SF 3045

as introduced - 86th Legislature (2009 - 2010) Posted on 03/04/2010 03:17pm

A bill for an act
relating to education; providing for prekindergarten through grade 12 education,
including general education, education excellence, special programs, and early
childhood education; amending Minnesota Statutes 2008, sections 11A.16,
subdivision 5; 120B.15; 121A.16; 121A.17, subdivision 5; 122A.16; 123B.75,
subdivision 5; 124D.091, subdivisions 2, 3; 124D.15, by adding a subdivision;
124D.20, subdivision 8; 125A.21, subdivisions 3, 5, 7; 125A.79, subdivision 1;
127A.42, subdivision 2; 127A.43; Minnesota Statutes 2009 Supplement, sections
120B.30, subdivisions 1, 3, 4; 120B.31, subdivision 4; 124D.10, subdivisions
3, 4, 6a, 8, 23, by adding a subdivision; 124D.15, subdivision 3; 125A.02,
subdivision 1; 125A.63, subdivisions 2, 4; 126C.41, subdivision 2; 126C.44;
proposing coding for new law in Minnesota Statutes, chapter 124D; repealing
Minnesota Statutes 2008, section 125A.54.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

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

Subd. 5.

Calculation of income.

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

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

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

Sec. 2.

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

Subd. 5.

Levy recognition.

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

(b) For fiscal year 2004 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:

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

(2) the sum of:

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

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

Sec. 3.

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

Subdivision 1.

Definitions.

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

Subd. 2.

Retired employee health benefits.

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

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

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

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

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

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

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

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

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

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

Sec. 5.

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

126C.44 SAFE SCHOOLS LEVY.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

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

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

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

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

(1) multiple and objective criteria; and

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

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

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

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

Sec. 2.

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

Subdivision 1.

Statewide testing.

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

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

(1) mathematics;

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

(ii) high school level beginning in the 2013-2014 school year;

(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
school year; and

(3) language arts and reading; grades 3 through 8 and high school level beginning in
the 2012-2013 school year.

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

(1) for reading and mathematics:

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

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

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

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

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

(2) for writing:

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

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

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

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

(d) Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (b) are eligible to receive a high school diploma
deleted text begin with a passing state notation deleted text end if they:

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

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

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

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

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

(f) The 3rd through 8th grade and high school tests must be aligned with state
academic standards. The commissioner shall determine the testing process and the order
of administration. The statewide results shall be aggregated at the site and district level,
consistent with subdivision 1a.

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

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations or alternate
assessments;

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

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

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

Sec. 3.

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

Subd. 3.

Reporting.

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

Sec. 4.

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

Subd. 4.

Access to tests.

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

Sec. 5.

Minnesota Statutes 2009 Supplement, section 120B.31, subdivision 4, is
amended to read:

Subd. 4.

deleted text begin Statistical adjustments; deleted text end Student performance data.

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 and growth levels measured at the school,
school district, and statewide level. When collecting and reporting the performance 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. 6.

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

122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

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

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

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

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

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

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

(4) test results from the deleted text begin Praxis II deleted text end new text begin subject area new text end content test;

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

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

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

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

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

Sec. 7.

Minnesota Statutes 2008, section 124D.091, subdivision 2, is amended to read:

Subd. 2.

Eligibility.

A district that offers a concurrent enrollment course according
to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the
costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011,
districts only are eligible for aid if the college or university concurrent enrollment courses
offered by the district are accredited by the National Alliance of Concurrent Enrollment
Partnership, in the process of being accredited, or are shown by clear evidence to be of
comparable standard to accredited courses new text begin , or are technical courses within a recognized
career and technical education program of study approved by the commissioner of
education and the chancellor of the Minnesota State Colleges and Universities new text end .

Sec. 8.

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

Subd. 3.

Aid.

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

Sec. 9.

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

Subd. 3.

Authorizer.

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

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

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

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

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

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

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

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

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

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

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

(iv) is incorporated in the state of Minnesota;

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

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

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

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

(1) capacity and infrastructure;

(2) application criteria and process;

(3) contracting process;

(4) ongoing oversight and evaluation processes; and

(5) renewal criteria and processes.

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

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

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

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

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

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

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

(iv) the school's governance plan;

(v) the financial management plan; and

(vi) the administration and operations plan;

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

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

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

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

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

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

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

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

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

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

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

(3) unsatisfactory performance as an approved authorizer.

Sec. 10.

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

Subd. 4.

Formation of school.

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

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

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

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

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

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

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

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

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

(2) with the authorizer's approval.

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

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

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

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

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

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

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

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

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

new text begin (l) A charter school approved and operating under this section shall not merge with
another charter school without prior approval from the commissioner. The merger shall
comply with chapter 317A and section 124D.11, subdivision 9, paragraph (g). The
commissioner shall review the proposed merger submitted by the proposed surviving
charter school and approve or disapprove the merger based on the following criteria:
new text end

new text begin (i) the financial management plan, including the transfer of assets and liabilities;
new text end

new text begin (ii) the administration and operations plan;
new text end

new text begin (iii) the school's governance plan; and
new text end

new text begin (iv) the academic achievement plan.
new text end

Sec. 11.

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

new text begin Subd. 4b. new text end

new text begin Replication of high-performing charter schools. new text end

new text begin (a) The commissioner
may approve up to five charter or school models proven to emulate highly effective
practices and significantly improve student academic growth and proficiency as measured
by the statewide accountability system under chapter 120B or another state's federally
approved accountability system under the Elementary and Secondary Education Act.
An approved authorizer must submit an application to the commissioner to replicate
high-performing charter schools as a separate new school under an existing or new
charter. The commissioner must evaluate the application under this subdivision against
the following criteria:
new text end

new text begin (1) the financial management plan;
new text end

new text begin (2) the administration and operations plan;
new text end

new text begin (3) the school's governance plan;
new text end

new text begin (4) the academic achievement plan, including targeting at-risk students; and
new text end

new text begin (5) conformity with federal and state law.
new text end

new text begin (b) Replication models approved by the commissioner under this subdivision are
exempt from subdivision 4, paragraph (g), items (i) to (iii), and may operate separate
charter schools under the direction of one single board. The charter school board must
hold elections as outlined in this section and consistent with the charter school board's
bylaws. Each charter school operated under this subdivision must conduct a separate
lottery and enrollment process. Charter schools approved under this subdivision are
eligible to receive state charter school start-up aid as one eligible site and must not receive
start-up aid for multiple sites. The commissioner may only approve up to five charter
sites. An approved applicant must resubmit a new application to the commissioner under
this subdivision to replicate more than five charter school sites. The commissioner shall
have 60 business days to review the application. The commissioner shall notify the
authorizer of any deficiencies in the application and the authorizer will have 20 business
days to address, to the commissioner's satisfaction, any deficiencies in the application.
The commissioner's decision is final.
new text end

Sec. 12.

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

Subd. 6a.

Audit report.

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

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

(c) If the commissioner receives an audit report indicating that a material weakness
exists in the financial reporting systems of a charter school, the charter school must submit
a written report to the commissioner explaining how the material weakness will be
resolved. new text begin The entity that provides professional services to the charter school must provide
information about the school's financial audit to the commissioner upon request.
new text end

Sec. 13.

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

Subd. 23.

Causes for nonrenewal or termination of charter school contract.

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

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

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

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

(3) violations of law; or

(4) other good cause shown.

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

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

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

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

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

(3) deleted text begin repeated or major deleted text end violations of the law.

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

Sec. 14.

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

Subd. 2.

Violations of law.

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

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

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

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

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

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

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

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

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

Sec. 15.

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

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

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

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

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

Subdivision 1.

Child with a disability.

"Child with a disability" means a child
identified under federal and state special education law deleted text begin as having a hearing impairment deleted text end new text begin
who meets the criteria for deaf and hard-of-hearing new text end , deleted text begin blindness, visual disability deleted text end new text begin blind
or visually impaired new text end , speech or language deleted text begin impairment deleted text end new text begin impairments new text end , deleted text begin physical disability deleted text end new text begin
physically impaired new text end , other health deleted text begin impairment deleted text end new text begin disabilities new text end , deleted text begin mental deleted text end new text begin developmental cognitive new text end
disability, deleted text begin emotional/behavioral disorder deleted text end new text begin emotional or behavioral disorders new text end , specific
learning disability, autism new text begin spectrum disorders new text end , traumatic brain injury, deleted text begin multiple disabilities deleted text end new text begin
severely multiply impaired new text end , or deafblind deleted text begin disability deleted text end new text begin and new text end who needs special education
and related services, as determined by the rules of the commissioner deleted text begin , is a child with a
disability deleted text end . A licensed physician, an advanced practice nurse, or a licensed psychologist is
qualified to make a diagnosis and determination of attention deficit disorder or attention
deficit hyperactivity disorder for purposes of identifying a child with a disability.

Sec. 2.

Minnesota Statutes 2008, section 125A.21, subdivision 3, is amended to read:

Subd. 3.

Use of reimbursements.

Of the reimbursements received, districts may:

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

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

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

Sec. 3.

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

Subd. 5.

Informed consent.

When obtaining informed consent, consistent with
sections 13.05, subdivision 4, paragraph (d) deleted text begin ; and 256B.77, subdivision 2, paragraph (p) deleted text end new text begin ,
and Code of Federal Regulations, title 34, parts 99 and 300 new text end , to bill health plans for covered
services, the school district must notify the legal representative (1) that the cost of the
person's private health insurance premium may increase due to providing the covered
service in the school setting, (2) that the school district may pay certain enrollee health
plan costs, including but not limited to, co-payments, coinsurance, deductibles, premium
increases or other enrollee cost-sharing amounts for health and related services required
by an individual service plan, or individual family service plan, and (3) that the school's
billing for each type of covered service may affect service limits and prior authorization
thresholds. The informed consent may be revoked in writing at any time by the person
authorizing the billing of the health plan.

Sec. 4.

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

Subd. 7.

District disclosure of information.

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

Sec. 5.

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

Subd. 2.

Programs.

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

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

Sec. 6.

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

Subd. 4.

Advisory committees.

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

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

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

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

Sec. 7. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall substitute the term "individualized education program"
or similar terms for "individual education plan" or similar terms wherever they appear
in Minnesota Statutes and Minnesota Rules referring to the requirements relating to
the federal Individuals with Disabilities Education Act. The revisor shall also make
grammatical changes related to the changes in terms.
new text end

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

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

ARTICLE 4

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2008, section 121A.16, is amended to read:

121A.16 EARLY CHILDHOOD HEALTH AND DEVELOPMENT
SCREENING; PURPOSE.

The legislature finds that early detection of children's health and developmental
problems can reduce their later need for costly care, minimize their physical and
educational disabilities, and aid in their rehabilitation. The purpose of sections 121A.16
to 121A.19 is to assist parents and communities in improving the health of Minnesota
children and in planning educational and health programs. new text begin Charter schools that elect to
provide a screening program must comply with the requirements of sections 121A.16 to
121A.19.
new text end

Sec. 2.

Minnesota Statutes 2008, section 121A.17, subdivision 5, is amended to read:

Subd. 5.

Developmental screening program information.

The board must inform
each resident family with a child eligible to participate in the developmental screening
program new text begin , and a charter school that provides screening must inform families that apply
for admission to the charter school, new text end about the availability of the program and the state's
requirement that a child receive a developmental screening or provide health records
indicating that the child received a comparable developmental screening from a public or
private health care organization or individual health care provider not later than 30 days
after the first day of attending kindergarten in a public school. A school district must
inform all resident families with eligible children under age seven that their children may
receive a developmental screening conducted either by the school district or by a public or
private health care organization or individual health care provider and that the screening
is not required if a statement signed by the child's parent or guardian is submitted to the
administrator or other person having general control and supervision of the school that
the child has not been screened.

Sec. 3.

Minnesota Statutes 2009 Supplement, section 124D.10, subdivision 8, is
amended to read:

Subd. 8.

Federal, state, and local requirements.

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

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

(c) A school sponsored 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.

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

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

(f) 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.

(g) A charter school may not charge tuition.

(h) A charter school is subject to and must comply with chapter 363A and section
121A.04.

(i) 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.

(j) 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; 471.38; 471.391; 471.392; and
471.425. 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 and authorizer. The Department of
Education, state auditor, legislative auditor, or authorizer 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.

(k) A charter school is a district for the purposes of tort liability under chapter 466.

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

(m) A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

(n) A charter school offering online courses or programs must comply with section
124D.095.

(o) A charter school and charter school board of directors are subject to chapter 181.

(p) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.

new text begin (q) A charter school that provides early childhood health and developmental
screening must comply with sections 121A.16 to 121A.19.
new text end

Sec. 4.

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

new text begin The early learning and care system is defined to be a coherent structure of
research-based curriculum content, instructional practice, child and program assessments,
and performance-based child and programmatic standards as well as family supports,
professional development, engagement and outreach, accountability, financing, and
governance efforts that contribute to all aspects of children's development and 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. 5.

Minnesota Statutes 2009 Supplement, 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 with a comprehensive child assessment
instrument when the child enters and again before the child leaves the program to inform
program planning and parents and promote kindergarten readiness;

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

(3) coordinate appropriate kindergarten transition with parents and kindergarten
teachers;

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

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

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

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

deleted text begin (8) deleted text end new text begin (7) new text end 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

deleted text begin (9) deleted text end new text begin (8) new text end have teachers knowledgeable in early childhood curriculum content,
assessment, and instruction.

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 Eligibility. new text end

new text begin (a) A child is eligible to participate in a school readiness
program if the child:
new text end

new text begin (1) is at least three years old on September 1;
new text end

new text begin (2) has completed health and developmental screening under sections 121A.16 to
121A.19; and
new text end

new text begin (3) has one or more of the following risk factors:
new text end

new text begin (i) qualifies for free or reduced-price lunch;
new text end

new text begin (ii) is an English language learning child;
new text end

new text begin (iii) is homeless;
new text end

new text begin (iv) has an individualized education program (IEP) or an individual interagency
intervention plan (IIIP);
new text end

new text begin (v) is identified, through health and developmental screenings under sections
121A.16 to 121A.19, with a potential risk factor that may influence learning; or
new text end

new text begin (vi) is defined as at risk by the school district.
new text end

new text begin (b) Children who do not meet the eligibility requirements may participate in a school
readiness program on a fee-for-service basis.
new text end

Sec. 7.

Minnesota Statutes 2008, section 124D.20, subdivision 8, is amended to read:

Subd. 8.

Uses of general revenue.

(a) General community education revenue
may be used for:

(1) nonvocational, recreational, and leisure time activities and programs;

(2) programs for adults with disabilities, if the programs and budgets are approved
by the department;

(3) adult basic education programs, according to section 124D.52;

(4) summer programs for elementary and secondary pupils;

(5) implementation of a youth development plan;

(6) implementation of a youth service program;

(7) early childhood family education programs, according to section 124D.13; deleted text begin and deleted text end

(8) new text begin school readiness programs, according to section 124D.15; and
new text end

new text begin (9) new text end extended day programs, according to section 124D.19, subdivision 11.

deleted text begin (9) deleted text end new text begin (b) new text end In addition to money from other sources, a district may use up to ten percent
of its community education revenue for equipment that is used exclusively in community
education programs. This revenue may be used only for the following purposes:

deleted text begin (i) deleted text end new text begin (1) new text end to purchase or lease computers and related materials;

deleted text begin (ii) deleted text end new text begin (2) new text end to purchase or lease equipment for instructional programs; and

deleted text begin (iii) deleted text end new text begin (3) new text end to purchase textbooks and library books.

deleted text begin (b) deleted text end new text begin (c) new text end General community education revenue must not be used to subsidize the
direct activity costs for adult enrichment programs. Direct activity costs include, but
are not limited to, the cost of the activity leader or instructor, cost of materials, or
transportation costs.