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Capital IconMinnesota Legislature

SF 978

as introduced - 88th Legislature (2013 - 2014) Posted on 03/19/2013 02:34pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education; modifying policies for early childhood through grade 12
education, including general education, education excellence, special programs,
libraries, and early childhood education; authorizing rulemaking; amending
Minnesota Statutes 2012, sections 15.059, subdivision 5b; 120A.41; 120B.02;
120B.021, subdivision 1; 120B.023; 120B.024; 120B.15; 120B.30, subdivision
1; 120B.31, subdivision 1; 123B.88, subdivision 22; 124D.10; 124D.122;
124D.79, subdivision 1, by adding a subdivision; 125A.27, subdivisions 8, 11,
14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33; 125A.35, subdivision 1;
125A.36; 125A.43; 126C.10, subdivision 14; 260A.02, subdivision 3; 260A.03;
260A.05, subdivision 1; 260A.07, subdivision 1; Laws 2011, First Special
Session chapter 11, article 7, section 2, subdivision 8, as amended; proposing
coding for new law in Minnesota Statutes, chapters 120B; 124D; repealing
Minnesota Statutes 2012, section 125A.35, subdivisions 4, 5; Minnesota Rules,
parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530;
3501.0535; 3501.0540; 3501.0545; 3501.0550.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2012, section 120A.41, is amended to read:


120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.

A school board's annual school calendar must include at least 425 hours of
instruction for a kindergarten student without a disability, 935 hours of instruction for a
student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7
though 12, not including summer school. deleted text begin Nothing in this section permits a school district
to adopt
deleted text end new text begin A school board's annual calendar must include at least 165 days of instruction
for a student in grades 1 through 11 unless
new text end a four-day week schedule deleted text begin unlessdeleted text end new text begin has been
new text end approved by the commissioner under section 124D.126.

Sec. 2.

Minnesota Statutes 2012, section 123B.88, subdivision 22, is amended to read:


Subd. 22.

Postsecondary enrollment options pupils.

Districts may provide bus
transportation along school bus routes when space is available, for pupils attending
programs at a postsecondary institution under the postsecondary enrollment options
program. deleted text begin The transportation is permitted only if it does not increase the district's
expenditures for transportation.
deleted text end Fees collected for this service under section 123B.36,
subdivision 1
, paragraph (13), shall be subtracted from the authorized cost for nonregular
transportation for the purpose of section 123B.92.

Sec. 3.

Minnesota Statutes 2012, section 126C.10, subdivision 14, is amended to read:


Subd. 14.

Uses of total operating capital revenue.

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

(1) to acquire land for school purposes;

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

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

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

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

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

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

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

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

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

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

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

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

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

(15) to purchase or lease interactive telecommunications equipment;

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

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

(18) to purchase or lease computers and related deleted text begin materialsdeleted text end new text begin hardware, initial purchase
of related software, but not annual licensing fees
new text end , copying machines, telecommunications
equipment, and other noninstructional equipment;

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

(20) to purchase textbooksnew text begin as defined in section 123B.41, subdivision 2new text end ;

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

(22) to lease or purchase vehicles;

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

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

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

(iii) other classroom information management needs;

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

(25) to pay the costs directly associated with closing a school facility, including
moving and storage costs.

Sec. 4.

Minnesota Statutes 2012, section 260A.02, subdivision 3, is amended to read:


Subd. 3.

Continuing truant.

"Continuing truant" means a child who is subject to the
compulsory instruction requirements of section 120A.22 and is absent from instruction in a
school, as defined in section 120A.05, without valid excuse within a single school year for:

(1) three days if the child is in elementary school; or

(2) three or more class periods on three days if the child is in middle school, junior
high school, or high school.

Nothing in this section shall prevent a school district new text begin or charter school new text end from notifying
a truant child's parent or legal guardian of the child's truancy or otherwise addressing a
child's attendance problems prior to the child becoming a continuing truant.

Sec. 5.

Minnesota Statutes 2012, section 260A.03, is amended to read:


260A.03 NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A
CONTINUING TRUANT.

Upon a child's initial classification as a continuing truant, the school attendance
officer or other designated school official shall notify the child's parent or legal guardian,
by first-class mail or other reasonable means, of the following:

(1) that the child is truant;

(2) that the parent or guardian should notify the school if there is a valid excuse
for the child's absences;

(3) that the parent or guardian is obligated to compel the attendance of the child
at school pursuant to section 120A.22 and parents or guardians who fail to meet this
obligation may be subject to prosecution under section 120A.34;

(4) that this notification serves as the notification required by section 120A.34;

(5) that alternative educational programs and services may be available in the new text begin child's
enrolling or resident
new text end district;

(6) that the parent or guardian has the right to meet with appropriate school personnel
to discuss solutions to the child's truancy;

(7) that if the child continues to be truant, the parent and child may be subject to
juvenile court proceedings under chapter 260C;

(8) that if the child is subject to juvenile court proceedings, the child may be subject
to suspension, restriction, or delay of the child's driving privilege pursuant to section
260C.201; and

(9) that it is recommended that the parent or guardian accompany the child to school
and attend classes with the child for one day.

Sec. 6.

Minnesota Statutes 2012, section 260A.05, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

A school district new text begin or charter school new text end may establish
one or more school attendance review boards to exercise the powers and duties in this
section. The school district new text begin or charter school new text end board shall appoint the members of the
school attendance review board and designate the schools within the board's jurisdiction.
Members of a school attendance review board may include:

(1) the superintendent of the school district or the superintendent's designeenew text begin or
charter director or the director's designee
new text end ;

(2) a principal and one or more other school officials from within the districtnew text begin or
charter school
new text end ;

(3) parent representatives;

(4) representatives from community agencies that provide services for truant
students and their families;

(5) a juvenile probation officer;

(6) school counselors and attendance officers; and

(7) law enforcement officers.

Sec. 7.

Minnesota Statutes 2012, section 260A.07, subdivision 1, is amended to read:


Subdivision 1.

Establishment; referrals.

A county attorney may establish a truancy
mediation program for the purpose of resolving truancy problems without court action. If
a student is in a school districtnew text begin or charter schoolnew text end that has established a school attendance
review board, the student may be referred to the county attorney under section 260A.06,
subdivision 3
. If the student's school district new text begin or charter school new text end has not established a board,
the student may be referred to the county attorney by the school district new text begin or charter school
new text end if the student continues to be truant after the parent or guardian has been sent or conveyed
the notice under section 260A.03.

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

new text begin [120B.018] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Academic standard. new text end

new text begin "Academic standard" means a summary description
of student learning in a required content area under section 120B.021 or elective content
area under section 120B.022.
new text end

new text begin Subd. 3. new text end

new text begin Benchmark. new text end

new text begin "Benchmark" means specific knowledge or skill that a
student must master to complete part of an academic standard by the end of the grade
level or grade band.
new text end

new text begin Subd. 4. new text end

new text begin Credit. new text end

new text begin "Credit" means the determination by the local school district
that a student has successfully completed an academic year of study or mastered the
applicable subject matter.
new text end

new text begin Subd. 5. new text end

new text begin Elective standard. new text end

new text begin "Elective standard" means a locally adopted
expectation for student learning in career and technical education and world languages.
new text end

new text begin Subd. 6. new text end

new text begin Required standard. new text end

new text begin "Required standard" means (1) a statewide adopted
expectation for student learning in the content areas of language arts, mathematics,
science, social studies, physical education, and the arts or (2) a locally adopted expectation
for student learning in health and the arts.
new text end

new text begin Subd. 7. new text end

new text begin School site. new text end

new text begin "School site" means a separate facility, or a separate program
within a facility that a local school board recognizes as a school site for funding purposes.
new text end

Sec. 2.

Minnesota Statutes 2012, section 120B.02, is amended to read:


120B.02 EDUCATIONAL EXPECTATIONS new text begin AND GRADUATION
REQUIREMENTS
new text end FOR MINNESOTA'S STUDENTS.

new text begin Subdivision 1. new text end

new text begin Educational expectations. new text end

(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. deleted text begin 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.
deleted text end

(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.

deleted text begin (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, all state academic
standards or local academic standards where state standards do not apply, and successfully
pass graduation examinations as required under section 120B.30.
deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end The commissioner shall periodically review and report on the state's
assessment process.

deleted text begin (e)deleted text end new text begin (d)new text end School districts are not required to adopt specific provisions of the federal
School-to-Work programs.

new text begin Subd. 2. new text end

new text begin Graduation requirements. new text end

new text begin The state minimum requirements for high
school graduation are satisfactorily completing the credit and academic standards
requirements under section 120B.024, as determined by the school district, and
successfully passing the graduation examinations under section 120B.30. A school district
must adopt graduation requirements that meet or exceed state graduation requirements
established in law or rule.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
students entering 9th grade in the 2013-2014 school year and later.
new text end

Sec. 3.

Minnesota Statutes 2012, section 120B.021, subdivision 1, is amended to read:


Subdivision 1.

Required academic standards.

new text begin (a) new text end The following subject areas
are required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studiesdeleted text begin , including history, geography, economics, and government and
citizenship
deleted text end ;

(5) physical education;

(6) health, for which locally developed academic standards apply; and

(7) 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.

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

new text begin (b) new text end For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students, except the very few students
with extreme cognitive or physical impairments for whom an individualized education
program team has determined that the required academic standards are inappropriate. An
individualized education program team that makes this determination must establish
alternative standards.

deleted text begin 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.
deleted text end new text begin (c) new text end 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.

deleted text begin 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.
deleted text end

Sec. 4.

Minnesota Statutes 2012, section 120B.023, is amended to read:


120B.023 BENCHMARKS.

Subdivision 1.

Benchmarks implement, supplement statewide academic
standards.

(a) The commissioner must supplement required state academic standards with
grade-level benchmarks. High school benchmarks may cover more than one grade. deleted text begin The
benchmarks must implement statewide academic standards by specifying the academic
knowledge and skills that
deleted text end Schools must offer and students must achieve new text begin all benchmarks for
an academic standard
new text end to satisfactorily complete deleted text begin adeleted text end new text begin thatnew text end state standard. deleted text begin The commissioner
must publish benchmarks to inform and guide parents, teachers, school districts, and other
interested persons and to use in developing tests consistent with the benchmarks.
deleted text end

(b) The commissioner shall publish benchmarks in the State Register new text begin to inform and
guide parents, teachers, school districts, and other interested persons
new text end and transmit the
benchmarks in any other manner that makes them accessible to the general public. new text begin The
commissioner must use benchmarks in developing tests under section 120B.30.
new text end The
commissioner may charge a reasonable fee for publications.

(c) Once established, the commissioner may change the benchmarks only with
specific legislative authorization and after completing a review under subdivision 2.

deleted text begin (d) The commissioner must develop and implement a system for reviewing each
of the required academic standards and related benchmarks and elective standards on a
periodic cycle, consistent with subdivision 2.
deleted text end

deleted text begin (e)deleted text end new text begin (d)new text end The benchmarks are not subject to chapter 14 and section 14.386 does not
apply.

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.new text begin 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.
new text end

deleted text begin (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:
deleted text end

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

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

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

(c) deleted text begin 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.
deleted text end The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.

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

(e) deleted text begin 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.
deleted 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, world languages, and career
and technical education to require students to complete the revised standards beginning
in a school year determined by the school district or charter school. School districts and
charter schools must formally establish a periodic review cycle for the academic standards
and related benchmarks in health, world languages, and career and technical education.

Sec. 5.

Minnesota Statutes 2012, section 120B.024, is amended to read:


120B.024 deleted text begin GRADUATION REQUIREMENTS; COURSEdeleted text end CREDITS.

new text begin Subdivision 1. new text end

new text begin Graduation requirements. new text end

deleted text begin (a)deleted text end Students beginning 9th grade in the
2011-2012 school year and later must successfully complete the following high school
level deleted text begin coursedeleted text end credits for graduation:

(1) four credits of language artsnew text begin sufficient to satisfy all of the academic standards
in English language arts
new text end ;

(2) three credits of mathematics, deleted text begin encompassing at least algebra, geometry, statistics,
and probability
deleted text end new text begin including an algebra II credit or its equivalent,new text end sufficient to satisfy new text begin all of
new text end the academic deleted text begin standarddeleted text end new text begin standards in mathematicsnew text end ;

new text begin (3) an algebra I credit by the end of 8th grade sufficient to satisfy all of the 8th
grade standards in mathematics;
new text end

deleted text begin (3)deleted text end new text begin (4)new text end three credits of science, including at leastdeleted text begin : (i)deleted text end one credit deleted text begin indeleted text end new text begin ofnew text end biologydeleted text begin ; and
(ii) one chemistry or physics credit or a career and technical education credit that meets
standards underlying the chemistry, physics, or biology credit or a combination of those
standards approved by the district, but meeting biology standards under this item does not
meet the biology requirement under item (i)
deleted text end new text begin , one credit of chemistry or physics, and one
elective credit of science. The combination of credits under this clause must be sufficient
to satisfy (i) all of the academic standards in either chemistry or physics and (ii) all other
academic standards in science
new text end ;

deleted text begin (4)deleted text end new text begin (5)new text end three and one-half credits of social studiesdeleted text begin , 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
deleted text end new text begin sufficient to satisfy
all of the academic standards in social studies
new text end ;

deleted text begin (5)deleted text end new text begin (6)new text end one credit deleted text begin indeleted text end new text begin ofnew text end the artsnew text begin sufficient to satisfy all of the state or local academic
standards in the arts
new text end ; and

deleted text begin (6)deleted text end new text begin (7)new text end a minimum of seven elective deleted text begin coursedeleted text end credits.

deleted text begin A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter, as determined by the
local school district.
deleted text end

new text begin Subd. 2. new text end

new text begin Credit equivalencies. new text end

new text begin (a) A one-half credit of economics taught in a
school's agriculture education or business department may fulfill a one-half credit in
social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the
academic standards in economics.
new text end

(b) An agriculture science deleted text begin coursedeleted text end new text begin or career and technical eduction creditnew text end may fulfill deleted text begin a
deleted text end new text begin the electivenew text end science credit requirement deleted text begin other than the specified science credit in biology
deleted text end under deleted text begin paragraph (a), clause (3).deleted text end new text begin subdivision 1, clause (4), if the course meets academic
standards in science as approved by the district. An agriculture science or career and
technical education credit may fulfill the credit in chemistry or physics required under
subdivision 1, clause (4), if (1) the credit meets a combination of the chemistry, physics,
and biology academic standards as approved by the district and (2) the student satisfies
either all of the chemistry academic standards or all of the physics academic standards
prior to graduation. An agriculture science or career and technical education credit may
not fulfill the biology credit required under subdivision 1, clause (4).
new text end

(c) A career and technical education deleted text begin coursedeleted text end new text begin creditnew text end may fulfill a mathematics or arts
credit requirement deleted text begin or a science credit requirement other than the specified science credit in
biology
deleted text end under deleted text begin paragraph (a)deleted text end new text begin subdivision 1new text end , clause (2)deleted text begin , (3),deleted text end or deleted text begin (5)deleted text end new text begin (6)new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
students entering 9th grade in the 2013-2014 school year and later.
new text end

Sec. 6.

Minnesota Statutes 2012, section 120B.15, is amended to read:


120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

(a) School districts may identify students, locally develop programsnew 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 deleted text begin maydeleted text end new text begin mustnew text end 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 Assessments and procedures should be sensitive to underrepresented
groups, including, but not limited to, low-income, minority, twice-exceptional, and
English learners.
new text end

(c) School districts 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.

new text begin (d) School districts must adopt procedures for early admission to kindergarten
or first grade of gifted and talented learners. The procedures must be sensitive to
underrepresented groups and must address how the district or charter school will:
new text end

new text begin (1) assess a child's readiness and motivation for accelerations;
new text end

new text begin (2) assess a child's cognitive abilities, achievement, and performance; and
new text end

new text begin (3) monitor the child's adjustment postacceleration.
new text end

new text begin The school district shall admit a gifted and talented child to kindergarten or first
grade who fails to meet the age requirement under section 120A.20, subdivision 1,
paragraph (b), provided the child completes the procedures and meets the criteria for early
entrance adopted by the school board under this subdivision.
new text end

Sec. 7.

Minnesota Statutes 2012, 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. For students enrolled
in grade 8 before the 2005-2006 school yeardeleted text begin , 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
deleted text end 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 (c), except that for
the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's
graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).

(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 learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English learners;

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

(iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program 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
individualized education program.

(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 (c) are eligible to receive a high school diploma
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 on the high school transcript a student's current pass status for each
subject that has a required graduation assessment.

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. 8.

Minnesota Statutes 2012, section 120B.31, subdivision 1, is amended to read:


Subdivision 1.

Educational accountability and public reporting.

Consistent
with the direction to adopt statewide academic standards under section 120B.02, the
department, in consultation with education and other system stakeholders, must establish a
coordinated and comprehensive system of educational accountability and public reporting
that promotes greater academic achievement, preparation for higher academic education,
preparation for the world of work, citizenship deleted text begin under sections 120B.021, subdivision 1,
clause (4), and 120B.024, paragraph (a), clause (4)
deleted text end , and the arts.

Sec. 9.

Minnesota Statutes 2012, section 124D.10, is amended to read:


124D.10 CHARTER SCHOOLS.

Subdivision 1.

Purposes.

(a) The new text begin primary new text end purpose of this section is todeleted text begin :
deleted text end

deleted text begin (1)deleted text end improve pupil learning and student achievementdeleted text begin ;deleted text end new text begin . Additional purposes include to:
new text end

deleted text begin (2)deleted text end new text begin (1)new text end increase learning opportunities for pupils;

deleted text begin (3)deleted text end new text begin (2)new text end encourage the use of different and innovative teaching methods;

deleted text begin (4)deleted text end new text begin (3)new text end measure learning outcomes and create different and innovative forms of
measuring outcomes;

deleted text begin (5)deleted text end new text begin (4)new text end establish new forms of accountability for schools; deleted text begin anddeleted text end new text begin or
new text end

deleted text begin (6)deleted text end new text begin (5)new text end 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 a school board
decides to close. However, a school board may endorse or authorize the establishing of
a charter school to replace the school the board decided to close. Applicants seeking a
charter under this circumstance must demonstrate to the authorizer that the charter sought
is substantially different in purpose and program from the school the board closed and
that the proposed charter satisfies the requirements of this subdivision. If the school
board that closed the school authorizes the charter, it must document in its affidavit to the
commissioner that the charter is substantially different in program and purpose from
the school it closed.

An authorizer shall not approve an application submitted by a charter school
developer under subdivision 4, paragraph (a), if the application does not comply with this
subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.

Subd. 2.

Applicability.

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

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.

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

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

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

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

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

(iii) is incorporated in the state of Minnesota and has been operating continuously
for at least five years but does not operate a charter school;

(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;

(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; or

(5) single-purpose authorizers that are charitable, nonsectarian organizations formed
under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
of Minnesota whose sole purpose is to charter schools. Eligible organizations interested
in being approved as an authorizer under this paragraph must submit a proposal to the
commissioner that includes the provisions of paragraph (c) and a five-year financial plan.
Such authorizers shall consider and approve new text begin charter school new text end 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 45 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the specific deficiencies
in writing and the applicant then has 20 business days to address the deficiencies to the
commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
business days to make a final decision to approve or disapprove the application. 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) An applicant must include in its application to the commissioner to be an
approved authorizer at least the following:

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

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

(3) a description of the application and review process the authorizer will use to
make decisions regarding the granting of charters;

(4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6;

(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) a description of the criteria and process the authorizer will use to grant expanded
applications under subdivision 4, paragraph (j);

(7) 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

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

(e) A disapproved applicant under this section may resubmit an application during a
future application period.

(f) If the governing board of an approved authorizer votes to withdraw as an
approved authorizer for a reason unrelated to any cause under subdivision 23, the
authorizer must notify all its chartered schools and the commissioner in writing by July
15 of its intent to withdraw as an authorizer on June 30 in the next calendar year. The
commissioner may approve the transfer of a charter school to a new authorizer under this
paragraph after the new authorizer submits an affidavit to the commissioner.

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

deleted text begin (h) An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2012, 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.
deleted text end

deleted text begin (i)deleted text end new text begin (h)new text end 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. If the commissioner terminates a contract between
an authorizer and a charter school under this paragraph, the commissioner may assist the
charter school in acquiring a new authorizer.

deleted text begin (j)deleted text end new text begin (i)new text end 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;

(3) unsatisfactory performance as an approved authorizer; or

(4) any good cause shown that provides the commissioner a legally sufficient reason
to take corrective action against an authorizer.

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
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 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) A charter school shall publish and maintain on the school's official Web site: (1)
the minutes of meetings of the board of directors, and of members and committees having
any board-delegated authority, for at least one calendar year from the date of publication;
(2) directory information for members of the board of directors and committees having
board-delegated authority; and (3) identifying and contact information for the school's
authorizer. Identifying and contact information for the school's authorizer must be
included in other school materials made available to the public. Upon request of an
individual, the charter school must also make available in a timely fashion 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 deleted text begin post
on its official Web site information identifying its authorizer and indicate how to contact
that authorizer and
deleted text end 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 ongoing training throughout
the member's term on board governance, including training on the board's role and
responsibilities, employment policies and practices, and financial management. A board
member who does not begin the required initial training within six months after being
seated and complete that training within 12 months of being seated on the board is
ineligible to continue to serve as a board member. The school shall include in its annual
report the training attended by each board member during the previous year.

(g) The ongoing board must be elected before the school completes its third year of
operation. Board elections must be held during the school year but may not be conducted
on days when the school is closed for holidaysnew text begin , breaks,new text end or vacations. 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 as a teacher new text end at the school or deleted text begin a licensed teacher
deleted text end providing instruction under contract between the charter school and a cooperative; (ii) the
parent or legal guardian of a student enrolled in the charter school who is not an employee
of the charter school; 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 may only serve as ex-officio nonvoting board
members deleted text begin and may not serve as a voting member of the boarddeleted text end . Charter school employees
shall not serve on the board unless item (i) applies. Contractors providing facilities, goods,
or services to a charter school shall not serve on the board of directors of the charter school.
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 contractdeleted text begin , lease,deleted text end 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 deleted text begin to add additional gradesdeleted text end 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 document that:

(1) the proposed expansion plan demonstrates need and projected enrollment;

(2) the 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 financially sound and the financing it needs to implement
the proposed expansion exists; and

(4) the charter school has the governance structure and 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 20 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.

Subd. 4a.

Conflict of interest.

(a) An individual is prohibited from serving as a
member of the charter school board of directors if the individual, an immediate family
member, or the individual's partner is an owner, employee or agent of, or a contractor with a
for-profit or nonprofit entity or individual with whom the charter school contracts, directly
or indirectly, for professional services, goods, or facilities. A violation of this prohibition
renders a contract voidable at the option of the commissioner or the charter school board
of directors. A member of a charter school board of directors who violates this prohibition
is individually liable to the charter school for any damage caused by the violation.

(b) No member of the board of directors, employee, officer, or agent of a charter
school shall participate in selecting, awarding, or administering a contract if a conflict
of interest exists. A conflict exists when:

(1) the board member, employee, officer, or agent;

(2) the immediate family of the board member, employee, officer, or agent;

(3) the partner of the board member, employee, officer, or agent; or

(4) an organization that employs, or is about to employ any individual in clauses
(1) to (3),

has a financial or other interest in the entity with which the charter school is contracting.
A violation of this prohibition renders the contract void.

(c) Any employee, agent, or board member of the authorizer who participates
in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
nonrenewal process or decision is ineligible to serve on the board of directors of a school
chartered by that authorizer.

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

(e) The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed new text begin as a teacher new text end by the charter school deleted text begin whodeleted text end new text begin or a
teacher who provides instructional services to the charter school through a cooperative
formed under chapter 308A when the teacher
new text end also serves deleted text begin as a member ofdeleted text end new text begin onnew text end the new text begin charter
school
new text end board of directors.

deleted text begin (f) 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.
deleted text end

Subd. 5.

Conversion of existing schools.

A board of an independent or special
school district 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.

Charter contract.

The authorization for a charter school must be in the
form of a written contract signed by the authorizer and the board of directors of the charter
school. The contract must be completed within 45 business days of the commissioner's
approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
copy of the signed charter contract within ten business days of its execution. The contract
for a charter school must be in writing and contain at least the following:

new text begin (1) a declaration that the charter school will carry out the primary purpose in
subdivision 1 and how the school will report its implementation of the primary purpose;
new text end

deleted text begin (1)deleted text end new text begin (2)new text end a declaration of deleted text begin thedeleted text end new text begin any additionalnew text end purposes in subdivision 1 that the school
intends to carry out and how the school will report its implementation of those purposes;

deleted text begin (2)deleted text end new text begin (3)new text end a description of the school program and the specific academic and
nonacademic outcomes that pupils must achieve;

deleted text begin (3)deleted text end new text begin (4)new text end a statement of admission policies and procedures;

deleted text begin (4)deleted text end new text begin (5)new text end a governance, management, and administration plan for the school;

deleted text begin (5)deleted text end new text begin (6)new text end signed agreements from charter school board members to comply with all
federal and state laws governing organizational, programmatic, and financial requirements
applicable to charter schools;

deleted text begin (6)deleted text end new text begin (7)new text end the criteria, processes, and procedures that the authorizer will use deleted text begin for
ongoing oversight of operational, financial, and academic performance
deleted text end new text begin to monitor and
evaluate the fiscal, operational, and academic performance consistent with subdivision
15, paragraphs (a) and (b)
new text end ;

deleted text begin (7)deleted text end new text begin (8) for contract renewal,new text end the new text begin formal written new text end performance evaluation new text begin of the school
new text end that is a prerequisite for reviewing a charter contract under subdivision 15;

deleted text begin (8)deleted text end new text begin (9)new text end types and amounts of insurance liability coverage to be obtained by the
charter schoolnew text begin , consistent with subdivision 8, paragraph (k)new text end ;

deleted text begin (9)deleted text end new text begin (10)new text end consistent with subdivision 25, paragraph (d), a provision to indemnify and
hold harmless the authorizer and its officers, agents, and employees from any suit, claim,
or liability arising from any operation of the charter school, and the commissioner and
department officers, agents, and employees notwithstanding section 3.736;

deleted text begin (10)deleted text end new text begin (11)new text end the term of the initial contract, which may be up to five years plus an
additional preoperational planning year, and up to five years for a renewed contract or a
contract with a new authorizer after a transfer of authorizers, if warranted by the school's
academic, financial, and operational performance;

deleted text begin (11)deleted text end new text begin (12)new text end how the board of directors or the operators of the charter school will
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 (12) the process and criteria the authorizer intends to use to monitor and evaluate the
fiscal and student performance of the charter school, consistent with subdivision 15; and
deleted text end

new text begin (13) the specific conditions for contract renewal, which identify performance under
the primary purpose of subdivision 1 as the most important factor in determining contract
renewal; and
new text end

deleted text begin (13)deleted text end new text begin (14)new text end the plan for an orderly closing of the school under chapter 317A, deleted text begin if
deleted text end new text begin whethernew text end the closure is a termination for cause, a voluntary termination, or a nonrenewal
of the contract, deleted text begin anddeleted text end that includes establishing the responsibilities of the school board of
directors and the authorizer and notifying the commissioner, authorizer, school district in
which the charter school is located, and parents of enrolled students about the closure,
the transfer of student records to students' resident districts, and procedures for closing
financial operations.

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 reportnew text begin , as supplemental information,new text end a copy of all charter school
agreements for corporate management servicesnew text begin , including parent company or other
administrative, financial, and staffing services
new text end . 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) A charter school independent audit report shall include audited financial data of
an affiliated building corporation or other component unit.
new text end

deleted text begin (c)deleted text end new text begin (d)new text end If the audit report finds 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. An auditor,
as a condition of providing financial services to a charter school, must agree to make
available information about a charter school's financial audit to the commissioner and
authorizer upon request.

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. 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.

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 authorized 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. An authorizer 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. This paragraph does not
apply to shared time aid under section 126C.19.

(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 districtnew text begin , except as required under subdivision 6anew text end . 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.

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

(r) A charter school that provides school-sponsored youth athletic activities must
comply with section 121A.38.

new text begin (s) A charter school is subject to and must comply with continuing truant notification
under section 260A.03.
new text end

Subd. 8a.

Aid reduction.

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.

Subd. 8b.

Aid reduction for violations.

The commissioner may reduce a charter
school's state aid by an amount not to exceed 60 percent of the charter school's basic
revenue for the period of time that a violation of law occurs.

Subd. 9.

Admission requirements.

new text begin (a) new text end A charter school may limit admission to:

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

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

(3) residents of a specific geographic area in which the school is located when the
majority of students served by the school are members of underserved populations.

new text begin (b) new text end 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. The charter school must develop
and publishnew text begin , including on its Web site,new text end a lottery policy and process that it must use when
accepting pupils by lot.

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

new text begin (d) A person shall not be admitted to a charter school (1) as a kindergarten pupil,
unless the pupil is at least five years of age on September 1 of the calendar year in which
the school year for which the pupil seeks admission commences; or (2) as a first grade
student, unless the pupil is at least six years of age on September 1 of the calendar year in
which the school year for which the pupil seeks admission commences or has completed
kindergarten; except that a charter school may establish and publish on its Web site a
policy for admission of selected pupils at an earlier age, consistent with the enrollment
process in paragraphs (b) and (c).
new text end

new text begin (e) Except as permitted in paragraph (d), new text end a charter school may not limit admission
to pupils on the basis of intellectual ability, measures of achievement or aptitude, or
athletic ability and may not establish any criteria or requirements for admission that are
inconsistent with this subdivision.

new text begin (f) new text end The charter school shall not distribute 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.

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 authorizer. 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) 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 127A.43 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. The charter school board
is subject to section 181.932. When offering employment to a prospective employee, a
charter school must give that employee a written description of the terms and conditions
of employment and the school's personnel policies.

(b) A person, without holding a valid administrator's license, may perform
administrative, supervisory, or instructional leadership duties. The board of directors shall
establish qualifications for persons that hold administrative, supervisory, or instructional
leadership roles. The qualifications shall include at least the following areas: instruction
and assessment; human resource and personnel management; financial management;
legal and compliance management; effective communication; and board, authorizer, and
community relationships. The board of directors shall use those qualifications as the basis
for job descriptions, hiring, and performance evaluations of those who hold administrative,
supervisory, or instructional leadership roles. The board of directors and an individual
who does not hold a valid administrative license and who serves in an administrative,
supervisory, or instructional leadership position shall develop a professional development
plan. Documentation of the implementation of the professional development plan of these
persons shall be included in the school's annual report.

(c) The board of directors also shall decide new text begin and be responsible for new text end 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 hours 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 publish an annual report
approved by the board of directors. The annual report must at least include information
on school enrollment, student attrition, governance and management, staffing, finances,
academic performance, deleted text begin operational performance,deleted text end innovative practices and implementation,
and future plans. A charter school must new text begin post the annual report on the school's official Web
site. The charter school must also
new text end distribute the annual report by publication, mail, or
electronic means to deleted text begin the commissioner,deleted text end new text begin itsnew text end authorizer, school employees, and parents and
legal guardians of students enrolled in the charter school deleted text begin and must also post the report on
the charter school's official Web site
deleted text end . The reports are public data under chapter 13.

Subd. 15.

Review and comment.

(a) 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, paragraph (i).

(b) An authorizer shall monitor and evaluate the deleted text begin fiscal,deleted text end new text begin academic, financial, and
new text end operationaldeleted text begin , and studentdeleted text end performance of the school, and may for this purpose annually
assess a charter school a fee according to paragraph (c). The agreed-upon fee structure
must be stated in the charter school contract.

(c) The fee that deleted text begin each charter school pays to an authorizer each yeardeleted text end new text begin an authorizer
may annually assess
new text end is the greater of:

(1) the basic formula allowance for that year; or

(2) the lesser of:

(i) the maximum fee factor times the basic formula allowance for that year; or

(ii) the fee factor times the basic formula allowance for that year times the charter
school's adjusted marginal cost pupil units for that year. The fee factor equals deleted text begin .005 in fiscal
year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and
deleted text end .015 deleted text begin in fiscal years 2013
and later
deleted text end . The maximum fee factor equals deleted text begin 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
3.0 in fiscal year 2012, and
deleted text end 4.0 deleted text begin in fiscal years 2013 and laterdeleted text end .

(d) An authorizer may not assess a fee for any required services other than as
provided in this subdivision.

(e) For the preoperational planning period, new text begin after a school is chartered, new text end the authorizer
may assess a charter school a fee equal to the basic formula allowance.

(f) By September 30 of each year, an authorizer shall submit to the commissioner a
statement of new text begin income and new text end expenditures related to chartering activities during the previous
school year ending June 30. A copy of the statement shall be given to all schools chartered
by the authorizer.

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 an independent
or special school board deleted text begin eligible to be an authorizerdeleted text end , other public organization, private,
nonprofit nonsectarian organization, private property owner, or a sectarian organization
if the leased space is constructed as a school facility. The department must review and
approve or disapprove leases in a timely manner.

Subd. 17a.

Affiliated nonprofit building corporation.

(a) Before a charter school
may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
existing facility to serve as a school or (ii) to new text begin expand an existing building or new text end construct
a new school facility, an authorizer must submit an affidavit to the commissioner for
approval in the form and manner the commissioner prescribes, and consistent with
paragraphs (b) and (c) or (d).

(b) An affiliated nonprofit building corporation under this subdivision must:

(1) be incorporated under section 317A;

(2) comply with applicable Internal Revenue Service regulations, including
regulations for "supporting organizations" as defined by the Internal Revenue Service;

(3) submit to the commissioner each fiscal year a list of current board members
and a copy of its annual audit; and

(4) comply with government data practices law under chapter 13.

An affiliated nonprofit building corporation must not serve as the leasing agent for
property or facilities it does not own. A charter school that leases a facility from an
affiliated nonprofit building corporation that does not own the leased facility is ineligible
to receive charter school lease aid. The state is immune from liability resulting from a
contract between a charter school and an affiliated nonprofit building corporation.

(c) A charter school may organize an affiliated nonprofit building corporation to
renovate or purchase an existing facility to serve as a school if the charter school:

(1) has been operating for at least five consecutive school years;

(2) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;

(3) has a long-range strategic and financial plan;

(4) completes a feasibility study of available buildings;

(5) documents enrollment projections and the need to use an affiliated building
corporation to renovate or purchase an existing facility to serve as a school; and

(6) has a plan for the renovation or purchase, which describes the parameters and
budget for the project.

(d) A charter school may organize an affiliated nonprofit building corporation to
expand an existing school facility or construct a new school facility if the charter school:

(1) demonstrates the lack of facilities available to serve as a school;

(2) has been operating for at least eight consecutive school years;

(3) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;

(4) completes a feasibility study of facility options;

(5) has a long-range strategic and financial plan that includes enrollment projections
and demonstrates the need for constructing a new school facility; and

(6) has a plan for the expansion or new school facility, which describes the
parameters and budget for the project.

new text begin Subd. 17b. new text end

new text begin Positive review and comment. new text end

deleted text begin (e)deleted text end A charter school or an affiliated
nonprofit building corporation organized by a charter school must not initiate an
installment contract for purchase, or a lease agreement, or solicit bids for new construction,
expansion, or remodeling of an educational facility that requires an expenditure in
excess of $1,400,000, unless it meets the criteria in new text begin subdivision 17a, new text end paragraph (b) and
paragraph (c) or (d), as applicable, and receives a positive review and comment from
the commissioner under section 123B.71.

Subd. 19.

Disseminate information.

(a) deleted text begin The authorizer, the operators,deleted text end new text begin Authorizers
new text end and the department must disseminate information to the public on how to form and
operate a charter school. Charter schools must disseminate information about how to
use the offerings of a charter school. Targeted groups include low-income families and
communities, students of color, and students who are at risk of academic failure.

(b) Authorizers, operators, and the department also may disseminate information
about the successful best practices in teaching and learning demonstrated by charter
schools.

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 before February 1 in the school year preceding the school year in which the
teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is
scheduled to terminate. 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 under chapters 354 and 354A, consistent with
subdivision 22.

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 an authorizing
district, except that bargaining units may remain part of the appropriate unit within an
authorizing district, if the employees of the school, the board of directors of the school,
the exclusive representative of the appropriate unit in the authorizing district, and the
board of the authorizing district agree to include the employees in the appropriate unit of
the authorizing 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 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 business 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 an informal
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 deleted text begin meetdeleted text end new text begin demonstrate satisfactory academic achievement for all groups of
students, including
new text end 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 317A.

(c) If the authorizer and the charter school board of directors mutually agree to
terminate or not renew the contract, a change in authorizers is allowed if the commissioner
approves the change 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 authorizer that is a party to the existing contract must inform
the proposed authorizer about the fiscal and operational status and student performance
of the school. Before the commissioner determines whether to approve a change in
authorizer, the proposed authorizer must identify any outstanding issues in the proposed
charter contract that were unresolved in the previous charter contract and have the charter
school agree to resolve those issues. If no change in authorizer 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 consistent with state law;

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

(3) repeated or major 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 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) For purposes of this section and section 124D.11:

(1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;

(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;

(3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;

(4) "person" means an individual or entity of any kind; and

(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.

(c) 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."

(d) 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, an authorizer, members of the board of an authorizer in
their official capacity, and employees of an authorizer are immune from civil or criminal
liability with respect to all activities related to a charter school they approve or authorize.
The board of directors shall obtain at least the amount of and types of insurance 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 deleted text begin and the commissionerdeleted text end before starting
operations. The charter school board must submit changes in its insurance carrier or policy
to its authorizer deleted text begin and the commissionerdeleted text end within 20 business days of the change.

(d) Notwithstanding section 3.736, the charter school shall assume full liability for
its activities and indemnify and hold harmless the authorizer and its officers, agents, and
employees from any suit, claim, or liability arising from any operation of the charter school
and the commissioner and department officers, agents, and employees. A charter school
is not required to indemnify or hold harmless a state employee if the state would not be
required to indemnify and hold the employee harmless under section 3.736, subdivision 9.

Subd. 27.

Collaboration between charter school and school district.

(a) A charter
school board may voluntarily enter into a two-year, renewable agreement for collaboration
to enhance student achievement with a school district within whose geographic boundary
it operates.

(b) A school district need not be an approved authorizer to enter into a collaboration
agreement with a charter school. A charter school need not be authorized by the school
district with which it seeks to collaborate.

(c) A charter school authorizer is prohibited from requiring a collaboration agreement
as a condition of entering into or renewing a charter contract as defined in subdivision 6.

(d) Nothing in this subdivision or in the collaboration agreement may impact in any
way the authority or autonomy of the charter school.

(e) Nothing in this subdivision or in the collaboration agreement shall cause the state
to pay twice for the same student, service, or facility or otherwise impact state funding, or
the flow thereof, to the school district or the charter school.

(f) The collaboration agreement may include, but need not be limited to,
collaboration regarding facilities, transportation, training, student achievement,
assessments, mutual performance standards, and other areas of mutual agreement.

(g) The school district may include the academic performance of the students of a
collaborative charter school site operating within the geographic boundaries of the school
district, for purposes of student assessment and reporting to the state.

(h) Districts, authorizers, or charter schools entering into a collaborative agreement
are equally and collectively subject to the same state and federal accountability measures
for student achievement, school performance outcomes, and school improvement
strategies. The collaborative agreement and all accountability measures must be posted
on the district, charter school, and authorizer Web sites.

Sec. 10.

Minnesota Statutes 2012, section 124D.122, is amended to read:


124D.122 ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.

The board of any districtnew text begin or a consortium of districtsnew text end , with the approval of the
commissioner, may establish and operate a flexible learning year program in one or
more of the day or residential facilities for children with a disability within the district.
new text begin Consortiums may use a single application and evaluation process, though results, public
hearings, and board approvals must be obtained for each district.
new text end

Sec. 11.

Minnesota Statutes 2012, section 124D.79, subdivision 1, is amended to read:


Subdivision 1.

Community involvement.

The commissioner must provide for the
maximum involvement of the state committees on American Indian education, parents
of American Indian children, secondary students eligible to be served, American Indian
language and culture education teachers, American Indian teachers, teachers' aides,
representatives of community groups, and persons knowledgeable in the field of American
Indian education, in the formulation of policy and procedures relating to the administration
of sections 124D.71 to 124D.82.new text begin The commissioner must annually hold a field hearing on
Indian education to gather input from American Indian educators, parents, and students on
the state of American Indian education in Minnesota. Results of the hearing must be made
available to all 11 tribal nations for review and comment.
new text end

Sec. 12.

Minnesota Statutes 2012, section 124D.79, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Consultation with the tribal nations education committee. new text end

new text begin (a) The
commissioner shall seek consultation with the Tribal Nations Education Committee on all
issues relating to American Indian education including:
new text end

new text begin (1) administration of the commissioner's duties under sections 124D.71 to 124D.82
and other programs;
new text end

new text begin (2) administration of other programs for the education of American Indian people, as
determined by the commissioner;
new text end

new text begin (3) awarding of scholarships to eligible American Indian students;
new text end

new text begin (4) administration of the commissioner's duties regarding awarding of American
Indian postsecondary preparation grants to school districts; and
new text end

new text begin (5) recommendations of education policy changes for American Indians.
new text end

new text begin (b) Membership in the Tribal Nations Education Committee is the sole discretion
of the committee and nothing in this subdivision gives the commissioner authority to
dictate committee membership.
new text end

Sec. 13.

new text begin [124D.791] INDIAN EDUCATION DIRECTOR.
new text end

new text begin Subdivision 1. new text end

new text begin Appointment. new text end

new text begin An Indian education director shall be appointed by
the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Qualifications. new text end

new text begin The commissioner shall select the Indian education
director on the basis of outstanding professional qualifications and knowledge of
American Indian education, culture, practices, and beliefs. The Indian education director
serves in the unclassified service. The commissioner may remove the Indian education
director for cause. The commissioner is encouraged to seek qualified applicants who
are enrolled members of a tribe.
new text end

new text begin Subd. 3. new text end

new text begin Compensation. new text end

new text begin Compensation of the Indian education director shall be
established under chapter 15A.
new text end

new text begin Subd. 4. new text end

new text begin Duties; powers. new text end

new text begin (a) The Indian education director shall:
new text end

new text begin (1) serve as the liaison for the department with the Tribal Nations Education
Committee, the 11 reservations, the Minnesota Chippewa tribe, the Minnesota Indian
Affairs Council, and the urban advisory council;
new text end

new text begin (2) evaluate the state of American Indian education in Minnesota;
new text end

new text begin (3) engage the tribal bodies, community groups, parents of children eligible to
be served by Indian education programs, American Indian administrators and teachers,
persons experienced in the training of teachers for American Indian education programs,
the tribally controlled schools, and other persons knowledgeable in the field of American
Indian education and seek their advice on policies that can improve the quality of
American Indian education;
new text end

new text begin (4) advise the commissioner on the American Indian education issues, including:
new text end

new text begin (i) issues facing American Indian students;
new text end

new text begin (ii) policies for American Indian education;
new text end

new text begin (iii) awarding scholarships to eligible American Indian students and in administering
the commissioner's duties regarding awarding of American Indian postsecondary
preparation grants to school districts; and
new text end

new text begin (iv) administration of the commissioner's duties under sections 124D.71 to 124D.82
and other programs for the education of American Indian people;
new text end

new text begin (5) propose to the commissioner legislative changes that will improve the quality
of American Indian education;
new text end

new text begin (6) develop a strategic plan and a long-term framework for American Indian
education, in conjunction with the Minnesota Indian Affairs Council, that is updated every
five years and implemented by the commissioner, with goals to:
new text end

new text begin (i) increase American Indian student achievement, including increased levels of
proficiency and growth on statewide accountability assessments;
new text end

new text begin (ii) increase the number of American Indian teachers in public schools;
new text end

new text begin (iii) close the achievement gap between American Indian students and their more
advantaged peers;
new text end

new text begin (iv) increase the statewide graduation rate for American Indian students; and
new text end

new text begin (v) increase American Indian student placement in postsecondary programs and
the workforce;
new text end

new text begin (7) keep the American Indian community informed about the work of the department
by reporting to the Tribal Nations Education Committee at each committee meeting.
new text end

Sec. 14. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 120B.023,
subdivision 2, as Minnesota Statutes, section 120B.021, subdivision 4. The revisor shall
make necessary cross-reference changes consistent with the renumbering.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525;
3501.0530; 3501.0535; 3501.0540; 3501.0545; and 3501.0550,
new text end new text begin are repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2012, section 15.059, subdivision 5b, is amended to read:


Subd. 5b.

Continuation dependent on federal law.

Notwithstanding this section,
the following councils and committees do not expire unless federal law no longer requires
the existence of the council or committee:

(1) Rehabilitation Council for the Blind, created in section 248.10;

(2) Juvenile Justice Advisory Committee, created in section 299A.72;

(3) Governor's Workforce Development Council, created in section 116L.665;

(4) local workforce councils, created in section 116L.666, subdivision 2;

(5) Rehabilitation Council, created in section 268A.02, subdivision 2; deleted text begin and
deleted text end

(6) Statewide Independent Living Council, created in section 268A.02, subdivision
2
new text begin ; and
new text end

new text begin (7) Interagency Coordinating Council, created in section 125A.28new text end .

Sec. 2.

Minnesota Statutes 2012, section 125A.27, subdivision 8, is amended to read:


Subd. 8.

Eligibility for Part C.

"Eligibility for Part C" means eligibility for
deleted text begin early childhood special educationdeleted text end new text begin infant and toddler intervention servicesnew text end under section
125A.02 and Minnesota Rules.

Sec. 3.

Minnesota Statutes 2012, section 125A.27, subdivision 11, is amended to read:


Subd. 11.

Interagency child find systems.

"Interagency child find systems" means
activities developed on an interagency basis with the involvement of interagency early
intervention committees and other relevant community groupsnew text begin , including primary referral
sources included in Code of Federal Regulations, title 34, section 303.303(c),
new text end using
rigorous standards to actively seek out, identify, and refer infants and young children,
with, or at risk of, disabilities, and their families, deleted text begin including a childdeleted text end new text begin to reduce the need for
future services. The child find system must mandate referrals for a child
new text end under the age of
three who: (1) is deleted text begin involved indeleted text end new text begin the subject ofnew text end a substantiated case of abuse or neglect, or
(2) is identified as new text begin directly new text end affected by illegal substance abuse, or withdrawal symptoms
resulting from prenatal drug exposure, to reduce the need for future services.new text begin The referral
procedures must specify that a referral must occur within seven calendar days from the
date of identification.
new text end

Sec. 4.

Minnesota Statutes 2012, section 125A.27, subdivision 14, is amended to read:


Subd. 14.

Parent.

"Parent" means deleted text begin the biological parent with parental rights,
adoptive parent, legal guardian, or surrogate parent
deleted text end new text begin "parent" as defined by Code of Federal
Regulations, title 34, section 303.27, or a surrogate parent appointed in accordance with
Code of Federal Regulations, title 34, section 303.422, or United States Code, title 20,
section 1439(a)(5)
new text end .

Sec. 5.

Minnesota Statutes 2012, 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 governornew text begin and reasonably represent the population of Minnesotanew text end .
Council members must elect the council chairnew text begin , who may not be a representative of the
Department of Education
new text end . deleted text begin The representative of the commissioner may not serve as the
chair.
deleted text end 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.

new text begin On an annual basis, the council must prepare and submit an annual report to the
governor and the secretary of the federal Department of Education on the status of early
intervention services and programs for infants and toddlers with disabilities and their
families under the Individuals with Disabilities Education Act, United States Code, title
20, sections 1471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The
Minnesota Part C annual performance report may serve as the report.
new text end

Notwithstanding any other law to the contrary, the State Interagency Coordinating
Council deleted text begin expires on June 30, 2014deleted text end new text begin does not expire unless federal law no longer requires
the existence of the council or committee
new text end .

Sec. 6.

Minnesota Statutes 2012, section 125A.29, is amended to read:


125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL
BOARDS.

(a) It is the joint responsibility of county boards and school boards to coordinate,
provide, and pay for appropriate services, and to facilitate payment for services from public
and private sources. Appropriate services for children eligible under section 125A.02 must
be determined in consultation with parents, physicians, and other educational, medical,
health, and human services providers. The services provided must be in conformity with:

(1) an IFSP for each eligible infant and toddler from birth through age two and
the infant's or toddler's family including:

(i) American Indian infants and toddlers with disabilities and their families residing
on a reservation geographically located in the state;

(ii) infants and toddlers with disabilities who are homeless children and their
families; and

(iii) infants and toddlers with disabilities who are wards of the state; or

(2) an individualized education program (IEP) or individual service plan (ISP) for
each eligible child ages three through four.

(b) Appropriate new text begin early intervention new text end services include deleted text begin family education and
counseling, home visits, occupational and physical therapy, speech pathology, audiology,
psychological services, special instruction, nursing, respite, nutrition, assistive technology,
transportation and related costs, social work, vision services, case management
deleted text end new text begin services
provided in conformity with an IFSP that are designed to meet the special developmental
needs of an eligible child and the needs of the child's family related to enhancing the
child's development and that are selected in collaboration with the parent. These services
include core early intervention services and additional early intervention services listed in
this section and infant and toddler intervention services defined under United States Code,
title 20, sections 1431 to 1444 and Code of Federal Regulations, title 34, section 303,
new text end including service coordination under section 125A.33deleted text begin , medical services for diagnostic and
evaluation purposes, early identification, and screening, assessment, and health services
necessary to enable children with disabilities to benefit from early intervention services
deleted text end .

(c) School and county boards shall coordinate early intervention services. In the
absence of agreements established according to section 125A.39, service responsibilities
for children birth through age two are as follows:

(1) school boards must provide, pay for, and facilitate payment for special education
and related services required under sections 125A.03 and 125A.06;

(2) county boards must provide, pay for, and facilitate payment for noneducational
services of social work, psychology, transportation and related costs, nursing, respite, and
nutrition services not required under clause (1).

(d) School and county boards may develop an interagency agreement according
to section 125A.39 to establish agency responsibility that assures early intervention
services are coordinated, provided, paid for, and that payment is facilitated from public
and private sources.

(e) County and school boards must jointly determine the primary agency in this
cooperative effort and must notify the commissioner of the state lead agency of their
decision.

Sec. 7.

Minnesota Statutes 2012, section 125A.30, is amended to read:


125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.

(a) A school district, group of districts, or special education cooperative, in
cooperation with the health and human service agencies located in the county or counties
in which the district or cooperative is located, must establish an Interagency Early
Intervention Committee for children with disabilities under age five and their families
under this section, and for children with disabilities ages three to 22 consistent with
the requirements under sections 125A.023 and 125A.027. Committees must include
representatives of local health, education, and county human service agencies, county
boards, school boards, early childhood family education programs, Head Start, parents of
young children with disabilities under age 12, child care resource and referral agencies,
school readiness programs, current service providers, and may also include representatives
from other private or public agencies and school nurses. The committee must elect a chair
from among its members and must meet at least quarterly.

(b) The committee must develop and implement interagency policies and procedures
concerning the following ongoing duties:

(1) develop public awareness systems designed to inform potential recipient families,
especially parents with premature infants, or infants with other physical risk factors
associated with learning or development complications, of available programs and services;

(2) to reduce families' need for future services, and especially parents with premature
infants, or infants with other physical risk factors associated with learning or development
complications, implement interagency child find systems designed to actively seek out,
identify, and refer infants and young children with, or at risk of, disabilities, including
a child under the age of three who: (i) is deleted text begin involved indeleted text end new text begin the subject ofnew text end a substantiated case
of abuse or neglect or (ii) is identified as new text begin directly new text end affected by illegal substance abuse, or
withdrawal symptoms resulting from prenatal drug exposure;

(3) establish and evaluate the identification, referral, deleted text begin childdeleted text end new text begin screening, evaluation,
child-
new text end and familynew text begin -directednew text end assessment systems, procedural safeguard process,
and community learning systems to recommend, where necessary, alterations and
improvements;

(4) assure the development of individualized family service plans for all eligible
infants and toddlers with disabilities from birth through age two, and their families,
and individualized education programs and individual service plans when necessary to
appropriately serve children with disabilities, age three and older, and their families and
recommend assignment of financial responsibilities to the appropriate agencies;

(5) implement a process for assuring that services involve cooperating agencies at all
steps leading to individualized programs;

(6) facilitate the development of a deleted text begin transitionaldeleted text end new text begin transitionnew text end plan deleted text begin if a service provider is
not recommended to continue to provide services
deleted text end new text begin in the individual family service plan by
the time a child is two years and nine months old
new text end ;

(7) identify the current services and funding being provided within the community
for children with disabilities under age five and their families;

(8) develop a plan for the allocation and expenditure of deleted text begin additional state anddeleted text end federal
early intervention funds under United States Code, title 20, section 1471 et seq. (Part C,
Public Law 108-446) and United States Code, title 20, section 631, et seq. (Chapter I,
Public Law 89-313); and

(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal
law to enable a member of an interagency early intervention committee to allow another
member access to data classified as not public.

(c) The local committee shall alsodeleted text begin :
deleted text end

deleted text begin (1)deleted text end participate in needs assessments and program planning activities conducted by
local social service, health and education agencies for young children with disabilities
and their familiesdeleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (2) review and comment on the early intervention section of the total special
education system for the district, the county social service plan, the section or sections of
the community health services plan that address needs of and service activities targeted
to children with special health care needs, the section on children with special needs in
the county child care fund plan, sections in Head Start plans on coordinated planning and
services for children with special needs, any relevant portions of early childhood education
plans, such as early childhood family education or school readiness, or other applicable
coordinated school and community plans for early childhood programs and services, and
the section of the maternal and child health special project grants that address needs of and
service activities targeted to children with chronic illness and disabilities.
deleted text end

Sec. 8.

Minnesota Statutes 2012, section 125A.32, is amended to read:


125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).

(a) A team must participate in IFSP meetings to develop the IFSP. The team shall
include:

(1) a parent or parents of the childnew text begin , as defined in Code of Federal Regulations,
title 34, section 303.27
new text end ;

(2) other family members, as requested by the parent, if feasible to do so;

(3) an advocate or person outside of the family, if the parent requests that the
person participate;

(4) the service coordinator who has been working with the family since the
initial referral, or who has been designated by the public agency to be responsible for
implementation of the IFSP and coordination with other agencies including transition
services; deleted text begin and
deleted text end

(5) a person or persons involved in conducting evaluations and assessmentsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (6) as appropriate, persons who will be providing early intervention services under
the plan to the child or family.
new text end

(b) The IFSP must include:

(1) information about the child's developmental status;

(2) family information, with the consent of the family;

(3) measurable results or major outcomes expected to be achieved by the child with
the family's assistance, that include developmentally appropriate preliteracy and language
skills for the child, and the criteria, procedures, and timelines;

(4) specific early intervention services based on peer-reviewed research, to the
extent practicable, necessary to meet the unique needs of the child and the family to
achieve the outcomes;

(5) payment arrangements, if any;

(6) medical and other services that the child needs, but that are not required under
the Individual with Disabilities Education Act, United States Code, title 20, section 1471
et seq. (Part C, Public Law 108-446) including funding sources to be used in paying for
those services and the steps that will be taken to secure those services through public
or private sources;

(7) dates and duration of early intervention services;

(8) name of the service coordinator;

(9) steps to be taken to support a child's transition from deleted text begin earlydeleted text end new text begin infant and toddler
new text end intervention services to other appropriate services, including convening a transition
conference at least 90 days or, at the discretion of all parties, not more than nine months
before the child is eligible for preschool services; and

(10) deleted text begin signature of the parent anddeleted text end authorized signatures of the agencies responsible
for providing, paying for, or facilitating payment, or any combination of these, for deleted text begin early
deleted text end new text begin infant and toddlernew text end intervention services.

Sec. 9.

Minnesota Statutes 2012, section 125A.33, is amended to read:


125A.33 SERVICE COORDINATION.

(a) The team new text begin responsible for the initial evaluation and the child- and family-directed
assessment and for
new text end developing the IFSP under section 125A.32new text begin , if appropriate,new text end must
select a service coordinator to carry out service coordination activities on an interagency
basis. Service coordination must actively promote a family's capacity and competency
to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the
family's needs. Service coordination activities include:

(1) coordinating the performance of evaluations and assessments;

(2) facilitating and participating in the development, review, and evaluation of
individualized family service plans;

(3) assisting families in identifying available service providers;

(4) coordinating and monitoring the delivery of available services;

(5) informing families of the availability of advocacy services;

(6) coordinating with medical, health, and other service providers;

(7) facilitating the development of a transition plan new text begin to preschool, school, or if
appropriate, to other services,
new text end at least 90 days before the time the child is no longer
eligible for deleted text begin earlydeleted text end new text begin infant and toddlernew text end intervention services or, at the discretion of all parties,
not more than nine months prior to the child's deleted text begin eligibility for preschool servicesdeleted text end new text begin third
birthday
new text end , if appropriate;

(8) managing the early intervention record and submitting additional information to
the local primary agency at the time of periodic review and annual evaluations; and

(9) notifying a local primary agency when disputes between agencies impact service
delivery required by an IFSP.

(b) A service coordinator must be knowledgeable about children and families
receiving services under this section, requirements of state and federal law, and services
available in the interagency early childhood intervention system.new text begin The IFSP must include
the name of the services coordinator from the profession most relevant to the child's or
family's needs or who is otherwise qualified to carry out all applicable responsibilities
under the Individuals with Disabilities Education Act, United States Code, title 20,
sections 1471 to 1485 (Part C, Public Law 102-119), who will be responsible for
implementing the early intervention services identified in the child's IFSP, including
transition services, and coordination with other agencies and persons.
new text end

Sec. 10.

Minnesota Statutes 2012, section 125A.35, subdivision 1, is amended to read:


Subdivision 1.

Lead agency; allocation of resources.

The state lead agency must
administer the early intervention account that consists of federal allocations. The Part C
state plan must state the amount of federal resources in the early intervention account
available for use by local agencies. The state lead agency must distribute the funds to the
local primary agency new text begin designated by an Interagency Early Intervention Committee new text end based
on a new text begin formula that includes a new text end December 1 count of the prior year of Part C eligible children
for the following purposes:

(1) as provided in Code of Federal Regulations, title 34, part deleted text begin 303.425deleted text end new text begin 303.430new text end , to
arrange for payment for early intervention services not elsewhere available, or to pay for
services during the pendency of a conflict procedure, including mediation, complaints, due
process hearings, and interagency disputes; and

(2) to support interagency child find system activities.

Sec. 11.

Minnesota Statutes 2012, section 125A.36, is amended to read:


125A.36 PAYMENT FOR SERVICES.

Core early intervention services must be provided at public expense with no cost to
parents. Parents must be requested to assist in the cost of additional early intervention
services by using third-party payment sources deleted text begin and applying for available resourcesdeleted text end .
Payment structures permitted under state law must be used to pay for additional early
intervention services. Parental financial responsibility must be clearly defined in the
IFSP. A parent's inability to pay must not prohibit a child from receiving needed early
intervention services.

Sec. 12.

Minnesota Statutes 2012, section 125A.43, is amended to read:


125A.43 MEDIATION PROCEDURE.

(a) The commissioner, or the commissioner's designee, of the state lead agency must
use federal funds to provide mediation for the activities in paragraphs (b) and (c).

(b) A parent may resolve a dispute regarding issues in section 125A.42, paragraph
(b)
, clause (5), through mediation. If the parent chooses mediation, mediation must be
voluntary on the part of the parties. The parent and the public agencies must complete the
mediation process within 30 calendar days of the date the deleted text begin Office of Dispute Resolution
deleted text end new text begin Department of Educationnew text end receives a parent's written request for mediationnew text begin signed by
the parent and the district
new text end . The mediation process may not be used to delay a parent's
right to a due process hearing. The resolution of the mediation is deleted text begin notdeleted text end binding on deleted text begin any
party
deleted text end new text begin both partiesnew text end .

(c) Resolution of a dispute through mediation, or other form of alternative dispute
resolution, is not limited to formal disputes arising from the objection of a parent or
guardian and is not limited to the period following a request for a due process hearing.

(d) The commissioner shall provide training and resources to school districts to
facilitate early identification of disputes and access to mediation.

(e) The local primary agency may request mediation on behalf of involved agencies
when there are disputes between agencies regarding responsibilities to coordinate, provide,
pay for, or facilitate payment for early intervention services.

Sec. 13. new text begin RULEMAKING AUTHORITY.
new text end

new text begin The commissioner of education shall amend Minnesota Rules related to the provision
of special education under Part C of the Individuals with Disabilities Education Act using
the expedited rulemaking process in section 14.389. The commissioner shall amend rules
in response to new federal regulations in Code of Federal Regulations, title 34, part 303,
including definitions of and procedures related to evaluation and assessment, including
assessment of the child and family, initial evaluation and assessment, native language,
the use of informed clinical opinion as an independent basis to establish eligibility, and
transition of a toddler from Part C consistent with Code of Federal Regulations, title
34, sections 303.24, 303.25 and 303.321.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 125A.35, subdivisions 4 and 5, new text end new text begin are repealed.
new text end

ARTICLE 4

LIBRARIES

Section 1. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute
the term "Division of State Library Services" for "Library Development and Services,"
"Office of Library Development and Services," or "LDS" where "LDS" stands for "Library
Development and Services." The revisor shall also make grammatical changes related
to the changes in terms.
new text end

ARTICLE 5

EARLY CHILDHOOD EDUCATION

Section 1.

Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
8, as amended by Laws 2012, chapter 239, article 3, section 4, is amended to read:


Subd. 8.

Early childhood education scholarships.

For grants to early childhood
education scholarships for public or private early childhood preschool programs for
children ages 3 to 5:

$
2,000,000
.....
2013

(a) All children whose parents or legal guardians meet the eligibility requirements
of paragraph (b) established by the commissioner are eligible to receive early childhood
education scholarships under this section.

(b) A parent or legal guardian is eligible for an early childhood education scholarship
if the parent or legal guardian:

(1) has a child three or four years of age on September 1, beginning in calendar
year 2012; and

(2)(i) has income equal to or less than 47 percent of the state median income in the
current calendar year; or

(ii) can document their child's identification through another public funding
eligibility process, including the Free and Reduced Price Lunch Program, National School
Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal
Improving Head Start for School Readiness Act of 2007; Minnesota family investment
program under chapter 256J; and child care assistance programs under chapter 119B.
new text begin Early childhood scholarships may not be counted as earned income for the purposes of
medical assistance, MinnesotaCare, MFIP, child care assistance, or Head Start programs.
new text end

Each year, if this appropriation is insufficient to provide early childhood education
scholarships to all eligible children, the Department of Education shall make scholarships
available on a first-come, first-served basis.

The commissioner of education shall submit a written report to the education
committees of the legislature by January 15, 2012, describing its plan for implementation
of scholarships under this subdivision for the 2012-2013 school year.

Any balance in the first year does not cancel but is available in the second year.

The base for this program is $3,000,000 each year.