HF 630

4th Engrossment - 88th Legislature (2013 - 2014) Posted on 08/26/2013 02:05pm

A bill for an act
relating to education; providing funding and policy for early childhood and
family, prekindergarten through grade 12, and adult education, including general
education, student accountability, education excellence, charter schools, special
education, facilities, technology, nutrition, libraries, accounting, early childhood,
self-sufficiency, lifelong learning, state agencies, and forecast adjustments;
authorizing rulemaking; requiring reports; appropriating money; amending
Minnesota Statutes 2012, sections 15.059, subdivision 5b; 120A.20, subdivision
1; 120A.22, subdivisions 5, 8, 11, 12; 120A.24, subdivision 1; 120A.41;
120B.02; 120B.021, subdivision 1; 120B.023; 120B.024; 120B.11; 120B.125;
120B.128; 120B.15; 120B.30, subdivisions 1, 1a; 120B.31, subdivision 1;
120B.35, subdivision 3; 120B.36, subdivision 1; 121A.22, subdivision 2;
121A.2205; 121A.39; 122A.09, subdivision 4; 122A.18, subdivision 2; 122A.23,
subdivision 2; 122A.28, subdivision 1; 122A.33, subdivision 3; 122A.40,
subdivision 8; 122A.41, subdivision 5; 122A.415, by adding subdivisions;
122A.61, subdivision 1; 123A.73, subdivisions 3, 4, 5; 123B.41, subdivision 7;
123B.42, subdivision 3; 123B.53, subdivision 5; 123B.54; 123B.57, subdivision
4; 123B.591, subdivisions 2, 3; 123B.75, subdivision 5; 123B.88, subdivision
22; 123B.92, subdivisions 1, 5, 9; 124D.02, subdivision 1; 124D.03, subdivision
12; 124D.095, subdivision 10; 124D.10; 124D.11, subdivisions 1, 2, 4, 5;
124D.111, subdivision 1; 124D.119; 124D.122; 124D.128, subdivision 2;
124D.42; 124D.4531; 124D.52, by adding a subdivision; 124D.531, subdivision
1; 124D.65, subdivision 5; 124D.79, subdivision 1, by adding a subdivision;
125A.0941; 125A.0942; 125A.11, subdivision 1; 125A.27, subdivisions 8, 11,
14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33; 125A.35, subdivision 1;
125A.36; 125A.43; 125A.76, subdivisions 1, 4a, 8, by adding subdivisions;
125A.78, subdivision 2; 125A.79, subdivisions 1, 5, 8; 125B.26, subdivision 4;
126C.05, subdivisions 1, 5, 6, 15; 126C.10, subdivisions 1, 2, 2a, 2b, 2c, 3, 7,
8, 13, 13a, 14, 18, 24, 29, 31, 32, 34, 35, 36, by adding subdivisions; 126C.12,
subdivisions 1, 5; 126C.126; 126C.13, subdivision 4, by adding subdivisions;
126C.15, subdivisions 1, 2; 126C.17; 126C.20; 126C.40, subdivisions 1, 6;
126C.44; 127A.45, subdivisions 12a, 13; 127A.47, subdivisions 7, 8; 127A.51;
128D.11, subdivision 3; 134.32; 134.34; 134.351, subdivisions 3, 7; 134.353;
134.354; 134.355, subdivisions 1, 2, 3, 4, 5, 6; 134.36; 260A.02, subdivision
3; 260A.03; 260A.05, subdivision 1; 260A.07, subdivision 1; 260C.007,
subdivision 19; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First
Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3,
as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10, as
amended; article 2, section 50, subdivisions 2, as amended, 4, as amended, 5, as
amended, 6, as amended, 7, as amended, 9, as amended; article 3, section 11,
subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended; article
4, section 10, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as
amended; article 5, section 12, subdivisions 2, as amended, 3, as amended, 4,
as amended; article 6, section 2, subdivisions 2, as amended, 3, as amended, 5,
as amended; article 7, section 2, subdivisions 2, as amended, 3, as amended, 4,
as amended, 8, as amended; article 8, section 2, subdivisions 2, as amended, 3,
as amended; article 9, section 3, subdivision 2, as amended; proposing coding
for new law in Minnesota Statutes, chapters 120B; 121A; 124D; proposing
coding for new law as Minnesota Statutes, chapter 16F; repealing Minnesota
Statutes 2012, sections 120B.08; 120B.09; 123B.75, subdivision 6a; 124D.454,
subdivisions 3, 10, 11; 125A.35, subdivisions 4, 5; 125A.76, subdivisions 2, 4,
5, 7; 125A.79, subdivisions 6, 7; 126C.10, subdivisions 31a, 31b, 31c, 34, 35,
36; 126C.17, subdivision 13; 127A.50, subdivisions 1, 5; Minnesota Rules,
parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5, 6, 7, 9, 10, 11,
12, 13, 14, 15, 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 3501.0100;
3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160;
3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230;
3501.0240; 3501.0250; 3501.0270; 3501.0280, subparts 1, 2; 3501.0290;
3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530;
3501.0535; 3501.0540; 3501.0545; 3501.0550; 3501.1000; 3501.1020;
3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130;
3501.1140; 3501.1150; 3501.1160; 3501.1170; 3501.1180; 3501.1190.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:

Subdivision 1.

Age limitations; pupils.

(a) All schools supported in whole or
in part by state funds are public schools. Admission to a public school is free to any
person who: (1) resides within the district that operates the school; (2) is under 21 years of
age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age
requirements imposed by this section. Notwithstanding the provisions of any law to the
contrary, the conduct of all students under 21 years of age attending a public secondary
school is governed by a single set of reasonable rules and regulations promulgated by the
school board.

(b) A person shall not be admitted to a public 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 1st 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 any school board may establish a policy for admission of
selected pupils at an earlier age new text begin under section 124D.02 new text end .

(c) A pupil who becomes age 21 after enrollment is eligible for continued free public
school enrollment until at least one of the following occurs: (1) the first September 1 after
the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3)
the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4)
the end of the school year.

Sec. 2.

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 The school calendar for all-day kindergarten must include at least 850 hours of
instruction for the school year. 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 unless deleted text end new text begin has been new text end approved by the commissioner under section 124D.126.

Sec. 3.

Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:

Subd. 3.

Voluntary dissolution; referendum revenue.

As of the effective date of
the voluntary dissolution of a district and its attachment to one or more existing districts
pursuant to section 123A.46, the authorization for all referendum revenues previously
approved by the voters of all affected districts for those districts pursuant to section
126C.17, subdivision 9, or its predecessor provision, is canceled. However, if all of the
territory of any independent district is included in the enlarged district, and if the adjusted
net tax capacity of taxable property in that territory comprises 90 percent or more of
the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged
district's referendum revenue shall be determined as follows:

The referendum revenue shall be the revenue per deleted text begin resident marginal cost deleted text end new text begin adjusted
new text end pupil unit times the number of deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil units in the enlarged
district. Any new referendum revenue shall be authorized only after approval is granted
by the voters of the entire enlarged district in an election pursuant to section 126C.17,
subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 4.

Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:

Subd. 4.

Consolidation; maximum authorized referendum revenues.

(a) As
of the effective date of a consolidation pursuant to section 123A.48, if the plan for
consolidation so provides, or if the plan for consolidation makes no provision concerning
referendum revenues, the authorization for all referendum revenues previously approved
by the voters of all affected districts for those districts pursuant to section 126C.17,
subdivision 9, or its predecessor provision shall be recalculated as provided in this
subdivision. The referendum revenue authorization for the newly created district shall
be the revenue per deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil unit that would raise an amount
equal to the combined dollar amount of the referendum revenues authorized by each of
the component districts for the year preceding the consolidation, unless the referendum
revenue authorization of the newly created district is subsequently modified pursuant to
section 126C.17, subdivision 9.

(b) The referendum allowance for a consolidated district in the years following
consolidation equals the average of the consolidating districts' existing authorities for those
years, weighted by the districts' deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil units in the year
preceding consolidation. For purposes of this calculation, the referendum authorities used
for individual districts shall not decrease from year to year until such time as all existing
authorities for all the consolidating districts have fully expired, but shall increase if they
were originally approved with consumer price index-based or other annual increases.

(c) The referendum revenue authorization for the newly created district shall continue
for a period of time equal to the longest period authorized for any component district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 5.

Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:

Subd. 5.

Alternative method.

(a) As of the effective date of a consolidation
pursuant to section 123A.48, if the plan for consolidation so provides, the authorization
for all referendum revenues previously approved by the voters of all affected districts for
those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision
shall be combined as provided in this subdivision. The referendum revenue authorization
for the newly created district may be any allowance per deleted text begin resident marginal cost deleted text end new text begin adjusted
new text end pupil unit provided in the plan for consolidation, but may not exceed the allowance
per deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil unit that would raise an amount equal to the
combined dollar amount of the referendum revenues authorized by each of the component
districts for the year preceding the consolidation.

(b) The referendum allowance for a consolidated district in the years following
consolidation equals the average of the consolidating districts' existing authorities for those
years, weighted by the districts' deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil units in the year
preceding consolidation. For purposes of this calculation, the referendum authorities used
for individual districts shall not decrease from year to year until such time as all existing
authorities for all the consolidating districts have fully expired, but shall increase if they
were originally approved with consumer price index-based or other annual increases.

(c) The referendum revenue authorization for the newly created district shall
continue for a period of time equal to the longest period authorized for any component
district. The referendum revenue authorization for the newly created district may be
modified pursuant to section 126C.17, subdivision 9.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 6.

Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:

Subd. 7.

Elementary pupils.

"Elementary pupils" means pupils in grades
kindergarten through 6; provided, each kindergarten pupil new text begin in a half-day program new text end shall be
counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42,
and 123B.44 to 123B.48.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 7.

Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:

Subd. 3.

Cost; limitation.

(a) The cost per pupil of the textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests provided for in this section for each school year must not exceed the
statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
public elementary and secondary schools for textbooks, individualized instructional
materials and standardized tests as computed and established by the department by February
1 of the preceding school year from the most recent public school year data then available.

(b) The cost computed in clause (a) shall be increased by an inflation adjustment
equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
subdivision 2, from the second preceding school year to the current school year.
new text begin Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in
section 126C.10, subdivision 2, the commissioner shall use the amount of the formula
allowance for the current year minus $414 in determining the inflation adjustment for
fiscal years 2015 and 2016.
new text end

(c) The commissioner shall allot to the districts or intermediary service areas the
total cost for each school year of providing or loaning the textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests for the pupils in each nonpublic school. The allotment shall not
exceed the product of the statewide average expenditure per pupil, according to clause
(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
who make requests pursuant to this section and who are enrolled as of September 15 of
the current school year.

Sec. 8.

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. new text begin A school district may provide
transportation for a pupil participating in an articulated program operated under an
agreement between the school district and the postsecondary institution.
new text end

Sec. 9.

Minnesota Statutes 2012, section 123B.92, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

(1) the sum of:

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

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

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

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

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

(1) Regular transportation is:

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

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

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

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

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

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

(2) Excess transportation is:

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

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

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

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

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

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

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

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

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

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

(vii) transportation of pupils for a curricular field trip activity on a school bus
equipped with a power lift when the power lift is required by a student's disability or
section 504 plan; and

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

For purposes of computing special education initial aid under section 125A.76,
deleted text begin subdivision 2, deleted text end the cost of providing transportation for children with disabilities includes
(A) the additional cost of transporting a homeless student from a temporary nonshelter
home in another district to the school of origin, or a formerly homeless student from a
permanent home in another district to the school of origin but only through the end of
the academic year; and (B) depreciation on district-owned school buses purchased after
July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated
according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the
disabled transportation category must be excluded in calculating the actual expenditure
per pupil transported in the regular and excess transportation categories according to
paragraph (a). new text begin For purposes of subitem (A), a school district may transport a child who
does not have a school of origin to the same school attended by that child's sibling, if
the siblings are homeless.
new text end

(5) "Nonpublic nonregular transportation" is:

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 10.

Minnesota Statutes 2012, section 123B.92, subdivision 5, is amended to read:

Subd. 5.

District reports.

(a) Each district must report data to the department as
required by the department to account for transportation expenditures.

(b) Salaries and fringe benefits of district employees whose primary duties are
other than transportation, including central office administrators and staff, building
administrators and staff, teachers, social workers, school nurses, and instructional aides,
must not be included in a district's transportation expenditures, except that a district may
include salaries and benefits according to paragraph (c) for (1) an employee designated
as the district transportation director, (2) an employee providing direct support to the
transportation director, or (3) an employee providing direct transportation services such as
a bus driver or bus aide.

(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
clauses (1), (2), and (3), who work part time in transportation and part time in other areas
must not be included in a district's transportation expenditures unless the district maintains
documentation of the employee's time spent on pupil transportation matters in the form
and manner prescribed by the department.

(d) new text begin A school district that contracts for transportation service may allocate
transportation expense to transportation categories based upon contract rates. Districts
may only allocate transportation expense to transportation categories based upon contract
rates if contract rates are reasonably consistent on a cost-per-hour, cost-per-mile,
cost-per-route, or cost-per-student basis. In order to allocate transportation expense based
upon contract rates, a school district, if audited, must be able to demonstrate to the auditor
that variances in the application of transportation cost basis rates are appropriate.
new text end

new text begin (e) new text end Pupil transportation expenditures, excluding expenditures for capital outlay,
leased buses, student board and lodging, crossing guards, and aides on buses, deleted text begin must deleted text end new text begin may
new text end be allocated among transportation categories based on cost-per-mile or cost-per-student
regardless of whether the transportation services are provided on district-owned or
contractor-owned school buses. Expenditures for school bus driver salaries and fringe
benefits may either be directly charged to the appropriate transportation category or may
be allocated among transportation categories based on cost-per-mile or cost-per-student.
Expenditures by private contractors or individuals who provide transportation exclusively
in one transportation category must be charged directly to the appropriate transportation
category. Transportation services provided by contractor-owned school bus companies
incorporated under different names but owned by the same individual or group of
individuals must be treated as the same company for cost allocation purposes.

deleted text begin (e) Notwithstanding paragraph (d), districts contracting for transportation services
are exempt from the standard cost allocation method for authorized and nonauthorized
transportation categories if the district: (1) bids its contracts separately for authorized and
nonauthorized transportation categories and for special transportation separate from regular
and excess transportation; (2) receives bids or quotes from more than one vendor for these
transportation categories; and (3) the district's cost-per-mile does not vary more than ten
percent among categories, excluding salaries and fringe benefits of bus aides. If the costs
reported by the district for contractor-owned operations vary by more than ten percent
among categories, the department shall require the district to reallocate its transportation
costs, excluding salaries and fringe benefits of bus aides, among all categories.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 11.

Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:

Subd. 9.

Nonpublic pupil transportation aid.

(a) A district's nonpublic pupil
transportation aid for the 1996-1997 and later school years for transportation services for
nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this
section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does
not limit the obligation to transport pupils under sections 123B.84 to 123B.87.

(b) For regular and excess transportation according to subdivision 1, paragraph (b),
clauses (1) and (2), an amount equal to the product of:

(1) the district's actual expenditure per pupil transported in the regular and excess
transportation categories during the second preceding school year; times

(2) the number of nonpublic school pupils residing in the district who receive regular
or excess transportation service or reimbursement for the current school year; times

(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
the current school year to the formula allowance pursuant to section 126C.10, subdivision
2, for the second preceding school year.

(c) For nonpublic nonregular transportation according to subdivision 1, paragraph
(b), clause (5), an amount equal to the product of:

(1) the district's actual expenditure for nonpublic nonregular transportation during
the second preceding school year; times

(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
the current school year to the formula allowance pursuant to section 126C.10, subdivision
2, for the second preceding school year.

(d) Notwithstanding the amount of the formula allowance for fiscal deleted text begin year 2004
deleted text end new text begin years 2015 and 2016 new text end in section 126C.10, subdivision 2, the commissioner shall use the
amount of the formula allowance for the current year minus deleted text begin $415 deleted text end new text begin $414 new text end in determining
the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal deleted text begin year 2004
deleted text end new text begin years 2015 and 2016 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 12.

Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:

Subdivision 1.

Kindergarten instruction.

The board may establish and maintain
one or more kindergartens for the instruction of children and after July 1, 1974, shall
provide kindergarten instruction for all eligible children, either in the district or in
another district. All children to be eligible for kindergarten must be at least five years
of age on September 1 of the calendar year in which the school year commences. In
addition all children selected under an early admissions policy established by the school
board may be admitted. new text begin If established, a board-adopted early admissions policy must
describe the process and procedures for comprehensive evaluation in cognitive, social,
and emotional developmental domains to help determine the child's ability to meet
kindergarten grade expectations and progress to first grade in the subsequent year. The
comprehensive evaluation must use valid and reliable instrumentation, be aligned with
state kindergarten expectations, and include a parent report and teacher observations of
the child's knowledge, skills, and abilities. The early admissions policy must be made
available to parents in an accessible format and is subject to review by the commissioner
of education. The evaluation is subject to section 127A.41. new text end Nothing in this section
shall prohibit a school district from establishing Head Start, prekindergarten, or nursery
school classes for children below kindergarten age. Any school board with evidence that
providing kindergarten will cause an extraordinary hardship on the school district may
apply to the commissioner of education for an exception.

Sec. 13.

Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:

Subd. 2.

Commissioner designation.

(a) A state-approved alternative program
designated by the state must be a site. A state-approved alternative program must provide
services to students who meet the criteria in section 124D.68 and who are enrolled in:

(1) a district that is served by the state-approved alternative program; or

(2) a charter school located within the geographic boundaries of a district that is
served by the state-approved alternative program.

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

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

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

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

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

Sec. 14.

Minnesota Statutes 2012, section 124D.4531, is amended to read:

124D.4531 CAREER AND TECHNICAL deleted text begin LEVY deleted text end new text begin REVENUE new text end .

Subdivision 1.

Career and technical deleted text begin levy deleted text end new text begin revenue new text end .

(a) A district with a career and
technical program approved under this section for the fiscal year in which the levy is
certified deleted text begin may levy an amount deleted text end new text begin is eligible for career and technical revenue new text end equal to 35 percent
of approved expenditures in the fiscal year in which the levy is certified for the following:

(1) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year, including extended contracts, for services rendered
in the district's approved career and technical education programs new text begin , excluding salaries
reimbursed by another school district under clause (2) new text end ;

new text begin (2) amounts paid to another Minnesota school district for salaries of essential,
licensed personnel providing direct instructional services to students in that fiscal year for
services rendered in the district's approved career and technical education programs;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end contracted services provided by a public or private agency other than a
Minnesota school district or cooperative center under subdivision 7;

deleted text begin (3) deleted text end new text begin (4) new text end necessary travel between instructional sites by licensed career and technical
education personnel;

deleted text begin (4) deleted text end new text begin (5) new text end necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;

deleted text begin (5) deleted text end new text begin (6) new text end curriculum development activities that are part of a five-year plan for
improvement based on program assessment;

deleted text begin (6) deleted text end new text begin (7) new text end necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and

deleted text begin (7) deleted text end new text begin (8) new text end specialized vocational instructional supplies.

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

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

(d) The amount of the deleted text begin levy certified deleted text end new text begin revenue calculated new text end under this subdivision may
not exceed $17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013,
and deleted text begin $15,393,000 deleted text end new text begin $20,657,000 new text end for taxes payable in 2014.

(e) If the estimated deleted text begin levy deleted text end new text begin revenue new text end exceeds the amount in paragraph (d), the
commissioner must reduce the percentage in paragraph (a), clause (2), until the estimated
deleted text begin levy deleted text end new text begin revenue new text end no longer exceeds the limit in paragraph (d).

new text begin Subd. 1a. new text end

new text begin Career and technical levy. new text end

new text begin (a) For fiscal year 2014 only, a district may
levy an amount not more than the product of its career and technical revenue times the
lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit in the fiscal
year in which the levy is certified to the career and technical revenue equalizing factor.
The career and technical revenue equalizing factor for fiscal year 2014 equals $7,612.
new text end

new text begin (b) For fiscal year 2015 and later, a district may levy an amount not more than
the product of its career and technical revenue times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted pupil unit in the fiscal year in which the levy is
certified to the career and technical revenue equalizing factor. The career and technical
revenue equalizing factor for fiscal year 2015 and later equals $7,612.
new text end

new text begin Subd. 1b. new text end

new text begin Career and technical aid. new text end

new text begin For fiscal year 2014 and later, a district's
career and technical aid equals its career and technical revenue less its career and technical
levy. If the district levy is less than the permitted levy, the district's career and technical
aid shall be reduced proportionately.
new text end

Subd. 2.

Allocation from cooperative centers and intermediate districts.

For
purposes of this section, a cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education programs among participating
districts.

Subd. 3.

deleted text begin Levy deleted text end new text begin Revenue new text end guarantee.

Notwithstanding subdivision 1, paragraph (a),
the career and technical education deleted text begin levy deleted text end new text begin revenue new text end for a district is not less than the lesser of:

(1) the district's career and technical education deleted text begin levy authority deleted text end new text begin revenue new text end for the
previous fiscal year; or

(2) 100 percent of the approved expenditures for career and technical programs
included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.

Subd. 3a.

deleted text begin Levy, pay 2012-2014 deleted text end new text begin Revenue adjustments new text end .

Notwithstanding
subdivisions 1 new text begin , 1a, new text end and 3, for taxes payable in 2012 to 2014 only, the department must
calculate the career and technical deleted text begin levy authority deleted text end new text begin revenue new text end for each district according to
Minnesota Statutes 2010, section 124D.4531, and adjust the deleted text begin levy authority deleted text end new text begin revenue new text end for
each district proportionately to meet the statewide deleted text begin levy deleted text end new text begin revenue new text end target under subdivision 1,
paragraph (d). For purposes of calculating the deleted text begin levy deleted text end new text begin revenue new text end guarantee under subdivision
3, the career and technical education deleted text begin levy authority deleted text end new text begin revenue new text end for the previous fiscal year
is the deleted text begin levy authority deleted text end new text begin revenue new text end according to Minnesota Statutes 2010, section 124D.4531,
before adjustments to meet the statewide deleted text begin levy deleted text end new text begin revenue new text end target.

Subd. 4.

District reports.

Each district or cooperative center must report data to the
department for all career and technical education programs as required by the department
to implement the career and technical deleted text begin levy deleted text end new text begin revenue new text end formula.

Subd. 5.

Allocation from districts participating in agreements for secondary
education or interdistrict cooperation.

For purposes of this section, a district with a
career and technical program approved under this section that participates in an agreement
under section 123A.30 or 123A.32 must allocate its deleted text begin levy deleted text end new text begin revenue new text end authority under this
section among participating districts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
new text end

Sec. 15.

Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
in average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
section 124D.10; or for whom the resident district pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individualized education program is counted as the ratio
of the number of hours of assessment and education service to 825 times deleted text begin 1.25 deleted text end new text begin 1.0 new text end with a
minimum average daily membership of 0.28, but not more than deleted text begin 1.25 deleted text end new text begin 1.0 new text end pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times deleted text begin 1.25 deleted text end new text begin 1.0 new text end .

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individualized education
program to 875, but not more than one.

(d) deleted text begin A kindergarten pupil who is not included in paragraph (c) is counted as .612 pupil
units deleted text end new text begin A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
units if the pupil is enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
section 120A.41, or is counted as .55 pupil units, if the pupil is not enrolled in a free all-day,
every day kindergarten program available to all kindergarten pupils at the pupil's school new text end .

(e) A pupil who is in any of grades 1 to deleted text begin 3 deleted text end new text begin 6 new text end is counted as deleted text begin 1.115 deleted text end new text begin 1.0 new text end pupil units deleted text begin for
fiscal year 2000 and thereafter deleted text end .

(f) deleted text begin A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.
deleted text end

deleted text begin (g) deleted text end A pupil who is in any of grades 7 to 12 is counted as deleted text begin 1.3 deleted text end new text begin 1.2 new text end pupil units.

deleted text begin (h) deleted text end new text begin (g) new text end A pupil who is in the postsecondary enrollment options program is counted
as deleted text begin 1.3 deleted text end new text begin 1.2 new text end pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 16.

Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:

Subd. 5.

Adjusted pupil units.

deleted text begin (a) deleted text end Adjusted pupil units for a district or charter
school means the sum of:

(1) the number of pupil units served, according to subdivision 7, plus

(2) pupil units according to subdivision 1 for whom the district or charter school pays
tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus

(3) pupil units according to subdivision 1 for whom the district or charter school
receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.

deleted text begin (b) Adjusted marginal cost pupil units means the greater of:
deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
deleted text end

deleted text begin (2) the number of adjusted pupil units defined in paragraph (a) for the current school
year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 17.

Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:

Subd. 6.

Resident pupil units.

deleted text begin (a) deleted text end Resident pupil units for a district means the
number of pupil units according to subdivision 1 residing in the district.

deleted text begin (b) Resident marginal cost pupil units means the greater of:
deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
and .23 times the pupil units defined in paragraph (a) for the previous school year; or
deleted text end

deleted text begin (2) the number of resident pupil units defined in paragraph (a) for the current school
year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 18.

Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:

Subd. 15.

Learning year pupil units.

(a) When a pupil is enrolled in a learning
year program under section 124D.128, an area learning center or an alternative learning
program approved by the commissioner under sections 123A.05 and 123A.06, or a
contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more
than 935 hours in a school year for an elementary student, new text begin more than 850 hours in a school
year for a kindergarten student without a disability in an all-day kindergarten program,
new text end or more than 425 hours in a school year for a new text begin half-day new text end kindergarten student without a
disability, that pupil may be counted as more than one pupil in average daily membership
for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
be determined by the ratio of the number of hours of instruction provided to that pupil in
excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
or the number of hours required for a full-time elementary pupil in the district to 935 for
an elementary pupil in grades 1 through 6; deleted text begin and deleted text end (iii) the greater of 425 hours or the number
of hours required for a full-time kindergarten student without a disability in the district to
425 for a kindergarten student without a disability new text begin ; and (iv) the greater of 425 hours or the
number of hours required for a half-time kindergarten student without a disability in the
district to 425 for a half-day kindergarten student without a disability new text end . Hours that occur
after the close of the instructional year in June shall be attributable to the following fiscal
year. deleted text begin A kindergarten student must not be counted as more than 1.2 pupils in average daily
membership under this subdivision. deleted text end A student in new text begin kindergarten or new text end grades 1 through 12 must
not be counted as more than 1.2 pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an area learning center
or alternative learning program that has an independent study component, a district
must meet the requirements in this paragraph. The district must develop, for the pupil,
a continual learning plan consistent with section 124D.128, subdivision 3. Each school
district that has an area learning center or alternative learning program must reserve
revenue in an amount equal to at least 90 percent of the district average general education
revenue per pupil unit, minus an amount equal to the product of the formula allowance
according to section 126C.10, subdivision 2, times deleted text begin .0485 deleted text end new text begin .0466 new text end , calculated without basic
skills and transportation sparsity revenue, times the number of pupil units generated by
students attending an area learning center or alternative learning program. The amount of
reserved revenue available under this subdivision may only be spent for program costs
associated with the area learning center or alternative learning program. Basic skills
revenue generated according to section 126C.10, subdivision 4, by pupils attending the
eligible program must be allocated to the program.

(ii) General education revenue for a pupil in a state-approved alternative program
without an independent study component must be prorated for a pupil participating for less
than a full year, or its equivalent. The district must develop a continual learning plan for the
pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
learning center or alternative learning program must reserve revenue in an amount equal to
at least 90 percent of the district average general education revenue per pupil unit, minus
an amount equal to the product of the formula allowance according to section 126C.10,
subdivision 2, times deleted text begin .0485 deleted text end new text begin .0466 new text end , calculated without basic skills and transportation sparsity
revenue, times the number of pupil units generated by students attending an area learning
center or alternative learning program. The amount of reserved revenue available under this
subdivision may only be spent for program costs associated with the area learning center or
alternative learning program. Basic skills revenue generated according to section 126C.10,
subdivision 4, by pupils attending the eligible program must be allocated to the program.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 19.

Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

new text begin (a) For fiscal years 2013 and 2014, new text end the
general education revenue for each district equals the sum of the district's basic revenue,
extended time revenue, gifted and talented revenue, small schools revenue, basic skills
revenue, deleted text begin training and experience revenue, deleted text end secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin (b) For fiscal year 2015 and later, the general education revenue for each district
equals the sum of the district's basic revenue, extended time revenue, gifted and talented
revenue, declining enrollment revenue, small schools revenue, basic skills revenue,
secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue,
total operating capital revenue, equity revenue, pension adjustment revenue, and transition
revenue.
new text end

Sec. 20.

Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

new text begin For fiscal year 2014, new text end the basic revenue for each district
equals the formula allowance times the adjusted marginal cost pupil units for the school
year. deleted text begin The formula allowance for fiscal year 2011 is $5,124. The formula allowance for
fiscal year 2012 is $5,174. deleted text end new text begin For fiscal year 2015 and later, the basic revenue for each district
equals the formula allowance times the adjusted pupil units for the school year. new text end The formula
allowance for fiscal year 2013 deleted text begin and subsequent years deleted text end is $5,224. new text begin The formula allowance for
fiscal year 2014 is $5,302. The formula allowance for fiscal year 2015 and later is $5,806.
new text end

Sec. 21.

Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:

Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue
is equal to the product of deleted text begin $4,601 deleted text end new text begin $5,017 new text end and the sum of the adjusted deleted text begin marginal cost deleted text end pupil
units of the district for each pupil in average daily membership in excess of 1.0 and less
than 1.2 according to section 126C.05, subdivision 8.

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, and other programming authorized
under the learning year program.

Sec. 22.

Minnesota Statutes 2012, section 126C.10, subdivision 2b, is amended to read:

Subd. 2b.

Gifted and talented revenue.

Gifted and talented revenue for each
district equals the district's adjusted deleted text begin marginal cost deleted text end pupil units for that school year times
deleted text begin $12 for fiscal year 2008 and later deleted text end new text begin $13 new text end . A school district must reserve gifted and talented
revenue and, consistent with section 120B.15, must spend the revenue only to:

(1) identify gifted and talented students;

(2) provide education programs for gifted and talented students; or

(3) provide staff development to prepare teachers to best meet the unique needs
of gifted and talented students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 23.

Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:

Subd. 2c.

Small schools revenue.

new text begin (a) new text end A school district, not including a charter
school, is eligible for small schools revenue equal to the new text begin greater of the calculation under
paragraph (b) or (d).
new text end

new text begin (b) The new text end product of:

(1) deleted text begin $5,224 deleted text end new text begin $544 new text end ;

(2) the district's adjusted deleted text begin marginal cost deleted text end pupil units for that year; new text begin and
new text end

(3) the greater of zero or the ratio of (i) deleted text begin 1,000 deleted text end new text begin 960 new text end less the district's adjusted deleted text begin marginal
cost deleted text end pupil units for that year, to (ii) deleted text begin 1,000; and
deleted text end

deleted text begin (4) 0.10 deleted text end new text begin 960 new text end .

new text begin (c) For the purpose of revenue calculated under paragraph (d), "district" includes a
qualifying high school under subdivision 6 that is located in a district with more than one
qualifying high school under subdivision 6.
new text end

new text begin (d) The product of:
new text end

new text begin (1) $544;
new text end

new text begin (2) the district's adjusted pupil units for that year; and
new text end

new text begin (3) the greater of zero or the ratio of (i) 960 less the district's adjusted pupil units
for that year, to (ii) 960.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2015 and
later.
new text end

Sec. 24.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:

new text begin Subd. 2d. new text end

new text begin Declining enrollment revenue. new text end

new text begin A school district's declining enrollment
revenue equals the greater of zero or the product of: (1) 28 percent of the formula
allowance for that year and (2) the difference between the adjusted pupil units for the
preceding year and the adjusted pupil units for the current year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 25.

Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) new text begin For fiscal year 2014, new text end the
compensatory education revenue for each building in the district equals the formula
allowance minus $415 times the compensation revenue pupil units computed according
to section 126C.05, subdivision 3. new text begin For fiscal year 2015 and later, the compensatory
education revenue for each building in the district equals the formula allowance minus
$839 times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3. new text end Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

(b) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning center changes prior to the start
of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

Sec. 26.

Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:

Subd. 7.

Secondary sparsity revenue.

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

(1) the formula allowance for the school year new text begin minus $530 new text end , multiplied by

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 27.

Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:

Subd. 8.

Elementary sparsity revenue.

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

(1) the formula allowance for the year new text begin minus $530 new text end , multiplied by

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 28.

Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:

Subd. 13.

Total operating capital revenue.

(a) Total operating capital revenue for
a district equals the amount determined under paragraph (b) or (c), plus deleted text begin $73 deleted text end new text begin $79 new text end times the
adjusted deleted text begin marginal cost deleted text end pupil units for the school year. The revenue must be placed in a
reserved account in the general fund and may only be used according to subdivision 14.

(b) Capital revenue for a district equals deleted text begin $100 deleted text end new text begin $109 new text end times the district's maintenance
cost index times its adjusted deleted text begin marginal cost deleted text end pupil units for the school year.

(c) The revenue for a district that operates a program under section 124D.128, is
increased by an amount equal to deleted text begin $30 deleted text end new text begin $31 new text end times the number of deleted text begin marginal cost deleted text end new text begin adjusted new text end pupil
units served at the site where the program is implemented.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 29.

Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year deleted text begin 2007 deleted text end new text begin 2015 new text end and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin $10,194 deleted text end new text begin $14,500 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2015 and later.
new text end

Sec. 30.

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 materials deleted text end new text begin hardware, software, and
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 textbooks new text begin as defined in section 123B.41, subdivision 2 new 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. 31.

Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:

Subd. 18.

Transportation sparsity revenue allowance.

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

(i) Multiply the formula allowance according to subdivision 2, by deleted text begin .1469 deleted text end new text begin .141 new text end .

(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
26/100 power.

(iii) Multiply the result in clause (ii) by the district's density index raised to the
13/100 power.

(iv) Multiply the formula allowance according to subdivision 2, by deleted text begin .0485 deleted text end new text begin .0466 new text end .

(v) Subtract the result in clause (iv) from the result in clause (iii).

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 32.

Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:

Subd. 24.

Equity revenue.

(a) A school district qualifies for equity revenue if:

(1) the school district's adjusted deleted text begin marginal cost deleted text end pupil unit amount of basic revenue,
transition revenue, and referendum revenue is less than the value of the school district at
or immediately above the 95th percentile of school districts in its equity region for those
revenue categories; and

(2) the school district's administrative offices are not located in a city of the first
class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives referendum revenue under
section 126C.17, subdivision 4, equals the product of (1) the district's adjusted deleted text begin marginal
cost deleted text end pupil units for that year; times (2) the sum of (i) deleted text begin $13 deleted text end new text begin $14 new text end , plus (ii) deleted text begin $75 deleted text end new text begin $80 new text end , times the
school district's equity index computed under subdivision 27.

(c) Equity revenue for a qualifying district that does not receive referendum revenue
under section 126C.17, subdivision 4, equals the product of the district's adjusted deleted text begin marginal
cost deleted text end pupil units for that year times deleted text begin $13 deleted text end new text begin $14 new text end .

(d) A school district's equity revenue is increased by the greater of zero or an amount
equal to the district's resident deleted text begin marginal cost deleted text end pupil units times the difference between ten
percent of the statewide average amount of referendum revenue per resident deleted text begin marginal cost
deleted text end pupil unit for that year and the district's referendum revenue per resident deleted text begin marginal cost
deleted text end pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
that year.

(e) A school district's equity revenue for a school district located in the metro equity
region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.

(f) deleted text begin For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), deleted text end A school
deleted text begin district that has per pupil referendum revenue below the 95th percentile qualifies for
deleted text end new text begin district's new text end additional equity revenue deleted text begin equal to $46 deleted text end new text begin equals $50 new text end times its adjusted deleted text begin marginal
cost deleted text end pupil units.

deleted text begin (g) A district that does not qualify for revenue under paragraph (f) qualifies for
equity revenue equal to $46 times its adjusted marginal cost pupil units.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 33.

Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:

Subd. 29.

Equity levy.

To obtain equity revenue for fiscal year deleted text begin 2005 deleted text end new text begin 2015 new text end and later,
a district may levy an amount not more than the product of its equity revenue for the
fiscal year times the lesser of one or the ratio of its referendum market value per resident
deleted text begin marginal cost deleted text end pupil unit to deleted text begin $476,000 deleted text end new text begin $510,000 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 34.

Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:

Subd. 31.

Transition revenue.

(a) A district's transition allowance equals new text begin the sum of
the transition revenue the district would have received for fiscal year 2015 under Minnesota
Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and new text end the greater of zero or
deleted text begin the product of the ratio of the number of adjusted marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's
adjusted marginal cost pupil units for fiscal year 2004, times deleted text end the difference between:

(1) the deleted text begin lesser deleted text end new text begin sum new text end of new text begin : new text end

new text begin (i) new text end the deleted text begin district's deleted text end general education revenue deleted text begin per adjusted marginal cost pupil unit
for fiscal year 2003 or the amount of general education revenue deleted text end the district would have
received deleted text begin per adjusted marginal cost pupil unit deleted text end for fiscal year deleted text begin 2004 deleted text end new text begin 2015 new text end according to
Minnesota Statutes deleted text begin 2002, deleted text end new text begin 2012, section 126C.10;
new text end

new text begin (ii) the integration revenue the district received for fiscal year 2013 under Minnesota
Statutes 2012, section 124D.86;
new text end

new text begin (iii) the pension adjustment the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 127A.50;
new text end

new text begin (iv) the special education aid the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 125A.76; and
new text end

new text begin (v) the special education excess cost aid the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 125A.79; new text end and

(2) the new text begin sum of the new text end district's new text begin :
new text end

new text begin (i) new text end general education revenue for fiscal year deleted text begin 2004 deleted text end new text begin 2015 new text end excluding transition revenue
new text begin under section 126C.10;
new text end

new text begin (ii) achievement and integration revenue for fiscal year 2015 under section
124D.862; and
new text end

new text begin (iii) special education aid for fiscal year 2015 under section 125A.76; and
new text end

divided by the number of adjusted deleted text begin marginal cost deleted text end pupil units deleted text begin the district would have
counted deleted text end for fiscal year deleted text begin 2004 under Minnesota Statutes 2002 deleted text end new text begin 2015 new text end .

deleted text begin (b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of
the product of the district's transition allowance times the district's adjusted marginal cost
pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end A district's transition revenue for fiscal year deleted text begin 2010 deleted text end new text begin 2015 new text end and later equals deleted text begin the
sum of deleted text end the product of the district's transition allowance times the district's adjusted deleted text begin marginal
cost deleted text end pupil units deleted text begin plus the district's transition for prekindergarten revenue under subdivision
31a plus the district's transition for tuition reciprocity revenue under subdivision 31c deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 35.

Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:

Subd. 32.

Transition levy.

To obtain transition revenue for fiscal year deleted text begin 2005 deleted text end new text begin 2015
new text end and later, a district may levy an amount not more than the product of its transition revenue
for the fiscal year times the lesser of one or the ratio of its referendum market value per
resident deleted text begin marginal cost deleted text end pupil unit to deleted text begin $476,000 deleted text end new text begin $510,000 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 36.

Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:

Subd. 34.

Basic alternative teacher compensation aid.

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

deleted text begin (b) deleted text end For fiscal years deleted text begin 2010 and later deleted text end new text begin 2013 and 2014 only new text end , the basic alternative
teacher compensation aid for a school with a plan approved under section 122A.414,
subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under
section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
an intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous year, or on
October 1 of the current year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under section 122A.415, subdivision 1.

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

Sec. 37.

Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:

Subd. 35.

Alternative teacher compensation levy.

For fiscal deleted text begin year 2007 deleted text end new text begin years 2013
new text end and deleted text begin later deleted text end new text begin 2014 only new text end , the alternative teacher compensation levy for a district receiving basic
alternative teacher compensation aid equals the product of (1) the difference between the
district's alternative teacher compensation revenue and the district's basic alternative
teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
net tax capacity per adjusted pupil unit to $5,634.

Sec. 38.

Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:

Subd. 36.

Alternative teacher compensation aid.

(a) For fiscal deleted text begin year 2007 deleted text end new text begin years
2013 new text end and deleted text begin later deleted text end new text begin 2014 only new text end , a district's alternative teacher compensation equalization aid
equals the district's alternative teacher compensation revenue minus the district's basic
alternative teacher compensation aid minus the district's alternative teacher compensation
levy. If a district does not levy the entire amount permitted, the alternative teacher
compensation equalization aid must be reduced in proportion to the actual amount levied.

(b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.

Sec. 39.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:

new text begin Subd. 38. new text end

new text begin Pension adjustment revenue. new text end

new text begin A school district's pension adjustment
revenue equals the greater of zero or the product of:
new text end

new text begin (1) the difference between the district's adjustment under Minnesota Statutes 2012,
section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state
average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for
fiscal year 2014 per adjusted pupil unit; and
new text end

new text begin (2) the district's adjusted pupil units for the fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 40.

Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:

Subdivision 1.

Revenue.

Of a district's general education revenue for fiscal year
deleted text begin 2000 deleted text end new text begin 2015 new text end and thereafter each school district shall reserve an amount equal to deleted text begin the formula
deleted text end deleted text begin allowance multiplied by deleted text end the following calculation:

(1) deleted text begin the sum of adjusted marginal cost pupils in deleted text end average daily membership, according
to section 126C.05, subdivision 5, in kindergarten times deleted text begin .057 deleted text end new text begin $299 new text end ; plus

(2) deleted text begin the sum of adjusted marginal cost pupils in deleted text end average daily membership, according
to section 126C.05, subdivision 5, in grades 1 to deleted text begin 3 deleted text end new text begin 6 new text end times deleted text begin .115; plus deleted text end new text begin $459.
new text end

deleted text begin (3) the sum of adjusted marginal cost pupils in average daily membership, according
to section 126C.05, subdivision 5, in grades 4 to 6 times .06.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2015 and later.
new text end

Sec. 41.

Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:

Subd. 5.

Additional revenue use.

If the board of a district determines that the
district has achieved and is maintaining the class sizes specified in subdivision 4, the board
may use the revenue to reduce class size in grades 4, 5, and 6, deleted text begin provide all-day, everyday
kindergarten, deleted text end prepare and use individualized learning plans, improve program offerings,
purchase instructional material, services, or technology, or provide staff development
needed for reduced class sizes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015.
new text end

Sec. 42.

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

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

A school district may spend general education revenue on extended time
kindergarten and prekindergarten programs. new text begin At the school board's discretion, the district
may use revenue generated by the all-day kindergarten pupil count under section 126C.05,
subdivision 1, paragraph (d), to meet the needs of three- and four-year-olds in the district.
A school district may not use these funds on programs for three- and four-year-old children
while maintaining a fee-based all-day kindergarten program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 43.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Student achievement rate. new text end

new text begin The commissioner must establish the student
achievement rate by July 1 of each year for levies payable in the following year. The
student achievement rate must be a rate, rounded up to the nearest hundredth of a percent,
that, when applied to the adjusted net tax capacity for all districts, raises the amount
specified in this subdivision. The student achievement rate must be the rate that raises
$20,000,000 for fiscal year 2015 and later years. The student achievement rate may not
be changed due to changes or corrections made to a district's adjusted net tax capacity
after the rate has been established.
new text end

Sec. 44.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:

new text begin Subd. 3b. new text end

new text begin Student achievement levy. new text end

new text begin To obtain general education revenue, a
district may levy an amount not to exceed the student achievement rate times the adjusted
net tax capacity of the district for the preceding year. If the amount of the student
achievement levy would exceed the general education revenue, the student achievement
levy must be determined according to subdivision 3c.
new text end

Sec. 45.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:

new text begin Subd. 3c. new text end

new text begin Student achievement levy; districts off the formula. new text end

new text begin (a) If the amount
of the student achievement levy for a district exceeds the district's general education
revenue, excluding operating capital revenue, equity revenue, and transition revenue, the
amount of the student achievement levy must be limited to the district's general education
revenue, excluding operating capital revenue, equity revenue, and transition revenue.
new text end

new text begin (b) A levy made according to this subdivision shall also be construed to be the levy
made according to subdivision 3b.
new text end

Sec. 46.

Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:

Subd. 4.

General education aid.

new text begin (a) new text end For fiscal years deleted text begin 2007 deleted text end new text begin 2013 new text end and deleted text begin later deleted text end new text begin 2014 only new text end ,
a district's general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and

(8) online learning aid according to section 124D.096.

new text begin (b) For fiscal year 2015 and later, a district's general education aid equals:
new text end

new text begin (1) general education revenue, excluding operating capital revenue, equity revenue,
and transition revenue, minus the student achievement levy, multiplied times the ratio of
the actual amount of student achievement levy levied to the permitted student achievement
levy; plus
new text end

new text begin (2) equity aid under section 126C.10, subdivision 30; plus
new text end

new text begin (3) transition aid under section 126C.10, subdivision 33; plus
new text end

new text begin (4) shared time aid under section 126C.10, subdivision 7; plus
new text end

new text begin (5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
new text end

new text begin (6) online learning aid under section 124D.096.
new text end

Sec. 47.

Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:

Subdivision 1.

Use of revenue.

The basic skills revenue under section 126C.10,
subdivision 4, must be reserved and used to meet the educational needs of pupils who
enroll under-prepared to learn and whose progress toward meeting state or local content
or performance standards is below the level that is appropriate for learners of their age.
new text begin Basic skills revenue may also be used for programs designed to prepare children and their
families for entry into school whether the student first enrolls in kindergarten or first grade.
new text end Any of the following may be provided to meet these learners' needs:

(1) direct instructional services under the assurance of mastery program according
to section 124D.66;

(2) remedial instruction in reading, language arts, mathematics, other content areas,
or study skills to improve the achievement level of these learners;

(3) additional teachers and teacher aides to provide more individualized instruction
to these learners through individual tutoring, lower instructor-to-learner ratios, or team
teaching;

(4) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract
with a community-based organization;

(5) comprehensive and ongoing staff development consistent with district and site
plans according to section 122A.60, for teachers, teacher aides, principals, and other
personnel to improve their ability to identify the needs of these learners and provide
appropriate remediation, intervention, accommodations, or modifications;

(6) instructional materials, digital learning, and technology appropriate for meeting
the individual needs of these learners;

(7) programs to reduce truancy, encourage completion of high school, enhance
self-concept, provide health services, provide nutrition services, provide a safe and secure
learning environment, provide coordination for pupils receiving services from other
governmental agencies, provide psychological services to determine the level of social,
emotional, cognitive, and intellectual development, and provide counseling services,
guidance services, and social work services;

(8) bilingual programs, bicultural programs, and programs for English learners;

(9) all day kindergarten;

(10) new text begin early education programs, parent-training programs, school readiness programs,
kindergarten programs for four-year-olds, voluntary home visits under section 124D.13,
subdivision 4, and other outreach efforts designed to prepare children for kindergarten;
new text end

new text begin (11) new text end extended school day and extended school year programs; and

deleted text begin (11) deleted text end new text begin (12) new text end substantial parent involvement in developing and implementing remedial
education or intervention plans for a learner, including learning contracts between the
school, the learner, and the parent that establish achievement goals and responsibilities of
the learner and the learner's parent or guardian.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 48.

Minnesota Statutes 2012, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

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

(b) Notwithstanding paragraph (a), a district or cooperative may allocate up to
five percent of the amount of compensatory revenue that the district receives to school
sites according to a plan adopted by the school board new text begin , and a district or cooperative may
allocate up to an additional five percent of its compensatory revenue for activities under
subdivision 1, clause (10), according to a plan adopted by the school board new text end . The money
reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but
may be spent on students in any grade, including students attending school readiness or
other prekindergarten programs.

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

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unit.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
new text end

Sec. 49.

Minnesota Statutes 2012, section 126C.17, is amended to read:

126C.17 REFERENDUM REVENUE.

Subdivision 1.

Referendum allowance.

deleted text begin (a) For fiscal year 2003 and later, a district's
initial referendum revenue allowance equals the sum of the allowance under section
126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
plus the referendum conversion allowance approved under subdivision 13, minus $415.
For districts with more than one referendum authority, the reduction must be computed
separately for each authority. The reduction must be applied first to the referendum
conversion allowance and next to the authority with the earliest expiration date. A
district's initial referendum revenue allowance may not be less than zero.
deleted text end

deleted text begin (b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
fiscal year 2003 and later.
deleted text end

deleted text begin (c) For fiscal year 2004 and later, a district's referendum revenue allowance equals
the sum of:
deleted text end

deleted text begin (1) the product of (i) the ratio of the resident marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
year 2003 and later, plus
deleted text end

deleted text begin (2) any additional allowance per resident marginal cost pupil unit authorized under
subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
deleted text end

new text begin (a) A district's initial referendum allowance for fiscal year 2015 equals the result of
the following calculations:
new text end

new text begin (1) multiply the referendum allowance the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
elections held before July 1, 2013, by the resident marginal cost pupil units the district
would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
new text end

new text begin (2) add to the result of clause (1) the adjustment the district would have received
under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
(c), based on elections held before July 1, 2013;
new text end

new text begin (3) divide the result of clause (2) by the district's adjusted pupil units for fiscal
year 2015; and
new text end

new text begin (4) if the result of clause (3) is less than zero, set the allowance to zero.
new text end

new text begin (b) A district's referendum allowance equals the sum of the district's initial
referendum allowance for fiscal year 2015, plus any additional referendum allowance per
adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal
year 2016 or later. For a district with more than one referendum allowance for fiscal year
2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under
paragraph (a) must be divided into components such that the same percentage of the
district's allowance expires at the same time as the old allowances would have expired
under Minnesota Statutes 2012, section 126C.17.
new text end

Subd. 2.

Referendum allowance limit.

(a) Notwithstanding subdivision 1, for fiscal
year deleted text begin 2007 deleted text end new text begin 2015 new text end and later, a district's referendum allowance must not exceed deleted text begin the greater of:
deleted text end

deleted text begin (1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
times the annual inflationary increase as calculated under paragraph (b) plus (ii) its
referendum conversion allowance for fiscal year 2003, minus (iii) $215;
deleted text end

deleted text begin (2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times deleted text end the
annual inflationary increase as calculated under paragraph (b) deleted text begin ; or deleted text end new text begin times the greatest of:
new text end

new text begin (1) $1,845;
new text end

new text begin (2) the sum of the referendum revenue the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
elections held before July 1, 2013, and the adjustment the district would have received
under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
units for fiscal year 2015; or
new text end

new text begin (3) the product of the referendum allowance limit the district would have received
for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
the resident marginal cost pupil units the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
the district's adjusted pupil units for fiscal year 2015; or
new text end

deleted text begin (3) deleted text end new text begin (4) new text end for a newly reorganized district created after July 1, deleted text begin 2006 deleted text end new text begin 2013 new text end , the referendum
revenue authority for each reorganizing district in the year preceding reorganization divided
by its deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil units for the year preceding reorganization.

(b) For purposes of this subdivision, for fiscal year deleted text begin 2005 deleted text end new text begin 2016 new text end and later, "inflationary
increase" means one plus the percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor Standards, for the current
fiscal year to fiscal year deleted text begin 2004 deleted text end new text begin 2015 new text end . For fiscal deleted text begin years 2009 deleted text end new text begin year 2016 new text end and later, for purposes
of paragraph (a), clause deleted text begin (1) deleted text end new text begin (3) new text end , the inflationary increase equals deleted text begin the inflationary increase
for fiscal year 2008 plus deleted text end one-fourth of the percentage increase in the formula allowance
for that year compared with the formula allowance for fiscal year deleted text begin 2008 deleted text end new text begin 2015 new text end .

Subd. 3.

Sparsity exception.

A district that qualifies for sparsity revenue under
section 126C.10 is not subject to a referendum allowance limit.

Subd. 4.

Total referendum revenue.

The total referendum revenue for each district
equals the district's referendum allowance times the deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil
units for the school year.

Subd. 5.

Referendum equalization revenue.

(a) deleted text begin For fiscal year 2003 and later,
deleted text end A district's referendum equalization revenue equals the sum of the first tier referendum
equalization revenue and the second tier referendum equalization revenue.

(b) A district's first tier referendum equalization revenue equals the district's first
tier referendum equalization allowance times the district's deleted text begin resident marginal cost deleted text end new text begin adjusted
new text end pupil units for that year.

(c) deleted text begin For fiscal year 2006, a district's first tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
of the district's referendum allowance under subdivision 1 or $600.
deleted text end

deleted text begin For fiscal year 2008 and later, deleted text end A district's first tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or deleted text begin $700 deleted text end new text begin $760 new text end .

(d) A district's second tier referendum equalization revenue equals the district's
second tier referendum equalization allowance times the district's deleted text begin resident marginal cost
deleted text end new text begin adjusted new text end pupil units for that year.

(e) deleted text begin For fiscal year 2006, a district's second tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
of the formula allowance, minus the district's first tier referendum equalization allowance.
For fiscal year 2007 and later, deleted text end A district's second tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or deleted text begin 26 deleted text end new text begin 25 new text end percent
of the formula allowance, minus the district's first tier referendum equalization allowance.

(f) Notwithstanding paragraph (e), the second tier referendum allowance for a
district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
referendum allowance under subdivision 1 minus the district's first tier referendum
equalization allowance.

Subd. 6.

Referendum equalization levy.

(a) For fiscal year 2003 and later,
a district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident deleted text begin marginal cost deleted text end pupil unit to deleted text begin $476,000 deleted text end new text begin $510,000 new text end .

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident deleted text begin marginal cost deleted text end pupil unit to deleted text begin $270,000 deleted text end new text begin $290,000 new text end .

Subd. 7.

Referendum equalization aid.

(a) A district's referendum equalization aid
equals the difference between its referendum equalization revenue and levy.

(b) If a district's actual levy for first or second tier referendum equalization revenue
is less than its maximum levy limit for that tier, aid shall be proportionately reduced.

(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
referendum revenue, must not exceed deleted text begin 26 deleted text end new text begin 25 new text end percent of the formula allowance times the
district's deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil units. A district's referendum levy is
increased by the amount of any reduction in referendum aid under this paragraph.

Subd. 7a.

Referendum tax base replacement aid.

For each school district that
had a referendum allowance for fiscal year 2002 exceeding $415, for each separately
authorized referendum levy, the commissioner of revenue, in consultation with the
commissioner of education, shall certify the amount of the referendum levy in taxes
payable year 2001 attributable to the portion of the referendum allowance exceeding $415
levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section
273.13, excluding the portion of the tax paid by the portion of class 2a property consisting
of the house, garage, and surrounding one acre of land. The resulting amount must be
used to reduce the district's referendum levy amount otherwise determined, and must be
paid to the district each year that the referendum authority remains in effect, is renewed,
or new referendum authority is approved. The aid payable under this subdivision must
be subtracted from the district's referendum equalization aid under subdivision 7. The
referendum equalization aid after the subtraction must not be less than zero.

new text begin Subd. 7b. new text end

new text begin Referendum aid guarantee. new text end

new text begin (a) Notwithstanding subdivision 7, a
district's referendum equalization aid for fiscal year 2015 must not be less than the sum
of the referendum equalization aid the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
7, paragraphs (a), (b), and (c).
new text end

new text begin (b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016
and later, for a district qualifying for additional aid under paragraph (a) for fiscal year
2015, must not be less than the product of (1) the district's referendum equalization aid
for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum
revenue for that school year to the district's referendum revenue for fiscal year 2015, times
(3) the lesser of one or the ratio of the district's referendum market value used for fiscal
year 2015 referendum equalization calculations to the district's referendum market value
used for that year's referendum equalization calculations.
new text end

Subd. 8.

Unequalized referendum levy.

Each year, a district may levy an amount
equal to the difference between its total referendum revenue according to subdivision 4
and its referendum equalization revenue according to subdivision 5.

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district
at a referendum called for the purpose. The referendum may be called by the board.
The referendum must be conducted one or two calendar years before the increased levy
authority, if approved, first becomes payable. Only one election to approve an increase
may be held in a calendar year. Unless the referendum is conducted by mail under
subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
first Monday in November. The ballot must state the maximum amount of the increased
revenue per deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil unit. The ballot may state a schedule,
determined by the board, of increased revenue per deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil
unit that differs from year to year over the number of years for which the increased revenue
is authorized or may state that the amount shall increase annually by the rate of inflation.
For this purpose, the rate of inflation shall be the annual inflationary increase calculated
under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
authority is expiring. In this case, the ballot may also compare the proposed levy authority
to the existing expiring levy authority, and express the proposed increase as the amount, if
any, over the expiring referendum levy authority. The ballot must designate the specific
number of years, not to exceed ten, for which the referendum authorization applies. The
ballot, including a ballot on the question to revoke or reduce the increased revenue amount
under paragraph (c), must abbreviate the term "per deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil
unit" as "per pupil." The notice required under section 275.60 may be modified to read, in
cases of renewing existing levies at the same amount per pupil as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
SCHEDULED TO EXPIRE."

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

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per deleted text begin resident marginal cost
deleted text end new text begin adjusted new text end pupil unit times the deleted text begin resident marginal cost deleted text end new text begin adjusted new text end pupil units for the school
year beginning in the year after the levy is certified shall be authorized for certification
for the number of years approved, if applicable, or until revoked or reduced by the voters
of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing levies,
the notice may include the following statement: "Passage of this referendum extends an
existing operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
revoke or reduce the revenue amount must state the amount per resident marginal cost
pupil unit by which the authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be available to the school district at
least once before it is subject to a referendum on its revocation or reduction for subsequent
years. Only one revocation or reduction referendum may be held to revoke or reduce
referendum revenue for any specific year and for years thereafter.

(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(e) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

Subd. 10.

School referendum levy; market value.

A school referendum levy must
be levied against the referendum market value of all taxable property as defined in section
126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this
subdivision must be certified separately to the county auditor under section 275.07.

Subd. 11.

Referendum date.

(a) Except for a referendum held under paragraph (b),
any referendum under this section held on a day other than the first Tuesday after the first
Monday in November must be conducted by mail in accordance with section 204B.46.
Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
must be prepared and delivered by first-class mail at least 20 days before the referendum.

(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
may grant authority to a district to hold a referendum on a different day if the district is in
statutory operating debt and has an approved plan or has received an extension from the
department to file a plan to eliminate the statutory operating debt.

(c) The commissioner must approve, deny, or modify each district's request for a
referendum levy on a different day within 60 days of receiving the request from a district.

Subd. 13.

Referendum conversion allowance.

A school district that received
supplemental or transition revenue in fiscal year 2002 may convert its supplemental
revenue conversion allowance and transition revenue conversion allowance to additional
referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
of the school board must approve the conversion at a public meeting before November 1,
2001. For a district with other referendum authority, the referendum conversion allowance
approved by the board continues until the portion of the district's other referendum
authority with the earliest expiration date after June 30, 2006, expires. For a district
with no other referendum authority, the referendum conversion allowance approved by
the board continues until June 30, 2012.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 50.

Minnesota Statutes 2012, section 126C.20, is amended to read:

126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the
amount necessary for general education aid under section 126C.13 deleted text begin , the early graduation
achievement scholarship program under section 120B.08, and the early graduation
military service award program under section 120B.09 deleted text end . This amount must be reduced by
the amount of any money specifically appropriated for the same purpose in any year
from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2014 and
later.
new text end

Sec. 51.

Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

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

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

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

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

(e) The total levy under this subdivision for a district for any year must not exceed
deleted text begin $150 deleted text end new text begin $162 new text end times the deleted text begin resident deleted text end new text begin adjusted new text end pupil units for the fiscal year to which the levy
is attributable.

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

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

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

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

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

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

(h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not
exceed deleted text begin $43 deleted text end new text begin $46 new text end times the adjusted deleted text begin marginal cost deleted text end pupil units of the member districts. This
authority is in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
2012 to 2023, a district that is a member of the "Technology and Information Education
Systems" data processing joint board, that finds it economically advantageous to enter into
a lease agreement to finance improvements to a building and land for a group of school
districts or special school districts for staff development purposes, may levy for its portion
of lease costs attributed to the district within the total levy limit in paragraph (e). The total
levy authority under this paragraph shall not exceed $632,000.

(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
purpose of leasing administrative space if the district can demonstrate to the satisfaction of
the commissioner that the lease cost for the administrative space is no greater than the
lease cost for instructional space that the district would otherwise lease. The commissioner
must deny this levy authority unless the district passes a resolution stating its intent to
lease instructional space under this section if the commissioner does not grant authority
under this paragraph. The resolution must also certify that the lease cost for administrative
space under this paragraph is no greater than the lease cost for the district's proposed
instructional lease.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 52.

Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:

Subd. 6.

Lease purchase; installment buys.

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

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

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

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

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

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

(1) deleted text begin a school district which is eligible for revenue under section 124D.86, subdivision
3, clause (1), (2), or (3), and whose deleted text end new text begin Special School District No. 1, Minneapolis,
Independent School District No. 625, St. Paul, Independent School District No. 709,
Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
new text end plan has been determined by the commissioner to be in compliance with Department of
Education rules relating to equality of educational opportunity and deleted text begin school desegregation
and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4)
or (5), deleted text end where the acquisition of property under this subdivision is determined by the
commissioner to contribute to the implementation of the desegregation plan; or

(2) deleted text begin a school district that participates in a joint program for interdistrict desegregation
with a district defined in clause (1) deleted text end new text begin other districts eligible for revenue under section
124D.862 new text end if the facility acquired under this subdivision is to be primarily used for deleted text begin the deleted text end new text begin a
new text end joint program new text begin for interdistrict desegregation new text end and the commissioner determines that the
joint programs are being undertaken to implement the districts' desegregation plan.

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

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

Sec. 53.

Minnesota Statutes 2012, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied for
all costs under this section shall be equal to deleted text begin $30 deleted text end new text begin $36 new text end multiplied by the district's adjusted
deleted text begin marginal cost deleted text end pupil units for the school year. The proceeds of the levy must be reserved
and used for directly funding the following purposes or for reimbursing the cities and
counties who contract with the district for the following purposes:

(1) to pay the costs incurred for the salaries, benefits, and transportation costs of
peace officers and sheriffs for liaison in services in the district's schools;

(2) to pay the costs for a drug abuse prevention program as defined in section
609.101, subdivision 3, paragraph (e), in the elementary schools;

(3) to pay the costs for a gang resistance education training curriculum in the
district's schools;

(4) to pay the costs for security in the district's schools and on school property;

(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
voluntary opt-in suicide prevention tools, and violence prevention measures taken by
the school district; deleted text begin or deleted text end

(6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems new text begin ;
new text end

new text begin (7) to pay for facility security enhancements including laminated glass, public
announcement systems, emergency communications devices, and equipment and facility
modifications related to violence prevention and facility security;
new text end

new text begin (8) to pay for costs associated with improving the school climate; or
new text end

new text begin (9) to pay costs for colocating and collaborating with mental health professionals
who are not district employees or contractors new text end .

new text begin (b) new text end For expenditures under new text begin paragraph (a), new text end clause (1), the district must initially
attempt to contract for services to be provided by peace officers or sheriffs with the
police department of each city or the sheriff's department of the county within the district
containing the school receiving the services. If a local police department or a county
sheriff's department does not wish to provide the necessary services, the district may
contract for these services with any other police or sheriff's department located entirely or
partially within the school district's boundaries.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 54.

Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

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

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

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

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

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

deleted text begin (e) For fiscal year 2007 and later, special education aid paid to a resident district must
be reduced by an amount equal to deleted text end new text begin (b) For purposes of this subdivision, the "unreimbursed
cost of providing special education and services" means the difference between: new text end (1) the
actual cost of providing special instruction and services, including special transportation
and unreimbursed building lease and debt service costs for facilities used primarily for
special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as
defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus
(2) if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum equalization aid attributable to that pupil for the portion of time the pupil
receives special instruction and services outside of the regular classroom, excluding
portions attributable to district and school administration, district support services,
operations and maintenance, capital expenditures, and pupil transportation, minus (3)
special education aid new text begin under section 125A.76 new text end attributable to that pupil, that is received by
the district providing special instruction and services. For purposes of this paragraph,
general education revenue and referendum equalization aid attributable to a pupil must be
calculated using the serving district's average general education revenue and referendum
equalization aid per adjusted pupil unit.

new text begin (c) For fiscal year 2015 and later, special education aid paid to a resident district
must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
special education and services.
new text end

new text begin (d) Notwithstanding paragraph (c), special education aid paid to a resident district
must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
education and services provided to students at an intermediate district, cooperative, or
charter school where the percent of students eligible for special education services is at
least 70 percent of the charter school's total enrollment.
new text end

new text begin (e) new text end Special education aid paid to the district or cooperative providing special
instruction and services for the pupil, or to the fiscal agent district for a cooperative,
must be increased by the amount of the reduction in the aid paid to the resident district
new text begin under paragraphs (c) and (d) new text end . If the resident district's special education aid is insufficient
to make the full adjustment, the remaining adjustment shall be made to other state aids
due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph deleted text begin (d) or deleted text end (e), the district of residence must pay tuition equal to at least 90 percent
of the district average general education revenue per pupil unit minus an amount equal
to the product of the formula allowance according to section 126C.10, subdivision 2,
times deleted text begin .0485 deleted text end new text begin .0466 new text end , calculated without compensatory revenue and transportation sparsity
revenue, times the number of pupil units for pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 55.

Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:

Subd. 8.

Charter schools.

(a) The general education aid for districts must be
adjusted for each pupil attending a charter school under section 124D.10. The adjustments
must be made according to this subdivision.

(b) General education aid paid to a district in which a charter school not providing
transportation according to section 124D.10, subdivision 16, is located must be increased
by an amount equal to the sum of deleted text begin :
deleted text end

(1) the product of: (i) the sum of an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times deleted text begin .0485 deleted text end new text begin .0466 new text end , plus the
transportation sparsity allowance for the district; times (ii) the adjusted deleted text begin marginal cost
deleted text end pupil units attributable to the pupil; plus

(2) the product of $223 and the extended time deleted text begin marginal cost deleted text end pupil units attributable
to the pupil.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 56.

Minnesota Statutes 2012, section 127A.51, is amended to read:

127A.51 STATEWIDE AVERAGE REVENUE.

By October 1 of each year the commissioner must estimate the statewide average
adjusted general revenue per adjusted deleted text begin marginal cost deleted text end pupil unit and the disparity in adjusted
general revenue among pupils and districts by computing the ratio of the 95th percentile
to the fifth percentile of adjusted general revenue. The commissioner must provide that
information to all districts.

If the disparity in adjusted general revenue as measured by the ratio of the 95th
percentile to the fifth percentile increases in any year, the commissioner shall recommend
to the legislature options for change in the general education formula that will limit the
disparity in adjusted general revenue to no more than the disparity for the previous
school year. The commissioner must submit the recommended options to the education
committees of the legislature by January 15.

For purposes of this section and section 126C.10, adjusted general revenue means deleted text begin :
deleted text end

deleted text begin (1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
2; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
equity revenue under section 126C.10, subdivisions 24a and 24b; and
deleted text end

deleted text begin (2) for fiscal year 2003 and later, deleted text end the sum of basic revenue under section 126C.10,
subdivision 2; referendum revenue under section 126C.17; and equity revenue under
section 126C.10, subdivisions 24a and 24b.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 57. new text begin SCHOOL DISTRICT LEVY ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rate adjustment. new text end

new text begin The commissioner of education must adjust
each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
2012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or
a similarly styled bill passed in a special session, to the statewide total tax capacity for
assessment year 2012.
new text end

new text begin Subd. 2. new text end

new text begin Equalizing factors. new text end

new text begin The commissioner of education must adjust each
school district equalizing factor established under Minnesota Statutes, chapters 120B to
127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
assessment year 2012 as it existed prior to the passage of Regular Session 2013 House
File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax
capacity for assessment year 2012.
new text end

Sec. 58. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin General education aid. new text end

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

	new text begin $ new text end	new text begin 6,051,766,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 6,370,640,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin The 2014 appropriation includes $781,842,000 for 2013 and $5,269,924,000 for
2014.
new text end

new text begin The 2015 appropriation includes $823,040,000 for 2014 and $5,547,600,000 for
2015.
new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

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

	new text begin $ new text end	new text begin 44,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 48,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

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

	new text begin $ new text end	new text begin 2,747,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 3,136,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin The 2014 appropriation includes $301,000 for 2013 and $2,446,000 for 2014.
new text end

new text begin The 2015 appropriation includes $385,000 for 2014 and $2,751,000 for 2015.
new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

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

	new text begin $ new text end	new text begin 472,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 480,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin The 2014 appropriation includes $40,000 for 2013 and $432,000 for 2014.
new text end

new text begin The 2015 appropriation includes $68,000 for 2014 and $412,000 for 2015.
new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

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

	new text begin $ new text end	new text begin 15,582,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 16,169,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 for 2014.
new text end

new text begin The 2015 appropriation includes $2,122,000 for 2014 and $14,047,000 for 2015.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

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

	new text begin $ new text end	new text begin 18,565,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 18,946,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 for 2014.
new text end

new text begin The 2015 appropriation includes $2,502,000 for 2014 and $16,444,000 for 2015.
new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

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

	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin Subd. 9. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50, as amended by Laws 2007, chapter 146, article 1, section 21:
new text end

	new text begin $ new text end	new text begin 7,325,000 new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 7,325,000 new text end	new text begin 2015 new text end

new text begin Of this amount, $4,730,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $240,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $660,000 in each year is for a grant to Independent
School District No. 279, Osseo; $500,000 in each year is for a grant to Independent School
District No. 281, Robbinsdale; $520,000 in each year is for a grant to Independent School
District No. 535, Rochester; $205,000 in each year is for a grant to Independent School
District No. 833, South Washington; and $470,000 in each year is for a grant to Independent
School District No. 241, Albert Lea. If a grant to a specific school district is not awarded,
the commissioner may increase the aid amounts to any of the remaining participating
school districts. The base budget for this program for fiscal year 2016 and later is
$2,325,000, and the grants must be distributed in the same proportion as in fiscal year 2013.
new text end

new text begin Subd. 10. new text end

new text begin Compensatory pilot project formula aid. new text end

new text begin For grants for compensatory
pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:
new text end

	new text begin $ new text end	new text begin 2,109,000 new text end	new text begin ..... new text end	new text begin 2014 new text end

new text begin The 2014 appropriation includes $2,109,000 for 2013 and $0 for 2014.
new text end

new text begin Subd. 11. new text end

new text begin Career and technical aid. new text end

new text begin For career and technical aid under Minnesota
Statutes, section 124D.4531, subdivision 1b:
new text end

	new text begin $ new text end	new text begin 4,320,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 5,680,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

new text begin The 2014 appropriation includes $0 for 2014 and $4,320,000 for 2015.
new text end

new text begin The 2015 appropriation includes $680,000 for 2014 and $5,000,000 for 2015.
new text end

Sec. 59. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, new text end new text begin are repealed for fiscal
year 2014 and later.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2012, sections 126C.10, subdivisions 31a, 31b, 31c, 34, 35,
and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and 5, new text end new text begin are repealed for
fiscal year 2015 and later.
new text end

ARTICLE 2

STUDENT ACCOUNTABILITY

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 or the arts.
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 To graduate from high school, students must
demonstrate to their enrolling school district or school their satisfactory completion of the
credit requirements under section 120B.024 and their understanding of academic standards
on a nationally normed college entrance exam. 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 grade 9 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 studies, including history, geography, economics, and government and
citizenship;

(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 new text begin career and college ready new text end 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 a deleted text end new text begin that
new 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 and transmit
the benchmarks in any other manner that new text begin informs and guides parents, teachers, school
districts, and other interested persons and new text end makes them accessible to the general public. new text begin The
commissioner must use benchmarks in developing career and college readiness assessments
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 deleted text begin review deleted text end new text begin ten-year new text end cycle deleted text begin for deleted text end new text begin to review and
revise new text end state academic standards and related benchmarks, consistent with this subdivision.
During each new text begin ten-year new text end review new text begin and revision new text end cycle, the commissioner also must examine the
alignment of each required academic standard and related benchmark with the knowledge
and skills students need for new text begin career and new text end 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 related 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 also deleted 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) deleted text begin 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. deleted text end 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; COURSE deleted 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 course deleted text end credits for graduation:

(1) four credits of language arts new 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 standard deleted text end new text begin standards in mathematics new 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 least deleted text begin : (i) deleted text end one credit deleted text begin in deleted text end new text begin of new text end biology deleted 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 studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics deleted text begin 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 in deleted text end new text begin of new text end the arts new 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 course deleted 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 course deleted text end new text begin or career and technical education credit new text end may
fulfill deleted text begin a deleted text end new text begin the elective new 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 or the
elective science credit required under subdivision 1, clause (4), if (1) the credit meets the
chemistry, physics, or biology academic standards or a combination of these academic
standards as approved by the district and (2) the student satisfies either all of the chemistry
academic standards, all of the physics academic standards, or all of the applicable elective
science standards prior to graduation. An agriculture science or career and technical
education credit may not fulfill the required biology credit under subdivision 1, clause (4).
new text end

(c) A career and technical education deleted text begin course deleted text end new text begin credit new 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 1 new 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 (d) An agriculture education teacher is not required to meet the requirements of
Minnesota Rules, part 3505.1150, subpart 1, item B, to meet the credit equivalency
requirements of paragraph (b) above.
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.11, is amended to read:

120B.11 SCHOOL DISTRICT PROCESS FOR REVIEWING CURRICULUM,
INSTRUCTION, AND STUDENT ACHIEVEMENT new text begin ; STRIVING FOR THE
WORLD'S BEST WORKFORCE new text end .

Subdivision 1.

Definitions.

For the purposes of this section and section 120B.10,
the following terms have the meanings given them.

(a) "Instruction" means methods of providing learning experiences that enable a
student to meet state and district academic standards and graduation requirements.

(b) "Curriculum" means district or school adopted programs and written plans for
providing students with learning experiences that lead to expected knowledge and skills
new text begin and career and college readiness new text end .

new text begin (c) "World's best workforce" means striving to: meet school readiness goals; have
all third grade students achieve grade-level literacy; close the academic achievement gap
among all racial and ethnic groups of students and between students living in poverty and
students not living in poverty; have all students attain career and college readiness before
graduating from high school; and have all students graduate from high school.
new text end

new text begin Subd. 1a. new text end

new text begin Performance measures. new text end

new text begin Measures to determine school district and
school site progress in striving to create the world's best workforce must include at least:
new text end

new text begin (1) student performance on the National Association of Education Progress;
new text end

new text begin (2) the size of the academic achievement gap by student subgroup;
new text end

new text begin (3) student performance on the Minnesota Comprehensive Assessments;
new text end

new text begin (4) high school graduation rates; and
new text end

new text begin (5) career and college readiness under section 120B.30, subdivision 1.
new text end

Subd. 2.

Adopting deleted text begin policies deleted text end new text begin plans and budgets new text end .

A school board new text begin , at a public
meeting, new text end shall deleted text begin have in place an adopted written policy deleted text end new text begin adopt a comprehensive, long-term
strategic plan to support and improve teaching and learning new text end that deleted text begin includes the following deleted text end new text begin is
aligned with creating the world's best workforce and includes new text end :

(1) new text begin clearly defined new text end district new text begin and school site new text end goals new text begin and benchmarks new text end for instruction
deleted text begin including the use of best practices, district and school curriculum, deleted text end and new text begin student new text end achievement
for all student subgroups new text begin identified in section 120B.35, subdivision 3, paragraph (b),
clause (2) new text end ;

(2) a process for new text begin assessing and new text end evaluating each student's progress toward meeting new text begin state
and local new text end academic standards and identifying the strengths and weaknesses of instruction
new text begin in pursuit of student and school success new text end and curriculum affecting students' progress new text begin and
growth toward career and college readiness and leading to the world's best workforce new text end ;

(3) a system deleted text begin for periodically reviewing and evaluating deleted text end new text begin to periodically review and
evaluate the effectiveness of new text end all instruction and curriculum new text begin , taking into account strategies
and best practices, student outcomes, school principal evaluations under section 123B.147,
subdivision 3, and teacher evaluations under section 122A.40, subdivision 8, or 122A.41,
subdivision 5 new text end ;

(4) deleted text begin a plan deleted text end new text begin strategies new text end for improving instruction, curriculum, and student achievement;
deleted text begin and
deleted text end

(5) deleted text begin an deleted text end education effectiveness deleted text begin plan aligned with section 122A.625 deleted text end new text begin practices new text end that
deleted text begin integrates deleted text end new text begin integrate high-quality new text end instruction, new text begin rigorous new text end curriculum, deleted text begin and deleted text end technology new text begin , and a
collaborative professional culture that develops and supports teacher quality, performance,
and effectiveness; and
new text end

new text begin (6) an annual budget for continuing to implement the district plan new text end .

Subd. 3.

District advisory committee.

Each school board shall establish an
advisory committee to ensure active community participation in all phases of planning and
improving the instruction and curriculum affecting state and district academic standards new text begin ,
consistent with subdivision 2 new text end . A district advisory committee, to the extent possible, shall
reflect the diversity of the district and its deleted text begin learning deleted text end new text begin school new text end sites, and shall include teachers,
parents, support staff, students, and other community residents. The district may establish
deleted text begin building deleted text end new text begin site new text end teams as subcommittees of the district advisory committee under subdivision
4. The district advisory committee shall recommend to the school board rigorous academic
standards, student achievement goals and measures new text begin consistent with subdivision 1a and
sections 120B.022, subdivision 1, paragraphs (b) and (c), and 120B.35 new text end , new text begin district new text end assessments,
and program evaluations. deleted text begin Learning deleted text end new text begin School new text end sites may expand upon district evaluations of
instruction, curriculum, assessments, or programs. Whenever possible, parents and other
community residents shall comprise at least two-thirds of advisory committee members.

Subd. 4.

deleted text begin Building deleted text end new text begin Site new text end team.

A school may establish a deleted text begin building deleted text end new text begin site new text end team to
develop and implement deleted text begin an deleted text end new text begin strategies and new text end education effectiveness deleted text begin plan deleted text end new text begin practices new text end to improve
instruction, curriculum, and student achievement new text begin at the school site, consistent with
subdivision 2 new text end . The team deleted text begin shall advise deleted text end new text begin advises new text end the board and the advisory committee about
developing new text begin the annual budget and revising new text end an instruction and curriculum improvement
plan that aligns curriculum, assessment of student progress new text begin and growth new text end in meeting state
and district academic standards deleted text begin , deleted text end and instruction.

Subd. 5.

Report.

deleted text begin (a) By October 1 of each year, the school board shall use standard
statewide reporting procedures the commissioner develops and adopt a report that includes
the following:
deleted text end

deleted text begin (1) student achievement goals for meeting state academic standards;
deleted text end

deleted text begin (2) results of local assessment data, and any additional test data;
deleted text end

deleted text begin (3) the annual school district improvement plans including staff development goals
under section 122A.60;
deleted text end

deleted text begin (4) information about district and learning site progress in realizing previously
adopted improvement plans; and
deleted text end

deleted text begin (5) the amount and type of revenue attributed to each education site as defined
in section 123B.04.
deleted text end

deleted text begin (b) deleted text end new text begin Consistent with requirements for school performance reports under section
120B.36, subdivision 1, new text end the school board shall publish a deleted text begin summary of the deleted text end report in the local
newspaper with the largest circulation in the district, by mail, or by electronic means
deleted text begin such as deleted text end new text begin on new text end the district Web site new text begin . The school board shall hold an annual public meeting
to review, and revise where appropriate, student achievement goals, local assessment
outcomes, plans, strategies, and practices for improving curriculum and instruction, and to
review district success in realizing the previously adopted student achievement goals and
related benchmarks and the improvement plans leading to the world's best workforce new text end . deleted text begin If
electronic means are used, school districts must publish notice of the report in a periodical
of general circulation in the district. School districts must make copies of the report
available to the public on request.
deleted text end

deleted text begin (c) The title of the report shall contain the name and number of the school district and
read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
must include at least the following information about advisory committee membership:
deleted text end

deleted text begin (1) the name of each committee member and the date when that member's term
expires;
deleted text end

deleted text begin (2) the method and criteria the school board uses to select committee members; and
deleted text end

deleted text begin (3) the date by which a community resident must apply to next serve on the
committee. deleted text end new text begin The school board must transmit an electronic summary of its report to the
commissioner in the form and manner the commissioner determines.
new text end

deleted text begin Subd. 6. deleted text end

deleted text begin Student evaluation. deleted text end

deleted text begin The school board annually shall provide high school
graduates or GED recipients who receive a diploma or its equivalent from the school
district with an opportunity to report to the board on the following:
deleted text end

deleted text begin (1) the quality of district instruction, curriculum, and services;
deleted text end

deleted text begin (2) the quality of district delivery of instruction, curriculum, and services;
deleted text end

deleted text begin (3) the utility of district facilities; and
deleted text end

deleted text begin (4) the effectiveness of district administration.
deleted text end

Subd. 7.

Periodic report.

Each school district shall periodically deleted text begin ask deleted text end new text begin survey new text end affected
constituencies about their new text begin connection to and new text end level of satisfaction with school. The
district shall include the results of this evaluation in the new text begin summary new text end report required under
subdivision 5.

deleted text begin Subd. 8. deleted text end

deleted text begin Biennial evaluation; assessment program. deleted text end

deleted text begin At least once every two years,
the district report shall include an evaluation of the district testing programs, according to
the following:
deleted text end

deleted text begin (1) written objectives of the assessment program;
deleted text end

deleted text begin (2) names of tests and grade levels tested;
deleted text end

deleted text begin (3) use of test results; and
deleted text end

deleted text begin (4) student achievement results compared to previous years.
deleted text end

new text begin Subd. 9. new text end

new text begin Annual evaluation. new text end

new text begin (a) The commissioner must identify effective
strategies, practices, and use of resources by districts and school sites in striving for the
world's best workforce. The commissioner must assist districts and sites throughout the
state in implementing these effective strategies, practices, and use of resources.
new text end

new text begin (b) The commissioner must identify those districts in any consecutive three-year
period not making sufficient progress toward improving teaching and learning and
striving for the world's best workforce. The commissioner, in collaboration with the
identified district, may require the district to use up to two percent of its basic general
education revenue per fiscal year during the proximate three school years to implement
commissioner-specified strategies and practices, consistent with paragraph (a), to improve
and accelerate its progress in realizing its goals under this section. In implementing this
section, the commissioner must consider districts' budget constraints and legal obligations.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013-2014 school year and
later.
new text end

Sec. 7.

new text begin [120B.115] REGIONAL CENTERS OF EXCELLENCE.
new text end

new text begin (a) Regional centers of excellence are established to assist and support school
boards, school districts, school sites, and charter schools in implementing research-based
interventions and practices to increase the students' achievement within a region.
The centers must develop partnerships with local and regional service cooperatives,
postsecondary institutions, integrated school districts, the department, children's mental
health providers, or other local or regional entities interested in providing a cohesive
and consistent regional delivery system that serves all schools equitably. Centers must
assist school districts, school sites, and charter schools in developing similar partnerships.
Center support may include assisting school districts, school sites, and charter schools
with common principles of effective practice, including:
new text end

new text begin (1) defining measurable education goals under section 120B.11, subdivision 2;
new text end

new text begin (2) implementing evidence-based practices;
new text end

new text begin (3) engaging in data-driven decision-making;
new text end

new text begin (4) providing multi-layered levels of support;
new text end

new text begin (5) supporting culturally responsive teaching and learning aligning state and local
academic standards and career and college readiness benchmarks; and
new text end

new text begin (6) engaging parents, families, youth, and local community members in programs
and activities at the school district, school site, or charter school.
new text end

new text begin Centers must work with school site leadership teams to build capacity to implement
programs that close the achievement gap, increase students' progress and growth toward
career and college readiness, and increase student graduation rates.
new text end

new text begin (b) The department must assist the regional centers of excellence to meet staff,
facilities, and technical needs, provide the centers with programmatic support, and work
with the centers to establish a coherent statewide system of regional support, including
consulting, training, and technical support, to help school boards, school districts, school
sites, and charter schools effectively and efficiently implement the world's best workforce
goals under section 120B.11 and other state and federal education initiatives.
new text end

Sec. 8.

Minnesota Statutes 2012, section 120B.125, is amended to read:

120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION
TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY
CAREER TRACKING PROHIBITED.

(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14,
120B.15, new text begin 120B.30, subdivision 1, paragraph (c), new text end 125A.08, and other related sections,
school districts deleted text begin are strongly encouraged to deleted text end new text begin , beginning in the 2013-2014 school year, must
new text end assist all students by no later than grade 9 to explore their college and career interests and
aspirations and develop a plan for a smooth and successful transition to postsecondary
education or employment. All students' plans must be designed to:

(1) provide a comprehensive academic plan for completing a college and
career-ready curriculum premised on meeting state and local academic standards and
developing 21st century skills such as team work, collaboration, and good work habits;

(2) emphasize academic rigor and high expectations;

(3) help students identify personal learning styles that may affect their postsecondary
education and employment choices;

(4) help students deleted text begin succeed at gaining deleted text end new text begin gain new text end access to postsecondary education and
career options;

(5) integrate strong academic content into career-focused courses and integrate
relevant career-focused courses into strong academic content;

(6) help students and families identify and gain access to appropriate counseling
and other supports and assistance that enable students to complete required coursework,
prepare for postsecondary education and careers, and obtain information about
postsecondary education costs and eligibility for financial aid and scholarship;

(7) help students and families identify collaborative partnerships of kindergarten
through grade 12 schools, postsecondary institutions, economic development agencies, and
employers that support students' transition to postsecondary education and employment
and provide students with experiential learning opportunities; and

(8) be reviewed and revised at least annually by the student, the student's parent or
guardian, and the school or district to ensure that the student's course-taking schedule
keeps the student deleted text begin "on track" deleted text end new text begin making adequate progress new text end to meet state and local high school
graduation requirements and with a reasonable chance to succeed with employment or
postsecondary education without the need to first complete remedial course work.

(b) A school district may develop grade-level curricula or provide instruction that
introduces students to various careers, but must not require any curriculum, instruction,
or employment-related activity that obligates an elementary or secondary student to
involuntarily select a career, career interest, employment goals, or related job training.

deleted text begin (c) School districts are encouraged to seek and use revenue and in-kind contributions
from nonstate sources and to seek administrative cost savings through innovative local
funding arrangements, such as the Collaboration Among Rochester Educators (CARE)
model for funding postsecondary enrollment options, among other sources, for purposes
of implementing this section.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2012, section 120B.128, is amended to read:

120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM
(EPAS) PROGRAM.

(a) School districts and charter schools may elect to participate in the Educational
Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a
longitudinal, systematic approach to student educational and career planning, assessment,
instructional support, and evaluation. The EPAS achievement tests include English,
reading, mathematics, science, and components on planning for high school and
postsecondary education, interest inventory, needs assessments, and student education
plans. These tests are linked to the ACT assessment for college admission and allow
students, parents, teachers, and schools to determine the student's college readiness before
grades 11 and 12.

(b) The commissioner of education shall provide ACT Explore tests for students
in grade 8 and the ACT Plan test for students in grade 10 to assess individual student
academic strengths and weaknesses, academic achievement and progress, higher order
thinking skills, and college readiness.

new text begin (c) Students enrolled in grade 8 through the 2011-2012 school year who have
not yet demonstrated proficiency on the Minnesota comprehensive assessments, the
graduation-required assessments for diploma, or the basic skills testing requirements
prior to high school graduation may satisfy state high school graduation requirements
for assessments in reading, mathematics, and writing by taking the graduation-required
assessment for diploma in reading, mathematics, or writing under Minnesota Statutes
2012, section 120B.30, subdivision 1, paragraph (c), clauses (1) and (2), the WorkKeys
job skills assessment, the Compass college placement test, a nationally recognized armed
services vocation aptitude test, or the ACT assessment for college admission.
new text end

new text begin (d) new text end The state shall pay the test costs for deleted text begin school districts and charter schools that
choose to participate in the EPAS program deleted text end new text begin public school students to participate in the
assessments under this section new text end . The commissioner shall establish an application procedure
and a process for state payment of costs.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

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 programs new text begin addressing
instructional and affective needs new text end , provide staff development, and evaluate programs to
provide gifted and talented students with challenging new text begin and appropriate new text end educational programs.

(b) School districts deleted text begin may deleted text end new text begin must new 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 consistent with section 124D.02,
subdivision 1, for early admission to kindergarten or first grade of gifted and talented
learners. The procedures must be sensitive to underrepresented groups.
new text end

Sec. 11.

new text begin [120B.21] MENTAL HEALTH EDUCATION.
new text end

new text begin School districts and charter schools are encouraged to provide mental health
instruction for students in grades 6 through 12 aligned with local health standards and
integrated into existing programs, curriculum, or the general school environment of a
district or charter school. The commissioner, in consultation with the commissioner of
human services and mental health organizations, is encouraged to provide districts and
charter schools with:
new text end

new text begin (1) age-appropriate model learning activities for grades 6 through 12 that encompass
the mental health components of the National Health Education Standards and the
benchmarks developed by the department's quality teaching network in health and best
practices in mental health education; and
new text end

new text begin (2) a directory of resources for planning and implementing age-appropriate mental
health curriculum and instruction in grades 6 through 12.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

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 deleted text begin from and deleted text end new text begin as computer-adaptive
reading and mathematics assessments for students that are new text end aligned with the state's required
academic standards under section 120B.021, include multiple choice questions, and deleted text begin be deleted text end new text begin are
new text end administered annually to all students in grades 3 through deleted text begin 8 deleted text end new text begin 7 new text end . new text begin Reading and mathematics
assessments for all students in grade 8 must be aligned with the state's required reading and
mathematics standards, be administered annually, and include multiple choice questions.
new text end 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. deleted text begin For students enrolled in grade 8 before the 2005-2006 school year, Minnesota basic
skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing
requirements for a passing state notation. The passing scores of basic skills tests in reading
and mathematics are the equivalent of 75 percent correct for students entering grade 9
based on the first uniform test administered in February 1998. Students who have not
successfully passed a Minnesota basic skills test by the end of the 2011-2012 school year
must pass the graduation-required assessments for diploma under paragraph (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). deleted text end

new text begin (1) Students enrolled in grade 8 through the 2009-2010 school year are eligible
to be assessed under (i) the graduation-required assessment for diploma in reading,
mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1,
paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii)
the Compass college placement test, (iv) the ACT assessment for college admission, or (v)
a nationally recognized armed services vocational aptitude test.
new text end

new text begin (2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are
eligible to be assessed under (i) the graduation-required assessment for diploma in reading,
mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision
1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the
Compass college placement test, (iv) the ACT assessment for college admission, or (v) a
nationally recognized armed services vocational aptitude test.
new text end

new text begin (3) For students under clause (1) or (2), a school district may substitute a score from
an alternative, equivalent assessment to satisfy the requirements of this paragraph.
new text end

(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 deleted text begin 2005-2006 deleted text end new text begin 2012-2013 new text end school year and
later, deleted text begin only the following options shall fulfill deleted text end students' state graduation deleted text begin test deleted text end requirements new text begin ,
based on a longitudinal, systematic approach to student education and career planning,
assessment, instructional support, and evaluation, include the following new text end :

deleted text begin (1) for reading and mathematics:
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (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
deleted text end

deleted text begin (2) for writing:
deleted text end

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

deleted text begin (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;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (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.
deleted text end

new text begin (1) demonstrate understanding of required academic standards on a nationally
normed college entrance exam;
new text end

new text begin (2) achievement and career and college readiness tests in mathematics, reading, and
writing, consistent with paragraph (e) and to the extent available, to monitor students'
continuous development of and growth in requisite knowledge and skills; analyze
students' progress and performance levels, identifying students' academic strengths and
diagnosing areas where students require curriculum or instructional adjustments, targeted
interventions, or remediation; and, based on analysis of students' progress and performance
data, determine students' learning and instructional needs and the instructional tools and
best practices that support academic rigor for the student; and
new text end

new text begin (3) consistent with this paragraph and section 120B.125, age-appropriate exploration
and planning activities and career assessments to encourage students to identify personally
relevant career interests and aptitudes and help students and their families develop a
regularly reexamined transition plan for postsecondary education or employment without
need for postsecondary remediation.
new text end

new text begin Based on appropriate state guidelines, students with an individualized education program
may satisfy state graduation requirements by achieving an individual score on the
state-identified alternative assessments.
new text end

new text begin Expectations of schools, districts, and the state for career or college readiness under
this subdivision must be comparable in rigor, clarity of purpose, and rates of student
completion. A student under clause (2) must receive targeted, relevant, academically
rigorous, and resourced instruction, which may include a targeted instruction and
intervention plan focused on improving the student's knowledge and skills in core subjects
so that the student has a reasonable chance to succeed in a career or college without need
for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091,
124D.49, and related sections, an enrolling school or district must actively encourage a
student in grade 11 or 12 who is identified as academically ready for a career or college
to participate in courses and programs awarding college credit to high school students.
Students are not required to achieve a specified score or level of proficiency on an
assessment under this subdivision to graduate from high school.
new text end

(d) deleted text begin 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:
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (2) participate in district-prescribed academic remediation in mathematics; and
deleted text end

deleted text begin (3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. deleted text end new text begin To improve the secondary
and postsecondary outcomes of all students, the alignment between secondary and
postsecondary education programs and Minnesota's workforce needs, and the efficiency
and cost-effectiveness of secondary and postsecondary programs, the commissioner, after
consulting with the chancellor of the Minnesota State Colleges and Universities and using
a request for proposal process, shall contract for a series of assessments that are consistent
with this subdivision, aligned with state academic standards, and include career and college
readiness benchmarks. Mathematics, reading, and writing assessments for students in
grades 8 and 10 must be predictive of a nationally normed assessment for career and college
readiness. This nationally recognized assessment must be a college entrance exam and
given to students in grade 11. This series of assessments must include a college placement
diagnostic exam and contain career exploration elements. The commissioner and the
chancellor of the Minnesota State Colleges and Universities must collaborate in aligning
instruction and assessments for adult basic education students to provide the students with
diagnostic information about any targeted interventions they need so that they may seek
postsecondary education or employment without need for postsecondary remediation.
new text end

new text begin (1) Districts and schools, on an annual basis, must use the career exploration
elements in these assessments to help students, beginning no later than grade 9, and their
families explore and plan for postsecondary education or careers based on the students'
interests, aptitudes, and aspirations. Districts and schools must use timely regional labor
market information and partnerships, among other resources, to help students and their
families successfully develop, pursue, review, and revise an individualized plan for
postsecondary education or a career. This process must help increase students' engagement
in and connection to school, improve students' knowledge and skills, and deepen students'
understanding of career pathways as a sequence of academic and career courses that lead
to an industry-recognized credential, an associate's degree, or a bachelor's degree and are
available to all students, whatever their interests and career goals.
new text end

new text begin (2) Students in grade 10 or 11 not yet academically ready for a career or college based
on their growth in academic achievement between grades 8 and 10 must take the college
placement diagnostic exam before taking the college entrance exam under clause (3).
Students, their families, the school, and the district can then use the results of the college
placement diagnostic exam for targeted instruction, intervention, or remediation and
improve students' knowledge and skills in core subjects sufficient for a student to graduate
and have a reasonable chance to succeed in a career or college without remediation.
new text end

new text begin (3) All students except those eligible for alternative assessments must be given the
college entrance part of these assessments in grade 11. A student under this clause who
demonstrates attainment of required state academic standards, which include career and
college readiness benchmarks, on these assessments is academically ready for a career or
college and is encouraged to participate in courses awarding college credit to high school
students. Such courses and programs may include sequential courses of study within
broad career areas and technical skill assessments that extend beyond course grades.
new text end

new text begin (4) As appropriate, students through grade 12 must continue to participate in targeted
instruction, intervention, or remediation and be encouraged to participate in courses
awarding college credit to high school students.
new text end

new text begin (5) A study to determine the alignment between these assessments and state
academic standards under this chapter must be conducted. Where alignment exists, the
commissioner must seek federal approval to, and immediately upon receiving approval,
replace the federally required assessments referenced under subdivision 1a and section
120B.35, subdivision 2, with assessments under this paragraph.
new text end

new text begin (e) In developing, supporting, and improving students' academic readiness for a
career or college, schools, districts, and the state must have a continuum of empirically
derived, clearly defined benchmarks focused on students' attainment of knowledge and
skills so that students, their parents, and teachers know how well students must perform to
have a reasonable chance to succeed in a career or college without need for postsecondary
remediation. The commissioner, in consultation with local school officials and educators,
and Minnesota's public postsecondary institutions must ensure that the foundational
knowledge and skills for students' successful performance in postsecondary employment
or education and an articulated series of possible targeted interventions are clearly
identified and satisfy Minnesota's postsecondary admissions requirements.
new text end

new text begin (f) For students in grade 8 in the 2012-2013 school year and later, new text end a school, district,
or charter school must deleted text begin place deleted text end new text begin record new text end on the high school transcript a student's deleted text begin current pass
status for each subject that has a required graduation assessment deleted text end new text begin progress toward career
and college readiness, and for other students as soon as practicable new text end .

deleted text begin In addition, deleted text end new text begin (g) new text end The school board granting deleted text begin the deleted text end 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.

deleted text begin (e) deleted text end new text begin (h) new text end The 3rd through deleted text begin 8th deleted text end new text begin 7th new text end grade new text begin computer-adaptive assessment results and grade
8 new text end 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. new text begin The commissioner must establish empirically derived benchmarks on
adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and
college readiness. new text end The commissioner must disseminate to the public the new text begin computer-adaptive
assessments, grade 8, and new text end high school test results upon receiving those results.

deleted text begin (f) deleted text end new text begin (i) new text end The deleted text begin 3rd through 8th grade deleted text end new text begin grades 3 through 7 computer-adaptive assessments
and grade 8 new text end 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.

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

(1) uniform statewide deleted text begin testing deleted text end new text begin computer-adaptive assessments new text end of all students in
grades 3 through deleted text begin 8 deleted text end new text begin 7 new text end and new text begin testing new text end at the new text begin grade 8 and new text end high school deleted text begin level deleted text end new text begin levels new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2013-2014 school year and later, except that paragraph (a) applies
the day following final enactment and the requirements for using computer-adaptive
mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016
school year and later. The series of assessments contracted for under paragraph (d) apply
in the 2014-2015 school year and later.
new text end

Sec. 13.

Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:

Subd. 1a.

Statewide and local assessments; results.

(a) new text begin For purposes of this
section, the following definitions have the meanings given them.
new text end

new text begin (1) "Computer-adaptive assessments" means fully adaptive assessments.
new text end

new text begin (2) "Fully adaptive assessments" include test items that are on-grade level and items
that may be above or below a student's grade level.
new text end

new text begin (3) "On-grade level" test items contain subject area content that is aligned to state
academic standards for the grade level of the student taking the assessment.
new text end

new text begin (4) "Above-grade level" test items contain subject area content that is above the
grade level of the student taking the assessment and is considered aligned with state
academic standards to the extent it is aligned with content represented in state academic
standards above the grade level of the student taking the assessment. Notwithstanding
the student's grade level, administering above-grade level test items to a student does not
violate the requirement that state assessments must be aligned with state standards.
new text end

new text begin (5) "Below-grade level" test items contain subject area content that is below the
grade level of the student taking the test and is considered aligned with state academic
standards to the extent it is aligned with content represented in state academic standards
below the student's current grade level. Notwithstanding the student's grade level,
administering below-grade level test items to a student does not violate the requirement
that state assessments must be aligned with state standards.
new text end

new text begin (b) The commissioner must use fully adaptive mathematics and reading assessments
for grades 3 through 7 beginning in the 2015-2016 school year and later.
new text end

new text begin (c) new text end For purposes of conforming with existing federal educational accountability
requirements, the commissioner must develop new text begin and implement computer-adaptive new text end reading
and mathematics assessments for grades 3 through deleted text begin 8 deleted text end new text begin 7 new text end , state-developed new text begin grade 8 and
new text end high school reading and mathematics tests aligned with state academic standards, and
science assessments under clause (2) that districts and sites must use to monitor student
growth toward achieving those standards. The commissioner must not develop statewide
assessments for academic standards in social studies, health and physical education, and
the arts. The commissioner must require:

(1) annual new text begin computer-adaptive new text end reading and mathematics assessments in grades 3
through deleted text begin 8 deleted text end new text begin 7 new text end , and new text begin grade 8 and new text end high school reading and mathematics tests; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span,
and the commissioner must not require students to achieve a passing score on high school
science assessments as a condition of receiving a high school diploma.

new text begin (d) The commissioner must ensure that for annual computer-adaptive assessments:
new text end

new text begin (1) individual student performance data and achievement reports are available
within three school days of when students take an assessment except in a year when an
assessment reflects new performance standards;
new text end

new text begin (2) growth information is available for each student from the student's first
assessment to each proximate assessment using a constant measurement scale;
new text end

new text begin (3) parents, teachers, and school administrators are able to use elementary and
middle school student performance data to project students' secondary and postsecondary
achievement; and
new text end

new text begin (4) useful diagnostic information about areas of students' academic strengths and
weaknesses is available to teachers and school administrators for improving student
instruction and indicating the specific skills and concepts that should be introduced and
developed for students at given performance levels, organized by strands within subject
areas, and aligned to state academic standards.
new text end

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

deleted text begin (c) deleted text end new text begin (f) new text end Reporting of new text begin state new text end assessment results must:

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

(2) include a deleted text begin value-added deleted text end growth indicator of student achievement deleted text begin under section
deleted text end deleted text begin 120B.35, subdivision 3 deleted text end deleted text begin , paragraph (b) deleted text end ; and

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013-2014 school year and
later except the requirements for using computer-adaptive mathematics and reading
assessments for grades 3 through 7 apply in the 2015-2016 school year and later. Results
related to career and college readiness benchmarks apply in the 2014-2015 school year
and later.
new text end

Sec. 14.

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. 15.

Minnesota Statutes 2012, section 120B.35, subdivision 3, is amended to read:

Subd. 3.

State growth target; other state measures.

(a) The state's educational
assessment system measuring individual students' educational growth is based on
indicators of achievement growth that show an individual student's prior achievement.
Indicators of achievement and prior achievement must be based on highly reliable
statewide or districtwide assessments.

(b) The commissioner, in consultation with a stakeholder group that includes
assessment and evaluation directors and staff and researchers must implement a model
that uses a value-added growth indicator and includes criteria for identifying schools
and school districts that demonstrate medium and high growth under section 120B.299,
subdivisions 8 and 9, and may recommend other value-added measures under section
120B.299, subdivision 3. The model may be used to advance educators' professional
development and replicate programs that succeed in meeting students' diverse learning
needs. Data on individual teachers generated under the model are personnel data under
section 13.43. The model must allow users to:

(1) report student growth consistent with this paragraph; and

(2) for all student categories, report and compare aggregated and disaggregated state
growth data using the nine student categories identified under the federal 2001 No Child
Left Behind Act and two student gender categories of male and female, respectively,
following appropriate reporting practices to protect nonpublic student data.

The commissioner must report deleted text begin separate deleted text end measures of student growth deleted text begin and proficiency deleted text end ,
consistent with this paragraph.

(c) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2011, must report two core measures indicating
the extent to which current high school graduates are being prepared for postsecondary
academic and career opportunities:

(1) a preparation measure indicating the number and percentage of high school
graduates in the most recent school year who completed course work important to
preparing them for postsecondary academic and career opportunities, consistent with
the core academic subjects required for admission to Minnesota's public colleges and
universities as determined by the Office of Higher Education under chapter 136A; and

(2) a rigorous coursework measure indicating the number and percentage of high
school graduates in the most recent school year who successfully completed one or more
college-level advanced placement, international baccalaureate, postsecondary enrollment
options including concurrent enrollment, other rigorous courses of study under section
120B.021, subdivision 1a, or industry certification courses or programs.

When reporting the core measures under clauses (1) and (2), the commissioner must also
analyze and report separate categories of information using the nine student categories
identified under the federal 2001 No Child Left Behind Act and two student gender
categories of male and female, respectively, following appropriate reporting practices to
protect nonpublic student data.

(d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2014, must report summary data on school
safety and students' engagement and connection at school. The summary data under this
paragraph are separate from and must not be used for any purpose related to measuring
or evaluating the performance of classroom teachers. The commissioner, in consultation
with qualified experts on student engagement and connection and classroom teachers,
must identify highly reliable variables that generate summary data under this paragraph.
The summary data may be used at school, district, and state levels only. Any data on
individuals received, collected, or created that are used to generate the summary data
under this paragraph are nonpublic data under section 13.02, subdivision 9.

new text begin (e) For purposes of statewide educational accountability, the commissioner must
identify and report measures that demonstrate the success of learning year program
providers under sections 123A.05 and 124D.68, among other such providers, in improving
students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually
report summary data on:
new text end

new text begin (1) the four- and six-year graduation rates of students under this paragraph;
new text end

new text begin (2) the percent of students under this paragraph whose progress and performance
levels are meeting career and college readiness benchmarks under section 120B.30,
subdivision 1; and
new text end

new text begin (3) the success that learning year program providers experience in:
new text end

new text begin (i) identifying at-risk and off-track student populations by grade;
new text end

new text begin (ii) providing successful prevention and intervention strategies for at-risk students;
new text end

new text begin (iii) providing successful recuperative and recovery or reenrollment strategies for
off-track students; and
new text end

new text begin (iv) improving the graduation outcomes of at-risk and off-track students.
new text end

new text begin The commissioner may include in the annual report summary data on other education
providers serving a majority of students eligible to participate in a learning year program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (e) applies to data that are collected in the
2014-2015 school year and later and reported annually beginning July 1, 2015.
new text end

Sec. 16.

Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:

Subdivision 1.

School performance deleted text begin report cards deleted text end new text begin reports new text end .

(a) The commissioner
shall report student academic performance under section 120B.35, subdivision 2; the
percentages of students showing low, medium, and high growth under section 120B.35,
subdivision 3, paragraph (b); school safety and student engagement and connection
under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
120B.35, subdivision 3, paragraph (c); new text begin the percentage of students under section 120B.35,
subdivision 3, paragraph (b), clause (2), whose progress and performance levels are
meeting career and college readiness benchmarks under sections 120B.30, subdivision
1, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress of
eligible districts in reducing disparities in students' academic achievement and racial and
economic integration under section 124D.861; new text end two separate student-to-teacher ratios that
clearly indicate the definition of teacher consistent with sections 122A.06 and 122A.15
for purposes of determining these ratios; staff characteristics excluding salaries; student
enrollment demographics; district mobility; and extracurricular activities. The report also
must indicate a school's adequate yearly progress status new text begin under applicable federal law new text end ,
and must not set any designations applicable to high- and low-performing schools due
solely to adequate yearly progress status.

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance deleted text begin report cards deleted text end new text begin reports new text end .

(c) The commissioner must make available performance deleted text begin report cards deleted text end new text begin reports new text end by the
beginning of each school year.

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance deleted text begin report card deleted text end data are nonpublic data under section 13.02,
subdivision 9, until the commissioner publicly releases the data. The commissioner shall
annually post school performance deleted text begin report cards deleted text end new text begin reports new text end to the department's public Web
site no later than September 1, except that in years when the deleted text begin report card reflects deleted text end new text begin reports
reflect new text end new performance standards, the commissioner shall post the school performance
deleted text begin report cards deleted text end new text begin reports new text end no later than October 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
new text end

Sec. 17.

Minnesota Statutes 2012, section 124D.52, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Standard high school diploma for adults. new text end

new text begin (a) The commissioner shall
adopt rules for providing a standard adult high school diploma to persons who:
new text end

new text begin (1) are not eligible for kindergarten through grade 12 services;
new text end

new text begin (2) do not have a high school diploma; and
new text end

new text begin (3) successfully complete an adult basic education program of instruction approved
by the commissioner of education necessary to earn an adult high school diploma.
new text end

new text begin (b) Persons participating in an approved adult basic education program of instruction
must demonstrate the competencies, knowledge, and skills sufficient to ensure that
postsecondary programs and institutions and potential employers regard persons with a
standard high school diploma and persons with a standard adult high school diploma as
equally well prepared and qualified graduates. Approved adult basic education programs
of instruction under this subdivision must issue a standard adult high school diploma to
persons who successfully demonstrate the competencies, knowledge, and skills required
by the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
new text end

Sec. 18. new text begin CAREER PATHWAYS AND TECHNICAL EDUCATION ADVISORY
TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Recommendations. new text end

new text begin (a) A career pathways and technical education
advisory task force is established to recommend to the Minnesota legislature, consistent
with Minnesota Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3,
how to structurally redesign secondary and postsecondary education to:
new text end

new text begin (1) improve secondary and postsecondary outcomes for students and adult learners;
new text end

new text begin (2) align secondary and postsecondary education programs serving students and
adult learners;
new text end

new text begin (3) align secondary and postsecondary education programs and Minnesota's
workforce needs; and
new text end

new text begin (4) measure and evaluate the combined efficacy of Minnesota's public kindergarten
through grade 12 and postsecondary education programs.
new text end

new text begin (b) Advisory task force members, in preparing these recommendations, must
seek the advice of education providers, employers, policy makers, and other interested
stakeholders and must at least consider how to:
new text end

new text begin (1) better inform students about career options, occupational trends, and educational
paths leading to viable and rewarding careers and reduce the gap between the demand for
and preparation of a skilled Minnesota workforce;
new text end

new text begin (2) in consultation with a student's family, develop and periodically adapt, as
needed, an education and work plan for each student aligned with the student's personal
and professional interests, abilities, skills, and aspirations;
new text end

new text begin (3) improve monitoring of high school students' progress with targeted interventions
and support and remove the need for remedial instruction;
new text end

new text begin (4) increase and accelerate opportunities for secondary school students to earn
postsecondary credits leading to a certificate, industry license, or degree;
new text end

new text begin (5) better align high school courses and expectations and postsecondary
credit-bearing courses;
new text end

new text begin (6) better align high school standards and assessments, postsecondary readiness
measures and entrance requirements, and the expectations of Minnesota employers;
new text end

new text begin (7) increase the rates at which students complete a postsecondary certificate,
industry license, or degree; and
new text end

new text begin (8) provide graduates of two-year and four-year postsecondary institutions with the
foundational skills needed for civic engagement, ongoing employment, and continuous
learning.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The Career Pathways Advisory Task Force shall have 15
members appointed by July 15, 2013, as follows:
new text end

new text begin (1) one member appointed by the Minnesota Association of Career and Technical
Administrators;
new text end

new text begin (2) one member appointed by the Minnesota Association for Career and Technical
Education;
new text end

new text begin (3) one member appointed by the University of Minnesota who is a faculty member
working to develop career and technical educators in Minnesota;
new text end

new text begin (4) one member appointed by the Minnesota State Colleges and Universities who is
a faculty member working to develop career and technical educators in Minnesota;
new text end

new text begin (5) one member appointed by the National Research Center for Career and Technical
Education;
new text end

new text begin (6) one member appointed by the Minnesota Department of Education;
new text end

new text begin (7) one member appointed by the Minnesota Board of Teaching;
new text end

new text begin (8) one member appointed by the Minnesota Association of Colleges for Teacher
Education;
new text end

new text begin (9) one member appointed by the Minnesota State Colleges and Universities from
faculty for foundational skills and general education;
new text end

new text begin (10) one member representing licensed career and technical education teachers
appointed by Education Minnesota;
new text end

new text begin (11) one member appointed by the commissioner of the Minnesota Department of
Employment and Economic Development;
new text end

new text begin (12) one member appointed by the Minnesota Chamber of Commerce;
new text end

new text begin (13) one member appointed by the Minnesota Business Partnership;
new text end

new text begin (14) one member appointed by the Minnesota Secondary School Principals
Association;
new text end

new text begin (15) one member appointed by the Minnesota Association of School Administrators;
new text end

new text begin (16) one member appointed by the Minnesota School Counselors Association;
new text end

new text begin (17) one member appointed by the Minnesota Association of Charter Schools; and
new text end

new text begin (18) four members appointed by the commissioner of education who have expertise
in any of the areas with which the task force has been charged in subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Terms. new text end

new text begin Each member shall serve until the task force sunsets, unless
replaced by their appointing authority.
new text end

new text begin Subd. 4. new text end

new text begin First meeting; acting chair; chair. new text end

new text begin The commissioner of education shall
convene the first meeting by August 15, 2013, and shall act as chair until the task force
elects a chair from among its members at the first meeting.
new text end

new text begin Subd. 5. new text end

new text begin Staff; technical assistance. new text end

new text begin The commissioner of education, on request
by the task force, will provide technical assistance and provide staff assistance sufficient
for the task force to carry out its duties.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By February 15, 2014, the task force shall submit a written
report describing its recommendations to the chairs and ranking minority members of the
legislative committees and divisions with primary jurisdiction over kindergarten through
grade 12 education.
new text end

new text begin Subd. 7. new text end

new text begin Sunset. new text end

new text begin The task force expires the day after the task force reports to the
legislature, or February 15, 2014, whichever is earlier.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19. new text begin STANDARD ADULT HIGH SCHOOL DIPLOMA ADVISORY TASK
FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of education shall appoint a
nine-member advisory task force to recommend programmatic requirements for adult
basic education programs of instruction leading to a standard adult high school diploma
under Minnesota Statutes, section 124D.52, subdivision 8.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The commissioner of education must appoint representatives
from the following organizations to the task force by July 1, 2013:
new text end

new text begin (1) one employee of the Department of Education with expertise in adult basic
education;
new text end

new text begin (2) five administrators and teachers with expertise in development of education
curriculum from local adult basic education programs located in rural, suburban, and
urban areas of the state, at least one of whom represents the Literacy Action network;
new text end

new text begin (3) one employee of the Minnesota State Colleges and Universities with expertise
in adult basic education;
new text end

new text begin (4) one employee of the Department of Employment and Economic Development
with expertise in adult basic education and employment; and
new text end

new text begin (5) one member of the Minnesota Chamber of Commerce familiar with adult basic
education programs under Minnesota Statutes, section 124D.52.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The duties of the task force shall include:
new text end

new text begin (1) reviewing "Minnesota Adult Secondary Credential: a Student Strategy for
Workforce Readiness and Individual Prosperity," a report submitted in 2012 by the
Minnesota Adult Secondary Task Force, and other relevant materials; and
new text end

new text begin (2) developing specific criteria to be used in awarding the new adult diploma.
new text end

new text begin Subd. 4. new text end

new text begin First meeting. new text end

new text begin The commissioner of education must convene the first
meeting of the task force by August 1, 2013.
new text end

new text begin Subd. 5. new text end

new text begin Chair. new text end

new text begin The commissioner shall appoint a chair.
new text end

new text begin Subd. 6. new text end

new text begin Assistance. new text end

new text begin The commissioner, upon request, must provide technical
assistance to task force members.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin By February 1, 2014, the task force must submit its
recommendations to the commissioner of education for providing a standard adult high
school diploma to persons who are not eligible for kindergarten through grade 12 services,
who do not have a high school diploma, and who successfully complete an approved adult
basic education program of instruction necessary to earn an adult high school diploma.
The commissioner must consider these recommendations when adopting rules under
Minnesota Statutes, section 124D.52, subdivision 8.
new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin The task force sunsets the day after submitting its report under
subdivision 7, or February 2, 2014, whichever is earlier.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota Department of Education. new text end

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

new text begin Subd. 2. new text end

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

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

	new text begin $ new text end	new text begin 15,955,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 21,001,000 new text end	new text begin ..... new text end	new text begin 2015 new text end

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

new text begin Subd. 3. new text end

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

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

	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2014 new text end
	new text begin $ new text end	new text begin 0 new text end	new text begin ..... new text end	new text begin 2015 new text end

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

Sec. 21. 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. 22. new text begin REPEALER.
new text end

new text begin (a) 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

new text begin (b) new text end new text begin Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4,
5, 6, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090;
3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160;
3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240;
3501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020;
3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140;
3501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2012, section 120A.22, subdivision 5, is amended to read:

Subd. 5.

Ages and terms.

(a) Every child between seven and deleted text begin 16 deleted text end new text begin 17 new text end years of age must
receive instruction new text begin unless the child has graduated new text end . Every child under the age of seven who
is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days,
or other kindergarten programs shall receive instruction. Except as provided in subdivision
6, a parent may withdraw a child under the age of seven from enrollment at any time.

(b) A school district by annual board action may require children subject to this
subdivision to receive instruction in summer school. A district that acts to require children
to receive instruction in summer school shall establish at the time of its action the criteria
for determining which children must receive instruction.

new text begin (c) A pupil 16 years of age or older who meets the criteria of section 124D.68,
subdivision 2, may be assigned to an area learning center. Such assignment may be made
only after consultation with the principal, area learning center director, and parent or
guardian.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
new text end

Sec. 2.

Minnesota Statutes 2012, section 120A.22, subdivision 8, is amended to read:

Subd. 8.

Withdrawal from school.

Any student deleted text begin between 16 and 18 deleted text end new text begin who is 17 new text end years
old who seeks to withdraw from school, and the student's parent or guardian must:

(1) attend a meeting with school personnel to discuss the educational opportunities
available to the student, including alternative educational opportunities; and

(2) sign a written election to withdraw from school.

Sec. 3.

Minnesota Statutes 2012, section 120A.22, subdivision 11, is amended to read:

Subd. 11.

Assessment of performance.

(a) Each year the performance of every
child ages seven through 16 new text begin and every child ages 16 through 17 for which an initial
report was filed pursuant to section 120A.24, subdivision 1, after the child is 16 and new text end who
is not enrolled in a public school must be assessed using a nationally norm-referenced
standardized achievement examination. The superintendent of the district in which the
child receives instruction and the person in charge of the child's instruction must agree about
the specific examination to be used and the administration and location of the examination.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
new text end

Sec. 4.

Minnesota Statutes 2012, section 120A.22, subdivision 12, is amended to read:

Subd. 12.

Legitimate exemptions.

new text begin (a) new text end A parent, guardian, or other person
having control of a child may apply to a school district to have the child excused from
attendance for the whole or any part of the time school is in session during any school
year. Application may be made to any member of the board, a truant officer, a principal,
or the superintendent. The school district may state in its school attendance policy that
it may ask the student's parent or legal guardian to verify in writing the reason for
the child's absence from school. A note from a physician or a licensed mental health
professional stating that the child cannot attend school is a valid excuse. The board of the
district in which the child resides may approve the application upon the following being
demonstrated to the satisfaction of that board:

(1) that the child's physical or mental health is such as to prevent attendance at
school or application to study for the period required, which includes:

(i) child illness, medical, dental, orthodontic, or counseling appointments;

(ii) family emergencies;

(iii) the death or serious illness or funeral of an immediate family member;

(iv) active duty in any military branch of the United States;

(v) the child has a condition that requires ongoing treatment for a mental health
diagnosis; or

(vi) other exemptions included in the district's school attendance policy;

(2) that the child has already completed state and district standards required for
graduation from high school; or

(3) that it is the wish of the parent, guardian, or other person having control of the
child, that the child attend for a period or periods not exceeding in the aggregate three
hours in any week, a school for religious instruction conducted and maintained by some
church, or association of churches, or any Sunday school association incorporated under
the laws of this state, or any auxiliary thereof. This school for religious instruction must
be conducted and maintained in a place other than a public school building, and it must
not, in whole or in part, be conducted and maintained at public expense. However, a child
may be absent from school on such days as the child attends upon instruction according to
the ordinances of some church.

new text begin (b) Notwithstanding subdivision 6, paragraph (a), a parent may withdraw a child
from an all-day, every-day kindergarten program and put their child in a half-day program,
if offered, or an alternate-day program without being truant. A school board must excuse a
kindergarten child from a part of a school day at the request of the child's parent.
new text end

Sec. 5.

Minnesota Statutes 2012, section 120A.24, subdivision 1, is amended to read:

Subdivision 1.

Reports to superintendent.

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

(1) by October 1 of the first school year the child receives instruction after reaching
the age of seven;

(2) within 15 days of when a parent withdraws a child from public school after
age seven to provide instruction in a nonpublic school that is not accredited by a
state-recognized accredited agency;

(3) within 15 days of moving out of a district; and

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

(b) The person or nonpublic school in charge of providing instruction to a child
between the ages of seven and 16 new text begin and every child ages 16 through 17 for which an
initial report was filed pursuant to this subdivision after the child is 16 new text end must submit, by
October 1 of each school year, a letter of intent to continue to provide instruction under
this section for all students under the person's or school's supervision and any changes to
the information required in paragraph (a) for each student.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
new text end

Sec. 6.

Minnesota Statutes 2012, section 121A.22, subdivision 2, is amended to read:

Subd. 2.

Exclusions.

In addition, this section does not apply to drugs or medicine
that are:

(1) purchased without a prescription;

(2) used by a pupil who is 18 years old or older;

(3) used in connection with services for which a minor may give effective consent,
including section 144.343, subdivision 1, and any other law;

(4) used in situations in which, in the judgment of the school personnel who are
present or available, the risk to the pupil's life or health is of such a nature that drugs or
medicine should be given without delay;

(5) used off the school grounds;

(6) used in connection with athletics or extra curricular activities;

(7) used in connection with activities that occur before or after the regular school day;

(8) provided or administered by a public health agency to prevent or control an
illness or a disease outbreak as provided for in sections 144.05 and 144.12;

(9) prescription asthma or reactive airway disease medications self-administered by
a pupil with an asthma inhaler if the district has received a written authorization from the
pupil's parent permitting the pupil to self-administer the medication, the inhaler is properly
labeled for that student, and the parent has not requested school personnel to administer
the medication to the pupil. The parent must submit written authorization for the pupil to
self-administer the medication each school year; or

(10) deleted text begin prescription nonsyringe injectors of deleted text end epinephrine new text begin auto-injectors new text end , consistent with
section 121A.2205, if the parent and prescribing medical professional annually inform
the pupil's school in writing that (i) the pupil may possess the epinephrine or (ii) the
pupil is unable to possess the epinephrine and requires immediate access to deleted text begin nonsyringe
injectors of deleted text end epinephrine new text begin auto-injectors new text end that the parent provides properly labeled to the
school for the pupil as needed.

Sec. 7.

Minnesota Statutes 2012, section 121A.2205, is amended to read:

121A.2205 POSSESSION AND USE OF deleted text begin NONSYRINGE INJECTORS OF
deleted text end EPINEPHRINE new text begin AUTO-INJECTORS new text end ; MODEL POLICY.

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin As used in this section:
new text end

new text begin (1) "administer" means the direct application of an epinephrine auto-injector to
the body of an individual;
new text end

new text begin (2) "epinephrine auto-injector" means a device that automatically injects a
premeasured dose of epinephrine; and
new text end

new text begin (3) "school" means a public school under section 120A.22, subdivision 4, or a
nonpublic school, excluding a home school, under section 120A.22, subdivision 4, that
is subject to the federal Americans with Disabilities Act.
new text end

new text begin Subd. 2. new text end

new text begin Plan for use of epinephrine auto-injectors. new text end

(a) At the start of each school
year or at the time a student enrolls in school, whichever is first, a student's parent, school
staff, including those responsible for student health care, and the prescribing medical
professional must develop and implement an individualized written health plan for a
student who is prescribed deleted text begin nonsyringe injectors of deleted text end epinephrine new text begin auto-injectors new text end that enables
the student to:

(1) possess deleted text begin nonsyringe injectors of deleted text end epinephrine new text begin auto-injectors new text end ; or

(2) if the parent and prescribing medical professional determine the student is unable
to possess the epinephrine, have immediate access to deleted text begin nonsyringe injectors of deleted text end epinephrine
new text begin auto-injectors new text end in close proximity to the student at all times during the instructional day.

The plan must designate the school staff responsible for implementing the student's
health plan, including recognizing anaphylaxis and administering deleted text begin nonsyringe injectors of
deleted text end epinephrine new text begin auto-injectors new text end when required, consistent with section 121A.22, subdivision 2,
clause (10). This health plan may be included in a student's 504 plan.

(b) deleted text begin A school under this section is a public school under section 120A.22, subdivision
4, or a nonpublic school, excluding a home school, under section 120A.22, subdivision 4,
that is subject to the federal Americans with Disabilities Act. deleted text end Other nonpublic schools are
encouraged to develop and implement an individualized written health plan for students
requiring deleted text begin nonsyringe injectors of deleted text end epinephrine new text begin auto-injectors new text end , consistent with this section
and section 121A.22, subdivision 2, clause (10).

(c) A school district and its agents and employees are immune from liability for
any act or failure to act, made in good faith, in implementing this section new text begin and section
121A.2207 new text end .

(d) The education commissioner may develop and transmit to interested schools a
model policy and individualized health plan form consistent with this section and federal
504 plan requirements. The policy and form may:

(1) assess a student's ability to safely possess deleted text begin nonsyringe injectors of deleted text end epinephrine
new text begin auto-injectors new text end ;

(2) identify staff training needs related to recognizing anaphylaxis and administering
epinephrine when needed;

(3) accommodate a student's need to possess or have immediate access to deleted text begin nonsyringe
injectors of deleted text end epinephrine new text begin auto-injectors new text end in close proximity to the student at all times during
the instructional day; and

(4) ensure that the student's parent provides properly labeled deleted text begin nonsyringe injectors of
deleted text end epinephrine new text begin auto-injectors new text end to the school for the student as needed.

(e) Additional deleted text begin nonsyringe injectors of deleted text end epinephrine new text begin auto-injectors new text end may be available in
school first aid kits.

(f) The school board of the school district must define instructional day for the
purposes of this section.

Sec. 8.

new text begin [121A.2207] LIFE-THREATENING ALLERGIES IN SCHOOLS;
STOCK SUPPLY OF EPINEPHRINE AUTO-INJECTORS.
new text end

new text begin Subdivision 1. new text end

new text begin Districts and schools permitted to maintain supply.
new text end

new text begin Notwithstanding section 151.37, districts and schools may obtain and possess epinephrine
auto-injectors to be maintained and administered by school personnel to a student or
other individual if, in good faith, it is determined that person is experiencing anaphylaxis
regardless of whether the student or other individual has a prescription for an epinephrine
auto-injector. The administration of an epinephrine auto-injector in accordance with
this section is not the practice of medicine.
new text end

new text begin Subd. 2. new text end

new text begin Arrangements with manufacturers. new text end

new text begin A district or school may enter into
arrangements with manufacturers of epinephrine auto-injectors to obtain epinephrine
auto-injectors at fair-market, free, or reduced prices. A third party, other than a
manufacturer or supplier, may pay for a school's supply of epinephrine auto-injectors.
new text end

Sec. 9.

Minnesota Statutes 2012, section 121A.39, is amended to read:

121A.39 SCHOOL COUNSELORS.

new text begin (a) new text end A school district is strongly encouraged to have an adequate student-to-counselor
ratio for its students beginning in the 2015-2016 school year and later.

new text begin (b) A school counselor shall assist a student in meeting the requirements for high
school graduation, college and career exploration, and selection, college affordability
planning, and successful transitions into postsecondary education or training.
new text end

Sec. 10.

Minnesota Statutes 2012, section 122A.09, subdivision 4, is amended to read:

Subd. 4.

License and rules.

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

(b) The board must adopt rules requiring a person to pass a skills examination in
reading, writing, and mathematics as a requirement for initial teacher licensure new text begin , except
that the board may issue up to two additional temporary, one-year teaching licenses to an
otherwise qualified candidate who has not yet passed the skills exam new text end . Such rules must
require college and universities offering a board-approved teacher preparation program to
provide remedial assistance to persons who did not achieve a qualifying score on the skills
examination, including those for whom English is a second language.

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

(d) The board must provide the leadership and adopt rules for the redesign of teacher
education programs to implement a research based, results-oriented curriculum that
focuses on the skills teachers need in order to be effective. The board shall implement new
systems of teacher preparation program evaluation to assure program effectiveness based
on proficiency of graduates in demonstrating attainment of program outcomes. Teacher
preparation programs including alternative teacher preparation programs under section
122A.245, among other programs, must include a content-specific, board-approved,
performance-based assessment that measures teacher candidates in three areas: planning
for instruction and assessment; engaging students and supporting learning; and assessing
student learning.

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

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

(g) The board must grant licenses to interns and to candidates for initial licenses
based on appropriate professional competencies that are aligned with the board's licensing
system and students' diverse learning needs. The board must include these licenses in a