SF 1253

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:19am

A bill for an act
relating to education; providing for prekindergarten through grade 12 education,
including general education, education excellence, special programs, libraries,
and self-sufficiency and lifelong learning; making technical corrections;
amending Minnesota Statutes 2008, sections 16A.06, subdivision 11; 120A.40;
120B.02; 120B.021, subdivision 1; 120B.023, subdivision 2; 120B.024; 120B.13,
subdivision 1; 120B.30, subdivisions 1, 1a; 120B.31, subdivision 4; 122A.07,
subdivisions 2, 3; 122A.31, subdivision 4; 123A.05; 123A.06; 123A.08;
123B.14, subdivision 7; 123B.51, by adding a subdivision; 123B.77, subdivision
3; 123B.81, subdivisions 3, 4, 5; 123B.83, subdivision 3; 124D.095, subdivisions
3, 4, 7, 10; 124D.10; 124D.11, subdivision 9; 124D.128, subdivisions 2, 3;
124D.135, subdivision 3; 124D.15, subdivisions 1, 3, by adding subdivisions;
124D.19, subdivisions 10, 14; 124D.522; 124D.60, subdivision 1; 124D.68,
subdivisions 2, 3, 4, 5; 125A.11, subdivision 1; 125A.15; 125A.28; 125A.51;
125A.62, subdivision 8; 125A.69, by adding a subdivision; 125A.744,
subdivision 3; 125A.76, subdivision 1; 126C.05, subdivisions 2, 15, 20;
126C.10, subdivision 34; 126C.15, subdivisions 2, 4; 126C.40, subdivision 6;
126C.44; 127A.08, by adding a subdivision; 127A.47, subdivisions 5, 7; 134.31,
subdivision 4a, by adding a subdivision; 299A.297; proposing coding for new
law in Minnesota Statutes, chapters 120B; 124D; repealing Minnesota Statutes
2008, sections 121A.27; 124D.13, subdivision 13.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:

Subd. 11.

Permanent school fund reporting.

The commissioner shall biannually
report to the Permanent School Fund Advisory Committee and the legislature deleted text begin on the
management of the permanent school trust fund that shows how the commissioner deleted text end new text begin the
amount of the permanent school fund transfer and information about the investment of the
permanent school fund provided by the State Board of Investment. The State Board of
Investment shall provide information about how they new text end maximized the long-term economic
return of the permanent school deleted text begin trust deleted text end fund.

Sec. 2.

Minnesota Statutes 2008, section 120A.40, is amended to read:

120A.40 SCHOOL CALENDAR.

(a) Except for learning programs during summer, flexible learning year programs
authorized under sections 124D.12 to 124D.127, and learning year programs under section
124D.128, a district must not commence an elementary or secondary school year before
Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops
may be held before Labor Day. Districts that enter into cooperative agreements are
encouraged to adopt similar school calendars.

(b) A district may begin the school year on any day before Labor Day new text begin : new text end

new text begin (1) new text end to accommodate a construction or remodeling project of $400,000 or more
affecting a district school facility deleted text begin . deleted text end new text begin ; new text end

new text begin (2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35
with a district that qualifies under clause (1); or
new text end

deleted text begin A school deleted text end new text begin (3) if the new text end district deleted text begin that deleted text end agrees to the same schedule with a school district
in an adjoining state deleted text begin also may begin the school year before Labor Day as authorized
under this paragraph deleted text end .

Sec. 3.

Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:

Subd. 3.

Statement for comparison and correction.

(a) By November 30 of the
calendar year of the submission of the unaudited financial data, the district must provide to
the commissioner audited financial data for the preceding fiscal year. The audit must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
of the State Auditor. An audited financial statement prepared in a form which will allow
comparison with and correction of material differences in the unaudited financial data
shall be submitted to the commissioner and the state auditor by December 31. The audited
financial statement must also provide a statement of assurance pertaining to uniform
financial accounting and reporting standards compliance and a copy of the management
letter submitted to the district by the school district's auditor.

(b) By deleted text begin January deleted text end new text begin February new text end 15 of the calendar year following the submission of the
unaudited financial data, the commissioner shall convert the audited financial data
required by this subdivision into the consolidated financial statement format required
under subdivision 1a and publish the information on the department's Web site.

Sec. 4.

Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:

Subd. 3.

Failure to limit expenditures.

If a district does not limit its expenditures in
accordance with this section, the commissioner may so notify the appropriate committees
of the legislature by no later than deleted text begin January 1 deleted text end new text begin February 15 new text end of the year following the end
of that fiscal year.

Sec. 5.

Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum equalization aid attributable to a
pupil must be calculated using the resident district's average general education revenue
and referendum equalization aid per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service costs
for facilities used primarily for special education, plus (2) the amount of general education
revenue and referendum equalization aid attributable to that pupil, calculated using the
resident district's average general education revenue and referendum equalization aid
per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
secondary sparsity revenue, minus (3) the amount of special education aid for children
with a disability received on behalf of that child, minus (4) if the pupil receives special
instruction and services outside the regular classroom for more than 60 percent of the
school day, the amount of general education revenue and referendum equalization aid,
excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives special instruction
and services outside of the regular classroom, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
and the serving district's basic skills revenue, elementary sparsity revenue and secondary
sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
served by a cooperative unit without a fiscal agent school district, the general education
revenue and referendum equalization aid attributable to a pupil must be calculated using
the resident district's average general education revenue and referendum equalization aid
excluding new text begin compensatory revenue, new text end elementary sparsity revenue new text begin , new text end and secondary sparsity
revenue. Special education aid paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the amount of the reduction in
the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
expenditures on the resident school district's books of account under sections 123B.75
and 123B.76. If the resident district's special education aid is insufficient to make the full
adjustment, the remaining adjustment shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, a site approved under section 125A.515,
an intermediate district, a special education cooperative, or a school district that served
as the applicant agency for a group of school districts for federal special education aids
for fiscal year 2006 may apply to the commissioner for authority to charge the resident
district an additional amount to recover any remaining unreimbursed costs of serving
pupils with a disability. The application must include a description of the costs and the
calculations used to determine the unreimbursed portion to be charged to the resident
district. Amounts approved by the commissioner under this paragraph must be included
in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum equalization aid" means the sum
of the general education revenue according to section 126C.10, subdivision 1, excluding
alternative teacher compensation revenue, plus the referendum equalization aid according
to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
7, paragraphs (a) to (c).

Sec. 6.

Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:

Subd. 2.

Foreign exchange pupils.

Notwithstanding section 124D.02, subdivision
3, or any other law to the contrary, a foreign exchange pupil enrolled in a district under a
cultural exchange program new text begin registered with the Office of the Secretary of State under
section 5A.02 new text end may be counted as a resident pupil for the purposes of this chapter
and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has
graduated from high school or the equivalent.

Sec. 7.

Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

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

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

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

(d) deleted text begin If the pupil is served at a site other than one owned and operated by the district,
the revenue shall be paid to the district and used for services for pupils who generate
the revenue deleted text end new text begin Notwithstanding section 123A. 26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unit new text end .

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

Sec. 8.

Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:

Subd. 4.

Separate accounts.

Each district new text begin and cooperative unit new text end that receives basic
skills revenue shall maintain separate accounts to identify expenditures for salaries and
programs related to basic skills revenue.

Sec. 9.

Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:

Subd. 6.

Lease purchase; installment buys.

(a) Upon application to, and approval
by, the commissioner in accordance with the procedures and limits in subdivision 1,
paragraphs (a) and (b), a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease
real or personal property with an option to purchase under a lease purchase agreement, by
which installment contract or lease purchase agreement title is kept by the seller or vendor
or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase
agreement must not be included in the calculation of net debt for purposes of section
475.53, and does not constitute debt under other law. An election is not required in
connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to
acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) a new text begin racially isolated new text end school district new text begin or a school district with a racially identifiable
school new text end required to have a deleted text begin comprehensive deleted text end new text begin desegregation or integration new text end plan deleted text begin for the deleted text end
deleted text begin elimination of segregation deleted text end new text begin which is eligible for revenue under section 124D.86,
subdivision 3, clause (1), (2), or (3), and new text end whose plan has been determined by the
commissioner to be in compliance with Department of Education rules relating to equality
of educational opportunity and school desegregation and, for a district eligible for
revenue under section 124D.86, subdivision 3, clause (4) new text begin or (5) new text end , where the acquisition of
property under this subdivision is determined by the commissioner to contribute to the
implementation of the desegregation plan; or

(2) a school district that participates in a joint program for interdistrict desegregation
with a district defined in clause (1) if the facility acquired under this subdivision is to
be primarily used for the joint program and the commissioner determines that the joint
programs are being undertaken to implement the districts' desegregation plan.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized
by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building
or land shall include personal property.

Sec. 10.

Minnesota Statutes 2008, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010
and later.
new text end

Sec. 11.

Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction
and services, including special transportation and unreimbursed building lease and debt
service costs for facilities used primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
in a program listed in this subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day,
the amount of general education revenue and referendum equalization aid attributable
to that pupil for the portion of time the pupil receives special instruction and services
outside of the regular classroom, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, minus (3) special education aid attributable to that pupil, that is
received by the district providing special instruction and services. For purposes of this
paragraph, general education revenue and referendum equalization aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
district or cooperative providing special instruction and services for the pupil, or to the
fiscal agent district for a cooperative, must be increased by the amount of the reduction
in the aid paid to the resident district. If the resident district's special education aid is
insufficient to make the full adjustment, the remaining adjustment shall be made to other
state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of
the district average general education revenue per pupil unit minus an amount equal to the
product of the formula allowance according to section 126C.10, subdivision 2, times .0485,
calculated without deleted text begin basic skills deleted text end new text begin compensatory new text end revenue and transportation sparsity revenue,
times the number of pupil units for pupils attending the area learning center deleted text begin , plus the
amount of compensatory revenue generated by pupils attending the area learning center deleted text end .

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2008, 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 beginning in the 2010-2011
school year are aligned with the state academic standards in mathematics. The statewide
11th grade mathematics test administered to students under clause (2) beginning in
the 2013-2014 school year must include algebra II test items that are aligned with
corresponding state academic standards in mathematics. 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. new text begin The commissioner also must ensure that the statewide science assessments
administered to students as described under section 120B.30, subdivision 1a, beginning
in the 2011-2012 school year are aligned with the state academic standards in science.
new text end Under the revised standards, students scheduled to graduate in the 2014-2015 school year
or later must satisfactorily complete a chemistry or physics 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. new text begin The commissioner also must ensure that the statewide language
arts assessments administered to students beginning in the 2012-2013 school year are
aligned with the state academic standards in language arts. new text end 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, physical education, 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, physical education, world
languages, and career and technical education.

Sec. 2.

Minnesota Statutes 2008, section 120B.024, is amended to read:

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

(a) Students beginning 9th grade in the 2004-2005 school year and later must
successfully complete the following high school level course credits for graduation:

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
and probability sufficient to satisfy the academic standard;

(3) three credits of science, including at least one credit in biology;

(4) three and one-half credits of social studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics or
three credits of social studies encompassing at least United States history, geography,
government and citizenship, and world history, and one-half credit of economics taught in
a school's social studies, agriculture education, or business department;

(5) one credit in the arts; and

(6) a minimum of seven elective course credits.

A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter new text begin of the state academic
standards or local academic standards where state standards do not apply new text end , as determined
by the local school district.

(b) An agriculture science course may fulfill a science credit requirement in addition
to the specified science credits in biology and chemistry or physics under paragraph (a),
clause (3).

(c) A career and technical education course may fulfill a science, mathematics, or
arts credit requirement in addition to the specified science, mathematics, or arts credits
under paragraph (a), clause (2), (3), or (5).

Sec. 3.

Minnesota Statutes 2008, section 120B.13, subdivision 1, is amended to read:

Subdivision 1.

Program structure; training programs for teachers.

(a) The
advanced placement and international baccalaureate programs are well-established
academic programs for mature, academically directed high school students. These
programs, in addition to providing academic rigor, offer sound curricular design,
accountability, comprehensive external assessment, feedback to students and teachers,
and the opportunity for high school students to compete academically on a global level.
Advanced placement and international baccalaureate programs allow students to leave
high school with the academic skills and self-confidence to succeed in college and
beyond. The advanced placement and international baccalaureate programs help provide
Minnesota students with world-class educational opportunity.

(b) Critical to schools' educational success is ongoing advanced
placement/international baccalaureate-approved teacher training. A secondary teacher
assigned by a district to teach an advanced placement or international baccalaureate course
or other interested educator may participate in a training program offered by The College
Board or International Baccalaureate North America, Inc. The state may pay a portion
of the tuition, room, board, and out-of-state travel costs a teacher or other interested
educator incurs in participating in a training program. The commissioner shall determine
application procedures and deadlines, select teachers and other interested educators to
participate in the training program, and determine the payment process and amount of the
subsidy. The procedures determined by the commissioner shall, to the extent possible,
ensure that advanced placement and international baccalaureate courses become available
in all parts of the state and that a variety of course offerings are available in school districts.
This subdivision does not prevent teacher or other interested educator participation in
training programs offered by The College Board or International Baccalaureate North
America, Inc., when tuition is paid by a source other than the state.

new text begin (c) The commissioner may award state-funded competitive grants designed to create
advanced placement summer training institutes for secondary teachers. Two-year grants,
beginning and ending on October 1, may be awarded to Minnesota institutions of higher
education that comply with the training requirements outlined by The College Board. The
commissioner shall determine award criteria and the selection process.
new text end

Sec. 4.

new text begin [120B.17] WORLD LANGUAGE PROFICIENCY CERTIFICATES.
new text end

new text begin (a) Any Minnesota public, charter, or private school may award Minnesota World
Language Proficiency Certificates or Minnesota World Language Proficiency High
Achievement Certificates.
new text end

new text begin (b) The Minnesota World Language Proficiency Certificate recognizes students who
demonstrate both oral and written language skills at the American Council on the Teaching
of Foreign Languages' Intermediate-Low level on a valid and reliable assessment tool. For
languages listed as Category 3 by the United States Foreign Service Institute or Category
4 by the United States Defense Language Institute, the standard is Intermediate-Low for
listening and speaking and Novice-High for reading and writing.
new text end

new text begin (c) The Minnesota World Language Proficiency High Achievement Certificate
recognizes students who demonstrated both oral and written language skills at the
American Council on the Teaching of Foreign Languages' Pre-Advanced level for
K-12 learners on a valid and reliable assessment tool. For languages listed as Category
3 by the United States Foreign Service Institute or Category 4 by the United States
Defense Language Institute, the standard is Pre-Advanced for listening and speaking and
Intermediate-Mid for reading and writing.
new text end

Sec. 5.

Minnesota Statutes 2008, section 120B.30, subdivision 1, is amended to read:

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed from and aligned with the state's
required academic standards under section 120B.021 and administered annually to all
students in grades 3 through 8 and at the high school level new text begin in mathematics and reading new text end . A
state-developed test in a subject other than writing, developed after the 2002-2003 school
year, must include both deleted text begin machine-scoreable deleted text end new text begin multiple-choice new text end and constructed response
questions. The commissioner shall establish one or more months during which schools
shall administer the tests to students each school year. new text begin Schools selected for stand-alone
state field testing or other national sampling by the department must participate as
requested. Superintendents or charter school directors may appeal in writing to the
commissioner of education or the commissioner's designee for exemption from a selected
field test if undue hardship is demonstrated. The commissioner's decision regarding the
appeal is final.
new text end

new text begin (b) new text end For students enrolled in grade 8 before the 2005-2006 school year, deleted text begin only deleted text end
Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
basic skills testing requirements for a passing state notation. The passing scores of basic
skills tests in reading and mathematics are the equivalent of 75 percent correct for students
entering grade 9 in 1997 and thereafter, as based on the first uniform test administration
of February 1998. new text begin Students who have not successfully passed the basic skills test by the
end of the 2011-2012 school year must pass the graduation assessment requirements
for Minnesota students given at that time.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end For students enrolled in grade 8 in the 2005-2006 school year and later, only
the following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.

deleted text begin (c) deleted text end new text begin (d) new text end The 3rd through 8th grade and high school level test results shall be available
to districts for diagnostic purposes affecting student learning and district instruction and
curriculum, and for establishing educational accountability. The commissioner must
disseminate to the public the test results upon receiving those results.

deleted text begin (d) deleted text end new text begin (e) new text end State tests must be constructed and aligned with state academic standards. The
testing process and the order of administration shall be determined by the commissioner.
The statewide results shall be aggregated at the site and district level, consistent with
subdivision 1a.

deleted text begin (e) deleted text end new text begin (f) new text end In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations, alternate
assessments, or exemptions consistent with applicable federal law, only with parent or
guardian approval, for those very few students for whom the student's individual education
plan team under sections 125A.05 and 125A.06 determines that the general statewide test
is inappropriate for a student, or for a limited English proficiency student under section
124D.59, subdivision 2;

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

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

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

Sec. 6.

Minnesota Statutes 2008, section 120B.30, subdivision 1a, is amended to read:

Subd. 1a.

Statewide and local assessments; results.

(a) The commissioner must
develop reading, mathematics, and science assessments aligned with state academic
standards that districts and sites must use to monitor student growth toward achieving
those standards. The commissioner must not develop statewide assessments for academic
standards in social studies, health and physical education, and the arts. The commissioner
must require:

(1) annual reading and mathematics assessments in grades 3 through 8 and at the
high school level for the 2005-2006 school year and later; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through deleted text begin 9 deleted text end new text begin 8 new text end span, and a life sciences assessment in the grades deleted text begin 10 deleted text end new text begin 9 new text end through 12
span for the 2007-2008 school year and later.

(b) The commissioner must ensure that all statewide tests administered to elementary
and secondary students measure students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

(c) Reporting of assessment results must:

(1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;

(2) include, by no later than the 2008-2009 school year, a value-added component
that is in addition to a measure for student achievement growth over time; and

(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and

(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
whether students have met the state's academic standards.

(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
(1), the commissioner must include appropriate, technically sound accommodations or
alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for students with limited English proficiency.

(e) A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
progress in achieving the academic standards. If a state assessment is not available, a
school, school district, and charter school must determine locally if a student has met
the required academic standards. A school, school district, or charter school may use a
student's performance on a statewide assessment as one of multiple criteria to determine
grade promotion or retention. A school, school district, or charter school may use a high
school student's performance on a statewide assessment as a percentage of the student's
final grade in a course, or place a student's assessment score on the student's transcript.

Sec. 7.

Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:

Subd. 2.

Eligibility; board composition.

Except for the representatives of higher
education and the public, to be eligible for appointment to the Board of Teaching a person
must be a teacher currently teaching in a Minnesota school and fully licensed for the
position held and have at least five years teaching experience in Minnesota, including the
two years immediately preceding nomination and appointment. Each nominee, other than
a public nominee, must be selected on the basis of professional experience and knowledge
of teacher education, accreditation, and licensure. The board must be composed of:

(1) six teachers who are currently teaching in a Minnesota school new text begin or who were
teaching at the time of the appointment new text end , at least four of whom must be teaching in a
public school;

(2) one higher education representative, who must be a faculty member preparing
teachers;

(3) one school administrator; and

(4) three members of the public, two of whom must be present or former members
of school boards.

Sec. 8.

Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:

Subd. 3.

Vacant position.

new text begin With the exception of a teacher who retires from teaching
during the course of completing a board term, new text end the position of a member who leaves
Minnesota or whose employment status changes to a category different from that from
which appointed is deemed vacant.

Sec. 9.

Minnesota Statutes 2008, section 123A.05, is amended to read:

123A.05 deleted text begin AREA LEARNING CENTER deleted text end new text begin STATE-APPROVED ALTERNATIVE
PROGRAM new text end ORGANIZATION.

Subdivision 1.

Governance.

new text begin (a) new text end A district may establish an area learning center
deleted text begin either by itself or in cooperation with other districts deleted text end , new text begin alternative learning program, or
contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d),
and 124D.69.
new text end

new text begin (b) An area learning center is encouraged to cooperate with new text end a service cooperative, an
intermediate school district, a local education and employment transitions partnership,
public and private secondary and postsecondary institutions, public agencies, businesses,
and foundations. Except for a district located in a city of the first class, deleted text begin a deleted text end new text begin an area
learning new text end center new text begin must be established in cooperation with other districts and new text end must serve
the geographic area of at least two districts. new text begin An area learning center must provide
comprehensive educational services to enrolled secondary students throughout the year,
including a daytime school within a school or separate site for both high school and
middle school level students.
new text end

new text begin (c) An alternative learning program may serve the students of one or more districts,
may designate which grades are served, and may make program hours and a calendar
optional.
new text end

new text begin (d) A contract alternative is an alternative learning program operated by a private
organization that has contracted with a school district to provide educational services for
students under section 124D.68, subdivision 2.
new text end

Subd. 2.

Reserve revenue.

Each district that is a member of an area learning center
new text begin or alternative learning program new text end must reserve revenue in an amount equal to the sum of (1)
at least 90 percent of the district average general education revenue per pupil unit minus
an amount equal to the product of the formula allowance according to section 126C.10,
subdivision 2, times .0485, calculated without basic skills revenue and transportation
sparsity revenue, times the number of pupil units attending an area learning center new text begin or
alternative learning new text end program under this section, plus (2) the amount of basic skills revenue
generated by pupils attending the area learning center new text begin or alternative learning program new text end . The
amount of reserved revenue under this subdivision may only be spent on program costs
associated with the area learning center new text begin or alternative learning program new text end .

Subd. 3.

Access to services.

A deleted text begin center deleted text end new text begin state-approved alternative program new text end shall have
access to the district's regular education programs, special education programs, technology
facilities, and staff. It may contract with individuals or postsecondary institutions. It shall
seek the involvement of community education programs, postsecondary institutions,
interagency collaboratives, culturally based organizations, mutual assistance associations,
and other community resources, businesses, and other federal, state, and local public
agencies.

Subd. 4.

Nonresident pupils.

A pupil who does not reside in the district may
attend a deleted text begin center deleted text end new text begin state-approved alternative program new text end without consent of the school board of
the district of residence.

Sec. 10.

Minnesota Statutes 2008, section 123A.06, is amended to read:

123A.06 deleted text begin CENTER deleted text end new text begin STATE-APPROVED ALTERNATIVE new text end PROGRAMS AND
SERVICES.

Subdivision 1.

Program focus.

(a) The programs and services of a deleted text begin center deleted text end new text begin
state-approved alternative program new text end must focus on academic and learning skills, applied
learning opportunities, trade and vocational skills, work-based learning opportunities,
work experience, youth service to the community, transition services, and English
language and literacy programs for children whose primary language is a language other
than English. Applied learning, work-based learning, and service learning may best be
developed in collaboration with a local education and transitions partnership, culturally
based organizations, mutual assistance associations, or other community resources.
In addition to offering programs, the deleted text begin center deleted text end new text begin state-approved alternative program new text end shall
coordinate the use of other available educational services, special education services,
social services, health services, and postsecondary institutions in the community and
services area.

(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school
district may provide an alternative education program for a student who is within the
compulsory attendance age under section 120A.20, and who is involved in severe or
repeated disciplinary action.

Subd. 2.

People to be served.

A deleted text begin center deleted text end new text begin state-approved alternative program new text end shall
provide programs for secondary pupils and adults. A center may also provide programs
and services for elementary and secondary pupils who are not attending the deleted text begin center deleted text end new text begin
state-approved alternative program new text end to assist them in being successful in school. deleted text begin A center
shall use research-based best practices for serving limited English proficient students and
their parents. deleted text end An individual education plan team may identify a deleted text begin center deleted text end new text begin state-approved
alternative program new text end as an appropriate placement to the extent a deleted text begin center deleted text end new text begin state-approved
alternative program new text end can provide the student with the appropriate special education services
described in the student's plan. Pupils eligible to be served are those who qualify under
the graduation incentives program in section 124D.68, subdivision 2, those enrolled
under section 124D.02, subdivision 2, or those pupils who are eligible to receive special
education services under sections 125A.03 to 125A.24, and 125A.65.

Subd. 3.

Hours of instruction exemption.

Notwithstanding any law to the contrary,
the new text begin area learning new text end center programs must be available throughout the entire year. deleted text begin A center
may petition the state board under Minnesota Rules, part 3500.1000, for exemption from
other rules.
deleted text end

Subd. 4.

Granting a diploma.

Upon successful completion of the new text begin area learning
new text end center program, a pupil is entitled to receive a high school diploma. The pupil may elect
to receive a diploma from either the district of residence or the district in which the new text begin area
learning new text end center is located.

Sec. 11.

Minnesota Statutes 2008, section 123A.08, is amended to read:

123A.08 deleted text begin CENTER deleted text end new text begin STATE-APPROVED ALTERNATIVE PROGRAM
new text end FUNDING.

Subdivision 1.

Outside sources for resources and services.

A deleted text begin center deleted text end new text begin
state-approved alternative program new text end may accept:

(1) resources and services from postsecondary institutions serving deleted text begin center deleted text end new text begin
state-approved alternative program new text end pupils;

(2) resources from Job Training Partnership Act programs, including funding for
jobs skills training for various groups and the percentage reserved for education;

(3) resources from the Department of Human Services and county welfare funding;

(4) resources from a local education and employment transitions partnership; or

(5) private resources, foundation grants, gifts, corporate contributions, and other
grants.

Subd. 2.

General education aid.

Payment of general education aid for nonresident
pupils enrolled in deleted text begin the center deleted text end new text begin area learning centers and alternative learning programs new text end must
be made according to section 127A.47, subdivision 7.

Subd. 3.

Special education revenue.

Payment of special education revenue for
nonresident pupils enrolled in the deleted text begin center deleted text end new text begin state-approved alternative program new text end must be made
according to section deleted text begin 125A.15 deleted text end new text begin 127A.47, subdivision 7 new text end .

Sec. 12.

Minnesota Statutes 2008, section 123B.51, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Temporary closing. new text end

new text begin A school district that proposes to temporarily close a
schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
for three or fewer years is not subject to subdivision 5 if the school board holds a public
meeting and allows public comment on the schoolhouse's future.
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. 13.

Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply for full-time enrollment in an approved online learning program under section
124D.03, 124D.08 or 124D.10 deleted text begin , or for supplemental online learning deleted text end . Notwithstanding
sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in new text begin supplemental new text end online
learning shall be as provided in this subdivision. A student age 17 or younger must
have the written consent of a parent or guardian to apply. No school district or charter
school may prohibit a student from applying to enroll in online learning. In order that a
student may enroll in online learning, the student and the student's parents must submit an
application to the online learning provider and identify the reason for enrolling in online
learning. The online learning provider that accepts a student under this section must within
ten days notify the student and the enrolling district in writing if the enrolling district is
not the online learning provider. The student and family must notify the online learning
provider of their intent to enroll in online learning within ten days of acceptance, at which
time the student and parent must sign a statement of assurance that they have reviewed the
online course or program and understand the expectations of online learning enrollment.
The online learning provider must notify the enrolling district of the student's deleted text begin enrollment deleted text end new text begin
application to enroll new text end in online learning in writing on a form provided by the department.

(b) Supplemental online learning notification to the enrolling district upon student
deleted text begin enrollment in deleted text end new text begin application to new text end the online learning deleted text begin program deleted text end new text begin provider new text end will include the
courses or program, credits to be awarded, new text begin and new text end the start date of online enrollment deleted text begin , and
confirmation that the courses will meet the student's graduation plan deleted text end . new text begin An online learning
provider must make available to the enrolling district the course syllabus in a format
established by the commissioner that identifies the state standards met by the course,
content outline, assessment requirements, expectations for actual teacher contact time,
other student-to-teacher communication, and academic support for supplemental online
courses taken by students in the enrolling district. Within 15 days after the online learning
provider makes information in this paragraph available to the enrolling district, the
enrolling district must either confirm or deny to the online provider that the student,
parent, or guardian, and enrolling district have agreed the courses meet the enrolling
district's graduation requirements. An online learning course or program that meets
or exceeds a graduation standard or grade progression requirements at the enrolling
district as demonstrated on the online provider's syllabus must be considered to meet the
corresponding graduation requirements of the student in the enrolling district. new text end A student
may enroll in supplemental online learning courses up to the midpoint of the enrolling
district's term. The enrolling district may waive this requirement for special circumstances
and upon acceptance by the online provider.

(c) An online learning provider must notify the commissioner that it is delivering
online learning and report the number of online learning students it is accepting and the
online learning courses and programs it is delivering.

(d) An online learning provider may limit enrollment if the provider's school board
or board of directors adopts by resolution specific standards for accepting and rejecting
students' applications.

(e) An enrolling district may reduce an online learning student's regular classroom
instructional membership in proportion to the student's membership in online learning
courses.

new text begin (f) The online provider must report or make available individual student progress
and credit accumulation to the student, parent or guardian, and enrolling district in a
manner specified by the commissioner unless another manner is agreed upon by the
enrolling district and the online provider and submitted to the commissioner. The enrolling
district must designate a contact person to assist in the facilitation and monitoring of
student progress and credit accumulation towards graduation status.
new text end

Sec. 14.

Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:

Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. deleted text begin An online learning provider
must make available to the enrolling district the course syllabus, standard alignment,
content outline, assessment requirements, and contact information for supplemental online
courses taken by students in the enrolling district. deleted text end The enrolling district must apply the
same graduation requirements to all students, including online learning students, and
must continue to provide nonacademic services to online learning students. If a student
completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the course
schedule of an online learning student in proportion to the number of online learning
courses the student takes from an online learning provider that is not the enrolling district.

(b) An online learning student may:

(1) enroll in supplemental online learning courses during a single school year to a
maximum of 50 percent of the student's full schedule of courses per term. A student may
exceed the supplemental online learning registration limit if the enrolling district grants
permission for supplemental online learning enrollment above the limit, or if an agreement
is made between the enrolling district and the online learning provider for instructional
services;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

(c) An online learning student has the same access to the computer hardware and
education software available in a school as all other students in the enrolling district. An
online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

(d) An enrolling district may offer online learning to its enrolled students. Such
online learning does not generate online learning funds under this section. An enrolling
district that offers online learning only to its enrolled students is not subject to the
reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota
license must assemble and deliver instruction to enrolled students receiving online
learning from an enrolling district. The delivery of instruction occurs when the student
interacts with the computer or the teacher and receives ongoing assistance and assessment
of learning. The instruction may include curriculum developed by persons other than a
teacher with a Minnesota license.

(e) An online learning provider that is not the enrolling district is subject to
the reporting requirements and review criteria under subdivision 7. A teacher with a
Minnesota license must assemble and deliver instruction to online learning students. The
delivery of instruction occurs when the student interacts with the computer or the teacher
and receives ongoing assistance and assessment of learning. The instruction may include
curriculum developed by persons other than a teacher with a Minnesota license. Unless
the commissioner grants a waiver, a teacher providing online learning instruction must not
instruct more than 40 students in any one online learning course or program.

(f) To enroll in more than 50 percent of the student's full schedule of courses per term
in online learning, the student must qualify to exceed the supplemental online learning
registration limit under paragraph (b) or apply for enrollment to an approved full-time
online learning program following appropriate procedures in subdivision 3, paragraph (a).
Full-time online learning students may enroll in classes at a local school per contract for
instructional services between the online learning provider and the school district.

Sec. 15.

Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:

Subd. 7.

Department of Education.

(a) The department must review and
certify online learning providers. The online learning courses and programs must be
rigorous, aligned with state academic standards, and contribute to grade progression
in a single subject. deleted text begin Online learning providers must demonstrate to the commissioner
that online learning courses have equivalent standards or instruction, curriculum, and
assessment requirements as other courses offered to enrolled students. The online
learning provider must also demonstrate expectations for actual teacher contact time
or other student-to-teacher communication. deleted text end new text begin The online provider must provide written
assurance that: (1) all courses meet state academic standards; and (2) the online learning
curriculum, instruction, and assessment, expectations for actual teacher-contact time or
other student-to-teacher communication, and academic support meet nationally recognized
professional standards and are demonstrated as such in a syllabus provided according to
the commissioner's requirements. new text end Once an online learning provider is approved under
this paragraph, all of its online learning course offerings are eligible for payment under
this section unless a course is successfully challenged by an enrolling district or the
department under paragraph (b).

(b) An enrolling district may challenge the validity of a course offered by an online
learning provider. The department must review such challenges based on the certification
procedures under paragraph (a). The department may initiate its own review of the validity
of an online learning course offered by an online learning provider.

(c) The department may collect a fee not to exceed $250 for certifying online
learning providers or $50 per course for reviewing a challenge by an enrolling district.

(d) The department must develop, publish, and maintain a list of approved online
learning providers and online learning courses and programs that it has reviewed and
certified.

Sec. 16.

Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to
read:

Subd. 10.

Online Learning Advisory Council.

(a) An Online Learning Advisory
Council is established under section 15.059, except that the term for each council member
shall be three years. The advisory council is composed of 12 members from throughout
the state who have demonstrated experience with or interest in online learning. The
members of the council shall be appointed by the commissioner. The advisory council
shall bring to the attention of the commissioner any matters related to online learning and
provide input to the department in matters related, but not restricted, to:

(1) quality assurance;

(2) teacher qualifications;

(3) program approval;

(4) special education;

(5) attendance;

(6) program design and requirements; and

(7) fair and equal access to programs.

(b) new text begin Notwithstanding section 15.059, subdivision 5, new text end the Online Learning Advisory
Council under this subdivision expires June 30, deleted text begin 2008 deleted text end new text begin 2013 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively to June 30, 2008.
new text end

Sec. 17.

Minnesota Statutes 2008, section 124D.10, is amended to read:

124D.10 CHARTER SCHOOLS.

Subdivision 1.

Purposes.

(a) The purpose of this section is to:

(1) improve pupil learning;

(2) increase learning opportunities for pupils;

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

(4) require the measurement of learning outcomes and create different and
innovative forms of measuring outcomes;

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

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

(b) This section does not provide a means to keep open a school that otherwise
would be closed. Applicants in these circumstances bear the burden of proving that
conversion to a charter school fulfills a purpose specified in this subdivision, independent
of the school's closing.

Subd. 2.

Applicability.

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

Subd. 2a.

Charter School Advisory Council.

(a) A Charter School Advisory
Council is established deleted text begin under section 15.059 except that deleted text end new text begin . new text end The term for each council
member deleted text begin shall be deleted text end new text begin is new text end three years. The advisory council is composed of deleted text begin seven deleted text end new text begin nine new text end members
deleted text begin from throughout the state who have demonstrated experience with or interest in charter
schools. The members of the council shall be appointed by the commissioner. The
advisory council shall bring to the attention of the commissioner any matters related to
charter schools that the council deems necessary and shall: deleted text end new text begin . The members may include
charter school authorizers, charter school personnel, public kindergarten through grade 12
teachers, school board members, parents of currently enrolled kindergarten through grade
12 public school students, and school district representatives.
new text end

deleted text begin (1) encourage school boards to make full use of charter school opportunities;
deleted text end

deleted text begin (2) encourage the creation of innovative schools;
deleted text end

deleted text begin (3) provide leadership and support for charter school sponsors to increase the
innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
deleted text end

deleted text begin (4) serve an ombudsman function in facilitating the operations of new and existing
charter schools;
deleted text end

deleted text begin (5) promote timely financial management training for newly elected members of
a charter school board of directors and ongoing training for other members of a charter
school board of directors; and
deleted text end

deleted text begin (6) facilitate compliance with auditing and other reporting requirements. The
advisory council shall refer all its proposals to the commissioner who shall provide time
for reports from the council.
deleted text end

new text begin The commissioner shall appoint the council members. The commissioner shall
consider geographic balance when appointing council members. The advisory council
shall advise and make recommendations to the commissioner on authorizing charter
schools and other charter school matters, including:
new text end

new text begin (1) approving, reviewing, and disciplining authorizers consistent with this section;
new text end

new text begin (2) supporting innovation, effectiveness, accountability, and fiscal soundness;
new text end

new text begin (3) providing a management training program for administrators and board members;
new text end

new text begin (4) complying with auditing and other financial reporting requirements; and
new text end

new text begin (5) reviewing new applications and proposed grade and program expansions.
new text end

(b) The Charter School Advisory Council under this subdivision expires June 30,
deleted text begin 2007 deleted text end new text begin 2015 new text end .

Subd. 3.

deleted text begin Sponsor deleted text end new text begin Authorizer new text end .

(a) new text begin The following organizations may authorize one
or more charter schools:
new text end

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

new text begin (2) a new text end charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986 new text begin , excluding a house of worship and 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 house of worship, new text end that new text begin :
new text end

new text begin (i) new text end is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
Foundations deleted text begin , deleted text end new text begin ;
new text end

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

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

new text begin (iv) resides in the state of Minnesota new text end ;

new text begin (3) a new text end Minnesota private college 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 deleted text begin , deleted text end governed by the Board of Trustees of the Minnesota
State Colleges and Universities; or the University of Minnesota deleted text begin may sponsor one or
more charter schools. deleted text end new text begin ; or
new text end

deleted text begin (b) deleted text end new text begin (4) new text end 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 deleted text begin sponsor deleted text end new text begin authorize new text end one or more charter schools if the charter
school has operated for at least three years under a different deleted text begin sponsor deleted text end new text begin authorizer new text end and if the
nonprofit corporation has existed for at least 25 years.

new text begin (b) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting an 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 days of receiving the application. The commissioner, in establishing criteria for
approval, must consider the applicant's ability to:
new text end

new text begin (1) establish an application process for a charter school board that includes timelines,
requirements, and expectations;
new text end

new text begin (2) use precisely defined, rigorous criteria to evaluate the educational, organizational,
and fiscal plans of a charter school board;
new text end

new text begin (3) define in the chartering agreement the rights and responsibilities of the charter
school board for governing the school's educational program, controlling funds, and
making school management decisions;
new text end

new text begin (4) implement an accountability system that provides valid, reliable, timely, and
accessible data to the authorizer on the ability of the charter school board to satisfy its
academic, organizational, legal, and fiscal responsibilities;
new text end

new text begin (5) follow a detailed process for renewing the chartering agreement that reflects the
agreed upon rights and responsibilities of the authorizer and the charter school board, and
is consistent with this section; and
new text end

new text begin (6) base a decision to renew a chartering agreement on credible evidence that
demonstrates the academic, organizational, and financial competency of the charter school
and its board, including their success in increasing student achievement and meeting the
goals of the chartering agreement.
new text end

new text begin (c) The authorizer must participate in ongoing department-approved training.
new text end

new text begin (d) An authorizer that chartered a school before August 1, 2009, must apply by June
30, 2012, to the commissioner for approval to continue as an authorizer under this section.
An authorizer that fails to submit an application is unable to charter a school.
new text end

new text begin (e) The commissioner shall review an authorizer's performance every five years in
a manner and form determined by the commissioner. The commissioner shall issue a
report to the authorizer upon completing the review. If, consistent with this section, the
commissioner finds that an authorizer has not performed satisfactorily, the commissioner
may subject the authorizer to corrective action, which may include terminating a
chartering agreement with the board of a school it authorized.
new text end

new text begin (f) The commissioner may take corrective action against an authorizer or terminate
an authorizer's ability to charter a school for:
new text end

new text begin (1) failing to satisfy the criteria under which the authorizer was approved;
new text end

new text begin (2) failing to perform satisfactorily as an approved authorizer; or
new text end

new text begin (3) violating an element of the chartering agreement between the authorizer and
charter school board.
new text end

Subd. 4.

Formation of school.

(a) deleted text begin A sponsor deleted text end new text begin An authorizer new text end may authorize one or
more licensed teachers under section 122A.18, subdivision 1, to operate a charter school
subject to approval by the commissioner. deleted text begin A board must vote on charter school application
for sponsorship no later than 90 days after receiving the application. deleted text end The school must be
organized and operated as a cooperative under chapter 308A or nonprofit corporation
under chapter 317A and the provisions under the applicable chapter shall apply to the
school except as provided in this section. Notwithstanding sections 465.717 and 465.719,
a school district may create a corporation for the purpose of creating a charter school.

(b) Before the operators may deleted text begin form deleted text end new text begin establish new text end and operate a school, the deleted text begin sponsor deleted text end new text begin
authorizer new text end must file an affidavit with the commissioner stating its intent to deleted text begin authorize a deleted text end
charter new text begin a new text end school. The affidavit must state the terms and conditions under which the deleted text begin sponsor deleted text end new text begin
authorizer new text end would deleted text begin authorize a deleted text end charter new text begin a new text end school and how the deleted text begin sponsor deleted text end new text begin authorizer new text end intends
to oversee the fiscal and student performance of the charter school and to comply with
the terms of the written contract between the deleted text begin sponsor deleted text end new text begin authorizer new text end and the charter school
board of directors under subdivision 6. The commissioner must approve or disapprove
the deleted text begin sponsor's proposed authorization deleted text end new text begin authorizer's proposed affidavit new text end within deleted text begin 90 deleted text end new text begin 60 new text end days of
receipt of the affidavit. Failure to obtain commissioner approval precludes deleted text begin a sponsor
deleted text end new text begin an authorizer new text end from deleted text begin authorizing deleted text end new text begin chartering new text end the deleted text begin charter deleted text end school that was the subject of the
affidavit.

(c) The operators authorized to organize and operate a school, before entering into a
contract or other agreement for professional or other services, goods, or facilities, must
incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
chapter 317A and must establish a board of directors composed of at least five members new text begin
who are not related parties as defined in this section new text end until a timely election for members of
the charter school board of directors is held according to the school's articles and bylaws.
A charter school board of directors must be composed of at least five members new text begin who are
not related parties as defined in this section new text end . Any staff members who are employed at the
school, including teachers providing instruction under a contract with a cooperative, and
all parents new text begin or legal guardians new text end of children enrolled in the school may participate in the
election for members of the school's board of directors. Licensed teachers employed at the
school, including teachers providing instruction under a contract with a cooperative, must
be a majority of the members of the board of directors before the school completes its
third year of operation, unless the commissioner waives the requirement for a majority of
licensed teachers on the board. Board of director meetings must comply with chapter 13D.

(d) new text begin Every charter school board member shall attend department-approved training on
board governance, the board's role and responsibilities, financial management standards
and practices, and employment policies and practices. A board member who does not
complete the required training within one year of being appointed to the board is ineligible
to continue serving on the board.
new text end

new text begin (e) new text end The granting or renewal of a charter by deleted text begin a sponsoring entity deleted text end new text begin an authorizer new text end must
not be conditioned upon the bargaining unit status of the employees of the school.

deleted text begin (e) A sponsor deleted text end new text begin (f) The granting or renewing of a charter by an authorizer must
not be contingent on a requirement that the charter school board contract, lease, or
purchase goods or services from the authorizer. A party to such an arrangement between
an authorizer and a board must disclose the arrangement to the commissioner. The
commissioner may terminate a contract for goods or services under this section if the
commissioner determines that an arrangement exists.
new text end

new text begin (g) The charter school shall not offer any services or goods of value to students,
parents, or guardians as an inducement, term, or condition of enrolling a student in a
charter school.
new text end

new text begin (h) The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section.
new text end

new text begin (i) An authorizer new text end may deleted text begin authorize deleted text end new text begin permit new text end the deleted text begin operators deleted text end new text begin board of directors new text end of a charter
school to expand the operation of the charter school to additional sites or to add additional
grades at the school beyond those described in the deleted text begin sponsor's application deleted text end new text begin authorizer's
affidavit new text end as approved by the commissioner only after submitting a supplemental
application to the commissioner in a form and manner prescribed by the commissioner.
The supplemental application must provide evidence that:

(1) the expansion deleted text begin of deleted text end new text begin proposed by new text end the charter school is supported by need and
projected enrollment;

new text begin (2) the expansion of the charter school is supported, at a minimum, by improved
academic performance and growth on statewide assessments under chapter 120B;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end the charter school is fiscally sound;

deleted text begin (3) deleted text end new text begin (4) new text end the deleted text begin sponsor supports the deleted text end new text begin charter school has the physical and financial capacity
to implement the proposed new text end expansion; and

deleted text begin (4) deleted text end new text begin (5) new text end the building of the additional site meets all health and safety requirements to
be eligible for lease aid.

deleted text begin (f) The commissioner annually must provide timely financial management training
to newly elected members of a charter school board of directors and ongoing training to
other members of a charter school board of directors. Training must address ways to:
deleted text end

deleted text begin (1) proactively assess opportunities for a charter school to maximize all available
revenue sources;
deleted text end

deleted text begin (2) establish and maintain complete, auditable records for the charter school;
deleted text end

deleted text begin (3) establish proper filing techniques;
deleted text end

deleted text begin (4) document formal actions of the charter school, including meetings of the charter
school board of directors;
deleted text end

deleted text begin (5) properly manage and retain charter school and student records;
deleted text end

deleted text begin (6) comply with state and federal payroll record-keeping requirements; and
deleted text end

deleted text begin (7) address other similar factors that facilitate establishing and maintaining complete
records on the charter school's operations.
deleted text end

Subd. 4a.

Conflict of interest.

(a) deleted text begin A member of a charter school board of directors deleted text end new text begin
An individual new text end is prohibited from serving as a member of the board of directors or as an
employee or agent of or a contractor with a for-profit entity with whom the charter school
contracts, directly or indirectly, for professional services, goods, or facilities. A violation
of this prohibition renders a contract deleted text begin voidable at the option of the commissioner deleted text end new text begin void new text end .
A member of a charter school board of directors who violates this prohibition shall be
individually liable to the charter school for any damage caused by the violation.

(b) An individual may serve as a member of the board of directors if no conflict of
interest under paragraph (a) exists.

(c) deleted text begin A member of a charter school board of directors that serves as a member of the
board of directors or as an employee or agent of or a contractor with a nonprofit entity
with whom the charter school contracts, directly or indirectly, for professional services,
goods, or facilities, must disclose all potential conflicts to the commissioner.
deleted text end

deleted text begin (d) deleted text end The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed by the charter school who also serves as a
member of the board of directors.

deleted text begin (e) deleted text end new text begin (d) new text end The conflict of interest provisions under this subdivision do not apply to a
teacher who provides services to a charter school through a cooperative formed under
chapter 308A when the teacher also serves on the charter school board of directors.

new text begin (e) The commissioner may reduce a charter school's aid under section 127A.42 or
127A.43 if the charter school fails to correct a violation under this subdivision.
new text end

Subd. 5.

Conversion of existing schools.

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

Subd. 6.

new text begin Charter new text end contract.

The deleted text begin sponsor's authorization for deleted text end new text begin authorizer's chartering
of new text end a deleted text begin charter deleted text end school must be in the form of a written contract signed by the deleted text begin sponsor deleted text end new text begin
authorizer new text end and the board of directors of the charter school. The contract must be
deleted text begin completed deleted text end new text begin signed new text end within 90 days of the commissioner's approval of the deleted text begin sponsor's proposed
authorization deleted text end new text begin authorizer's proposed affidavit. The authorizer shall submit a copy of the
signed contract within ten days of its execution to the commissioner new text end . The contract for a
charter school must be in writing and contain at least the following:

(1) a description of a program that carries out one or more of the purposes in
subdivision 1;

(2) specific outcomes pupils are to achieve under subdivision 10;

(3) admission policies and procedures;

(4) management and administration of the school;

(5) requirements and procedures for program and financial audits;

(6) how the school will comply with subdivisions 8, 13, 16, and 23;

(7) assumption of liability by the charter school;

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

(9) the term of the contract, which may be up to three years new text begin for the initial contract,
and up to five years for a renewed contract based on a demonstration of the school met the
academic, financial, and operational terms of the contract new text end ;

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

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

new text begin (12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
closure is a termination for cause, voluntary termination, or nonrenewal of the contract,
including: establishing the respective responsibilities of the school board of directors and
the authorizer; and providing for notice to the commissioner, authorizer, and parents of
enrolled students of the closure, the transfer of student records to the students' resident
districts, and procedures for closing financial operations.
new text end

Subd. 6a.

Audit report.

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

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

new text begin (c) new text end If the commissioner receives deleted text begin as part of the deleted text end new text begin an new text end audit report deleted text begin a management letter deleted text end
indicating that a material weakness exists in the financial reporting systems of a charter
school, the charter school must submit a written report to the commissioner explaining
how the material weakness will be resolved.

new text begin (d) new text end Upon the request of an individual, the charter school must make available in a
timely fashion the minutes of meetings of members, the board of directors, and committees
having any of the authority of the board of directors, and statements showing the financial
result of all operations and transactions affecting income and surplus during the school's
last annual accounting period and a balance sheet containing a summary of its assets and
liabilities as of the closing date of the accounting period.

Subd. 7.

Public status; exemption from statutes and rules.

A charter school is a
public school and is part of the state's system of public education. deleted text begin Except as provided in
this section, a charter school is exempt from all statutes and rules applicable to a school, a
board, or a district, although it may elect to comply with one or more provisions of statutes
or rules. deleted text end new text begin A charter school is exempt from all statutes and rules applicable to a school,
school board, or school district unless a statute or rule is made specifically applicable to a
charter school or is included in this section.
new text end

Subd. 8.

State and local requirements.

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

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

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

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

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

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

deleted text begin (f) deleted text end new text begin (g) new text end A charter school may not charge tuition.

deleted text begin (g) deleted text end new text begin (h) new text end A charter school is subject to and must comply with chapter 363A and
section 121A.04.

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

deleted text begin (i) deleted text end new text begin (j) new text end A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district. Audits must be conducted in compliance with generally
accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
and section 6.65. A charter school is subject to and must comply with sections 15.054;
118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
471.38; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13,
and 15; 471.881; and 471.89. The audit must comply with the requirements of sections
123B.75 to 123B.83, except to the extent deviations are necessary because of the program
at the school. Deviations must be approved by the commissioner new text begin and authorizer new text end . The
Department of Education, state auditor, deleted text begin or deleted text end legislative auditor new text begin , or authorizer new text end may conduct
financial, program, or compliance audits. A charter school determined to be in statutory
operating debt under sections 123B.81 to 123B.83 must submit a plan under section
123B.81, subdivision 4.

deleted text begin (j) deleted text end new text begin (k) new text end A charter school is a district for the purposes of tort liability under chapter 466.

deleted text begin (k) deleted text end new text begin (l) new text end A charter school must comply with new text begin chapters 13 and 13D; and new text end sections deleted text begin 13.32; deleted text end
120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.

deleted text begin (l) deleted text end new text begin (m) new text end A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

new text begin (n) A school offering online courses or programs must comply with section
124D.095.
new text end

new text begin (o) The commissioner may reduce a charter school's state aid under section 127A.42
or 127A.43 if the charter school board fails to correct a violation under this section.
new text end

Subd. 9.

Admission requirements.

A charter school may limit admission to:

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

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

(3) residents of a specific geographic area where the percentage of the population
of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
population in the congressional district in which the geographic area is located, and as
long as the school reflects the racial and ethnic diversity of the specific area.

A charter school shall enroll an eligible pupil who submits a timely application,
unless the number of applications exceeds the capacity of a program, class, grade level,
or building. In this case, pupils must be accepted by lot. If a charter school is the only
school located in a deleted text begin town deleted text end new text begin municipality new text end serving pupils within a particular grade level, then
pupils that are residents of the deleted text begin town deleted text end new text begin municipality new text end must be given preference for enrollment
before accepting pupils by lot. If a pupil lives within two miles of a charter school and
the next closest public school is more than five miles away, the charter school must give
those pupils preference for enrollment before accepting other pupils by lot. new text begin The charter
school must develop and publish a lottery policy and process that it must use when
accepting pupils by lot.
new text end

A charter school shall give preference for enrollment to a sibling of an enrolled pupil
and to a foster child of that pupil's parents new text begin and may give preference for enrollment to
children of the school's employees new text end before accepting other pupils by lot.

A charter school may not limit admission to pupils on the basis of intellectual ability,
measures of achievement or aptitude, or athletic ability.

Subd. 10.

Pupil performance.

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

Subd. 11.

Employment and other operating matters.

A charter school must
employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
who hold valid licenses to perform the particular service for which they are employed in
the school. The charter school's state aid may be reduced under section deleted text begin 127A.42 deleted text end new text begin 127A.43 new text end
if the school employs a teacher who is not appropriately licensed or approved by the
board of teaching. The school may employ necessary employees who are not required to
hold teaching licenses to perform duties other than teaching and may contract for other
services. The school may discharge teachers and nonlicensed employees. new text begin The charter
school board must comply with section 181.932. The charter school board must enter into
a written contract with each teacher that outlines the terms and conditions of employment.
new text end A person, without holding a valid administrator's license, may perform administrative,
supervisory, or instructional leadership duties.

The board of directors also shall decide matters related to the operation of the school,
including budgeting, curriculum and operating procedures.

Subd. 12.

Pupils with a disability.

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

Subd. 13.

Length of school year.

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

Subd. 14.

Annual public reports.

A charter school must report at least annually
to its deleted text begin sponsor deleted text end new text begin authorizer new text end and the commissioner the information required by the deleted text begin sponsor deleted text end new text begin
authorizer new text end or the commissioner. The reports are public data under chapter 13.

Subd. 15.

Review and comment.

(a) deleted text begin The department must review and comment on
the evaluation, by the sponsor, of the performance of a charter school before the charter
school's contract is renewed for another contract term. The sponsor must submit to the
commissioner timely information for the review and comment. deleted text end new text begin The authorizer shall
provide a formal, written evaluation of the school's performance before the authorizer
renews the charter contract. The department must review and comment on the authorizer's
evaluation process at the time the authorizer submits its application for approval and each
time the authorizer undergoes its five-year review under subdivision 3.
new text end

(b) deleted text begin A sponsor deleted text end new text begin An authorizer new text end shall monitor and evaluate the fiscal and student
performance of the school, and may for this purpose annually assess a charter school deleted text begin : deleted text end deleted text begin (1)
in its first, second, or third year of operation up to $30 per student up to a maximum of
$10,000; and (2) in its fourth or a subsequent year of operation up to $10 per student up to
a maximum of $3,500 deleted text end new text begin the greater of (1) $5,000, or (2) the lesser of (i) $25,000 or (ii) the
product of 1.0 percent of the basic formula allowance for that year and the charter school's
pupil units for that year in fiscal years 2010 through 2014. The authorizer may assess a
charter school the greater of (1) $5,000, or (2) the lesser of (i) $25,000 or (ii) the product
of 1.5 percent of the basic formula allowance for that year and the charter school's pupil
units for that year beginning in fiscal year 2015 new text end .

Subd. 16.

Transportation.

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

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

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

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

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

Subd. 17.

Leased space.

A charter school may lease space from a board eligible to
be deleted text begin a sponsor deleted text end new text begin an authorizer new text end or other public or private nonprofit nonsectarian organization.
If a charter school is unable to lease appropriate space from an eligible board or other
public or private nonprofit nonsectarian organization, the school may lease space from
another nonsectarian organization if the Department of Education, in consultation with
the Department of Administration, approves the lease. If the school is unable to lease
appropriate space from public or private nonsectarian organizations, the school may lease
space from a sectarian organization if the leased space is constructed as a school facility
and the Department of Education, in consultation with the Department of Administration,
approves the lease.

Subd. 18.

Authority to raise initial working capital.

deleted text begin A sponsor deleted text end new text begin An authorizer new text end
may deleted text begin authorize a deleted text end charter new text begin a new text end school before the applicant has secured its space, equipment,
facilities, and personnel if the applicant indicates the authority is necessary for it to raise
working capital. deleted text begin A sponsor deleted text end new text begin An authorizer new text end may not deleted text begin authorize deleted text end new text begin charter new text end a school before the
commissioner has approved the authorization.

Subd. 19.

Disseminate information.

The deleted text begin sponsor deleted text end new text begin authorizer new text end , the operators, and the
Department of Education must disseminate information to the public on how to form and
operate a charter school and how to utilize the offerings of a charter school. Particular
groups to be targeted include low-income families and communities, and students of color.

Subd. 20.

Leave to teach in a charter school.

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school,
the district must grant the leave. The district must grant a leave not to exceed a total of
five years. Any request to extend the leave shall be granted only at the discretion of the
school board. The district may require that the request for a leave or extension of leave
be made deleted text begin up to 90 days before the teacher would otherwise have to report for duty deleted text end new text begin before
February 1 in the school year preceding the school year in which the teacher intends
to return, or February 1 of the calendar year in which the teacher's leave is scheduled
to terminate new text end . Except as otherwise provided in this subdivision and except for section
122A.46, subdivision 7, the leave is governed by section 122A.46, including, but not
limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account by paying both the employer and employee
contributions based upon the annual salary of the teacher for the last full pay period before
the leave began. The retirement association may impose reasonable requirements to
efficiently administer this subdivision.

Subd. 21.

Collective bargaining.

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

Subd. 22.

Teacher and other employee retirement.

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

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

Subd. 23.

Causes for nonrenewal or termination of charter school contract.

(a)
The duration of the contract with deleted text begin a sponsor deleted text end new text begin an authorizer new text end must be for the term contained in
the contract according to subdivision 6. The deleted text begin sponsor deleted text end new text begin authorizer new text end may or may not renew a
contract at the end of the term for any ground listed in paragraph (b). deleted text begin A sponsor deleted text end new text begin An
authorizer new text end may unilaterally terminate a contract during the term of the contract for any
ground listed in paragraph (b). At least 60 days before not renewing or terminating a
contract, the deleted text begin sponsor deleted text end new text begin authorizer new text end shall notify the board of directors of the charter school
of the proposed action in writing. The notice shall state the grounds for the proposed
action in reasonable detail and that the charter school's board of directors may request
in writing an informal hearing before the sponsor within 14 days of receiving notice of
nonrenewal or termination of the contract. Failure by the board of directors to make a
written request for a hearing within the 14-day period shall be treated as acquiescence to
the proposed action. Upon receiving a timely written request for a hearing, the sponsor
shall give reasonable notice to the charter school's board of directors of the hearing date.
The deleted text begin sponsor deleted text end new text begin authorizer new text end shall conduct an informal hearing before taking final action. The
deleted text begin sponsor deleted text end new text begin authorizer new text end shall take final action to renew or not renew a contract deleted text begin by the last day
of classes in the school year. If the sponsor is a local board, the school's board of directors
may appeal the sponsor's decision to the commissioner deleted text end new text begin no later than 30 days before the
proposed date for terminating the contract or the end date of the contract new text end .

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

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

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

(3) violations of law; or

(4) other good cause shown.

If a contract is terminated or not renewed under this paragraph, the school must
be dissolved according to the applicable provisions of chapter 308A or 317A, except
when the commissioner approves the decision of a different eligible deleted text begin sponsor deleted text end new text begin authorizer new text end to
deleted text begin authorize the deleted text end charter new text begin the new text end school.

(c) If at the end of a contract term, deleted text begin either deleted text end the deleted text begin sponsor or deleted text end new text begin authorizer and new text end the charter
school board of directors deleted text begin wants deleted text end new text begin mutually agree new text end to voluntarily deleted text begin terminate deleted text end new text begin not renew new text end the
contract, a change in deleted text begin sponsors deleted text end new text begin authorizers new text end is allowed if the commissioner approves the
decision of a different eligible deleted text begin sponsor deleted text end new text begin authorizer new text end to deleted text begin authorize the deleted text end charter new text begin the new text end school. deleted text begin The
party intending to terminate the contract must notify the other party and the commissioner
of its intent at least 90 days before the date on which the contract ends. deleted text end The deleted text begin sponsor deleted text end new text begin
authorizer new text end that is a party to the existing contract at least must inform deleted text begin the approved deleted text end new text begin any new text end
different eligible deleted text begin sponsor deleted text end new text begin authorizer new text end about the fiscal and student performance of the
school. new text begin The parties seeking to not renew the contract jointly must submit their intent in
writing to the commissioner at least 90 days before the end date of the contract. Before the
commissioner determines whether to grant a change of authorizer, the commissioner must
first determine whether the charter school and prospective new authorizer can identify and
effectively resolve any circumstances that caused the current authorizer and the charter
school to not renew the contract. new text end If no different eligible deleted text begin sponsor deleted text end new text begin authorizer new text end is approved,
the school must be dissolved according to applicable law and the terms of the contract.

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

(1) new text begin failure to meet pupil performance requirements contained in the contract;
new text end

new text begin (2) new text end financial mismanagement; or

deleted text begin (2) repeated deleted text end new text begin (3) new text end violations of the law.

Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party as defined in subdivision 26, unless
the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).

(b) new text begin For purposes of this section and section 124D.11:
new text end

new text begin (1) "related party" means an affiliate or close relative of the other party in question,
an affiliate of a close relative, or a close relative of an affiliate;
new text end

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

new text begin (3) "close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin;
new text end

new text begin (4) "person" means an individual or entity of any kind; and
new text end

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

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

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

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

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

Subd. 25.

Extent of specific legal authority.

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

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

(c) The commissioner, deleted text begin a sponsor deleted text end new text begin an authorizer new text end , members of the board of deleted text begin a sponsor deleted text end new text begin
an authorizer new text end in their official capacity, and employees of a sponsor are immune from civil
or criminal liability with respect to all activities related to a charter school they approve or
deleted text begin sponsor deleted text end new text begin authorize new text end . The board of directors shall obtain at least the amount of and types of
insurance deleted text begin required by the contract, according to subdivision 6. deleted text end new text begin up to the applicable tort
liability limits under chapter 466. The charter school board must submit a copy of the
insurance policy to its authorizer and the commissioner before starting operations. The
charter school board must submit changes in its insurance carrier or policy to its authorizer
and the commissioner within 30 days of the change.
new text end

deleted text begin Subd. 26. deleted text end

deleted text begin Definitions. deleted text end

deleted text begin For purposes of this section and section 124D.11:
deleted text end

deleted text begin (1) A "Related party" is an affiliate or close relative of the other party in question, an
affiliate of a close relative, or a close relative of an affiliate.
deleted text end

deleted text begin (2) "Affiliate" means a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, another
person.
deleted text end

deleted text begin (3) "Close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin.
deleted text end

deleted text begin (4) "Person" means an individual or entity of any kind.
deleted text end

deleted text begin (5) "Control" includes the terms "controlling," "controlled by," and "under common
control with" and means the possession, direct or indirect, of the power to direct or cause
the direction of the management, operations, or policies of a person, whether through the
ownership of voting securities, by contract, or otherwise.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 2a, paragraph (b), is effective retroactively to
June 30, 2007.
new text end

Sec. 18.

Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:

Subd. 9.

Payment of aids to charter schools.

(a) Notwithstanding section
127A.45, subdivision 3, aid payments for the current fiscal year to a charter school deleted text begin not in
its first year of operation deleted text end shall be of an equal amount on each of the deleted text begin 23 deleted text end new text begin 24 new text end payment dates.
deleted text begin A charter school in its first year of operation shall receive, on its first payment date, ten
percent of its cumulative amount guaranteed for the year and 22 payments of an equal
amount thereafter the sum of which shall equal the current year aid payment percentage
multiplied by the cumulative amount guaranteed. deleted text end

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

(c) new text begin If a charter school fails to comply with the commissioner's directive to return, for
cause, federal grant funds administered by the department or, within the timeline under
section 471.425, fails to pay a school district or service cooperative after receiving an
undisputed invoice for goods and services, the commissioner may withhold an amount
of state aid sufficient to satisfy the claim and shall distribute the withheld aid to the
school district, intermediate school district, or service cooperative. A school district,
intermediate school district, or education cooperative shall notify the commissioner when
a charter school fails to pay an undisputed invoice within 90 days of when it received
the original invoice.
new text end

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

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

deleted text begin (e) deleted text end new text begin (f) new text end Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.

Sec. 19.

Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:

Subd. 2.

Commissioner designation.

(a) deleted text begin An area learning center deleted text end new text begin A state-approved
alternative program new text end designated by the state must be a site. deleted text begin An area learning center deleted text end new text begin A
state-approved alternative program new text end must provide services to students who meet the criteria
in section 124D.68 and who are enrolled in:

(1) a district that is served by the deleted text begin center deleted text end new text begin state-approved alternative program new text end ; or

(2) a charter school located within the geographic boundaries of a district that is
served by the deleted text begin center deleted text end new text begin state-approved alternative program new text end .

(b) A school district or charter school may be approved biennially by the state to
provide additional instructional programming that results in grade level acceleration. The
program must be designed so that students make grade progress during the school year
and graduate prior to the students' peers.

(c) To be designated, a district, charter school, or deleted text begin center deleted text end new text begin state-approved alternative
program new text end must demonstrate to the commissioner that it will:

(1) provide a program of instruction that permits pupils to receive instruction
throughout the entire year; and

(2) develop and maintain a separate record system that, for purposes of section
126C.05, permits identification of membership attributable to pupils participating in the
program. The record system and identification must ensure that the program will not have
the effect of increasing the total average daily membership attributable to an individual
pupil as a result of a learning year program. The record system must include the date the
pupil originally enrolled in a learning year program, the pupil's grade level, the date of
each grade promotion, the average daily membership generated in each grade level, the
number of credits or standards earned, and the number needed to graduate.

(d) A student who has not completed a school district's graduation requirements
may continue to enroll in courses the student must complete in order to graduate until
the student satisfies the district's graduation requirements or the student is 21 years old,
whichever comes first.

Sec. 20.

Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:

Subd. 3.

Student planning.

A district, charter school, or deleted text begin area learning center deleted text end new text begin
state-approved alternative program new text end must inform all pupils and their parents about the
learning year program and that participation in the program is optional. A continual
learning plan must be developed at least annually for each pupil with the participation
of the pupil, parent or guardian, teachers, and other staff; each participant must sign and
date the plan. The plan must specify the learning experiences that must occur during the
entire fiscal year and are necessary for grade progression or, for secondary students,
graduation. The plan must include:

(1) the pupil's learning objectives and experiences, including courses or credits the
pupil plans to complete each year and, for a secondary pupil, the graduation requirements
the student must complete;

(2) the assessment measurements used to evaluate a pupil's objectives;

(3) requirements for grade level or other appropriate progression; and

(4) for pupils generating more than one average daily membership in a given grade,
an indication of which objectives were unmet.

The plan may be modified to conform to district schedule changes. The district may
not modify the plan if the modification would result in delaying the student's time of
graduation.

Sec. 21.

Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:

Subd. 2.

Eligible pupils.

A pupil under the age of 21 or who meets the requirements
of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation
incentives program, if the pupil:

(1) performs substantially below the performance level for pupils of the same age
in a locally determined achievement test;

(2) is at least one year behind in satisfactorily completing coursework or obtaining
credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

(5) has been excluded or expelled according to sections 121A.40 to 121A.56;

(6) has been new text begin appropriately new text end referred new text begin in accordance with section 124D.68, subdivision
1, new text end by a school district for enrollment in an eligible program or a program pursuant to
section 124D.69;

(7) is a victim of physical or sexual abuse;

(8) has experienced mental health problems;

(9) has experienced homelessness sometime within six months before requesting a
transfer to an eligible program;

(10) speaks English as a second language or has limited English proficiency; or

(11) has withdrawn from school or has been chronically truant; or

(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
other life threatening illness or is the sibling of an eligible pupil who is being currently
treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
of the seven-county metropolitan area.

Sec. 22.

Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:

Subd. 3.

Eligible programs.

(a) A pupil who is eligible according to subdivision 2
may enroll in deleted text begin area learning centers deleted text end new text begin a state-approved alternative program new text end under sections
123A.05 to 123A.08.

(b) A pupil who is eligible according to subdivision 2 and who is deleted text begin between the ages
of 16 and 21 deleted text end new text begin a high school junior or senior new text end may enroll in postsecondary courses under
section 124D.09.

(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary
or secondary education program.

(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic,
nonsectarian school that has contracted with the serving school district to provide
educational services. However, notwithstanding other provisions of this section, only a
pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative
school that is specifically structured to provide educational services to such a pupil.

(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic
education programs approved under section 124D.52 and operated under the community
education program contained in section 124D.19.

Sec. 23.

Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:

Subd. 4.

Additional eligible program.

A pupil who is at least 16 years of age,
who is eligible under subdivision 2, deleted text begin clause (a), deleted text end and who has been enrolled only in a
public school, if the pupil has been enrolled in any school, during the year immediately
before transferring under this subdivision, may transfer to any nonpublic school that has
contracted with the serving school district to provide nonsectarian educational services.
The school must enroll every eligible pupil who seeks to transfer to the school under
this program subject to available space.

Sec. 24.

Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:

Subd. 5.

Pupil enrollment.

Any eligible pupil may apply to enroll in an eligible
program. Approval of the resident district is not required for:

(1) an eligible pupil to enroll in any eligible program in a nonresident district
under subdivision 3 or 4 or deleted text begin an area learning center deleted text end new text begin a state-approved alternative program new text end
established under section 123A.05; or

(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
program approved under section 124D.52.

Sec. 25.

Minnesota Statutes 2008, section 125A.15, is amended to read:

125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.

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

(a) The district of residence of a child shall be the district in which the child's parent
resides, if living, or the child's guardian, or the district designated by the commissioner if
neither parent nor guardian is living within the state.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2008, section 125A.51, is amended to read:

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

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

(a) The school district of residence of the pupil is the district in which the pupil's
parent or guardian resides.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:

Subd. 15.

Learning year pupil units.

(a) When a pupil is enrolled in a learning
year program under section 124D.128, an area learning center new text begin or an alternative learning
program approved by the commissioner new text end under sections 123A.05 and 123A.06, deleted text begin an
alternative program approved by the commissioner, deleted text end or a contract alternative program
under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than
1,020 hours in a school year for a secondary student, more than 935 hours in a school year
for an elementary student, or more than 425 hours in a school year for a kindergarten
student without a disability, that pupil may be counted as more than one pupil in average
daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess
of one pupil must be determined by the ratio of the number of hours of instruction
provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours
required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii)
the greater of 935 hours or the number of hours required for a full-time elementary pupil
in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of
425 hours or the number of hours required for a full-time kindergarten student without a
disability in the district to 425 for a kindergarten student without a disability. Hours that
occur after the close of the instructional year in June shall be attributable to the following
fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average
daily membership under this subdivision. A student in grades 1 through 12 must not be
counted as more than 1.2 pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an new text begin area learning center
or new text end alternative new text begin learning new text end program that has an independent study component, a district
must meet the requirements in this paragraph. The district must develop, for the pupil,
a continual learning plan consistent with section 124D.128, subdivision 3. Each school
district that has deleted text begin a state-approved public deleted text end new text begin an area learning center or new text end alternative new text begin learning
new text end program must reserve revenue in an amount equal to at least 90 percent of the district
average general education revenue per pupil unit deleted text begin less compensatory revenue per pupil
unit deleted text end new text begin , minus an amount equal to the product of the formula allowance according to section
126C.10, subdivision 2, times .0485, calculated without basic skills and transportation
sparsity revenue, new text end times the number of pupil units generated by students attending deleted text begin a
state-approved public deleted text end new text begin an area learning center or new text end alternative new text begin learning new text end program. The amount
of reserved revenue available under this subdivision may only be spent for program costs
associated with the deleted text begin state-approved public deleted text end new text begin area learning center or new text end alternative new text begin learning
new text end program. deleted text begin Compensatory revenue must be allocated according to section 126C.15,
subdivision 2. deleted text end new text begin Basic skills revenue generated by pupils attending the eligible program
must be allocated according to section 126C.10, subdivision 4.
new text end

(ii) General education revenue for a pupil in deleted text begin an approved deleted text end new text begin a state-approved new text end
alternative program without an independent study component must be prorated for a
pupil participating for less than a full year, or its equivalent. The district must develop a
continual learning plan for the pupil, consistent with section 124D.128, subdivision 3.
Each school district that has deleted text begin a state-approved public deleted text end new text begin an area learning center or new text end alternative
new text begin learning new text end program must reserve revenue in an amount equal to at least 90 percent of the
district average general education revenue per pupil unit deleted text begin less compensatory revenue per
pupil unit deleted text end new text begin , minus an amount equal to the product of the formula allowance according
to section 126C.10, subdivision 2, times .0485, calculated without basic skills and
transportation sparsity revenue, new text end times the number of pupil units generated by students
attending deleted text begin a state-approved public deleted text end new text begin an area learning center or new text end alternative new text begin learning new text end program.
The amount of reserved revenue available under this subdivision may only be spent for
program costs associated with the deleted text begin state-approved public deleted text end new text begin area learning center or new text end alternative
new text begin learning new text end program. deleted text begin Compensatory revenue must be allocated according to section 126C.15,
subdivision 2. deleted text end new text begin Basic skills revenue generated by pupils attending the eligible program
must be allocated according to section 126C.10, subdivision 4. new text end

(iii) General education revenue for a pupil in deleted text begin an deleted text end new text begin a state- new text end approved alternative program
that has an independent study component must be paid for each hour of teacher contact
time and each hour of independent study time completed toward a credit or graduation
standards necessary for graduation. Average daily membership for a pupil shall equal the
number of hours of teacher contact time and independent study time divided by 1,020.

(iv) For deleted text begin an deleted text end new text begin a state-approved new text end alternative program having an independent study
component, the commissioner shall require a description of the courses in the program, the
kinds of independent study involved, the expected learning outcomes of the courses, and
the means of measuring student performance against the expected outcomes.

Sec. 28.

Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:

Subd. 20.

Project-based average daily membership.

(a) new text begin Project-based is an
instructional program where students complete coursework for credit at an individual pace
that is primarily student-led and may be completed on site, in the community, or online.
A project-based program may be made available to all or selected students and grades
in a school. new text end To receive general education revenue for a pupil enrolled in a public school
with a project-based program, a school must meet the requirements in this paragraph.
The school must:

(1) deleted text begin register with the commissioner as a project-based program by May 30 of the
preceding fiscal year deleted text end new text begin apply and receive approval from the commissioner as a project-based
program at least 90 days prior to starting the program new text end ;

(2) provide a minimum teacher contact of no less than one hour per week per
project-based credit for each pupil;

new text begin (3) ensure that the program will not increase the total average daily membership
generated by the student and that there will be the expectation that the students will be
making typical progression towards high school graduation;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end maintain a record system that shows when each credit or portion thereof was
reported for membership for each pupil; and

deleted text begin (4) deleted text end new text begin (5) new text end report pupil membership consistent with paragraph (b).

(b) The commissioner must develop a formula for reporting pupil membership to
compute average daily membership for each deleted text begin registered deleted text end new text begin approved new text end project-based deleted text begin school deleted text end new text begin
program new text end . Average daily membership for a pupil in deleted text begin a registered deleted text end new text begin an approved new text end project-based
program is the lesser of:

(1) 1.0; or

(2) the ratio of (i) the number of membership hours generated by project-based
credits completed during the school year plus membership hours generated by credits
completed in a seat-based setting to (ii) the annual required instructional hours at that
grade level. Membership hours for a partially completed project-based credit must be
prorated. new text begin General education revenue for a pupil in a project-based program must be
prorated for a pupil participating for less than a full year, or its equivalent.
new text end

new text begin (c) For a program that has not been approved by the commissioner for project-based
learning but an auditor or other site visit deems that any portion or credits awarded by the
school are project-based, student membership must be computed per paragraph (b).
new text end

Sec. 29. new text begin APPOINTMENTS TO CHARTER SCHOOL ADVISORY COUNCIL.
new text end

new text begin The commissioner shall complete the appointments required under Minnesota
Statutes, section 124D.10, subdivision 2a, no later than September 1, 2009. The
commissioner's designee shall convene the first meeting of the council no later than
October 1, 2009.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2008, section 124D.60, subdivision 1, is amended to
read:

Subdivision 1.

Notice.

Within deleted text begin ten deleted text end new text begin 30 new text end days after the enrollment of any pupil in an
instructional program for limited English proficient students, the district in which the pupil
resides must notify the parent by mail. This notice must:

(1) be in writing in English and in the primary language of the pupil's parents;

(2) inform the parents that their child has been enrolled in an instructional program
for limited English proficient students;

(3) contain a simple, nontechnical description of the purposes, method and content
of the program;

(4) inform the parents that they have the right to visit the educational program for
limited English proficient students in which their child is enrolled;

(5) inform the parents of the time and manner in which to request and receive a
conference for the purpose of explaining the nature and purpose of the program; and

(6) inform the parents of their rights to withdraw their child from an educational
program for limited English proficient students and the time and manner in which to do so.

The department shall, at the request of the district, prepare the notice in the primary
language of the parent.

Sec. 2.

Minnesota Statutes 2008, section 125A.28, is amended to read:

125A.28 STATE INTERAGENCY COORDINATING COUNCIL.

An Interagency Coordinating Council of at least 17, but not more than 25 members
is established, in compliance with Public Law 108-446, section 641. The members
must be appointed by the governor. Council members must elect the council chair. The
representative of the commissioner may not serve as the chair. The council must be
composed of at least five parents, including persons of color, of children with disabilities
under age 12, including at least three parents of a child with a disability under age seven,
five representatives of public or private providers of services for children with disabilities
under age five, including a special education director, county social service director,
local Head Start director, and a community health services or public health nursing
administrator, one member of the senate, one member of the house of representatives, one
representative of teacher preparation programs in early childhood-special education or
other preparation programs in early childhood intervention, at least one representative of
advocacy organizations for children with disabilities under age five, one physician who
cares for young children with special health care needs, one representative each from the
commissioners of commerce, education, health, human services, a representative from the
state agency responsible for child care, foster care, mental health, homeless coordinator
of education of homeless children and youth, and a representative from Indian health
services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council.
The council must meet at least quarterly.

The council must address methods of implementing the state policy of developing
and implementing comprehensive, coordinated, multidisciplinary interagency programs of
early intervention services for children with disabilities and their families.

The duties of the council include recommending policies to ensure a comprehensive
and coordinated system of all state and local agency services for children under age five
with disabilities and their families. The policies must address how to incorporate each
agency's services into a unified state and local system of multidisciplinary assessment
practices, individual intervention plans, comprehensive systems to find children in need of
services, methods to improve public awareness, and assistance in determining the role of
interagency early intervention committees.

On the date that Minnesota Part C Annual Performance Report is submitted to the
federal Office of Special Education, the council must recommend to the governor and the
commissioners of education, health, human services, commerce, and employment and
economic development policies for a comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the State Interagency Coordinating
Council expires on June 30, deleted text begin 2009 deleted text end new text begin 2014 new text end .

Sec. 3.

Minnesota Statutes 2008, section 125A.69, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Trial placement. new text end

new text begin A parent may apply for a child who meets state
disability entrance criteria for being deaf, hard of hearing, blind, or visually impaired and
resides within the state of Minnesota. Upon completion of the application process, the
child may attend the academies for a 60-day trial placement. At the conclusion of the trial
placement, a meeting with academies staff and the parent will occur to determine if the
academies are the appropriate placement.
new text end

Sec. 4.

Minnesota Statutes 2008, section 125A.744, subdivision 3, is amended to read:

Subd. 3.

Implementation.

Consistent with section 256B.0625, subdivision 26,
school districts may enroll as medical assistance providers or subcontractors and bill
the Department of Human Services under the medical assistance fee for service claims
processing system for special education services which are covered services under chapter
256B, which are provided in the school setting for a medical assistance recipient, and for
whom the district has secured informed consent consistent with section 13.05, subdivision
4, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type
of covered service. School districts shall be reimbursed by the commissioner of human
services for the federal share of individual education plan health-related services that
qualify for reimbursement by medical assistance, minus up to five percent retained by the
commissioner of human services for administrative costs deleted text begin , not to exceed $350,000 per
fiscal year deleted text end . The commissioner may withhold up to five percent of each payment to a
school district. Following the end of each fiscal year, the commissioner shall settle up with
each school district in order to ensure that collections from each district for departmental
administrative costs are made on a pro rata basis according to federal earnings for these
services in each district. A school district is not eligible to enroll as a home care provider
or a personal care provider organization for purposes of billing home care services under
sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human
services issues a bulletin instructing county public health nurses on how to assess for the
needs of eligible recipients during school hours. To use private duty nursing services or
personal care services at school, the recipient or responsible party must provide written
authorization in the care plan identifying the chosen provider and the daily amount
of services to be used at school.

ARTICLE 4

LIBRARIES

Section 1.

Minnesota Statutes 2008, section 134.31, subdivision 4a, is amended to read:

Subd. 4a.

Services to deleted text begin the blind and physically handicapped deleted text end new text begin people with visual
and physical disabilities new text end .

The Minnesota Department of Education shall provide
specialized services to deleted text begin the blind and physically handicapped deleted text end new text begin people with visual and
physical disabilities new text end through the Minnesota new text begin Braille and Talking Book new text end Library deleted text begin for the Blind
and Physically Handicapped deleted text end under a cooperative plan with the National Library Services
for the Blind and Physically Handicapped of the Library of Congress.

Sec. 2.

Minnesota Statutes 2008, section 134.31, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Telephone or electronic meetings. new text end

new text begin (a) Notwithstanding section 13D.01,
the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
a meeting of its members by telephone or other electronic means so long as the following
conditions are met:
new text end

new text begin (1) all members of the committee participating in the meeting, wherever their
physical locations, can hear one another and can hear all discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting location of the committee
can hear all discussion, testimony, and votes of the members of the committee;
new text end

new text begin (3) at least one member of the committee is physically present at the regular meeting
location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
new text end

new text begin (b) Each member of the committee participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining quorum
and participating in all proceedings.
new text end

new text begin (c) If telephone or other electronic means is used to conduct a meeting, to the extent
practical, the committee shall allow a person to monitor the meeting electronically from a
remote location. The committee may require the person making the connection to pay
for the documented additional costs that the committee incurs as a result of the additional
connection.
new text end

new text begin (d) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the committee shall provide notice of the regular meeting location,
the fact that some members may participate by telephone or other electronic means, and
the provisions of paragraph (c). The timing and method of providing notice is governed
by section 13D.04.
new text end

ARTICLE 5

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2008, section 124D.135, subdivision 3, is amended to
read:

Subd. 3.

Early childhood family education levy.

(a) By September 30 of each
year, the commissioner shall establish a tax rate for early childhood family education
revenue that raises $22,135,000 in each fiscal year. If the amount of the early childhood
family education levy would exceed the early childhood family education revenue, the
early childhood family education levy must equal the early childhood family education
revenue. deleted text begin Beginning with levies for fiscal year 2011, a district may not certify an early
childhood family education levy unless it has met the annual program data reporting and
biennial plan requirements under section 124D.13, subdivision 13.
deleted text end

(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
establish a tax rate for early education revenue that raises $13,565,000.

Sec. 2.

new text begin [124D.145] EARLY LEARNING SYSTEM.
new text end

new text begin The early learning system is defined to be the coherent structure of
research-based curriculum content, instructional practice, program and child assessment,
performance-based child and programmatic standards, professional development,
engagement and outreach, accountability, financing, and governance efforts that contribute
to all aspects of children's development and to prepare all children for kindergarten. This
includes children's readiness for success in meeting Minnesota's kindergarten academic
standards under section 120B.021. The system is delivered through a variety of public and
private child care, preschool, Head Start, and school-based programs and services.
new text end

Sec. 3.

Minnesota Statutes 2008, section 124D.15, subdivision 1, is amended to read:

Subdivision 1.

Establishment; purpose.

A district or a group of districts may
establish a school readiness program for children age three to kindergarten entrance.
The purpose of a school readiness program is to prepare children to enter kindergarten new text begin ,
especially children most at-risk for being unprepared for kindergarten new text end .

Sec. 4.

Minnesota Statutes 2008, section 124D.15, subdivision 3, is amended to read:

Subd. 3.

Program requirements.

A school readiness program provider must:

(1) assess each child's cognitive skills new text begin with a comprehensive child assessment
instrument new text end when the child enters and again before the child leaves the program to inform
program planning new text begin and parents new text end and promote kindergarten readiness;

(2) provide comprehensive program content new text begin and intentional instructional practice
aligned with the state early childhood learning guidelines and kindergarten standards and
new text end based on early childhood research and professional practice that is focused on children's
cognitive new text begin , social, emotional, and physical new text end skills and development and prepares children
for the transition to kindergarten, including early literacy skills;

new text begin (3) coordinate appropriate kindergarten transition with parents and kindergarten
teachers;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end arrange for early childhood screening and appropriate referral;

deleted text begin (4) deleted text end new text begin (5) new text end involve parents in program planning and decision making;

deleted text begin (5) deleted text end new text begin (6) new text end coordinate with relevant community-based services; deleted text begin and
deleted text end

deleted text begin (6) deleted text end new text begin (7) new text end cooperate with adult basic education programs and other adult literacy
programs deleted text begin . deleted text end new text begin ;
new text end

new text begin (8) ensure staff-child ratios of one to ten and maximum group size of 20 children
with the first staff required to be a teacher; and
new text end

new text begin (9) serve children a minimum of 12 hours per week.
new text end

Sec. 5.

Minnesota Statutes 2008, section 124D.15, is amended by adding a subdivision
to read:

new text begin Subd. 10a. new text end

new text begin Teachers. new text end

new text begin A school board must employ necessary qualified teachers
trained in early childhood curriculum content, instruction, and competency as determined
by the commissioner. Areas of competency include early childhood development, child
observation and assessment, and curriculum planning.
new text end

Sec. 6.

Minnesota Statutes 2008, section 124D.15, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Program rating. new text end

new text begin A district school readiness program receives a rating
of four stars in any publicly funded pilot early childhood quality rating system. Upon
completion of the quality rating system pilot evaluation, the commissioner shall review
the pilot evaluation and findings to determine if they are consistent with a four-star rating
for a district's school readiness program.
new text end

Sec. 7.

Minnesota Statutes 2008, section 124D.19, subdivision 10, is amended to read:

Subd. 10.

Youth service programs.

(a) A school board may offer, as part of a
community education program with a youth development program, a youth service
program that provides young people with meaningful opportunities to become involved in
their community, develop individual capabilities, make career connections, seek support
networks and services, become active citizens, and address community needs through
youth service. The board may award up to one credit, or the equivalent, toward graduation
for a pupil who completes the youth service requirements of the district. The community
education advisory council, after considering the results of the commissioner's study
under section 124D.50, subdivision 1, must design the program in cooperation with the
district planning, evaluating and reporting committee and local organizations that train
volunteers or need volunteers' services.

(b) Programs must include:

(1) preliminary training for pupil volunteers conducted, when possible, by
organizations experienced in such training;

(2) supervision of the pupil volunteers to ensure appropriate placement and adequate
learning opportunity;

(3) sufficient opportunity, in a positive setting for human development, for pupil
volunteers to develop general skills in preparation for employment, to enhance self-esteem
and self-worth, and to give genuine service to their community;

(4) integration of academic learning with the service experience; and

(5) integration of youth community service with elementary and secondary
curriculum.

(c) Youth service projects include, but are not limited to, the following:

(1) human services for the elderly, including home care and related services;

(2) tutoring and mentoring;

(3) training for and providing emergency services;

(4) services at extended day programs;

(5) environmental services; and

(6) service-learning programs in which schools, including postsecondary schools,
and employers work together with young people to provide them with meaningful
opportunities for community service and with the academic and technical skills that
employers require.

(d) deleted text begin The commissioner shall maintain a list of acceptable projects with a description
of each project. A project that is not on the list must be approved by the commissioner.
deleted text end

deleted text begin (e) deleted text end A youth service project must have a community sponsor that may be a
governmental unit or nonprofit organization. To assure that pupils provide additional
services, each sponsor must assure that pupil services do not displace employees or reduce
the workload of any employee.

deleted text begin (f) deleted text end new text begin (e) new text end The commissioner shall assist districts in planning youth service programs,
implementing programs, and developing recommendations for obtaining community
sponsors.

Sec. 8.

Minnesota Statutes 2008, section 124D.19, subdivision 14, is amended to read:

Subd. 14.

Community education; annual report.

Each district offering a
community education program under this section must annually report to the department
information regarding deleted text begin the cost per participant and cost per contact hour for deleted text end each
community education program, including youth after-school enrichment programs, that
receives aid or levy. deleted text begin The department must include cost per participant and cost per contact
hour information by program in the community education annual report.
deleted text end

Sec. 9.

Minnesota Statutes 2008, section 124D.522, is amended to read:

124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
GRANTS.

(a) The commissioner, in consultation with the policy review task force under
section 124D.521, may make grants to nonprofit organizations to provide services that
are not offered by a district adult basic education program or that are supplemental to
either the statewide adult basic education program, or a district's adult basic education
program. The commissioner may make grants for: staff development for adult basic
education teachers and administrators; training for volunteer tutors; training, services, and
materials for serving disabled students through adult basic education programs; statewide
promotion of adult basic education services and programs; development and dissemination
of instructional and administrative technology for adult basic education programs;
programs which primarily serve communities of color; adult basic education distance
learning projects, including television instruction programs; and other supplemental
services to support the mission of adult basic education and innovative delivery of adult
basic education services.

(b) The commissioner must establish eligibility criteria and grant application
procedures. Grants under this section must support services throughout the state, focus on
educational results for adult learners, and promote outcome-based achievement through
adult basic education programs. Beginning in fiscal year 2002, the commissioner may
make grants under this section from the state total adult basic education aid set aside for
supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
for supplemental service grants must be used for grants for adult basic education programs
to encourage and support innovations in adult basic education instruction and service
delivery. A grant to a single organization cannot exceed deleted text begin $100,000 deleted text end new text begin 20 percent of the total
supplemental services aid new text end . Nothing in this section prevents an approved adult basic
education program from using state or federal aid to purchase supplemental services.

Sec. 10.

Minnesota Statutes 2008, section 299A.297, is amended to read:

299A.297 OTHER DUTIES.

The commissioner of public safety, in consultation with the Chemical Abuse and
Violence Prevention Council, shall:

(1) provide information and assistance upon request to school preassessment teams
established under section 121A.26 deleted text begin and school and community advisory teams established
under section 121A.27 deleted text end ;

(2) provide information and assistance upon request to the State Board of Pharmacy
with respect to the board's enforcement of chapter 152;

(3) cooperate with and provide information and assistance upon request to the
Alcohol and Other Drug Abuse Section in the Department of Human Services;

(4) coordinate the policy of the office with that of the Narcotic Enforcement Unit in
the Bureau of Criminal Apprehension; and

(5) coordinate the activities of the regional drug task forces, provide assistance and
information to them upon request, and assist in the formation of task forces in areas of
the state in which no task force operates.

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 121A.27; and 124D.13, subdivision 13, new text end new text begin are
repealed.
new text end

ARTICLE 6

STATE AGENCIES

Section 1.

Minnesota Statutes 2008, section 127A.08, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Grants and gifts. new text end

new text begin The commissioner may apply for and receive grants
and gifts administered by agencies of the state and other government or nongovernment
sources. Any money received is hereby appropriated and dedicated for the purpose for
which it is granted.
new text end

ARTICLE 7

TECHNICAL CORRECTIONS

Section 1.

Minnesota Statutes 2008, section 120B.02, is amended to read:

120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

(a) The legislature is committed to establishing rigorous academic standards for
Minnesota's public school students. To that end, the commissioner shall adopt in rule
statewide academic standards. The commissioner shall not prescribe in rule or otherwise
the delivery system, classroom assessments, or form of instruction that school sites must
use. For purposes of this chapter, a school site is a separate facility, or a separate program
within a facility that a local school board recognizes as a school site for funding purposes.

(b) All commissioner actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and
schools;

(2) any state action regarding the rule must evidence consideration of school district
autonomy; and

(3) the Department of Education, with the assistance of school districts, must make
available information about all state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is appropriate, comprehensive, and
readily understandable.

(c) When fully implemented, the requirements for high school graduation in
Minnesota must require students to satisfactorily complete, as determined by the school
district, the course credit requirements under section 120B.024 and deleted text begin : deleted text end new text begin successfully pass
graduation examinations as required under section 120B.30.
new text end

deleted text begin (1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
basic skills test requirements; and
deleted text end

deleted text begin (2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
deleted text end

(d) The commissioner shall periodically review and report on the state's assessment
process.

(e) School districts are not required to adopt specific provisions of the federal
School-to-Work programs.

Sec. 2.

Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical education, for which locally developed academic standards
apply; and

(6) the arts, for which statewide or locally developed academic standards apply, as
determined by the school district. Public elementary and middle schools must offer at least
three and require at least two of the following four arts areas: dance; music; theater; and
visual arts. Public high schools must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students deleted text begin , except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate. An
individualized education plan team that makes this determination must establish alternative
standards deleted text end new text begin with appropriate alternate achievement standards based on these academic
standards for students with individualized education plans described under federal law new text end .

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

Sec. 3.

Minnesota Statutes 2008, section 120B.30, subdivision 1, is amended to read:

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent
with subdivision 1a, shall include in the comprehensive assessment system, for each
grade level to be tested, state-constructed tests developed from and aligned with the
state's required academic standards under section 120B.021 and administered annually
to all students in grades 3 through 8 and at the high school level. A state-developed
test in a subject other than writing, developed after the 2002-2003 school year, must
include both machine-scoreable and constructed response questions. The commissioner
shall establish one or more months during which schools shall administer the tests to
students each school year. For students enrolled in grade 8 before the 2005-2006 school
year, only Minnesota basic skills tests in reading, mathematics, and writing shall fulfill
students' basic skills testing requirements for a passing state notation. The passing scores
of basic skills tests in reading and mathematics are the equivalent of 75 percent correct
for students entering grade 9 in 1997 and thereafter, as based on the first uniform test
administration of February 1998.

(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;

(ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;

(iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or

(v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and

(2) for writing:

(i) achieving a passing score on the graduation-required assessment for diploma;

(ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;

(iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or

(iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.

(c) The 3rd through 8th grade and high school level test results shall be available
to districts for diagnostic purposes affecting student learning and district instruction and
curriculum, and for establishing educational accountability. The commissioner must
disseminate to the public the test results upon receiving those results.

(d) State tests must be constructed and aligned with state academic standards. The
testing process and the order of administration shall be determined by the commissioner.
The statewide results shall be aggregated at the site and district level, consistent with
subdivision 1a.

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

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations deleted text begin , deleted text end new text begin or new text end alternate
assessments deleted text begin , or exemptions deleted text end consistent with applicable federal law deleted text begin , only with parent or
guardian approval, for those very few students for whom the student's individual education
plan team under sections 125A.05 and 125A.06 determines that the general statewide test
is inappropriate for a student, or for a limited English proficiency student under section
124D.59, subdivision 2 deleted text end ;

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

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

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

Sec. 4.

Minnesota Statutes 2008, section 120B.31, subdivision 4, is amended to read:

Subd. 4.

Statistical adjustments.

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

Sec. 5.

Minnesota Statutes 2008, section 122A.31, subdivision 4, is amended to read:

Subd. 4.

Reimbursement.

(a) For purposes of revenue under section deleted text begin 125A.78 deleted text end new text begin
125A.76 new text end , the Department of Education must only reimburse school districts for the
services of those interpreters/transliterators who satisfy the standards of competency
under this section.

(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services
of interpreters with a nonrenewable provisional certificate, interpreters/transliterators
employed to mentor the provisional certified interpreters, and persons for whom a
time-limited extension has been granted under subdivision 1, paragraph (d), or subdivision
2, paragraph (c).

Sec. 6.

Minnesota Statutes 2008, section 123B.14, subdivision 7, is amended to read:

Subd. 7.

Clerk records.

The clerk shall keep a record of all meetings of the
district and the board in books provided by the district for that purpose. The clerk shall,
within three days after an election, notify all persons elected of their election. By deleted text begin August deleted text end
new text begin September new text end 15 of each year the clerk shall file with the board a report of the revenues,
expenditures and balances in each fund for the preceding fiscal year. The report together
with vouchers and supporting documents shall subsequently be examined by a public
accountant or the state auditor, either of whom shall be paid by the district, as provided
in section 123B.77, subdivision 3. The board shall by resolution approve the report or
require a further or amended report. By deleted text begin August deleted text end new text begin September new text end 15 of each year, the clerk shall
make and transmit to the commissioner certified reports, showing:

(1) deleted text begin The condition and value of school property;
deleted text end

deleted text begin (2) deleted text end the revenues and expenditures in detail, and such other financial information
required by law, rule, or as may be called for by the commissioner;

deleted text begin (3) deleted text end new text begin (2) new text end the length of school term and the enrollment and attendance by grades; and

deleted text begin (4) deleted text end new text begin (3) new text end such other items of information as may be called for by the commissioner.

The clerk shall enter in the clerk's record book copies of all reports and of the
teachers' term reports, as they appear in the registers, and of the proceedings of any
meeting as furnished by the clerk pro tem, and keep an itemized account of all the
expenses of the district. The clerk shall furnish to the auditor of the proper county, by
deleted text begin October 10 deleted text end new text begin September 30 new text end of each year, an attested copy of the clerk's record, showing
the amount of deleted text begin money deleted text end new text begin proposed property tax new text end voted by the district or the board for school
purposes; draw and sign all orders upon the treasurer for the payment of money for bills
allowed by the board for salaries of officers and for teachers' wages and all claims, to be
countersigned by the chair. Such orders must state the consideration, payee, and the
fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
the order in which they become due, and no money applicable for teachers' wages shall
be used for any other purpose, nor shall teachers' wages be paid from any fund except
that raised or apportioned for that purpose.

Sec. 7.

Minnesota Statutes 2008, section 123B.81, subdivision 3, is amended to read:

Subd. 3.

Debt verification.

The commissioner shall establish a uniform auditing or
other verification procedure for districts to determine whether a statutory operating debt
exists in any Minnesota school district deleted text begin as of June 30, 1977. This procedure must identify
all interfund transfers made during fiscal year 1977 from a fund included in computing
statutory operating debt to a fund not included in computing statutory operating debt deleted text end .
The standards for this uniform auditing or verification procedure must be promulgated
by the state board pursuant to chapter 14. If a district applies to the commissioner for
a statutory operating debt verification deleted text begin or if the unaudited financial statement for the
school year ending June 30, 1977 reveals that a statutory operating debt might exist deleted text end , the
commissioner shall require a verification of the amount of the statutory operating debt
which actually does exist.

Sec. 8.

Minnesota Statutes 2008, section 123B.81, subdivision 4, is amended to read:

Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district
must follow the procedures deleted text begin set forth deleted text end in deleted text begin this deleted text end section new text begin 123B.83 new text end to eliminate this statutory
operating debt.

Sec. 9.

Minnesota Statutes 2008, section 123B.81, subdivision 5, is amended to read:

Subd. 5.

Certification of debt.

The commissioner shall certify the amount of
statutory operating debt for each district. deleted text begin Prior to June 30, 1979, the commissioner may,
on the basis of corrected figures, adjust the total amount of statutory operating debt
certified for any district.
deleted text end

Sec. 10.

Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:

Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. An online learning provider
must make available to the enrolling district the course syllabus, standard alignment,
content outline, assessment requirements, and contact information for supplemental online
courses taken by students in the enrolling district. The enrolling district must apply the
same graduation requirements to all students, including online learning students, and
must continue to provide nonacademic services to online learning students. If a student
completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the course
schedule of an online learning student in proportion to the number of online learning
courses the student takes from an online learning provider that is not the enrolling district.

(b) An online learning student may:

(1) enroll in supplemental online learning courses during a single school year to a
maximum of 50 percent of the student's full schedule of courses per term. A student may
exceed the supplemental online learning registration limit if the enrolling district grants
permission for supplemental online learning enrollment above the limit, or if an agreement
is made between the enrolling district and the online learning provider for instructional
services;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

(c) An online learning student has the same access to the computer hardware and
education software available in a school as all other students in the enrolling district. An
online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

(d) An enrolling district may offer online learning to its enrolled students. Such
online learning does not generate online learning funds under this section. An enrolling
district that offers online learning only to its enrolled students is not subject to the
reporting requirements or review criteria under subdivision 7 new text begin , unless the enrolling district
is a full-time online provider new text end . A teacher with a Minnesota license must assemble and
deliver instruction to enrolled students receiving online learning from an enrolling district.
The delivery of instruction occurs when the student interacts with the computer or the
teacher and receives ongoing assistance and assessment of learning. The instruction may
include curriculum developed by persons other than a teacher with a Minnesota license.

(e) deleted text begin An deleted text end new text begin A full-time or supplemental new text end online learning provider deleted text begin that is not the enrolling
district deleted text end is subject to the reporting requirements and review criteria under subdivision
7. A teacher with a Minnesota license must assemble and deliver instruction to online
learning students. The delivery of instruction occurs when the student interacts with the
computer or the teacher and receives ongoing assistance and assessment of learning. The
instruction may include curriculum developed by persons other than a teacher with a
Minnesota license. Unless the commissioner grants a waiver, a teacher providing online
learning instruction must not instruct more than 40 students in any one online learning
course or program.

(f) To enroll in more than 50 percent of the student's full schedule of courses per term
in online learning, the student must qualify to exceed the supplemental online learning
registration limit under paragraph (b) or apply for enrollment to an approved full-time
online learning program following appropriate procedures in subdivision 3, paragraph (a).
Full-time online learning students may enroll in classes at a local school per contract for
instructional services between the online learning provider and the school district.

Sec. 11.

Minnesota Statutes 2008, section 124D.10, subdivision 6a, is amended to read:

Subd. 6a.

Audit report.

new text begin (a) new text end The charter school must submit an audit report to the
commissioner by December 31 each year.

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

new text begin (c) new text end If the commissioner receives deleted text begin as part of the deleted text end new text begin an new text end audit report deleted text begin a management letter deleted text end
indicating that a material weakness exists in the financial reporting systems of a charter
school, the charter school must submit a written report to the commissioner explaining
how the material weakness will be resolved.

new text begin (d) new text end Upon the request of an individual, the charter school must make available in a
timely fashion the minutes of meetings of members, the board of directors, and committees
having any of the authority of the board of directors, and statements showing the financial
result of all operations and transactions affecting income and surplus during the school's
last annual accounting period and a balance sheet containing a summary of its assets and
liabilities as of the closing date of the accounting period.

Sec. 12.

Minnesota Statutes 2008, section 125A.62, subdivision 8, is amended to read:

Subd. 8.

Grants new text begin and gifts new text end .

The board, through the chief administrators of the
academies, may apply for all competitive grants administered by agencies of the state and
other government or nongovernment sources. Application may not be made for grants
over which the board has discretion. new text begin Any money so received is hereby appropriated and
dedicated for the purpose for which it is granted.
new text end

Sec. 13.

Minnesota Statutes 2008, 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 deleted text begin direct deleted text end 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. new text begin
Essential personnel does not include administrators and supervisors.
new text end

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

(d) "Program growth factor" means 1.046 for fiscal year 2012 and later.

Sec. 14.

Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:

Subd. 34.

Basic alternative teacher compensation aid.

(a) For fiscal years
2007 deleted text begin and later deleted text end new text begin 2008, and 2009 new text end , the basic alternative teacher compensation aid for a
school district with a plan approved under section 122A.414, subdivision 2b, equals deleted text begin 65 deleted text end
new text begin 73.1 new text end percent of the alternative teacher compensation revenue under section 122A.415,
subdivision 1. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.

new text begin (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid for
a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent
of the alternative teacher compensation revenue under section 122A.415, subdivision 1.
The basic alternative teacher compensation aid for an intermediate school district or
charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
the recipient is a charter school, equals $260 times the number of pupils enrolled in the
school on October 1 of the previous year, or on October 1 of the current year for a charter
school in the first year of operation, times the ratio of the sum of the alternative teacher
compensation aid and alternative teacher compensation levy for all participating school
districts to the maximum alternative teacher compensation revenue for those districts
under section 122A.415, subdivision 1.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
1, the state total basic alternative teacher compensation aid entitlement must not exceed
$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
of alternative teacher compensation aid approved under section 122A.415 so as not to
exceed these limits.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2008, section 127A.47, subdivision 5, is amended to read:

Subd. 5.

Notification of resident district.

A district educating a pupil who is
a resident of another district must notify the district of residence within 60 days of the
date the pupil is determined by the district to be a nonresident, but not later than August
1 following the end of the school year in which the pupil is educated. deleted text begin If the district of
residence does not receive a notification from the providing district pursuant to this
subdivision, it is not liable to that district for any tuition billing received after August 1
of the next school year.
deleted text end