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HF 890

5th Engrossment - 90th Legislature (2017 - 2018) Posted on 02/22/2018 02:48pm

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Current Version - 5th Engrossment

A bill for an act
relating to education finance; providing funding in early childhood, kindergarten
through grade 12, and adult education, including general education, education
excellence, teachers, special education, facilities and technology, nutrition, libraries,
early childhood and family support, community education and prevention,
self-sufficiency and lifelong learning, and state agencies; making forecast
adjustments; requiring a report; appropriating money;amending Minnesota Statutes
2016, sections 43A.08, subdivisions 1, 1a; 120A.22, subdivision 9; 120A.41;
120B.021, subdivisions 1, 3; 120B.022, subdivision 1b; 120B.12, subdivisions 2,
2a, 3; 120B.125; 120B.132; 120B.22, subdivision 2; 120B.23, subdivision 3;
120B.232, subdivision 1; 120B.30, subdivision 1; 120B.31, subdivision 4, by
adding a subdivision; 120B.35, subdivision 3; 120B.36, subdivision 1; 121A.22,
subdivision 2; 121A.221; 122A.14, subdivision 9; 122A.18, subdivisions 7c, 8;
122A.21, subdivisions 1, 2, by adding a subdivision; 122A.40, subdivision 10;
122A.41, by adding a subdivision; 122A.414, subdivision 2; 122A.415, subdivision
4; 122A.416; 123A.30, subdivision 6; 123A.73, subdivision 2; 123B.41,
subdivisions 2, 5a; 123B.52, subdivision 1, by adding a subdivision; 123B.595,
subdivisions 1, 4; 123B.71, subdivisions 11, 12; 123B.92, subdivision 1; 124D.03,
subdivision 5a; 124D.05, subdivision 3; 124D.09, subdivisions 3, 5, 10, 12, 13,
by adding subdivisions; 124D.1158, subdivisions 3, 4; 124D.165, subdivisions 1,
2, 3, 4; 124D.52, subdivision 7; 124D.549; 124D.55; 124D.59, subdivision 2;
124D.68, subdivision 2; 124D.695; 124E.03, subdivision 2; 124E.05, subdivision
7; 124E.11; 124E.22; 125A.0941; 125A.11, subdivision 1; 125A.21, subdivision
2; 125A.515; 125A.56, subdivision 1; 125A.74, subdivision 1; 125A.76, subdivision
2c; 126C.05, subdivisions 1, 8; 126C.10, subdivisions 2, 2a, 3, 13a, by adding a
subdivision; 126C.17, subdivision 9; 127A.45, subdivision 10; 134.31, subdivision
2; 136A.1791, subdivisions 1, 2, 9; 256B.0625, subdivision 26; 256J.08,
subdivisions 38, 39; 297A.70, subdivision 2; Laws 2015, First Special Session
chapter 3, article 1, section 27, subdivisions 2, as amended, 3, 4, as amended, 6,
as amended, 7, as amended, 9, as amended; article 2, section 70, subdivisions 2,
as amended, 3, as amended, 4, as amended, 5, as amended, 7, as amended, 11, as
amended; article 4, section 9, subdivision 2, as amended; article 5, section 30,
subdivisions 2, as amended, 3, as amended, 5, as amended, 6; article 6, section 13,
subdivisions 2, as amended, 3, as amended; article 7, section 7, subdivisions 2, as
amended, 3, as amended, 4, as amended; article 9, section 8, subdivisions 5, as
amended, 6, as amended; article 10, section 3, subdivision 2, as amended; article
11, section 3, subdivision 2, as amended; Laws 2016, chapter 189, article 25,
sections 58; 62, subdivisions 7, 11, 17; article 30, section 25, subdivision 5;
proposing coding for new law in Minnesota Statutes, chapters 120A; 120B; 121A;
122A; 124D; 127A; 136A; repealing Minnesota Statutes 2016, sections 122A.40,
subdivision 11; 122A.41, subdivision 14; 123A.73, subdivision 3; 124D.151;
124D.73, subdivision 2; 125A.75, subdivision 7; 125A.76, subdivision 2b; 129C.10,
subdivisions 1, 2, 3, 3a, 3b, 4, 4a, 5a, 6, 7, 8; 129C.105; 129C.15; 129C.20;
129C.25; 129C.26; 129C.30; Minnesota Rules, parts 3500.3100, subpart 4;
3600.0010, subparts 1, 2, 2a, 2b, 3, 6; 3600.0020; 3600.0030, subparts 1, 2, 4, 6;
3600.0045; 3600.0055; 3600.0065; 3600.0075; 3600.0085.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2016, section 120A.41, is amended to read:


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

(a) 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 through 6, and 1,020 hours of instruction for a student in grades 7 through 12, not
including summer school. The school calendar for all-day kindergarten must include at least
850 hours of instruction for the school year. The school calendar for a prekindergarten
student under section 124D.151, if offered by the district, must include at least 350 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 a four-day week schedule
has been approved by the commissioner under section 124D.126.

(b) A school board's annual school calendar may include plans for up to five days of
instruction provided through online instruction due to inclement weather. The inclement
weather plans must be developed according to section 120A.414.

Sec. 2.

[120A.414] E-LEARNING DAYS.

Subdivision 1.

Days.

"E-learning day" means a school day where a school offers full
access to online instruction provided by students' individual teachers due to inclement
weather. A school district or charter school that chooses to have e-learning days may have
up to five e-learning days in one school year. An e-learning day is counted as a day of
instruction and included in the hours of instruction under section 120A.41.

Subd. 2.

Plan.

A school board may adopt an e-learning day plan after consulting with
the exclusive representative of the teachers. A charter school may adopt an e-learning day
plan after consulting with its teachers. The plan must include accommodations for students
without Internet access at home and for digital device access for families without the
technology or an insufficient amount of technology for the number of children in the
household. A school's e-learning day plan must provide accessible options for students with
disabilities under chapter 125A.

Subd. 3.

Annual notice.

A school district or charter school must notify parents and
students of the e-learning day plan at the beginning of the school year.

Subd. 4.

Daily notice.

On an e-learning day declared by the school, a school district or
charter school must notify parents and students at least two hours prior to the normal school
start time that students need to follow the e-learning day plan for that day.

Subd. 5.

Teacher access.

Each student's teacher must be accessible both online and by
telephone during normal school hours on an e-learning day to assist students and parents.

EFFECTIVE DATE.

This section is effective for the 2017-2018 school year and later.

Sec. 3.

Minnesota Statutes 2016, 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, consistent with section 121A.221, 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) epinephrine auto-injectors, 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 epinephrine auto-injectors that the parent provides properly
labeled to the school for the pupil as needed.

Sec. 4.

Minnesota Statutes 2016, section 121A.221, is amended to read:


121A.221 POSSESSION AND USE OF ASTHMA INHALERS BY ASTHMATIC
STUDENTS.

(a) Consistent with section 121A.22, subdivision 2, clause (9), in a school district that
employs a school nurse or provides school nursing services under another arrangement, the
school nurse or other appropriate party must assess the student's knowledge and skills to
safely possess and use an asthma inhaler in a school setting and enter into the student's
school health record a plan to implement safe possession and use of asthma inhalers.

(b) Consistent with section 121A.22, subdivision 2, clause (9), in a school that does not
have a school nurse or school nursing services, the student's parent or guardian must submit
written verification from the prescribing professional that documents an assessment of the
student's knowledge and skills to safely possess and use an asthma inhaler in a school setting
has been completed.

Sec. 5.

Minnesota Statutes 2016, section 123B.41, subdivision 2, is amended to read:


Subd. 2.

Textbook.

(a) "Textbook" means any book or book substitute, including
electronic books as well as other printed materials delivered electronically, which a pupil
uses as a text or text substitute in a particular class or program in the school regularly
attended and a copy of which is expected to be available for the individual use of each pupil
in this class or program. Textbook includes an online book with an annual subscription cost.

(b) For purposes of calculating the annual nonpublic pupil aid entitlement for textbooks,
the term shall be limited to books, workbooks, or manuals, whether bound or in loose-leaf
form, as well as electronic books and other printed materials delivered electronically,
intended for use as a principal source of study material for a given class or a group of
students.

(c) For purposes of sections 123B.40 to 123B.48, the terms "textbook" and "software
or other educational technology" include only such secular, neutral, and nonideological
materials as are available, used by, or of benefit to Minnesota public school pupils.

EFFECTIVE DATE.

This section is effective for revenue in fiscal year 2018 and later.

Sec. 6.

Minnesota Statutes 2016, section 123B.41, subdivision 5a, is amended to read:


Subd. 5a.

Software or other educational technology.

For purposes of sections 123B.42
and 123B.43, "software or other educational technology" includes software, programs,
applications, hardware, and any other electronic educational technology. Software or other
educational technology includes course registration fees for advanced placement courses
delivered online.

EFFECTIVE DATE.

This section is effective for revenue in fiscal year 2018 and later.

Sec. 7.

Minnesota Statutes 2016, 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, the cost
of providing transportation for children with disabilities includes (A) the additional cost of
transporting a student in a shelter care facility as defined in section 260C.007, subdivision
30,
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). 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 or in a shelter care facility.

(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.

EFFECTIVE DATE.

This section is effective retroactively from December 10, 2016.

Sec. 8.

Minnesota Statutes 2016, section 126C.05, subdivision 8, is amended to read:


Subd. 8.

Average daily membership.

(a) Membership for pupils in grades kindergarten
through 12 and for prekindergarten pupils with disabilities shall mean the number of pupils
on the current roll of the school, counted from the date of entry until withdrawal. The date
of withdrawal shall mean the day the pupil permanently leaves the school or the date it is
officially known that the pupil has left or has been legally excused. However, a pupil,
regardless of age, who has been absent from school for 15 consecutive school days during
the regular school year or for five consecutive school days during summer school or
intersession classes of flexible school year programs without receiving instruction in the
home or hospital shall be dropped from the roll and classified as withdrawn. Nothing in this
section shall be construed as waiving the compulsory attendance provisions cited in section
120A.22. Average daily membership equals the sum for all pupils of the number of days
of the school year each pupil is enrolled in the district's schools divided by the number of
days the schools are in session or are providing e-learning days due to inclement weather.
Days of summer school or intersession classes of flexible school year programs are only
included in the computation of membership for pupils with a disability not appropriately
served primarily in the regular classroom. A student must not be counted as more than 1.2
pupils in average daily membership under this section and section 126C.10, subdivision 2a,
paragraph (b)
. When the initial total average daily membership exceeds 1.2 for a pupil
enrolled in more than one school district during the fiscal year, each district's average daily
membership must be reduced proportionately.

(b) A student must not be counted as more than one pupil in average daily membership
except for purposes of section 126C.10, subdivision 2a.

Sec. 9.

Minnesota Statutes 2016, section 126C.10, subdivision 2, is amended to read:


Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula allowance
times the adjusted pupil units for the school year. The formula allowance for fiscal year
2015 is $5,831. The formula allowance for fiscal year 2016 is $5,948. The formula allowance
for fiscal year 2017 and later is $6,067. The formula allowance for fiscal year 2018 is $6,158.
The formula allowance for fiscal year 2019 and later is $6,249.

EFFECTIVE DATE.

This section is effective for revenue in fiscal year 2018 and later.

Sec. 10.

Minnesota Statutes 2016, 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 $5,117 and the sum of the adjusted 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) Extended time revenue for pupils placed in an on-site education program at the Prairie
Lakes Education Center or the Lake Park School, located within the borders of Independent
School District No. 347, Willmar, for instruction provided after the end of the preceding
regular school year and before the beginning of the following regular school year equals
membership hours divided by the minimum annual instructional hours in section 126C.05,
subdivision 15, not to exceed 0.20, times the pupil unit weighting in section 126C.05,
subdivision 1, times $5,117.

(c) A school district's extended time revenue may be used for extended day programs,
extended week programs, summer school, vacation break academies such as spring break
academies and summer term academies, and other programming authorized under the
learning year program.

EFFECTIVE DATE.

This section is effective for revenue for fiscal year 2018 and later.

Sec. 11.

Minnesota Statutes 2016, section 126C.10, subdivision 3, is amended to read:


Subd. 3.

Compensatory education revenue.

(a) For fiscal year 2014, 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
. 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. A district's
compensatory revenue equals the sum of its compensatory revenue for each building in the
district and the amounts designated under Laws 2015, First Special Session chapter 3, article
2, section 70, subdivision 8, for fiscal year 2017
. 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.

(d) Of the amount of revenue under this subdivision, 1.7 percent for fiscal year 2018,
3.5 percent for fiscal year 2019, and for fiscal year 2020 and later, 3.5 percent plus the
percentage change in the formula allowance from fiscal year 2019, must be used for extended
time activities under subdivision 2a, paragraph (c).

EFFECTIVE DATE.

This section is effective for revenue for fiscal year 2018 and later.

Sec. 12.

Minnesota Statutes 2016, section 126C.10, subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue, 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 pupil unit to
the operating capital equalizing factor. The operating capital equalizing factor equals $15,740
for fiscal year 2017, $19,972 $19,245 for fiscal year 2018, and $22,912 $22,185 for fiscal
year 2019 and later.

Sec. 13.

Minnesota Statutes 2016, section 126C.10, is amended by adding a subdivision
to read:


Subd. 18a.

Pupil transportation adjustment.

(a) An independent, common, or special
school district's transportation sparsity revenue under Minnesota Statutes, section 126C.10,
subdivision 18, is increased by the greater of zero or 18.2 percent of the difference between:

(1) the lesser of the district's total cost for regular and excess pupil transportation under
section 123B.92, subdivision 1, paragraph (b), including depreciation, for the previous fiscal
year or 105 percent of the district's total cost for the second previous fiscal year; and

(2) the sum of:

(i) 4.66 percent of the district's basic revenue for the previous fiscal year;

(ii) transportation sparsity revenue under Minnesota Statutes, section 126C.10, subdivision
18, for the previous fiscal year; and

(iii) the district's charter school transportation adjustment for the previous fiscal year.

(b) A charter school's pupil transportation adjustment equals the school district per pupil
adjustment under paragraph (a).

EFFECTIVE DATE.

This section is effective for revenue for fiscal year 2018 and later.

Sec. 14.

Minnesota Statutes 2016, section 126C.17, subdivision 9, is amended to read:


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 adjusted
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per adjusted 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 adjusted 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 adjusted pupil unit times the
adjusted 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 adjusted 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.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 15.

Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:


Subd. 10.

Payments to school nonoperating funds.

Each fiscal year state general fund
payments for a district nonoperating fund must be made at the current year aid payment
percentage of the estimated entitlement during the fiscal year of the entitlement. This amount
shall be paid in 12 six equal monthly installments from July through December. The amount
of the actual entitlement, after adjustment for actual data, minus the payments made during
the fiscal year of the entitlement must be paid prior to October 31 of the following school
year. The commissioner may make advance payments of debt service equalization aid and
state-paid tax credits for a district's debt service fund earlier than would occur under the
preceding schedule if the district submits evidence showing a serious cash flow problem in
the fund. The commissioner may make earlier payments during the year and, if necessary,
increase the percent of the entitlement paid to reduce the cash flow problem.

Sec. 16. NEVIS SCHOOL DISTRICT; LEVY ADJUSTMENT.

Notwithstanding Minnesota Statutes, section 126C.48, Independent School District No.
308, Nevis, at the discretion of its school board, may spread any levy adjustment remaining
from the conversion of its operating referendum revenue over three or fewer years beginning
with school property taxes for taxes payable in 2018.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 17. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

General education aid.

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

$
6,981,058,000
.....
2018
$
7,139,147,000
.....
2019

The 2018 appropriation includes $686,828,000 for 2017 and $6,294,230,000 for 2018.

The 2019 appropriation includes $699,358,000 for 2018 and $6,439,789,000 for 2019.

Subd. 3.

Enrollment options transportation.

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

$
29,000
.....
2018
$
31,000
.....
2019

Subd. 4.

Abatement aid.

For abatement aid under Minnesota Statutes, section 127A.49:

$
2,374,000
.....
2018
$
2,163,000
.....
2019

The 2018 appropriation includes $262,000 for 2017 and $2,112,000 for 2018.

The 2019 appropriation includes $234,000 for 2018 and $1,929,000 for 2019.

Subd. 5.

Consolidation transition aid.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$
185,000
.....
2018
$
382,000
.....
2019

The 2018 appropriation includes $0 for 2017 and $185,000 for 2018.

The 2019 appropriation includes $20,000 for 2018 and $362,000 for 2019.

Subd. 6.

Nonpublic pupil education aid.

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

$
18,182,000
.....
2018
$
19,164,000
.....
2019

The 2018 appropriation includes $1,687,000 for 2017 and $16,495,000 for 2018.

The 2019 appropriation includes $1,832,000 for 2018 and $17,332,000 for 2019.

Subd. 7.

Nonpublic pupil transportation.

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

$
18,292,000
.....
2018
$
18,366,000
.....
2019

The 2018 appropriation includes $1,835,000 for 2017 and $16,457,000 for 2018.

The 2019 appropriation includes $1,828,000 for 2018 and $16,538,000 for 2019.

Subd. 8.

One-room schoolhouse.

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

$
65,000
.....
2018
$
65,000
.....
2019

Subd. 9.

Career and technical aid.

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

$
4,561,000
.....
2018
$
4,125,000
.....
2019

The 2018 appropriation includes $476,000 for 2017 and $4,085,000 for 2018.

The 2019 appropriation includes $453,000 for 2018 and $3,672,000 for 2019.

Sec. 18. REPEALER.

Minnesota Statutes 2016, section 124D.73, subdivision 2, is repealed.

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2016, section 120A.22, subdivision 9, is amended to read:


Subd. 9.

Curriculum Knowledge and skills.

Instruction must be provided in at least
the following subject areas:

(1) basic communication skills including reading and writing, literature, and fine arts;

(2) mathematics and science;

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

(4) health and physical education.

Instruction, textbooks, and materials must be in the English language. Another language
may be used pursuant to sections 124D.59 to 124D.61.

Sec. 2.

Minnesota Statutes 2016, section 120B.021, subdivision 1, is amended to read:


Subdivision 1.

Required academic standards.

(a) 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 that includes civics consistent with section 120B.02, subdivision 3;

(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.

(b) 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.

(c) Beginning in the 2016-2017 school year, The department must adopt the most recent
National Association of Sport and Physical Education SHAPE America (Society of Health
and Physical Educators)
kindergarten through grade 12 standards and benchmarks for
physical education as the required physical education academic standards. The department
may modify and adapt the national standards to accommodate state interest. The modification
and adaptations must maintain the purpose and integrity of the national standards. The
department must make available sample assessments, which school districts may use as an
alternative to local assessments, to assess students' mastery of the physical education
standards beginning in the 2018-2019 school year.

(d) A school district may include child sexual abuse prevention instruction in a health
curriculum, consistent with paragraph (a), clause (6). Child sexual abuse prevention
instruction may include age-appropriate instruction on recognizing sexual abuse and assault,
boundary violations, and ways offenders groom or desensitize victims, as well as strategies
to promote disclosure, reduce self-blame, and mobilize bystanders. A school district may
provide instruction under this paragraph in a variety of ways, including at an annual assembly
or classroom presentation. A school district may also provide parents information on the
warning signs of child sexual abuse and available resources.

(d) (e) 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.

Sec. 3.

Minnesota Statutes 2016, section 120B.021, subdivision 3, is amended to read:


Subd. 3.

Rulemaking.

The commissioner, consistent with the requirements of this section
and section 120B.022, must adopt statewide rules under section 14.389 for implementing
statewide rigorous core academic standards in language arts, mathematics, science, social
studies, physical education, and the arts. After the rules authorized under this subdivision
are initially adopted, the commissioner may not amend or repeal these rules nor adopt new
rules on the same topic without specific legislative authorization. The academic standards
for language arts, mathematics, and the arts must be implemented for all students beginning
in the 2003-2004 school year. The academic standards for science and social studies must
be implemented for all students beginning in the 2005-2006 school year.

Sec. 4.

Minnesota Statutes 2016, section 120B.022, subdivision 1b, is amended to read:


Subd. 1b.

State bilingual and multilingual seals.

(a) Consistent with efforts to strive
for the world's best workforce under sections 120B.11 and 124E.03, subdivision 2, paragraph
(i), and close the academic achievement and opportunity gap under sections 124D.861 and
124D.862, voluntary state bilingual and multilingual seals are established to recognize high
school students in any school district, charter school, or nonpublic school who demonstrate
an advanced-low level or an intermediate high level of functional proficiency in listening,
speaking, reading, and writing on either assessments aligned with American Council on the
Teaching of Foreign Languages' (ACTFL) proficiency guidelines or on equivalent valid
and reliable assessments in one or more languages in addition to English. American Sign
Language is a language other than English for purposes of this subdivision and a world
language for purposes of subdivision 1a.

(b) In addition to paragraph (a), to be eligible to receive a seal:

(1) students must satisfactorily complete all required English language arts credits; and

(2) students must demonstrate mastery of Minnesota's English language proficiency
standards.

(c) Consistent with this subdivision, a high school student who demonstrates an
intermediate high ACTFL level of functional proficiency in one language in addition to
English is eligible to receive the state bilingual gold seal. A high school student who
demonstrates an intermediate high ACTFL level of functional native proficiency in more
than one language in addition to English is eligible to receive the state multilingual gold
seal. A high school student who demonstrates an advanced-low ACTFL level of functional
proficiency in one language in addition to English is eligible to receive the state bilingual
platinum seal. A high school student who demonstrates an advanced-low ACTFL level of
functional proficiency in more than one language in addition to English is eligible to receive
the state multilingual platinum seal.

(d) School districts and charter schools may give students periodic opportunities to
demonstrate their level of proficiency in listening, speaking, reading, and writing in a
language in addition to English. Where valid and reliable assessments are unavailable, a
school district or charter school may rely on evaluators trained in assessing under ACTFL
proficiency guidelines to assess a student's level of foreign, heritage, or indigenous language
proficiency under this section. School districts and charter schools must maintain appropriate
records to identify high school students eligible to receive the state bilingual or multilingual
gold and platinum seals. The school district or charter school must affix the appropriate seal
to the transcript of each high school student who meets the requirements of this subdivision
and may affix the seal to the student's diploma. A school district or charter school must not
charge the high school student a fee for this seal.

(e) A school district or charter school may award elective course credits in world
languages to a student who demonstrates the requisite proficiency in a language other than
English under this section.

(f) A school district or charter school may award community service credit to a student
who demonstrates an intermediate high or advanced-low ACTFL level of functional
proficiency in listening, speaking, reading, and writing in a language other than English
and who participates in community service activities that are integrated into the curriculum,
involve the participation of teachers, and support biliteracy in the school or local community.

(g) The commissioner must list on the Web page those assessments that are aligned to
ACTFL proficiency guidelines.

(h) By August 1, 2015, the colleges and universities of the Minnesota State Colleges
and Universities system must establish criteria to translate the seals into college credits
based on the world language course equivalencies identified by the Minnesota State Colleges
and Universities faculty and staff and, upon request from an enrolled student, the Minnesota
State Colleges and Universities may award foreign language credits to a student who receives
a Minnesota World Language Proficiency Certificate under subdivision 1a. A student who
demonstrated the requisite level of language proficiency in grade 10, 11, or 12 to receive a
seal or certificate and is enrolled in a Minnesota State Colleges and Universities institution
must request college credits for the student's seal or proficiency certificate within three
academic years after graduating from high school. The University of Minnesota is encouraged
to award students foreign language academic credits consistent with this paragraph.

Sec. 5.

Minnesota Statutes 2016, section 120B.12, subdivision 2, is amended to read:


Subd. 2.

Identification; report.

(a) Each school district shall identify before the end of
kindergarten, grade 1, and grade 2 students who are not reading at grade level before the
end of the current school year and shall identify students in grade 3 or higher who
demonstrate a reading difficulty to a classroom teacher
. Reading assessments in English,
and in the predominant languages of district students where practicable, must identify and
evaluate students' areas of academic need related to literacy. The district also must monitor
the progress and provide reading instruction appropriate to the specific needs of English
learners. The district must use a locally adopted, developmentally appropriate, and culturally
responsive assessment and annually report summary assessment results to the commissioner
by July 1. The district also must annually report to the commissioner by July 1 a summary
of the district's efforts to screen and identify students with:

(1) dyslexia, using screening tools such as those recommended by the department's
dyslexia and literacy specialist;
or

(2) convergence insufficiency disorder to the commissioner by July 1.

(b) A student identified under this subdivision must be provided with alternate instruction
under section 125A.56, subdivision 1.

Sec. 6.

Minnesota Statutes 2016, section 120B.12, subdivision 2a, is amended to read:


Subd. 2a.

Parent notification and involvement.

Schools, at least annually, must give
the parent of each student who is not reading at or above grade level timely information
about:

(1) the student's reading proficiency as measured by a locally adopted assessment;

(2) reading-related services currently being provided to the student and the student's
progress
; and

(3) strategies for parents to use at home in helping their student succeed in becoming
grade-level proficient in reading in English and in their native language.

A district may not use this section to deny a student's right to a special education
evaluation.

Sec. 7.

Minnesota Statutes 2016, section 120B.12, subdivision 3, is amended to read:


Subd. 3.

Intervention.

(a) For each student identified under subdivision 2, the district
shall provide reading intervention to accelerate student growth and reach the goal of reading
at or above grade level by the end of the current grade and school year. If a student does
not read at or above grade level by the end of grade 3, the district must continue to provide
reading intervention until the student reads at grade level.
District intervention methods
shall encourage family engagement and, where possible, collaboration with appropriate
school and community programs. Intervention methods may include, but are not limited to,
requiring attendance in summer school, intensified reading instruction that may require that
the student be removed from the regular classroom for part of the school day, extended-day
programs, or programs that strengthen students' cultural connections.

(b) A school district or charter school is strongly encouraged to provide a personal
learning plan for a student who is unable to demonstrate grade-level proficiency, as measured
by the statewide reading assessment in grade 3. The district or charter school must determine
the format of the personal learning plan in collaboration with the student's educators and
other appropriate professionals. The school must develop the learning plan in consultation
with the student's parent or guardian. The personal learning plan must address knowledge
gaps and skill deficiencies through strategies such as specific exercises and practices during
and outside of the regular school day, periodic assessments, and reasonable timelines. The
personal learning plan may include grade retention, if it is in the student's best interest. A
school must maintain and regularly update and modify the personal learning plan until the
student reads at grade level. This paragraph does not apply to a student under an
individualized education program.

Sec. 8.

[120B.122] DYSLEXIA SPECIALIST.

Subdivision 1.

Purpose.

The department must employ a dyslexia specialist to provide
technical assistance for dyslexia and related disorders and to serve as the primary source of
information and support for schools in addressing the needs of students with dyslexia and
related disorders. The dyslexia specialist shall also act to increase professional awareness
and instructional competencies to meet the educational needs of students with dyslexia or
identified with risk characteristics associated with dyslexia and shall develop implementation
guidance and make recommendations to the commissioner consistent with section 122A.06,
subdivision 4, to be used to assist general education teachers and special education teachers
to recognize educational needs and to improve literacy outcomes for students with dyslexia
or identified with risk characteristics associated with dyslexia, including recommendations
related to increasing the availability of online and asynchronous professional development
programs and materials.

Subd. 2.

Definition.

For purposes of this section, a "dyslexia specialist" means a dyslexia
therapist, licensed psychologist, licensed speech-language pathologist, or certified dyslexia
training specialist who has a minimum of three years of field experience in screening,
identifying, and treating dyslexia and related disorders.

Subd. 3.

Requirements.

A dyslexia specialist shall be highly trained in dyslexia and
related disorders and in using interventions and treatments that are evidence-based,
multisensory, direct, explicit, structured, and sequential in the areas of phonics, phonemic
awareness, vocabulary, fluency, and comprehension.

Sec. 9.

Minnesota Statutes 2016, section 120B.125, is amended to read:


120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION TO
POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL LEARNING
PLANS.

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

(1) provide a comprehensive plan to prepare for and complete a career and college ready
curriculum by meeting state and local academic standards and developing career and
employment-related skills such as team work, collaboration, creativity, communication,
critical thinking, and good work habits;

(2) emphasize academic rigor and high expectations and inform the student, and the
student's parent or guardian if the student is a minor, of the student's achievement level
score on the Minnesota Comprehensive Assessments that are administered during high
school
;

(3) help students identify interests, aptitudes, aspirations, and personal learning styles
that may affect their career and college ready goals and postsecondary education and
employment choices;

(4) set appropriate career and college ready goals with timelines that identify effective
means for achieving those goals;

(5) help students access education and career options;

(6) integrate strong academic content into career-focused courses and applied and
experiential learning opportunities and integrate relevant career-focused courses and applied
and experiential learning opportunities into strong academic content;

(7) help identify and access 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;

(8) help identify collaborative partnerships among prekindergarten through grade 12
schools, postsecondary institutions, economic development agencies, and local and regional
employers that support students' transition to postsecondary education and employment and
provide students with applied and experiential learning opportunities; and

(9) 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 making adequate progress to meet state and local academic standards and 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 or pursue a career, career interest, employment goals, or related job training.

(c) Educators must possess the knowledge and skills to effectively teach all English
learners in their classrooms. School districts must provide appropriate curriculum, targeted
materials, professional development opportunities for educators, and sufficient resources
to enable English learners to become career and college ready.

(d) When assisting students in developing a plan for a smooth and successful transition
to postsecondary education and employment, districts must recognize the unique possibilities
of each student and ensure that the contents of each student's plan reflect the student's unique
talents, skills, and abilities as the student grows, develops, and learns.

(e) If a student with a disability has an individualized education program (IEP) or
standardized written plan that meets the plan components of this section, the IEP satisfies
the requirement and no additional transition plan is needed.

(f) Students who do not meet or exceed Minnesota academic standards, as measured by
the Minnesota Comprehensive Assessments that are administered during high school, shall
be informed that admission to a public school is free and available to any resident under 21
years of age or who meets the requirements of section 120A.20, subdivision 1, paragraph
(c). A student's plan under this section shall continue while the student is enrolled.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 10.

Minnesota Statutes 2016, section 120B.132, is amended to read:


120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED PLACEMENT
AND INTERNATIONAL BACCALAUREATE PROGRAMS.

Subdivision 1.

Establishment; eligibility.

A program is established to raise kindergarten
through grade 12 academic achievement through increased student participation in
preadvanced placement, advanced placement, and international baccalaureate programs,
consistent with section 120B.13. Schools and charter schools eligible to participate under
this section:

(1) must have a three-year plan approved by the local school board to establish a new
international baccalaureate program leading to international baccalaureate authorization,
expand an existing program that leads to international baccalaureate authorization, or expand
an existing authorized international baccalaureate program; or

(2) must have a three-year plan approved by the local school board to create a new or
expand an existing program to implement the college board advanced placement courses
and exams or preadvanced placement initiative; and

(3) must propose to further raise students' academic achievement by:

(i) increasing the availability of and all students' access to advanced placement or
international baccalaureate courses or programs;

(ii) expanding the breadth of advanced placement or international baccalaureate courses
or programs that are available to students;

(iii) increasing the number and the diversity of the students who participate in advanced
placement or international baccalaureate courses or programs and succeed;

(iv) providing low-income and other disadvantaged students with increased access to
advanced placement or international baccalaureate courses and programs; or

(v) increasing the number of high school students, including low-income and other
disadvantaged students, who receive college credit by successfully completing advanced
placement or international baccalaureate courses or programs and achieving satisfactory
scores on related exams.

Subd. 2.

Application and review process; funding priority.

(a) Charter schools and
school districts in which eligible schools under subdivision 1 are located may apply to the
commissioner, in the form and manner the commissioner determines, for competitive funding
to further raise students' academic achievement. The application must detail the specific
efforts the applicant intends to undertake in further raising students' academic achievement,
consistent with subdivision 1, and a proposed budget detailing the district or charter school's
current and proposed expenditures for advanced placement, preadvanced placement, and
international baccalaureate courses and programs. The proposed budget must demonstrate
that the applicant's efforts will support implementation of advanced placement, preadvanced
placement, and international baccalaureate courses and programs. Expenditures for
administration must not exceed five percent of the proposed budget. The commissioner may
require an applicant to provide additional information.

(b) When reviewing applications, the commissioner must determine whether the applicant
satisfied all the requirements in this subdivision and subdivision 1. The commissioner may
give funding priority to an otherwise qualified applicant that demonstrates:

(1) a focus on developing or expanding preadvanced placement, advanced placement,
or international baccalaureate courses or programs or increasing students' participation in,
access to, or success with the courses or programs, including the participation, access, or
success of low-income and other disadvantaged students;

(2) a compelling need for access to preadvanced placement, advanced placement, or
international baccalaureate courses or programs;

(3) an effective ability to actively involve local business and community organizations
in student activities that are integral to preadvanced placement, advanced placement, or
international baccalaureate courses or programs;

(4) access to additional public or nonpublic funds or in-kind contributions that are
available for preadvanced placement, advanced placement, or international baccalaureate
courses or programs; or

(5) an intent to implement activities that target low-income and other disadvantaged
students.; or

(6) an intent to increase the advanced placement and international baccalaureate course
offerings in science, technology, engineering, and math to low-income and other
disadvantaged students.

Subd. 3.

Funding; permissible funding uses.

(a) The commissioner shall award grants
to applicant school districts and charter schools that meet the requirements of subdivisions
1 and 2. The commissioner must award grants on an equitable geographical basis to the
extent feasible and consistent with this section. Grant awards must not exceed the lesser of:

(1) $85 times the number of pupils enrolled at the participating sites on October 1 of the
previous fiscal year; or

(2) the approved supplemental expenditures based on the budget submitted under
subdivision 2. For charter schools in their first year of operation, the maximum funding
award must be calculated using the number of pupils enrolled on October 1 of the current
fiscal year. The commissioner may adjust the maximum funding award computed using
prior year data for changes in enrollment attributable to school closings, school openings,
grade level reconfigurations, or school district reorganizations between the prior fiscal year
and the current fiscal year; or

(3) $150,000 per district or charter school.

(b) School districts and charter schools that submit an application and receive funding
under this section must use the funding, consistent with the application, to:

(1) provide teacher training and instruction to more effectively serve students, including
low-income and other disadvantaged students, who participate in preadvanced placement,
advanced placement, or international baccalaureate courses or programs;

(2) further develop preadvanced placement, advanced placement, or international
baccalaureate courses or programs;

(3) improve the transition between grade levels to better prepare students, including
low-income and other disadvantaged students, for succeeding in preadvanced placement,
advanced placement, or international baccalaureate courses or programs;

(4) purchase books and supplies;

(5) pay course or program fees;

(6) increase students' participation in and success with preadvanced placement, advanced
placement, or international baccalaureate courses or programs;

(7) expand students' access to preadvanced placement, advanced placement, or
international baccalaureate courses or programs through online learning;

(8) hire appropriately licensed personnel to teach additional advanced placement or
international baccalaureate courses or programs; or

(9) engage in other activity directly related activities to expanding expand low-income
or disadvantaged
students' access to, participation in, and success with preadvanced
placement, advanced placement, or international baccalaureate courses or programs,
including
. Other activities may include but are not limited to preparing and disseminating
promotional materials to
low-income and other disadvantaged students and their families.

Subd. 4.

Grants; annual reports.

(a) Each school district and charter school that receives
a grant under this section annually must collect demographic and other student data to
demonstrate and measure the extent to which the district or charter school raised students'
academic achievement under this program and must report the data to the commissioner in
the form and manner the commissioner determines. The commissioner annually by February
15 must make summary data about this program available to the education policy and finance
committees of the legislature.

(b) Each school district and charter school that receives a grant under this section annually
must report to the commissioner, consistent with the Uniform Financial Accounting and
Reporting Standards, its actual expenditures for advanced placement, preadvanced placement,
and international baccalaureate courses and programs. The report must demonstrate that
the school district or charter school has maintained its effort from other sources for advanced
placement, preadvanced placement, and international baccalaureate courses and programs
compared with the previous fiscal year, and the district or charter school has expended all
grant funds, consistent with its approved budget.

(c) Notwithstanding any law to the contrary, a grant under this section is available for
three years from the date of the grant if the district or charter school meets the annual
benchmarks in its plan under subdivision 1.

Sec. 11.

Minnesota Statutes 2016, section 120B.22, subdivision 2, is amended to read:


Subd. 2.

In-service training.

Each district is encouraged to provide training for district
staff and school board members to help on the following:

(1) helping students identify violence in the family and the community so that students
may learn to resolve conflicts in effective, nonviolent ways;

(2) responding to a disclosure of child sexual abuse in a supportive, appropriate manner;
and

(3) complying with mandatory reporting requirements under section 626.556.

The in-service training must be ongoing and involve experts familiar with sexual abuse,
domestic violence, and personal safety issues.

Sec. 12.

Minnesota Statutes 2016, section 120B.23, subdivision 3, is amended to read:


Subd. 3.

Grant awards.

(a) The commissioner may award grants for a violence
prevention education program to eligible applicants as defined in subdivision 2. Grant
amounts may not exceed $3 per resident pupil unit in the district or group of districts in the
prior school year. Grant recipients should be geographically distributed throughout the state.

(b) School districts and charter schools may accept funds from private and other public
sources for child sexual abuse prevention programs developed and implemented under
sections 120B.021, subdivision 1, paragraph (d), and 120B.234, including federal funding
under the Every Student Succeeds Act.

Sec. 13.

Minnesota Statutes 2016, section 120B.232, subdivision 1, is amended to read:


Subdivision 1.

Character development education.

(a) Character education is the shared
responsibility of parents, teachers, and members of the community.
The legislature
encourages districts to integrate or offer instruction on character education including, but
not limited to, character qualities such as attentiveness, truthfulness, respect for authority,
diligence, gratefulness, self-discipline, patience, forgiveness, respect for others, peacemaking,
and resourcefulness. Instruction should be integrated into a district's existing programs,
curriculum, or the general school environment. To the extent practicable, instruction should
be integrated into positive behavioral intervention strategies, under section 122A.627.
The
commissioner shall provide assistance at the request of a district to develop character
education curriculum and programs.

(b) Character development education under paragraph (a) may include a voluntary
elementary, middle, and high school program that incorporates the history and values of
Congressional Medal of Honor recipients and may be offered as part of the social studies,
English language arts, or other curriculum, as a schoolwide character building and veteran
awareness initiative, or as an after-school program, among other possibilities.

Sec. 14.

[120B.234] CHILD SEXUAL ABUSE PREVENTION EDUCATION.

Subdivision 1.

Purpose.

The purpose of this section, which may be cited as "Erin's
Law," is to encourage districts to integrate or offer instruction on child sexual abuse
prevention to students and training to all school personnel on recognizing and preventing
sexual abuse and sexual violence.

Subd. 2.

Curriculum.

School districts may consult with other federal, state, or local
agencies and community-based organizations, including the Child Information Gateway
Web site maintained by the United States Department of Health and Human Services, to
identify research-based tools, curricula, and programs to prevent child sexual abuse for use
under section 120B.021, subdivision 1, paragraph (d).

Subd. 3.

Other state programs.

The child sexual abuse prevention instruction provided
under this section is part of preventing sexual violence against children, which includes,
but is not limited to, the following activities:

(1) training on mandated reporting requirements provided on the Department of
Education's Web site;

(2) the Code of Ethics for Minnesota Teachers; and

(3) consultation by the commissioner of education with the commissioners of health,
human services, and public safety, and other state agencies to prevent violence against
children.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 15.

Minnesota Statutes 2016, 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 as computer-adaptive reading and mathematics
assessments for students that are aligned with the state's required academic standards under
section 120B.021, include multiple choice questions, and are administered annually to all
students in grades 3 through 8. State-developed high school tests aligned with the state's
required academic standards under section 120B.021 and administered to all high school
students in a subject other than writing must include multiple choice questions. The
commissioner shall establish one or more months during which schools shall administer
the tests to students each school year.

(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, (v) a nationally
recognized armed services vocational aptitude test.

(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, (v) a nationally
recognized armed services vocational aptitude test.

(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.

(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 2012-2013 school year and later, students'
state graduation requirements, based on a longitudinal, systematic approach to student
education and career planning, assessment, instructional support, and evaluation, include
the following:

(1) an opportunity to participate on a nationally normed college entrance exam, in grade
11 or grade 12;

(2) achievement and career and college readiness in mathematics, reading, and writing,
consistent with paragraph (k) 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

(3) (2) 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.

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.

(d) 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 paragraph (c), clause (2) (1), 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.

(e) Though not a high school graduation requirement, students are encouraged to
participate in a nationally recognized college entrance exam. To the extent state funding
for college entrance exam fees is available, a district must pay the cost reimburse a student
in grade 11 or 12 who is eligible for a free or reduced-price meal
, one time, for an interested
student in grade 11 or 12 to take
for the registration fees associated with a nationally
recognized college entrance exam before graduating. A student must be able to take the
exam under this paragraph at the student's high school during the school day and at any one
of the multiple exam administrations available to students in the district.
In order to comply
with this subdivision,
a district may administer the ACT or SAT or both the ACT and SAT
to comply with this paragraph at the student's high school or arrange for the student to take
the exam at another location
. If the district administers only one of these two tests and a
student opts not to take that test and chooses instead to take the other of the two tests, the

A free or reduced-price meal eligible
student may take the other test exam at a different
time or location and remains eligible for the examination fee reimbursement.

(f) The commissioner and the chancellor of the Minnesota State Colleges and Universities
must collaborate in aligning instruction and assessments for adult basic education students
and English learners to provide the students with diagnostic information about any targeted
interventions, accommodations, modifications, and supports they need so that assessments
and other performance measures are accessible to them and they may seek postsecondary
education or employment without need for postsecondary remediation. When administering
formative or summative assessments used to measure the academic progress, including the
oral academic development, of English learners and inform their instruction, schools must
ensure that the assessments are accessible to the students and students have the modifications
and supports they need to sufficiently understand the assessments.

(g) Districts and schools, on an annual basis, must use career exploration elements 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.

(h) A student who demonstrates attainment of required state academic standards, which
include career and college readiness benchmarks, on high school assessments under
subdivision 1a 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.

(i) 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.

(j) 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.

(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, or
charter school must record on the high school transcript a student's progress toward career
and college readiness, and for other students as soon as practicable.

(l) The school board granting 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.

(m) The 3rd through 8th grade computer-adaptive assessment results and high school
test results shall be available to districts for diagnostic purposes affecting student learning
and district instruction and curriculum, and for establishing educational accountability. The
commissioner must establish empirically derived benchmarks on adaptive assessments in
grades 3 through 8. The commissioner, in consultation with the chancellor of the Minnesota
State Colleges and Universities, must establish empirically derived benchmarks on the high
school tests that reveal a trajectory toward career and college readiness consistent with
section 136F.302, subdivision 1a. The commissioner must disseminate to the public the
computer-adaptive assessments and high school test results upon receiving those results.

(n) The grades 3 through 8 computer-adaptive assessments 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.

(o) The commissioner shall include the following components in the statewide public
reporting system:

(1) uniform statewide computer-adaptive assessments of all students in grades 3 through
8 and testing at the high school levels 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.

(p) For purposes of statewide accountability, "career and college ready" means a high
school graduate has the knowledge, skills, and competencies to successfully pursue a career
pathway, including postsecondary credit leading to a degree, diploma, certificate, or
industry-recognized credential and employment. Students who are career and college ready
are able to successfully complete credit-bearing coursework at a two- or four-year college
or university or other credit-bearing postsecondary program without need for remediation.

(q) For purposes of statewide accountability, "cultural competence," "cultural
competency," or "culturally competent" means the ability and will of families and educators
to interact effectively with people of different cultures, native languages, and socioeconomic
backgrounds.

Sec. 16.

Minnesota Statutes 2016, section 120B.31, is amended by adding a subdivision
to read:


Subd. 3a.

Rollout sites; report.

The commissioner of education shall designate up to
six school districts or charter schools as rollout sites.

(a) The rollout sites should represent urban school districts, suburban school districts,
nonurban school districts, and charter schools. The commissioner shall designate rollout
sites and notify the schools by August 1, 2017, and the designated school districts or charter
schools shall have the right to opt in or out as rollout sites by September 1, 2017.

(b) The commissioner must consult stakeholders and review the American Community
Survey to develop recommendations for best practices for disaggregated data. Stakeholders
consulted under this paragraph include at least:

(1) the rollout sites;

(2) parent groups; and

(3) community representatives.

(c) The commissioner shall report to the legislative committees having jurisdiction over
kindergarten through grade 12 education policy and finance by February 1, 2018. The
commissioner may research best practices from other states that have disaggregated data
beyond the requirements of the most recent reauthorization of the Elementary and Secondary
Education Act. The commissioner must consult with the stakeholders on how to measure
a student's background as an immigrant or a refugee and provide a recommendation in the
report on how to include the data in the statewide rollout. The recommendations may address:

(1) the most meaningful use of disaggregated data, including but not limited to which
reports should include further disaggregated data;

(2) collection of additional student characteristics, including but not limited to ensuring
enhanced enrollment forms:

(i) provide context and the objective of additional data;

(ii) are designed to convey respect and acknowledgment of the sensitive nature of the
additional data; and

(iii) are designed to collect data consistent with user feedback;

(3) efficient data-reporting approaches when reporting additional information to the
department;

(4) the frequency by which districts and schools must update enrollment forms to meet
the needs of the state's changing racial and ethnic demographics; and

(5) the criteria for determining additional data. This recommendation should include a
recommendation for frequency of reviews and updates of the additional data and should
also identify the approach of updating any additional census data and data on new enrollees.
This recommendation must consider additional student groups that may face education
disparities and must take into account maintaining student privacy and providing
nonidentifiable student level data.

EFFECTIVE DATE.

This section is effective for the 2018-2019 school year and later.

Sec. 17.

Minnesota Statutes 2016, section 120B.31, subdivision 4, is amended to read:


Subd. 4.

Student performance data.

In developing policies and assessment processes
to hold schools and districts accountable for high levels of academic standards under section
120B.021, the commissioner shall aggregate and disaggregate student data over time to
report summary student performance and growth levels and, under section 120B.11,
subdivision 2
, clause (2), student learning and outcome data measured at the school, school
district, and statewide level. The commissioner shall use the student categories identified
under the federal Elementary and Secondary Education Act, as most recently reauthorized,
and student categories of:

(1) homelessness,;

(2) ethnicity, under section 120B.35, subdivision 3, paragraph (a), clause (2);

(3) race, under section 120B.35, subdivision 3, paragraph (a), clause (2);

(4) home language, immigrant, refugee status,;

(5) English learners under section 124D.59,;

(6) free or reduced-price lunch,; and

(7) other categories designated by federal law to organize and report the data so that
state and local policy makers can understand the educational implications of changes in
districts' demographic profiles over time as data are available.

Any report the commissioner disseminates containing summary data on student performance
must integrate student performance and the demographic factors that strongly correlate with
that performance.

EFFECTIVE DATE.

This section is effective for the 2019-2020 school year and later.

Sec. 18.

Minnesota Statutes 2016, section 120B.35, subdivision 3, is amended to read:


Subd. 3.

State growth target; other state measures.

(a)(1) 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.

(2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and
report separate categories of information using the student categories identified under the
federal Elementary and Secondary Education Act, as most recently reauthorized, and, in
addition to "other" for each race and ethnicity, and the Karen community, other student
categories as determined by the total Minnesota population at or above the 1,000-person
threshold based on the most recent decennial census, including ethnicity; race; refugee status

seven of the most populous Asian and Pacific Islander groups, three of the most populous
Native groups, seven of the most populous Hispanic/Latino groups, and five of the most
populous Black and African Heritage groups as determined by the total Minnesota population
based on the most recent American Community Survey
; English learners under section
124D.59; home language; free or reduced-price lunch; immigrant; and all students enrolled
in a Minnesota public school who are currently or were previously in foster care, except
that such disaggregation and cross tabulation is not required if the number of students in a
category is insufficient to yield statistically reliable information or the results would reveal
personally identifiable information about an individual student.

(b) The commissioner, in consultation with a stakeholder group that includes assessment
and evaluation directors, district staff, experts in culturally responsive teaching, 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
student growth and, under section 120B.11, subdivision 2, clause (2), student learning and
outcome data using the student categories identified under the federal Elementary and
Secondary Education Act, as most recently reauthorized, and other student categories under
paragraph (a), clause (2).

The commissioner must report measures of student growth and, under section 120B.11,
subdivision 2
, clause (2), student learning and outcome data, consistent with this paragraph,
including the English language development, academic progress, and oral academic
development of English learners and their native language development if the native language
is used as a language of instruction, and include data on all pupils enrolled in a Minnesota
public school course or program who are currently or were previously counted as an English
learner under section 124D.59.

(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 student categories identified
under the federal Elementary and Secondary Education Act, as most recently reauthorized,
and other student categories under paragraph (a), clause (2).

(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, consistent with the student categories
identified under paragraph (a), clause (2). 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.

(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:

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

(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

(3) the success that learning year program providers experience in:

(i) identifying at-risk and off-track student populations by grade;

(ii) providing successful prevention and intervention strategies for at-risk students;

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

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

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.

(f) The commissioner, in consultation with recognized experts with knowledge and
experience in assessing the language proficiency and academic performance of all English
learners enrolled in a Minnesota public school course or program who are currently or were
previously counted as an English learner under section 124D.59, must identify and report
appropriate and effective measures to improve current categories of language difficulty and
assessments, and monitor and report data on students' English proficiency levels, program
placement, and academic language development, including oral academic language.

(g) When reporting four- and six-year graduation rates, the commissioner or school
district must disaggregate the data by student categories according to paragraph (a), clause
(2).

(h) A school district must inform parents and guardians that volunteering information
on student categories not required by the most recent reauthorization of the Elementary and
Secondary Education Act is optional and will not violate the privacy of students or their
families, parents, or guardians. The notice must state the purpose for collecting the student
data.

EFFECTIVE DATE.

This section is effective for the 2018-2019 school year and later
for rollout sites under Minnesota Statutes, section 120B.31, subdivision 3a. This section is
effective for the 2019-2020 school year and later for all other schools.

Sec. 19.

Minnesota Statutes 2016, section 120B.36, subdivision 1, is amended to read:


Subdivision 1.

School performance reports and public reporting.

(a) The commissioner
shall report student academic performance data under section 120B.35, subdivisions 2 and
3; 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); 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 realizing racial and economic integration
under section 124D.861; the acquisition of English, and where practicable, native language
academic literacy, including oral academic language, and the academic progress of all
English learners enrolled in a Minnesota public school course or program who are currently
or were previously counted as English learners under section 124D.59; 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; foster care status, including all students enrolled
in a Minnesota public school course or program who are currently or were previously in
foster care, student homelessness, and district mobility; and extracurricular activities. The
report also must indicate a school's status under applicable federal law.

(b) The school performance report for a school site and a school district must include
school performance reporting information and calculate proficiency rates as required by the
most recently reauthorized Elementary and Secondary Education Act.

(c) The commissioner shall develop, annually update, and post on the department Web
site school performance reports consistent with paragraph (a) and section 120B.11.

(c) (d) The commissioner must make available performance reports by the beginning of
each school year.

(d) (e) A school or district may appeal its results in a form and manner determined by
the commissioner and consistent with federal law. The commissioner's decision to uphold
or deny an appeal is final.

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

EFFECTIVE DATE.

This section is effective for the 2017-2018 school year and later.

Sec. 20.

Minnesota Statutes 2016, section 122A.40, subdivision 10, is amended to read:


Subd. 10.

Negotiated unrequested leave of absence.

The school board and the exclusive
bargaining representative of the teachers may must negotiate a plan providing for unrequested
leave of absence without pay or fringe benefits for as many teachers as may be necessary
because of discontinuance of position, lack of pupils, financial limitations, or merger of
classes caused by consolidation of districts. Failing to successfully negotiate such a plan,
the provisions of subdivision 11 shall apply. The negotiated plan must not include provisions
which would result in the exercise of seniority by a teacher holding a provisional license,
other than a vocational education license, contrary to the provisions of subdivision 11,
paragraph (c), or the reinstatement of a teacher holding a provisional license, other than a
vocational education license, contrary to the provisions of subdivision 11, paragraph (e).
The provisions of section 179A.16 do not apply for the purposes of this subdivision.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 21.

Minnesota Statutes 2016, section 122A.41, is amended by adding a subdivision
to read:


Subd. 14a.

Negotiated unrequested leave of absence.

The school board and the exclusive
bargaining representative of the teachers must negotiate a plan providing for unrequested
leave of absence without pay or fringe benefits for as many teachers as may be necessary
because of discontinuance of position, lack of pupils, financial limitations, or merger of
classes caused by consolidation of districts.

EFFECTIVE DATE.

This section is effective July 1, 2018.

Sec. 22.

Minnesota Statutes 2016, section 122A.414, subdivision 2, is amended to read:


Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this program,
a school district, an intermediate school district consistent with paragraph (d), a school site,
or a charter school must have a world's best workforce plan under section 120B.11 and an
alternative teacher professional pay system agreement under paragraph (b). A charter school
participant also must comply with subdivision 2a.

(b) The alternative teacher professional pay system agreement must:

(1) describe how teachers can achieve career advancement and additional compensation;

(2) describe how the school district, intermediate school district, school site, or charter
school will provide teachers with career advancement options that allow teachers to retain
primary roles in student instruction and facilitate site-focused professional development
that helps other teachers improve their skills;

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating in
this system, base at least 60 percent of any compensation increase on teacher performance
using:

(i) schoolwide student achievement gains under section 120B.35 or locally selected
standardized assessment outcomes, or both;

(ii) measures of student growth and literacy that may include value-added models or
student learning goals, consistent with section 122A.40, subdivision 8, paragraph (b), clause
(9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures that include
the academic literacy, oral academic language, and achievement of English learners under
section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, subdivision 5,
paragraph (b), clause (10); and

(iii) an objective evaluation program under section 122A.40, subdivision 8, paragraph
(b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);

(4) provide for participation in job-embedded learning opportunities such as professional
learning communities to improve instructional skills and learning that are aligned with
student needs under section 120B.11, consistent with the staff development plan under
section 122A.60 and led during the school day by trained teacher leaders such as master or
mentor teachers;

(5) allow any teacher in a participating school district, intermediate school district, school
site, or charter school that implements an alternative pay system to participate in that system
without any quota or other limit; and

(6) encourage collaboration rather than competition among teachers.

(c) The alternative teacher professional pay system may:

(1) include a hiring bonus or other added compensation for to provide students with
equitable access to
teachers who, consistent with section 120B.11, subdivision 2, clause
(3):

(i) are identified as effective or highly effective under the local teacher professional
review cycle and or, when being considered for hire as first-year teachers, have demonstrated
skills during student teaching for being highly effective at closing achievement gaps;

(ii) work in a high-need or hard-to-fill position; or

(iii) are hired to work in a hard-to-staff school such as a school with a majority of students
whose families meet federal poverty guidelines, a geographically isolated school, or a school
identified by the state as eligible for targeted programs or services for its students; and

(2) include incentives for teachers to obtain a master's degree or other advanced
certification with at least 18 credits in their content field of licensure required for teaching
concurrent enrollment or college in the schools courses
, or to pursue the training or education
necessary to obtain an additional licensure in shortage areas identified by the district or
charter school,; or

(3) help fund a "grow your own" Grow Your Own new teacher initiative involving
nonlicensed educational professionals, including paraprofessionals and cultural liaisons
.

(d) An intermediate school district under this subdivision must demonstrate in a form
and manner determined by the commissioner that it uses the aid it receives under this section
for activities identified in the alternative teacher professional pay system agreement.

Sec. 23.

Minnesota Statutes 2016, section 122A.415, subdivision 4, is amended to read:


Subd. 4.

Basic alternative teacher compensation aid.

(a) 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 subdivision 1.
The basic alternative teacher compensation aid for a charter school with a plan approved
under section 122A.414, subdivisions 2a and 2b, 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 subdivision 1.

(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed $75,840,000 for fiscal year 2016 and
$88,118,000 for fiscal year 2017 and later. The commissioner must limit the amount of
alternative teacher compensation aid approved under this section so as not to exceed these
limits by not approving new participants or by prorating the aid among participating districts,
intermediate school districts, school sites, and charter schools. The commissioner may also
reallocate a portion of the allowable aid for the biennium from the second year to the first
year to meet the needs of approved participants.

(c) Basic alternative teacher compensation aid for an intermediate district or other
cooperative unit equals $3,000 times the number of licensed teachers employed by the
intermediate district or cooperative unit on October 1 of the previous school year.

Sec. 24.

[122A.417] ALTERNATIVE TEACHER COMPENSATION REVENUE
FOR ST. CROIX RIVER EDUCATION DISTRICT.

Notwithstanding section 122A.415, subdivision 4, paragraph (c), the St. Croix River
Education District, No. 6009-61, is eligible to receive alternative teacher compensation
revenue based on its staffing as of October 1 of the previous fiscal year as reported to the
department in a manner determined by the commissioner. To qualify for alternative teacher
compensation revenue, the St. Croix River Education District must meet all the requirements
of sections 122A.414 and 122A.415 that apply to cooperative units, must report its staffing
as of October 1 of each year to the department in a manner determined by the commissioner,
and must annually report to the department by November 30 its expenditures for the
alternative teacher professional pay system consistent with the uniform financial accounting
and reporting standards.

Sec. 25.

Minnesota Statutes 2016, section 124D.03, subdivision 5a, is amended to read:


Subd. 5a.

Lotteries.

If a school district has more applications than available seats at a
specific grade level, it must hold an impartial lottery following the January 15 deadline to
determine which students will receive seats. The district must give priority to enrolling
siblings of currently enrolled students, students whose applications are related to an approved
integration and achievement plan, and children of the school district's staff must receive
priority in the lottery.
, and students residing in that part of a municipality, defined under
section 469.1812, subdivision 3, where:

(1) the student's resident district does not operate a school building;

(2) the municipality is located partially or fully within the boundaries of at least five
school districts;

(3) the nonresident district in which the student seeks to enroll operates one or more
school buildings within the municipality; and

(4) no other nonresident, independent, special, or common school district operates a
school building within the municipality.

The process for the school district lottery must be established in school district policy,
approved by the school board, and posted on the school district's Web site.

EFFECTIVE DATE.

This section is effective for lotteries conducted beginning July
1, 2017.

Sec. 26.

Minnesota Statutes 2016, section 124D.09, subdivision 3, is amended to read:


Subd. 3.

Definitions.

For purposes of this section, the following terms have the meanings
given to them.

(a) "Eligible institution" means a Minnesota public postsecondary institution, a private,
nonprofit two-year trade and technical school granting associate degrees, an opportunities
industrialization center accredited by the North Central Association of Colleges and Schools,
or a private, residential, two-year or four-year, liberal arts, degree-granting college or
university located in Minnesota.

(b) "Course" means a course or program.

(c) "Concurrent enrollment" means nonsectarian courses in which an eligible pupil under
subdivision 5 or 5b enrolls to earn both secondary and postsecondary credits, are taught by
a secondary teacher or a postsecondary faculty member, and are offered at a high school
for which the district is eligible to receive concurrent enrollment program aid under section
124D.091.

Sec. 27.

Minnesota Statutes 2016, section 124D.09, subdivision 5, is amended to read:


Subd. 5.

Authorization; notification.

Notwithstanding any other law to the contrary,
an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled tribal
contract or grant school eligible for aid under section 124D.83, except a foreign exchange
pupil enrolled in a district under a cultural exchange program, may apply to an eligible
institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by that
postsecondary institution. Notwithstanding any other law to the contrary, a 9th or 10th grade
pupil enrolled in a district or an American Indian-controlled tribal contract or grant school
eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in a district
under a cultural exchange program, may apply to enroll in nonsectarian courses offered
under subdivision 10, if (1) the school district and the eligible postsecondary institution
providing the course agree to the student's enrollment or (2) the course is a world language
course currently available to 11th and 12th grade students, and consistent with section
120B.022 governing world language standards, certificates, and seals.
If an institution
accepts a secondary pupil for enrollment under this section, the institution shall send written
notice to the pupil, the pupil's school or school district, and the commissioner within ten
days of acceptance
. The notice must indicate the course and hours of enrollment of that
pupil. If the pupil enrolls in a course for postsecondary credit, the institution must notify
the pupil about payment in the customary manner used by the institution.

Sec. 28.

Minnesota Statutes 2016, section 124D.09, is amended by adding a subdivision
to read:


Subd. 5b.

Authorization; 9th or 10th grade pupil.

Notwithstanding any other law to
the contrary, a 9th or 10th grade pupil enrolled in a district or an American Indian-controlled
tribal contract or grant school eligible for aid under section 124D.83, except a foreign
exchange pupil enrolled in a district under a cultural exchange program, may apply to enroll
in nonsectarian courses offered under subdivision 10, if:

(1) the school district and the eligible postsecondary institution providing the course
agree to the student's enrollment; or

(2) the course is a world language course currently available to 11th and 12th grade
students, and consistent with section 120B.022 governing world language standards,
certificates, and seals.

Sec. 29.

Minnesota Statutes 2016, section 124D.09, subdivision 10, is amended to read:


Subd. 10.

Courses according to agreements.

(a) An eligible pupil, according to
subdivision 5, may enroll in a nonsectarian course taught by a secondary teacher or a
postsecondary faculty member and offered at a secondary school, or another location,
according to an agreement between a public school board and the governing body of an
eligible public postsecondary system or an eligible private postsecondary institution, as
defined in subdivision 3. All provisions of this section shall apply to a pupil, public school
board, district, and the governing body of a postsecondary institution, except as otherwise
provided.

(b) To encourage students, especially American Indian students and students of color,
to consider teaching as a profession, participating schools, school districts, and postsecondary
institutions are encouraged to develop and offer an "Introduction to Teaching" or
"Introduction to Education" course under this subdivision. An institution that receives a
grant to develop a course under this paragraph must annually report to the commissioner
in a form and manner determined by the commissioner on the participation rates of students
in courses under this paragraph, including the number of students who apply for admission
to colleges or universities with teacher preparation programs.

Sec. 30.

Minnesota Statutes 2016, section 124D.09, is amended by adding a subdivision
to read:


Subd. 11a.

Access to building and technology.

(a) A school district must allow a student
enrolled in a course under this section to remain at the school site during regular school
hours.

(b) A school district must adopt a policy that provides a student enrolled in a course
under this section with reasonable access during regular school hours to a computer and
other technology resources that the student needs to complete coursework for a postsecondary
enrollment course.

Sec. 31.

Minnesota Statutes 2016, section 124D.09, subdivision 12, is amended to read:


Subd. 12.

Credits; grade point average weighting policy.

(a) A pupil must not audit
a course under this section.

(b) A district shall grant academic credit to a pupil enrolled in a course for secondary
credit if the pupil successfully completes the course. Seven quarter or four semester college
credits equal at least one full year of high school credit. Fewer college credits may be
prorated. A district must also grant academic credit to a pupil enrolled in a course for
postsecondary credit if secondary credit is requested by a pupil. If no comparable course is
offered by the district, the district must, as soon as possible, notify the commissioner, who
shall determine the number of credits that shall be granted to a pupil who successfully
completes a course. If a comparable course is offered by the district, the school board shall
grant a comparable number of credits to the pupil. If there is a dispute between the district
and the pupil regarding the number of credits granted for a particular course, the pupil may
appeal the board's decision to the commissioner. The commissioner's decision regarding
the number of credits shall be final.

(c) A school board must adopt a policy regarding weighted grade point averages for any
high school or dual enrollment course. The policy must state whether the district offers
weighted grades. A school board must annually publish on its Web site a list of courses for
which a student may earn a weighted grade.

(d) The secondary credits granted to a pupil must be counted toward the graduation
requirements and subject area requirements of the district. Evidence of successful completion
of each course and secondary credits granted must be included in the pupil's secondary
school record. A pupil shall provide the school with a copy of the pupil's grade in each
course taken for secondary credit under this section. Upon the request of a pupil, the pupil's
secondary school record must also include evidence of successful completion and credits
granted for a course taken for postsecondary credit. In either case, the record must indicate
that the credits were earned at a postsecondary institution.

(e) If a pupil enrolls in a postsecondary institution after leaving secondary school, the
postsecondary institution must award postsecondary credit for any course successfully
completed for secondary credit at that institution. Other postsecondary institutions may
award, after a pupil leaves secondary school, postsecondary credit for any courses
successfully completed under this section. An institution may not charge a pupil for the
award of credit.

(f) The Board of Trustees of the Minnesota State Colleges and Universities and the
Board of Regents of the University of Minnesota must, and private nonprofit and proprietary
postsecondary institutions should, award postsecondary credit for any successfully completed
courses in a program certified by the National Alliance of Concurrent Enrollment Partnerships
offered according to an agreement under subdivision 10. Consistent with section 135A.101,
subdivision 3
, all MnSCU institutions must give full credit to a secondary pupil who
completes for postsecondary credit a postsecondary course or program that is part or all of
a goal area or a transfer curriculum at a MnSCU institution when the pupil enrolls in a
MnSCU institution after leaving secondary school. Once one MnSCU institution certifies
as completed a secondary student's postsecondary course or program that is part or all of a
goal area or a transfer curriculum, every MnSCU institution must consider the student's
course or program for that goal area or the transfer curriculum as completed.

Sec. 32.

Minnesota Statutes 2016, section 124D.09, subdivision 13, is amended to read:


Subd. 13.

Financial arrangements.

For a pupil enrolled in a course under this section,
the department must make payments according to this subdivision for courses that were
taken for secondary credit.

The department must not make payments to a school district or postsecondary institution
for a course taken for postsecondary credit only. The department must not make payments
to a postsecondary institution for a course from which a student officially withdraws during
the first 14 days of the quarter or semester or who has been absent from the postsecondary
institution for the first 15 consecutive school days of the quarter or semester and is not
receiving instruction in the home or hospital.

A postsecondary institution shall receive the following:

(1) for an institution granting quarter credit, the reimbursement per credit hour shall be
an amount equal to 88 percent of the product of the formula allowance minus $425, multiplied
by 1.2, and divided by 45; or

(2) for an institution granting semester credit, the reimbursement per credit hour shall
be an amount equal to 88 percent of the product of the general revenue formula allowance
minus $425, multiplied by 1.2, and divided by 30.

The department must pay to each postsecondary institution 100 percent of the amount
in clause (1) or (2) within 30 45 days of receiving initial enrollment information each quarter
or semester. If changes in enrollment occur during a quarter or semester, the change shall
be reported by the postsecondary institution at the time the enrollment information for the
succeeding quarter or semester is submitted. At any time the department notifies a
postsecondary institution that an overpayment has been made, the institution shall promptly
remit the amount due.

Sec. 33.

[124D.4535] INNOVATIVE DELIVERY OF CAREER AND TECHNICAL
EDUCATION PROGRAMS; SHARING OF DISTRICT RESOURCES.

Subdivision 1.

Establishment; requirements for participation.

(a) A program is
established to improve student, career and college readiness, and school outcomes by
allowing groups of school districts to work together in partnership with local and regional
postsecondary institutions and programs, community institutions, and other private, public,
for-profit, and nonprofit workplace partners, to:

(1) provide innovative education programs and activities that integrate core academic
and career and technical subjects in students' programs of study through coordinated
secondary and postsecondary career and technical programs leading to an industry
certification or other credential;

(2) provide embedded professional development for program participants;

(3) use performance assessments in authentic settings to measure students' technical
skills and progress toward attaining an industry certification or other credential; and

(4) efficiently share district, institution, and workplace resources.

(b) To participate in this program to improve student, career and college readiness, and
school outcomes, a group of two or more school districts must collaborate with school staff
and project partners and receive formal school board approval to form a partnership. The
partnership must develop a plan to provide challenging programmatic options for students
under paragraph (a); create professional development opportunities for educators and other
program participants; increase student engagement and connection and challenging learning
opportunities for diverse populations of students that are focused on employability skills
and technical, job-specific skills related to a specific career pathway; or demonstrate
efficiencies in delivering financial and other services needed to realize plan goals and
objectives. The plan must include:

(1) collaborative education goals and objectives;

(2) strategies and processes to implement those goals and objectives, including a budget
process with periodic expenditure reviews;

(3) valid and reliable measures including performance assessments in authentic settings
and progress toward attaining an industry certification or other credential, among other
measures, to evaluate progress in realizing plan goals and objectives;

(4) an implementation timeline; and

(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
schedules, and legal considerations needed to fully implement the plan.

A partnership may invite additional districts or other participants under paragraph (a) to
join the partnership after notifying the commissioner.

(c) A partnership of interested districts must submit an application to the commissioner
of education in the form and manner the commissioner determines, consistent with the
requirements of this section. The application must contain the formal approval adopted by
the school board in each district to participate in the plan.

(d) Notwithstanding any other law to the contrary, a participating school district under
this section continues to: receive revenue and maintain its taxation authority; be organized
and governed by an elected school board with general powers under section 123B.02; and
be subject to employment agreements under chapter 122A and section 179A.20; and district
employees continue to remain employees of the employing school district.

(e) Participating districts must submit a biennial report by February 1 in each
odd-numbered year to the education committees of the legislature and the commissioner of
education that includes performance assessment, high school graduation, and career and
technical certification data to show the success of the partnership in preparing diverse
populations of students for careers and jobs.

Subd. 2.

Commissioner's role.

The commissioner of education must convene an advisory
panel to advise the commissioner on applicants' qualifications to participate in this program.
The commissioner must ensure an equitable geographical distribution of program participants
to the extent practicable. The commissioner must select only those applicants that fully
comply with subdivision 1. The commissioner may terminate a program participant that
fails to effectively implement the goals and objectives contained in its application and
according to its stated timeline.

EFFECTIVE DATE.

(a) This section is effective the day following final enactment
and applies to those applications submitted after that date.

(b) Districts already approved for an innovation zone pilot project under Laws 2012,
chapter 263, section 1, as amended by Laws 2014, chapter 312, article 15, section 24, may
continue to operate.

Sec. 34.

Minnesota Statutes 2016, section 124D.68, subdivision 2, is amended to read:


Subd. 2.

Eligible pupils.

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

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

(2) is behind in satisfactorily completing coursework or obtaining credits for graduation;

(3) is pregnant or is a parent;

(4) has been assessed as chemically dependent;

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

(6) has been referred by a school district for enrollment in an eligible program or a
program pursuant to section 124D.69;

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

(8) has experienced mental health problems;

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

(10) speaks English as a second language or is an English learner; or

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

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

(b) For the 2016-2017 school year fiscal years 2017 and 2018 only, a pupil otherwise
qualifying under paragraph (a) who is at least 21 years of age and not yet 22 years of age,
is an English learner with an interrupted formal education according to section 124D.59,
subdivision 2a
, and was in an early middle college program during the previous school year
is eligible to participate in the graduation incentives program under section 124D.68 and
in concurrent enrollment courses offered under section 124D.09, subdivision 10, and is
funded in the same manner as other pupils under this section.

Sec. 35.

Minnesota Statutes 2016, section 124D.695, is amended to read:


124D.695 APPROVED RECOVERY PROGRAM FUNDING.

Subdivision 1.

Approved recovery program.

"Approved recovery program" means a
course of instruction offered by a recovery school that provides academic services, assistance
with recovery, and continuing care to students recovering from substance abuse or
dependency. A recovery program may be offered in a transitional academic setting designed
to meet graduation requirements. A recovery program must be approved by the commissioner
of education. The commissioner may specify the manner and form of the application for
the approval of a recovery school or recovery program. The commissioner must also approve
any unreimbursed pupil transportation costs incurred by students participating in an approved
recovery program.

Subd. 2.

Eligibility.

(a) An approved recovery program is eligible for an annual recovery
program grant of up to $125,000 to pay for a portion of the costs of under this section for
recovery program support staff under this section and approved pupil transportation expenses.

(b) "Recovery program support staff" means licensed alcohol and chemical dependency
counselors, licensed school counselors, licensed school psychologists, licensed school
nurses, and licensed school social workers.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 36.

Minnesota Statutes 2016, section 124E.03, subdivision 2, is amended to read:


Subd. 2.

Certain federal, state, and local requirements.

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

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

(c) A charter school must comply with the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.

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

(e) A charter school must comply with the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

(f) A charter school and charter school board of directors must comply with chapter 181
governing requirements for employment.

(g) A charter school must comply with continuing truant notification under section
260A.03.

(h) A charter school must develop and implement a teacher evaluation and peer review
process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (13), and place
students in classrooms in accordance with section 122A.40, subdivision 8, paragraph (d)
.
The teacher evaluation process in this paragraph does not create any additional employment
rights for teachers.

(i) A charter school must adopt a policy, plan, budget, and process, consistent with
section 120B.11, to review curriculum, instruction, and student achievement and strive for
the world's best workforce.

(j) A charter school is subject to and must comply with the Pupil Fair Dismissal Act,
sections 121A.40 to 121A.56.

Sec. 37.

Minnesota Statutes 2016, section 124E.05, subdivision 7, is amended to read:


Subd. 7.

Withdrawal.

If the governing board of an approved authorizer votes to withdraw
as an approved authorizer for a reason unrelated to any cause under section 124E.10,
subdivision 4
, the authorizer must notify all its chartered schools and the commissioner in
writing by March 1 of its intent to withdraw as an authorizer on June 30 in the next calendar
year, regardless of when the authorizer's five-year term of approval ends. Upon notification
of the schools and commissioner, the authorizer must provide a letter to the school for
distribution to families of students enrolled in the school that explains the decision to
withdraw as an authorizer.
The commissioner may approve the transfer of a charter school
to a new authorizer under section 124E.10, subdivision 5.

Sec. 38.

Minnesota Statutes 2016, section 124E.11, is amended to read:


124E.11 ADMISSION REQUIREMENTS AND ENROLLMENT.

(a) A charter school, including its free preschool or prekindergarten program established
under section 124E.06, subdivision 3, paragraph (b),
may limit admission to:

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

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

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

(b) A charter school, including its free preschool or prekindergarten program established
under section 124E.06, subdivision 3, paragraph (b),
shall enroll an eligible pupil who
submits a timely application, unless the number of applications exceeds the capacity of a
program, class, grade level, or building. In this case, pupils must be accepted by lot. The
charter school must develop and publish, including on its Web site, a lottery policy and
process that it must use when accepting pupils by lot.

(c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
and to a foster child of that pupil's parents and may give preference for enrolling children
of the school's staff before accepting other pupils by lot. A charter school that is located in
Duluth township in St. Louis County and admits students in kindergarten through grade 6
must give enrollment preference to students residing within a five-mile radius of the school
and to the siblings of enrolled children. A charter school may give enrollment preference
to children currently enrolled in the school's free preschool or prekindergarten program
under section 124E.06, subdivision 3, paragraph (a), who are eligible to enroll in kindergarten
in the next school year.

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

(e) Except as permitted in paragraph (d), a charter school, including its free preschool
or prekindergarten program established under section 124E.06, subdivision 3, paragraph
(b),
may not limit admission to pupils on the basis of intellectual ability, measures of
achievement or aptitude, or athletic ability and may not establish any criteria or requirements
for admission that are inconsistent with this section.

(f) The charter school shall not distribute any services or goods of value to students,
parents, or guardians as an inducement, term, or condition of enrolling a student in a charter
school.

(g) Once a student is enrolled in the school, the student is considered enrolled in the
school until the student formally withdraws or is expelled under the Pupil Fair Dismissal
Act in sections 121A.40 to 121A.56. A charter school is subject to and must comply with
the Pupil Fair Dismissal Act, sections 121A.40 to 121A.56.

(h) A charter school with at least 90 percent of enrolled students who are eligible for
special education services and have a primary disability of deaf or hard-of-hearing may
enroll prekindergarten pupils with a disability under section 126C.05, subdivision 1,
paragraph (a), and must comply with the federal Individuals with Disabilities Education
Act under Code of Federal Regulations, title 34, section 300.324, subsection (2), clause
(iv).

Sec. 39.

Minnesota Statutes 2016, section 124E.22, is amended to read:


124E.22 BUILDING LEASE AID.

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

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

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

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school. The commissioner must approve aid only for
a facility lease that has (i) a sum certain annual cost and (ii) a closure clause to relieve the
charter school of its lease obligations at the time the charter contract is terminated or not
renewed. The closure clause under item (ii) must not be constructed or construed to relieve
the charter school of its lease obligations in effect before the charter contract is terminated
or not renewed.

(b) A charter school must not use the building lease aid it receives for custodial,
maintenance service, utility, or other operating costs.

(c) The amount of annual building lease aid for a charter school shall not exceed the
lesser of (1) 90 percent of the approved cost or (2) the product of the charter school building
lease aid
pupil units served for the current school year times $1,314.

(d) A charter school's building lease aid pupil units equals the sum of the charter school
pupil units under section 126C.05 and the pupil units for the portion of the day that the
charter school's enrolled students are participating in the Postsecondary Enrollment Options
Act under section 124D.09 and not otherwise included in the pupil count under section
126C.05.

EFFECTIVE DATE.

This section is effective for fiscal year 2018 and later.

Sec. 40.

Minnesota Statutes 2016, section 125A.56, subdivision 1, is amended to read:


Subdivision 1.

Requirement.

(a) Before a pupil is referred for a special education
evaluation, the district must conduct and document at least two instructional strategies,
alternatives, or interventions using a system of scientific, research-based instruction and
intervention in academics or behavior, based on the pupil's needs, while the pupil is in the
regular classroom. The pupil's teacher must document the results. A special education
evaluation team may waive this requirement when it determines the pupil's need for the
evaluation is urgent. This section may not be used to deny a pupil's right to a special
education evaluation.

(b) A school district shall use alternative intervention services, including the assurance
of mastery program under section 124D.66, or an early intervening services program under
subdivision 2 to serve at-risk pupils who demonstrate a need for alternative instructional
strategies or interventions.

(c) A student identified as being unable to read at grade level under section 120B.12,
subdivision 2, paragraph (a), must be provided with alternate instruction under this
subdivision that is multisensory, systematic, sequential, cumulative, and explicit.

Sec. 41.

[136A.1276] ALTERNATIVE TEACHER PREPARATION GRANT
PROGRAM.

Subdivision 1.

Definitions.

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

(b) "Alternative teacher preparation program" means an alternative teacher preparation
program under section 122A.245, subdivision 2, or an experimental teacher preparation
program under section 122A.09, subdivision 10.

(c) "Commissioner" means the commissioner of the Office of Higher Education.

(d) "Program" means a teacher preparation curriculum leading to specific licensure areas.

(e) "Shortage area" means:

(1) licensure fields and economic development regions reported by the commissioner
of education as experiencing a teacher shortage; and

(2) economic development regions where there is a shortage of licensed teachers who
reflect the racial or ethnic diversity of students in the region.

(f) "Unit" means an institution or defined subdivision of the institution that has primary
responsibility for overseeing and delivering teacher preparation programs.

Subd. 2.

Establishment; eligibility.

(a) The commissioner, in consultation with the
Board of Teaching, must establish and administer a program annually awarding grants to
eligible alternative teacher preparation programs consistent with this section.

(b) To be eligible to receive a grant, an alternative teacher preparation program must
certify that it:

(1) is working to fill Minnesota's teacher shortage areas; and

(2) is a school district, charter school, or nonprofit corporation organized under chapter
317A or under section 501(c)(3) of the Internal Revenue Code of 1986 for an
education-related purpose that has been operating continuously for at least three years in
Minnesota or any other state.

(c) The commissioner must give priority to applicants based in Minnesota when awarding
grants under this section.

Subd. 3.

Use of grants.

(a) An alternative teacher preparation program receiving a grant
under this section must use the grant to:

(1) establish initial unit approval to become an alternative teacher preparation program;

(2) expand alternative teacher preparation programs by expanding program approval to
other licensure areas identified as shortage areas by the commissioner of education;

(3) recruit, select, and train teachers who reflect the racial or ethnic diversity of students
in Minnesota; or

(4) establish professional development programs for teachers who have obtained teaching
licenses through alternative teacher preparation programs.

An alternative teacher preparation program may expend grant funds on regional management
and operations, development, and central support services, including financial support and
support for technology and human services.

(b) An alternative teacher preparation program may use grant funds awarded under this
section as a match for nonstate funds, subject to paragraph (a).

(c) Appropriations made to this program do not cancel and are available until expended.

Subd. 4.

Report.

An alternative teacher preparation program receiving a grant under
this section must submit a report to the commissioner and the Board of Teaching on the
grantee's ability to fill teacher shortage areas and positively impact student achievement
where data are available and do not identify individual teachers. A grant recipient must
submit the report required under this subdivision by January 31, 2018, and each
even-numbered year thereafter. The report must include disaggregated data regarding:

(1) the racial and ethnic diversity of teachers and teacher candidates licensed through
the program; and

(2) program participant placement.

EFFECTIVE DATE.

This section is effective for revenue in fiscal year 2018 and later.

Sec. 42.

Minnesota Statutes 2016, section 136A.1791, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) The terms used in this section have the meanings given
them in this subdivision.

(b) "Qualified educational loan" means a government, commercial, or foundation loan
for actual costs paid for tuition and reasonable educational and living expenses related to a
teacher's preparation or further education.

(c) "School district" means an independent school district, special school district,
intermediate district, education district, special education cooperative, service cooperative,
a cooperative center for vocational education, or a charter school located in Minnesota.

(d) "Teacher" means an individual holding a teaching license issued by the licensing
division in the Department of Education on behalf of the Board of Teaching who is employed
by a school district to provide classroom instruction in a teacher shortage area.

(e) "Teacher shortage area" means:

(1) the licensure fields and economic development regions reported by the commissioner
of education as experiencing a teacher shortage.; and

(2) economic development regions where there is a shortage of licensed teachers who
reflect the racial or ethnic diversity of students in the region as reported by the commissioner
of education.

(f) "Commissioner" means the commissioner of the Office of Higher Education unless
indicated otherwise.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 43.

Minnesota Statutes 2016, section 136A.1791, subdivision 2, is amended to read:


Subd. 2.

Program established; administration.

The commissioner shall establish and
administer a teacher shortage loan forgiveness program. A teacher is eligible for the program
if the teacher is teaching in a licensure field and in an economic development region with
an identified teacher shortage area under subdivision 3 and complies with the requirements
of this section.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 44.

Minnesota Statutes 2016, section 136A.1791, subdivision 9, is amended to read:


Subd. 9.

Annual reporting.

By February 1 of each year, the commissioner must report
to the chairs of the K-12 kindergarten through grade 12 and higher education committees
of the legislature on the number of individuals who received loan forgiveness under this
section, the race or ethnicity of the teachers participating in the program, the licensure areas
and economic development regions in which the teachers taught, the average amount paid
to a teacher participating in the program, and other summary data identified by the
commissioner as outcome indicators.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 45.

Laws 2016, chapter 189, article 25, section 58, is amended to read:


Sec. 58. NORTHWEST REGIONAL PARTNERSHIP STATEWIDE
CONCURRENT ENROLLMENT TEACHER TRAINING PROGRAM.

Subdivision 1.

Definition.

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

(b) "Northwest Regional Partnership" means a voluntary association of the Lakes Country
Service Cooperative, the Northwest Service Cooperative, and Minnesota State
University-Moorhead that works together to provide coordinated higher learning opportunities
for teachers.

(c) "State Partnership" means a voluntary association of the Northwest Regional
Partnership and the Metropolitan Educational Cooperative Service Unit.

(d) "Eligible postsecondary institution" means a public or private postsecondary institution
that awards graduate credits.

(e) "Eligible teacher" means a licensed teacher of secondary school courses for
postsecondary credit.

Subd. 2.

Establishment.

(a) Lakes Country Service Cooperative, in consultation with
the Northwest Service Cooperative, may develop a continuing education program to allow
eligible teachers to attain the requisite graduate credits necessary to be qualified to teach
secondary school courses for postsecondary credit.

(b) If established, the State Partnership must contract with one or more eligible
postsecondary institutions to establish a continuing education credit program to allow eligible
teachers to attain sufficient graduate credits to qualify to teach secondary school courses
for postsecondary credit. Members of the State Partnership must work to eliminate duplication
of service and develop the continuing education credit program efficiently and
cost-effectively.

Subd. 3.

Curriculum development.

Minnesota State University-Moorhead may develop
The continuing education program must use flexible delivery models, such as
an online
education curriculum to, that allow eligible secondary school teachers to attain graduate
credit at a reduced credit rate. Information about the curriculum, including course length
and course requirements, must be posted on the Web site of the eligible institution offering
the course at least two weeks before eligible teachers are required to register for courses in
the continuing education program.

Subd. 4.

Funding for course development; scholarships; stipends.

(a) Lakes Country
Service Cooperative, in consultation with the other members of the Northwest Regional
Partnership, shall:

(1) provide funding for course development for up to 18 credits in applicable
postsecondary subject areas;

(2) provide scholarships for eligible teachers to enroll in the continuing education
program; and

(3) develop criteria for awarding educator stipends on a per-credit basis to incentivize
participation in the continuing education program.

(b) If established, the State Partnership must:

(1) provide funding for course development for up to 18 credits in applicable
postsecondary subject areas;

(2) provide scholarships for eligible teachers to enroll in the continuing education
program; and

(3) develop criteria for awarding educator stipends on a per-credit basis to incentivize
participation in the continuing education program.

Subd. 5.

Participant eligibility.

Participation in the continuing education program is
reserved for teachers of secondary school courses for postsecondary credit. Priority must
be given to teachers employed by a school district that is a member of the Lakes Country
Service Cooperative or Northwest Service Cooperative. Teachers employed by a school
district that is not a member of the Lakes Country Service Cooperative or Northwest Service
Cooperative may participate in the continuing education program as space allows. A teacher
participating in this program is ineligible to participate in other concurrent enrollment teacher
training grant programs.

Subd. 6.

Private funding.

The partnership partnerships may receive private resources
to supplement the available public money. All money received in fiscal year 2017 shall be
administered by the Lakes Country Service Cooperative. All money received in fiscal year
2018 and later shall be administered by the State Partnership.

Subd. 7.

Report required.

(a) The Northwest Regional Partnership must submit an
annual
a report by January 15 of each year, 2018, on the progress of its activities to the
legislature, commissioner of education, and Board of Trustees of the Minnesota State
Colleges and Universities. The annual report shall contain a financial report for the preceding
year. The first report is due no later than January 15, 2018.

(b) If established, the State Partnership must submit an annual joint report to the
legislature and the Office of Higher Education by January 15 of each year on the progress
of its activities. The report must include the number of teachers participating in the program,
the geographic location of the teachers, the number of credits earned, and the subject areas
of the courses in which participants earned credit. The report must include a financial report
for the preceding year.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 46.

Laws 2016, chapter 189, article 25, section 62, subdivision 7, is amended to read:


Subd. 7.

Education Innovation Partners Cooperative Center.

(a) For a matching
grant to Education Innovation Partners Cooperative Center, No. 6091-50, to provide
research-based professional development services, on-site training, and leadership coaching
to teachers and other school staff:

$
500,000
90,000
.....
2017
$
410,000
.....
2018

(b) $410,000 of the $500,000 appropriation in Laws 2016, chapter 189, article 25, section
62, subdivision 7, is canceled to the state general fund on June 30, 2017.

(c) A grant under this subdivision must be matched with money or in-kind contributions
from nonstate sources. This is a onetime appropriation. This appropriation is available until
June 30, 2019.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 47.

Laws 2016, chapter 189, article 25, section 62, subdivision 11, is amended to
read:


Subd. 11.

Student teachers in shortage areas.

For transfer to the commissioner of the
Office of Higher Education for the purpose of providing grants to student teachers in shortage
areas under Minnesota Statutes, section 136A.1275:

$
2,800,000
.....
2017

Of this amount, up to two percent is for administration of the student teacher grant
program in expectation that the Office of Higher Education will begin to disburse grants
no later than September 1, 2017.
This is a onetime appropriation. This appropriation is
available until June 30, 2019.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 48. AGRICULTURAL EDUCATOR GRANTS.

Subdivision 1.

Grant program established.

A grant program is established to support
school districts in paying agricultural education teachers for work over the summer with
high school students in extended programs.

Subd. 2.

Application.

The commissioner of education shall develop the form and method
for applying for the grants. The commissioner shall develop criteria for determining the
allocation of the grants, including appropriate goals for the use of the grants.

Subd. 3.

Grant awards.

Grant funding under this section must be matched by funding
from the school district for the agricultural education teacher's summer employment. Grant
funding for each teacher is limited to the one-half share of 40 working days.

Subd. 4.

Reports.

School districts that receive grant funds shall report to the
commissioner of education no later than December 31 of each year regarding the number
of teachers funded by the grant program and the outcomes compared to the goals established
in the grant application. The Department of Education shall develop the criteria necessary
for the reports.

Sec. 49. INNOVATION RESEARCH ZONES PILOT PROGRAM.

Subdivision 1.

Establishment; requirements for participation; research zone plans.

(a) The innovation research zone pilot program is established to improve student and school
outcomes consistent with the world's best workforce requirements under Minnesota Statutes,
section 120B.11. Innovation zone partnerships allow school districts and charter schools to
research and implement innovative education programming models designed to better
prepare students for the world of the 21st century.

(b) One or more school districts or charter schools may join together to form an innovation
zone partnership. The partnership may include other nonschool partners, including
postsecondary institutions, other units of local government, nonprofit organizations, and
for-profit organizations. An innovation zone plan must be collaboratively developed in
concert with the school's instructional staff.

(c) An innovation research zone partnership must research and implement innovative
education programs and models that are based on proposed hypotheses. An innovation zone
plan may include an emerging practice not yet supported by peer-reviewed research.
Examples of innovation zone research may include, but are not limited to:

(1) personalized learning, allowing students to excel at their own pace and according to
their interests, aspirations, and unique needs;

(2) the use of competency outcomes rather than seat time and course completion to fulfill
standards, credits, and other graduation requirements;

(3) multidisciplinary, real-world, inquiry-based, and student-directed models designed
to make learning more engaging and relevant, including documenting and validating learning
that takes place beyond the school day and school walls;

(4) models of instruction designed to close the achievement gap, including new models
for age three to grade 3 models, English as a second language models, early identification
and prevention of mental health issues, and others;

(5) new partnerships between secondary schools and postsecondary institutions,
employers, or career training institutions enabling students to complete industry certifications,
postsecondary education credits, and other credentials;

(6) new methods of collaborative leadership including the expansion of schools where
teachers have larger professional roles;

(7) new ways to enhance parental and community involvement in learning;

(8) new models of professional development for educators, including embedded
professional development; or

(9) new models in other areas such as whole child instruction, social-emotional skill
development, technology-based or blended learning, parent and community involvement,
professional development and mentoring, and models that increase the return on investment.

(d) An innovation zone plan submitted to the commissioner must describe:

(1) how the plan will improve student and school outcomes consistent with the world's
best workforce requirements under Minnesota Statutes, section 120B.11;

(2) the role of each partner in the zone;

(3) the research methodology used for each proposed action in the plan;

(4) the exemptions from statutes and rules in subdivision 2 that the research zone
partnership will use;

(5) a description of how teachers and other educational staff from the affected school
sites will be included in the planning and implementation process;

(6) a detailed description of expected outcomes and graduation standards;

(7) a timeline for implementing the plan and assessing the outcomes; and

(8) how results of the plan will be disseminated.

The governing board for each partner must approve the innovation zone plan.

(e) Upon unanimous approval of the initial innovation zone partners and approval of the
commissioner of education, the innovation zone partnership may extend membership to
other partners. A new partner's membership is effective 30 days after the innovation zone
partnership notifies the commissioner of the proposed change in membership unless the
commissioner disapproves the new partner's membership.

(f) Notwithstanding any other law to the contrary, a school district or charter school
participating in an innovation zone partnership under this section continues to receive all
revenue and maintains its taxation authority in the same manner as before its participation
in the innovation zone partnership. The innovation zone school district and charter school
partners remain organized and governed by their respective school boards with general
powers under Minnesota Statutes, chapter 123B or 124E, and remain subject to any
employment agreements under Minnesota Statutes, chapters 122A and 179A. School district
and charter school employees participating in an innovation zone partnership remain
employees of their respective school district or charter school.

(g) An innovation zone partnership may submit its plan at any time to the commissioner
in the form and manner specified by the commissioner. The commissioner must approve
or reject the plan after reviewing the recommendation of the Innovation Research Zone
Advisory Panel. An initial innovation zone plan that has been rejected by the commissioner
may be resubmitted to the commissioner after the innovation zone partnership has modified
the plan to meet each individually identified objection.

Subd. 2.

Exemptions from laws and rules.

(a) Notwithstanding any other law to the
contrary, an innovation zone partner with an approved plan is exempt from each of the
following state education laws and rules specifically identified in its plan:

(1) any law or rule from which a district-created, site-governed school under Minnesota
Statutes, section 123B.045, is exempt;

(2) any statute or rule from which the commissioner has exempted another district or
charter school, as identified in the list published on the Department of Education's Web site
under subdivision 4, paragraph (b);

(3) online learning program approval under Minnesota Statutes, section 124D.095,
subdivision 7, if the school district or charter school offers a course or program online
combined with direct access to a teacher for a portion of that course or program;

(4) restrictions on extended time revenue under Minnesota Statutes, section 126C.10,
subdivision 2a, for a student who meets the criteria of Minnesota Statutes, section 124D.68,
subdivision 2; and

(5) any required hours of instruction in any class or subject area for a student who is
meeting all competencies consistent with the graduation standards described in the innovation
zone plan.

(b) The exemptions under this subdivision must not be construed as exempting an
innovation zone partner from the Minnesota Comprehensive Assessments.

Subd. 3.

Innovation Research Zone Advisory Panel.

(a) The commissioner must
establish and convene an Innovation Research Zone Advisory Panel to review all innovation
zone plans submitted for approval.

(b) The panel must be composed of nine members. One member must be appointed by
each of the following organizations: Educators for Excellence, Education Minnesota,
Minnesota Association of Secondary School Principals, Minnesota Elementary School
Principals' Association, Minnesota Association of School Administrators, Minnesota School
Boards Association, Minnesota Association of Charter Schools, and the Office of Higher
Education. The commissioner must appoint one member with expertise in evaluation and
research.

Subd. 4.

Commissioner approval.

(a) Upon recommendation of the Innovation Research
Zone Advisory Panel, the commissioner may approve up to three innovation zone plans in
the seven-county metropolitan area and up to three in greater Minnesota. If an innovation
zone partnership fails to implement its innovation zone plan as described in its application
and according to the stated timeline, upon recommendation of the Innovation Research
Zone Advisory Panel, the commissioner must alert the partnership members and provide
the opportunity to remediate. If implementation continues to fail, the commissioner must
suspend or terminate the innovation zone plan.

(b) The commissioner must publish a list of the exemptions the commissioner has granted
to a district or charter school on the Department of Education's Web site by July 1, 2017.
The list must be updated annually.

Subd. 5.

Project evaluation, dissemination, and report to legislature.

Each research
zone partnership must submit project data to the commissioner in the form and manner
provided for in the approved application. At least once every two years, the commissioner
must analyze each innovation zone's progress in realizing the objectives of the innovation
zone partnership's plan. The commissioner must summarize and categorize innovation zone
plans and submit a report to the legislative committees having jurisdiction over education
by February 1 of each odd-numbered year in accordance with Minnesota Statutes, section
3.195.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 50. COMMISSIONER OF EDUCATION MUST SUBMIT ESSA PLAN TO
LEGISLATURE.

Subdivision 1.

ESSA plan.

The commissioner of education must submit the state plan
developed pursuant to the Elementary and Secondary Education Act of 1965, as amended
by the Every Student Succeeds Act, United States Code, title 20, section 6311, to the
education policy and finance committees of the legislature at least 30 days before submitting
the plan to the United States Department of Education.

Subd. 2.

Alignment with World's Best Workforce measures.

The state plan must be
consistent and aligned, to the extent practicable, with the performance accountability
measures required under Minnesota Statutes, section 120B.11, subdivision 1a, to create a
single accountability system for all public schools.

Subd. 3.

Indicators.

(a) The school quality or student success accountability indicator
required by ESSA must be an academic indicator.

(b) The state plan may use one of the following indicators for elementary and secondary
schools:

(1) reading and math growth for students performing in the bottom quartile, as measured
on the state accountability assessments, and using growth to proficiency standards;

(2) third grade reading proficiency as measured on the state accountability assessments;

(3) eighth grade mathematics proficiency as measured on the state accountability
assessments; or

(4) science proficiency as measured on the state accountability assessments.

(c) The state plan should use the tenth grade reading Minnesota Comprehensive
Assessment and eleventh grade mathematics Minnesota Comprehensive Assessment to
measure career and college readiness. To the extent practicable, the state plan should also
use the following information to measure college and career readiness:

(1) student success or attainment on advanced placement or international baccalaureate
examinations;

(2) credits under Minnesota Statutes, section 124D.09; or

(3) industry-recognized certifications.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 51. EDUCATIONAL STABILITY FOR STUDENTS IN FOSTER CARE.

Subdivision 1.

Establishment.

A pilot project is established to provide incentives for
school districts and county governments to develop partnership agreements and implement
transportation plans to help keep foster care students enrolled in their school of origin when
a student is placed in a foster care setting outside the school of origin's boundaries.

Subd. 2.

Qualifying plans.

A school district must submit an application in the form and
manner prescribed by the commissioner of education to participate in the program. To
qualify for participation, one or more school districts and the local child welfare agency
must have a written interagency agreement that describes the local plan for ensuring
educational stability for foster care students. The parties to the agreement must seek title
IV-E reimbursement for eligible students and eligible transportation costs. The plan must
describe:

(1) how transportation services will be arranged and provided; and

(2) how local transportation costs will be paid for if pilot project funds are insufficient
to cover all costs.

Subd. 3.

Pilot project; funding.

The commissioner must reimburse partnerships with
qualifying plans under subdivision 2 at the end of the school year based on allowable
expenditures and reimbursements and compliance with other reporting requirements. If the
available appropriation is insufficient to fully fund all qualifying plans, the commissioner
may prorate the available funds statewide among all school districts with qualifying plans.

Subd. 4.

Report.

By February 1, 2018, the commissioner of education shall report on
the pilot project to the legislative committees with jurisdiction over early childhood through
grade 12 education. The report must include, at a minimum, the number of local agreements
entered into for this project along with the number of school districts and counties
participating in the agreements, baseline data showing the number of foster care students
who were able to remain in their school of origin and the changes in the ratio over the time
of the pilot project, data on expenditures for school stability transportation and federal
reimbursements received for the pilot project with a midyear projection of end-of-year costs
and revenues, and projected costs for statewide implementation of the program.

Sec. 52. FEDERAL EVERY STUDENT SUCCEEDS ACT FUNDING FOR
SCIENCE, TECHNOLOGY, ENGINEERING, AND MATH (STEM) ACTIVITIES.

School districts are encouraged to use the funding provided for activities to support the
effective use of technology under Title IV, Part A, of the federal Every Student Succeeds
Act for:

(1) mentor-led, hands-on STEM education and engagement with materials that support
inquiry-based and active learning;

(2) student participation in STEM competitions, including robotics competitions; and

(3) mentor-led, classroom-based, after-school activities with informal STEM instruction
and education.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 53. RURAL CAREER AND TECHNICAL EDUCATION CONSORTIUM
GRANTS.

Subdivision 1.

Definition.

"Rural career and technical education (CTE) consortium"
means a voluntary collaboration of a service cooperative and other regional public and
private partners, including school districts and higher education institutions, that work
together to provide career and technical education opportunities within the service
cooperative's multicounty service area.

Subd. 2.

Establishment.

(a) A rural CTE consortium shall:

(1) focus on the development of courses and programs that encourage collaboration
between two or more school districts;

(2) develop new career and technical programs that focus on the industry sectors that
fuel the rural regional economy;

(3) facilitate the development of highly trained and knowledgeable students who are
equipped with technical and workplace skills needed by regional employers;

(4) improve access to career and technical education programs for students who attend
sparsely populated rural school districts by developing public and private partnerships with
business and industry leaders and by increasing coordination of high school and
postsecondary program options;

(5) increase family and student awareness of the availability and benefit of career and
technical education courses and training opportunities; and

(6) provide capital start-up costs for items including but not limited to a mobile welding
lab, medical equipment and lab, and industrial kitchen equipment.

(b) In addition to the requirements in paragraph (a), a rural CTE consortium may:

(1) address the teacher shortage crisis in career and technical education through incentive
funding and training programs; and

(2) provide transportation reimbursement grants to provide equitable opportunities
throughout the region for students to participate in career and technical education.

Subd. 3.

Rural career and technical education advisory committee.

In order to be
eligible for a grant under this section, a service cooperative must establish a rural career
and technical education advisory committee to advise the cooperative on the administration
of the rural CTE consortium.

Subd. 4.

Private funding.

A rural CTE consortium may receive other sources of funds
to supplement state funding. All funds received shall be administered by the service
cooperative that is a member of the consortium.

Subd. 5.

Reporting requirements.

A rural CTE consortium must submit an annual
report on the progress of its activities to the commissioner of education and the legislative
committees with jurisdiction over secondary and postsecondary education. The annual report
must contain a financial report for the preceding fiscal year. The first report is due no later
than January 15, 2019.

Subd. 6.

Grant recipients.

For fiscal years 2018 and 2019, the commissioner shall
award a two-year grant to the consortium that is a collaboration of the Southwest/West
Central Service Cooperative (SWWC), Southwest Minnesota State University, Minnesota
West Community and Technical College, Ridgewater College, and other regional public
and private partners. For fiscal years 2020 and 2021, the commissioner shall award a two-year
grant to an applicant consortium that includes the South Central Service Cooperative or
Southeast Service Cooperative and a two-year grant to an applicant consortium that includes
the Northwest Service Cooperative or Northeast Service Cooperative.

Sec. 54. INTERMEDIATE SCHOOL DISTRICT MENTAL HEALTH INNOVATION
GRANT PROGRAM; APPROPRIATION.

(a) $2,450,000 in fiscal year 2018 and $2,450,000 in fiscal year 2019 are appropriated
from the general fund to the commissioner of human services for a grant program to fund
innovative projects to improve mental health outcomes for youth attending a qualifying
school unit.

(b) A "qualifying school unit" means an intermediate district organized under Minnesota
Statutes, section 136D.01, or a service cooperative organized under Minnesota Statutes,
section 123A.21, subdivision 1, paragraph (a), clause (2), that provides instruction to students
in a setting of federal instructional level four or higher. Grants under paragraph (a) must be
awarded to eligible applicants such that the services are proportionately provided among
qualifying school units. The commissioner shall calculate the share of the appropriation to
be used in each qualifying school unit by dividing the qualifying school unit's average daily
membership in a setting of federal instructional level 4 or higher for fiscal year 2016 by the
total average daily membership in a setting of federal instructional level 4 or higher for the
same year for all qualifying school units.

(c) An eligible applicant is an entity that has demonstrated capacity to serve the youth
identified in paragraph (a) and that is:

(1) certified under Minnesota Rules, parts 9520.0750 to 9520.0870;

(2) a community mental health center under Minnesota Statutes, section 256B.0625,
subdivision 5;

(3) an Indian health service facility or facility owned and operated by a tribe or tribal
organization operating under United States Code, title 25, section 5321; or

(4) a provider of children's therapeutic services and supports as defined in Minnesota
Statutes, section 256B.0943.

(d) An eligible applicant must employ or contract with at least two licensed mental health
professionals as defined in Minnesota Statutes, section 245.4871, subdivision 27, clauses
(1) to (6), who have formal training in evidence-based practices.

(e) A qualifying school unit must submit an application to the commissioner in the form
and manner specified by the commissioner. The commissioner may approve an application
that describes models for innovative projects to serve the needs of the schools and students.
The commissioner may provide technical assistance to the qualifying school unit. The
commissioner shall then solicit grant project proposals and award grant funding to the
eligible applicants whose project proposals best meet the requirements of this section and
most closely adhere to the models created by the intermediate districts and service
cooperatives.

(f) To receive grant funding, an eligible applicant must obtain a letter of support for the
applicant's grant project proposal from each qualifying school unit the eligible applicant is
proposing to serve. An eligible applicant must also demonstrate the following:

(1) the ability to seek third-party reimbursement for services;

(2) the ability to report data and outcomes as required by the commissioner; and

(3) the existence of partnerships with counties, tribes, substance use disorder providers,
and mental health service providers, including providers of mobile crisis services.

(g) Grantees shall obtain all available third-party reimbursement sources as a condition
of receiving grant funds. For purposes of this grant program, a third-party reimbursement
source does not include a public school as defined in Minnesota Statutes, section 120A.20,
subdivision 1.

(h) The base budget for this program is $0. This appropriation is available until June 30,
2020.

Sec. 55. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

Achievement and integration aid.

For achievement and integration aid under
Minnesota Statutes, section 124D.862:

$
71,114,000
.....
2018
$
73,117,000
.....
2019

The 2018 appropriation includes $6,725,000 for 2017 and $64,389,000 for 2018.

The 2019 appropriation includes $7,154,000 for 2018 and $65,963,000 for 2019.

Subd. 3.

Literacy incentive aid.

For literacy incentive aid under Minnesota Statutes,
section 124D.98:

$
47,264,000
.....
2018
$
47,763,000
.....
2019

The 2018 appropriation includes $4,597,000 for 2017 and $42,667,000 for 2018.

The 2019 appropriation includes $4,740,000 for 2018 and $43,023,000 for 2019.

Subd. 4.

Interdistrict desegregation or integration transportation grants.

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

$
13,337,000
.....
2018
$
14,075,000
.....
2019

Subd. 5.

Tribal contract schools.

For tribal contract school aid under Minnesota Statutes,
section 124D.83:

$
1,983,000
.....
2018
$
1,930,000
.....
2019

The 2018 appropriation includes $323,000 for 2017 and $1,660,000 for 2018.

The 2019 appropriation includes $184,000 for 2018 and $1,746,000 for 2019.

Subd. 6.

American Indian education aid.

For American Indian education aid under
Minnesota Statutes, section 124D.81, subdivision 2a:

$
9,244,000
.....
2018
$
9,464,000
.....
2019

The 2018 appropriation includes $886,000 for 2017 and $8,358,000 for 2018.

The 2019 appropriation includes $928,000 for 2018 and $8,536,000 for 2019.

Subd. 7.

Early childhood literacy programs.

(a) For early childhood literacy programs
under Minnesota Statutes, section 119A.50, subdivision 3:

$
6,125,000
.....
2018
$
6,125,000
.....
2019

(b) Up to $6,125,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota reading corps program established by
ServeMinnesota, including costs associated with training and teaching early literacy skills
to children ages three to grade 3 and evaluating the impact of the program under Minnesota
Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.

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

(d) The base for fiscal year 2020 is $7,125,000.

Subd. 8.

Concurrent enrollment program.

For concurrent enrollment programs under
Minnesota Statutes, section 124D.091:

$
4,000,000
.....
2018
$
4,000,000
.....
2019

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

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

Subd. 9.

Expanded concurrent enrollment grants.

For grants to institutions offering
"Introduction to Teaching" or "Introduction to Education" college in the schools courses
under Minnesota Statutes, section 124D.09, subdivision 10, paragraph (b):

$
375,000
.....
2018
$
375,000
.....
2019

The department may retain up to five percent of the appropriation amount to monitor
and administer the grant program.

Subd. 10.

ServeMinnesota program.

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

$
900,000
.....
2018
$
900,000
.....
2019

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

Subd. 11.

Student organizations.

For student organizations:

$
725,000
.....
2018
$
725,000
.....
2019

(a) $46,000 each year is for student organizations serving health occupations (HOSA).

(b) $100,000 each year is for student organizations serving trade and industry occupations
(Skills USA, secondary and postsecondary).

(c) $95,000 each year is for student organizations serving business occupations (BPA,
secondary and postsecondary).

(d) $193,000 each year is for student organizations serving agriculture occupations (FFA,
PAS).

(e) $142,000 in fiscal years 2018 and 2019 is for student organizations serving family
and consumer science occupations (FCCLA). Notwithstanding Minnesota Rules, part
3505.1000, subparts 28 and 31, the student organizations serving FCCLA shall continue to
serve students younger than grade 9. Beginning in fiscal year 2020, the amount is $185,000.

(f) $109,000 each year is for student organizations serving marketing occupations (DECA
and DECA collegiate).

(g) $40,000 each year is for the Minnesota Foundation for Student Organizations.

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

(i) The base for fiscal year 2020 and later is $768,000.

Subd. 12.

Museums and education centers.

For grants to museums and education
centers:

$
460,000
.....
2018
$
460,000
.....
2019

(a) $319,000 each year is for the Minnesota Children's Museum. Of the amount in this
paragraph, $50,000 in each year is for the Minnesota Children's Museum, Rochester.

(b) $50,000 each year is for the Duluth Children's Museum.

(c) $41,000 each year is for the Minnesota Academy of Science.

(d) $50,000 each year is for the Headwaters Science Center.

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

Subd. 13.

Minnesota Center for the Book programming.

For grants to the entity
designated by the Library of Congress as the Minnesota Center for the Book to provide
statewide programming related to the Minnesota Book Awards and for additional
programming throughout the state related to the Center for the Book designation:

$
50,000
.....
2018
$
50,000
.....
2019

The base for fiscal year 2020 is $0.

Subd. 14.

Singing-based pilot program to improve student reading.

(a) For a grant
to pilot a research-supported, computer-based educational program that uses singing to
improve the reading ability of students in grades 2 through 5:

$
500,000
.....
2018
$
0
.....
2019

(b) The commissioner of education shall award a grant to the Rock 'n' Read Project to
implement a research-supported, computer-based educational program that uses singing to
improve the reading ability of students in grades 2 through 5. The grantee shall be responsible
for selecting participating school sites; providing any required hardware and software,
including software licenses, for the duration of the grant period; providing technical support,
training, and staff to install required project hardware and software; providing on-site
professional development and instructional monitoring and support for school staff and
students; administering preintervention and postintervention reading assessments; evaluating
the impact of the intervention; and other project management services as required. To the
extent practicable, the grantee must select participating schools in urban, suburban, and
greater Minnesota, and give priority to schools in which a high proportion of students do
not read proficiently at grade level and are eligible for free or reduced-price lunch.

(c) By February 15, 2019, the grantee must submit a report detailing expenditures and
outcomes of the grant to the commissioner of education and the chairs and ranking minority
members of the legislative committees with primary jurisdiction over kindergarten through
grade 12 education policy and finance.

(d) This is a onetime appropriation.

Subd. 15.

Starbase MN.

(a) For a grant to Starbase MN for a rigorous science,
technology, engineering, and math (STEM) program providing students in grades 4 through
6 with a multisensory learning experience and a hands-on curriculum in an aerospace
environment using state-of-the-art technology:

$
1,398,000
.....
2018
$
0
.....
2019

(b) Any balance in the first year does not cancel but is available in the second year. The
base for fiscal year 2020 is $500,000.

(c) All unspent funds, estimated at $898,000 from the Starbase MN appropriation under
Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 17, are canceled
the day following final enactment.

Subd. 16.

Recovery program grants.

For recovery program grants under Minnesota
Statutes, section 124D.695:

$
750,000
.....
2018
$
750,000
.....
2019

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

Subd. 17.

Minnesota math corps program.

For the Minnesota math corps program
under Minnesota Statutes, section 124D.42, subdivision 9:

$
500,000
.....
2018
$
500,000
.....
2019

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

Subd. 18.

Civic education grants.

For grants to the Minnesota Civic Education Coalition,
Minnesota Civic Youth, Learning Law and Democracy Foundation, and YMCA Youth in
Government to provide civic education programs for Minnesota youth age 18 and younger.
Civic education is the study of constitutional principles and the democratic foundation of
our national, state, and local institutions, and the study of political processes and structures
of government, grounded in the understanding of constitutional government under the rule
of law.

$
125,000
.....
2018
$
125,000
.....
2019

Any balance in the first year does not cancel but is available in the second year. The
budget base for this program is $0.

Subd. 19.

Minnesota Principals Academy.

(a) For grants to the University of Minnesota
College of Education and Human Development for the operation of the Minnesota Principals
Academy:

$
200,000
.....
2018
$
200,000
.....
2019

(b) Of these amounts, $50,000 must be used to pay the costs of attendance for principals
from schools designated as priority schools by the commissioner of education. To the extent
funds are available, the Department of Education must use up to $200,000 of federal Title
II funds to support additional participation in the Principals Academy by principals from
priority schools.

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

Subd. 20.

Educational stability for students living in foster care.

For a pilot project
to promote educational stability for students living in foster care:

$
1,000,000
.....
2018

Up to five percent of the appropriation may be used for state and local administrative
costs such as reporting, technical support, and establishing a Title IV-E reimbursement
claiming process. This is a onetime appropriation. This appropriation is available until June
30, 2019.

Subd. 21.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124E.22:

$
73,204,000
.....
2018
$
78,648,000
.....
2019

The 2018 appropriation includes $6,850,000 for 2017 and $66,354,000 for 2018.

The 2019 appropriation includes $7,372,000 for 2018 and $74,276,000 for 2019.

Subd. 22.

Race 2 Reduce.

(a) For grants to support expanded Race 2 Reduce water
conservation programming in Minnesota schools:

$
307,000
.....
2018
$
0
.....
2019

(b) $143,000 is for H2O for Life; $98,000 is for Independent School District No. 624,
White Bear Lake; and $66,000 is for Independent School District No. 832, Mahtomedi.

(c) The appropriation is available until June 30, 2019. The base for fiscal year 2020 is
$0.

Subd. 23.

Paraprofessional pathway to teacher licensure.

(a) For grants to school
districts for Grow Your Own new teacher programs:

$
1,500,000
.....
2018
$
1,500,000
.....
2019

(b) The grants are for school districts with more than 30 percent minority students for
a Board of Teaching-approved nonconventional teacher residency pilot program. The
program must provide tuition scholarships or stipends to enable school district employees
or community members affiliated with a school district who seek an education license to
participate in a nonconventional teacher preparation program. School districts that receive
funds under this subdivision are strongly encouraged to recruit candidates of color and
American Indian candidates to participate in the Grow Your Own new teacher programs.
Districts or schools providing financial support may require a commitment as determined
by the district to teach in the district or school for a reasonable amount of time that does
not exceed five years.

(c) Programs must annually report to the commissioner by the date determined by the
commissioner on their activities under this section, including the number of participants,
the percentage of participants who are of color or who are American Indian, and an
assessment of program effectiveness, including participant feedback, areas for improvement,
the percentage of participants continuing to pursue teacher licensure, and the number of
participants hired in the school or district as teachers after completing preparation programs.

(d) The department may retain up to three percent of the appropriation amount to monitor
and administer the grant program.

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

Subd. 24.

Statewide testing and reporting system.

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

$
10,892,000
.....
2018
$
10,892,000
.....
2019

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

Subd. 25.

College entrance examination reimbursement.

To reimburse districts for
students who qualify under Minnesota Statutes, section 120B.30, subdivision 1, paragraph
(e), for payment of their college entrance examination fee:

$
1,511,000
.....
2018
$
1,511,000
.....
2019

The commissioner must reimburse school districts for their costs of one-time payments
to free or reduced-price meal eligible students who take the ACT or SAT test under
Minnesota Statutes, section 120B.30, subdivision 1.

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

Subd. 26.

Alternative teacher compensation aid.

For alternative teacher compensation
aid under Minnesota Statutes, section 122A.415, subdivision 4:

$
89,863,000
.....
2018
$
89,623,000
.....
2019

The 2018 appropriation includes $8,917,000 for 2017 and $80,946,000 for 2018.

The 2019 appropriation includes $8,993,000 for 2018 and $80,630,000 for 2019.

Subd. 27.

Collaborative urban and greater Minnesota educators of color program
grants.

(a) For collaborative urban and greater Minnesota educators of color program grants:

$
1,000,000
.....
2018
$
1,000,000
.....
2019

(b) Grants shall be awarded in equal amounts: $195,000 each year is for the Southeast
Asian Teacher program at Concordia University, St. Paul; $195,000 each year is for the
Collaborative Urban Educator program at the University of St. Thomas; $195,000 each year
is for the Center for Excellence in Urban Teaching at Hamline University; and $195,000
each year is for the East Africa Student to Teacher program at Augsburg College.

(c) By January 15 of each year, each institution shall prepare for the legislature a detailed
report regarding the funds used to recruit, retain, and induct teacher candidates who are of
color or who are American Indian. The report must include the total number of teacher
candidates of color, disaggregated by race or ethnic group, who are recruited to the institution,
are newly admitted to the licensure program, are enrolled in the licensure program, have
completed student teaching, have graduated, and are licensed and newly employed as
Minnesota teachers in their licensure field. The total number of teacher candidates who are
of color or who are American Indian at each stage from recruitment to licensed teaching
must be reported as a percentage of total candidates seeking the same licensure at the
institution. The report must include the graduation rate for each cohort of teacher candidates,
the placement rate for each graduating cohort of teacher candidates, and the retention rate
for each graduating cohort of teacher candidates, among other program outcomes.

(d) The commissioner must establish a competitive grant process to award $220,000
each year to Board of Teaching-approved teacher preparation programs, including alternative
teacher preparation programs. The competitive process must award grants based on program
benchmarks, including licensure rates, participation rates, and on-time graduation rates.

(e) For fiscal year 2020 and later, the commissioner must award all collaborative urban
educator grants through the competitive grant program.

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

Subd. 28.

Examination fees; teacher training and support programs.

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

$
4,500,000
.....
2018
$
4,500,000
.....
2019

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

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

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

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

Subd. 29.

Grants to increase science, technology, engineering, and math course
offerings.

For grants to schools to encourage low-income and other underserved students
to participate in advanced placement and international baccalaureate programs according
to Minnesota Statutes, section 120B.132:

$
250,000
.....
2018
$
250,000
.....
2019

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

Subd. 30.

Agricultural educator grants.

For agricultural educator grants under section
48:

$
250,000
.....
2018
$
250,000
.....
2019

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

Subd. 31.

American Indian teacher preparation grants.

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

$
460,000
.....
2018
$
460,000
.....
2019

Subd. 32.

African American Registry.

(a) For grants to the African American Registry
for the Teacher's Forum:

$
100,000
.....
2018
$
100,000
.....
2019

(b) The African American Registry must use the grant funds to establish partnerships
with Metropolitan State University and the University of St. Thomas to improve the cultural
competency of candidates seeking a first teaching license. By January 15 of each year, the
African American Registry shall submit to the legislature a detailed report regarding the
funds used. The report must include the number of teachers prepared. The base in fiscal
year 2020 is $0.

Subd. 33.

Rural career and technical education consortium.

(a) For rural career and
technical education consortium grants:

$
1,500,000
.....
2018
$
1,500,000
.....
2019

This appropriation is available until June 30, 2022. If the appropriation in the first year
is insufficient, the 2019 appropriation is available.

(b) The base in fiscal year 2020 is $3,000,000.

Subd. 34.

Sanneh Foundation.

(a) For a grant to the Sanneh Foundation to provide
all-day, in-school, and before- and after-school academic and behavioral interventions for
low-performing and chronically absent students with a focus on low-income students and
students of color throughout the school year and during the summer to decrease absenteeism,
encourage school engagement, and improve grades and graduation rates.

$
1,000,000
.....
2018

(b) Funds appropriated in this section must be used to establish and provide services in
schools where the Sanneh Foundation does not currently operate, and must not be used for
programs operating in schools as of June 30, 2017.

(c) This is a onetime appropriation. Any balance in the first year does not cancel but is
available in the second year.

Subd. 35.

Alternative teacher preparation grant program.

(a) For transfer to the
commissioner of the Office of Higher Education for alternative teacher preparation program
grants under Minnesota Statutes, section 136A.1276:

$
750,000
.....
2018
$
0
.....
2019

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

Subd. 36.

Teacher shortage loan forgiveness.

(a) For transfer to the commissioner of
the Office of Higher Education for the loan forgiveness program under Minnesota Statutes,
section 136A.1791:

$
500,000
.....
2018
$
0
.....
2019

(b) The commissioner may use no more than three percent of this appropriation to
administer the program under this subdivision.

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

Subd. 37.

Statewide concurrent enrollment teacher training program.

For the
statewide concurrent enrollment teacher training program under Laws 2016, chapter 189,
article 25, section 58, as amended:

$
375,000
.....
2018
$
375,000
.....
2019

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

Sec. 56. REPEALER.

Minnesota Statutes 2016, sections 122A.40, subdivision 11; and 122A.41, subdivision
14,
are repealed effective July 1, 2018.

ARTICLE 3

TEACHERS

Sec. 1.

[122A.627] POSITIVE BEHAVIORAL INTERVENTIONS AND SUPPORTS.

"Positive behavioral interventions and supports" or "PBIS" means an evidence-based
framework for preventing problem behavior, providing instruction and support for positive
and prosocial behaviors, and supporting social, emotional, and behavioral needs for all
students. Schoolwide implementation of PBIS requires training, coaching, and evaluation
for school staff to consistently implement the key components that make PBIS effective for
all students, including:

(1) establishing, defining, teaching, and practicing three to five positively stated
schoolwide behavioral expectations that are representative of the local community and
cultures;

(2) developing and implementing a consistent system used by all staff to provide positive
feedback and acknowledgment for students who display schoolwide behavioral expectations;

(3) developing and implementing a consistent and specialized support system for students
who do not display behaviors representative of schoolwide positive expectations;

(4) developing a system to support decisions based on data related to student progress,
effective implementation of behavioral practices, and screening for students requiring
additional behavior supports;

(5) using a continuum of evidence-based interventions that is integrated and aligned to
support academic and behavioral success for all students; and

(6) using a team-based approach to support effective implementation, monitor progress,
and evaluate outcomes.

Consistent with section 120B.232, subdivision 1, character education curriculum and
programs may be used to support implementation of the key components of PBIS.

ARTICLE 4

SPECIAL EDUCATION

Section 1.

Minnesota Statutes 2016, section 125A.0941, is amended to read:


125A.0941 DEFINITIONS.

(a) The following terms have the meanings given them.

(b) "Emergency" means a situation where immediate intervention is needed to protect
a child or other individual from physical injury. Emergency does not mean circumstances
such as: a child who does not respond to a task or request and instead places his or her head
on a desk or hides under a desk or table; a child who does not respond to a staff person's
request unless failing to respond would result in physical injury to the child or other
individual; or an emergency incident has already occurred and no threat of physical injury
currently exists.

(c) "Physical holding" means physical intervention intended to hold a child immobile
or limit a child's movement, where body contact is the only source of physical restraint, and
where immobilization is used to effectively gain control of a child in order to protect a child
or other individual from physical injury. The term physical holding does not mean physical
contact that:

(1) helps a child respond or complete a task;

(2) assists a child without restricting the child's movement;

(3) is needed to administer an authorized health-related service or procedure; or

(4) is needed to physically escort a child when the child does not resist or the child's
resistance is minimal.

(d) "Positive behavioral interventions and supports" means interventions and strategies
to improve the school environment and teach children the skills to behave appropriately,
including the key components under section 122A.627
.

(e) "Prone restraint" means placing a child in a face down position.

(f) "Restrictive procedures" means the use of physical holding or seclusion in an
emergency. Restrictive procedures must not be used to punish or otherwise discipline a
child.

(g) "Seclusion" means confining a child alone in a room from which egress is barred.
Egress may be barred by an adult locking or closing the door in the room or preventing the
child from leaving the room. Removing a child from an activity to a location where the
child cannot participate in or observe the activity is not seclusion.

Sec. 2.

Minnesota Statutes 2016, section 125A.11, subdivision 1, is amended to read:


Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2015 and later,
when a school district provides special instruction and services for a pupil with a disability
as defined in section 125A.02 outside the district of residence, excluding a pupil for whom
an adjustment to special education aid is calculated according to section 127A.47, subdivision
7
, paragraphs (b) to (d), special education aid paid to the resident district must be reduced
by an amount equal to (1) the actual cost of providing special instruction and services to
the pupil, including a proportionate amount for special transportation, plus (2) the amount
of general education revenue, excluding local optional revenue, plus local optional aid and
referendum equalization aid attributable to that pupil, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue,
minus (3) the amount of special education aid for children with a disability under section
125A.76 received on behalf of that child, minus (4) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day, the
amount of general education revenue and referendum equalization aid, excluding portions
attributable to district and school administration, district support services, operations and
maintenance, capital expenditures, and pupil transportation, attributable to that pupil for
the portion of time the pupil receives special instruction and services outside of the regular
classroom, calculated using the resident district's average general education revenue and
referendum equalization aid per adjusted pupil unit excluding basic skills revenue, elementary
sparsity revenue and secondary sparsity revenue and the serving district's basic skills revenue,
elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit.
Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a fiscal
agent school district, the general education revenue and referendum equalization aid
attributable to a pupil must be calculated using the resident district's average general
education revenue and referendum equalization aid excluding compensatory revenue,
elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid to
the district or cooperative providing special instruction and services for the pupil must be
increased by the amount of the reduction in the aid paid to the resident district. If the resident
district's special education aid is insufficient to make the full adjustment, the remaining
adjustment shall be made to other state aid due to the district.

(b) Notwithstanding paragraph (a), when a charter school receiving special education
aid under section 124E.21, subdivision 3, provides special instruction and services for a
pupil with a disability as defined in section 125A.02, excluding a pupil for whom an
adjustment to special education aid is calculated according to section 127A.47, subdivision
7
, paragraphs (b) to (e), special education aid paid to the resident district must be reduced
by an amount equal to that calculated under paragraph (a) as if the charter school received
aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education
aid paid to the charter school providing special instruction and services for the pupil must
not be increased by the amount of the reduction in the aid paid to the resident district.

(c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs (b)
to (d):

(1) an intermediate district or a special education cooperative may recover unreimbursed
costs of serving pupils with a disability, including building lease, debt service, and indirect
costs necessary for the general operation of the organization, by billing membership fees
and nonmember access fees to the resident district;

(2) a charter school where more than 30 percent of enrolled students receive special
education and related services, a site approved under section 125A.515, an intermediate
district, a site constructed according to Laws 1992, chapter 558, section 7, subdivision 7,
to meet the educational needs of court-placed adolescents,
or a special education cooperative
may apply to the commissioner for authority to charge the resident district an additional
amount to recover any remaining unreimbursed costs of serving pupils with a disability;

(3) the billing under clause (1) or application under clause (2) must include a description
of the costs and the calculations used to determine the unreimbursed portion to be charged
to the resident district. Amounts approved by the commissioner under clause (2) must be
included in the aid adjustments under paragraph (a), or section 127A.47, subdivision 7,
paragraphs (b) to (d), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph (b),
"general education revenue and referendum equalization aid" means the sum of the general
education revenue according to section 126C.10, subdivision 1, excluding the local optional
levy according to section 126C.10, subdivision 2e, paragraph (c), plus the referendum
equalization aid according to section 126C.17, subdivision 7.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 3.

Minnesota Statutes 2016, section 125A.21, subdivision 2, is amended to read:


Subd. 2.

Third-party reimbursement.

(a) Beginning July 1, 2000, districts shall seek
reimbursement from insurers and similar third parties for the cost of services provided by
the district whenever the services provided by the district are otherwise covered by the
child's health coverage. Districts shall request, but may not require, the child's family to
provide information about the child's health coverage when a child with a disability begins
to receive services from the district of a type that may be reimbursable, and shall request,
but may not require, updated information after that as needed.

(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
under chapter 256L who have no other health coverage, a district shall provide an initial
and annual written notice to the enrolled child's parent or legal representative of its intent
to seek reimbursement from medical assistance or MinnesotaCare for:

(1) the evaluations required as part of the individualized education program process or
individualized family service plan process; and

(2) health-related services provided by the district according to the individualized
education program or individualized family service plan
.

The initial notice must give the child's parent or legal representative the right to request a
copy of the child's education records on the health-related services that the district provided
to the child and disclosed to a third-party payer.

(c) The district shall give the parent or legal representative annual written notice of:

(1) the district's intent to seek reimbursement from medical assistance or MinnesotaCare
for evaluations required as part of the individualized education program process or
individualized family service plan process, and for health-related services provided by the
district according to the individualized education program or individualized family service
plan
;

(2) the right of the parent or legal representative to request a copy of all records
concerning individualized education program or individualized family service plan
health-related services disclosed by the district to any third party; and

(3) the right of the parent or legal representative to withdraw consent for disclosure of
a child's records at any time without consequence.

The written notice shall be provided as part of the written notice required by Code of Federal
Regulations, title 34, section 300.504 or 303.520. The district must ensure that the parent
of a child with a disability is given notice, in understandable language, of federal and state
procedural safeguards available to the parent under this paragraph and paragraph (b).

(d) In order to access the private health care coverage of a child who is covered by private
health care coverage in whole or in part, a district must:

(1) obtain annual written informed consent from the parent or legal representative, in
compliance with subdivision 5; and

(2) inform the parent or legal representative that a refusal to permit the district or state
Medicaid agency to access their private health care coverage does not relieve the district of
its responsibility to provide all services necessary to provide free and appropriate public
education at no cost to the parent or legal representative.

(e) If the commissioner of human services obtains federal approval to exempt covered
individualized education program or individualized family service plan health-related
services from the requirement that private health care coverage refuse payment before
medical assistance may be billed, paragraphs (b), (c), and (d) shall also apply to students
with a combination of private health care coverage and health care coverage through medical
assistance or MinnesotaCare.

(f) In the event that Congress or any federal agency or the Minnesota legislature or any
state agency establishes lifetime limits, limits for any health care services, cost-sharing
provisions, or otherwise provides that individualized education program or individualized
family service plan health-related services impact benefits for persons enrolled in medical
assistance or MinnesotaCare, the amendments to this subdivision adopted in 2002 are
repealed on the effective date of any federal or state law or regulation that imposes the
limits. In that event, districts must obtain informed consent consistent with this subdivision
as it existed prior to the 2002 amendments and subdivision 5, before seeking reimbursement
for children enrolled in medical assistance under chapter 256B or MinnesotaCare under
chapter 256L who have no other health care coverage.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 4.

Minnesota Statutes 2016, section 125A.515, is amended to read:


125A.515 PLACEMENT OF STUDENTS; APPROVAL OF EDUCATION
PROGRAM.

Subdivision 1.

Approval of on-site education programs.

The commissioner shall
approve on-site education programs for placement of children and youth in residential
facilities including detention centers, before being licensed by the Department of Human
Services or the Department of Corrections. Education programs in these facilities shall
conform to state and federal education laws including the Individuals with Disabilities
Education Act (IDEA). This section applies only to placements in children's residential
facilities licensed by the Department of Human Services or the Department of Corrections.
For purposes of this section, "on-site education program" means the educational services
provided directly on the grounds of the care and treatment children's residential facility to
children and youth placed for care and treatment.

Subd. 3.

Responsibilities for providing education.

(a) The district in which the children's
residential facility is located must provide education services, including special education
if eligible, to all students placed in a facility.

(b) For education programs operated by the Department of Corrections, the providing
district shall be the Department of Corrections. For students remanded to the commissioner
of corrections, the providing and resident district shall be the Department of Corrections.

Subd. 3a.

Students without a disability from other states.

A school district is not
required to provide education services under this section to a student who:

(1) is not a resident of Minnesota;

(2) does not have an individualized education program; and

(3) does not have a tuition arrangement or agreement to pay the cost of education from
the placing authority.

Subd. 4.

Education services required.

(a) Education services must be provided to a
student beginning within three business days after the student enters the care and treatment
children's residential
facility. The first four days of the student's placement may be used to
screen the student for educational and safety issues.

(b) If the student does not meet the eligibility criteria for special education, regular
education services must be provided to that student.

Subd. 5.

Education programs for students placed in children's residential facilities.

(a) When a student is placed in a children's residential facility approved under this section
that has an on-site education program, the providing district, upon notice from the care and
treatment
children's residential facility, must contact the resident district within one business
day to determine if a student has been identified as having a disability, and to request at
least the student's transcript, and for students with disabilities, the most recent individualized
education program (IEP) and evaluation report, and to determine if the student has been
identified as a student with a disability
. The resident district must send a facsimile copy to
the providing district within two business days of receiving the request.

(b) If a student placed under this section has been identified as having a disability and
has an individualized education program in the resident district:

(1) the providing agency must conduct an individualized education program meeting to
reach an agreement about continuing or modifying special education services in accordance
with the current individualized education program goals and objectives and to determine if
additional evaluations are necessary; and

(2) at least the following people shall receive written notice or documented phone call
to be followed with written notice to attend the individualized education program meeting:

(i) the person or agency placing the student;

(ii) the resident district;

(iii) the appropriate teachers and related services staff from the providing district;

(iv) appropriate staff from the children's residential facility;

(v) the parents or legal guardians of the student; and

(vi) when appropriate, the student.

(c) For a student who has not been identified as a student with a disability, a screening
must be conducted by the providing districts as soon as possible to determine the student's
educational and behavioral needs and must include a review of the student's educational
records.

Subd. 6.

Exit report summarizing educational progress.

If a student has been placed
in a facility under this section for 15 or more business days, the providing district must
prepare an exit report summarizing the regular education, special education, evaluation,
educational progress, and service information and must send the report to the resident district
and the next providing district if different, the parent or legal guardian, and any appropriate
social service agency. For students with disabilities, this report must include the student's
IEP.

Subd. 7.

Minimum educational services required.

When a student is placed in a
children's residential facility approved under this section, at a minimum, the providing
district is responsible for:

(1) the education necessary, including summer school services, for a student who is not
performing at grade level as indicated in the education record or IEP; and

(2) a school day, of the same length as the school day of the providing district, unless
the unique needs of the student, as documented through the IEP or education record in
consultation with treatment providers, requires an alteration in the length of the school day.

Subd. 8.

Placement, services, and due process.

When a student's treatment and
educational needs allow, education shall be provided in a regular educational setting. The
determination of the amount and site of integrated services must be a joint decision between
the student's parents or legal guardians and the treatment and education staff. When
applicable, educational placement decisions must be made by the IEP team of the providing
district. Educational services shall be provided in conformance with the least restrictive
environment principle of the Individuals with Disabilities Education Act. The providing
district and care and treatment children's residential facility shall cooperatively develop
discipline and behavior management procedures to be used in emergency situations that
comply with the Minnesota Pupil Fair Dismissal Act and other relevant state and federal
laws and regulations.

Subd. 9.

Reimbursement for education services.

(a) Education services provided to
students who have been placed under this section are reimbursable in accordance with
special education and general education statutes.

(b) Indirect or consultative services provided in conjunction with regular education
prereferral interventions and assessment provided to regular education students suspected
of being disabled and who have demonstrated learning or behavioral problems in a screening
are reimbursable with special education categorical aids.

(c) Regular education, including screening, provided to students with or without
disabilities is not reimbursable with special education categorical aids.

Subd. 10.

Students unable to attend school but not covered under this section.

Students who are absent from, or predicted to be absent from, school for 15 consecutive or
intermittent days, and placed at home or in facilities not licensed by the Departments of
Corrections or Human Services are entitled to regular and special education services
consistent with this section or Minnesota Rules, part 3525.2325. These students include
students with and without disabilities who are home due to accident or illness, in a hospital
or other medical facility, or in a day treatment center.

Sec. 5.

Minnesota Statutes 2016, section 125A.74, subdivision 1, is amended to read:


Subdivision 1.

Eligibility.

A district may enroll as a provider in the medical assistance
program and receive medical assistance payments for covered evaluations and special
education services provided to persons eligible for medical assistance under chapter 256B.
To receive medical assistance payments, the district must pay the nonfederal share of medical
assistance services provided according to section 256B.0625, subdivision 26, and comply
with relevant provisions of state and federal statutes and regulations governing the medical
assistance program.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 6.

Minnesota Statutes 2016, section 125A.76, subdivision 2c, is amended to read:


Subd. 2c.

Special education aid.

(a) For fiscal year 2016 and later, a district's special
education aid equals the sum of the district's special education initial aid under subdivision
2a and the district's excess cost aid under section 125A.79, subdivision 5.

(b) Notwithstanding paragraph (a), for fiscal year 2016, the special education aid for a
school district must not exceed the sum of the special education aid the district would have
received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79,
as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision
7
, and the product of the district's average daily membership served and the special education
aid increase limit.

(c) Notwithstanding paragraph (a), for fiscal year 2017 and later, the special education
aid for a school district must not exceed the sum of: (i) the product of the district's average
daily membership served and the special education aid increase limit and (ii) the product
of the sum of the special education aid the district would have received for fiscal year 2016
under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to
Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the
district's average daily membership served for the current fiscal year to the district's average
daily membership served for fiscal year 2016, and the program growth factor.

(d) Notwithstanding paragraph (a), for fiscal year 2016 and later the special education
aid for a school district, not including a charter school or cooperative unit as defined in
section 123A.24, must not be less than the lesser of (1) the district's nonfederal special
education expenditures for that fiscal year or (2) the product of the sum of the special
education aid the district would have received for fiscal year 2016 under Minnesota Statutes
2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 2012,
sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted daily
membership for the current fiscal year to the district's average daily membership for fiscal
year 2016, and the program growth factor.

(e) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first year
of operation shall generate special education aid based on current year data. A newly formed
cooperative unit as defined in section 123A.24 may apply to the commissioner for approval
to generate special education aid for its first year of operation based on current year data,
with an offsetting adjustment to the prior year data used to calculate aid for programs at
participating school districts or previous cooperatives that were replaced by the new
cooperative. The department shall establish procedures to adjust the prior year data and
fiscal year 2016 old formula aid used in calculating special education aid to exclude costs
that have been eliminated for districts where programs have closed or where a substantial
portion of the program has been transferred to a cooperative unit.

(f) The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts.

EFFECTIVE DATE.

This section is effective for revenue for fiscal year 2018 and later.

Sec. 7.

Minnesota Statutes 2016, section 256B.0625, subdivision 26, is amended to read:


Subd. 26.

Special education services.

(a) Medical assistance covers evaluations necessary
in making a determination for eligibility for individualized education program and
individualized family service plan services and for
medical services identified in a recipient's
individualized education program and individualized family service plan and covered under
the medical assistance state plan. Covered services include occupational therapy, physical
therapy, speech-language therapy, clinical psychological services, nursing services, school
psychological services, school social work services, personal care assistants serving as
management aides, assistive technology devices, transportation services, health assessments,
and other services covered under the medical assistance state plan. Mental health services
eligible for medical assistance reimbursement must be provided or coordinated through a
children's mental health collaborative where a collaborative exists if the child is included
in the collaborative operational target population. The provision or coordination of services
does not require that the individualized education program be developed by the collaborative.

The services may be provided by a Minnesota school district that is enrolled as a medical
assistance provider or its subcontractor, and only if the services meet all the requirements
otherwise applicable if the service had been provided by a provider other than a school
district, in the following areas: medical necessity, physician's orders, documentation,
personnel qualifications, and prior authorization requirements. The nonfederal share of costs
for services provided under this subdivision is the responsibility of the local school district
as provided in section 125A.74. Services listed in a child's individualized education program
are eligible for medical assistance reimbursement only if those services meet criteria for
federal financial participation under the Medicaid program.

(b) Approval of health-related services for inclusion in the individualized education
program does not require prior authorization for purposes of reimbursement under this
chapter. The commissioner may require physician review and approval of the plan not more
than once annually or upon any modification of the individualized education program that
reflects a change in health-related services.

(c) Services of a speech-language pathologist provided under this section are covered
notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person:

(1) holds a masters degree in speech-language pathology;

(2) is licensed by the Minnesota Board of Teaching as an educational speech-language
pathologist; and

(3) either has a certificate of clinical competence from the American Speech and Hearing
Association, has completed the equivalent educational requirements and work experience
necessary for the certificate or has completed the academic program and is acquiring
supervised work experience to qualify for the certificate.

(d) Medical assistance coverage for medically necessary services provided under other
subdivisions in this section may not be denied solely on the basis that the same or similar
services are covered under this subdivision.

(e) The commissioner shall develop and implement package rates, bundled rates, or per
diem rates for special education services under which separately covered services are grouped
together and billed as a unit in order to reduce administrative complexity.

(f) The commissioner shall develop a cost-based payment structure for payment of these
services. Only costs reported through the designated Minnesota Department of Education
data systems in distinct service categories qualify for inclusion in the cost-based payment
structure. The commissioner shall reimburse claims submitted based on an interim rate, and
shall settle at a final rate once the department has determined it. The commissioner shall
notify the school district of the final rate. The school district has 60 days to appeal the final
rate. To appeal the final rate, the school district shall file a written appeal request to the
commissioner within 60 days of the date the final rate determination was mailed. The appeal
request shall specify (1) the disputed items and (2) the name and address of the person to
contact regarding the appeal.

(g) Effective July 1, 2000, medical assistance services provided under an individualized
education program or an individual family service plan by local school districts shall not
count against medical assistance authorization thresholds for that child.

(h) Nursing services as defined in section 148.171, subdivision 15, and provided as an
individualized education program health-related service, are eligible for medical assistance
payment if they are otherwise a covered service under the medical assistance program.
Medical assistance covers the administration of prescription medications by a licensed nurse
who is employed by or under contract with a school district when the administration of
medications is identified in the child's individualized education program. The simple
administration of medications alone is not covered under medical assistance when
administered by a provider other than a school district or when it is not identified in the
child's individualized education program.

EFFECTIVE DATE.

This section is effective August 1, 2017.

Sec. 8.

Laws 2016, chapter 189, article 25, section 62, subdivision 17, is amended to read:


Subd. 17.

Southwest Minnesota State University special education teacher education
program.

(a) For the Southwest Minnesota State University special education teacher
education program to support Minnesota resident residents working toward licensure in an
online program, including persons currently employed as:

(1) special education paraprofessionals working toward licensure in an online program;

(2) teachers without a special education license working on a variance; or

(3) individuals teaching with a community expert license:

$
385,000
132,000
.....
2017
$
253,000
.....
2018

(b) $253,000 of the $385,000 appropriation in Laws 2016, chapter 189, article 25, section
62, subdivision 17, is canceled to the state general fund on June 30, 2017.

The base for this program in fiscal year 2018 is $0. (c) The 2018 appropriation is available
until June 30, 2019.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 9. SPECIAL EDUCATION ASSISTIVE TECHNOLOGY STUDY.

Subdivision 1.

Study.

The commissioner of education must examine the use of assistive
technology in Minnesota school districts. The commissioner may examine financial data,
survey school officials, and use other methods to collect data on the use of assistive
technology by Minnesota's students. The commissioner must consult with the Minnesota
Assistive Technology Advisory Council and other interested organizations to determine the
scope and focus of the study.

Subd. 2.

Data reporting.

The commissioner must examine the federally required uniform
financial accounting and reporting standards object codes and, if necessary, recommend
changes to better capture school district spending on assistive technology. The commissioner
must examine approaches to collecting additional student-level assistive technology data
through the electronic data reporting system.

Subd. 3.

Assistive technology manual.

The commissioner must examine the department's
assistive technology manual, and determine whether to prepare a revised manual.

Subd. 4.

Report.

The commissioner of education must report to the chairs and ranking
minority members of the legislative committees with jurisdiction over kindergarten through
grade 12 education by February 15, 2018, on the use of assistive technology by Minnesota's
students and recommend statutory changes to encourage individualized education programs
and individualized family service plans to incorporate a child-centered assistive technology
plan.

Sec. 10. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

Special education; regular.

For special education aid under Minnesota Statutes,
section 125A.75:

$
1,338,867,000
.....
2018
$
1,425,924,000
.....
2019

The 2018 appropriation includes $156,403,000 for 2017 and $1,182,464,000 for 2018.

The 2019 appropriation includes $131,384,000 for 2018 and $1,294,540,000 for 2019.

Subd. 3.

Aid for children with disabilities.

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

$
1,597,000
.....
2018
$
1,830,000
.....
2019

If the appropriation for either year is insufficient, the appropriation for the other year is
available.

Subd. 4.

Travel for home-based services.

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

$
508,000
.....
2018
$
532,000
.....
2019

The 2018 appropriation includes $48,000 for 2017 and $460,000 for 2018.

The 2019 appropriation includes $51,000 for 2018 and $481,000 for 2019.

Subd. 5.

Court-placed special education revenue.

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

$
46,000
.....
2018
$
47,000
.....
2019

Subd. 6.

Special education out-of-state tuition.

For special education out-of-state
tuition under Minnesota Statutes, section 125A.79, subdivision 8:

$
250,000
.....
2018
$
250,000
.....
2019

Sec. 11. REPEALER.

Minnesota Statutes 2016, sections 125A.75, subdivision 7; and 125A.76, subdivision
2b,
are repealed effective for fiscal year 2018 and later.

ARTICLE 5

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2016, section 43A.08, subdivision 1, is amended to read:


Subdivision 1.

Unclassified positions.

Unclassified positions are held by employees
who are:

(1) chosen by election or appointed to fill an elective office;

(2) heads of agencies required by law to be appointed by the governor or other elective
officers, and the executive or administrative heads of departments, bureaus, divisions, and
institutions specifically established by law in the unclassified service;

(3) deputy and assistant agency heads and one confidential secretary in the agencies
listed in subdivision 1a and in the Office of Strategic and Long-Range Planning;

(4) the confidential secretary to each of the elective officers of this state and, for the
secretary of state and state auditor, an additional deputy, clerk, or employee;

(5) intermittent help employed by the commissioner of public safety to assist in the
issuance of vehicle licenses;

(6) employees in the offices of the governor and of the lieutenant governor and one
confidential employee for the governor in the Office of the Adjutant General;

(7) employees of the Washington, D.C., office of the state of Minnesota;

(8) employees of the legislature and of legislative committees or commissions; provided
that employees of the Legislative Audit Commission, except for the legislative auditor, the
deputy legislative auditors, and their confidential secretaries, shall be employees in the
classified service;

(9) presidents, vice-presidents, deans, other managers and professionals in academic
and academic support programs, administrative or service faculty, teachers, research
assistants, and student employees eligible under terms of the federal Economic Opportunity
Act work study program in the Perpich Center for Arts Education and the Minnesota State
Colleges and Universities, but not the custodial, clerical, or maintenance employees, or any
professional or managerial employee performing duties in connection with the business
administration of these institutions;

(10) officers and enlisted persons in the National Guard;

(11) attorneys, legal assistants, and three confidential employees appointed by the attorney
general or employed with the attorney general's authorization;

(12) judges and all employees of the judicial branch, referees, receivers, jurors, and
notaries public, except referees and adjusters employed by the Department of Labor and
Industry;

(13) members of the State Patrol; provided that selection and appointment of State Patrol
troopers must be made in accordance with applicable laws governing the classified service;

(14) examination monitors and intermittent training instructors employed by the
Departments of Management and Budget and Commerce and by professional examining
boards and intermittent staff employed by the technical colleges for the administration of
practical skills tests and for the staging of instructional demonstrations;

(15) student workers;

(16) executive directors or executive secretaries appointed by and reporting to any
policy-making board or commission established by statute;

(17) employees unclassified pursuant to other statutory authority;

(18) intermittent help employed by the commissioner of agriculture to perform duties
relating to pesticides, fertilizer, and seed regulation;

(19) the administrators and the deputy administrators at the State Academies for the
Deaf and the Blind; and

(20) chief executive officers in the Department of Human Services.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 2.

Minnesota Statutes 2016, section 43A.08, subdivision 1a, is amended to read:


Subd. 1a.

Additional unclassified positions.

Appointing authorities for the following
agencies may designate additional unclassified positions according to this subdivision: the
Departments of Administration; Agriculture; Commerce; Corrections; Education;
Employment and Economic Development; Explore Minnesota Tourism; Management and
Budget; Health; Human Rights; Labor and Industry; Natural Resources; Public Safety;
Human Services; Revenue; Transportation; and Veterans Affairs; the Housing Finance and
Pollution Control Agencies; the State Lottery; the State Board of Investment; the Office of
Administrative Hearings; the Office of MN.IT Services; the Offices of the Attorney General,
Secretary of State, and State Auditor; the Minnesota State Colleges and Universities; the
Minnesota Office of Higher Education; the Perpich Center for Arts Education; and the
Minnesota Zoological Board.

A position designated by an appointing authority according to this subdivision must
meet the following standards and criteria:

(1) the designation of the position would not be contrary to other law relating specifically
to that agency;

(2) the person occupying the position would report directly to the agency head or deputy
agency head and would be designated as part of the agency head's management team;

(3) the duties of the position would involve significant discretion and substantial
involvement in the development, interpretation, and implementation of agency policy;

(4) the duties of the position would not require primarily personnel, accounting, or other
technical expertise where continuity in the position would be important;

(5) there would be a need for the person occupying the position to be accountable to,
loyal to, and compatible with, the governor and the agency head, the employing statutory
board or commission, or the employing constitutional officer;

(6) the position would be at the level of division or bureau director or assistant to the
agency head; and

(7) the commissioner has approved the designation as being consistent with the standards
and criteria in this subdivision.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 3.

[121A.335] LEAD IN SCHOOL DRINKING WATER.

Subdivision 1.

Model plan.

The commissioners of health and education shall jointly
develop a model plan to require school districts to accurately and efficiently test for the
presence of lead in water in public school buildings serving students in kindergarten through
grade 12. To the extent possible, the commissioners shall base the plan on the standards
established by the United States Environmental Protection Agency. The plan may be based
on the technical guidance in the Department of Health's document, "Reducing Lead in
Drinking Water: A Technical Guidance for Minnesota's School and Child Care Facilities."

Subd. 2.

School plans.

By July 1, 2018, the board of each school district or charter
school must adopt the commissioners' model plan or develop and adopt an alternative plan
to accurately and efficiently test for the presence of lead in water in school buildings serving
prekindergarten students and students in kindergarten through grade 12.

Subd. 3.

Frequency of testing.

The plan under subdivision 2 must include a testing
schedule for every building serving prekindergarten through grade 12 students. The schedule
must require that each building be tested at least once every five years. A school district
must begin testing school buildings by July 1, 2018, and complete testing of all buildings
that serve students within five years.

Subd. 4.

Ten-year facilities plan.

A school district may include lead testing and
remediation as a part of its ten-year facilities plan under section 123B.595.

Subd. 5.

Reporting.

A school district that has tested its buildings for the presence of
lead shall make the results of the testing available to the public for review and must notify
parents of the availability of the information.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 4.

Minnesota Statutes 2016, section 122A.416, is amended to read:


122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE FOR
PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT
INTEGRATION COLLABORATIVES.

Notwithstanding sections 122A.414, 122A.415, and 126C.10, multidistrict integration
collaboratives and the Perpich Center for Arts Education are eligible to receive alternative
teacher compensation revenue as if they were intermediate school districts. To qualify for
alternative teacher compensation revenue, a multidistrict integration collaborative or the
Perpich Center for Arts Education
must meet all of the requirements of sections 122A.414
and 122A.415 that apply to intermediate school districts, must report its enrollment as of
October 1 of each year to the department, and must annually report its expenditures for the
alternative teacher professional pay system consistent with the uniform financial accounting
and reporting standards to the department by November 30 of each year.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 5.

Minnesota Statutes 2016, section 123A.30, subdivision 6, is amended to read:


Subd. 6.

Severance pay.

A district must pay severance pay to a teacher who is placed
on unrequested leave of absence by the district as a result of the agreement. A teacher is
eligible under this subdivision if the teacher:

(1) is a teacher, but not a superintendent;

(2) has a continuing contract with the district according to section 122A.40, subdivision
7
.

The amount of severance pay must be equal to the teacher's salary for the school year
during which the teacher was placed on unrequested leave of absence minus the gross
amount the teacher was paid during the 12 months following the teacher's termination of
salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching
license, and minus the amount a teacher receives as severance or other similar pay according
to a contract with the district or district policy. These entities requiring a valid Minnesota
teaching license include, but are not limited to, the district that placed the teacher on
unrequested leave of absence, another district in Minnesota, an education district, an
intermediate school district, a service cooperative, a board formed under section 471.59, a
state residential academy, the Perpich Center for Arts Education, a vocational center, or a
special education cooperative. These entities do not include a district in another state, a
Minnesota public postsecondary institution, or a state agency. Only amounts earned by the
teacher as a substitute teacher or in a position requiring a valid Minnesota teaching license
shall be subtracted. A teacher may decline any offer of employment as a teacher without
loss of rights to severance pay.

To determine the amount of severance pay that is due for the first six months following
termination of the teacher's salary, the district may require the teacher to provide documented
evidence of the teacher's employers and gross earnings during that period. The district must
pay the teacher the amount of severance pay it determines to be due from the proceeds of
the levy for this purpose. To determine the amount of severance pay that is due for the
second six months of the 12 months following the termination of the teacher's salary, the
district may require the teacher to provide documented evidence of the teacher's employers
and gross earnings during that period. The district must pay the teacher the amount of
severance pay it determines to be due from the proceeds of the levy for this purpose.

A teacher who receives severance pay under this subdivision waives all further
reinstatement rights under section 122A.40, subdivision 10 or 11. If the teacher receives
severance pay, the teacher shall not receive credit for any years of service in the district
paying severance pay prior to the year in which the teacher becomes eligible to receive
severance pay.

The severance pay is subject to section 465.72. The district may levy annually according
to section 126C.43, for the severance pay.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 6.

Minnesota Statutes 2016, section 123A.73, subdivision 2, is amended to read:


Subd. 2.

Involuntary Dissolution; referendum revenue.

As of the effective date of
the voluntary or involuntary dissolution of a district and its attachment to one or more
existing districts pursuant to sections 123A.60 or 123A.64 to 123A.72, the authorization
for any referendum revenue previously approved by the voters of the dissolved district in
that district pursuant to section 126C.17, subdivision 9, or its predecessor or successor
provision, is canceled. The authorization for any referendum revenue previously approved
by the voters of a district to which all or part of the dissolved district is attached shall not
be affected by the attachment and shall apply to the entire area of the district as enlarged
by the attachment.

EFFECTIVE DATE.

This section is effective retroactively from January 1, 2017.

Sec. 7.

Minnesota Statutes 2016, section 123B.595, subdivision 1, is amended to read:


Subdivision 1.

Long-term facilities maintenance revenue.

(a) For fiscal year 2017
only, long-term facilities maintenance revenue equals the greater of (1) the sum of (i) $193
times the district's adjusted pupil units times the lesser of one or the ratio of the district's
average building age to 35 years, plus the cost approved by the commissioner for indoor
air quality, fire alarm and suppression, and asbestos abatement projects under section
123B.57, subdivision 6, with an estimated cost of $100,000 or more per site, plus (ii) for a
school district with an approved voluntary prekindergarten program under section 124D.151,
the cost approved by the commissioner for remodeling existing instructional space to
accommodate prekindergarten instruction, or (2) the sum of (i) the amount the district would
have qualified for under Minnesota Statutes 2014, section 123B.57, Minnesota Statutes
2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591, and (ii) for a school
district with an approved voluntary prekindergarten program under section 124D.151, the
cost approved by the commissioner for remodeling existing instructional space to
accommodate prekindergarten instruction.

(b) For fiscal year 2018 only, long-term facilities maintenance revenue equals the greater
of (1) the sum of (i) $292 times the district's adjusted pupil units times the lesser of one or
the ratio of the district's average building age to 35 years, plus (ii) the cost approved by the
commissioner for indoor air quality, fire alarm and suppression, and asbestos abatement
projects under section 123B.57, subdivision 6, with an estimated cost of $100,000 or more
per site, plus (iii) for a school district with an approved voluntary prekindergarten program
under section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction
, or (2) the sum of (i) the
amount the district would have qualified for under Minnesota Statutes 2014, section 123B.57,
Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section 123B.591,
and (ii) for a school district with an approved voluntary prekindergarten program under
section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction
.

(c) For fiscal year 2019 and later, long-term facilities maintenance revenue equals the
greater of (1) the sum of (i) $380 times the district's adjusted pupil units times the lesser of
one or the ratio of the district's average building age to 35 years, plus (ii) the cost approved
by the commissioner for indoor air quality, fire alarm and suppression, and asbestos
abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000
or more per site, plus (iii) for a school district with an approved voluntary prekindergarten
program under section 124D.151, the cost approved by the commissioner for remodeling
existing instructional space to accommodate prekindergarten instruction
, or (2) the sum of
(i)
the amount the district would have qualified for under Minnesota Statutes 2014, section
123B.57, Minnesota Statutes 2014, section 123B.59, and Minnesota Statutes 2014, section
123B.591, and (ii) for a school district with an approved voluntary prekindergarten program
under section 124D.151, the cost approved by the commissioner for remodeling existing
instructional space to accommodate prekindergarten instruction
.

(d) Notwithstanding paragraphs (a), (b), and (c), a school district that qualified for
eligibility under Minnesota Statutes 2014, section 123B.59, subdivision 1, paragraph (a),
for fiscal year 2010 remains eligible for funding under this section as a district that would
have qualified for eligibility under Minnesota Statutes 2014, section 123B.59, subdivision
1, paragraph (a), for fiscal year 2017 and later.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 8.

Minnesota Statutes 2016, section 123B.595, subdivision 4, is amended to read:


Subd. 4.

Facilities plans.

(a) To qualify for revenue under this section, a school district
or intermediate district, not including a charter school, must have a ten-year facility plan
adopted by the school board and approved by the commissioner. The plan must include
provisions for implementing a health and safety program that complies with health, safety,
and environmental regulations and best practices, including indoor air quality management
and remediation of lead hazards
.

(b) The district must annually update the plan, submit the plan to the commissioner for
approval by July 31, and indicate whether the district will issue bonds to finance the plan
or levy for the costs.

(c) For school districts issuing bonds to finance the plan, the plan must include a debt
service schedule demonstrating that the debt service revenue required to pay the principal
and interest on the bonds each year will not exceed the projected long-term facilities revenue
for that year.

EFFECTIVE DATE.

This section is effective for revenue for fiscal year 2018 and later.

Sec. 9.

Minnesota Statutes 2016, section 123B.71, subdivision 11, is amended to read:


Subd. 11.

Review of proposals.

In reviewing each proposal, the commissioner shall
submit to the school board, within 60 days of receiving the proposal, the review and comment
about the educational and economic advisability of the project. The commissioner must
include comments from residents of the school district in the review and comment.
The
review and comment shall be based on information submitted with the proposal and other
information the commissioner determines is necessary. If the commissioner submits a
negative review and comment for a portion of a proposal, the review and comment shall
clearly specify which portion of the proposal received a negative review and comment and
which portion of the proposal received a positive review and comment.

Sec. 10.

Minnesota Statutes 2016, section 123B.71, subdivision 12, is amended to read:


Subd. 12.

Publication.

(a) At least 20 days but not more than 60 days before a referendum
for bonds or solicitation of bids for a project that has received a positive or unfavorable
review and comment under section 123B.70, the school board shall publish a summary of
the commissioner's review and comment of that project in the legal newspaper of the district.
The school board must hold a public meeting to discuss the commissioner's review and
comment before the referendum for bonds.
Supplementary information shall be available
to the public.

(b) The publication requirement in paragraph (a) does not apply to alternative facilities
projects approved under section 123B.59 123B.595.

Sec. 11.

Minnesota Statutes 2016, section 124D.05, subdivision 3, is amended to read:


Subd. 3.

Severance pay.

A district must pay severance pay to a teacher who is placed
on unrequested leave of absence by the district as a result of an agreement under this section.
A teacher is eligible under this subdivision if the teacher:

(1) is a teacher, as defined in section 122A.40, subdivision 1, but not a superintendent;

(2) has a continuing contract with the district according to section 122A.40, subdivision
7
.

The amount of severance pay must be equal to the teacher's salary for the school year
during which the teacher was placed on unrequested leave of absence minus the gross
amount the teacher was paid during the 12 months following the teacher's termination of
salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching
license, and minus the amount a teacher receives as severance or other similar pay according
to a contract with the district or district policy. These entities include, but are not limited
to, the district that placed the teacher on unrequested leave of absence, another district in
Minnesota, an education district, an intermediate school district, a service cooperative, a
board formed under section 471.59, a state residential academy, the Perpich Center for Arts
Education,
a vocational center, or a special education cooperative. These entities do not
include a district in another state, a Minnesota public postsecondary institution, or a state
agency. Only amounts earned by the teacher as a substitute teacher or in a position requiring
a valid Minnesota teaching license shall be subtracted. A teacher may decline any offer of
employment as a teacher without loss of rights to severance pay.

To determine the amount of severance pay that is due for the first six months following
termination of the teacher's salary, the district may require the teacher to provide documented
evidence of the teacher's employers and gross earnings during that period. The district must
pay the teacher the amount of severance pay it determines to be due from the proceeds of
the levy for this purpose. To determine the amount of severance pay that is due for the
second six months of the 12 months following the termination of the teacher's salary, the
district may require the teacher to provide documented evidence of the teacher's employers
and gross earnings during that period. The district must pay the teacher the amount of
severance pay it determines to be due from the proceeds of the levy for this purpose.

A teacher who receives severance pay under this subdivision waives all further
reinstatement rights under section 122A.40, subdivision 10 or 11. If the teacher receives
severance pay, the teacher must not receive credit for any years of service in the district
paying severance pay prior to the year in which the teacher becomes eligible to receive
severance pay.

The severance pay is subject to section 465.72. The district may levy annually according
to section 126C.43 for the severance pay.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 12.

[127A.155] LOLA AND RUDY PERPICH ARTS EDUCATION DIVISION.

Subdivision 1.

Establishment of arts education division.

The department must provide
arts support services to school districts throughout Minnesota through the establishment of
the Lola and Rudy Perpich arts education and outreach division.

Subd. 2.

Division responsibilities.

(a) The Perpich division must offer resources and
outreach services statewide to enhance arts education opportunities for pupils in elementary
and secondary school. The Perpich division must work with school districts across Minnesota
to:

(1) gather and conduct research in arts education;

(2) develop exemplary curriculum, instructional practices, and assessments;

(3) disseminate information regarding arts education opportunities; and

(4) provide materials, training, and assistance to the arts education committees in school
districts.

(b) The Perpich division must collaborate with the commissioner of education to develop
arts standards and strengthen state policies related to arts education.

(c) The Perpich division must serve as liaison for the Department of Education to national
organizations for arts education.

(d) The commissioner may, on behalf of the Perpich division, apply for funds from
public and private sources.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 13.

Minnesota Statutes 2016, section 297A.70, subdivision 2, is amended to read:


Subd. 2.

Sales to government.

(a) All sales, except those listed in paragraph (b), to the
following governments and political subdivisions, or to the listed agencies or instrumentalities
of governments and political subdivisions, are exempt:

(1) the United States and its agencies and instrumentalities;

(2) school districts, local governments, the University of Minnesota, state universities,
community colleges, technical colleges, state academies, the Perpich Minnesota Center for
Arts Education,
and an instrumentality of a political subdivision that is accredited as an
optional/special function school by the North Central Association of Colleges and Schools;

(3) hospitals and nursing homes owned and operated by political subdivisions of the
state of tangible personal property and taxable services used at or by hospitals and nursing
homes;

(4) notwithstanding paragraph (d), the sales and purchases by the Metropolitan Council
of vehicles and repair parts to equip operations provided for in section 473.4051 are exempt
through December 31, 2016;

(5) other states or political subdivisions of other states, if the sale would be exempt from
taxation if it occurred in that state; and

(6) public libraries, public library systems, multicounty, multitype library systems as
defined in section 134.001, county law libraries under chapter 134A, state agency libraries,
the state library under section 480.09, and the Legislative Reference Library.

(b) This exemption does not apply to the sales of the following products and services:

(1) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a building or facility;

(2) construction materials purchased by tax exempt entities or their contractors to be
used in constructing buildings or facilities which will not be used principally by the tax
exempt entities;

(3) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except
for leases entered into by the United States or its agencies or instrumentalities;

(4) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2),
and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67,
subdivision 2
, except for lodging, prepared food, candy, soft drinks, and alcoholic beverages
purchased directly by the United States or its agencies or instrumentalities; or

(5) goods or services purchased by a local government as inputs to a liquor store, gas
or electric utility, solid waste hauling service, solid waste recycling service, landfill, golf
course, marina, campground, cafe, or laundromat.

(c) As used in this subdivision, "school districts" means public school entities and districts
of every kind and nature organized under the laws of the state of Minnesota, and any
instrumentality of a school district, as defined in section 471.59.

(d) For purposes of the exemption granted under this subdivision, "local governments"
has the following meaning:

(1) for the period prior to January 1, 2017, local governments means statutory or home
rule charter cities, counties, and townships; and

(2) beginning January 1, 2017, local governments means statutory or home rule charter
cities, counties, and townships; special districts as defined under section 6.465; any
instrumentality of a statutory or home rule charter city, county, or township as defined in
section 471.59; and any joint powers board or organization created under section 471.59.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 14.

Laws 2016, chapter 189, article 30, section 25, subdivision 5, is amended to read:


Subd. 5.

Early repayment aid incentive.

(a) For incentive grants for a district that
repays the full outstanding original principal on its capital loan by November 30, 2016,
under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by this
act:

$
2,200,000
2,350,000
.....
2017

(b) Of this amount, $150,000 is for a grant to Independent School District No. 36,
Kelliher;
$180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000
is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to
Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School
District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682,
Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central.

(c) The grant may be used for any school-related purpose.

(d) The base appropriation for 2022 is zero.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 15. DISPOSITION OF CROSSWINDS SCHOOL; PROCEEDS OF SALE.

(a) Notwithstanding the appropriation of state general obligation bond proceeds in Laws
1998, chapter 404, section 5, subdivision 5; Laws 1999, chapter 240, article 1, section 3;
Laws 2000, chapter 492, article 1, section 5, subdivision 2; Laws 2001, First Special Session
chapter 12, section 2, subdivision 2; and Laws 2005, chapter 20, article 1, section 5,
subdivision 3, to acquire and better the Crosswinds school facilities by the Joint Powers
District No. 6067, East Metro Integration District, in Woodbury, the Crosswinds school
may be conveyed or sold by the commissioner of administration in accordance with
Minnesota Statutes, sections 16B.281 to 16B.287.

(b) As soon as practicable following July 1, 2017, and consistent with Minnesota Statutes,
sections 16A.695 and 16B.281 to 16B.287, and constraints on the disposition of
bond-financed property, the commissioner of administration shall offer the Crosswinds
school property for sale. Before offering the Crosswinds school property for sale, the
commissioner of administration must determine that the property is no longer needed to
carry out the governmental program for which it was acquired or constructed.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 16. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.

For the 2017-2018 school year only, for a school district or charter school enrolling
pupils at the Crosswinds school, the Department of Education must calculate compensatory
revenue, literacy aid, and alternative compensation revenue for the Crosswinds school based
on the October 1, 2016, enrollment counts at that site.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 17. PERPICH CENTER FOR ARTS EDUCATION CLOSURE.

Subdivision 1.

Perpich Center for Arts Education abolished.

(a) The Perpich Center
for Arts Education (Perpich Center) is abolished effective June 30, 2018. Abolishment under
this section does not reduce or otherwise limit the powers and authority of the Perpich Center
during the concluding duration of its existence.

(b) Notwithstanding any other law, any unexpended and unencumbered appropriations
to the Perpich Center lapse to the fund or account from which they were appropriated on
June 30, 2018. All money in a dedicated fund or account of the Perpich Center on June 30,
2018, must be transferred to the general fund.

Subd. 2.

Library.

All property in the Perpich Arts Library is transferred to the State
Library Services Division of the Department of Education, in accordance with Minnesota
Statutes, section 15.039, subdivisions 5 and 8, effective June 1, 2018.

Subd. 3.

Student enrollment.

Students enrolled in the Perpich Arts High School during
the 2016-2017 school year may continue to enroll in that school for the 2017-2018 school
year. No student may enroll in the Perpich Arts High School after the 2017-2018 school
year.

Subd. 4.

Education records.

The Perpich Center must transfer the education records
of each student of the Perpich Arts High School and Crosswinds school according to
Minnesota Statutes, section 120A.22, subdivision 7.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 18. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

Debt service equalization aid.

For debt service equalization aid under
Minnesota Statutes, section 123B.53, subdivision 6:

$
24,908,000
.....
2018
$
22,360,000
.....
2019

The 2018 appropriation includes $2,324,000 for 2017 and $22,584,000 for 2018.

The 2019 appropriation includes $2,509,000 for 2018 and $19,851,000 for 2019.

Subd. 3.

Long-term facilities maintenance equalized aid.

For long-term facilities
maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

$
80,121,000
.....
2018
$
103,397,000
.....
2019

The 2018 appropriation includes $5,815,000 for 2017 and $74,306,000 for 2018.

The 2019 appropriation includes $8,256,000 for 2018 and $95,141,000 for 2019.

Subd. 4.

Equity in telecommunications access.

For equity in telecommunications
access:

$
3,750,000
.....
2018
$
3,750,000
.....
2019

If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2018 and 2019 shall be prorated.

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

Subd. 5.

Early repayment aid incentive.

(a) For incentive grants for a district that
repays the full outstanding original principal on its capital loan by November 30, 2016,
under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by Laws
2016, chapter 189, article 30, section 22:

$
2,350,000
.....
2018
$
2,350,000
.....
2019

(b) Of this amount, $150,000 is for a grant to Independent School District No. 36,
Kelliher; $180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000
is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to
Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School
District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682,
Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central.

(c) The grant may be used for any school-related purpose.

(d) The base for 2022 is $0.

Sec. 19. REPEALER.

(a) Minnesota Statutes 2016, section 123A.73, subdivision 3, is repealed retroactively
from January 1, 2017.

(b) Minnesota Statutes 2016, sections 129C.10, subdivision 5a; and 129C.30, are repealed
effective July 1, 2017.

(c) Minnesota Statutes 2016, sections 129C.10, subdivisions 1, 2, 3, 3a, 3b, 4, 4a, 6, 7,
and 8; 129C.105; 129C.15; 129C.20; 129C.25; and 129C.26,
and

Minnesota Rules, parts
3600.0010, subparts 1, 2, 2a, 2b, 3, and 6; 3600.0020; 3600.0030, subparts 1, 2, 4, and 6;
3600.0045; 3600.0055; 3600.0065; 3600.0075; and 3600.0085,
are repealed effective June
30, 2018.

ARTICLE 6

NUTRITION

Section 1.

Minnesota Statutes 2016, section 123B.52, subdivision 1, is amended to read:


Subdivision 1.

Contracts.

A contract for work or labor, or for the purchase of furniture,
fixtures, or other property, except books registered under the copyright laws and information
systems software, or for the construction or repair of school houses, the estimated cost or
value of which shall exceed that specified in section 471.345, subdivision 3, must not be
made by the school board without first advertising for bids or proposals by two weeks'
published notice in the official newspaper. This notice must state the time and place of
receiving bids and contain a brief description of the subject matter.

Additional publication in the official newspaper or elsewhere may be made as the board
shall deem necessary.

After taking into consideration conformity with the specifications, terms of delivery,
and other conditions imposed in the call for bids, every such contract for which a call for
bids has been issued must be awarded to the lowest responsible bidder, be duly executed
in writing, and be otherwise conditioned as required by law. The person to whom the contract
is awarded shall give a sufficient bond to the board for its faithful performance.
Notwithstanding section 574.26 or any other law to the contrary, on a contract limited to
the purchase of a finished tangible product, a board may require, at its discretion, a
performance bond of a contractor in the amount the board considers necessary. A record
must be kept of all bids, with names of bidders and amount of bids, and with the successful
bid indicated thereon. A bid containing an alteration or erasure of any price contained in
the bid which is used in determining the lowest responsible bid must be rejected unless the
alteration or erasure is corrected as provided in this section. An alteration or erasure may
be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
initialed in ink by the person signing the bid. In the case of identical low bids from two or
more bidders, the board may, at its discretion, utilize negotiated procurement methods with
the tied low bidders for that particular transaction, so long as the price paid does not exceed
the low tied bid price. In the case where only a single bid is received, the board may, at its
discretion, negotiate a mutually agreeable contract with the bidder so long as the price paid
does not exceed the original bid. If no satisfactory bid is received, the board may readvertise.
Standard requirement price contracts established for supplies or services to be purchased
by the district must be established by competitive bids. Such standard requirement price
contracts may contain escalation clauses and may provide for a negotiated price increase
or decrease based upon a demonstrable industrywide or regional increase or decrease in the
vendor's costs. Either party to the contract may request that the other party demonstrate
such increase or decrease. The term of such contracts must not exceed two years with an
option on the part of the district to renew for an additional two years, except as provided in
subdivision 7
. Contracts for the purchase of perishable food items, except milk for school
lunches and vocational training programs, in any amount may be made by direct negotiation
by obtaining two or more written quotations for the purchase or sale, when possible, without
advertising for bids or otherwise complying with the requirements of this section or section
471.345, subdivision 3. All quotations obtained shall be kept on file for a period of at least
one year after receipt.

Every contract made without compliance with the provisions of this section shall be
void. Except in the case of the destruction of buildings or injury thereto, where the public
interest would suffer by delay, contracts for repairs may be made without advertising for
bids.

EFFECTIVE DATE.

This section is effective for contracts entered into on or after July
1, 2017.

Sec. 2.

Minnesota Statutes 2016, section 123B.52, is amended by adding a subdivision to
read:


Subd. 7.

Food service contracts.

A contract between a school board and a food service
management company that complies with Code of Federal Regulations, title 7, section
210.16, may be renewed annually after its initial term for not more than four additional
years.

EFFECTIVE DATE.

This section is effective for contracts entered into on or after July
1, 2017.

Sec. 3.

Minnesota Statutes 2016, section 124D.1158, subdivision 3, is amended to read:


Subd. 3.

Program reimbursement.

Each school year, the state must reimburse each
participating school 30 cents for each reduced-price breakfast, 55 cents for each fully paid
breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served
to a prekindergarten student enrolled in an approved voluntary prekindergarten program
under section 124D.151 or a
kindergarten student.

Sec. 4.

Minnesota Statutes 2016, section 124D.1158, subdivision 4, is amended to read:


Subd. 4.

No fees.

A school that receives school breakfast aid under this section must
make breakfast available without charge to all participating students in grades 1 to 12 who
qualify for free or reduced-price meals and to all prekindergarten students enrolled in an
approved voluntary prekindergarten program under section 124D.151 and all
kindergarten
students.

Sec. 5. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

School lunch.

For school lunch aid under Minnesota Statutes, section 124D.111,
and Code of Federal Regulations, title 7, section 210.17:

$
16,670,000
.....
2018
$
17,172,000
.....
2019

Subd. 3.

School breakfast.

For traditional school breakfast aid under Minnesota Statutes,
section 124D.1158:

$
10,511,000
.....
2018
$
11,269,000
.....
2019

Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

$
758,000
.....
2018
$
758,000
.....
2019

Subd. 5.

Summer school food service replacement aid.

For summer school food service
replacement aid under Minnesota Statutes, section 124D.119:

$
150,000
.....
2018
$
150,000
.....
2019

ARTICLE 7

LIBRARIES

Section 1.

Minnesota Statutes 2016, section 134.31, subdivision 2, is amended to read:


Subd. 2.

Advice and instruction.

The Department of Education shall give advice and
instruction to the managers of any public library or to any governing body maintaining a
library or empowered to do so by law upon any matter pertaining to the organization,
maintenance, or administration of libraries. The department may also give advice and
instruction, as requested, to postsecondary educational institutions, school districts or charter
schools,
state agencies, governmental units, nonprofit organizations, or private entities. It
shall assist, to the extent possible, in the establishment and organization of library service
in those areas where adequate services do not exist, and may aid in improving previously
established library services. The department shall also provide assistance to school districts,
regional library systems, and member libraries interested in offering joint library services
at a single location.

Sec. 2. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

Basic system support.

For basic system support aid under Minnesota Statutes,
section 134.355:

$
13,570,000
.....
2018
$
13,570,000
.....
2019

The 2018 appropriation includes $1,357,000 for 2017 and $12,213,000 for 2018.

The 2019 appropriation includes $1,357,000 for 2018 and $12,213,000 for 2019.

Subd. 3.

Multicounty, multitype library systems.

For aid under Minnesota Statutes,
sections 134.353 and 134.354, to multicounty, multitype library systems:

$
1,300,000
.....
2018
$
1,300,000
.....
2019

The 2018 appropriation includes $130,000 for 2017 and $1,170,000 for 2018.

The 2019 appropriation includes $130,000 for 2018 and $1,170,000 for 2019.

Subd. 4.

Electronic library for Minnesota.

For statewide licenses to online databases
selected in cooperation with the Minnesota Office of Higher Education for school media
centers, public libraries, state government agency libraries, and public or private college or
university libraries:

$
900,000
.....
2018
$
900,000
.....
2019

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

Subd. 5.

Regional library telecommunications aid.

For regional library
telecommunications aid under Minnesota Statutes, section 134.355:

$
2,300,000
.....
2018
$
2,300,000
.....
2019

The 2018 appropriation includes $230,000 for 2017 and $2,070,000 for 2018.

The 2019 appropriation includes $230,000 for 2018 and $2,070,000 for 2019.

ARTICLE 8

EARLY CHILDHOOD AND FAMILY SUPPORT

Section 1.

Minnesota Statutes 2016, section 124D.1158, subdivision 3, is amended to
read:


Subd. 3.

Program reimbursement.

Each school year, the state must reimburse each
participating school 30 cents for each reduced-price breakfast, 55 cents for each fully paid
breakfast served to students in grades 1 to 12, and $1.30 for each fully paid breakfast served
to a prekindergarten student enrolled in an approved voluntary prekindergarten program
under section 124D.151 or a
kindergarten student.

Sec. 2.

Minnesota Statutes 2016, section 124D.1158, subdivision 4, is amended to read:


Subd. 4.

No fees.

A school that receives school breakfast aid under this section must
make breakfast available without charge to all participating students in grades 1 to 12 who
qualify for free or reduced-price meals and to all prekindergarten students enrolled in an
approved voluntary prekindergarten program under section 124D.151 and all
kindergarten
students.

Sec. 3.

Minnesota Statutes 2016, section 124D.165, subdivision 1, is amended to read:


Subdivision 1.

Establishment; purpose.

There is established an early learning
scholarships program in order to increase close the opportunity gap by increasing access to
high-quality early childhood programs for children ages three to five.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 4.

Minnesota Statutes 2016, section 124D.165, subdivision 2, is amended to read:


Subd. 2.

Family eligibility.

(a) For a family to receive an early learning scholarship,
parents or guardians must meet the following eligibility requirements:

(1) have a an eligible child three or four years of age on September 1 of the current
school year, who has not yet started kindergarten
; and

(2) have income equal to or less than 185 percent of federal poverty level income in the
current calendar year, or be able to document their child's current participation in the free
and reduced-price lunch program or child and adult care food program, National School
Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution
Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections
2011-2036; Head Start under the federal Improving Head Start for School Readiness Act
of 2007; Minnesota family investment program under chapter 256J; child care assistance
programs under chapter 119B; the supplemental nutrition assistance program; or placement
in foster care under section 260C.212.

(b) Notwithstanding the other provisions of this section, a parent under age 21 who is
pursuing a high school or general education equivalency diploma is eligible for an early
learning scholarship if the parent has a child age zero to five years old and meets the income
eligibility guidelines in this subdivision.

(c) Any siblings between the ages zero to (b) An "eligible child" means a child who has
not yet enrolled in kindergarten and is:

(1) at least three but not yet five years of age on September 1 of the current school year;

(2) a sibling from birth to age five years old of a child who has been awarded a
scholarship under this section must be awarded a scholarship upon request, provided the
sibling attends the same program as long as funds are available;

(3) the child of a parent under age 21 who is pursuing a high school degree or a course
of study for a high school equivalency test; or

(4) homeless, in foster care, or in need of child protective services.

(d) (c) A child who has received a scholarship under this section must continue to receive
a scholarship each year until that child is eligible for kindergarten under section 120A.20
and as long as funds are available.

(e) (d) Early learning scholarships may not be counted as earned income for the purposes
of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota
family investment program under chapter 256J, child care assistance programs under chapter
119B, or Head Start under the federal Improving Head Start for School Readiness Act of
2007.

(f) (e) A child from an adjoining state whose family resides at a Minnesota address as
assigned by the United States Postal Service, who has received developmental screening
under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district,
and whose family meets the criteria of paragraph (a) is eligible for an early learning
scholarship under this section.

EFFECTIVE DATE.

This section is effective July 1, 2017.

Sec. 5.

Minnesota Statutes 2016, section 124D.165, subdivision 3, is amended to read:


Subd. 3.

Administration.

(a) The commissioner shall establish application timelines
and determine the schedule for awarding scholarships that meets operational needs of eligible
families and programs. The commissioner must give highest priority to applications from
children who:

(1) have a parent under age 21 who is pursuing a high school diploma or a course of
study for a high school equivalency test;

(2) are in foster care or otherwise in need of protection or services; or

(3) have experienced homelessness in the last 24 months, as defined under the federal
McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 11434a.

The commissioner may prioritize applications on additional factors including family
income, geographic location, and whether the child's family is on a waiting list for a publicly
funded program providing early education or child care services.

(b) For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000 per year
for each eligible child. For fiscal year 2016 and later,
The commissioner shall establish a
target for the average scholarship amount per child based on the results of the rate survey
conducted under section 119B.02.

(c) A four-star rated program that has children eligible for a scholarship enrolled in or
on a waiting list for a program beginning in July, August, or September may notify the
commissioner, in the form and manner prescribed by the commissioner, each year of the
program's desire to enhance program services or to serve more children than current funding
provides. The commissioner may designate a predetermined number of scholarship slots
for that program and notify the program of that number. For fiscal year 2018 and later, the
statewide total number of scholarship slots directly designated by the commissioner must
not exceed the number of scholarships awarded for fiscal year 2017
. Beginning July 1, 2016,
a school district or Head Start program qualifying under this paragraph may use its established
registration process to enroll scholarship recipients and may verify a scholarship recipient's
family income in the same manner as for other program participants.

(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has not
been accepted and subsequently enrolled in a rated program within ten months of the
awarding of the scholarship, the scholarship cancels and the recipient must reapply in order
to be eligible for another scholarship. A child may not be awarded more than one scholarship
in a 12-month period.

(e) A child who receives a scholarship who has not completed development screening
under sections 121A.16 to 121A.19 must complete that screening within 90 days of first
attending an eligible program.

(f) For fiscal year 2017 and later, a school district or Head Start program enrolling
scholarship recipients under paragraph (c) may apply to the commissioner, in the form and
manner prescribed by the commissioner, for direct payment of state aid. Upon receipt of
the application, the commissioner must pay each program directly for each approved
scholarship recipient enrolled under paragraph (c) according to the metered payment system
or another schedule established by the commissioner.

Sec. 6.

Minnesota Statutes 2016, section 124D.165, subdivision 4, is amended to read:


Subd. 4.

Early childhood program eligibility.

(a) In order to be eligible to accept an
early learning scholarship, a program must:

(1) participate in the quality rating and improvement system under section 124D.142;
and

(2) beginning July 1, 2016 2022, have a three- or four-star rating in the quality rating
and improvement system.

(b) Any program accepting scholarships must use the revenue to supplement and not
supplant federal funding.

(c) Notwithstanding paragraph (a), all Minnesota early learning foundation scholarship
program pilot sites are eligible to accept an early learning scholarship under this section.

Sec. 7.

Minnesota Statutes 2016, section 124D.59, subdivision 2, is amended to read:


Subd. 2.

English learner.

(a) "English learner" means a pupil in kindergarten through
grade 12 or a prekindergarten student enrolled in an approved voluntary prekindergarten
program under section 124D.151
who meets the requirements under subdivision 2a or the
following requirements:

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

(2) the pupil is determined by a valid assessment measuring the pupil's English language
proficiency and by developmentally appropriate measures, which might include observations,
teacher judgment, parent recommendations, or developmentally appropriate assessment
instruments, to lack the necessary English skills to participate fully in academic classes
taught in English.

(b) A pupil enrolled in a Minnesota public school in any grade 4 through 12 who in the
previous school year took a commissioner-provided assessment measuring the pupil's
emerging academic English, shall be counted as an English learner in calculating English
learner pupil units under section 126C.05, subdivision 17, and shall generate state English
learner aid under section 124D.65, subdivision 5, if the pupil scored below the state cutoff
score or is otherwise counted as a nonproficient participant on the assessment measuring
the pupil's emerging academic English, or, in the judgment of the pupil's classroom teachers,
consistent with section 124D.61, clause (1), the pupil is unable to demonstrate academic
language proficiency in English, including oral academic language, sufficient to successfully
and fully participate in the general core curriculum in the regular classroom.

(c) Notwithstanding paragraphs (a) and (b), a pupil in prekindergarten under section
124D.151,
kindergarten through grade 12 shall not be counted as an English learner in
calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
generate state English learner aid under section 124D.65, subdivision 5, if:

(1) the pupil is not enrolled during the current fiscal year in an educational program for
English learners under sections 124D.58 to 124D.64; or

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

Sec. 8.

Minnesota Statutes 2016, 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
chapter 124E; 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 1.0 with a minimum
average daily membership of 0.28, but not more than 1.0 pupil unit.

(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 1.0.

(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) A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled
in an approved voluntary prekindergarten program under section 124D.151 is counted as
the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil
units.

(e) (d) A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
unit 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 unit, 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.

(f) (e) A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

(g) (f) A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(h) (g) A pupil who is in the postsecondary enrollment options program is counted as
1.2 pupil units.

Sec. 9. SCHOOL READINESS ADJUSTMENT.

For fiscal year 2018 and later, a charter school's or a district's school readiness aid under
Minnesota Statutes, section 124D.16, must be increased by an amount equal to the charter
school's or district's total voluntary prekindergarten revenue for fiscal year 2017.
Notwithstanding any other law, a charter school qualifying for revenue under this section
is eligible for school readiness aid.

Sec. 10. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

School readiness.

For revenue for school readiness programs under Minnesota
Statutes, sections 124D.15 and 124D.16:

$
55,260,000
.....
2018
$
57,657,000
.....
2019

The 2018 appropriation includes $3,368,000 for 2017 and $51,892,000 for 2018.

The 2019 appropriation includes $5,765,000 for 2018 and $51,892,000 for 2019.

Subd. 3.

Early learning scholarships.

(a) For the early learning scholarship program
under Minnesota Statutes, section 124D.165:

$
69,384,000
.....
2018
$
69,384,000
.....
2019

(b) Of the amounts appropriated in paragraph (a), no more than the amount necessary
to fund the same number of scholarship slots as were provided through the predetermined
selection process for fiscal year 2017 may be awarded through that method.

(c) Up to $950,000 each year is for administration of this program.

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

(e) The base for fiscal year 2020 is $69,884,000.

Subd. 4.

Head Start program.

For Head Start programs under Minnesota Statutes,
section 119A.52:

$
25,100,000
.....
2018
$
25,100,000
.....
2019

Subd. 5.

Early childhood family education aid.

For early childhood family education
aid under Minnesota Statutes, section 124D.135:

$
30,175,000
.....
2018
$
31,474,000
.....
2019

The 2018 appropriation includes $2,904,000 for 2017 and $27,271,000 for 2018.

The 2019 appropriation includes $3,030,000 for 2018 and $28,444,000 for 2019.

Subd. 6.

Developmental screening aid.

For developmental screening aid under
Minnesota Statutes, sections 121A.17 and 121A.19:

$
3,606,000
.....
2018
$
3,629,000
.....
2019

The 2018 appropriation includes $358,000 for 2017 and $3,248,000 for 2018.

The 2019 appropriation includes $360,000 for 2018 and $3,269,000 for 2019.

Subd. 7.

Parent-child home program.

For a grant to the parent-child home program:

$
900,000
.....
2018
$
900,000
.....
2019

The grant must be used for an evidence-based and research-validated early childhood
literacy and school readiness program for children ages 16 months to four years at its existing
suburban program location. The program must include urban and rural program locations
for fiscal years 2018 and 2019.

The base for this program for fiscal year 2020 and later is $900,000.

Subd. 8.

Kindergarten entrance assessment initiative and intervention program.

For the kindergarten entrance assessment initiative and intervention program under Minnesota
Statutes, section 124D.162:

$
281,000
.....
2018
$
281,000
.....
2019

Subd. 9.

Quality rating and improvement system.

(a) For transfer to the commissioner
of human services for the purposes of expanding the quality rating and improvement system
under Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports
for providers participating in the quality rating and improvement system:

$
1,750,000
.....
2018
$
1,750,000
.....
2019

(b) The amounts in paragraph (a) must be in addition to any federal funding under the
child care and development block grant authorized under Public Law 101-508 in that year
for the system under Minnesota Statutes, section 124D.142.

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

(d) The base for this program in fiscal year 2020 and later is $1,750,000.

Subd. 10.

Early childhood programs at tribal schools.

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

$
68,000
.....
2018
$
68,000
.....
2019

Subd. 11.

Educate parents partnership.

For the educate parents partnership under
Minnesota Statutes, section 124D.129:

$
49,000
.....
2018
$
49,000
.....
2019

Subd. 12.

Home visiting aid.

For home visiting aid under Minnesota Statutes, section
124D.135:

$
527,000
.....
2018
$
571,000
.....
2019

The 2018 appropriation includes $0 for 2017 and $527,000 for 2018.

The 2019 appropriation includes $58,000 for 2018 and $513,000 for 2019.

Sec. 11. REPEALER.

Minnesota Statutes 2016, section 124D.151, is repealed.

ARTICLE 9

COMMUNITY EDUCATION AND PREVENTION

Section 1.

[124D.99] EDUCATION PARTNERSHIPS COALITION FUND.

Subdivision 1.

Program establishment.

The commissioner of education shall establish
a program supporting a coalition of coordinated, aligned education partnerships as specified
in this section, for a comprehensive network of evidence-based support services designed
to close opportunity gaps by improving educational and developmental outcomes of children
and their families within communities experiencing poverty and impediments to economic
viability.

Subd. 2.

Definitions.

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

(b) "Tier 1 grant" means a sustaining grant for the ongoing operation, stability, and
expansion of existing education partnership program locations.

(c) "Tier 2 grant" means an implementation grant for expanding activity in education
partnership program locations.

Subd. 3.

Administration; design.

(a) The commissioner shall establish program
requirements, an application process and timeline for each tier of grants specified in
subdivision 4, criteria for evaluation of applications, and a grant awards process. The
commissioner's process must minimize administrative costs, minimize burdens for applicants
and grant recipients, and provide a framework that permits flexibility in program design
and implementation among grant recipients.

(b) To the extent practicable, the commissioner shall design the program to align with
programs implemented or proposed by organizations in Minnesota that:

(1) identify and increase the capacity of organizations that are focused on achieving
data-driven, locally controlled positive outcomes for children and youth throughout an entire
neighborhood or geographic area through programs such as Strive Together, Promise
Neighborhood, and the Education Partnerships Coalition members;

(2) build a continuum of educational family and community supports with academically
rigorous schools at the center;

(3) maximize program efficiencies by integrating programmatic activities and eliminating
administrative barriers;

(4) develop local infrastructure needed to sustain and scale up proven and effective
solutions beyond the initial neighborhood or geographic area; and

(5) utilize appropriate outcome measures based on unique community needs and interests
and apply rigorous evaluation on a periodic basis to be used to both monitor outcomes and
allow for continuous improvements to systems.

(c) A grant recipient's supportive services programming must address:

(1) kindergarten readiness and youth development;

(2) grade 3 reading proficiency;

(3) high school graduation;

(4) postsecondary educational attainment;

(5) physical and mental health;

(6) development of career skills and readiness;

(7) parental engagement and development;

(8) community engagement and programmatic alignment; and

(9) reduction of remedial education.

(d) The commissioner, in consultation with grant recipients, must:

(1) develop and revise core indicators of progress toward outcomes specifying impacts
for each tier identified under subdivision 4;

(2) establish a reporting system for grant recipients to measure program outcomes using
data sources and program goals; and

(3) evaluate effectiveness based on the core indicators established by each partnership
for each tier.

Subd. 4.

Requirements.

A grant recipient's program in the planning, development, or
implementation phase must include:

(1) integrated supportive services programming, as specified in paragraph (b), within a
specific community or geographic area for all ages of children and youth and their families
within that area, provided that services may be phased in to all ages over time; and

(2) a system for evaluating goals and outcomes as provided under subdivision 3,
paragraph (c).

Subd. 5.

Grants.

The commissioner shall award Tier 1 and Tier 2 grants to qualifying
recipients that can demonstrate a nonstate source of funds, including in-kind contributions.

Subd. 6.

Legislative report.

By December 15 of each odd-numbered year, the
commissioner shall submit a report on the education partnership program to the chairs and
ranking minority members of the legislative committees having jurisdiction over kindergarten
through grade 12 education, early childhood education, economic development, and human
services. At a minimum, the report must summarize grantee activities, identify grant
recipients and awards, analyze program performance measures and outcomes, and make
any recommendations for legislative changes.

EFFECTIVE DATE.

This section is effective July 1, 2017, and subdivision 6 applies
to reports due starting in calendar year 2019.

Sec. 2. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

Community education aid.

For community education aid under Minnesota
Statutes, section 124D.20:

$
483,000
.....
2018
$
393,000
.....
2019

The 2018 appropriation includes $53,000 for 2017 and $430,000 for 2018.

The 2019 appropriation includes $47,000 for 2018 and $346,000 for 2019.

Subd. 3.

Adults with disabilities program aid.

For adults with disabilities programs
under Minnesota Statutes, section 124D.56:

$
710,000
.....
2018
$
710,000
.....
2019

The 2018 appropriation includes $71,000 for 2017 and $639,000 for 2018.

The 2019 appropriation includes $71,000 for 2018 and $639,000 for 2019.

Subd. 4.

Hearing-impaired adults.

For programs for hearing-impaired adults under
Minnesota Statutes, section 124D.57:

$
70,000
.....
2018
$
70,000
.....
2019

Subd. 5.

School-age care aid.

For school-age care aid under Minnesota Statutes, section
124D.22:

$
1,000
.....
2018
$
1,000
.....
2019

The 2018 appropriation includes $0 for 2017 and $1,000 for 2018.

The 2019 appropriation includes $0 for 2018 and $1,000 for 2019.

Subd. 6.

Tier 1 grants.

(a) For education partnership program Tier 1 sustaining grants
under Minnesota Statutes, section 124D.99:

$
2,600,000
.....
2018
$
2,600,000
.....
2019

(b) Of the amounts in paragraph (a), $1,300,000 each year is for the Northside
Achievement Zone and $1,300,000 each year is for the St. Paul Promise Neighborhood.

(c) The base funding for Tier 1 sustaining grants is $2,600,000.

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

Subd. 7.

Tier 2 implementing grants.

(a) For Tier 2 implementing grants under
Minnesota Statutes, section 124D.99:

$
480,000
.....
2018
$
480,000
.....
2019

(b) For fiscal years 2018 and 2019 only, $160,000 each year is for the Northfield Healthy
Community Initiative in Northfield; $160,000 is for the Jones Family Foundation for the
Every Hand Joined program in Red Wing; and $160,000 is for the United Way of Central
Minnesota for the Partners for Student Success program.

(c) The base funding for Tier 2 implementing grants is $480,000. The commissioner
must competitively award all grants under this subdivision for fiscal year 2020 and later.

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

ARTICLE 10

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2016, section 124D.52, subdivision 7, is amended to read:


Subd. 7.

Performance tracking system.

(a) By July 1, 2000, each approved adult basic
education program must develop and implement a performance tracking system to provide
information necessary to comply with federal law and serve as one means of assessing the
effectiveness of adult basic education programs. For required reporting, longitudinal studies,
and program improvement, the tracking system must be designed to collect data on the
following core outcomes for learners, including English learners, who have completed
participating in the adult basic education program:

(1) demonstrated improvements in literacy skill levels in reading, writing, speaking the
English language, numeracy, problem solving, English language acquisition, and other
literacy skills;

(2) placement in, retention in, or completion of postsecondary education, training,
unsubsidized employment, or career advancement;

(3) receipt of a secondary school diploma or its recognized equivalent; and

(4) reduction in participation in the diversionary work program, Minnesota family
investment program, and food support education and training program.

(b) A district, group of districts, state agency, or private nonprofit organization providing
an adult basic education program may meet this requirement by developing a tracking system
based on either or both of the following methodologies:

(1) conducting a reliable follow-up survey; or

(2) submitting student information, including collected Social Security numbers for data
matching.

Data related to obtaining employment must be collected in the first quarter following
program completion or can be collected while the student is enrolled, if known. Data related
to employment retention must be collected in the third quarter following program exit.
Data
related to any other of the specified outcome outcomes may be collected at any time during
a program year.

(c) When a student in a program is requested to provide the student's Social Security
number, the student must be notified in a written form easily understandable to the student
that:

(1) providing the Social Security number is optional and no adverse action may be taken
against the student if the student chooses not to provide the Social Security number;

(2) the request is made under section 124D.52, subdivision 7;

(3) if the student provides the Social Security number, it will be used to assess the
effectiveness of the program by tracking the student's subsequent career; and

(4) the Social Security number will be shared with the Department of Education;
Minnesota State Colleges and Universities; Office of Higher Education; Department of
Human Services; and Department of Employment and Economic Development in order to
accomplish the purposes described in paragraph (a) and will not be used for any other
purpose or reported to any other governmental entities.

(d) Annually a district, group of districts, state agency, or private nonprofit organization
providing programs under this section must forward the tracking data collected to the
Department of Education. For the purposes of longitudinal studies on the employment status
of former students under this section, the Department of Education must forward the Social
Security numbers to the Department of Employment and Economic Development to
electronically match the Social Security numbers of former students with wage detail reports
filed under section 268.044. The results of data matches must, for purposes of this section
and consistent with the requirements of the United States Code, title 29, section 2871, of
the Workforce Investment Act of 1998
Workforce Innovation and Opportunity Act, be
compiled in a longitudinal form by the Department of Employment and Economic
Development and released to the Department of Education in the form of summary data
that does not identify the individual students. The Department of Education may release
this summary data. State funding for adult basic education programs must not be based on
the number or percentage of students who decline to provide their Social Security numbers
or on whether the program is evaluated by means of a follow-up survey instead of data
matching.

Sec. 2.

Minnesota Statutes 2016, section 124D.549, is amended to read:


124D.549 GENERAL EDUCATION DEVELOPMENT (GED) TESTS RULES;
COMMISSIONER
COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY
TEST
.

The commissioner may amend rules to reflect changes in the national minimum standard
score for passing the general education development (GED) tests
, in consultation with adult
basic education stakeholders, must select a high school equivalency test. The commissioner
may issue a high school equivalency diploma to a Minnesota resident 19 years of age or
older who has not earned a high school diploma, who has not previously been issued a
general education development (GED) certification, and who has exceeded or achieved a
minimum passing score on the equivalency test established by the publisher. The
commissioner of education may waive the minimum age requirement if supportive evidence
is provided by an employer or a recognized education or rehabilitation provider
.

Sec. 3.

Minnesota Statutes 2016, section 124D.55, is amended to read:


124D.55 GENERAL EDUCATION DEVELOPMENT (GED)
COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY TEST FEES.

The commissioner shall pay 60 percent of the fee that is charged to an eligible individual
for the full battery of general education development (GED) the commissioner-selected
high school equivalency
tests, but not more than $40 for an eligible individual.

For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged to
an eligible individual for the full battery of general education development (GED) tests, but
not more than the cost of one full battery of tests per year for any individual.

Sec. 4.

Minnesota Statutes 2016, section 256J.08, subdivision 38, is amended to read:


Subd. 38.

Full-time student.

"Full-time student" means a person who is enrolled in a
graded or ungraded primary, intermediate, secondary, GED commissioner of
education-selected high school equivalency
preparatory, trade, technical, vocational, or
postsecondary school, and who meets the school's standard for full-time attendance.

Sec. 5.

Minnesota Statutes 2016, section 256J.08, subdivision 39, is amended to read:


Subd. 39.

General educational development or GED Commissioner of
education-selected high school equivalency
.

"General educational development" or "GED"
"Commissioner of education-selected high school equivalency" means the general educational
development
high school equivalency certification issued by the commissioner of education
as an equivalent to a secondary school diploma under Minnesota Rules, part 3500.3100,
subpart 4
section 124D.549.

Sec. 6. APPROPRIATIONS.

Subdivision 1.

Department of Education.

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

Subd. 2.

Adult basic education aid.

For adult basic education aid under Minnesota
Statutes, section 124D.531:

$
50,010,000
.....
2018
$
51,497,000
.....
2019

The 2018 appropriation includes $4,881,000 for 2017 and $45,129,000 for 2018.

The 2019 appropriation includes $5,014,000 for 2018 and $46,483,000 for 2019.

Subd. 3.

High school equivalency tests.

For payment of 60 percent of the costs of the
commissioner-selected high school equivalency tests under Minnesota Statutes, section
124D.55:

$
125,000
.....
2018
$
125,000
.....
2019

Sec. 7. REVISOR'S INSTRUCTION.

In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute the
term "commissioner-selected high school equivalency" or similar term for "general education
development," "GED," or similar terms for wherever the term refers to the tests or programs
leading to a certification issued by the commissioner of education as an equivalency to a
secondary diploma.

Sec. 8. REPEALER.

Minnesota Rules, part 3500.3100, subpart 4, is repealed.

ARTICLE 11

STATE AGENCIES

Section 1.

Minnesota Statutes 2016, section 122A.14, subdivision 9, is amended to read:


Subd. 9.

Fee.

Each person licensed by the Board of School Administrators shall pay
the board a fee of $75, collected each fiscal year. When transmitting notice of the license
fee, the board also must notify the licensee of the penalty for failing to pay the fee within
the time specified by the board. The board may provide a lower fee for persons on retired
or inactive status. After receiving notice from the board, any licensed school administrator
who does not pay the fee in the given fiscal year shall have all administrative licenses held
by the person automatically suspended, without the right to a hearing, until the fee has been
paid to the board. If the board suspends a licensed school administrator for failing to pay
the fee, it must immediately notify the district currently employing the school administrator
of the school administrator's suspension. The executive secretary shall deposit the fees in
the educator licensure account in the special revenue fund in the state treasury.

EFFECTIVE DATE.

This section is effective July 1, 2019.

Sec. 2.

[122A.175] SPECIAL REVENUE FUND ACCOUNTS; EDUCATOR
LICENSURE AND BACKGROUND CHECKS.

Subdivision 1.

Educator licensure account.

An educator licensure account is created
in the special revenue fund. Applicant licensure fees received by the Department of
Education, the Board of Teaching, or the Board of School Administrators must be deposited
in the educator licensure account. Any funds appropriated from this account that remain
unexpended at the end of the biennium cancel to the educator licensure account in the special
revenue fund.

Subd. 2.

Background check account.

An educator licensure background check account
is created in the special revenue fund. The Department of Education, the Board of Teaching,
and the Board of School Administrators must deposit all payments submitted by license
applicants for criminal background checks conducted by the Bureau of Criminal
Apprehension in the educator licensure background check account. Amounts in the account
are annually appropriated to the commissioner of education for payment to the superintendent
of the Bureau of Criminal Apprehension for the costs of background checks on applicants
for licensure.

EFFECTIVE DATE.

This section is effective July 1, 2019.

Sec. 3.

Minnesota Statutes 2016, section 122A.18, subdivision 7c, is amended to read:


Subd. 7c.

Temporary military license.

The Board of Teaching shall establish a
temporary license in accordance with section 197.4552 for teaching. The fee for a temporary
license under this subdivision shall be $87.90 for an online application or $86.40 for a paper
application. The board must deposit the fees received from applicants in the educator
licensure account in the special revenue fund.

EFFECTIVE DATE.

This section is effective July 1, 2019.

Sec. 4.

Minnesota Statutes 2016, section 122A.18, subdivision 8, is amended to read:


Subd. 8.

Background checks.

(a) The Board of Teaching and the commissioner of
education must request a criminal history background check from the superintendent of the
Bureau of Criminal Apprehension on all first-time teaching applicants for licenses under
their jurisdiction. Applicants must include with their licensure applications:

(1) an executed criminal history consent form, including fingerprints; and

(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension
for the fee for conducting
payment to conduct the criminal history background check. The
Board of Teaching and the commissioner of education must deposit payments received
under this subdivision in the educator licensure background check account in the special
revenue fund.

(b) The superintendent of the Bureau of Criminal Apprehension shall perform the
background check required under paragraph (a) by retrieving criminal history data as defined
in section 13.87 and shall also conduct a search of the national criminal records repository.
The superintendent is authorized to exchange fingerprints with the Federal Bureau of
Investigation for purposes of the criminal history check. The superintendent shall recover
the cost to the bureau of a background check through the fee charged to the applicant under
paragraph (a).

(c) The Board of Teaching or the commissioner of education may issue a license pending
completion of a background check under this subdivision, but must notify the individual
that the individual's license may be revoked based on the result of the background check.

EFFECTIVE DATE.

This section is effective July 1, 2019.

Sec. 5.

Minnesota Statutes 2016, section 122A.21, subdivision 1, is amended to read:


Subdivision 1.

Licensure applications.

Each applicant submitting an application for
the issuance, renewal, or extension of
to the Board of Teaching to issue, renew, or extend
a teaching license to teach, including applications for licensure via portfolio under subdivision
2, must be accompanied by include a processing fee of $57. The processing fee for a teacher's
license and for the licenses of supervisory personnel must be paid to the executive secretary
of the appropriate board and deposited in the educator licensure account in the special
revenue fund
. The executive secretary of the board shall deposit the fees with the
commissioner of management and budget.
The fees as set by the board are nonrefundable
for applicants not qualifying for a license. However, a fee must be refunded by the
commissioner of management and budget must refund a fee in any case in which the applicant
already holds a valid unexpired license. The board may waive or reduce fees for applicants
who apply at the same time for more than one license.

EFFECTIVE DATE.

This section is effective July 1, 2019.

Sec. 6.

Minnesota Statutes 2016, section 122A.21, subdivision 2, is amended to read:


Subd. 2.

Licensure via portfolio.

(a) An eligible candidate may use licensure via portfolio
to obtain a professional five-year teaching license or to add a licensure field, consistent with
applicable Board of Teaching licensure rules.

(b) A candidate for a professional five-year teaching license must submit to the Educator
Licensing Division at the department one portfolio demonstrating pedagogical competence
and one portfolio demonstrating content competence.

(c) A candidate seeking to add a licensure field must submit to the Educator Licensing
Division at the department one portfolio demonstrating content competence.

(d) The Board of Teaching must notify a candidate who submits a portfolio under
paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not
the portfolio was approved. If the portfolio was not approved, the board must immediately
inform the candidate how to revise the portfolio to successfully demonstrate the requisite
competence. The candidate may resubmit a revised portfolio at any time and the Educator
Licensing Division at the department must approve or disapprove the portfolio within 60
calendar days of receiving it.

(e) A candidate must pay to the executive secretary of the Board of Teaching a $300 fee
for the first portfolio submitted for review and a $200 fee for any portfolio submitted
subsequently. The revenue generated from Board of Teaching executive secretary must
deposit
the fee must be deposited in an education the educator licensure portfolio account
in the special revenue fund. The fees set by the Board of Teaching are nonrefundable for
applicants not qualifying for a license. The Board of Teaching may waive or reduce fees
for candidates based on financial need.