text begin (d) A health, safety, and environmental management plan must contain a description
of training, record keeping, hazard assessment, and program management as defined
in section 123B.56.
deleted text end

deleted text begin (e) A plan to test for and mitigate radon produced hazards.
deleted text end

deleted text begin (f) A plan to monitor and improve indoor air quality.
deleted text end

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or:

(1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

Subd. 4.

Health and safety levy.

To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted marginal cost pupil units in the district for the school year
to which the levy is attributable, to $2,935.

Subd. 5.

Health and safety aid.

A district's health and safety aid is the difference
between its health and safety revenue and its health and safety levy. If a district does not
levy the entire amount permitted, health and safety aid must be reduced in proportion to
the actual amount levied. Health and safety aid may not be reduced as a result of reducing
a district's health and safety levy according to section 123B.79.

Subd. 6.

Uses of health and safety revenue.

deleted text begin (a) deleted text end Health and safety revenue may
be used only for approved expenditures necessary deleted text begin to correct deleted text end new text begin for the correction of new text end fire
and life safety hazards deleted text begin , or for the deleted text end new text begin ; design, purchase, installation, maintenance, and
inspection of fire protection and alarm equipment; purchase or construction of appropriate
facilities for the storage of combustible and flammable materials; inventories and facility
modifications not related to a remodeling project to comply with lab safety requirements
under section 121A.31; inspection, testing, repair, new text end removal or encapsulation new text begin , and disposal new text end
of deleted text begin asbestos from school buildings or property owned or being acquired by the district,
asbestos-related repairs, deleted text end new text begin asbestos-containing building materials; new text end cleanup and disposal
of polychlorinated biphenyls deleted text begin found in school buildings or property owned or being
acquired by the district, or the deleted text end new text begin ; cleanup and disposal of hazardous and infectious wastes; new text end
cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section 296A.01 deleted text begin ,
Minnesota deleted text end new text begin ; correction of new text end occupational safety and health administration regulated deleted text begin facility
and equipment deleted text end hazards deleted text begin , deleted text end new text begin ; new text end indoor air quality new text begin inspections, investigations, and testing; new text end mold
abatement deleted text begin , deleted text end new text begin ; new text end upgrades or replacement of mechanical ventilation systems to meet American
Society of Heating, Refrigerating and Air Conditioning Engineers standards and State
Mechanical Code deleted text begin , deleted text end new text begin ; design, materials, and installation of local exhaust ventilation systems,
including required make-up air for controlling regulated hazardous substances; correction
of new text end Department of Health Food Code deleted text begin and deleted text end new text begin violations; correction of new text end swimming pool
hazards excluding depth correction deleted text begin , deleted text end new text begin ; playground safety inspections and the installation
of impact surfacing materials; bleacher repair or rebuilding to comply with the order of
a building code inspector under section 326B.112; testing and mitigation of elevated
radon hazards; lead testing; copper in water testing; cleanup after major weather-related
disasters or flooding; reduction of excessive organic and inorganic levels in wells and
well capping of abandoned wells; installation and testing of boiler backflow valves to
prevent contamination of potable water; vaccinations, titers, and preventative supplies
for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents'
Right To Know Act; new text end and health, safety, and environmental management new text begin costs associated
with implementing the district's health and safety program, including costs to establish
and operate safety committees, in school buildings or property owned or being acquired
by the district new text end . Testing and calibration activities are permitted for existing mechanical
ventilation systems at intervals no less than every five years. deleted text begin Health and safety revenue
must not be used to finance a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement. Health and safety revenue must not be used for
the construction of new facilities or the purchase of portable classrooms, for interest or
other financing expenses, or for energy efficiency projects under section 123B.65. The
revenue may not be used for a building or property or part of a building or property used
for postsecondary instruction or administration or for a purpose unrelated to elementary
and secondary education.
deleted text end

new text begin Subd. 6a. new text end

new text begin Restrictions on health and safety revenue. new text end

deleted text begin (b) deleted text end Notwithstanding
deleted text begin paragraph (a) deleted text end new text begin subdivision 6 new text end , health and safety revenue must not be used new text begin : (1) to finance a
lease purchase agreement, installment purchase agreement, or other deferred payments
agreement; (2) for the construction of new facilities, remodeling of existing facilities, or
the purchase of portable classrooms; (3) for interest or other financing expenses; (4) for
energy efficiency projects under section 123B.65 for a building or property or part of a
building or property used for postsecondary instruction or administration or for a purpose
unrelated to elementary and secondary education; (5) new text end for replacement of building materials
or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and
safety costs associated with demolition of facilities, structural repair or replacement of
facilities due to unsafe conditions, violence prevention and facility security, ergonomics deleted text begin , deleted text end new text begin ;
or (6) for new text end building and heating, ventilating and air conditioning supplies, maintenance, and
cleaning activities. All assessments, investigations, inventories, and support equipment
not leading to the engineering or construction of a project shall be included in the health,
safety, and environmental management costs in subdivision 8, paragraph (a).

new text begin Subd. 6b. new text end

new text begin Health and safety projects. new text end

new text begin (a) Health and safety revenue applications
defined in subdivision 1 must be accompanied by a description of each project for which
funding is being requested. Project descriptions must provide enough detail for an auditor
to determine if the work qualifies for revenue. For projects other than fire and life
safety projects, playground projects, and health, safety, and environmental management
activities, a project description does not need to include itemized details such as material
types, room locations, square feet, names, or license numbers. The commissioner
may request supporting information and shall approve only projects that comply with
subdivisions 6 and 8, as defined by the Department of Education.
new text end

new text begin (b) Districts may request funding for allowable projects based on self-assessments,
safety committee recommendations, insurance inspections, management assistance
reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
size for projects authorized by this subdivision is not limited and may include related
work in multiple facilities. Health and safety management costs from subdivision 8 may
be reported as a single project.
new text end

new text begin (c) All costs directly related to a project shall be reported in the appropriate Uniform
Financial Accounting and Reporting Standards (UFARS) finance code.
new text end

new text begin (d) For fire and life safety egress and all other projects exceeding $20,000 and cited
under Minnesota Fire Code, a fire marshal plan review is required.
new text end

new text begin (e) Districts shall update project estimates with actual expenditures for each
fiscal year. If a project's final cost is significantly higher than originally approved, the
commissioner may request additional supporting information.
new text end

new text begin Subd. 6c. new text end

new text begin Appeals process. new text end

new text begin In the event a district is denied funding approval for
a project the district believes complies with subdivisions 6 and 8, and is not otherwise
excluded, a district may appeal the decision. All such requests must be in writing. The
commissioner shall respond in writing. A written request must contain project number,
description and amount, reason for denial, unresolved questions for consideration, reasons
for reconsideration, and a specific statement of what action the district is requesting.
new text end

Subd. 7.

Proration.

In the event that the health and safety aid available for any year
is prorated, a district having its aid prorated may levy an additional amount equal to the
amount not paid by the state due to proration.

Subd. 8.

Health, safety, and environmental management cost.

(a) new text begin "Health, safety,
and environmental management" is defined in section 123B.56.
new text end

new text begin (b) new text end A district's cost for health, safety, and environmental management is limited to
the lesser of:

(1) actual cost to implement their plan; or

(2) an amount determined by the commissioner, based on enrollment, building
age, and size.

deleted text begin (b) deleted text end new text begin (c) new text end The department may contract with regional service organizations, private
contractors, Minnesota Safety Council, or state agencies to provide management
assistance to school districts for health and safety capital projects. Management assistance
is the development of written programs for the identification, recognition and control of
hazards, and prioritization and scheduling of district health and safety capital projects.
The deleted text begin department deleted text end new text begin commissioner new text end shall not new text begin mandate management assistance or new text end exclude
private contractors from the opportunity to provide any health and safety services to
school districts.

deleted text begin (c) Notwithstanding paragraph (b), the department may approve revenue, up to
the limit defined in paragraph (a) for districts having an approved health, safety, and
environmental management plan that uses district staff to accomplish coordination and
provided services.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subd. 3.

Capital project levy referendum.

new text begin (a) new text end A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. A referendum for a project not receiving a positive review and comment
by the commissioner under section 123B.71 must be approved by at least 60 percent of
the voters at the election.

new text begin (b) new text end The referendum may be called by the school board and may be held:

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

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

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

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

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

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

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

new text begin (d) If the district proposes a new capital project to begin at the time the existing
capital project expires and at the same maximum tax rate, the general description on the
ballot may state that the capital project levy is being renewed and that the tax rate is not
being increased from the previous year's rate. An election to renew authority under this
paragraph may be called at any time that is otherwise authorized by this subdivision. The
ballot notice required under section 275.60 may be modified to read:
new text end

new text begin "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING
TO RENEW AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS
SCHEDULED TO EXPIRE."
new text end

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

new text begin (f) new text end The district must notify the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
referenda conducted on or after the 53rd day following final enactment.
new text end

Sec. 4.

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

Subdivision 1.

To lease building or land.

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

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

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

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

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

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

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

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

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

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

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

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

(i) In addition to the allowable capital levies in paragraph (a), new text begin for taxes payable in
2012 to 2022, new text end a district that is a member of the "Technology and Information Education
Systems" data processing joint board, that finds it economically advantageous to enter
into a lease deleted text begin purchase deleted text end agreement deleted text begin for deleted text end new text begin to finance improvements to new text end a building for a group of
school districts or special school districts for staff development purposes, may levy for
its portion of lease costs attributed to the district within the total levy limit in paragraph
(e). new text begin The total levy authority under this paragraph shall not exceed $632,000 each year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

new text begin Subd. 3. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin HEALTH AND SAFETY POLICY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
that has not yet adopted a health and safety policy by September 30, 2011, may submit an
application for health and safety revenue for taxes payable in 2012 in the form and manner
specified by the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

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

	new text begin $ new text end	new text begin 123,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 113,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $39,000 for 2011 and $84,000 for 2012.
new text end

new text begin The 2013 appropriation includes $36,000 for 2012 and $77,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

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

	new text begin $ new text end	new text begin 12,425,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 19,947,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $2,604,000 for 2011 and $9,821,000 for 2012.
new text end

new text begin The 2013 appropriation includes $4,208,000 for 2012 and $15,739,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
new text end

	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $5,786,000 for 2011 and $13,501,000 for 2012.
new text end

new text begin The 2013 appropriation includes $5,786,000 for 2012 and $13,501,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
new text end

	new text begin $ new text end	new text begin 3,750,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,750,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2012 and 2013 shall be prorated.
new text end

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

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
new text end

	new text begin $ new text end	new text begin 2,494,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,035,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $676,000 for 2011 and $1,818,000 for 2012.
new text end

new text begin The 2013 appropriation includes $778,000 for 2012 and $2,257,000 for 2013.
new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

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

Subd. 5.

Levy recognition.

(a) For fiscal years 2009 and 2010, in June of each
year, the school district must recognize as revenue, in the fund for which the levy was
made, the lesser of:

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

(2) the sum of:

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

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

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

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

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

(2) the sum of:

(i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus

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

(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
deleted text begin not including the levy portions that are assumed by the state, deleted text end that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 127A.441, is amended to read:

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

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

new text begin (b) The commissioner shall schedule the timing of the adjustments under paragraph
(a) as close to the end of the fiscal year as possible.
new text end

The school district shall be notified of the amount of the adjustment made to each
payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(b) "Cumulative amount guaranteed" means the product of

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

(2) the sum of

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

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

(iii) the other district receipts.

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

(d) The current year aid payment percentage equals 73 in fiscal year 2010 deleted text begin , deleted text end new text begin and new text end 70
in fiscal year 2011 deleted text begin , and 90 in fiscal years 2012 deleted text end and later.

Sec. 4.

Minnesota Statutes 2010, section 127A.46, is amended to read:

127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.

new text begin (a) new text end If the commissioner of management and budget determines that modifications
in the payment schedule would reduce the need for state short-term borrowing,
the commissioner may modify payments to districts according to this section. The
modifications must begin no sooner than September 1 of each fiscal year, and must remain
in effect until no later than May 30 of that same fiscal year. In calculating the payment to a
district pursuant to section 127A.45, subdivision 3, the commissioner may subtract the
sum specified in that subdivision, plus an additional amount no greater than the following:

(1) the net cash balance in each of the district's operating funds on June 30 of the
preceding fiscal year; minus

(2) the product of $700 times the number of resident pupil units in the preceding
fiscal year; minus

(3) the amount of payments made by the county treasurer during the preceding fiscal
year, pursuant to section 276.11, which is considered revenue for the current school year.
However, no additional amount shall be subtracted if the total of the net unappropriated
fund balances in the district's four operating funds on June 30 of the preceding fiscal year,
is less than the product of $700 times the number of resident pupil units in the preceding
fiscal year. The net cash balance must include all cash and investments, less certificates of
indebtedness outstanding, and orders not paid for want of funds.

new text begin (b) new text end A district may appeal the payment schedule established by this section according
to the procedures established in section 127A.45, subdivision 4.

new text begin (c) The commissioner of education shall calculate the interest on delayed school
district payments based on the average daily invested treasurer's cash interest during the
period in which the delayed payments are in effect. The amount of this interest shall be
included in the payments to districts by May 30. The amounts necessary to make this
interest payment are appropriated to the commissioner.
new text end

Sec. 5.

Laws 2008, chapter 363, article 2, section 46, subdivision 1, as amended by
Laws 2009, chapter 96, article 5, section 11, is amended to read:

Subdivision 1.

Capital account transfers.

Notwithstanding any law to the contrary,
on June 30 of 2008, 2009, deleted text begin and deleted text end 2010 new text begin , 2011, and 2012 new text end , a school district may transfer
money from its reserved for operating capital account to its undesignated balance in the
general fund. The amount transferred by any school district must not exceed $51 times
the district's adjusted marginal cost pupil units for the second preceding fiscal year. This
transfer annually may occur only after the school board has adopted a written resolution
stating the amount of the transfer and declaring that the school district's operating capital
needs are being met.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Becker. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
726, Becker, may permanently transfer up to $500,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 2. new text end

new text begin Delano. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.57; 123B.80;
and 475.61, subdivision 4, on June 30, 2011, Independent School District No. 879,
Delano, may permanently transfer up to $235,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Elk River. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
728, Elk River, may permanently transfer up to $690,000 from its debt redemption fund to
its reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 4. new text end

new text begin Madelia. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.57; 123B.80;
and 475.61, subdivision 4, on June 30, 2011, Independent School District No. 837,
Madelia, may permanently transfer up to $427,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 5. new text end

new text begin Monticello. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.57;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
882, Monticello, may permanently transfer up to $500,000 from its debt redemption fund
to its reserved for operating capital account without making a levy reduction.
new text end

new text begin Subd. 6. new text end

new text begin St. Cloud. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.57;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
742, St. Cloud, may permanently transfer up to $650,000 from its debt redemption fund to
its reserved for operating capital account without making a levy reduction.
new text end

Sec. 7. new text begin LEVY AID RECOGNITION TIMING.
new text end

new text begin Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
commissioner of education shall schedule the portion of the aid adjustment for fiscal year
2011 attributable to the exclusion of levy portions assumed by the state from the levy
recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
with the final payment for fiscal year 2011 made on October 30, 2011.
new text end

Sec. 8. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
new text end

	new text begin $ new text end	new text begin 12,626,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 12,878,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 3. new text end

new text begin School breakfast. new text end

new text begin For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:
new text end

	new text begin $ new text end	new text begin 4,759,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 4,875,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 4. new text end

new text begin Kindergarten milk. new text end

new text begin For kindergarten milk aid under Minnesota Statutes,
section 124D.118:
new text end

	new text begin $ new text end	new text begin 1,084,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,105,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 5. new text end

new text begin Summer school service replacement aid. new text end

new text begin For summer school service
replacement aid under Minnesota Statutes, section 124D.119:
new text end

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

ARTICLE 6

LIBRARIES

Section 1.

Minnesota Statutes 2010, section 134.195, subdivision 8, is amended to read:

Subd. 8.

Funding.

The ordinance or resolution establishing the library shall
provide for joint financing of the library by the school district and the city. The city shall
provide at least the minimum dollar amount established in section 134.34, subdivision
1. The school district shall provide money for staff and materials for the library at least
in proportion to the use related to curriculum, as determined by the circulation statistics
of the library. deleted text begin Neither the city nor the school district shall reduce the financial support
provided for operation of library or media services below the level of support provided in
the preceding year. deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue retroactive to fiscal
year 2011 and later.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 13,570,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 13,570,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $4,071,000 for 2011 and $9,499,000 for 2012.
new text end

new text begin The 2013 appropriation includes $4,071,000 for 2012 and $9,499,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
new text end

	new text begin $ new text end	new text begin 1,300,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,300,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $390,000 for 2011 and $910,000 for 2012.
new text end

new text begin The 2013 appropriation includes $390,000 for 2012 and $910,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
new text end

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

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

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 2,300,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,300,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $690,000 for 2011 and $1,610,000 for 2012.
new text end

new text begin The 2013 appropriation includes $690,000 for 2012 and $1,610,000 for 2013.
new text end

ARTICLE 7

EARLY CHILDHOOD EDUCATION

Section 1.

new text begin [124D.143] OUTCOME INVESTMENTS.
new text end

new text begin An increase in state appropriations for the purpose of improving school readiness
outcomes must be made in research-based programs of known quality consistent with
the framework under section 124D.142.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin School readiness. new text end

new text begin For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:
new text end

	new text begin $ new text end	new text begin 10,095,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 10,095,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $3,028,000 for 2011 and $7,067,000 for 2012.
new text end

new text begin The 2013 appropriation includes $3,028,000 for 2012 and $7,067,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Early childhood family education aid. new text end

new text begin For early childhood family
education aid under Minnesota Statutes, section 124D.135:
new text end

	new text begin $ new text end	new text begin 22,466,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 23,015,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $6,542,000 for 2011 and $15,924,000 for 2012.
new text end

new text begin The 2013 appropriation includes $6,824,000 for 2012 and $16,191,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Health and developmental screening aid. new text end

new text begin For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
new text end

	new text begin $ new text end	new text begin 3,568,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,547,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $1,066,000 for 2011 and $2,502,000 for 2012.
new text end

new text begin The 2013 appropriation includes $1,072,000 for 2012 and $2,475,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Head Start program. new text end

new text begin For Head Start programs under Minnesota Statutes,
section 119A.52:
new text end

	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 6. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under
Minnesota Statutes, section 124D.129:
new text end

	new text begin $ new text end	new text begin 49,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 49,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 7. new text end

new text begin Kindergarten entrance assessment initiative and intervention
program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:
new text end

	new text begin $ new text end	new text begin 281,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 281,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

ARTICLE 8

PREVENTION

Section 1. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Community education aid. new text end

new text begin For community education aid under
Minnesota Statutes, section 124D.20:
new text end

	new text begin $ new text end	new text begin 478,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 694,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $134,000 for 2011 and $344,000 for 2012.
new text end

new text begin The 2013 appropriation includes $147,000 for 2012 and $547,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities
programs under Minnesota Statutes, section 124D.56:
new text end

	new text begin $ new text end	new text begin 710,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 710,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $213,000 for 2011 and $497,000 for 2012.
new text end

new text begin The 2013 appropriation includes $213,000 for 2012 and $497,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:
new text end

	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 5. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota Statutes,
section 124D.22:
new text end

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

new text begin The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
new text end

new text begin The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.
new text end

ARTICLE 9

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to
read:

Subdivision 1.

State total adult basic education aid.

(a) deleted text begin The state total adult basic
education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3. deleted text end The state total adult basic education aid for fiscal year deleted text begin 2008 deleted text end new text begin 2011 new text end equals
deleted text begin $40,650,000 deleted text end new text begin $44,419,000 new text end , plus any amount that is not paid during the previous fiscal
year as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3. The state total adult basic education aid for later fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of:

(i) deleted text begin 1.03 deleted text end new text begin 1.02 new text end ; or

(ii) the average growth in state total contact hours over the prior ten program years.

Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 124D.531, subdivision 4, is amended to read:

Subd. 4.

Adult basic education program aid limit.

(a) Notwithstanding
subdivisions 2 and 3, the total adult basic education aid for a program per prior year
contact hour must not exceed $22 per prior year contact hour computed under subdivision
3, clause (2).

(b) deleted text begin For fiscal year 2006 and fiscal year 2007, the aid for a program under subdivision
3, clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of eight percent or $10,000.
deleted text end

deleted text begin (c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, shall not be limited.
deleted text end

deleted text begin (d) For fiscal year 2009 and later, deleted text end The aid for a program under subdivision 3,
clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of 11 percent or $10,000.

deleted text begin (e) deleted text end new text begin (c) new text end Adult basic education aid is payable to a program for unreimbursed costs
occurring in the program year as defined in section 124D.52, subdivision 3.

deleted text begin (f) deleted text end new text begin (d) new text end Any adult basic education aid that is not paid to a program because of the
program aid limitation under paragraph (a) must be added to the state total adult basic
education aid for the next fiscal year under subdivision 1. Any adult basic education aid
that is not paid to a program because of the program aid limitations under paragraph
(b) deleted text begin , (c), or (d), deleted text end must be reallocated among programs by adjusting the rate per contact hour
under subdivision 3, clause (2).

Sec. 3. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under Minnesota
Statutes, section 124D.531:
new text end

	new text begin $ new text end	new text begin 45,075,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 45,932,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $13,365,000 for 2011 and $31,710,000 for 2012.
new text end

new text begin The 2013 appropriation includes $13,589,000 for 2012 and $32,343,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin GED tests. new text end

new text begin For payment of 60 percent of the costs of GED tests under
Minnesota Statutes, section 124D.55:
new text end

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

ARTICLE 10

STATE AGENCIES

Section 1.

Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to
read:

Subdivision 1.

deleted text begin Two kinds deleted text end new text begin Admissions new text end .

deleted text begin There are two kinds of deleted text end Admission to the
Minnesota State Academies new text begin is described in this section new text end .

(a) A pupil who is deaf, hard of hearing, or deleted text begin blind-deaf deleted text end new text begin deafblind new text end , may be admitted to
the Academy for the Deaf. A pupil who is blind or visually impaired, deleted text begin blind-deaf deleted text end new text begin deafblind new text end ,
or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be
admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65.

(1) It must be decided by the individual education planning team that education in
regular or special education classes in the pupil's district of residence cannot be achieved
satisfactorily because of the nature and severity of the deafness or blindness or visual
impairment respectively.

(2) It must be decided by the individual education planning team that the academy
provides the most appropriate placement within the least restrictive alternative for the
pupil.

(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to
get socialization skills or on a short-term basis for skills development.

new text begin (c) A parent of a child who resides in Minnesota and who meets the disability criteria
for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may
apply to place the child in the Minnesota State Academies. Academy staff must review
the application to determine whether the Minnesota State Academies is an appropriate
placement for the child. If academy staff determine that the Minnesota State Academies is
an appropriate placement, the staff must invite the individualized education program team
at the child's resident school district to participate in a meeting to arrange a trial placement
of between 60 and 90 calendar days at the Minnesota State Academies. If the child's
parent consents to the trial placement, the Minnesota State Academies is the responsible
serving school district and incurs all due process obligations under law, and the child's
resident school district is responsible for any transportation included in the child's
individualized education program during the trial placement. Before the trial placement
ends, academy staff must convene an individualized education program team meeting to
determine whether to continue the child's placement at the Minnesota State Academies
or that another placement is appropriate. If the academy members of the individualized
education program team and the parent are unable to agree on the child's placement, the
child's placement reverts to the placement in the child's individualized education program
that immediately preceded the trial placement. If the parent and individualized education
program team agree to continue the placement beyond the trial period, the transportation
and due process responsibilities are the same as those described for the trial placement
under this paragraph.
new text end

Sec. 2. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
new text end

	new text begin $ new text end	new text begin 16,996,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 16,940,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin (b) $260,000 each year is for the Minnesota Children's Museum.
new text end

new text begin (c) $41,000 each year is for the Minnesota Academy of Science.
new text end

new text begin (d) $50,000 each year is for the Duluth Children's Museum.
new text end

new text begin (e) $618,000 each year is for the Board of Teaching. Any balance in the first year
does not cancel but is available in the second year.
new text end

new text begin (f) $167,000 each year is for the Board of School Administrators. Any balance in
the first year does not cancel but is available in the second year.
new text end

new text begin (g) $10,000 in fiscal year 2012 is for nonpublic pupil aid rulemaking.
new text end

new text begin (h) $44,000 in fiscal year 2012 is for rulemaking for the alternative teacher
preparation program under Minnesota Statutes, section 122A.245.
new text end

new text begin (i) $104,000 in fiscal year 2012 and $102,000 in fiscal year 2013 are for a
professional education specialist to administer the early graduation achievement program.
new text end

new text begin (j) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.
new text end

new text begin (k) The Division of Program Finance in the Department of Education must be
funded, at a minimum, at the fiscal year 2011 level.
new text end

new text begin (l) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C. office.
new text end

Sec. 3. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and Blind for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 11,603,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 11,603,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

Sec. 4. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums in this section are appropriated from the general fund to the Perpich
Center for Arts Education for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 6,587,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 6,587,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

ARTICLE 11

FORECAST ADJUSTMENTS

new text begin A. GENERAL EDUCATION
new text end

Section 1.

Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by
Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:

Subd. 2.

General education aid.

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

	$	4,291,422,000	.....	2010
	$	deleted text begin 4,776,884,000 deleted text end new text begin 4,832,264,000 new text end	.....	2011

The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for
2010.

The 2011 appropriation includes $1,363,306,000 for 2010 and deleted text begin $3,413,578,000 deleted text end new text begin
$3,468,958,000 new text end for 2011.

Sec. 2.

Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:

Subd. 3.

Enrollment options transportation.

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

	$	48,000	.....	2010
	$	deleted text begin 52,000 deleted text end new text begin 29,000 new text end	.....	2011

Sec. 3.

Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:

Subd. 4.

Abatement revenue.

For abatement aid under Minnesota Statutes, section
127A.49:

	$	1,000,000	.....	2010
	$	deleted text begin 1,132,000 deleted text end new text begin 1,127,000 new text end	.....	2011

The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.

The 2011 appropriation includes $317,000 for 2010 and deleted text begin $815,000 deleted text end new text begin $810,000 new text end for 2011.

Sec. 4.

Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:

Subd. 5.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

	$	684,000	.....	2010
	$	deleted text begin 576,000 deleted text end new text begin 593,000 new text end	.....	2011

The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.

The 2011 appropriation includes $252,000 for 2010 and deleted text begin $324,000 deleted text end new text begin $341,000 new text end for 2011.

Sec. 5.

Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:

Subd. 6.

Nonpublic pupil education aid.

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

	$	12,861,000	.....	2010
	$	deleted text begin 16,157,000 deleted text end new text begin 16,213,000 new text end	.....	2011

The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.

The 2011 appropriation includes $4,362,000 for 2010 and deleted text begin $11,795,000 deleted text end new text begin $11,851,000 new text end
for 2011.

Sec. 6.

Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:

Subd. 7.

Nonpublic pupil transportation.

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

	$	17,297,000	.....	2010
	$	deleted text begin 19,729,000 deleted text end new text begin 19,387,000 new text end	.....	2011

The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.

The 2011 appropriation includes $5,629,000 for 2010 and deleted text begin $14,100,000 deleted text end new text begin $13,758,000 new text end
for 2011.

new text begin B. EDUCATION EXCELLENCE
new text end

Sec. 7.

Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:

Subd. 2.

Charter school building lease aid.

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

	$	34,833,000	.....	2010
	$	deleted text begin 44,938,000 deleted text end new text begin 42,633,000 new text end	.....	2011

The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.

The 2011 appropriation includes $11,513,000 for 2010 and deleted text begin $33,425,000 deleted text end new text begin $31,120,000 new text end
for 2011.

Sec. 8.

Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:

Subd. 3.

Charter school startup aid.

For charter school startup cost aid under
Minnesota Statutes, section 124D.11:

	$	1,218,000	.....	2010
	$	deleted text begin 743,000 deleted text end new text begin 654,000 new text end	.....	2011

The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.

The 2011 appropriation includes $375,000 for 2010 and deleted text begin $368,000 deleted text end new text begin $279,000 new text end for 2011.

Sec. 9.

Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

	$	50,812,000	.....	2010
	$	deleted text begin 61,782,000 deleted text end new text begin 61,604,000 new text end	.....	2011

The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.

The 2011 appropriation includes $16,636,000 for 2010 and deleted text begin $45,146,000 deleted text end new text begin $44,968,000 new text end
for 2011.

Sec. 10.

Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

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

	$	14,468,000	.....	2010
	$	deleted text begin 17,582,000 deleted text end new text begin 13,393,000 new text end	.....	2011

Sec. 11.

Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:

Subd. 9.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	1,702,000	.....	2010
	$	deleted text begin 2,119,000 deleted text end new text begin 1,958,000 new text end	.....	2011

The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.

The 2011 appropriation includes $558,000 for 2010 and deleted text begin $1,561,000 deleted text end new text begin $1,400,000 new text end
for 2011.

new text begin C. SPECIAL EDUCATION
new text end

Sec. 12.

Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:

Subd. 3.

Aid for children with disabilities.

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

	$	1,717,000	.....	2010
	$	deleted text begin 1,895,000 deleted text end new text begin 1,554,000 new text end	.....	2011

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

Sec. 13.

Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:

Subd. 4.

Travel for home-based services.

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

	$	224,000	.....	2010
	$	deleted text begin 282,000 deleted text end new text begin 324,000 new text end	.....	2011

The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.

The 2011 appropriation includes $73,000 for 2010 and deleted text begin $209,000 deleted text end new text begin $251,000 new text end for 2011.

new text begin D. FACILITIES AND TECHNOLOGY
new text end

Sec. 14.

Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:

Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

	$	1,918,000	.....	2010
	$	deleted text begin 2,146,000 deleted text end new text begin 2,191,000 new text end	.....	2011

The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.

The 2011 appropriation includes $613,000 for 2010 and deleted text begin $1,533,000 deleted text end new text begin $1,578,000 new text end
for 2011.

new text begin E. NUTRITION
new text end

Sec. 15.

Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:

Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

	$	12,688,000	.....	2010
	$	deleted text begin 13,069,000 deleted text end new text begin 12,378,000 new text end	.....	2011

Sec. 16.

Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:

Subd. 3.

School breakfast.

For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:

	$	4,978,000	.....	2010
	$	deleted text begin 5,147,000 deleted text end new text begin 4,646,000 new text end	.....	2011

Sec. 17.

Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:

Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

	$	1,104,000	.....	2010
	$	deleted text begin 1,126,000 deleted text end new text begin 1,063,000 new text end	.....	2011

new text begin F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND
SELF-SUFFICIENCY AND LIFELONG LEARNING
new text end

Sec. 18.

Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:

Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

	$	19,005,000	.....	2010
	$	deleted text begin 21,460,000 deleted text end new text begin 21,177,000 new text end	.....	2011

The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.

The 2011 appropriation includes $5,911,000 for 2010 and deleted text begin $15,549,000 deleted text end new text begin $15,266,000 new text end
for 2011.

Sec. 19.

Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	2,922,000	.....	2010
	$	deleted text begin 3,425,000 deleted text end new text begin 3,434,000 new text end	.....	2011

The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.

The 2011 appropriation includes $945,000 for 2010 and deleted text begin $2,480,000 deleted text end new text begin $2,489,000 new text end
for 2011.

Sec. 20.

Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:

Subd. 8.

Community education aid.

For community education aid under
Minnesota Statutes, section 124D.20:

	$	476,000	.....	2010
	$	deleted text begin 473,000 deleted text end new text begin 463,000 new text end	.....	2011

The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.

The 2011 appropriation included $148,000 for 2010 and deleted text begin $325,000 deleted text end new text begin $315,000 new text end for
2011.

Sec. 21.

Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:

Subd. 12.

Adult basic education aid.

For adult basic education aid under
Minnesota Statutes, section 124D.531:

	$	35,671,000	.....	2010
	$	deleted text begin 42,732,000 deleted text end new text begin 42,829,000 new text end	.....	2011

The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.

The 2011 appropriation includes $11,644,000 for 2010 and deleted text begin $31,088,000 deleted text end new text begin $31,185,000 new text end
for 2011.