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H.F. No. 2, 5th Engrossment - 86th Legislative Session (2009-2010)   Posted on May 13, 2009

1.1A bill for an act
1.2relating to state government; providing for policy and funding for family, adult,
1.3and prekindergarten through grade 12 education including general education,
1.4education excellence, special programs, facilities and technology, libraries,
1.5nutrition, accounting, early childhood education, prevention, self-sufficiency,
1.6lifelong learning, state agencies, pupil transportation, forecast adjustments,
1.7and technical corrections; requiring reports; requiring studies; appropriating
1.8money;amending Minnesota Statutes 2008, sections 13.32, by adding a
1.9subdivision; 16A.06, subdivision 11; 119A.52; 120A.22, subdivisions 7, 12;
1.10120A.40; 120B.02; 120B.022, subdivision 1; 120B.023, subdivision 2; 120B.11,
1.11subdivision 5; 120B.30; 120B.31, subdivisions 1, 3, 4; 120B.35; 120B.36;
1.12121A.41, subdivisions 7, 10; 121A.43; 122A.06, subdivision 4; 122A.07,
1.13subdivisions 2, 3; 122A.09, subdivisions 4, 7; 122A.18, subdivisions 2a, 4;
1.14122A.31, subdivision 4; 122A.40, subdivisions 6, 8; 122A.41, subdivisions 3,
1.155; 122A.413, subdivision 2; 122A.414, subdivision 2b; 122A.60, subdivision 2;
1.16123A.05; 123A.06; 123A.08; 123A.73, subdivisions 4, 5; 123B.02, subdivision
1.1721; 123B.03, subdivision 1; 123B.10, subdivision 1; 123B.14, subdivision 7;
1.18123B.143, subdivision 1; 123B.51, by adding a subdivision; 123B.54; 123B.57,
1.19subdivision 1; 123B.59, subdivisions 2, 3, 3a; 123B.70, subdivision 1; 123B.71,
1.20subdivisions 1, 8, 9, 12; 123B.77, subdivision 3; 123B.79, subdivision 7;
1.21123B.81, subdivisions 3, 4, 5; 123B.83, subdivision 3; 123B.92, subdivision
1.221; 124D.095, subdivisions 2, 3, 4, 7, 10; 124D.10; 124D.11, subdivision 9;
1.23124D.128, subdivisions 2, 3; 124D.13, subdivision 13; 124D.135, subdivision
1.243; 124D.15, subdivision 3; 124D.19, subdivisions 10, 14; 124D.42, subdivision
1.256, by adding a subdivision; 124D.522; 124D.68, subdivisions 2, 3, 4, 5;
1.26124D.83, subdivision 4; 124D.86, subdivisions 1, 1a, 1b; 125A.02; 125A.07;
1.27125A.08; 125A.091; 125A.11, subdivision 1; 125A.15; 125A.28; 125A.51;
1.28125A.57, subdivision 2; 125A.61, subdivision 1; 125A.62, subdivision 8;
1.29125A.63, subdivisions 2, 4; 125A.744, subdivision 3; 125A.76, subdivision
1.301; 125B.26; 126C.05, subdivisions 2, 15, 20; 126C.10, subdivisions 24, 34,
1.31by adding a subdivision; 126C.15, subdivisions 2, 4; 126C.17, subdivision
1.329; 126C.40, subdivision 6; 126C.41, subdivision 2; 126C.44; 127A.08, by
1.33adding a subdivision; 127A.47, subdivisions 5, 7; 134.31, subdivision 4a,
1.34by adding a subdivision; 134.34, subdivisions 1, 4; 169.011, subdivision 71;
1.35169.443, subdivision 9; 169.4501, subdivision 1; 169.4503, subdivision 20,
1.36by adding a subdivision; 169.454, subdivision 13; 169A.03, subdivision 23;
1.37171.01, subdivision 22; 171.02, subdivisions 2, 2a; 171.321, subdivisions 1,
1.384, 5; 299A.297; 471.975; 475.58, subdivision 1, as amended if enacted; Laws
1.392007, chapter 146, article 1, section 24, subdivisions 2, as amended, 4, as
2.1amended, 5, as amended, 6, as amended, 7, as amended, 8, as amended; article
2.22, section 46, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as
2.3amended, 9, as amended; article 3, section 24, subdivisions 3, as amended, 4, as
2.4amended, 7; article 4, section 16, subdivisions 2, as amended, 6, as amended, 8,
2.5as amended; article 5, section 13, subdivisions 2, as amended, 3, as amended;
2.6article 9, section 17, subdivisions 2, as amended, 4, as amended, 8, as amended,
2.79, as amended, 13, as amended; Laws 2008, chapter 363, article 2, section 46,
2.8subdivision 1; proposing coding for new law in Minnesota Statutes, chapters
2.9120B; 122A; 123B; 124D; 125A; 127A; repealing Minnesota Statutes 2008,
2.10sections 120B.362; 120B.39; 121A.27; 121A.66; 121A.67, subdivision 1;
2.11122A.32; 122A.628; 122A.75; 125A.05; Minnesota Rules, parts 3525.0210,
2.12subparts 5, 6, 9, 13, 17, 29, 30, 34, 43, 46, 47; 3525.0400; 3525.1100, subpart 2,
2.13item F; 3525.2445; 3525.2900, subpart 5; 3525.4220.
2.14BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.15ARTICLE 1
2.16GENERAL EDUCATION

2.17    Section 1. Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:
2.18    Subd. 11. Permanent school fund reporting. The commissioner shall biannually
2.19annually report to the Permanent School Fund Advisory Committee and the legislature
2.20on the management of the permanent school trust fund that shows how the commissioner
2.21the amount of the permanent school fund transfer and information about the investment of
2.22the permanent school fund provided by the State Board of Investment. The State Board of
2.23Investment shall provide information about how they maximized the long-term economic
2.24return of the permanent school trust fund.

2.25    Sec. 2. Minnesota Statutes 2008, section 120A.40, is amended to read:
2.26120A.40 SCHOOL CALENDAR.
2.27(a) Except for learning programs during summer, flexible learning year programs
2.28authorized under sections 124D.12 to 124D.127, and learning year programs under section
2.29124D.128 , a district must not commence an elementary or secondary school year before
2.30Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops
2.31may be held before Labor Day. Districts that enter into cooperative agreements are
2.32encouraged to adopt similar school calendars.
2.33(b) A district may begin the school year on any day before Labor Day:
2.34(1) to accommodate a construction or remodeling project of $400,000 or more
2.35affecting a district school facility.;
2.36(2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35
2.37with a district that qualifies under clause (1); or
3.1A school (3) if the district that agrees to the same schedule with a school district
3.2in an adjoining state also may begin the school year before Labor Day as authorized
3.3under this paragraph.

3.4    Sec. 3. Minnesota Statutes 2008, section 123A.73, subdivision 4, is amended to read:
3.5    Subd. 4. Consolidation; maximum authorized referendum revenues. (a) As
3.6of the effective date of a consolidation pursuant to section 123A.48, if the plan for
3.7consolidation so provides, or if the plan for consolidation makes no provision concerning
3.8referendum revenues, the authorization for all referendum revenues previously approved
3.9by the voters of all affected districts for those districts pursuant to section 126C.17,
3.10subdivision 9
, or its predecessor provision shall be recalculated as provided in this
3.11subdivision. The referendum revenue authorization for the newly created district shall
3.12be the revenue per resident marginal cost pupil unit that would raise an amount equal
3.13to the combined dollar amount of the referendum revenues authorized by each of the
3.14component districts for the year preceding the consolidation, unless the referendum
3.15revenue authorization of the newly created district is subsequently modified pursuant to
3.16section 126C.17, subdivision 9.
3.17(b) The referendum allowance for a consolidated district in the years following
3.18consolidation equals the average of the consolidating districts' existing authorities for
3.19those years, weighted by the districts' resident marginal cost pupil units in the year
3.20preceding consolidation. For purposes of this calculation, the referendum authorities used
3.21for individual districts shall not decrease from year to year until such time as all existing
3.22authorities for all the consolidating districts have fully expired, but shall increase if they
3.23were originally approved with consumer price index-based or other annual increases.
3.24(c) The referendum revenue authorization for the newly created district shall continue
3.25for a period of time equal to the longest period authorized for any component district.
3.26EFFECTIVE DATE.This section is effective for revenue for fiscal years 2010
3.27and later.

3.28    Sec. 4. Minnesota Statutes 2008, section 123A.73, subdivision 5, is amended to read:
3.29    Subd. 5. Alternative method. (a) As of the effective date of a consolidation
3.30pursuant to section 123A.48, if the plan for consolidation so provides, the authorization
3.31for all referendum revenues previously approved by the voters of all affected districts for
3.32those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision
3.33shall be combined as provided in this subdivision. The referendum revenue authorization
3.34for the newly created district may be any allowance per resident marginal cost pupil unit
4.1provided in the plan for consolidation, but may not exceed the allowance per resident
4.2marginal cost pupil unit that would raise an amount equal to the combined dollar amount
4.3of the referendum revenues authorized by each of the component districts for the year
4.4preceding the consolidation.
4.5(b) The referendum allowance for a consolidated district in the years following
4.6consolidation equals the average of the consolidating districts' existing authorities for
4.7those years, weighted by the districts' resident marginal cost pupil units in the year
4.8preceding consolidation. For purposes of this calculation, the referendum authorities used
4.9for individual districts shall not decrease from year to year until such time as all existing
4.10authorities for all the consolidating districts have fully expired, but shall increase if they
4.11were originally approved with consumer price index-based or other annual increases.
4.12(c) The referendum revenue authorization for the newly created district shall
4.13continue for a period of time equal to the longest period authorized for any component
4.14district. The referendum revenue authorization for the newly created district may be
4.15modified pursuant to section 126C.17, subdivision 9.

4.16    Sec. 5. Minnesota Statutes 2008, section 123B.02, subdivision 21, is amended to read:
4.17    Subd. 21. Wind energy conversion system. The board, or more than one board
4.18acting jointly under the authority granted by section 471.59, may construct, acquire,
4.19own in whole or in part, operate, and sell and retain and spend the payment received
4.20from selling energy from a wind energy conversion system, as defined in section
4.21216C.06, subdivision 19 . The An individual school board's share of the installed
4.22capacity of the wind energy conversion systems authorized by this subdivision must not
4.23exceed 3.3 megawatts of nameplate capacity, provided that if more than one board is
4.24acting jointly, each board may have a separate share of no more than 3.3 megawatts of
4.25nameplate capacity. A board owning, operating, or selling energy from a wind energy
4.26conversion system must integrate information about wind energy conversion systems in its
4.27educational programming. The board, or more than one board acting jointly under the
4.28authority granted by section 471.59, may be a limited partner in a partnership, a member
4.29of a limited liability company, or a shareholder in a corporation, established for the sole
4.30purpose of constructing, acquiring, owning in whole or in part, financing, or operating a
4.31wind energy conversion system for the benefit of the district or districts in accordance
4.32with this section. A board individually, or acting jointly, or an entity of which a board is a
4.33limited partner, member, or shareholder, may not sell, transmit, or distribute the electrical
4.34energy at retail or provide for end use of the electrical energy at an off-site facility of the
5.1board or entity. Nothing in this subdivision modifies the exclusive service territories or
5.2exclusive right to serve as provided in sections 216B.37 to 216B.43.
5.3EFFECTIVE DATE.This section is effective the day following final enactment.

5.4    Sec. 6. Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:
5.5    Subd. 3. Statement for comparison and correction. (a) By November 30 of the
5.6calendar year of the submission of the unaudited financial data, the district must provide to
5.7the commissioner audited financial data for the preceding fiscal year. The audit must be
5.8conducted in compliance with generally accepted governmental auditing standards, the
5.9federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
5.10of the State Auditor. An audited financial statement prepared in a form which will allow
5.11comparison with and correction of material differences in the unaudited financial data
5.12shall be submitted to the commissioner and the state auditor by December 31. The audited
5.13financial statement must also provide a statement of assurance pertaining to uniform
5.14financial accounting and reporting standards compliance and a copy of the management
5.15letter submitted to the district by the school district's auditor.
5.16(b) By January February 15 of the calendar year following the submission of the
5.17unaudited financial data, the commissioner shall convert the audited financial data
5.18required by this subdivision into the consolidated financial statement format required
5.19under subdivision 1a and publish the information on the department's Web site.

5.20    Sec. 7. Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:
5.21    Subd. 3. Failure to limit expenditures. If a district does not limit its expenditures in
5.22accordance with this section, the commissioner may so notify the appropriate committees
5.23of the legislature by no later than January 1 February 15 of the year following the end
5.24of that fiscal year.

5.25    Sec. 8. Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:
5.26    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006,
5.27when a school district provides instruction and services outside the district of residence,
5.28board and lodging, and any tuition to be paid, shall be paid by the district of residence.
5.29The tuition rate to be charged for any child with a disability, excluding a pupil for whom
5.30tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
5.31the sum of (1) the actual cost of providing special instruction and services to the child
5.32including a proportionate amount for special transportation and unreimbursed building
5.33lease and debt service costs for facilities used primarily for special education, plus (2)
6.1the amount of general education revenue and referendum aid attributable to the pupil,
6.2minus (3) the amount of special education aid for children with a disability received
6.3on behalf of that child, minus (4) if the pupil receives special instruction and services
6.4outside the regular classroom for more than 60 percent of the school day, the amount of
6.5general education revenue and referendum aid, excluding portions attributable to district
6.6and school administration, district support services, operations and maintenance, capital
6.7expenditures, and pupil transportation, attributable to that pupil for the portion of time
6.8the pupil receives special instruction and services outside of the regular classroom. If
6.9the boards involved do not agree upon the tuition rate, either board may apply to the
6.10commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
6.11a date for a hearing or request a written statement from each board, giving each board
6.12at least ten days' notice, and after the hearing or review of the written statements the
6.13commissioner must make an order fixing the tuition rate, which is binding on both school
6.14districts. General education revenue and referendum equalization aid attributable to a
6.15pupil must be calculated using the resident district's average general education revenue
6.16and referendum equalization aid per adjusted pupil unit.
6.17    (b) For fiscal year 2007 and later, when a school district provides special instruction
6.18and services for a pupil with a disability as defined in section 125A.02 outside the district
6.19of residence, excluding a pupil for whom an adjustment to special education aid is
6.20calculated according to section 127A.47, subdivision 7, paragraph (e), special education
6.21aid paid to the resident district must be reduced by an amount equal to (1) the actual
6.22cost of providing special instruction and services to the pupil, including a proportionate
6.23amount for special transportation and unreimbursed building lease and debt service costs
6.24for facilities used primarily for special education, plus (2) the amount of general education
6.25revenue and referendum equalization aid attributable to that pupil, calculated using the
6.26resident district's average general education revenue and referendum equalization aid
6.27per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
6.28secondary sparsity revenue, minus (3) the amount of special education aid for children
6.29with a disability received on behalf of that child, minus (4) if the pupil receives special
6.30instruction and services outside the regular classroom for more than 60 percent of the
6.31school day, the amount of general education revenue and referendum equalization aid,
6.32excluding portions attributable to district and school administration, district support
6.33services, operations and maintenance, capital expenditures, and pupil transportation,
6.34attributable to that pupil for the portion of time the pupil receives special instruction
6.35and services outside of the regular classroom, calculated using the resident district's
6.36average general education revenue and referendum equalization aid per adjusted pupil unit
7.1excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
7.2and the serving district's basic skills revenue, elementary sparsity revenue and secondary
7.3sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
7.4served by a cooperative unit without a fiscal agent school district, the general education
7.5revenue and referendum equalization aid attributable to a pupil must be calculated using
7.6the resident district's average general education revenue and referendum equalization aid
7.7excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
7.8revenue. Special education aid paid to the district or cooperative providing special
7.9instruction and services for the pupil must be increased by the amount of the reduction in
7.10the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
7.11and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
7.12expenditures on the resident school district's books of account under sections 123B.75
7.13and 123B.76. If the resident district's special education aid is insufficient to make the full
7.14adjustment, the remaining adjustment shall be made to other state aid due to the district.
7.15    (c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
7.16paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
7.17receive special education and related services, a site approved under section 125A.515,
7.18an intermediate district, a special education cooperative, or a school district that served
7.19as the applicant agency for a group of school districts for federal special education aids
7.20for fiscal year 2006 may apply to the commissioner for authority to charge the resident
7.21district an additional amount to recover any remaining unreimbursed costs of serving
7.22pupils with a disability. The application must include a description of the costs and the
7.23calculations used to determine the unreimbursed portion to be charged to the resident
7.24district. Amounts approved by the commissioner under this paragraph must be included
7.25in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
7.26subdivision 7
, paragraph (d) or (e), as applicable.
7.27    (d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
7.28(d) and (e), "general education revenue and referendum equalization aid" means the sum
7.29of the general education revenue according to section 126C.10, subdivision 1, excluding
7.30alternative teacher compensation revenue, plus the referendum equalization aid according
7.31to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
7.327, paragraphs (a) to (c).

7.33    Sec. 9. Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:
7.34    Subd. 2. Foreign exchange pupils. Notwithstanding section 124D.02, subdivision
7.353
, or any other law to the contrary, a foreign exchange pupil enrolled in a district under a
8.1cultural exchange program registered with the Office of the Secretary of State under
8.2section 5A.02 may be counted as a resident pupil for the purposes of this chapter
8.3and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has
8.4graduated from high school or the equivalent.

8.5    Sec. 10. Minnesota Statutes 2008, section 126C.10, is amended by adding a
8.6subdivision to read:
8.7    Subd. 8a. Sparsity revenue for school districts that close facilities. A school
8.8district that closes a school facility is eligible for elementary and secondary sparsity
8.9revenue equal to the greater of the amounts calculated under subdivisions 6, 7, and 8 or
8.10the total amount of sparsity revenue for the previous fiscal year if the school board of the
8.11district has adopted a written resolution stating that the district intends to close the school
8.12facility, but cannot proceed with the closure without the adjustment to sparsity revenue
8.13authorized by this subdivision. The written resolution must be filed with the commissioner
8.14of education at least 60 days prior to the start of the fiscal year for which aid under this
8.15subdivision is first requested.
8.16EFFECTIVE DATE.This section is effective the day following final enactment
8.17for revenue for fiscal years 2010 and later.

8.18    Sec. 11. Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:
8.19    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years
8.202007 and later, 2008, and 2009, the basic alternative teacher compensation aid for a
8.21school district with a plan approved under section 122A.414, subdivision 2b, equals 65
8.2273.1 percent of the alternative teacher compensation revenue under section 122A.415,
8.23subdivision 1
. The basic alternative teacher compensation aid for an intermediate school
8.24district or charter school with a plan approved under section 122A.414, subdivisions 2a
8.25and 2b
, if the recipient is a charter school, equals $260 times the number of pupils enrolled
8.26in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
8.27year for a charter school in the first year of operation, times the ratio of the sum of the
8.28alternative teacher compensation aid and alternative teacher compensation levy for all
8.29participating school districts to the maximum alternative teacher compensation revenue
8.30for those districts under section 122A.415, subdivision 1.
8.31    (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid for
8.32a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent
8.33of the alternative teacher compensation revenue under section 122A.415, subdivision 1.
8.34The basic alternative teacher compensation aid for an intermediate school district or
9.1charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
9.2the recipient is a charter school, equals $260 times the number of pupils enrolled in the
9.3school on October 1 of the previous year, or on October 1 of the current year for a charter
9.4school in the first year of operation, times the ratio of the sum of the alternative teacher
9.5compensation aid and alternative teacher compensation levy for all participating school
9.6districts to the maximum alternative teacher compensation revenue for those districts
9.7under section 122A.415, subdivision 1.
9.8(b) (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
9.91
, the state total basic alternative teacher compensation aid entitlement must not exceed
9.10$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
9.11of alternative teacher compensation aid approved under section 122A.415 so as not to
9.12exceed these limits.
9.13EFFECTIVE DATE.This section is effective the day following final enactment.

9.14    Sec. 12. Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:
9.15    Subd. 2. Building allocation. (a) A district must allocate its compensatory
9.16revenue to each school building in the district where the children who have generated the
9.17revenue are served unless the school district has received permission under Laws 2005,
9.18First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue
9.19according to student performance measures developed by the school board.
9.20    (b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
9.21amount of compensatory revenue that the district receives to school sites according to a
9.22plan adopted by the school board. The money reallocated under this paragraph must be
9.23spent for the purposes listed in subdivision 1, but may be spent on students in any grade,
9.24including students attending school readiness or other prekindergarten programs.
9.25    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
9.26means education site as defined in section 123B.04, subdivision 1.
9.27    (d) If the pupil is served at a site other than one owned and operated by the district,
9.28the revenue shall be paid to the district and used for services for pupils who generate
9.29the revenue Notwithstanding section 123A. 26, subdivision 1, compensatory revenue
9.30generated by students served at a cooperative unit shall be paid to the cooperative unit.
9.31    (e) A district with school building openings, school building closings, changes
9.32in attendance area boundaries, or other changes in programs or student demographics
9.33between the prior year and the current year may reallocate compensatory revenue among
9.34sites to reflect these changes. A district must report to the department any adjustments it
9.35makes according to this paragraph and the department must use the adjusted compensatory
10.1revenue allocations in preparing the report required under section 123B.76, subdivision 3,
10.2paragraph (c).

10.3    Sec. 13. Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:
10.4    Subd. 4. Separate accounts. Each district and cooperative unit that receives basic
10.5skills revenue shall maintain separate accounts to identify expenditures for salaries and
10.6programs related to basic skills revenue.

10.7    Sec. 14. Minnesota Statutes 2008, section 126C.17, subdivision 9, is amended to read:
10.8    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
10.9subdivision 1
, may be increased in the amount approved by the voters of the district at a
10.10referendum called for the purpose. The referendum may be called by the board or shall be
10.11called by the board upon written petition of qualified voters of the district. The referendum
10.12must be conducted one or two calendar years before the increased levy authority, if
10.13approved, first becomes payable. Only one election to approve an increase may be held
10.14in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
10.15paragraph (a), the referendum must be held on the first Tuesday after the first Monday
10.16in November. The ballot must state the maximum amount of the increased revenue per
10.17resident marginal cost pupil unit. The ballot may state a schedule, determined by the
10.18board, of increased revenue per resident marginal cost pupil unit that differs from year
10.19to year over the number of years for which the increased revenue is authorized or may
10.20state that the amount shall increase annually by the rate of inflation. For this purpose, the
10.21rate of inflation shall be the annual inflationary increase calculated under subdivision 2,
10.22paragraph (b). The ballot may state that existing referendum levy authority is expiring. In
10.23this case, the ballot may also compare the proposed levy authority to the existing expiring
10.24levy authority, and express the proposed increase as the amount, if any, over the expiring
10.25referendum levy authority. The ballot must designate the specific number of years, not to
10.26exceed ten, for which the referendum authorization applies. The ballot, including a ballot
10.27on the question to revoke or reduce the increased revenue amount under paragraph (c),
10.28must abbreviate the term "per resident marginal cost pupil unit" as "per pupil." The notice
10.29required under section 275.60 may be modified to read, in cases of renewing existing
10.30levies at the same amount per pupil as in the previous year:
10.31"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
10.32TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
10.33SCHEDULED TO EXPIRE."
11.1    The ballot may contain a textual portion with the information required in this
11.2subdivision and a question stating substantially the following:
11.3    "Shall the increase in the revenue proposed by (petition to) the board of .........,
11.4School District No. .., be approved?"
11.5    If approved, an amount equal to the approved revenue per resident marginal cost
11.6pupil unit times the resident marginal cost pupil units for the school year beginning in
11.7the year after the levy is certified shall be authorized for certification for the number of
11.8years approved, if applicable, or until revoked or reduced by the voters of the district at a
11.9subsequent referendum.
11.10    (b) The board must prepare and deliver by first class mail at least 15 days but no more
11.11than 30 days before the day of the referendum to each taxpayer a notice of the referendum
11.12and the proposed revenue increase. The board need not mail more than one notice to any
11.13taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
11.14those shown to be owners on the records of the county auditor or, in any county where
11.15tax statements are mailed by the county treasurer, on the records of the county treasurer.
11.16Every property owner whose name does not appear on the records of the county auditor
11.17or the county treasurer is deemed to have waived this mailed notice unless the owner
11.18has requested in writing that the county auditor or county treasurer, as the case may be,
11.19include the name on the records for this purpose. The notice must project the anticipated
11.20amount of tax increase in annual dollars for typical residential homesteads, agricultural
11.21homesteads, apartments, and commercial-industrial property within the school district.
11.22    The notice for a referendum may state that an existing referendum levy is expiring
11.23and project the anticipated amount of increase over the existing referendum levy in
11.24the first year, if any, in annual dollars for typical residential homesteads, agricultural
11.25homesteads, apartments, and commercial-industrial property within the district.
11.26    The notice must include the following statement: "Passage of this referendum will
11.27result in an increase in your property taxes." However, in cases of renewing existing levies,
11.28the notice may include the following statement: "Passage of this referendum extends an
11.29existing operating referendum at the same amount per pupil as in the previous year."
11.30    (c) A referendum on the question of revoking or reducing the increased revenue
11.31amount authorized pursuant to paragraph (a) may be called by the board and shall be called
11.32by the board upon the written petition of qualified voters of the district. A referendum to
11.33revoke or reduce the revenue amount must state the amount per resident marginal cost
11.34pupil unit by which the authority is to be reduced. Revenue authority approved by the
11.35voters of the district pursuant to paragraph (a) must be available to the school district at
11.36least once before it is subject to a referendum on its revocation or reduction for subsequent
12.1years. Only one revocation or reduction referendum may be held to revoke or reduce
12.2referendum revenue for any specific year and for years thereafter.
12.3    (d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of
12.4qualified voters in excess of 15 percent of the registered voters of the district on the day
12.5the petition is filed with the board. A referendum invoked by petition must be held on the
12.6date specified in paragraph (a).
12.7    (e) The approval of 50 percent plus one of those voting on the question is required to
12.8pass a referendum authorized by this subdivision.
12.9    (f) (e) At least 15 days before the day of the referendum, the district must submit a
12.10copy of the notice required under paragraph (b) to the commissioner and to the county
12.11auditor of each county in which the district is located. Within 15 days after the results
12.12of the referendum have been certified by the board, or in the case of a recount, the
12.13certification of the results of the recount by the canvassing board, the district must notify
12.14the commissioner of the results of the referendum.
12.15EFFECTIVE DATE.This section is effective for petitions filed after July 1, 2009.

12.16    Sec. 15. Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:
12.17    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
12.18by, the commissioner in accordance with the procedures and limits in subdivision 1,
12.19paragraphs (a) and (b), a district, as defined in this subdivision, may:
12.20(1) purchase real or personal property under an installment contract or may lease
12.21real or personal property with an option to purchase under a lease purchase agreement, by
12.22which installment contract or lease purchase agreement title is kept by the seller or vendor
12.23or assigned to a third party as security for the purchase price, including interest, if any; and
12.24(2) annually levy the amounts necessary to pay the district's obligations under the
12.25installment contract or lease purchase agreement.
12.26(b) The obligation created by the installment contract or the lease purchase
12.27agreement must not be included in the calculation of net debt for purposes of section
12.28475.53 , and does not constitute debt under other law. An election is not required in
12.29connection with the execution of the installment contract or the lease purchase agreement.
12.30(c) The proceeds of the levy authorized by this subdivision must not be used to
12.31acquire a facility to be primarily used for athletic or school administration purposes.
12.32(d) For the purposes of this subdivision, "district" means:
12.33(1) a school district required to have a comprehensive plan for the elimination of
12.34segregation which is eligible for revenue under section 124D.86, subdivision 3, clause (1),
12.35(2), or (3), and whose plan has been determined by the commissioner to be in compliance
13.1with Department of Education rules relating to equality of educational opportunity and
13.2school desegregation and, for a district eligible for revenue under section 124D.86,
13.3subdivision 3
, clause (4) or (5), where the acquisition of property under this subdivision is
13.4determined by the commissioner to contribute to the implementation of the desegregation
13.5plan; or
13.6(2) a school district that participates in a joint program for interdistrict desegregation
13.7with a district defined in clause (1) if the facility acquired under this subdivision is to
13.8be primarily used for the joint program and the commissioner determines that the joint
13.9programs are being undertaken to implement the districts' desegregation plan.
13.10(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
13.11or rent a district-owned building to itself does not apply to levies otherwise authorized
13.12by this subdivision.
13.13(f) For the purposes of this subdivision, any references in subdivision 1 to building
13.14or land shall include personal property.

13.15    Sec. 16. Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:
13.16    Subd. 2. Retired employee health benefits. (a) A district may levy an amount up
13.17to the amount the district is required by the collective bargaining agreement in effect
13.18on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
13.19licensed and nonlicensed employees who have terminated services in the employing
13.20district and withdrawn from active teaching service or other active service, as applicable,
13.21before July 1, 1992, and to pay for health insurance or unreimbursed medical expenses
13.22for licensed and nonlicensed employees who have terminated services in the employing
13.23district and withdrawn from active teaching service or other active service, as applicable
13.24before July 1, 1998, if a sunset clause is in effect for the current collective bargaining
13.25agreement. The total amount of the levy each year may not exceed $600,000.
13.26(b) In addition to the levy authority granted under paragraph (a), a school district
13.27may levy for other postemployment benefits expenses. For purposes of this subdivision
13.28"postemployment benefits" means benefits giving rise to a liability under Statement No.
13.2945 of the Government Accounting Standards Board. A district seeking levy authority
13.30under this subdivision must:
13.31(1) create or have created an actuarial liability to pay postemployment benefits to
13.32employees or officers after their termination of service;
13.33(2) have a sunset clause in effect for the current collective bargaining agreement
13.34as required by paragraph (a); and
14.1(3) apply for the authority in the form and manner required by the commissioner
14.2of education.
14.3If the total levy authority requested under this paragraph exceeds the amount established
14.4in paragraph (c), the commissioner must proportionately reduce each district's maximum
14.5levy authority under this subdivision.
14.6(c) The maximum levy authority under paragraph (b) must not exceed the following
14.7amounts:
14.8(1) $9,242,000 for taxes payable in 2010;
14.9(2) $29,863,000 for taxes payable in 2011; and
14.10(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
14.11the sum of the previous year's authority and $14,000,000.

14.12    Sec. 17. Minnesota Statutes 2008, section 126C.44, is amended to read:
14.13126C.44 SAFE SCHOOLS LEVY.
14.14    (a) Each district may make a levy on all taxable property located within the district
14.15for the purposes specified in this section. The maximum amount which may be levied
14.16for all costs under this section shall be equal to $30 multiplied by the district's adjusted
14.17marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
14.18used for directly funding the following purposes or for reimbursing the cities and counties
14.19who contract with the district for the following purposes: (1) to pay the costs incurred for
14.20the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
14.21services in the district's schools; (2) to pay the costs for a drug abuse prevention program
14.22as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
14.23(3) to pay the costs for a gang resistance education training curriculum in the district's
14.24schools; (4) to pay the costs for security in the district's schools and on school property; (5)
14.25to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
14.26opt-in suicide prevention tools, and violence prevention measures taken by the school
14.27district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
14.28school social workers, licensed school psychologists, and licensed alcohol and chemical
14.29dependency counselors to help provide early responses to problems. For expenditures
14.30under clause (1), the district must initially attempt to contract for services to be provided
14.31by peace officers or sheriffs with the police department of each city or the sheriff's
14.32department of the county within the district containing the school receiving the services. If
14.33a local police department or a county sheriff's department does not wish to provide the
14.34necessary services, the district may contract for these services with any other police or
14.35sheriff's department located entirely or partially within the school district's boundaries.
15.1    (b) A school district that is a member of an intermediate school district may
15.2include in its authority under this section the costs associated with safe schools activities
15.3authorized under paragraph (a) for intermediate school district programs. This authority
15.4must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
15.5This authority is in addition to any other authority authorized under this section. Revenue
15.6raised under this paragraph must be transferred to the intermediate school district.
15.7    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
15.8unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
15.9clause (6). The district must annually certify either that: (1) its total spending on services
15.10provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
15.11its expenditures for these purposes, excluding amounts spent under this section, in the
15.12previous year plus the amount spent under this section; or (2) that the district's full-time
15.13equivalent number of employees listed in paragraph (a), clause (6), is not less than the
15.14number for the previous year.
15.15EFFECTIVE DATE.This section is effective for revenue for fiscal years 2010
15.16and later.

15.17    Sec. 18. Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:
15.18    Subd. 7. Alternative attendance programs. The general education aid and special
15.19education aid for districts must be adjusted for each pupil attending a nonresident district
15.20under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
15.21must be made according to this subdivision.
15.22    (a) General education aid paid to a resident district must be reduced by an amount
15.23equal to the referendum equalization aid attributable to the pupil in the resident district.
15.24    (b) General education aid paid to a district serving a pupil in programs listed in this
15.25subdivision must be increased by an amount equal to the greater of (1) the referendum
15.26equalization aid attributable to the pupil in the nonresident district; or (2) the product of
15.27the district's open enrollment concentration index, the maximum amount of referendum
15.28revenue in the first tier, and the district's net open enrollment pupil units for that year. A
15.29district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
15.30lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
15.31served to its resident pupil units for that year and 0.2. This clause does not apply to a
15.32school district where more than 50 percent of the open enrollment students are enrolled
15.33solely in online learning courses.
16.1    (c) If the amount of the reduction to be made from the general education aid of the
16.2resident district is greater than the amount of general education aid otherwise due the
16.3district, the excess reduction must be made from other state aids due the district.
16.4    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
16.5area learning center, operated according to paragraph (f), providing special instruction and
16.6services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
16.7section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
16.8be equal to (1) the actual cost of providing special instruction and services to the pupil,
16.9including a proportionate amount for special transportation and unreimbursed building
16.10lease and debt service costs for facilities used primarily for special education, minus (2)
16.11if the pupil receives special instruction and services outside the regular classroom for
16.12more than 60 percent of the school day, the amount of general education revenue and
16.13referendum aid attributable to that pupil for the portion of time the pupil receives special
16.14instruction and services outside of the regular classroom, excluding portions attributable to
16.15district and school administration, district support services, operations and maintenance,
16.16capital expenditures, and pupil transportation, minus (3) special education aid attributable
16.17to that pupil, that is received by the district providing special instruction and services.
16.18For purposes of this paragraph, general education revenue and referendum equalization
16.19aid attributable to a pupil must be calculated using the serving district's average general
16.20education revenue and referendum equalization aid per adjusted pupil unit.
16.21    (e) For fiscal year 2007 and later, special education aid paid to a resident district
16.22must be reduced by an amount equal to (1) the actual cost of providing special instruction
16.23and services, including special transportation and unreimbursed building lease and debt
16.24service costs for facilities used primarily for special education, for a pupil with a disability,
16.25as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
16.26in a program listed in this subdivision, minus (2) if the pupil receives special instruction
16.27and services outside the regular classroom for more than 60 percent of the school day,
16.28the amount of general education revenue and referendum equalization aid attributable
16.29to that pupil for the portion of time the pupil receives special instruction and services
16.30outside of the regular classroom, excluding portions attributable to district and school
16.31administration, district support services, operations and maintenance, capital expenditures,
16.32and pupil transportation, minus (3) special education aid attributable to that pupil, that is
16.33received by the district providing special instruction and services. For purposes of this
16.34paragraph, general education revenue and referendum equalization aid attributable to a
16.35pupil must be calculated using the serving district's average general education revenue
16.36and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
17.1district or cooperative providing special instruction and services for the pupil, or to the
17.2fiscal agent district for a cooperative, must be increased by the amount of the reduction
17.3in the aid paid to the resident district. If the resident district's special education aid is
17.4insufficient to make the full adjustment, the remaining adjustment shall be made to other
17.5state aids due to the district.
17.6    (f) An area learning center operated by a service cooperative, intermediate district,
17.7education district, or a joint powers cooperative may elect through the action of the
17.8constituent boards to charge the resident district tuition for pupils rather than to have the
17.9general education revenue paid to a fiscal agent school district. Except as provided in
17.10paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of
17.11the district average general education revenue per pupil unit minus an amount equal to the
17.12product of the formula allowance according to section 126C.10, subdivision 2, times .0485,
17.13calculated without basic skills compensatory revenue and transportation sparsity revenue,
17.14times the number of pupil units for pupils attending the area learning center, plus the
17.15amount of compensatory revenue generated by pupils attending the area learning center.

17.16    Sec. 19. Minnesota Statutes 2008, section 475.58, subdivision 1, as amended by 2009
17.17H.F. No. 1298, article 2, section 36, if enacted, is amended to read:
17.18    Subdivision 1. Approval by electors; exceptions. Obligations authorized by law or
17.19charter may be issued by any municipality upon obtaining the approval of a majority of
17.20the electors voting on the question of issuing the obligations, but an election shall not be
17.21required to authorize obligations issued:
17.22    (1) to pay any unpaid judgment against the municipality;
17.23    (2) for refunding obligations;
17.24    (3) for an improvement or improvement program, which obligation is payable wholly
17.25or partly from the proceeds of special assessments levied upon property specially benefited
17.26by the improvement or by an improvement within the improvement program, or from tax
17.27increments, as defined in section 469.174, subdivision 25, including obligations which are
17.28the general obligations of the municipality, if the municipality is entitled to reimbursement
17.29in whole or in part from the proceeds of such special assessments or tax increments and
17.30not less than 20 percent of the cost of the improvement or the improvement program is to
17.31be assessed against benefited property or is to be paid from the proceeds of federal grant
17.32funds or a combination thereof, or is estimated to be received from tax increments;
17.33    (4) payable wholly from the income of revenue producing conveniences;
17.34    (5) under the provisions of a home rule charter which permits the issuance of
17.35obligations of the municipality without election;
18.1    (6) under the provisions of a law which permits the issuance of obligations of a
18.2municipality without an election;
18.3    (7) to fund pension or retirement fund liabilities of a municipality or postemployment
18.4benefit liabilities of a school district pursuant to section 475.52, subdivision 6;
18.5    (8) under a capital improvement plan under section 373.40;
18.6    (9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
18.7the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
18.8subdivision 4g
, paragraph (b);
18.9(10) to fund postemployment benefit liabilities pursuant to section 475.52,
18.10subdivision 6
, of a municipality, other than a school district, if the liabilities are limited to:
18.11(i) satisfying the requirements of section 471.61, subdivision 2b; and
18.12(ii) other postemployment benefits, which the municipality no longer provides to
18.13employees hired after a date before the obligations are issued; and
18.14(11) under section 475.755.
18.15EFFECTIVE DATE.This section is effective the day following final enactment,
18.16except that the changes made to clause (7) are effective for obligations sold after October
18.171, 2009.

18.18    Sec. 20. ST. LOUIS COUNTY SCHOOL CLOSING.
18.19Independent School District No. 2142, St. Louis County, is eligible for sparsity
18.20revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal
18.21years 2010 and later if the board has adopted the required written resolution at any time
18.22prior to the start of the 2009-2010 school year.
18.23EFFECTIVE DATE.This section is effective the day following final enactment.

18.24    Sec. 21. ONETIME GENERAL EDUCATION REVENUE REDUCTION
18.25REPLACED WITH FEDERAL FUNDS FROM THE FISCAL STABILIZATION
18.26ACCOUNT.
18.27    Subdivision 1. General education reduction. Notwithstanding Minnesota Statutes,
18.28sections 126C.13 and 126C.20, the state total general education aid for fiscal year 2010 is
18.29reduced by $500,000,000. The aid reduction must be allocated among school districts and
18.30charter schools in proportion to the school district or charter school's general education
18.31revenue for fiscal year 2008 under Minnesota Statutes, section 126C.10, or Minnesota
18.32Statutes, section 124D.11, subdivisions 1 and 2.
19.1    Subd. 2. Allocation of federal fiscal stabilization funds. The commissioner must
19.2offset the onetime general education aid reduction for each school district and charter
19.3school under subdivision 1 with an equal amount of federal aid from the fiscal stabilization
19.4account in the federal fund.
19.5    Subd. 3. Primary payee. The commissioner of finance may designate a primary
19.6payee for each state fiscal stabilization award. The primary payee must transfer the amount
19.7of stabilization funds appropriated by law to the state agencies and higher education
19.8institutions designated to receive these funds in law.

19.9    Sec. 22. FISCAL STABILIZATION ACCOUNT.
19.10The fiscal stabilization account is created in the federal fund in the state treasury. All
19.11money received by the state under title XIV of the American Recovery and Reinvestment
19.12Act of 2009, Public Law 111-5, division A, must be credited to the fiscal stabilization
19.13account. Money in the account must not be spent except pursuant to a direct appropriation
19.14by law. When all money credited and to be credited to the account from the American
19.15Recovery and Reinvestment Act of 2009 has been spent, the commissioner of finance
19.16shall close the account.
19.17EFFECTIVE DATE.This section is effective the day following final enactment.

19.18    Sec. 23. EQUALIZING FACTORS.
19.19    The commissioner shall adjust each referendum market value equalizing factor
19.20established under Minnesota Statutes, chapter 126C, by dividing the equalizing factor by
19.21the ratio of the statewide referendum market value as calculated using the definition
19.22of referendum market value that was in effect prior to the 2009 legislative session for
19.23assessment year 2009 to the statewide referendum market value that is in effect after the
19.242009 legislative session for that assessment year.
19.25EFFECTIVE DATE.This section is effective for taxes payable in 2010 and later.

19.26    Sec. 24. APPROPRIATIONS; STATE.
19.27    Subdivision 1. Department of Education. The sums indicated in this section are
19.28appropriated from the general fund to the Department of Education for the fiscal years
19.29designated.
19.30    Subd. 2. General education aid. For general education aid under Minnesota
19.31Statutes, section 126C.13, subdivision 4:
20.1
$
5,195,504,000
.....
2010
20.2
$
5,626,994,000
.....
2011
20.3The 2010 appropriation includes $555,864,000 for 2009 and $4,639,640,000 for
20.42010.
20.5The 2011 appropriation includes $500,976,000 for 2010 and $5,126,018,000 for
20.62011.
20.7    Subd. 3. Enrollment options transportation. For transportation of pupils attending
20.8postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
20.9of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
20.10
$
48,000
.....
2010
20.11
$
52,000
.....
2011
20.12    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
20.13127A.49:
20.14
$
1,175,000
.....
2010
20.15
$
1,034,000
.....
2011
20.16The 2010 appropriation includes $140,000 for 2009 and $1,035,000 for 2010.
20.17The 2011 appropriation includes $115,000 for 2010 and $919,000 for 2011.
20.18    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
20.19Statutes, section 123A.485:
20.20
$
854,000
.....
2010
20.21
$
927,000
.....
2011
20.22The 2010 appropriation includes $0 for 2009 and $854,000 for 2010.
20.23The 2011 appropriation includes $94,000 for 2010 and $833,000 for 2011.
20.24    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
20.25Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
20.26
$
17,250,000
.....
2010
20.27
$
17,889,000
.....
2011
20.28The 2010 appropriation includes $1,647,000 for 2009 and $15,603,000 for 2010.
20.29The 2011 appropriation includes $1,733,000 for 2010 and $16,156,000 for 2011.
20.30    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
20.31under Minnesota Statutes, section 123B.92, subdivision 9:
20.32
$
22,159,000
.....
2010
20.33
$
22,712,000
.....
2011
21.1The 2010 appropriation includes $2,077,000 for 2009 and $20,082,000 for 2010.
21.2The 2011 appropriation includes $2,231,000 for 2010 and $20,481,000 for 2011.
21.3    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
21.4690, Warroad, to operate the Angle Inlet School:
21.5
$
65,000
.....
2010
21.6
$
65,000
.....
2011
21.7    Subd. 9. Independent School District No. 239, Rushford-Peterson. For school
21.8district flood enrollment impact aid as a result of the floods of August 2007:
21.9
$
158,000
.....
2010
21.10The base appropriation for later fiscal years is $0.
21.11    Subd. 10. Lancaster. For a grant to Independent School District No. 356, Lancaster,
21.12to replace the loss of sparsity revenue:
21.13
$
100,000
.....
2010
21.14
$
100,000
.....
2011
21.15The base appropriation for later fiscal years is $0.
21.16    Subd. 11. Compensatory revenue pilot project. For grants for participation in the
21.17compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
21.18article 1, section 50:
21.19
$
2,175,000
.....
2010
21.20
$
2,175,000
.....
2011
21.21Of this amount, $1,500,000 in each year is for a grant to Independent School District
21.22No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School
21.23District No. 279, Osseo; $160,000 in each year is for a grant to Independent School
21.24District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School
21.25District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent
21.26School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
21.27School District No. 833, South Washington.
21.28If a grant to a specific school district is not awarded, the commissioner may increase
21.29the aid amounts to any of the remaining participating school districts.
21.30This appropriation is part of the base budget for subsequent fiscal years.

21.31    Sec. 25. APPROPRIATIONS; FEDERAL FUND.
22.1    Subdivision 1. Department of Education. The sums indicated in this section are
22.2appropriated from the fiscal stabilization account in the federal fund to the commissioner
22.3of education for the fiscal years designated.
22.4    Subd. 2. General education offset. To offset the onetime general education revenue
22.5reduction under section 23:
22.6
$
500,000,000
.....
2010
22.7Any balance does not cancel but is available for obligation until September 30, 2011.

22.8ARTICLE 2
22.9EDUCATION EXCELLENCE

22.10    Section 1. Minnesota Statutes 2008, section 13.32, is amended by adding a subdivision
22.11to read:
22.12    Subd. 10a. Access to student records; school conferences. (a) A parent or guardian
22.13of a student may designate an individual, defined under paragraph (c), to participate in a
22.14school conference involving the child of the parent or guardian. The parent or guardian
22.15must provide the school with prior written consent allowing the significant individual to
22.16participate in the conference and to receive any data on the child of the consenting parent
22.17or guardian that are necessary and relevant to the conference discussions. The consenting
22.18parent or guardian may withdraw consent, in writing, at any time.
22.19    (b) A school may accept the following form, or another consent to release student
22.20data form, as sufficient to meet the requirements of this subdivision:
22.21"CONSENT TO PARTICIPATE IN CONFERENCES AND
22.22RECEIVE STUDENT DATA
22.23    I, ........................................... (Name of parent or guardian), as parent or guardian of
22.24........................................... (Name of child), consent to allow ...........................................
22.25(Name of an individual) to participate in school conferences and receive student data
22.26relating to the above-named child, consistent with Minnesota Statutes, section 13.32,
22.27subdivision 10a. I understand that I may withdraw my consent, upon written request, at
22.28any time.
22.29
(Signature of parent or guardian)
22.30
(Date)"
22.31    (c) For purposes of this section, "an individual" means one additional adult
22.32designated by a child's parent or guardian to attend school-related activities and
22.33conferences.
23.1EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
23.2later.

23.3    Sec. 2. Minnesota Statutes 2008, section 120A.22, subdivision 12, is amended to read:
23.4    Subd. 12. Legitimate exemptions. A parent, guardian, or other person having
23.5control of a child may apply to a school district to have the child excused from attendance
23.6for the whole or any part of the time school is in session during any school year.
23.7Application may be made to any member of the board, a truant officer, a principal, or the
23.8superintendent. The school district may state in its school attendance policy that it may ask
23.9the student's parent or legal guardian to verify in writing the reason for the child's absence
23.10from school. A note from a physician or a licensed mental health professional stating that
23.11the child cannot attend school is a valid excuse. The board of the district in which the
23.12child resides may approve the application upon the following being demonstrated to the
23.13satisfaction of that board:
23.14(1) that the child's bodily physical or mental condition health is such as to prevent
23.15attendance at school or application to study for the period required, which includes:
23.16(i) child illness, medical, dental, orthodontic, or counseling appointments;
23.17(ii) family emergencies;
23.18(iii) the death or serious illness or funeral of an immediate family member;
23.19(iv) active duty in any military branch of the United States; or
23.20(v) the child has a condition that requires ongoing treatment for a mental health
23.21diagnosis; or
23.22(vi) other exemptions included in the district's school attendance policy;
23.23(2) that the child has already completed state and district standards required for
23.24graduation from high school; or
23.25(3) that it is the wish of the parent, guardian, or other person having control of the
23.26child, that the child attend for a period or periods not exceeding in the aggregate three
23.27hours in any week, a school for religious instruction conducted and maintained by some
23.28church, or association of churches, or any Sunday school association incorporated under
23.29the laws of this state, or any auxiliary thereof. This school for religious instruction must
23.30be conducted and maintained in a place other than a public school building, and it must
23.31not, in whole or in part, be conducted and maintained at public expense. However, a child
23.32may be absent from school on such days as the child attends upon instruction according to
23.33the ordinances of some church.

24.1    Sec. 3. Minnesota Statutes 2008, section 120B.02, is amended to read:
24.2120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
24.3STUDENTS.
24.4(a) The legislature is committed to establishing rigorous academic standards for
24.5Minnesota's public school students. To that end, the commissioner shall adopt in rule
24.6statewide academic standards. The commissioner shall not prescribe in rule or otherwise
24.7the delivery system, classroom assessments, or form of instruction that school sites must
24.8use. For purposes of this chapter, a school site is a separate facility, or a separate program
24.9within a facility that a local school board recognizes as a school site for funding purposes.
24.10(b) All commissioner actions regarding the rule must be premised on the following:
24.11(1) the rule is intended to raise academic expectations for students, teachers, and
24.12schools;
24.13(2) any state action regarding the rule must evidence consideration of school district
24.14autonomy; and
24.15(3) the Department of Education, with the assistance of school districts, must make
24.16available information about all state initiatives related to the rule to students and parents,
24.17teachers, and the general public in a timely format that is appropriate, comprehensive, and
24.18readily understandable.
24.19(c) When fully implemented, the requirements for high school graduation in
24.20Minnesota must require students to satisfactorily complete, as determined by the school
24.21district, the course credit requirements under section 120B.24, all state academic standards
24.22or local academic standards where state standards do not apply, and: successfully pass
24.23graduation examinations as required under section 120B.30.
24.24(1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
24.25basic skills test requirements; and
24.26(2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
24.27the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
24.28(d) The commissioner shall periodically review and report on the state's assessment
24.29process.
24.30(e) School districts are not required to adopt specific provisions of the federal
24.31School-to-Work programs.
24.32EFFECTIVE DATE.This section is effective August 1, 2012, and applies to
24.33students entering the 9th grade in the 2012-2013 school year and later.

24.34    Sec. 4. Minnesota Statutes 2008, section 120B.022, subdivision 1, is amended to read:
25.1    Subdivision 1. Elective standards. (a) A district must establish its own standards in
25.2the following subject areas:
25.3    (1) vocational and technical education; and
25.4    (2) world languages.
25.5    A school district must offer courses in all elective subject areas.
25.6    (b) World languages teachers and other school staff should develop and implement
25.7world languages programs that acknowledge and reinforce the language proficiency and
25.8cultural awareness that non-English language speakers already possess, and encourage
25.9students' proficiency in multiple world languages. Programs under this paragraph must
25.10encompass indigenous American Indian languages and cultures, among other world
25.11languages and cultures. The department shall consult with postsecondary institutions in
25.12developing related professional development opportunities.
25.13(c) Any Minnesota public, charter, or nonpublic school may award Minnesota
25.14World Language Proficiency Certificates or Minnesota World Language Proficiency High
25.15Achievement Certificates, consistent with this subdivision.
25.16The Minnesota World Language Proficiency Certificate recognizes students who
25.17demonstrate listening, speaking, reading, and writing language skills at the American
25.18Council on the Teaching of Foreign Languages' Intermediate-Low level on a valid and
25.19reliable assessment tool. For languages listed as Category 3 by the United States Foreign
25.20Service Institute or Category 4 by the United States Defense Language Institute, the
25.21standard is Intermediate-Low for listening and speaking and Novice-High for reading
25.22and writing.
25.23The Minnesota World Language Proficiency High Achievement Certificate
25.24recognizes students who demonstrate listening, speaking, reading, and writing language
25.25skills at the American Council on the Teaching of Foreign Languages' Pre-Advanced level
25.26for K-12 learners on a valid and reliable assessment tool. For languages listed as Category
25.273 by the United States Foreign Service Institute or Category 4 by the United States
25.28Defense Language Institute, the standard is Pre-Advanced for listening and speaking and
25.29Intermediate-Mid for reading and writing.

25.30    Sec. 5. Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to read:
25.31    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
25.32revise and appropriately embed technology and information literacy standards consistent
25.33with recommendations from school media specialists into the state's academic standards
25.34and graduation requirements and implement a review cycle for state academic standards
25.35and related benchmarks, consistent with this subdivision. During each review cycle, the
26.1commissioner also must examine the alignment of each required academic standard and
26.2related benchmark with the knowledge and skills students need for college readiness and
26.3advanced work in the particular subject area.
26.4(b) The commissioner in the 2006-2007 school year must revise and align the state's
26.5academic standards and high school graduation requirements in mathematics to require
26.6that students satisfactorily complete the revised mathematics standards, beginning in the
26.72010-2011 school year. Under the revised standards:
26.8(1) students must satisfactorily complete an algebra I credit by the end of eighth
26.9grade; and
26.10(2) students scheduled to graduate in the 2014-2015 school year or later must
26.11satisfactorily complete an algebra II credit or its equivalent.
26.12The commissioner also must ensure that the statewide mathematics assessments
26.13administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school
26.14year are aligned with the state academic standards in mathematics, consistent with section
26.15120B.30, subdivision 1, paragraph (b). The statewide 11th grade mathematics test
26.16administered to students under clause (2) beginning in the 2013-2014 school year must
26.17include algebra II test items that are aligned with corresponding state academic standards
26.18in mathematics. The commissioner must implement a review of the academic standards
26.19and related benchmarks in mathematics beginning in the 2015-2016 school year.
26.20(c) The commissioner in the 2007-2008 school year must revise and align the state's
26.21academic standards and high school graduation requirements in the arts to require that
26.22students satisfactorily complete the revised arts standards beginning in the 2010-2011
26.23school year. The commissioner must implement a review of the academic standards and
26.24related benchmarks in arts beginning in the 2016-2017 school year.
26.25(d) The commissioner in the 2008-2009 school year must revise and align the state's
26.26academic standards and high school graduation requirements in science to require that
26.27students satisfactorily complete the revised science standards, beginning in the 2011-2012
26.28school year. Under the revised standards, students scheduled to graduate in the 2014-2015
26.29school year or later must satisfactorily complete a chemistry or physics credit. The
26.30commissioner must implement a review of the academic standards and related benchmarks
26.31in science beginning in the 2017-2018 school year.
26.32(e) The commissioner in the 2009-2010 school year must revise and align the state's
26.33academic standards and high school graduation requirements in language arts to require
26.34that students satisfactorily complete the revised language arts standards beginning in the
26.352012-2013 school year. The commissioner must implement a review of the academic
26.36standards and related benchmarks in language arts beginning in the 2018-2019 school year.
27.1(f) The commissioner in the 2010-2011 school year must revise and align the state's
27.2academic standards and high school graduation requirements in social studies to require
27.3that students satisfactorily complete the revised social studies standards beginning in the
27.42013-2014 school year. The commissioner must implement a review of the academic
27.5standards and related benchmarks in social studies beginning in the 2019-2020 school year.
27.6(g) School districts and charter schools must revise and align local academic
27.7standards and high school graduation requirements in health, physical education, world
27.8languages, and career and technical education to require students to complete the revised
27.9standards beginning in a school year determined by the school district or charter school.
27.10School districts and charter schools must formally establish a periodic review cycle for
27.11the academic standards and related benchmarks in health, physical education, world
27.12languages, and career and technical education.
27.13EFFECTIVE DATE.This section is effective the day following final enactment.

27.14    Sec. 6. Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:
27.15    Subd. 5. Report. (a) By October 1 of each year, the school board shall use standard
27.16statewide reporting procedures the commissioner develops and adopt a report that includes
27.17the following:
27.18(1) student achievement goals for meeting state academic standards;
27.19(2) results of local assessment data, and any additional test data;
27.20(3) the annual school district improvement plans including staff development goals
27.21under section 122A.60;
27.22(4) information about district and learning site progress in realizing previously
27.23adopted improvement plans; and
27.24(5) the amount and type of revenue attributed to each education site as defined
27.25in section 123B.04.
27.26(b) The school board shall publish a summary of the report in the local newspaper
27.27with the largest circulation in the district, by mail, or by electronic means such as the
27.28district Web site. If electronic means are used, school districts must publish notice of the
27.29report in a periodical of general circulation in the district. School districts must make
27.30copies of the report available to the public on request. The board shall make a copy of the
27.31report available to the public for inspection. The board shall send a copy of the report to
27.32the commissioner of education by October 15 of each year.
27.33(c) The title of the report shall contain the name and number of the school district and
27.34read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
27.35must include at least the following information about advisory committee membership:
28.1(1) the name of each committee member and the date when that member's term
28.2expires;
28.3(2) the method and criteria the school board uses to select committee members; and
28.4(3) the date by which a community resident must apply to next serve on the
28.5committee.

28.6    Sec. 7. [120B.299] DEFINITIONS.
28.7    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
28.8    Subd. 2. Growth. "Growth" compares the difference in a student's achievement
28.9score at two or more distinct points in time.
28.10    Subd. 3. Value added. "Value added" is the amount of achievement a student
28.11demonstrates above an established baseline. The difference between the student's score
28.12and the baseline defines value added.
28.13    Subd. 4. Value-added growth. "Value-added growth" is based on a student's
28.14growth score. In a value-added growth system, the student's first test is the baseline, and
28.15the difference between the student's first and next test scores within a defined period is the
28.16measure of value added. Value-added growth models use student-level data to measure
28.17what portion of a student's growth can be explained by inputs related to the educational
28.18environment.
28.19    Subd. 5. Adequate yearly progress. A school or district makes "adequate yearly
28.20progress" if, for every student subgroup under the federal 2001 No Child Left Behind
28.21Act in the school or district, its proficiency index or other approved adjustments for
28.22performance, based on statewide assessment scores, meets or exceeds federal expectations.
28.23To make adequate yearly progress, the school or district also must satisfy applicable
28.24federal requirements related to student attendance, graduation, and test participation rates.
28.25    Subd. 6. State growth target. (a) "State growth target" is the average year-two
28.26assessment scores for students with similar year-one assessment scores.
28.27    (b) The state growth targets for each grade and subject are benchmarked as follows
28.28until the assessment scale changes:
28.29(1) beginning in the 2008-2009 school year, the state growth target for grades 3 to 8
28.30is benchmarked to 2006-2007 and 2007-2008 school year data;
28.31(2) beginning in the 2008-2009 school year the state growth target for grade 10 is
28.32benchmarked to 2005-2006 and 2006-2007 school year data;
28.33(3) for the 2008-2009 school year, the state growth target for grade 11 is
28.34benchmarked to 2005-2006 school year data; and
29.1(4) beginning in the 2009-2010 school year, the state growth target for grade 11 is
29.2benchmarked to 2005-2006 and 2006-2007 school year data.
29.3    (c) Each time before the assessment scale changes, a stakeholder group that includes
29.4assessment and evaluation directors and staff and researchers must recommend a new
29.5state growth target that the commissioner must consider when revising standards under
29.6section 120B.023, subdivision 2.
29.7    Subd. 7. Low growth. "Low growth" is an assessment score one-half standard
29.8deviation below the state growth target.
29.9    Subd. 8. Medium growth. "Medium growth" is an assessment score within one-half
29.10standard deviation above or below the state growth target.
29.11    Subd. 9. High growth. "High growth" is an assessment score one-half standard
29.12deviation or more above the state growth target.
29.13    Subd. 10. Proficiency. "Proficiency" for purposes of reporting growth on school
29.14performance report cards under section 120B.36, subdivision 1, means those students
29.15who, in the previous school year, scored at or above "meets standards" on the statewide
29.16assessments under section 120B.30. Each year, school performance report cards must
29.17separately display: (1) the numbers and percentages of students who achieved low growth,
29.18medium growth, and high growth and achieved proficiency in the previous school year;
29.19and (2) the numbers and percentages of students who achieved low growth, medium
29.20growth, and high growth and did not achieve proficiency in the previous school year.
29.21    Subd. 11. Growth and progress toward proficiency. The categories of low
29.22growth, medium growth, and high growth shall be used to indicate both (1) growth and (2)
29.23progress toward grade-level proficiency that is consistent with subdivision 10.
29.24EFFECTIVE DATE.This section is effective the day following final enactment.

29.25    Sec. 8. Minnesota Statutes 2008, section 120B.30, is amended to read:
29.26120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
29.27    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
29.28with appropriate technical qualifications and experience and stakeholders, consistent with
29.29subdivision 1a, shall include in the comprehensive assessment system, for each grade level
29.30to be tested, state-constructed tests developed from and aligned with the state's required
29.31academic standards under section 120B.021, include multiple choice questions, and be
29.32administered annually to all students in grades 3 through 8 and at the high school level. A
29.33State-developed test high school tests aligned with the state's required academic standards
29.34under section 120B.021 and administered to all high school students in a subject other than
30.1writing, developed after the 2002-2003 school year, must include both machine-scoreable
30.2and constructed response multiple choice questions. The commissioner shall establish
30.3one or more months during which schools shall administer the tests to students each
30.4school year. For students enrolled in grade 8 before the 2005-2006 school year, only
30.5Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
30.6basic skills testing requirements for a passing state notation. The passing scores of basic
30.7skills tests in reading and mathematics are the equivalent of 75 percent correct for students
30.8entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of
30.9administered in February 1998. Students who have not successfully passed a Minnesota
30.10basic skills test by the end of the 2011-2012 school year must pass the graduation-required
30.11assessments for diploma under paragraph (b).
30.12(b) The state assessment system must be aligned to the most recent revision of
30.13academic standards as described in section 120B.023 in the following manner:
30.14(1) mathematics;
30.15(i) grades 3 through 8 beginning in the 2010-2011 school year; and
30.16(ii) high school level beginning in the 2013-2014 school year;
30.17(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
30.18school year; and
30.19(3) language arts and reading; grades 3 through 8 and high school level beginning in
30.20the 2012-2013 school year.
30.21    (b) (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only
30.22the following options shall fulfill students' state graduation test requirements:
30.23    (1) for reading and mathematics:
30.24    (i) obtaining an achievement level equivalent to or greater than proficient as
30.25determined through a standard setting process on the Minnesota comprehensive
30.26assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
30.27score as determined through a standard setting process on the graduation-required
30.28assessment for diploma in grade 10 for reading and grade 11 for mathematics or
30.29subsequent retests;
30.30    (ii) achieving a passing score as determined through a standard setting process on the
30.31state-identified language proficiency test in reading and the mathematics test for English
30.32language learners or the graduation-required assessment for diploma equivalent of those
30.33assessments for students designated as English language learners;
30.34    (iii) achieving an individual passing score on the graduation-required assessment
30.35for diploma as determined by appropriate state guidelines for students with an individual
30.36education plan or 504 plan;
31.1    (iv) obtaining achievement level equivalent to or greater than proficient as
31.2determined through a standard setting process on the state-identified alternate assessment
31.3or assessments in grade 10 for reading and grade 11 for mathematics for students with
31.4an individual education plan; or
31.5    (v) achieving an individual passing score on the state-identified alternate assessment
31.6or assessments as determined by appropriate state guidelines for students with an
31.7individual education plan; and
31.8    (2) for writing:
31.9    (i) achieving a passing score on the graduation-required assessment for diploma;
31.10    (ii) achieving a passing score as determined through a standard setting process on
31.11the state-identified language proficiency test in writing for students designated as English
31.12language learners;
31.13    (iii) achieving an individual passing score on the graduation-required assessment
31.14for diploma as determined by appropriate state guidelines for students with an individual
31.15education plan or 504 plan; or
31.16    (iv) achieving an individual passing score on the state-identified alternate assessment
31.17or assessments as determined by appropriate state guidelines for students with an
31.18individual education plan.
31.19    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
31.20year to the 2009-2010 school year who do not pass the mathematics graduation-required
31.21assessment for diploma under paragraph (b) are eligible to receive a high school diploma
31.22with a passing state notation if they:
31.23(1) complete with a passing score or grade all state and local coursework and credits
31.24required for graduation by the school board granting the students their diploma;
31.25(2) participate in district-prescribed academic remediation in mathematics; and
31.26    (3) fully participate in at least two retests of the mathematics GRAD test or until
31.27they pass the mathematics GRAD test, whichever comes first. A school, district, or
31.28charter school must place a student's highest assessment score for each of the following
31.29assessments on the student's high school transcript: the mathematics Minnesota
31.30Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing
31.31Graduation-Required Assessment for Diploma, and when applicable, the mathematics
31.32Graduation-Required Assessment for Diploma and reading Graduation-Required
31.33Assessment for Diploma.
31.34In addition, the school board granting the students their diplomas may formally
31.35decide to include a notation of high achievement on the high school diplomas of those
32.1graduating seniors who, according to established school board criteria, demonstrate
32.2exemplary academic achievement during high school.
32.3(c) (e) The 3rd through 8th grade and high school level test results shall be available
32.4to districts for diagnostic purposes affecting student learning and district instruction and
32.5curriculum, and for establishing educational accountability. The commissioner must
32.6disseminate to the public the high school test results upon receiving those results.
32.7    (d) State (f) The 3rd through 8th grade and high school tests must be constructed
32.8and aligned with state academic standards. The commissioner shall determine the
32.9testing process and the order of administration shall be determined by the commissioner.
32.10The statewide results shall be aggregated at the site and district level, consistent with
32.11subdivision 1a.
32.12    (e) (g) In addition to the testing and reporting requirements under this section, the
32.13commissioner shall include the following components in the statewide public reporting
32.14system:
32.15    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
32.16school level that provides appropriate, technically sound accommodations, or alternate
32.17assessments, or exemptions consistent with applicable federal law, only with parent or
32.18guardian approval, for those very few students for whom the student's individual education
32.19plan team under sections 125A.05 and 125A.06 determines that the general statewide test
32.20is inappropriate for a student, or for a limited English proficiency student under section
32.21124D.59, subdivision 2;
32.22    (2) educational indicators that can be aggregated and compared across school
32.23districts and across time on a statewide basis, including average daily attendance, high
32.24school graduation rates, and high school drop-out rates by age and grade level;
32.25    (3) state results on the American College Test; and
32.26    (4) state results from participation in the National Assessment of Educational
32.27Progress so that the state can benchmark its performance against the nation and other
32.28states, and, where possible, against other countries, and contribute to the national effort
32.29to monitor achievement.
32.30    Subd. 1a. Statewide and local assessments; results. (a) For purposes
32.31of conforming with existing federal educational accountability requirements, the
32.32commissioner must develop reading, and mathematics, and science assessments for grades
32.333 through 8, state-developed high school reading and mathematics tests aligned with state
32.34academic standards, and science assessments under clause (2) that districts and sites must
32.35use to monitor student growth toward achieving those standards. The commissioner must
33.1not develop statewide assessments for academic standards in social studies, health and
33.2physical education, and the arts. The commissioner must require:
33.3    (1) annual reading and mathematics assessments in grades 3 through 8, and at
33.4the high school level for the 2005-2006 school year and later high school reading and
33.5mathematics tests; and
33.6    (2) annual science assessments in one grade in the grades 3 through 5 span, the
33.7grades 6 through 9 8 span, and a life sciences assessment in the grades 10 9 through 12
33.8span for the 2007-2008 school year and later, and the commissioner must not require
33.9students to achieve a passing score on high school science assessments as a condition of
33.10receiving a high school diploma.
33.11    (b) The commissioner must ensure that all statewide tests administered to elementary
33.12and secondary students measure students' academic knowledge and skills and not students'
33.13values, attitudes, and beliefs.
33.14    (c) Reporting of assessment results must:
33.15    (1) provide timely, useful, and understandable information on the performance of
33.16individual students, schools, school districts, and the state;
33.17    (2) include, by no later than the 2008-2009 school year, a value-added component
33.18that is in addition to a measure for student achievement growth over time growth indicator
33.19of student achievement under section 120B.35, subdivision 3, paragraph (b); and
33.20    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
33.21whether students have met the state's basic skills requirements; and
33.22    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
33.23whether students have met the state's academic standards.
33.24    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
33.25(1), the commissioner must include appropriate, technically sound accommodations or
33.26alternative assessments for the very few students with disabilities for whom statewide
33.27assessments are inappropriate and for students with limited English proficiency.
33.28    (e) A school, school district, and charter school must administer statewide
33.29assessments under this section, as the assessments become available, to evaluate student
33.30progress in achieving the proficiency in the context of the state's grade level academic
33.31standards. If a state assessment is not available, a school, school district, and charter
33.32school must determine locally if a student has met the required academic standards. A
33.33school, school district, or charter school may use a student's performance on a statewide
33.34assessment as one of multiple criteria to determine grade promotion or retention. A
33.35school, school district, or charter school may use a high school student's performance on a
34.1statewide assessment as a percentage of the student's final grade in a course, or place a
34.2student's assessment score on the student's transcript.
34.3    Subd. 2. Department of Education assistance. The Department of Education
34.4shall contract for professional and technical services according to competitive bidding
34.5procedures under chapter 16C for purposes of this section.
34.6    Subd. 3. Reporting. The commissioner shall report test data publicly and to
34.7stakeholders, including the performance achievement levels developed from students'
34.8unweighted test scores in each tested subject and a listing of demographic factors that
34.9strongly correlate with student performance. The commissioner shall also report data that
34.10compares performance results among school sites, school districts, Minnesota and other
34.11states, and Minnesota and other nations. The commissioner shall disseminate to schools
34.12and school districts a more comprehensive report containing testing information that
34.13meets local needs for evaluating instruction and curriculum.
34.14    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
34.15to provide public and parental access for review of basic skills tests, Minnesota
34.16Comprehensive Assessments, or any other such statewide test and assessment. Upon
34.17receiving a written request, the commissioner must make available to parents or guardians
34.18a copy of their student's actual responses to the test questions to be reviewed by the
34.19parent for their review.
34.20EFFECTIVE DATE.This section is effective the day following final enactment.
34.21Subdivision 1, paragraph (d), applies to the 2009-2010 through 2013-2014 school years
34.22only. Minnesota Statutes, section 120B.30, subdivision 1, paragraph (b), clause (1),
34.23item (ii), is not effective until July 1, 2010, and the legislature specifically authorizes
34.24the number, subject area, grade level, and consequence of a high school mathematics
34.25assessment program; if the legislature does not authorize the assessment program by July
34.261, 2010, the graduation-required assessment for diploma in grade 11 for mathematics
34.27under Minnesota Statutes, section 120B.30, subdivision 1, paragraph (c), remains in effect.

34.28    Sec. 9. Minnesota Statutes 2008, section 120B.31, subdivision 1, is amended to read:
34.29    Subdivision 1. Educational accountability and public reporting. Consistent
34.30with the process direction to adopt a results-oriented graduation rule statewide academic
34.31standards under section 120B.02, the department, in consultation with education and
34.32other system stakeholders, must establish a coordinated and comprehensive system of
34.33educational accountability and public reporting that promotes higher greater academic
34.34achievement, preparation for higher academic education, preparation for the world of
35.1work, citizenship under sections 120B.021, subdivision 1, clause (4), and 120B.024,
35.2paragraph (a), clause (4), and the arts.

35.3    Sec. 10. Minnesota Statutes 2008, section 120B.31, subdivision 3, is amended to read:
35.4    Subd. 3. Educational accountability. (a) The Independent Office of Educational
35.5Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
35.6section 28, subdivision 2, is established, and shall be funded through the Board of Regents
35.7of the University of Minnesota. The office shall advise the education committees of
35.8the legislature and the commissioner of education, at least on a biennial basis, on the
35.9degree to which the statewide educational accountability and reporting system includes a
35.10comprehensive assessment framework that measures school accountability for students
35.11achieving the goals described in the state's results-oriented high school graduation
35.12rule. The office shall determine and annually report to the legislature whether and how
35.13effectively:
35.14    (1) the statewide system of educational accountability utilizes uses multiple
35.15indicators to provide valid and reliable comparative and contextual data on students,
35.16schools, districts, and the state, and if not, recommend ways to improve the accountability
35.17reporting system;
35.18    (2) the commissioner makes statistical adjustments when reporting student data over
35.19time, consistent with clause (4);
35.20    (3) the commissioner uses indicators of student achievement growth a value-added
35.21growth indicator of student achievement over time and a value-added assessment model
35.22that estimates the effects of the school and school district on student achievement to
35.23measure and measures school performance, consistent with section 120B.36, subdivision
35.241
120B.35, subdivision 3, paragraph (b);
35.25    (4) the commissioner makes (3) data are available on students who do not pass one
35.26or more of the state's required GRAD tests and do not receive a diploma as a consequence,
35.27and categorizes these data are categorized according to gender, race, eligibility for free
35.28or reduced lunch, and English language proficiency; and
35.29    (5) the commissioner fulfills (4) the requirements under section 127A.095,
35.30subdivision 2
, are met.
35.31    (b) When the office reviews the statewide educational accountability and reporting
35.32system, it shall also consider:
35.33    (1) the objectivity and neutrality of the state's educational accountability system; and
35.34    (2) the impact of a testing program on school curriculum and student learning.

36.1    Sec. 11. Minnesota Statutes 2008, section 120B.31, subdivision 4, is amended to read:
36.2    Subd. 4. Statistical adjustments; student performance data. In developing
36.3policies and assessment processes to hold schools and districts accountable for high
36.4levels of academic standards under section 120B.021, the commissioner shall aggregate
36.5student data over time to report student performance and growth levels measured at the
36.6school, school district, regional, or and statewide level. When collecting and reporting
36.7the performance data, the commissioner shall: (1) acknowledge the impact of significant
36.8demographic factors such as residential instability, the number of single parent families,
36.9parents' level of education, and parents' income level on school outcomes; and (2)
36.10organize and report the data so that state and local policy makers can understand the
36.11educational implications of changes in districts' demographic profiles over time. Any
36.12report the commissioner disseminates containing summary data on student performance
36.13must integrate student performance and the demographic factors that strongly correlate
36.14with that performance.

36.15    Sec. 12. Minnesota Statutes 2008, section 120B.35, is amended to read:
36.16120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
36.17GROWTH.
36.18    Subdivision 1. Adequate yearly progress of schools and students School and
36.19student indicators of growth and achievement. The commissioner must develop and
36.20implement a system for measuring and reporting academic achievement and individual
36.21student progress growth, consistent with the statewide educational accountability and
36.22reporting system. The system components of the system must measure and separately
36.23report the adequate yearly progress of schools and the growth of individual students:
36.24students' current achievement in schools under subdivision 2; and individual students'
36.25educational progress growth over time under subdivision 3. The system also must include
36.26statewide measures of student academic achievement growth that identify schools with
36.27high levels of achievement growth, and also schools with low levels of achievement
36.28growth that need improvement. When determining a school's effect, the data must
36.29include both statewide measures of student achievement and, to the extent annual tests
36.30are administered, indicators of achievement growth that take into account a student's
36.31prior achievement. Indicators of achievement and prior achievement must be based on
36.32highly reliable statewide or districtwide assessments. Indicators that take into account a
36.33student's prior achievement must not be used to disregard a school's low achievement or to
36.34exclude a school from a program to improve low achievement levels. The commissioner
36.35by January 15, 2002, must submit a plan for integrating these components to the chairs of
37.1the legislative committees having policy and budgetary responsibilities for elementary
37.2and secondary education.
37.3    Subd. 2. Federal expectations for student academic achievement. (a) Each school
37.4year, a school district must determine if the student achievement levels at each school site
37.5meet state and local federal expectations. If student achievement levels at a school site do
37.6not meet state and local federal expectations and the site has not made adequate yearly
37.7progress for two consecutive school years, beginning with the 2001-2002 school year,
37.8the district must work with the school site to adopt a plan to raise student achievement
37.9levels to meet state and local federal expectations. The commissioner of education shall
37.10establish student academic achievement levels to comply with this paragraph.
37.11(b) School sites identified as not meeting federal expectations must develop
37.12continuous improvement plans in order to meet state and local federal expectations for
37.13student academic achievement. The department, at a district's request, must assist the
37.14district and the school site in developing a plan to improve student achievement. The plan
37.15must include parental involvement components.
37.16(c) The commissioner must:
37.17(1) provide assistance to assist school sites and districts identified as not meeting
37.18federal expectations; and
37.19(2) provide technical assistance to schools that integrate student progress
37.20achievement measures under subdivision 3 in into the school continuous improvement
37.21plan.
37.22(d) The commissioner shall establish and maintain a continuous improvement Web
37.23site designed to make data on every school and district available to parents, teachers,
37.24administrators, community members, and the general public.
37.25    Subd. 3. Student progress assessment State growth target; other state measures.
37.26(a) The state's educational assessment system component measuring individual students'
37.27educational progress must be growth is based, to the extent annual tests are administered,
37.28on indicators of achievement growth that show an individual student's prior achievement.
37.29Indicators of achievement and prior achievement must be based on highly reliable
37.30statewide or districtwide assessments.
37.31(b) The commissioner, in consultation with a stakeholder group that includes
37.32assessment and evaluation directors and staff and researchers must identify effective
37.33models for measuring individual student progress that enable a school district or school
37.34site to perform gains-based analysis, including evaluating the effects of the teacher,
37.35school, and school district on student achievement over time. At least one model must
37.36be a "value-added" assessment model that reliably estimates those effects for classroom
38.1settings where a single teacher teaches multiple subjects to the same group of students, for
38.2team teaching arrangements, and for other teaching circumstances. implement a model
38.3that uses a value-added growth indicator and includes criteria for identifying schools
38.4and school districts that demonstrate medium and high growth under section 120B.299,
38.5subdivisions 8 and 9, and may recommend other value-added measures under section
38.6120B.299, subdivision 3. The model may be used to advance educators' professional
38.7development and replicate programs that succeed in meeting students' diverse learning
38.8needs. Data on individual teachers generated under the model are personnel data under
38.9section 13.43. The model must allow users to:
38.10(1) report student growth consistent with this paragraph; and
38.11(2) for all student categories, report and compare aggregated and disaggregated state
38.12growth data using the nine student categories identified under the federal 2001 No Child
38.13Left Behind Act and two student gender categories of male and female, respectively,
38.14following appropriate reporting practices to protect nonpublic student data.
38.15The commissioner must report separate measures of student growth and proficiency,
38.16consistent with this paragraph.
38.17(c) If a district has an accountability plan that includes gains-based analysis or
38.18"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
38.19those measures in determining whether the district or school site meets expectations. The
38.20department must coordinate with the district in evaluating school sites and continuous
38.21improvement plans, consistent with best practices. When reporting student performance
38.22under section 120B.36, subdivision 1, the commissioner annually, beginning July 1,
38.232011, must report two core measures indicating the extent to which current high school
38.24graduates are being prepared for postsecondary academic and career opportunities:
38.25(1) a preparation measure indicating the number and percentage of high school
38.26graduates in the most recent school year who completed course work important to
38.27preparing them for postsecondary academic and career opportunities, consistent with
38.28the core academic subjects required for admission to Minnesota's public colleges and
38.29universities as determined by the Office of Higher Education under chapter 136A; and
38.30(2) a rigorous coursework measure indicating the number and percentage of high
38.31school graduates in the most recent school year who successfully completed one or more
38.32college-level advanced placement, international baccalaureate, postsecondary enrollment
38.33options including concurrent enrollment, other rigorous courses of study under section
38.34120B.021, subdivision 1a, or industry certification courses or programs.
38.35When reporting the core measures under clauses (1) and (2), the commissioner must also
38.36analyze and report separate categories of information using the nine student categories
39.1identified under the federal 2001 No Child Left Behind Act and two student gender
39.2categories of male and female, respectively following appropriate reporting practices to
39.3protect nonpublic student data.
39.4(d) When reporting student performance under section 120B.36, subdivision 1, the
39.5commissioner annually, beginning July 1, 2014, must report summary data on school
39.6safety and students' engagement and connection at school. The summary data under this
39.7paragraph are separate from and must not be used for any purpose related to measuring
39.8or evaluating the performance of classroom teachers. The commissioner, in consultation
39.9with qualified experts on student engagement and connection and classroom teachers,
39.10must identify highly reliable variables that generate summary data under this paragraph.
39.11The summary data may be used at school, district, and state levels only. Any data on
39.12individuals received, collected, or created that are used to generate the summary data
39.13under this paragraph are nonpublic data under section 13.02, subdivision 9.
39.14    Subd. 4. Improving schools. Consistent with the requirements of this section,
39.15beginning June 20, 2012, the commissioner of education must establish a second
39.16achievement benchmark to identify improving schools. The commissioner must
39.17recommend to annually report to the public and the legislature by February 15, 2002,
39.18indicators in addition to the achievement benchmark for identifying improving schools,
39.19including an indicator requiring a school to demonstrate ongoing successful use of best
39.20teaching practices the organizational and curricular practices implemented in those schools
39.21that demonstrate medium and high growth compared to the state growth target.
39.22    Subd. 5. Improving graduation rates for students with emotional or behavioral
39.23disorders. (a) A district must develop strategies in conjunction with parents of students
39.24with emotional or behavioral disorders and the county board responsible for implementing
39.25sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
39.26school, when the district has a drop-out rate for students with an emotional or behavioral
39.27disorder in grades 9 through 12 exceeding 25 percent.
39.28(b) A district must develop a plan in conjunction with parents of students with
39.29emotional or behavioral disorders and the local mental health authority to increase the
39.30graduation rates of students with emotional or behavioral disorders. A district with a
39.31drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
39.3212 that is in the top 25 percent of all districts shall submit a plan for review and oversight
39.33to the commissioner.
39.34EFFECTIVE DATE.Subdivision 3, paragraph (b), applies to students in the
39.352008-2009 school year and later. Subdivision 3, paragraph (c), applies to students in the
39.362010-2011 school year and later. Subdivision 3, paragraph (d), applies to data that are
40.1collected in the 2012-2013 school year and later and reported annually beginning July 1,
40.22014, consistent with advice the commissioner receives from recognized and qualified
40.3experts on student engagement and connection and classroom teachers. Subdivision 4
40.4applies in the 2011-2012 school year and later.

40.5    Sec. 13. Minnesota Statutes 2008, section 120B.36, is amended to read:
40.6120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
40.7    Subdivision 1. School performance report cards. (a) The commissioner shall use
40.8objective criteria based on levels of student performance to report at least student academic
40.9performance under section 120B.35, subdivision 2, the percentages of students showing
40.10low, medium, and high growth under section 120B.35, subdivision 3, paragraph (b),
40.11school safety and student engagement and connection under section 120B.35, subdivision
40.123, paragraph (d), rigorous coursework under section 120B.35, subdivision 3, paragraph
40.13(c), two separate student-to-teacher ratios that clearly indicate the definition of teacher
40.14consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios,
40.15and staff characteristics excluding salaries, with a value-added component added no later
40.16than the 2008-2009 school year student enrollment demographics, district mobility, and
40.17extracurricular activities. The report also must indicate a school's adequate yearly progress
40.18status, and must not set any designations applicable to high- and low-performing schools
40.19due solely to adequate yearly progress status.
40.20    (b) The commissioner shall develop, annually update, and post on the department
40.21Web site school performance report cards.
40.22    (c) The commissioner must make available the first performance report cards by
40.23November 2003, and during the beginning of each school year thereafter.
40.24    (d) A school or district may appeal its adequate yearly progress status in writing to
40.25the commissioner within 30 days of receiving the notice of its status. The commissioner's
40.26decision to uphold or deny an appeal is final.
40.27    (e) School performance report cards card data are nonpublic data under section
40.2813.02, subdivision 9 , until not later than ten days after the appeal procedure described in
40.29paragraph (d) concludes. The department shall annually post school performance report
40.30cards to its public Web site no later than September 1.
40.31    Subd. 2. Adequate yearly progress and other data. All data the department
40.32receives, collects, or creates for purposes of determining to determine adequate yearly
40.33progress designations status under Public Law 107-110, section 1116, set state growth
40.34targets, and determine student growth are nonpublic data under section 13.02, subdivision
40.359
, until not later than ten days after the appeal procedure described in subdivision 1,
41.1paragraph (d), concludes. Districts must provide parents sufficiently detailed summary
41.2data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The
41.3department shall annually post federal adequate yearly progress data and state student
41.4growth data to its public Web site no later than September 1.
41.5EFFECTIVE DATE.This section is effective the day following final enactment.

41.6    Sec. 14. Minnesota Statutes 2008, section 122A.06, subdivision 4, is amended to read:
41.7    Subd. 4. Comprehensive, scientifically based scientifically based reading
41.8instruction. (a) "Comprehensive, scientifically based reading instruction" includes a
41.9program or collection of instructional practices that is based on reliable, valid, replicable
41.10 evidence showing that when these programs or practices are used, students can be
41.11expected to achieve, at a minimum, satisfactory reading progress. The program or
41.12collection of practices must include, at a minimum, effective, balanced instruction in all
41.13five areas of reading: phonemic awareness, phonics, fluency, vocabulary development,
41.14and text reading comprehension.
41.15Comprehensive, scientifically based reading instruction also includes and integrates
41.16instructional strategies for continuously assessing, evaluating, and communicating
41.17the student's reading progress and needs in order to design and implement ongoing
41.18interventions so that students of all ages and proficiency levels can read and comprehend
41.19text and apply higher level thinking skills.
41.20    (b) "Fluency" is the ability of students to read text with speed, accuracy, and proper
41.21expression.
41.22    (c) "Phonemic awareness" is the ability of students to notice, think about, and
41.23manipulate individual sounds in spoken syllables and words.
41.24    (d) "Phonics" is the understanding that there are systematic and predictable
41.25relationships between written letters and spoken words. Phonics instruction is a way
41.26of teaching reading that stresses learning how letters correspond to sounds and how to
41.27apply this knowledge in reading and spelling.
41.28    (e) "Reading comprehension" is an active process that requires intentional thinking
41.29during which meaning is constructed through interactions between text and reader.
41.30Comprehension skills are taught explicitly by demonstrating, explaining, modeling, and
41.31implementing specific cognitive strategies to help beginning readers derive meaning
41.32through intentional, problem-solving thinking processes.
41.33    (f) "Vocabulary development" is the process of teaching vocabulary both directly
41.34and indirectly, with repetition and multiple exposures to vocabulary items. Learning in
42.1rich contexts, incidental learning, and use of computer technology enhance the acquiring
42.2of vocabulary.
42.3(g) Nothing in this subdivision limits the authority of a school district to select a
42.4school's reading program or curriculum.
42.5EFFECTIVE DATE.This section is effective the day following final enactment.

42.6    Sec. 15. Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:
42.7    Subd. 2. Eligibility; board composition. Except for the representatives of higher
42.8education and the public, to be eligible for appointment to the Board of Teaching a person
42.9must be a teacher currently teaching in a Minnesota school and fully licensed for the
42.10position held and have at least five years teaching experience in Minnesota, including the
42.11two years immediately preceding nomination and appointment. Each nominee, other than
42.12a public nominee, must be selected on the basis of professional experience and knowledge
42.13of teacher education, accreditation, and licensure. The board must be composed of:
42.14(1) six teachers who are currently teaching in a Minnesota school or who were
42.15teaching at the time of the appointment and who do not qualify under clause (2) or (3) of
42.16this subdivision, at least four of whom must be teaching in a public school;
42.17(2) one higher education representative, who must be a faculty member preparing
42.18teachers;
42.19(3) one school administrator; and
42.20(4) three members of the public, two of whom must be present or former members
42.21of school boards.

42.22    Sec. 16. Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:
42.23    Subd. 3. Vacant position. With the exception of a teacher who retires from teaching
42.24during the course of completing a board term, the position of a member who leaves
42.25Minnesota or whose employment status changes to a category different from that from
42.26which appointed is deemed vacant.

42.27    Sec. 17. Minnesota Statutes 2008, section 122A.09, subdivision 4, is amended to read:
42.28    Subd. 4. License and rules. (a) The board must adopt rules to license public school
42.29teachers and interns subject to chapter 14.
42.30(b) The board must adopt rules requiring a person to successfully complete a skills
42.31examination in reading, writing, and mathematics as a requirement for initial teacher
42.32licensure. Such rules must require college and universities offering a board-approved
42.33teacher preparation program to provide remedial assistance to persons who did not
43.1achieve a qualifying score on the skills examination, including those for whom English is
43.2a second language.
43.3(c) The board must adopt rules to approve teacher preparation programs. The board,
43.4upon the request of a postsecondary student preparing for teacher licensure or a licensed
43.5graduate of a teacher preparation program, shall assist in resolving a dispute between the
43.6person and a postsecondary institution providing a teacher preparation program when the
43.7dispute involves an institution's recommendation for licensure affecting the person or the
43.8person's credentials. At the board's discretion, assistance may include the application
43.9of chapter 14.
43.10(d) The board must provide the leadership and shall adopt rules for the redesign of
43.11teacher education programs to implement a research based, results-oriented curriculum
43.12that focuses on the skills teachers need in order to be effective. The board shall implement
43.13new systems of teacher preparation program evaluation to assure program effectiveness
43.14based on proficiency of graduates in demonstrating attainment of program outcomes.
43.15(e) The board must adopt rules requiring successful completion of candidates for
43.16initial licenses to successfully complete an examination of general pedagogical knowledge
43.17and examinations of licensure-specific teaching skills. The rules shall be effective on the
43.18dates determined by the board but not later than by September 1, 2001. The rules under
43.19this paragraph also must require candidates for initial licenses to teach prekindergarten
43.20or elementary students to successfully complete, as part of the examination of
43.21licensure-specific teaching skills, test items assessing the candidates' knowledge, skill, and
43.22ability in comprehensive, scientifically based reading instruction under section 122A.06,
43.23subdivision 4, and their knowledge and understanding of the foundations of reading
43.24development, the development of reading comprehension, and reading assessment and
43.25instruction, and their ability to integrate that knowledge and understanding.
43.26(f) The board must adopt rules requiring teacher educators to work directly with
43.27elementary or secondary school teachers in elementary or secondary schools to obtain
43.28periodic exposure to the elementary or secondary teaching environment.
43.29(g) The board must grant licenses to interns and to candidates for initial licenses.
43.30(h) The board must design and implement an assessment system which requires a
43.31candidate for an initial license and first continuing license to demonstrate the abilities
43.32necessary to perform selected, representative teaching tasks at appropriate levels.
43.33(i) The board must receive recommendations from local committees as established
43.34by the board for the renewal of teaching licenses.
44.1(j) The board must grant life licenses to those who qualify according to requirements
44.2established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
44.3214.10 . The board must not establish any expiration date for application for life licenses.
44.4(k) The board must adopt rules that require all licensed teachers who are renewing
44.5their continuing license to include in their renewal requirements further preparation in
44.6the areas of using positive behavior interventions and in accommodating, modifying, and
44.7adapting curricula, materials, and strategies to appropriately meet the needs of individual
44.8students and ensure adequate progress toward the state's graduation rule.
44.9(l) In adopting rules to license public school teachers who provide health-related
44.10services for disabled children, the board shall adopt rules consistent with license or
44.11registration requirements of the commissioner of health and the health-related boards who
44.12license personnel who perform similar services outside of the school.
44.13(m) The board must adopt rules that require all licensed teachers who are renewing
44.14their continuing license to include in their renewal requirements further reading
44.15preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
44.16until they are approved by law. Teachers who do not provide direct instruction including, at
44.17least, counselors, school psychologists, school nurses, school social workers, audiovisual
44.18directors and coordinators, and recreation personnel are exempt from this section.
44.19(n) The board must adopt rules that require all licensed teachers who are renewing
44.20their continuing license to include in their renewal requirements further preparation
44.21in understanding the key warning signs of early-onset mental illness in children and
44.22adolescents.
44.23EFFECTIVE DATE.This section is effective the day following final enactment
44.24and applies to teacher candidates beginning February 1, 2012.

44.25    Sec. 18. Minnesota Statutes 2008, section 122A.09, subdivision 7, is amended to read:
44.26    Subd. 7. Commissioner's assistance; board money. The commissioner shall
44.27provide all necessary materials and assistance for the transaction of the business of the
44.28Board of Teaching and all moneys received by the Board of Teaching shall be paid into
44.29the state treasury as provided by law. The expenses of administering sections 122A.01,
44.30122A.05 to 122A.09, 122A.15, 122A.16, 122A.17, 122A.18, 122A.20, 122A.21, 122A.22,
44.31122A.23 , 122A.26, 122A.30, 122A.32, 122A.40, 122A.41, 122A.42, 122A.45, 122A.49,
44.32122A.52 , 122A.53, 122A.54, 122A.55, 122A.56, 122A.57, and 122A.58 which are
44.33incurred by the Board of Teaching shall be paid for from appropriations made to the
44.34Board of Teaching.

45.1    Sec. 19. Minnesota Statutes 2008, section 122A.18, subdivision 2a, is amended to read:
45.2    Subd. 2a. Reading strategies. (a) All colleges and universities approved by the
45.3Board of Teaching to prepare persons for classroom teacher licensure must include in their
45.4teacher preparation programs research-based best practices in reading, consistent with
45.5section 122A.06, subdivision 4, that enable the licensure candidate to know how to teach
45.6reading in the candidate's content areas. These colleges and universities also must prepare
45.7candidates for initial licenses to teach prekindergarten or elementary students for the
45.8assessment of reading instruction portion of the examination of licensure-specific teaching
45.9skills under section 122A.09, subdivision 4, paragraph (e).
45.10(b) Board-approved teacher preparation programs for teachers of elementary
45.11education must require instruction in the application of comprehensive, scientifically
45.12based, and balanced reading instruction programs that:
45.13(1) teach students to read using foundational knowledge, practices, and strategies
45.14consistent with section 122A.06, subdivision 4, so that all students will achieve continuous
45.15progress in reading; and
45.16(2) teach specialized instruction in reading strategies, interventions, and remediations
45.17that enable students of all ages and proficiency levels to become proficient readers.
45.18(c) Nothing in this section limits the authority of a school district to select a school's
45.19reading program or curriculum.
45.20EFFECTIVE DATE.This section is effective the day following final enactment.

45.21    Sec. 20. Minnesota Statutes 2008, section 122A.18, subdivision 4, is amended to read:
45.22    Subd. 4. Expiration and renewal. (a) Each license the Department of Education
45.23issues through its licensing section must bear the date of issue. Licenses must expire
45.24and be renewed according to the respective rules the Board of Teaching, the Board
45.25of School Administrators, or the commissioner of education adopts. Requirements for
45.26renewing a license must include showing satisfactory evidence of successful teaching or
45.27administrative experience for at least one school year during the period covered by the
45.28license in grades or subjects for which the license is valid or completing such additional
45.29preparation as the Board of Teaching prescribes. The Board of School Administrators
45.30shall establish requirements for renewing the licenses of supervisory personnel except
45.31athletic coaches. The State Board of Teaching shall establish requirements for renewing
45.32the licenses of athletic coaches.
45.33(b) Relicensure applicants who have been employed as a teacher during the
45.34renewal period of their expiring license, as a condition of relicensure, must present to
45.35their local continuing education and relicensure committee or other local relicensure
46.1committee evidence of work that demonstrates professional reflection and growth in best
46.2teaching practices. The applicant must include a reflective statement of professional
46.3accomplishment and the applicant's own assessment of professional growth showing
46.4evidence of:
46.5(1) support for student learning;
46.6(2) use of best practices techniques and their applications to student learning;
46.7(3) collaborative work with colleagues that includes examples of collegiality such as
46.8attested-to committee work, collaborative staff development programs, and professional
46.9learning community work; or
46.10(4) continual professional development that may include (i) job-embedded or other
46.11ongoing formal professional learning or (ii) for teachers employed for only part of the
46.12renewal period of their expiring license, other similar professional development efforts
46.13made during the relicensure period.
46.14The Board of Teaching must ensure that its teacher relicensing requirements also include
46.15this paragraph.
46.16(b) (c) The Board of Teaching shall offer alternative continuing relicensure options
46.17for teachers who are accepted into and complete the National Board for Professional
46.18Teaching Standards certification process, and offer additional continuing relicensure
46.19options for teachers who earn National Board for Professional Teaching Standards
46.20certification. Continuing relicensure requirements for teachers who do not maintain
46.21National Board for Professional Teaching Standards certification are those the board
46.22prescribes, consistent with this section.
46.23EFFECTIVE DATE.This section is effective the day following final enactment
46.24and applies to licensees seeking relicensure beginning July 1, 2012.

46.25    Sec. 21. Minnesota Statutes 2008, section 122A.40, subdivision 6, is amended to read:
46.26    Subd. 6. Peer review Mentoring for probationary teachers. A school board and
46.27an exclusive representative of the teachers in the district must develop a probationary
46.28teacher peer review process through joint agreement. The process may include having
46.29trained observers serve as mentors or coaches or having teachers participate in professional
46.30learning communities.
46.31EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
46.32later.

46.33    Sec. 22. Minnesota Statutes 2008, section 122A.40, subdivision 8, is amended to read:
47.1    Subd. 8. Peer review coaching for continuing contract teachers. A school board
47.2and an exclusive representative of the teachers in the district shall develop a peer review
47.3process for continuing contract teachers through joint agreement. The process may
47.4include having trained observers serve as peer coaches or having teachers participate in
47.5professional learning communities.
47.6EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
47.7later.

47.8    Sec. 23. Minnesota Statutes 2008, section 122A.41, subdivision 3, is amended to read:
47.9    Subd. 3. Peer review Mentoring for probationary teachers. A board and an
47.10exclusive representative of the teachers in the district must develop a probationary teacher
47.11peer review process through joint agreement. The process may include having trained
47.12observers serve as mentors or coaches or having teachers participate in professional
47.13learning communities.
47.14EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
47.15later.

47.16    Sec. 24. Minnesota Statutes 2008, section 122A.41, subdivision 5, is amended to read:
47.17    Subd. 5. Peer review coaching for continuing contract teachers. A school
47.18board and an exclusive representative of the teachers in the district must develop a peer
47.19review process for nonprobationary teachers through joint agreement. The process may
47.20include having trained observers serve as peer coaches or having teachers participate in
47.21professional learning communities.
47.22EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
47.23later.

47.24    Sec. 25. Minnesota Statutes 2008, section 122A.413, subdivision 2, is amended to read:
47.25    Subd. 2. Plan components. The educational improvement plan must be approved
47.26by the school board and have at least these elements:
47.27(1) assessment and evaluation tools to measure student performance and progress;
47.28(2) performance goals and benchmarks for improvement;
47.29(3) measures of student attendance and completion rates;
47.30(4) a rigorous research and practice-based professional development system, based
47.31on national and state standards of effective teaching practice and consistent with section
47.32122A.60 , that is aligned with educational improvement, and designed to achieve ongoing
48.1and schoolwide progress and growth in teaching quality improvement, and consistent with
48.2clearly defined research-based standards practice;
48.3(5) measures of student, family, and community involvement and satisfaction;
48.4(6) a data system about students and their academic progress that provides parents
48.5and the public with understandable information;
48.6(7) a teacher induction and mentoring program for probationary teachers that
48.7provides continuous learning and sustained teacher support; and
48.8(8) substantial participation by the exclusive representative of the teachers in
48.9developing the plan.
48.10EFFECTIVE DATE.This section is effective the day following final enactment
48.11and applies to plans developed in the 2009-2010 school year and later.

48.12    Sec. 26. Minnesota Statutes 2008, section 122A.414, subdivision 2b, is amended to
48.13read:
48.14    Subd. 2b. Approval process. (a) Consistent with the requirements of this section
48.15and sections 122A.413 and 122A.415, the department must prepare and transmit to
48.16interested school districts, intermediate school districts, school sites, and charter schools
48.17a standard form for applying to participate in the alternative teacher professional pay
48.18system. The commissioner annually must establish three dates as deadlines by which
48.19interested applicants must submit an application to the commissioner under this section.
48.20An interested school district, intermediate school district, school site, or charter school
48.21must submit to the commissioner a completed application executed by the district
48.22superintendent and the exclusive bargaining representative of the teachers if the applicant
48.23is a school district, intermediate school district, or school site, or executed by the charter
48.24school board of directors if the applicant is a charter school. The application must include
48.25the proposed alternative teacher professional pay system agreement under subdivision
48.262. The department must convene a review committee that at least includes teachers
48.27and administrators a completed application within 30 days of receiving a completed
48.28application to the most recent application deadline and recommend to the commissioner
48.29whether to approve or disapprove the application. The commissioner must approve
48.30applications on a first-come, first-served basis. The applicant's alternative teacher
48.31professional pay system agreement must be legally binding on the applicant and the
48.32collective bargaining representative before the applicant receives alternative compensation
48.33revenue. The commissioner must approve or disapprove an application based on the
48.34requirements under subdivisions 2 and 2a.
49.1(b) If the commissioner disapproves an application, the commissioner must give the
49.2applicant timely notice of the specific reasons in detail for disapproving the application.
49.3The applicant may revise and resubmit its application and related documents to the
49.4commissioner within 30 days of receiving notice of the commissioner's disapproval and
49.5the commissioner must approve or disapprove the revised application, consistent with this
49.6subdivision. Applications that are revised and then approved are considered submitted on
49.7the date the applicant initially submitted the application.
49.8EFFECTIVE DATE.This section is effective the day following final enactment
49.9and applies to all applications submitted after that date.

49.10    Sec. 27. [122A.4155] ALTERNATIVE COMPENSATION RURAL DISTRICT
49.11APPLICATION ASSISTANCE.
49.12    Subdivision 1. Eligibility. School districts located in greater Minnesota that submit
49.13a letter of intent and begin the transitional planning year, under section 122A.414,
49.14subdivision 1a, are eligible for alternative compensation application assistance. For the
49.15purposes of this section, an eligible school district is any school district located in the rural
49.16equity region under section 126C.10, subdivision 28.
49.17    Subd. 2. Multidistrict technical assistance. The department shall provide technical
49.18assistance in the form of, but not limited to, networking, training, and professional
49.19development to a rural district or groups of rural districts in developing applications
49.20for the alternative compensation program.
49.21    Subd. 3. Model plans. The department shall develop and disseminate alternative
49.22compensation model plans based on the unique needs and characteristics of rural districts.
49.23    Subd. 4. Multidistrict consortia. The department may promote the development
49.24of multidistrict consortia to optimize opportunities for rural districts to participate in and
49.25implement alternative compensation programs. A multidistrict consortium shall develop
49.26and implement a collaborative alternative compensation plan that includes the program
49.27components outlined in section 122A.414, subdivision 2. A multidistrict consortium
49.28shall provide opportunities to share best practices, professional development training and
49.29expertise, training of teacher observers, or the purchase of programmatic resources.

49.30    Sec. 28. Minnesota Statutes 2008, section 122A.60, subdivision 2, is amended to read:
49.31    Subd. 2. Contents of the plan. The plan must include the staff development
49.32outcomes under subdivision 3, the means to achieve the outcomes, and procedures for
49.33evaluating progress at each school site toward meeting education outcomes., consistent
50.1with relicensure requirements under section 122A.18, subdivision 2, paragraph (b). The
50.2plan also must:
50.3(1) support stable and productive professional communities achieved through
50.4ongoing and schoolwide progress and growth in teaching practice;
50.5(2) emphasize coaching, professional learning communities, classroom action
50.6research, and other job-embedded models;
50.7(3) maintain a strong subject matter focus premised on students' learning goals;
50.8(4) ensure specialized preparation and learning about issues related to teaching
50.9students with special needs and limited English proficiency; and
50.10(5) reinforce national and state standards of effective teaching practice.
50.11EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
50.12later.

50.13    Sec. 29. Minnesota Statutes 2008, section 123A.05, is amended to read:
50.14123A.05 AREA LEARNING CENTER STATE-APPROVED ALTERNATIVE
50.15PROGRAM ORGANIZATION.
50.16    Subdivision 1. Governance. (a) A district may establish an area learning center
50.17either by itself or in cooperation with other districts, alternative learning program, or
50.18contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d),
50.19and 124D.69.
50.20(b) An area learning center is encouraged to cooperate with a service cooperative, an
50.21intermediate school district, a local education and employment transitions partnership,
50.22public and private secondary and postsecondary institutions, public agencies, businesses,
50.23and foundations. Except for a district located in a city of the first class, a an area
50.24learning center must be established in cooperation with other districts and must serve
50.25the geographic area of at least two districts. An area learning center must provide
50.26comprehensive educational services to enrolled secondary students throughout the year,
50.27including a daytime school within a school or separate site for both high school and
50.28middle school level students.
50.29(c) An alternative learning program may serve the students of one or more districts,
50.30may designate which grades are served, and may make program hours and a calendar
50.31optional.
50.32(d) A contract alternative is an alternative learning program operated by a private
50.33organization that has contracted with a school district to provide educational services for
50.34students under section 124D.68, subdivision 2.
51.1    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
51.2or alternative learning program must reserve revenue in an amount equal to the sum of (1)
51.3at least 90 percent of the district average general education revenue per pupil unit minus
51.4an amount equal to the product of the formula allowance according to section 126C.10,
51.5subdivision 2
, times .0485, calculated without basic skills revenue and transportation
51.6sparsity revenue, times the number of pupil units attending an area learning center or
51.7alternative learning program under this section, plus (2) the amount of basic skills revenue
51.8generated by pupils attending the area learning center or alternative learning program. The
51.9amount of reserved revenue under this subdivision may only be spent on program costs
51.10associated with the area learning center or alternative learning program.
51.11    Subd. 3. Access to services. A center state-approved alternative program shall have
51.12access to the district's regular education programs, special education programs, technology
51.13facilities, and staff. It may contract with individuals or postsecondary institutions. It shall
51.14seek the involvement of community education programs, postsecondary institutions,
51.15interagency collaboratives, culturally based organizations, mutual assistance associations,
51.16and other community resources, businesses, and other federal, state, and local public
51.17agencies.
51.18    Subd. 4. Nonresident pupils. A pupil who does not reside in the district may
51.19attend a center state-approved alternative program without consent of the school board of
51.20the district of residence.

51.21    Sec. 30. Minnesota Statutes 2008, section 123A.06, is amended to read:
51.22123A.06 CENTER STATE-APPROVED ALTERNATIVE PROGRAMS AND
51.23SERVICES.
51.24    Subdivision 1. Program focus. (a) The programs and services of a center
51.25state-approved alternative program must focus on academic and learning skills, applied
51.26learning opportunities, trade and vocational skills, work-based learning opportunities,
51.27work experience, youth service to the community, transition services, and English
51.28language and literacy programs for children whose primary language is a language other
51.29than English. Applied learning, work-based learning, and service learning may best be
51.30developed in collaboration with a local education and transitions partnership, culturally
51.31based organizations, mutual assistance associations, or other community resources.
51.32In addition to offering programs, the center state-approved alternative program shall
51.33coordinate the use of other available educational services, special education services,
51.34social services, health services, and postsecondary institutions in the community and
51.35services area.
52.1(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school
52.2district may provide an alternative education program for a student who is within the
52.3compulsory attendance age under section 120A.20, and who is involved in severe or
52.4repeated disciplinary action.
52.5    Subd. 2. People to be served. A center state-approved alternative program shall
52.6provide programs for secondary pupils and adults. A center may also provide programs
52.7and services for elementary and secondary pupils who are not attending the center
52.8state-approved alternative program to assist them in being successful in school. A center
52.9shall use research-based best practices for serving limited English proficient students and
52.10their parents. An individual education plan team may identify a center state-approved
52.11alternative program as an appropriate placement to the extent a center state-approved
52.12alternative program can provide the student with the appropriate special education services
52.13described in the student's plan. Pupils eligible to be served are those who qualify under
52.14the graduation incentives program in section 124D.68, subdivision 2, those enrolled
52.15under section 124D.02, subdivision 2, or those pupils who are eligible to receive special
52.16education services under sections 125A.03 to 125A.24, and 125A.65.
52.17    Subd. 3. Hours of instruction exemption. Notwithstanding any law to the contrary,
52.18the area learning center programs must be available throughout the entire year. A center
52.19may petition the state board under Minnesota Rules, part 3500.1000, for exemption from
52.20other rules.
52.21    Subd. 4. Granting a diploma. Upon successful completion of the area learning
52.22center program, a pupil is entitled to receive a high school diploma. The pupil may elect
52.23to receive a diploma from either the district of residence or the district in which the area
52.24learning center is located.

52.25    Sec. 31. Minnesota Statutes 2008, section 123A.08, is amended to read:
52.26123A.08 CENTER STATE-APPROVED ALTERNATIVE PROGRAM
52.27FUNDING.
52.28    Subdivision 1. Outside sources for resources and services. A center
52.29state-approved alternative program may accept:
52.30(1) resources and services from postsecondary institutions serving center
52.31state-approved alternative program pupils;
52.32(2) resources from Job Training Partnership Workforce Investment Act programs,
52.33including funding for jobs skills training for various groups and the percentage reserved
52.34for education;
52.35(3) resources from the Department of Human Services and county welfare funding;
53.1(4) resources from a local education and employment transitions partnership; or
53.2(5) private resources, foundation grants, gifts, corporate contributions, and other
53.3grants.
53.4    Subd. 2. General education aid. Payment of general education aid for nonresident
53.5pupils enrolled in the center area learning centers and alternative learning programs must
53.6be made according to section 127A.47, subdivision 7.
53.7    Subd. 3. Special education revenue. Payment of special education revenue for
53.8nonresident pupils enrolled in the center state-approved alternative program must be made
53.9according to section 125A.15 127A.47, subdivision 7.

53.10    Sec. 32. Minnesota Statutes 2008, section 123B.03, subdivision 1, is amended to read:
53.11    Subdivision 1. Background check required. (a) A school hiring authority shall
53.12request a criminal history background check from the superintendent of the Bureau of
53.13Criminal Apprehension on all individuals who are offered employment in a school and
53.14on all individuals, except enrolled student volunteers, who are offered the opportunity to
53.15provide athletic coaching services or other extracurricular academic coaching services
53.16to a school, regardless of whether any compensation is paid. In order for an individual
53.17to be eligible for employment or to provide the services, the individual must provide an
53.18executed criminal history consent form and a money order or check payable to either the
53.19Bureau of Criminal Apprehension or the school hiring authority, at the discretion of the
53.20school hiring authority, in an amount equal to the actual cost to the Bureau of Criminal
53.21Apprehension and the school district of conducting the criminal history background
53.22check. A school hiring authority deciding to receive payment may, at its discretion, accept
53.23payment in the form of a negotiable instrument other than a money order or check and
53.24shall pay the superintendent of the Bureau of Criminal Apprehension directly to conduct
53.25the background check. The superintendent of the Bureau of Criminal Apprehension shall
53.26conduct the background check by retrieving criminal history data maintained in the
53.27criminal justice information system computers. A school hiring authority, at its discretion,
53.28may decide not to request a criminal history background check on an individual who holds
53.29an initial entrance license issued by the State Board of Teaching or the commissioner of
53.30education within the 12 months preceding an offer of employment.
53.31    (b) A school hiring authority may use the results of a criminal background check
53.32conducted at the request of another school hiring authority if:
53.33    (1) the results of the criminal background check are on file with the other school
53.34hiring authority or otherwise accessible;
54.1    (2) the other school hiring authority conducted a criminal background check within
54.2the previous 12 months;
54.3    (3) the individual who is the subject of the criminal background check executes a
54.4written consent form giving a school hiring authority access to the results of the check; and
54.5    (4) there is no reason to believe that the individual has committed an act subsequent
54.6to the check that would disqualify the individual for employment.
54.7    (c) A school hiring authority may, at its discretion, request a criminal history
54.8background check from the superintendent of the Bureau of Criminal Apprehension on
54.9any individual who seeks to enter a school or its grounds for the purpose of serving as a
54.10school volunteer or working as an independent contractor or student employee. In order
54.11for an individual to enter a school or its grounds under this paragraph when the school
54.12hiring authority decides to request a criminal history background check on the individual,
54.13the individual first must provide an executed criminal history consent form and a money
54.14order, check, or other negotiable instrument payable to the school district in an amount
54.15equal to the actual cost to the Bureau of Criminal Apprehension and the school district
54.16of conducting the criminal history background check. Notwithstanding section 299C.62,
54.17subdivision 1
, the cost of the criminal history background check under this paragraph is the
54.18responsibility of the individual. unless a school hiring authority decides to pay the costs of
54.19conducting a background check under this paragraph. If the school hiring authority pays
54.20the costs, the individual who is the subject of the background check need not pay for it.
54.21    (d) For all nonstate residents who are offered employment in a school, a school
54.22hiring authority shall request a criminal history background check on such individuals
54.23from the superintendent of the Bureau of Criminal Apprehension and from the government
54.24agency performing the same function in the resident state or, if no government entity
54.25performs the same function in the resident state, from the Federal Bureau of Investigation.
54.26Such individuals must provide an executed criminal history consent form and a money
54.27order, check, or other negotiable instrument payable to the school hiring authority in an
54.28amount equal to the actual cost to the government agencies and the school district of
54.29conducting the criminal history background check. Notwithstanding section 299C.62,
54.30subdivision 1
, the cost of the criminal history background check under this paragraph is
54.31the responsibility of the individual.
54.32    (e) At the beginning of each school year or when a student enrolls, a school hiring
54.33authority must notify parents and guardians about the school hiring authority's policy
54.34requiring a criminal history background check on employees and other individuals who
54.35provide services to the school, and identify those positions subject to a background check
54.36and the extent of the hiring authority's discretion in requiring a background check. The
55.1school hiring authority may include the notice in the student handbook, a school policy
55.2guide, or other similar communication. Nothing in this paragraph affects a school hiring
55.3authority's ability to request a criminal history background check on an individual under
55.4paragraph (c).
55.5EFFECTIVE DATE.This section is effective the day following final enactment.

55.6    Sec. 33. [123B.045] DISTRICT-CREATED SITE-GOVERNED SCHOOLS.
55.7    Subdivision 1. Authority. (a) A school board may approve site-governed schools
55.8under this section by requesting site-governing school proposals. The request for
55.9proposals must include what types of schools or education innovations the board intends
55.10to create. A current site may submit a proposal to create a different model for the site if
55.1160 percent or more of the teachers at the site support the proposal. A group of licensed
55.12district professionals from one or multiple district sites may submit a proposal. The
55.13group submitting the proposal must include parents or other community members in the
55.14development of the proposal. A proposal may request approval for a model of a school not
55.15included in the request for proposal of the board.
55.16(b) The school board and the applicable bargaining unit representing district
55.17employees must enter into memoranda of understanding specifying how applicable
55.18sections of current contracts will enable the provisions of subdivision 2, clauses (7) and
55.19(8), to be implemented.
55.20(c) Within 60 days of receipt of the application, the school board shall determine
55.21whether to approve, deny, or return the application to the applicants for further information
55.22or development.
55.23(d) Upon approval of the proposal, an agreement between the district and the site
55.24council shall be developed identifying the powers and duties delegated to the site and
55.25outlining the details of the proposal including the provisions of subdivisions 2, 3, and
55.265. Any powers or duties not specifically delegated to the school site in the agreement
55.27remains with the school board.
55.28    Subd. 2. Roles and responsibilities of site-governed schools. (a) Site-governed
55.29schools approved by the school board have the following autonomy and responsibilities at
55.30the discretion of the site:
55.31(1) to create the site-governing council of the school. The council shall include
55.32teachers, administrators, parents, students if appropriate, community members, and other
55.33representatives of the community as determined by the site-governing council. Teachers
55.34may comprise a majority of the site-governing council at the option of a majority of
56.1the teachers at the site. The number of members on the site-governing council and the
56.2composition shall be included in the proposal approved by the school board;
56.3(2) to determine the leadership model for the site including: selecting a principal,
56.4operating as a teacher professional practices model with school leadership functions
56.5performed by one or more teachers or administrators at the school or other model
56.6determined by the site;
56.7(3) to determine the budget for the site and the allocation and expenditure of the
56.8revenue based on provisions of subdivision 3;
56.9(4) to determine the learning model and organization of the school consistent with
56.10the application approved by the school board;
56.11(5) to select and develop its curriculum and determine formative and summative
56.12assessment practices;
56.13(6) to set policies for the site including student promotion, attendance, discipline,
56.14graduation requirements which may exceed the school board standards, and other such
56.15rules as approved by the school board consistent with the mission, goals, and learning
56.16program of the school site;
56.17(7) to determine the length of the school day and year and employee work rules
56.18covered by the terms and conditions of the employment contract;
56.19(8) to select teachers and other staff consistent with current law and collective
56.20bargaining agreements and memoranda of understanding provided for in subdivision 1,
56.21paragraph (b). At least 70 percent of the teachers must be selected by the site prior to final
56.22approval of the agreement. Prior to requesting the district to employ staff not currently
56.23employed by the district, the site must first select current district staff including those on
56.24requested and unrequested leave as provided for in sections 122A.40 and 122A.41. The
56.25school board shall be the legal employer of all staff at the site and all teachers and other
56.26staff members of the applicable bargaining units. Teachers and other employees may be
56.27required to sign an individual work agreement with the site-governing council committing
56.28themselves to the mission and learning program of the school and the requirements of
56.29the site-governing council; and
56.30(9) to fulfill other provisions as agreed to by the district and site-governing council.
56.31(b) If a self-governed school created under this section is supervised by a principal,
56.32that principal must be licensed, consistent with section 123B.147, subdivision 2.
56.33    Subd. 3. Revenue to self-governed school. (a) The revenue that shall be allocated
56.34by the site includes the general education revenue generated by the students at the site from
56.35state, local, and private sources, referendum revenue, federal revenue from the Elementary
57.1and Secondary Education Act, Individuals with Disabilities Education Act, Carl Perkins
57.2Act, and other federal programs as agreed to by the school board and site council.
57.3(b) The district may retain an administrative fee for managing the federal
57.4programs, private revenues, and general administrative functions including school board,
57.5superintendent, district legal counsel, finance, accountability and self-governed school
57.6contract oversight, facilities maintenance, districtwide special education programs, and
57.7other such services as agreed to by the site and school board. The administrative fee
57.8shall be included in the agreement.
57.9(c) As part of the agreement, the district may provide specific services for the site
57.10and may specify the amount to be paid for each service and retain the revenues for that
57.11amount. The formula or procedures for determining the amount of revenue to be allocated
57.12to the site each year shall be consistent with this subdivision and incorporated in the site
57.13budget annually following a timeline and process that is included in the agreement with
57.14the school board. The site is responsible for allocating revenue for all staff at the site and
57.15for the other provisions of the agreement with the district board.
57.16(d) All unspent revenue shall be carried over to following years for the sole use
57.17of the site.
57.18    Subd. 4. Exemption from statutes and rules. Except as outlined in this section,
57.19site-governed schools established under this section are exempt from and subject to the
57.20same laws and rules as are chartered schools under section 124D.10, except that the
57.21schools shall be subject to chapters 13, 13D, and 179A, and sections 122A.40, 122A.41,
57.22122A.50, and 122A.51.
57.23    Subd. 5. Performance standards. (a) The school board and the site council shall
57.24include in the agreement performance standards and expectations that shall include at
57.25least the following:
57.26(1) student achievement targets on multiple indicators including either a growth
57.27model or value-added growth model;
57.28(2) the criteria and process to be followed if it is determined that the site failed
57.29to comply with district oversight and accountability requirements as outlined in the
57.30agreement; and
57.31(3) other performance provisions as agreed to.
57.32(b) All agreements shall be filed with the commissioner. The initial agreement shall
57.33be for up to three years, shall be reviewed annually, and may be renewed by the district
57.34board for additional terms of up to five years based on the performance of the school.
57.35    Subd. 6. Board termination of self-governed school authority. (a) The district
57.36board may terminate the agreement for one or more of the following reasons:
58.1(1) failure of the site to meet the provisions specified in the agreement in subdivision
58.25;
58.3(2) violations of law; or
58.4(3) other good cause shown.
58.5(b) Site-governed schools that are terminated or not renewed for reasons other than
58.6cause may request to convert to charter school status as provided for in section 124D.10
58.7and, if chartered by the board, shall become the owner of all materials, supplies, and
58.8equipment purchased during the period the school was a site-governed school.

58.9    Sec. 34. Minnesota Statutes 2008, section 123B.143, subdivision 1, is amended to read:
58.10    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
58.11school must employ a superintendent who shall be an ex officio nonvoting member of the
58.12school board. The authority for selection and employment of a superintendent must be
58.13vested in the board in all cases. An individual employed by a board as a superintendent
58.14shall have an initial employment contract for a period of time no longer than three years
58.15from the date of employment. Any subsequent employment contract must not exceed a
58.16period of three years. A board, at its discretion, may or may not renew an employment
58.17contract. A board must not, by action or inaction, extend the duration of an existing
58.18employment contract. Beginning 365 days prior to the expiration date of an existing
58.19employment contract, a board may negotiate and enter into a subsequent employment
58.20contract to take effect upon the expiration of the existing contract. A subsequent contract
58.21must be contingent upon the employee completing the terms of an existing contract. If a
58.22contract between a board and a superintendent is terminated prior to the date specified in
58.23the contract, the board may not enter into another superintendent contract with that same
58.24individual that has a term that extends beyond the date specified in the terminated contract.
58.25A board may terminate a superintendent during the term of an employment contract for any
58.26of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
58.27not rely upon an employment contract with a board to assert any other continuing contract
58.28rights in the position of superintendent under section 122A.40. Notwithstanding the
58.29provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
58.30to the contrary, no individual shall have a right to employment as a superintendent based
58.31on order of employment in any district. If two or more districts enter into an agreement for
58.32the purchase or sharing of the services of a superintendent, the contracting districts have
58.33the absolute right to select one of the individuals employed to serve as superintendent
58.34in one of the contracting districts and no individual has a right to employment as the
59.1superintendent to provide all or part of the services based on order of employment in a
59.2contracting district. The superintendent of a district shall perform the following:
59.3    (1) visit and supervise the schools in the district, report and make recommendations
59.4about their condition when advisable or on request by the board;
59.5    (2) recommend to the board employment and dismissal of teachers;
59.6    (3) superintend school grading practices and examinations for promotions;
59.7    (4) make reports required by the commissioner; and
59.8    (5) by January 10, submit an annual report to the commissioner in a manner
59.9prescribed by the commissioner, in consultation with school districts, identifying the
59.10expenditures that the district requires to ensure an 80 percent student passage rate on
59.11the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
59.12district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
59.13expenditures that the district requires to attain the targeted student passage rate; and
59.14    (6) perform other duties prescribed by the board.
59.15EFFECTIVE DATE.This section is effective the day following final enactment
59.16and applies to the 2009-2010 school year and later.

59.17    Sec. 35. Minnesota Statutes 2008, section 123B.51, is amended by adding a
59.18subdivision to read:
59.19    Subd. 5a. Temporary closing. A school district that proposes to temporarily close a
59.20schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
59.21for three or fewer years is not subject to subdivision 5 if the school board holds a public
59.22meeting and allows public comment on the schoolhouse's future.
59.23EFFECTIVE DATE.This section is effective the day following final enactment.

59.24    Sec. 36. Minnesota Statutes 2008, section 124D.095, subdivision 2, is amended to read:
59.25    Subd. 2. Definitions. For purposes of this section, the following terms have the
59.26meanings given them.
59.27    (a) "Online learning" is an interactive course or program that delivers instruction
59.28from a teacher to a student by computer; is combined with other traditional delivery
59.29methods that include frequent student assessment and may include actual teacher contact
59.30time; and meets or exceeds state academic standards.
59.31    (b) "Online learning provider" is a school district, an intermediate school district, an
59.32organization of two or more school districts operating under a joint powers agreement, or
59.33a charter school located in Minnesota that provides online learning to students.
60.1    (c) "Student" is a Minnesota resident enrolled in a school under section 120A.22,
60.2subdivision 4
, in kindergarten through grade 12.
60.3    (d) "Online learning student" is a student enrolled in an online learning course or
60.4program delivered by an online provider under paragraph (b).
60.5    (e) "Enrolling district" means the school district or charter school in which a student
60.6is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.
60.7    (f) "Supplemental online learning" means an online course taken in place of a course
60.8period during the regular school day at a local district school.
60.9    (g) "Full-time online provider" means an enrolling school authorized by the
60.10department to deliver comprehensive public education at any or all of the elementary,
60.11middle, or high school levels.
60.12(h) "Online course syllabus" is a written document that an online learning provider
60.13transmits to the enrolling district using a format prescribed by the commissioner to
60.14identify the state academic standards embedded in an online course, the course content
60.15outline, required course assessments, expectations for actual teacher contact time and
60.16other student-to-teacher communications, and the academic support available to the
60.17online learning student.

60.18    Sec. 37. Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:
60.19    Subd. 3. Authorization; notice; limitations on enrollment. (a) A student may
60.20apply for full-time enrollment in an approved online learning program under section
60.21124D.03 , 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding
60.22sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online
60.23learning shall be are as provided in this subdivision. A student age 17 or younger must
60.24have the written consent of a parent or guardian to apply. No school district or charter
60.25school may prohibit a student from applying to enroll in online learning. In order that
60.26a student may to enroll in online learning, the student and the student's parents must
60.27submit an application to the online learning provider and identify the student's reason for
60.28enrolling in online learning. The An online learning provider that accepts a student under
60.29this section must within ten days notify the student and the enrolling district in writing
60.30within ten days if the enrolling district is not the online learning provider. The student and
60.31family the student's parent must notify the online learning provider of their the student's
60.32intent to enroll in online learning within ten days of acceptance being accepted, at which
60.33time the student and the student's parent must sign a statement of assurance indicating
60.34that they have reviewed the online course or program and understand the expectations
60.35of enrolling in online learning enrollment. The online learning provider must use a form
61.1provided by the department to notify the enrolling district of the student's enrollment
61.2application to enroll in online learning in writing on a form provided by the department.
61.3    (b) The supplemental online learning notification notice to the enrolling district
61.4upon when a student enrollment in applies to the online learning program provider will
61.5include the courses or program, credits to be awarded, and the start date of the online
61.6enrollment, and confirmation that the courses will meet the student's graduation plan
61.7course or program. An online learning provider must make available the supplemental
61.8online course syllabus to the enrolling district. Within 15 days after the online learning
61.9provider makes information in this paragraph available to the enrolling district, the
61.10enrolling district must notify the online provider whether the student, the student's parent,
61.11and the enrolling district agree or disagree that the course meets the enrolling district's
61.12graduation requirements. A student may enroll in a supplemental online learning courses
61.13course up to the midpoint of the enrolling district's term. The enrolling district may waive
61.14this requirement for special circumstances and upon acceptance by with the agreement
61.15of the online provider. An online learning course or program that meets or exceeds a
61.16graduation standard or the grade progression requirement of the enrolling district as
61.17described in the provider's online course syllabus meets the corresponding graduation
61.18requirements applicable to the student in the enrolling district. If the enrolling district does
61.19not agree that the course or program meets its graduation requirements, then:
61.20(1) the enrolling district must make available an explanation of its decision to the
61.21student, the student's parent, and the online provider; and
61.22(2) the online provider may make available a response to the enrolling district,
61.23showing how the course or program meets the graduation requirements of the enrolling
61.24district.
61.25    (c) An online learning provider must notify the commissioner that it is delivering
61.26online learning and report the number of online learning students it is accepting accepts
61.27and the online learning courses and programs it is delivering delivers.
61.28    (d) An online learning provider may limit enrollment if the provider's school board
61.29or board of directors adopts by resolution specific standards for accepting and rejecting
61.30students' applications.
61.31    (e) An enrolling district may reduce an online learning student's regular classroom
61.32instructional membership in proportion to the student's membership in online learning
61.33courses.
61.34    (f) The online provider must report or make available information on an individual
61.35student's progress and accumulated credit to the student, the student's parent, and the
61.36enrolling district in a manner specified by the commissioner unless the enrolling district
62.1and the online provider agree to a different form of notice and notify the commissioner.
62.2The enrolling district must designate a contact person to help facilitate and monitor the
62.3student's academic progress and accumulated credits towards graduation.

62.4    Sec. 38. Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:
62.5    Subd. 4. Online learning parameters. (a) An online learning student must receive
62.6academic credit for completing the requirements of an online learning course or program.
62.7Secondary credits granted to an online learning student must be counted count toward the
62.8graduation and credit requirements of the enrolling district. An online learning provider
62.9must make available to the enrolling district the course syllabus, standard alignment,
62.10content outline, assessment requirements, and contact information for supplemental online
62.11courses taken by students in the enrolling district. The enrolling district must apply the
62.12same graduation requirements to all students, including online learning students, and
62.13must continue to provide nonacademic services to online learning students. If a student
62.14completes an online learning course or program that meets or exceeds a graduation
62.15standard or the grade progression requirement at the enrolling district, that standard or
62.16requirement is met. The enrolling district must use the same criteria for accepting online
62.17learning credits or courses as it does for accepting credits or courses for transfer students
62.18under section 124D.03, subdivision 9. The enrolling district may reduce the course
62.19schedule of an online learning student in proportion to the number of online learning
62.20courses the student takes from an online learning provider that is not the enrolling district.
62.21    (b) An online learning student may:
62.22    (1) enroll in supplemental online learning courses during a single school year
62.23equal to a maximum of 50 percent of the student's full schedule of courses per term. A
62.24during a single school year and the student may exceed the supplemental online learning
62.25registration limit if the enrolling district grants permission for permits supplemental online
62.26learning enrollment above the limit, or if an agreement is made between the enrolling
62.27district and the online learning provider for agree to the instructional services;
62.28    (2) complete course work at a grade level that is different from the student's current
62.29grade level; and
62.30    (3) enroll in additional courses with the online learning provider under a separate
62.31agreement that includes terms for payment of paying any tuition or course fees.
62.32    (c) An online learning student has the same access to the computer hardware and
62.33education software available in a school as all other students in the enrolling district. An
62.34online learning provider must assist an online learning student whose family qualifies
63.1for the education tax credit under section 290.0674 to acquire computer hardware and
63.2educational software for online learning purposes.
63.3    (d) An enrolling district may offer online learning to its enrolled students. Such
63.4online learning does not generate online learning funds under this section. An enrolling
63.5district that offers online learning only to its enrolled students is not subject to the reporting
63.6requirements or review criteria under subdivision 7, unless the enrolling district is a
63.7full-time online provider. A teacher with a Minnesota license must assemble and deliver
63.8instruction to enrolled students receiving online learning from an enrolling district. The
63.9delivery of instruction occurs when the student interacts with the computer or the teacher
63.10and receives ongoing assistance and assessment of learning. The instruction may include
63.11curriculum developed by persons other than a teacher with holding a Minnesota license.
63.12    (e) An Both full-time and supplemental online learning provider that is not the
63.13enrolling district is providers are subject to the reporting requirements and review criteria
63.14under subdivision 7. A teacher with holding a Minnesota license must assemble and
63.15deliver instruction to online learning students. The delivery of instruction occurs when the
63.16student interacts with the computer or the teacher and receives ongoing assistance and
63.17assessment of learning. The instruction may include curriculum developed by persons
63.18other than a teacher with holding a Minnesota license. Unless the commissioner grants
63.19a waiver, a teacher providing online learning instruction must not instruct more than 40
63.20students in any one online learning course or program.
63.21    (f) To enroll in more than 50 percent of the student's full schedule of courses per term
63.22in online learning, the student must qualify to exceed the supplemental online learning
63.23registration limit under paragraph (b) or apply for enrollment to enroll in an approved
63.24full-time online learning program following appropriate procedures in, consistent with
63.25subdivision 3, paragraph (a). Full-time online learning students may enroll in classes at a
63.26local school per under a contract for instructional services between the online learning
63.27provider and the school district.

63.28    Sec. 39. Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:
63.29    Subd. 7. Department of Education. (a) The department must review and certify
63.30approve online learning providers. The online learning courses and programs must be
63.31rigorous, aligned with state academic standards, and contribute to grade progression
63.32in a single subject. Online learning providers must demonstrate to the commissioner
63.33that online learning courses have equivalent standards or instruction, curriculum, and
63.34assessment requirements as other courses offered to enrolled students. The online learning
63.35provider must also demonstrate expectations for actual teacher contact time or other
64.1student-to-teacher communication The online provider must give the commissioner
64.2written assurance that: (1) all courses meet state academic standards; and (2) the online
64.3learning curriculum, instruction, and assessment, expectations for actual teacher-contact
64.4time or other student-to-teacher communication, and academic support meet nationally
64.5recognized professional standards and are described as such in an online course syllabus
64.6that meets the commissioner's requirements. Once an online learning provider is approved
64.7under this paragraph, all of its online learning course offerings are eligible for payment
64.8under this section unless a course is successfully challenged by an enrolling district or the
64.9department under paragraph (b).
64.10    (b) An enrolling district may challenge the validity of a course offered by an online
64.11learning provider. The department must review such challenges based on the certification
64.12procedures under paragraph (a). The department may initiate its own review of the validity
64.13of an online learning course offered by an online learning provider.
64.14    (c) The department may collect a fee not to exceed $250 for certifying online
64.15learning providers or $50 per course for reviewing a challenge by an enrolling district.
64.16    (d) The department must develop, publish, and maintain a list of approved online
64.17learning providers and online learning courses and programs that it has reviewed and
64.18certified.

64.19    Sec. 40. Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to
64.20read:
64.21    Subd. 10. Online Learning Advisory Council. (a) An Online Learning Advisory
64.22Council is established under section 15.059, except that. The term for each council
64.23member shall be three years. The advisory council is composed of 12 members from
64.24throughout the state who have demonstrated experience with or interest in online learning.
64.25The members of the council shall be appointed by the commissioner. The advisory council
64.26shall bring to the attention of the commissioner any matters related to online learning and
64.27provide input to the department in matters related, but not restricted, to:
64.28(1) quality assurance;
64.29(2) teacher qualifications;
64.30(3) program approval;
64.31(4) special education;
64.32(5) attendance;
64.33(6) program design and requirements; and
64.34(7) fair and equal access to programs.
65.1(b) The Online Learning Advisory Council under this subdivision expires June
65.230, 2008 2013.
65.3EFFECTIVE DATE.Paragraph (b) is effective retroactively from June 30, 2008.

65.4    Sec. 41. Minnesota Statutes 2008, section 124D.10, is amended to read:
65.5124D.10 CHARTER SCHOOLS.
65.6    Subdivision 1. Purposes. (a) The purpose of this section is to:
65.7(1) improve pupil learning and student achievement;
65.8(2) increase learning opportunities for pupils;
65.9(3) encourage the use of different and innovative teaching methods;
65.10(4) require the measurement of measure learning outcomes and create different and
65.11innovative forms of measuring outcomes;
65.12(5) establish new forms of accountability for schools; or and
65.13(6) create new professional opportunities for teachers, including the opportunity to
65.14be responsible for the learning program at the school site.
65.15(b) This section does not provide a means to keep open a school that otherwise would
65.16be closed or to reestablish a school that has been closed. Applicants in these circumstances
65.17bear the burden of proving that conversion to a charter school or establishment of a new
65.18charter school fulfills a purpose the purposes specified in this subdivision, independent of
65.19the school's closing.
65.20An authorizer shall not approve an application submitted by a charter school
65.21developer under subdivision 4, paragraph (a), if the application does not comply with this
65.22subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
65.23under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
65.24    Subd. 2. Applicability. This section applies only to charter schools formed and
65.25operated under this section.
65.26    Subd. 2a. Charter School Advisory Council. (a) A Charter School Advisory
65.27Council is established under section 15.059 except that the term for each council member
65.28shall be three years. The advisory council is composed of seven members from throughout
65.29the state who have demonstrated experience with or interest in charter schools. The
65.30members of the council shall be appointed by the commissioner. The advisory council
65.31shall bring to the attention of the commissioner any matters related to charter schools
65.32that the council deems necessary and shall:
65.33(1) encourage school boards to make full use of charter school opportunities;
65.34(2) encourage the creation of innovative schools;
66.1(3) provide leadership and support for charter school sponsors to increase the
66.2innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
66.3(4) serve an ombudsman function in facilitating the operations of new and existing
66.4charter schools;
66.5(5) promote timely financial management training for newly elected members of
66.6a charter school board of directors and ongoing training for other members of a charter
66.7school board of directors; and
66.8(6) facilitate compliance with auditing and other reporting requirements. The
66.9advisory council shall refer all its proposals to the commissioner who shall provide time
66.10for reports from the council.
66.11(b) The Charter School Advisory Council under this subdivision expires June 30,
66.122007.
66.13    Subd. 3. Sponsor Authorizer. (a) For purposes of this section, the terms defined in
66.14this subdivision have the meanings given them.
66.15"Application" to receive approval as an authorizer means the proposal an eligible
66.16authorizer submits to the commissioner under paragraph (c) before that authorizer is able
66.17to submit any affidavit to charter to a school.
66.18"Application" under subdivision 4 means the charter school business plan a
66.19school developer submits to an authorizer for approval to establish a charter school that
66.20documents the school developer's mission statement, school purposes, program design,
66.21financial plan, governance and management structure, and background and experience,
66.22plus any other information the authorizer requests. The application also shall include a
66.23"statement of assurances" of legal compliance prescribed by the commissioner.
66.24"Affidavit" means a written statement the authorizer submits to the commissioner
66.25for approval to establish a charter school under subdivision 4 attesting to its review and
66.26approval process before chartering a school.
66.27"Affidavit" means the form an authorizer submits to the commissioner that is a
66.28precondition to a charter school organizing an affiliated nonprofit building corporation
66.29under subdivision 17a.
66.30(b) The following organizations may authorize one or more charter schools:
66.31(1) a school board; intermediate school district school board; education district
66.32organized under sections 123A.15 to 123A.19;
66.33(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
66.34of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
66.35natural person that directly or indirectly, through one or more intermediaries, controls,
66.36is controlled by, or is under common control with the nonpublic sectarian or religious
67.1institution, and any other charitable organization under this clause that in the federal IRS
67.2Form 1023, Part IV, describes activities indicating a religious purpose, that:
67.3(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
67.4Foundations,;
67.5(ii) is registered with the attorney general's office, and;
67.6(iii) reports an end-of-year fund balance of at least $2,000,000; and
67.7(iv) is incorporated in the state of Minnesota;
67.8(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
67.9four-year degrees and is registered with the Minnesota Office of Higher Education under
67.10chapter 136A; community college, state university, or technical college, governed by the
67.11Board of Trustees of the Minnesota State Colleges and Universities; or the University of
67.12Minnesota may sponsor one or more charter schools.; or
67.13(b) (4) a nonprofit corporation subject to chapter 317A, described in section
67.14317A.905 , and exempt from federal income tax under section 501(c)(6) of the Internal
67.15Revenue Code of 1986, may sponsor authorize one or more charter schools if the charter
67.16school has operated for at least three years under a different sponsor authorizer and if the
67.17nonprofit corporation has existed for at least 25 years.
67.18(5) no more than three single-purpose sponsors that are charitable, nonsectarian
67.19organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 and
67.20incorporated in the state of Minnesota whose sole purpose is to charter schools. Eligible
67.21organizations interested in being approved as a sponsor under this paragraph must submit a
67.22proposal to the commissioner that includes the provisions of paragraph (c) and a five-year
67.23financial plan. Such authorizers shall consider and approve applications using the criteria
67.24provided in subdivision 4 and shall not limit the applications it solicits, considers, or
67.25approves to any single curriculum, learning program, or method.
67.26(c) An eligible authorizer under this subdivision must apply to the commissioner for
67.27approval as an authorizer before submitting any affidavit to the commissioner to charter
67.28a school. The application for approval as a charter school authorizer must demonstrate
67.29the applicant's ability to implement the procedures and satisfy the criteria for chartering a
67.30school under this section. The commissioner must approve or disapprove an application
67.31within 60 business days of the application deadline. If the commissioner disapproves
67.32the application, the commissioner must notify the applicant of the deficiencies and the
67.33applicant then has 20 business days to address the deficiencies to the commissioner's
67.34satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
67.35an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
67.36approval, must consider the applicant's:
68.1(1) capacity and infrastructure;
68.2(2) application criteria and process;
68.3(3) contracting process;
68.4(4) ongoing oversight and evaluation processes; and
68.5(5) renewal criteria and processes.
68.6(d) The affidavit to be submitted to and evaluated by the commissioner must include
68.7at least the following:
68.8(1) how chartering schools is a way for the organization to carry out its mission;
68.9(2) a description of the capacity of the organization to serve as a sponsor, including
68.10the personnel who will perform the sponsoring duties, their qualifications, the amount of
68.11time they will be assigned to this responsibility, and the financial resources allocated
68.12by the organization to this responsibility;
68.13(3) a description of the application and review process the authorizer will use to make
68.14decisions regarding the granting of charters, which will include at least the following:
68.15(i) how the statutory purposes defined in subdivision 1 are addressed;
68.16(ii) the mission, goals, program model, and student performance expectations;
68.17(iii) an evaluation plan for the school that includes criteria for evaluating educational,
68.18organizational, and fiscal plans;
68.19(iv) the school's governance plan;
68.20(v) the financial management plan; and
68.21(vi) the administration and operations plan;
68.22(4) a description of the type of contract it will arrange with the schools it charters
68.23that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
68.24charter school for governing its educational program, controlling its funds, and making
68.25school management decisions;
68.26(5) the process to be used for providing ongoing oversight of the school consistent
68.27with the contract expectations specified in clause (4) that assures that the schools chartered
68.28are complying with both the provisions of applicable law and rules, and with the contract;
68.29(6) the process for making decisions regarding the renewal or termination of
68.30the school's charter based on evidence that demonstrates the academic, organizational,
68.31and financial competency of the school, including its success in increasing student
68.32achievement and meeting the goals of the charter school agreement; and
68.33(7) an assurance specifying that the organization is committed to serving as a
68.34sponsor for the full five-year term.
68.35A disapproved applicant under this paragraph may resubmit an application during a
68.36future application period.
69.1(e) The authorizer must participate in department-approved training.
69.2(f) An authorizer that chartered a school before August 1, 2009, must apply by
69.3June 30, 2011, to the commissioner for approval, under paragraph (c), to continue as an
69.4authorizer under this section. For purposes of this paragraph, an authorizer that fails to
69.5submit a timely application is ineligible to charter a school.
69.6(g) The commissioner shall review an authorizer's performance every five years in
69.7a manner and form determined by the commissioner and may review an authorizer's
69.8performance more frequently at the commissioner's own initiative or at the request of a
69.9charter school operator, charter school board member, or other interested party. The
69.10commissioner, after completing the review, shall transmit a report with findings to the
69.11authorizer. If, consistent with this section, the commissioner finds that an authorizer
69.12has not fulfilled the requirements of this section, the commissioner may subject the
69.13authorizer to corrective action, which may include terminating the contract with the
69.14charter school board of directors of a school it chartered. The commissioner must notify
69.15the authorizer in writing of any findings that may subject the authorizer to corrective
69.16action and the authorizer then has 15 business days to request an informal hearing before
69.17the commissioner takes corrective action.
69.18(h) The commissioner may at any time take corrective action against an authorizer,
69.19including terminating an authorizer's ability to charter a school for:
69.20(1) failing to demonstrate the criteria under paragraph (c) under which the
69.21commissioner approved the authorizer;
69.22(2) violating a term of the chartering contract between the authorizer and the charter
69.23school board of directors; or
69.24(3) unsatisfactory performance as an approved authorizer.
69.25    Subd. 4. Formation of school. (a) A sponsor An authorizer, after receiving an
69.26application from a school developer, may authorize charter a licensed teacher under
69.27section 122A.18, subdivision 1, or a group of individuals that includes one or more
69.28licensed teachers under section 122A.18, subdivision 1, to operate a charter school subject
69.29to the commissioner's approval by the commissioner of the authorizer's affidavit under
69.30paragraph (b). A board must vote on charter school application for sponsorship no later
69.31than 90 days after receiving the application. The school must be organized and operated
69.32as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
69.33the provisions under the applicable chapter shall apply to the school except as provided
69.34in this section.
70.1Notwithstanding sections 465.717 and 465.719, a school district, subject to this
70.2section and section 124D.11, may create a corporation for the purpose of creating
70.3establishing a charter school.
70.4    (b) Before the operators may form establish and operate a school, the sponsor
70.5authorizer must file an affidavit with the commissioner stating its intent to authorize a
70.6charter a school. An authorizer must file a separate affidavit for each school it intends
70.7to charter. The affidavit must state the terms and conditions under which the sponsor
70.8authorizer would authorize a charter a school and how the sponsor authorizer intends
70.9to oversee the fiscal and student performance of the charter school and to comply with
70.10the terms of the written contract between the sponsor authorizer and the charter school
70.11board of directors under subdivision 6. The commissioner must approve or disapprove
70.12the sponsor's proposed authorization authorizer's affidavit within 90 60 business days of
70.13receipt of the affidavit. If the commissioner disapproves the affidavit, the commissioner
70.14shall notify the authorizer of the deficiencies in the affidavit and the authorizer then has 20
70.15business days to address the deficiencies. If the authorizer does not address deficiencies to
70.16the commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
70.17commissioner approval precludes a sponsor an authorizer from authorizing chartering the
70.18charter school that was is the subject of the this affidavit.
70.19    (c) The authorizer may prevent an approved charter school from opening for
70.20operation if, among other grounds, the charter school violates this section or does not meet
70.21the ready-to-open standards that are part of the authorizer's oversight and evaluation
70.22process or are stipulated in the charter school contract.
70.23(d) The operators authorized to organize and operate a school, before entering into
70.24a contract or other agreement for professional or other services, goods, or facilities,
70.25must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
70.26under chapter 317A and must establish a board of directors composed of at least five
70.27members who are not related parties until a timely election for members of the ongoing
70.28charter school board of directors is held according to the school's articles and bylaws
70.29under paragraph (f). A charter school board of directors must be composed of at least
70.30five members who are not related parties. Any Staff members who are employed at the
70.31school, including teachers providing instruction under a contract with a cooperative, and
70.32all parents or legal guardians of children enrolled in the school may participate in the
70.33election for are the voters eligible to elect the members of the school's board of directors.
70.34Licensed teachers employed at the school, including teachers providing instruction under
70.35a contract with a cooperative, must be a majority of the members of the board of directors
70.36before the school completes its third year of operation, unless the commissioner waives
71.1the requirement for a majority of licensed teachers on the board. A charter school must
71.2notify eligible voters of the school board election dates at least 30 days before the election.
71.3Board of director meetings must comply with chapter 13D.
71.4    (d) (e) Upon the request of an individual, the charter school must make available
71.5in a timely fashion the minutes of meetings of the board of directors, and of members
71.6and committees having any board-delegated authority; financial statements showing all
71.7operations and transactions affecting income, surplus, and deficit during the school's last
71.8annual accounting period; and a balance sheet summarizing assets and liabilities on the
71.9closing date of the accounting period. A charter school also must post on its official Web
71.10site information identifying its authorizer and indicate how to contact that authorizer and
71.11include that same information about its authorizer in other school materials that it makes
71.12available to the public.
71.13(f) Every charter school board member shall attend department-approved training on
71.14board governance, the board's role and responsibilities, employment policies and practices,
71.15and financial management. A board member who does not begin the required training
71.16within six months of being seated and complete the required training within 12 months of
71.17being seated on the board is ineligible to continue to serve as a board member.
71.18(g) The ongoing board must be elected before the school completes its third year
71.19of operation. Board elections must be held during a time when school is in session. The
71.20charter school board of directors shall be composed of at least five nonrelated members
71.21and include: (i) at least one licensed teacher employed at the school or a licensed teacher
71.22providing instruction under a contact between the charter school and a cooperative; (ii) the
71.23parent or legal guardian of a student enrolled in the charter school; and (iii) an interested
71.24community member who is not employed by the charter school and does not have a
71.25child enrolled in the school. The board may be a teacher majority board composed of
71.26teachers described in this paragraph. The chief financial officer and the chief administrator
71.27are ex-officio nonvoting board members. Board bylaws shall outline the process and
71.28procedures for changing the board's governance model, consistent with chapter 317A. A
71.29board may change its governance model only:
71.30(1) by a majority vote of the board of directors and the licensed teachers employed
71.31by the school, including licensed teachers providing instruction under a contract between
71.32the school and a cooperative; and
71.33(2) with the authorizer's approval.
71.34Any change in board governance must conform with the board structure established
71.35under this paragraph.
72.1(h) The granting or renewal of a charter by a sponsoring entity an authorizer must
72.2not be conditioned upon the bargaining unit status of the employees of the school.
72.3(e) A sponsor (i) The granting or renewal of a charter school by an authorizer must
72.4not be contingent on the charter school being required to contract, lease, or purchase
72.5services from the authorizer. Any potential contract, lease, or purchase of service from
72.6an authorizer must be disclosed to the commissioner, accepted through an open bidding
72.7process, and be a separate contract from the charter contract. The school must document
72.8the open bidding process. An authorizer must not enter into a contract to provide
72.9management and financial services for a school that it authorizes, unless the school
72.10documents that it received at least two competitive bids.
72.11    (j) An authorizer may authorize permit the operators board of directors of a charter
72.12school to expand the operation of the charter school to additional sites or to add additional
72.13grades at the school beyond those described in the sponsor's application authorizer's
72.14original affidavit as approved by the commissioner only after submitting a supplemental
72.15application affidavit for approval to the commissioner in a form and manner prescribed by
72.16the commissioner. The supplemental application affidavit must provide evidence show
72.17that:
72.18    (1) the expansion of proposed by the charter school is supported by need and
72.19projected enrollment;
72.20(2) the charter school expansion is warranted, at a minimum, by longitudinal data
72.21demonstrating students' improved academic performance and growth on statewide
72.22assessments under chapter 120B;
72.23    (2) (3) the charter school is fiscally sound and has the financial capacity to implement
72.24the proposed expansion; and
72.25    (3) (4) the sponsor supports the authorizer finds that the charter school has the
72.26management capacity to carry out its expansion; and.
72.27    (4) the building of the additional site meets all health and safety requirements to
72.28be eligible for lease aid.
72.29    (f) The commissioner annually must provide timely financial management training
72.30to newly elected members of a charter school board of directors and ongoing training to
72.31other members of a charter school board of directors. Training must address ways to:
72.32    (1) proactively assess opportunities for a charter school to maximize all available
72.33revenue sources;
72.34    (2) establish and maintain complete, auditable records for the charter school;
72.35    (3) establish proper filing techniques;
73.1    (4) document formal actions of the charter school, including meetings of the charter
73.2school board of directors;
73.3    (5) properly manage and retain charter school and student records;
73.4    (6) comply with state and federal payroll record-keeping requirements; and
73.5    (7) address other similar factors that facilitate establishing and maintaining complete
73.6records on the charter school's operations.
73.7    (k) The commissioner shall have 30 business days to review and comment on the
73.8supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
73.9the supplemental affidavit and the authorizer then has 30 business days to address, to the
73.10commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
73.11may not expand grades or add sites until the commissioner has approved the supplemental
73.12affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
73.13    Subd. 4a. Conflict of interest. (a) A member of a charter school board of directors
73.14An individual is prohibited from serving as a member of the charter school board of
73.15directors or as if the individual, an immediate family member, or the individual's partner is
73.16an owner, employee or agent of or a contractor with a for-profit or nonprofit entity with
73.17whom the charter school contracts, directly or indirectly, for professional services, goods,
73.18or facilities. A violation of this prohibition renders a contract voidable at the option of
73.19the commissioner or the charter school board of directors. A member of a charter school
73.20board of directors who violates this prohibition shall be is individually liable to the charter
73.21school for any damage caused by the violation.
73.22(b) No member of the board of directors, employee, officer, or agent of a charter
73.23school shall participate in selecting, awarding, or administering a contract if a conflict
73.24of interest exists. A conflict exists when:
73.25(1) the board member, employee, officer, or agent;
73.26(2) the immediate family of the board member, employee, officer, or agent;
73.27(3) the partner of the board member, employee, officer, or agent; or
73.28(4) an organization that employs, or is about to employ any individual in clauses
73.29(1) to (3),
73.30has a financial or other interest in the entity with which the charter school is contracting.
73.31A violation of this prohibition renders the contract void.
73.32(c) Any employee, agent, or board member of the authorizer who participates
73.33in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
73.34nonrenewal process or decision is ineligible to serve on the board of directors of a school
73.35chartered by that authorizer.
74.1(b) (d) An individual may serve as a member of the board of directors if no conflict
74.2of interest under paragraph (a) exists.
74.3(c) A member of a charter school board of directors that serves as a member of the
74.4board of directors or as an employee or agent of or a contractor with a nonprofit entity
74.5with whom the charter school contracts, directly or indirectly, for professional services,
74.6goods, or facilities, must disclose all potential conflicts to the commissioner.
74.7(d) (e) The conflict of interest provisions under this subdivision do not apply to
74.8compensation paid to a teacher employed by the charter school who also serves as a
74.9member of the board of directors.
74.10(e) (f) The conflict of interest provisions under this subdivision do not apply to a
74.11teacher who provides services to a charter school through a cooperative formed under
74.12chapter 308A when the teacher also serves on the charter school board of directors.
74.13    Subd. 5. Conversion of existing schools. A board of an independent or special
74.14school district may convert one or more of its existing schools to charter schools under
74.15this section if 60 percent of the full-time teachers at the school sign a petition seeking
74.16conversion. The conversion must occur at the beginning of an academic year.
74.17    Subd. 6. Charter contract. The sponsor's authorization for a charter school must
74.18be in the form of a written contract signed by the sponsor authorizer and the board of
74.19directors of the charter school. The contract must be completed within 90 45 business
74.20days of the commissioner's approval of the sponsor's proposed authorization. authorizer's
74.21affidavit. The authorizer shall submit to the commissioner a copy of the signed charter
74.22contract within ten business days of its execution. The contract for a charter school must
74.23be in writing and contain at least the following:
74.24(1) a description of a program that carries out one or more of the purposes
74.25declaration of the purposes in subdivision 1 that the school intends to carry out and how
74.26the school will report its implementation of those purposes;
74.27(2) a description of the school program and the specific academic and nonacademic
74.28outcomes that pupils are to must achieve under subdivision 10;
74.29(3) a statement of admission policies and procedures;
74.30(4) a governance, management, and administration of plan for the school;
74.31(5) signed agreements from charter school board members to comply with all federal
74.32and state laws governing organizational, programmatic, and financial requirements and
74.33procedures for program and financial audits applicable to charter schools;
74.34(6) how the school will comply with subdivisions 8, 13, 16, and 23 the criteria,
74.35processes, and procedures that the authorizer will use for ongoing oversight of operational,
74.36financial, and academic performance;
75.1(7) assumption of liability by the charter school the performance evaluation that is a
75.2prerequisite for reviewing a charter contract under subdivision 15;
75.3(8) types and amounts of insurance liability coverage to be obtained by the charter
75.4school;
75.5(9) the term of the contract, which may be up to three years for an initial contract
75.6plus an additional preoperational planning year, and up to five years for a renewed contract
75.7if warranted by the school's academic, financial, and operational performance;
75.8(10) if how the board of directors or the operators of the charter school will provide
75.9special instruction and services for children with a disability under sections 125A.03
75.10to 125A.24, and 125A.65, a description of the financial parameters within which the
75.11charter school will operate to provide the special instruction and services to children
75.12with a disability; and
75.13(11) the process and criteria the sponsor authorizer intends to use to monitor
75.14and evaluate the fiscal and student performance of the charter school, consistent with
75.15subdivision 15.; and
75.16(12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
75.17closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
75.18and that includes establishing the responsibilities of the school board of directors and the
75.19authorizer and notifying the commissioner, authorizer, school district in which the charter
75.20school is located, and parents of enrolled students about the closure, the transfer of student
75.21records to students' resident districts, and procedures for closing financial operations.
75.22    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
75.23commissioner and its authorizer by December 31 each year.
75.24(b) The charter school, with the assistance of the auditor conducting the audit, must
75.25include with the report a copy of all charter school agreements for corporate management
75.26services. If the entity that provides the professional services to the charter school is
75.27exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
75.28must file with the commissioner by February 15 a copy of the annual return required under
75.29section 6033 of the Internal Revenue Code of 1986.
75.30(c) If the commissioner receives as part of the an audit report a management letter
75.31indicating that a material weakness exists in the financial reporting systems of a charter
75.32school, the charter school must submit a written report to the commissioner explaining
75.33how the material weakness will be resolved.
75.34 Upon the request of an individual, the charter school must make available in a timely
75.35fashion the minutes of meetings of members, the board of directors, and committees
75.36having any of the authority of the board of directors, and statements showing the financial
76.1result of all operations and transactions affecting income and surplus during the school's
76.2last annual accounting period and a balance sheet containing a summary of its assets and
76.3liabilities as of the closing date of the accounting period.
76.4    Subd. 7. Public status; exemption from statutes and rules. A charter school is a
76.5public school and is part of the state's system of public education. Except as provided in
76.6this section, a charter school is exempt from all statutes and rules applicable to a school, a
76.7board, or a district, although it may elect to comply with one or more provisions of statutes
76.8or rules. A charter school is exempt from all statutes and rules applicable to a school,
76.9school board, or school district unless a statute or rule is made specifically applicable to a
76.10charter school or is included in this section.
76.11    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
76.12applicable federal, state, and local health and safety requirements applicable to school
76.13districts.
76.14(b) A school must comply with statewide accountability requirements governing
76.15standards and assessments in chapter 120B.
76.16(c) A school sponsored by a school board may be located in any district, unless the
76.17school board of the district of the proposed location disapproves by written resolution.
76.18(c) (d) A charter school must be nonsectarian in its programs, admission policies,
76.19employment practices, and all other operations. A sponsor may not authorize a charter
76.20school or program that is affiliated with a nonpublic sectarian school or a religious
76.21institution. A charter school student must be released for religious instruction, consistent
76.22with section 120A.22, subdivision 12, clause (3).
76.23(d) (e) Charter schools must not be used as a method of providing education or
76.24generating revenue for students who are being home-schooled.
76.25(e) (f) The primary focus of a charter school must be to provide a comprehensive
76.26program of instruction for at least one grade or age group from five through 18 years
76.27of age. Instruction may be provided to people younger than five years and older than
76.2818 years of age.
76.29(f) (g) A charter school may not charge tuition.
76.30(g) (h) A charter school is subject to and must comply with chapter 363A and
76.31section 121A.04.
76.32(h) (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
76.33Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
76.34123B.34 to 123B.39.
76.35(i) (j) A charter school is subject to the same financial audits, audit procedures, and
76.36audit requirements as a district. Audits must be conducted in compliance with generally
77.1accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
77.2and section 6.65. A charter school is subject to and must comply with sections 15.054;
77.3118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
77.4471.38 ; 471.391; 471.392; and 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12,
77.513, and 15
; 471.881; and 471.89. The audit must comply with the requirements of sections
77.6123B.75 to 123B.83, except to the extent deviations are necessary because of the program
77.7at the school. Deviations must be approved by the commissioner and authorizer. The
77.8Department of Education, state auditor, or legislative auditor or authorizer may conduct
77.9financial, program, or compliance audits. A charter school determined to be in statutory
77.10operating debt under sections 123B.81 to 123B.83 must submit a plan under section
77.11123B.81, subdivision 4 .
77.12(j) (k) A charter school is a district for the purposes of tort liability under chapter 466.
77.13(k) (l) A charter school must comply with sections 13.32 chapters 13 and 13D; and
77.14sections 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
77.15(l) (m) A charter school is subject to the Pledge of Allegiance requirement under
77.16section 121A.11, subdivision 3.
77.17(n) A charter school offering online courses or programs must comply with section
77.18124D.095.
77.19(o) A charter school and charter school board of directors are subject to chapter 181.
77.20(p) A charter school must comply with section 120A.22, subdivision 7, governing
77.21the transfer of students' educational records and sections 138.163 and 138.17 governing
77.22the management of local records.
77.23    Subd. 8a. Aid reduction. The commissioner may reduce a charter school's state aid
77.24under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
77.25under this section.
77.26    Subd. 8b. Aid reduction for violations. The commissioner may reduce a charter
77.27school's state aid by an amount not to exceed 60 percent of the charter school's basic
77.28revenue for the period of time that a violation of law occurs.
77.29    Subd. 9. Admission requirements. A charter school may limit admission to:
77.30(1) pupils within an age group or grade level;
77.31(2) people pupils who are eligible to participate in the graduation incentives program
77.32under section 124D.68; or
77.33(3) residents of a specific geographic area where the percentage of the population
77.34of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
77.35population in the congressional district in which the geographic area is located, and as
77.36long as the school reflects the racial and ethnic diversity of the specific area in which the
78.1school is located when the majority of students served by the school are members of
78.2underserved populations in which the school is located when the majority of students
78.3served by the school are members of underserved populations.
78.4A charter school shall enroll an eligible pupil who submits a timely application,
78.5unless the number of applications exceeds the capacity of a program, class, grade level,
78.6or building. In this case, pupils must be accepted by lot. If a charter school is the only
78.7school located in a town serving pupils within a particular grade level, then pupils that
78.8are residents of the town must be given preference for enrollment before accepting pupils
78.9by lot. If a pupil lives within two miles of a charter school and the next closest public
78.10school is more than five miles away, the charter school must give those pupils preference
78.11for enrollment before accepting other pupils by lot. The charter school must develop and
78.12publish a lottery policy and process that it must use when accepting pupils by lot.
78.13A charter school shall give preference for enrollment to a sibling of an enrolled pupil
78.14and to a foster child of that pupil's parents and may give preference for enrolling children
78.15of the school's teachers before accepting other pupils by lot.
78.16A charter school may not limit admission to pupils on the basis of intellectual ability,
78.17measures of achievement or aptitude, or athletic ability and may not establish any criteria
78.18or requirements for admission that are inconsistent with this subdivision.
78.19The charter school shall not distribute any services or goods of value to students,
78.20parents or guardians as an inducement, term, or condition of enrolling a student in a
78.21charter school.
78.22    Subd. 10. Pupil performance. A charter school must design its programs to at
78.23least meet the outcomes adopted by the commissioner for public school students. In the
78.24absence of the commissioner's requirements, the school must meet the outcomes contained
78.25in the contract with the sponsor authorizer. The achievement levels of the outcomes
78.26contained in the contract may exceed the achievement levels of any outcomes adopted by
78.27the commissioner for public school students.
78.28    Subd. 11. Employment and other operating matters. (a) A charter school must
78.29employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
78.30who hold valid licenses to perform the particular service for which they are employed in
78.31the school. The charter school's state aid may be reduced under section 127A.42 127A.43
78.32if the school employs a teacher who is not appropriately licensed or approved by the
78.33board of teaching. The school may employ necessary employees who are not required to
78.34hold teaching licenses to perform duties other than teaching and may contract for other
78.35services. The school may discharge teachers and nonlicensed employees. The charter
78.36school board is subject to section 181.932. When offering employment to a prospective
79.1employee, a charter school must give that employee a written description of the terms and
79.2conditions of employment and the school's personnel policies.
79.3(b) A person, without holding a valid administrator's license, may perform
79.4administrative, supervisory, or instructional leadership duties. The board of directors shall
79.5establish qualifications for persons that hold administrative, supervisory, or instructional
79.6leadership roles. The qualifications shall include at least the following areas: instruction
79.7and assessment; human resource and personnel management; financial management;
79.8legal and compliance management; effective communication; and board, authorizer, and
79.9community relationships. The board of directors shall use those qualifications as the basis
79.10for job descriptions, hiring, and performance evaluations of those who hold administrative,
79.11supervisory, or instructional leadership roles. The board of directors and an individual
79.12who does not hold a valid administrative license and who serves in an administrative,
79.13supervisory, or instructional leadership position shall develop a professional development
79.14plan. Documentation of the implementation of the professional development plan of these
79.15persons shall be included in the school's annual report.
79.16(c) The board of directors also shall decide matters related to the operation of the
79.17school, including budgeting, curriculum and operating procedures.
79.18    Subd. 12. Pupils with a disability. A charter school must comply with sections
79.19125A.02 , 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
79.20with a disability as though it were a district.
79.21    Subd. 13. Length of school year. A charter school must provide instruction
79.22each year for at least the number of days required by section 120A.41. It may provide
79.23instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
79.24    Subd. 14. Annual public reports. A charter school must publish an annual report at
79.25least annually to its sponsor and the commissioner the information required by the sponsor
79.26or the commissioner approved by the board of directors. The annual report must at least
79.27include information on school enrollment, student attrition, governance and management,
79.28staffing, finances, academic performance, operational performance, innovative practices
79.29and implementation, and future plans. A charter school must distribute the annual report
79.30by publication, mail, or electronic means to the commissioner, sponsor, school employees,
79.31and parents and legal guardians of students enrolled in the charter school and must also
79.32post the report on the charter school's official Web site. The reports are public data under
79.33chapter 13.
79.34    Subd. 15. Review and comment. (a) The department must review and comment on
79.35the evaluation, by the sponsor, of the performance of a charter school before the charter
79.36school's contract is renewed for another contract term. The sponsor must submit to the
80.1commissioner timely information for the review and comment The authorizer shall
80.2provide a formal written evaluation of the school's performance before the authorizer
80.3renews the charter contract. The department must review and comment on the authorizer's
80.4evaluation process at the time the sponsor submits its application for approval and each
80.5time the authorizer undergoes its five-year review under subdivision 3, paragraph (e).
80.6(b) A sponsor shall monitor and evaluate the fiscal, operational, and student
80.7performance of the school, and may for this purpose annually assess a charter school: (1)
80.8in its first, second, or third year of operation up to $30 per student up to a maximum of
80.9$10,000; and (2) in its fourth or a subsequent year of operation up to $10 per student up to
80.10a maximum of $3,500 a fee according to paragraph (c). The agreed upon fee structure
80.11must be stated in the charter school contract.
80.12(c) The fee that each charter school pays to an authorizer each year is the greater of:
80.13(1) the basic formula allowance for that year; or
80.14(2) the lesser of:
80.15(i) the maximum fee factor times the basic formula allowance for that year; or
80.16(ii) the fee factor times the basic formula allowance for that year times the charter
80.17school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
80.18year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
80.19and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
80.203.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
80.21(d) The department and any charter school it charters must not assess or pay a fee
80.22under paragraphs (b) and (c).
80.23(e) For the preoperational planning period, the authorizer may assess a charter school
80.24a fee equal to the basic formula allowance.
80.25(f) By September 30 of each year, an authorizer shall submit to the commissioner
80.26a statement of expenditures related to chartering activities during the previous school
80.27year ending June 30. A copy of the statement shall be given to all schools chartered by
80.28the authorizer.
80.29    Subd. 16. Transportation. (a) A charter school after its first fiscal year of operation
80.30by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
80.31operation must notify the district in which the school is located and the Department of
80.32Education if it will provide its own transportation or use the transportation services of the
80.33district in which it is located for the fiscal year.
80.34(b) If a charter school elects to provide transportation for pupils, the transportation
80.35must be provided by the charter school within the district in which the charter school is
81.1located. The state must pay transportation aid to the charter school according to section
81.2124D.11, subdivision 2 .
81.3For pupils who reside outside the district in which the charter school is located, the
81.4charter school is not required to provide or pay for transportation between the pupil's
81.5residence and the border of the district in which the charter school is located. A parent
81.6may be reimbursed by the charter school for costs of transportation from the pupil's
81.7residence to the border of the district in which the charter school is located if the pupil is
81.8from a family whose income is at or below the poverty level, as determined by the federal
81.9government. The reimbursement may not exceed the pupil's actual cost of transportation
81.10or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
81.11more than 250 miles per week.
81.12At the time a pupil enrolls in a charter school, the charter school must provide the
81.13parent or guardian with information regarding the transportation.
81.14(c) If a charter school does not elect to provide transportation, transportation for
81.15pupils enrolled at the school must be provided by the district in which the school is
81.16located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
81.17pupil residing in the same district in which the charter school is located. Transportation
81.18may be provided by the district in which the school is located, according to sections
81.19123B.88, subdivision 6 , and 124D.03, subdivision 8, for a pupil residing in a different
81.20district. If the district provides the transportation, the scheduling of routes, manner and
81.21method of transportation, control and discipline of the pupils, and any other matter relating
81.22to the transportation of pupils under this paragraph shall be within the sole discretion,
81.23control, and management of the district.
81.24    Subd. 17. Leased space. A charter school may lease space from a an independent or
81.25special school board eligible to be a sponsor or an authorizer, other public or organization,
81.26private, nonprofit nonsectarian organization, private property owner, or a sectarian
81.27organization if the leased space is constructed as a school facility. The department
81.28must review and approve or disapprove leases in a timely manner. If a charter school
81.29is unable to lease appropriate space from an eligible board or other public or private
81.30nonprofit nonsectarian organization, the school may lease space from another nonsectarian
81.31organization if the Department of Education, in consultation with the Department of
81.32Administration, approves the lease. If the school is unable to lease appropriate space from
81.33public or private nonsectarian organizations, the school may lease space from a sectarian
81.34organization if the leased space is constructed as a school facility and the Department of
81.35Education, in consultation with the Department of Administration, approves the lease.
82.1    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
82.2may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
82.3existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
82.4must submit an affidavit to the commissioner for approval in the form and manner the
82.5commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
82.6(b) An affiliated nonprofit building corporation under this subdivision must:
82.7(1) be incorporated under section 317A and comply with applicable Internal
82.8Revenue Service regulations;
82.9(2) submit to the commissioner each fiscal year a list of current board members
82.10and a copy of its annual audit; and
82.11(3) comply with government data practices law under chapter 13.
82.12An affiliated nonprofit building corporation must not serve as the leasing agent for
82.13property or facilities it does not own. A charter school that leases a facility from an
82.14affiliated nonprofit building corporation that does not own the leased facility is ineligible
82.15to receive charter school lease aid. The state is immune from liability resulting from a
82.16contract between a charter school and an affiliated nonprofit building corporation.
82.17(c) A charter school may organize an affiliated nonprofit building corporation to
82.18renovate or purchase an existing facility to serve as a school if the charter school:
82.19(1) has been operating for at least five consecutive school years and the school's
82.20charter has been renewed for a five-year term;
82.21(2) has had a net positive unreserved general fund balance as of June 30 in the
82.22preceding five fiscal years;
82.23(3) has a long-range strategic and financial plan;
82.24(4) completes a feasibility study of available buildings; and
82.25(5) documents sustainable enrollment projections and the need to use an affiliated
82.26building corporation to renovate or purchase an existing facility to serve as a school.
82.27(d) A charter school may organize an affiliated nonprofit building corporation to
82.28construct a new school facility if the charter school:
82.29(1) demonstrates the lack of facilities available to serve as a school;
82.30(2) has been operating for at least eight consecutive school years;
82.31(3) has had a net positive unreserved general fund balance as of June 30 in the
82.32preceding eight fiscal years;
82.33(4) completes a feasibility study of facility options;
82.34(5) has a long-range strategic and financial plan that includes sustainable enrollment
82.35projections and demonstrates the need for constructing a new school facility; and
82.36(6) a positive review and comment from the commissioner under section 123B.71.
83.1    Subd. 18. Authority to raise initial working capital. A sponsor may authorize
83.2a charter school before the applicant has secured its space, equipment, facilities, and
83.3personnel if the applicant indicates the authority is necessary for it to raise working
83.4capital. A sponsor may not authorize a school before the commissioner has approved the
83.5authorization.
83.6    Subd. 19. Disseminate information. (a) The sponsor authorizer, the operators, and
83.7the Department of Education department must disseminate information to the public
83.8on how to form and operate a charter school and. Charter schools must disseminate
83.9information about how to utilize use the offerings of a charter school. Particular Targeted
83.10groups to be targeted include low-income families and communities, and students of
83.11color, and students who are at risk of academic failure.
83.12(b) Authorizers, operators, and the department also may disseminate information
83.13about the successful best practices in teaching and learning demonstrated by charter
83.14schools.
83.15    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
83.16makes a written request for an extended leave of absence to teach at a charter school,
83.17the district must grant the leave. The district must grant a leave not to exceed a total of
83.18five years. Any request to extend the leave shall be granted only at the discretion of the
83.19school board. The district may require that the request for a leave or extension of leave
83.20be made up to 90 days before the teacher would otherwise have to report for duty before
83.21February 1 in the school year preceding the school year in which the teacher intends
83.22to leave, or February 1 of the calendar year in which the teacher's leave is scheduled
83.23to terminate. Except as otherwise provided in this subdivision and except for section
83.24122A.46, subdivision 7 , the leave is governed by section 122A.46, including, but not
83.25limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
83.26During a leave, the teacher may continue to aggregate benefits and credits in the
83.27Teachers' Retirement Association account by paying both the employer and employee
83.28contributions based upon the annual salary of the teacher for the last full pay period before
83.29the leave began. The retirement association may impose reasonable requirements to
83.30efficiently administer this subdivision under chapters 354 and 354A, consistent with
83.31subdivision 22.
83.32    Subd. 21. Collective bargaining. Employees of the board of directors of a charter
83.33school may, if otherwise eligible, organize under chapter 179A and comply with its
83.34provisions. The board of directors of a charter school is a public employer, for the
83.35purposes of chapter 179A, upon formation of one or more bargaining units at the school.
83.36Bargaining units at the school must be separate from any other units within the sponsoring
84.1an authorizing district, except that bargaining units may remain part of the appropriate
84.2unit within the sponsoring an authorizing district, if the employees of the school, the
84.3board of directors of the school, the exclusive representative of the appropriate unit in the
84.4sponsoring authorizing district, and the board of the sponsoring authorizing district agree
84.5to include the employees in the appropriate unit of the sponsoring authorizing district.
84.6    Subd. 22. Teacher and other employee retirement. (a) Teachers in a charter
84.7school must be public school teachers for the purposes of chapters 354 and 354a.
84.8(b) Except for teachers under paragraph (a), employees in a charter school must be
84.9public employees for the purposes of chapter 353.
84.10    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
84.11The duration of the contract with a sponsor authorizer must be for the term contained in
84.12the contract according to subdivision 6. The sponsor authorizer may or may not renew a
84.13contract at the end of the term for any ground listed in paragraph (b). A sponsor authorizer
84.14may unilaterally terminate a contract during the term of the contract for any ground
84.15listed in paragraph (b). At least 60 days before not renewing or terminating a contract,
84.16the sponsor authorizer shall notify the board of directors of the charter school of the
84.17proposed action in writing. The notice shall state the grounds for the proposed action in
84.18reasonable detail and that the charter school's board of directors may request in writing an
84.19informal hearing before the sponsor authorizer within 14 15 business days of receiving
84.20notice of nonrenewal or termination of the contract. Failure by the board of directors to
84.21make a written request for a hearing within the 14-day 15-business-day period shall be
84.22treated as acquiescence to the proposed action. Upon receiving a timely written request
84.23for a hearing, the sponsor authorizer shall give reasonable ten business days' notice to
84.24the charter school's board of directors of the hearing date. The sponsor authorizer shall
84.25conduct an informal hearing before taking final action. The sponsor authorizer shall take
84.26final action to renew or not renew a contract by the last day of classes in the school year.
84.27If the sponsor is a local board, the school's board of directors may appeal the sponsor's
84.28decision to the commissioner no later than 20 business days before the proposed date for
84.29terminating the contract or the end date of the contract.
84.30(b) A contract may be terminated or not renewed upon any of the following grounds:
84.31(1) failure to meet the requirements for pupil performance contained in the contract;
84.32(2) failure to meet generally accepted standards of fiscal management;
84.33(3) violations of law; or
84.34(4) other good cause shown.
84.35If a contract is terminated or not renewed under this paragraph, the school must be
84.36dissolved according to the applicable provisions of chapter 308A or 317A, except when
85.1the commissioner approves the decision of a different eligible sponsor to authorize the
85.2charter school.
85.3(c) If at the end of a contract term, either the sponsor or and the charter school board
85.4of directors wants mutually agree to voluntarily terminate or not renew the contract, a
85.5change in sponsors is allowed if the commissioner approves the decision of transfer to a
85.6different eligible sponsor authorizer to authorize the charter school. The party intending
85.7to terminate the contract must notify the other party and the commissioner of its intent
85.8at least 90 days before the date on which the contract ends Both parties must jointly
85.9submit their intent in writing to the commissioner to mutually terminate the contract. The
85.10sponsor that is a party to the existing contract at least must inform the approved different
85.11eligible sponsor about the fiscal and operational status and student performance of the
85.12school. Before the commissioner determines whether to approve a transfer of authorizer,
85.13the commissioner first must determine whether the charter school and prospective new
85.14authorizer can identify and effectively resolve those circumstances causing the previous
85.15authorizer and the charter school to mutually agree to terminate the contract. If no
85.16different eligible transfer of sponsor is approved, the school must be dissolved according
85.17to applicable law and the terms of the contract.
85.18(d) The commissioner, after providing reasonable notice to the board of directors of
85.19a charter school and the existing sponsor authorizer, and after providing an opportunity for
85.20a public hearing, may terminate the existing sponsorial relationship contract between the
85.21authorizer and the charter school board if the charter school has a history of:
85.22(1) failure to meet pupil performance requirements contained in the contract;
85.23(2) financial mismanagement or failure to meet generally accepted standards of
85.24fiscal management; or
85.25(2) (3) repeated or major violations of the law.
85.26    (e) If the commissioner terminates a charter school contract under subdivision 3,
85.27paragraph (g), the commissioner shall provide the charter school with information about
85.28other eligible authorizers.
85.29    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
85.30entering a lease of real property with a related party as defined in subdivision 26, unless
85.31the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
85.32308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).
85.33    (b) For purposes of this section and section 124D.11:
85.34(1) "related party" means an affiliate or immediate relative of the other party in
85.35question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
86.1(2) "affiliate" means a person that directly or indirectly, through one or more
86.2intermediaries, controls, is controlled by, or is under common control with another person;
86.3(3) "immediate family" means an individual whose relationship by blood, marriage,
86.4adoption, or partnering is no more remote than first cousin;
86.5(4) "person" means an individual or entity of any kind; and
86.6(5) "control" means the ability to affect the management, operations, or policy
86.7actions or decisions of a person, whether through ownership of voting securities, by
86.8contract, or otherwise.
86.9(c) A lease of real property to be used for a charter school, not excluded in paragraph
86.10(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
86.11section 124D.10, subdivision 23a."
86.12    (c) (d) If a charter school enters into as lessee a lease with a related party and the
86.13charter school subsequently closes, the commissioner has the right to recover from the
86.14lessor any lease payments in excess of those that are reasonable under section 124D.11,
86.15subdivision 4
, clause (1).
86.16    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
86.17contract. If a contract is not renewed or is terminated according to subdivision 23, a
86.18pupil who attended the school, siblings of the pupil, or another pupil who resides in the
86.19same place as the pupil may enroll in the resident district or may submit an application
86.20to a nonresident district according to section 124D.03 at any time. Applications and
86.21notices required by section 124D.03 must be processed and provided in a prompt manner.
86.22The application and notice deadlines in section 124D.03 do not apply under these
86.23circumstances. The closed charter school must transfer the student's educational records
86.24within ten business days of closure to the student's school district of residence where the
86.25records must be retained or transferred under section 120A.22, subdivision 7.
86.26    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
86.27school may sue and be sued.
86.28(b) The board may not levy taxes or issue bonds.
86.29(c) The commissioner, a sponsor, members of the board of a sponsor in their official
86.30capacity, and employees of a sponsor are immune from civil or criminal liability with
86.31respect to all activities related to a charter school they approve or sponsor. The board
86.32of directors shall obtain at least the amount of and types of insurance required by the
86.33contract, according to subdivision 6 up to the applicable tort liability limits under chapter
86.34466. The charter school board must submit a copy of the insurance policy to its authorizer
86.35and the commissioner before starting operations. The charter school board must submit
87.1changes in its insurance carrier or policy to its authorizer and the commissioner within
87.220 business days of the change.
87.3    Subd. 26. Definitions. For purposes of this section and section 124D.11:
87.4    (1) A "Related party" is an affiliate or close relative of the other party in question, an
87.5affiliate of a close relative, or a close relative of an affiliate.
87.6    (2) "Affiliate" means a person that directly, or indirectly through one or more
87.7intermediaries, controls, or is controlled by, or is under common control with, another
87.8person.
87.9    (3) "Close relative" means an individual whose relationship by blood, marriage, or
87.10adoption to another individual is no more remote than first cousin.
87.11    (4) "Person" means an individual or entity of any kind.
87.12    (5) "Control" includes the terms "controlling," "controlled by," and "under common
87.13control with" and means the possession, direct or indirect, of the power to direct or cause
87.14the direction of the management, operations, or policies of a person, whether through the
87.15ownership of voting securities, by contract, or otherwise.
87.16EFFECTIVE DATE.(a) This section is effective the day following final enactment
87.17and applies to all contracts and affidavits approved and contracts entered into or modified
87.18beginning August 1, 2009, unless otherwise specified in this effective date.
87.19    (b) Subdivision 3, paragraph (b), clause (2), applies to an authorizer seeking
87.20approval to charter a school after the effective date of this act. The changes in subdivision
87.213, paragraph (b), clause (2), shall not apply to a sponsor under Minnesota Statutes 2008,
87.22section 124D.10, that is a party to a charter contract on the effective date of this act
87.23except that subdivision 3, paragraph (b), clause (2), item (iv), applies to such sponsors
87.24beginning July 1, 2011.
87.25(c) The changes in subdivision 9 are effective the day following final enactment and
87.26apply to the 2010-2011 school year and later.

87.27    Sec. 42. Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:
87.28    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
87.29127A.45, subdivision 3 , aid payments for the current fiscal year to a charter school not in
87.30its first year of operation shall be of an equal amount on each of the 23 24 payment dates.
87.31A charter school in its first year of operation shall receive, on its first payment date, ten
87.32percent of its cumulative amount guaranteed for the year and 22 payments of an equal
87.33amount thereafter the sum of which shall equal the current year aid payment percentage
87.34multiplied by the cumulative amount guaranteed.
88.1(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
88.2operation on or prior to the end of a school year, the current year aid payment percentage
88.3multiplied by the amount due for the school year may be paid to the school after audit
88.4of prior fiscal year and current fiscal year pupil counts. June 30 of a school year, for the
88.5payment periods occurring after the school ceases serving students, the commissioner shall
88.6withhold the estimated state aid owed the school. The charter school board of directors
88.7and authorizer must submit to the commissioner a closure plan under chapter 308A or
88.8317A, and financial information about the school's liabilities and assets. After receiving
88.9the closure plan, financial information, an audit of pupil counts, documentation of lease
88.10expenditures, and monitoring of special education expenditures, the commissioner may
88.11release cash withheld and may continue regular payments up to the current year payment
88.12percentages if further amounts are owed. If, based on audits and monitoring, the school
88.13received state aid in excess of the amount owed, the commissioner shall retain aid withheld
88.14sufficient to eliminate the aid overpayment. For a charter school ceasing operations
88.15prior to, or at the end of, a school year, notwithstanding section 127A.45, subdivision
88.163, preliminary final payments may be made after receiving the closure plan, audit of
88.17pupil counts, monitoring of special education expenditures, and documentation of lease
88.18expenditures, and school submission of Uniform Financial Accounting and Reporting
88.19Standards (UFARS) financial data for the final year of operation. Final payment may be
88.20made upon receipt of audited financial statements under section 123B.77, subdivision 3.
88.21(c) If a charter school fails to comply with the commissioner's directive to return,
88.22for cause, federal or state funds administered by the department, the commissioner may
88.23withhold an amount of state aid sufficient to satisfy the directive.
88.24(d) If, within the timeline under section 471.425, a charter school fails to pay the state
88.25of Minnesota, a school district, intermediate school district, or service cooperative after
88.26receiving an undisputed invoice for goods and services, the commissioner may withhold
88.27an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
88.28aid to the interested state agency, school district, intermediate school district, or service
88.29cooperative. An interested state agency, school district, intermediate school district, or
88.30education cooperative shall notify the commissioner when a charter school fails to pay an
88.31undisputed invoice within 75 business days of when it received the original invoice.
88.32(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
88.33of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
88.34of student attendance for that school year.
88.35(d) (f) In order to receive state aid payments under this subdivision, a charter school
88.36in its first three years of operation must submit a school calendar in the form and manner
89.1requested by the department and a quarterly report to the Department of Education. The
89.2report must list each student by grade, show the student's start and end dates, if any,
89.3with the charter school, and for any student participating in a learning year program,
89.4the report must list the hours and times of learning year activities. The report must be
89.5submitted not more than two weeks after the end of the calendar quarter to the department.
89.6The department must develop a Web-based reporting form for charter schools to use
89.7when submitting enrollment reports. A charter school in its fourth and subsequent year of
89.8operation must submit a school calendar and enrollment information to the department in
89.9the form and manner requested by the department.
89.10(e) (g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
89.11school and satisfaction of creditors, cash and investment balances remaining shall be
89.12returned to the state.

89.13    Sec. 43. Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:
89.14    Subd. 2. Commissioner designation. (a) An area learning center A state-approved
89.15alternative program designated by the state must be a site. An area learning center A
89.16state-approved alternative program must provide services to students who meet the criteria
89.17in section 124D.68 and who are enrolled in:
89.18    (1) a district that is served by the center state-approved alternative program; or
89.19    (2) a charter school located within the geographic boundaries of a district that is
89.20served by the center state-approved alternative program.
89.21    (b) A school district or charter school may be approved biennially by the state to
89.22provide additional instructional programming that results in grade level acceleration. The
89.23program must be designed so that students make grade progress during the school year
89.24and graduate prior to the students' peers.
89.25    (c) To be designated, a district, charter school, or center state-approved alternative
89.26program must demonstrate to the commissioner that it will:
89.27    (1) provide a program of instruction that permits pupils to receive instruction
89.28throughout the entire year; and
89.29    (2) develop and maintain a separate record system that, for purposes of section
89.30126C.05 , permits identification of membership attributable to pupils participating in the
89.31program. The record system and identification must ensure that the program will not have
89.32the effect of increasing the total average daily membership attributable to an individual
89.33pupil as a result of a learning year program. The record system must include the date the
89.34pupil originally enrolled in a learning year program, the pupil's grade level, the date of
90.1each grade promotion, the average daily membership generated in each grade level, the
90.2number of credits or standards earned, and the number needed to graduate.
90.3    (d) A student who has not completed a school district's graduation requirements
90.4may continue to enroll in courses the student must complete in order to graduate until
90.5the student satisfies the district's graduation requirements or the student is 21 years old,
90.6whichever comes first.

90.7    Sec. 44. Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:
90.8    Subd. 3. Student planning. A district, charter school, or area learning center
90.9state-approved alternative program must inform all pupils and their parents about the
90.10learning year program and that participation in the program is optional. A continual
90.11learning plan must be developed at least annually for each pupil with the participation
90.12of the pupil, parent or guardian, teachers, and other staff; each participant must sign and
90.13date the plan. The plan must specify the learning experiences that must occur during the
90.14entire fiscal year and are necessary for grade progression or, for secondary students,
90.15graduation. The plan must include:
90.16    (1) the pupil's learning objectives and experiences, including courses or credits the
90.17pupil plans to complete each year and, for a secondary pupil, the graduation requirements
90.18the student must complete;
90.19    (2) the assessment measurements used to evaluate a pupil's objectives;
90.20    (3) requirements for grade level or other appropriate progression; and
90.21    (4) for pupils generating more than one average daily membership in a given grade,
90.22an indication of which objectives were unmet.
90.23The plan may be modified to conform to district schedule changes. The district may
90.24not modify the plan if the modification would result in delaying the student's time of
90.25graduation.

90.26    Sec. 45. Minnesota Statutes 2008, section 124D.42, subdivision 6, is amended to read:
90.27    Subd. 6. Program training. The commission must, within available resources:
90.28(1) orient each grantee organization in the nature, philosophy, and purpose of the
90.29program; and
90.30(2) build an ethic of community service through general community service training;
90.31and.
90.32(3) provide additional training as it determines necessary, which may include
90.33training in evaluating early literacy skills and teaching reading to preschool children
90.34through the St. Croix River Education District under Laws 2001, First Special Session
91.1chapter 6, article 2, section 70, to assist local Head Start organizations in establishing and
91.2evaluating Head Start programs for developing children's early literacy skills.
91.3EFFECTIVE DATE.This section is effective the day following final enactment.

91.4    Sec. 46. Minnesota Statutes 2008, section 124D.42, is amended by adding a
91.5subdivision to read:
91.6    Subd. 6a. Minnesota reading corps program. (a) A Minnesota reading corps
91.7program is established to provide Americorps members with a data-based problem-solving
91.8model of literacy instruction to use in helping to train local Head Start program providers,
91.9other prekindergarten program providers, and staff in schools with students in kindergarten
91.10through grade 3 to evaluate and teach early literacy skills to children age 3 to grade 3.
91.11(b) Literacy programs under this subdivision must comply with the provisions
91.12governing literacy program goals and data use under section 119A.50, subdivision 3,
91.13paragraph (b).

91.14    Sec. 47. Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:
91.15    Subd. 2. Eligible pupils. A pupil under the age of 21 or who meets the requirements
91.16of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation
91.17incentives program, if the pupil:
91.18(1) performs substantially below the performance level for pupils of the same age
91.19in a locally determined achievement test;
91.20(2) is at least one year behind in satisfactorily completing coursework or obtaining
91.21credits for graduation;
91.22(3) is pregnant or is a parent;
91.23(4) has been assessed as chemically dependent;
91.24(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
91.25(6) has been referred by a school district for enrollment in an eligible program or
91.26a program pursuant to section 124D.69;
91.27(7) is a victim of physical or sexual abuse;
91.28(8) has experienced mental health problems;
91.29(9) has experienced homelessness sometime within six months before requesting a
91.30transfer to an eligible program;
91.31(10) speaks English as a second language or has limited English proficiency; or
91.32(11) has withdrawn from school or has been chronically truant; or
91.33(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
91.34other life threatening illness or is the sibling of an eligible pupil who is being currently
92.1treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
92.2of the seven-county metropolitan area.

92.3    Sec. 48. Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:
92.4    Subd. 3. Eligible programs. (a) A pupil who is eligible according to subdivision 2
92.5may enroll in area learning centers a state-approved alternative program under sections
92.6123A.05 to 123A.08.
92.7(b) A pupil who is eligible according to subdivision 2 and who is between the ages
92.8of 16 and 21 a high school junior or senior may enroll in postsecondary courses under
92.9section 124D.09.
92.10(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary
92.11or secondary education program.
92.12(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic,
92.13nonsectarian school that has contracted with the serving school district to provide
92.14educational services. However, notwithstanding other provisions of this section, only a
92.15pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative
92.16school that is specifically structured to provide educational services to such a pupil.
92.17(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic
92.18education programs approved under section 124D.52 and operated under the community
92.19education program contained in section 124D.19.

92.20    Sec. 49. Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:
92.21    Subd. 4. Additional eligible program. A pupil who is at least 16 years of age,
92.22who is eligible under subdivision 2, clause (a), and who has been enrolled only in a
92.23public school, if the pupil has been enrolled in any school, during the year immediately
92.24before transferring under this subdivision, may transfer to any nonpublic school that has
92.25contracted with the serving school district to provide nonsectarian educational services.
92.26The school must enroll every eligible pupil who seeks to transfer to the school under
92.27this program subject to available space.

92.28    Sec. 50. Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:
92.29    Subd. 5. Pupil enrollment. (a) Any eligible pupil may apply to enroll in an eligible
92.30program. Approval of the resident district is not required for:
92.31(1) an eligible pupil to enroll in any eligible program in a nonresident district
92.32under subdivision 3 or 4 or an area learning center a state-approved alternative program
92.33established under section 123A.05; or
93.1(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
93.2program approved under section 124D.52.
93.3(b) Notwithstanding paragraph (a), a nonresident district must first approve the
93.4enrollment application of any eligible pupil who was expelled under section 121A.45 for a
93.5reason stated in section 124D.03, subdivision 1, paragraph (b).
93.6EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
93.7later.

93.8    Sec. 51. Minnesota Statutes 2008, section 124D.83, subdivision 4, is amended to read:
93.9    Subd. 4. Early childhood family education revenue. A school receiving aid
93.10under this section is eligible may apply annually to the commissioner to receive an early
93.11childhood family education revenue grant to provide early childhood family education
93.12programs for parents and children who are enrolled or eligible for enrollment in a federally
93.13recognized tribe. The revenue equals 1.5 times the statewide average expenditure per
93.14participant under section 124D.135, times the number of children and parents participating
93.15full time in the program. The program must grant must be used for programs and services
93.16that comply with section 124D.13, except that the school is not required to provide a
93.17community education program or establish a community education advisory council. The
93.18program must be designed to improve the skills of parents and promote American Indian
93.19history, language, and culture. The school must make affirmative efforts to encourage
93.20participation by fathers. Admission may not be limited to those enrolled in or eligible for
93.21enrollment in a federally recognized tribe.

93.22    Sec. 52. Minnesota Statutes 2008, section 124D.86, subdivision 1, is amended to read:
93.23    Subdivision 1. Use of revenue. Districts must use integration revenue under this
93.24section must be used for programs established under a desegregation plan filed with the
93.25Department of Education according to Minnesota Rules, parts 3535.0100 to 3535.0180, or
93.26under court order. The revenue must be used to create or enhance learning opportunities
93.27which are designed to provide opportunities for students to have increased and sustained
93.28interracial contacts and improved educational opportunities and outcomes designed to
93.29close the academic achievement gap between white students and protected students as
93.30defined in Minnesota Rules, part 3535.0110, subpart 4, through classroom experiences,
93.31staff initiatives, and other educationally related programs, consistent with subdivision 1b.
93.32EFFECTIVE DATE.This section is effective for the 2010-2011 school year and
93.33later.

94.1    Sec. 53. Minnesota Statutes 2008, section 124D.86, subdivision 1a, is amended to read:
94.2    Subd. 1a. Budget approval process. Each year before a district receives any
94.3revenue under subdivision 3, clause (4), (5), or (6), the district by March 15 must submit to
94.4the Department of Education, for its review and approval by May 15 a budget detailing the
94.5costs of the desegregation/integration plan filed under Minnesota Rules, parts 3535.0100
94.6to 3535.0180. Notwithstanding chapter 14, the department may develop criteria for
94.7budget approval, consistent with subdivision 1b. The department shall consult with the
94.8Desegregation Advisory Board in developing these criteria. The criteria developed by the
94.9department should must address, at a minimum, the following:
94.10(1) budget items cannot be approved unless they are part of any overall desegregation
94.11plan approved by the district for isolated sites or by the Multidistrict Collaboration
94.12Council and participation participating individual members;
94.13(2) the budget must indicate how revenue expenditures will be used specifically to
94.14support increased opportunities for and sustained interracial contact contacts and improved
94.15educational opportunities and outcomes designed to close the academic achievement
94.16gap between white students and protected students as defined in Minnesota Rules, part
94.173535.0110, subpart 4, consistent with subdivision 1b;
94.18(3) components of the budget to be considered by the department, including staffing,
94.19curriculum, transportation, facilities, materials, and equipment and reasonable planning
94.20costs, as determined by the department; and
94.21(4) if plans are proposed to enhance existing programs, the total budget being
94.22appropriated to the program must be included, indicating what part is to be funded using
94.23integration revenue and what part is to be funded using other revenues.
94.24EFFECTIVE DATE.This section is effective for the 2010-2011 school year and
94.25later.

94.26    Sec. 54. Minnesota Statutes 2008, section 124D.86, subdivision 1b, is amended to read:
94.27    Subd. 1b. Plan components. Each year a district's board must approve the plans
94.28submitted by each district under Minnesota Rules, parts 3535.0160 and 3535.0170,
94.29must be approved by the district's board each year before integration revenue will be is
94.30awarded. If a district is applying for revenue for a plan that is part of a multidistrict
94.31council, the individual district shall not receive revenue unless it ratifies the plan adopted
94.32by its multidistrict council or approves a modified plan with a written explanation of
94.33any modifications. Each plan shall contain:
94.34(1) an identification of identify the integration issues at the sites or districts covered
94.35by Minnesota Rules, parts 3535.0100 to 3535.0180;
95.1(2) a description of describe the community outreach that preceded the integration
95.2plan, such that the commissioner can determine whether the membership of the planning
95.3councils complied with the requirements of Minnesota Rules, parts 3535.0100 to
95.43535.0180; and
95.5(3) the identify specific goals of the integration plan that is premised on valid and
95.6reliable measures, effective and efficient use of resources, and continuous adaptation of
95.7best practices;
95.8(4) provide for implementing innovative and practical strategies and programs such
95.9as magnet schools, transportation, research-based programs to improve the performance of
95.10protected students with lower measured achievement on state or local assessments, staff
95.11development for teachers in cultural competency, formative assessments, and increased
95.12numbers of teachers of color that enable the district to achieve annual progress in realizing
95.13the goals in its plan; and
95.14(5) establish valid and reliable longitudinal measures for the district to use in
95.15demonstrating to the commissioner the amount of progress it has achieved in realizing
95.16the goals in its plan.
95.17By June 30 of the subsequent fiscal year, each district shall report to the commissioner in
95.18writing about the extent to which the integration goals identified in the plan were met.
95.19EFFECTIVE DATE.This section is effective for the 2010-2011 school year and
95.20later.

95.21    Sec. 55. Minnesota Statutes 2008, section 125A.61, subdivision 1, is amended to read:
95.22    Subdivision 1. State schools at Faribault. The Minnesota State Academy for the
95.23Deaf and the Minnesota State Academy for the Blind are residential schools in Faribault.
95.24They are public schools under sections 122A.15, and 122A.16, and 122A.32 and state
95.25educational institutions.

95.26    Sec. 56. Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:
95.27    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
95.28year program under section 124D.128, an area learning center or an alternative learning
95.29program approved by the commissioner under sections 123A.05 and 123A.06, an
95.30alternative program approved by the commissioner, or a contract alternative program
95.31under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than
95.321,020 hours in a school year for a secondary student, more than 935 hours in a school year
95.33for an elementary student, or more than 425 hours in a school year for a kindergarten
96.1student without a disability, that pupil may be counted as more than one pupil in average
96.2daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess
96.3of one pupil must be determined by the ratio of the number of hours of instruction
96.4provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours
96.5required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii)
96.6the greater of 935 hours or the number of hours required for a full-time elementary pupil
96.7in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of
96.8425 hours or the number of hours required for a full-time kindergarten student without a
96.9disability in the district to 425 for a kindergarten student without a disability. Hours that
96.10occur after the close of the instructional year in June shall be attributable to the following
96.11fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average
96.12daily membership under this subdivision. A student in grades 1 through 12 must not be
96.13counted as more than 1.2 pupils in average daily membership under this subdivision.
96.14(b)(i) To receive general education revenue for a pupil in an area learning center
96.15or alternative learning program that has an independent study component, a district
96.16must meet the requirements in this paragraph. The district must develop, for the pupil,
96.17a continual learning plan consistent with section 124D.128, subdivision 3. Each school
96.18district that has a state-approved public an area learning center or alternative learning
96.19program must reserve revenue in an amount equal to at least 90 percent of the district
96.20average general education revenue per pupil unit less compensatory revenue per pupil
96.21unit, minus an amount equal to the product of the formula allowance according to section
96.22126C.10, subdivision 2, times .0485, calculated without basic skills and transportation
96.23sparsity revenue, times the number of pupil units generated by students attending a
96.24state-approved public an area learning center or alternative learning program. The amount
96.25of reserved revenue available under this subdivision may only be spent for program costs
96.26associated with the state-approved public area learning center or alternative learning
96.27program. Compensatory revenue must be allocated according to section 126C.15,
96.28subdivision 2
. Basic skills revenue generated according to section 126C.10, subdivision 4,
96.29by pupils attending the eligible program must be allocated to the program.
96.30(ii) General education revenue for a pupil in an approved a state-approved
96.31alternative program without an independent study component must be prorated for a
96.32pupil participating for less than a full year, or its equivalent. The district must develop a
96.33continual learning plan for the pupil, consistent with section 124D.128, subdivision 3.
96.34Each school district that has a state-approved public an area learning center or alternative
96.35learning program must reserve revenue in an amount equal to at least 90 percent of the
96.36district average general education revenue per pupil unit less compensatory revenue per
97.1pupil unit, minus an amount equal to the product of the formula allowance according
97.2to section 126C.10, subdivision 2, times .0485, calculated without basic skills and
97.3transportation sparsity revenue, times the number of pupil units generated by students
97.4attending a state-approved public an area learning center or alternative learning program.
97.5The amount of reserved revenue available under this subdivision may only be spent for
97.6program costs associated with the state-approved public area learning center or alternative
97.7learning program. Compensatory revenue must be allocated according to section 126C.15,
97.8subdivision 2
. Basic skills revenue generated according to section 126C.10, subdivision 4,
97.9by pupils attending the eligible program must be allocated to the program.
97.10(iii) General education revenue for a pupil in an approved a state-approved
97.11alternative program that has an independent study component must be paid for each hour
97.12of teacher contact time and each hour of independent study time completed toward a
97.13credit or graduation standards necessary for graduation. Average daily membership for a
97.14pupil shall equal the number of hours of teacher contact time and independent study
97.15time divided by 1,020.
97.16(iv) For an a state-approved alternative program having an independent study
97.17component, the commissioner shall require a description of the courses in the program, the
97.18kinds of independent study involved, the expected learning outcomes of the courses, and
97.19the means of measuring student performance against the expected outcomes.

97.20    Sec. 57. Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:
97.21    Subd. 20. Project-based average daily membership. (a) Project-based is an
97.22instructional program where students complete coursework for credit at an individual pace
97.23that is primarily student-led and may be completed on site, in the community, or online. A
97.24project-based program may be made available to all or designated students and grades
97.25in a school. To receive general education revenue for a pupil enrolled in a public school
97.26with a project-based program, a school must meet the requirements in this paragraph.
97.27The school must:
97.28(1) register with the commissioner as a project-based program by May 30 of the
97.29preceding fiscal year apply and receive approval from the commissioner as a project-based
97.30program at least 90 days prior to starting the program;
97.31(2) provide a minimum teacher contact of no less than one hour per week per
97.32project-based credit for each pupil;
97.33(3) ensure that the program will not increase the total average daily membership
97.34generated by the student and that there will be the expectation that the students will be
97.35making typical progression towards high school graduation;
98.1(3) (4) maintain a record system that shows when each credit or portion thereof was
98.2reported for membership for each pupil; and
98.3(4) (5) report pupil membership consistent with paragraph (b).
98.4(b) The commissioner must develop a formula for reporting pupil membership to
98.5compute average daily membership for each registered approved project-based school
98.6program. Average daily membership for a pupil in a registered an approved project-based
98.7program is the lesser of:
98.8(1) 1.0; or
98.9(2) the ratio of (i) the number of membership hours generated by project-based
98.10credits completed during the school year plus membership hours generated by credits
98.11completed in a seat-based setting to (ii) the annual required instructional hours at that
98.12grade level. Membership hours for a partially completed project-based credit must be
98.13prorated. General education revenue for a pupil in a project-based program must be
98.14prorated for a pupil participating for less than a full year, or its equivalent.
98.15(c) For a program that has not been approved by the commissioner for project-based
98.16learning but an auditor or other site visit deems that any portion or credits awarded
98.17by the school are project-based, student membership must be computed according to
98.18paragraph (b).

98.19    Sec. 58. [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
98.20    Subdivision 1. Establishment; membership. A P-20 education partnership is
98.21established to create a seamless system of education that maximizes achievements of
98.22all students, from early childhood through elementary, secondary, and postsecondary
98.23education, while promoting the efficient use of financial and human resources. The
98.24partnership shall consist of major statewide educational groups or constituencies or
98.25noneducational statewide organizations with a stated interest in P-20 education. The initial
98.26membership of the partnership includes the members serving on the Minnesota P-16
98.27Education Partnership and four legislators appointed as follows:
98.28    (1) one senator from the majority party and one senator from the minority party,
98.29appointed by the Subcommittee on Committees of the Committee on Rules and
98.30Administration; and
98.31    (2) one member of the house of representatives appointed by the speaker of the
98.32house and one member appointed by the minority leader of the house of representatives.
98.33    The chair of the P-16 education partnership must convene the first meeting of the
98.34P-20 partnership. Prospective members may be nominated by any partnership member and
98.35new members will be added with the approval of a two-thirds majority of the partnership.
99.1The partnership will also seek input from nonmember organizations whose expertise can
99.2help inform the partnership's work.
99.3    Partnership members shall be represented by the chief executives, presidents, or
99.4other formally designated leaders of their respective organizations, or their designees. The
99.5partnership shall meet at least three times during each calendar year.
99.6    Subd. 2. Powers and duties; report. The partnership shall develop
99.7recommendations to the governor and the legislature designed to maximize the
99.8achievement of all P-20 students while promoting the efficient use of state resources,
99.9thereby helping the state realize the maximum value for its investment. These
99.10recommendations may include, but are not limited to, strategies, policies, or other actions
99.11focused on:
99.12    (1) improving the quality of and access to education at all points from preschool
99.13through graduate education;
99.14    (2) improving preparation for, and transitions to, postsecondary education and
99.15work; and
99.16    (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
99.17teacher preparation, induction and mentoring of beginning teachers, and continuous
99.18professional development for career teachers.
99.19    By January 15 of each year, the partnership shall submit a report to the governor
99.20and to the chairs and ranking minority members of the legislative committees and
99.21divisions with jurisdiction over P-20 education policy and finance that summarizes the
99.22partnership's progress in meeting its goals and identifies the need for any draft legislation
99.23when necessary to further the goals of the partnership to maximize student achievement
99.24while promoting efficient use of resources.
99.25    Subd. 3. Expiration. Notwithstanding section 15.059, subdivision 5, the partnership
99.26is permanent and does not expire.

99.27    Sec. 59. Minnesota Statutes 2008, section 471.975, is amended to read:
99.28471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
99.29(a) Except as provided in paragraph (b), a statutory or home rule charter city, county,
99.30town, or other political subdivision may pay to each eligible member of the National
99.31Guard or other reserve component of the armed forces of the United States an amount
99.32equal to the difference between the member's basic base active duty military salary and the
99.33salary the member would be paid as an active political subdivision employee, including
99.34any adjustments the member would have received if not on leave of absence. This
99.35payment may be made only to a person whose basic base active duty military salary is less
100.1than the salary the person would be paid as an active political subdivision employee. Back
100.2pay authorized by this section may be paid in a lump sum. Payment under this section
100.3must not extend beyond four years from the date the employee reported for active service,
100.4plus any additional time the employee may be legally required to serve.
100.5(b) Subject to the limits under paragraph (g), each school district shall pay to each
100.6eligible member of the National Guard or other reserve component of the armed forces of
100.7the United States an amount equal to the difference between the member's basic base active
100.8duty military salary and the salary the member would be paid as an active school district
100.9employee, including any adjustments the member would have received if not on leave of
100.10absence. The pay differential must be based on a comparison between the member's daily
100.11base rate of active duty pay, calculated by dividing the member's base military monthly
100.12salary by the number of paid days in the month, and the member's daily rate of pay for the
100.13member's school district salary, calculated by dividing the member's total school district
100.14salary by the number of contract days. The member's salary as a school district employee
100.15must include the member's basic salary and any additional salary the member earns from
100.16the school district for cocurricular and extracurricular activities. The differential payment
100.17under this paragraph must be the difference between the daily base rates of military pay
100.18times the number of school district contract days the member misses because of military
100.19active duty. This payment may be made only to a person whose basic active duty military
100.20salary daily base rate of active duty pay is less than the salary the person would be paid
100.21person's daily rate of pay as an active school district employee. Payments may be made at
100.22the intervals at which the member received pay as a school district employee. Payment
100.23under this section must not extend beyond four years from the date the employee reported
100.24for active service, plus any additional time the employee may be legally required to serve.
100.25(c) An eligible member of the reserve components of the armed forces of the United
100.26States is a reservist or National Guard member who was an employee of a political
100.27subdivision at the time the member reported for active service on or after May 29, 2003,
100.28or who is on active service on May 29, 2003.
100.29(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a
100.30statutory or home rule charter city, county, town, or other political subdivision has total
100.31discretion regarding employee benefit continuation for a member who reports for active
100.32service and the terms and conditions of any benefit.
100.33(e) A school district must continue the employee's enrollment in health and dental
100.34coverage, and the employer contribution toward that coverage, until the employee is
100.35covered by health and dental coverage provided by the armed forces. If the employee had
100.36elected dependent coverage for health or dental coverage as of the time that the employee
101.1reported for active service, a school district must offer the employee the option to continue
101.2the dependent coverage at the employee's own expense. A school district must permit
101.3the employee to continue participating in any pretax account in which the employee
101.4participated when the employee reported for active service, to the extent of employee pay
101.5available for that purpose.
101.6(f) For purposes of this section, "active service" has the meaning given in section
101.7190.05, subdivision 5 , but excludes service performed exclusively for purposes of:
101.8(1) basic combat training, advanced individual training, annual training, and periodic
101.9inactive duty training;
101.10(2) special training periodically made available to reserve members; and
101.11(3) service performed in accordance with section 190.08, subdivision 3.
101.12(g) A school district making payments under paragraph (b) shall place a sum equal
101.13to any difference between the amount of salary that would have been paid to the employee
101.14who is receiving the payments and the amount of salary being paid to substitutes for
101.15that employee into a special fund that must be used to pay or partially pay the deployed
101.16employee's payments under paragraph (b). A school district is required to pay only this
101.17amount to the deployed school district employee.
101.18EFFECTIVE DATE.This section is effective the day following final enactment
101.19and applies to members of the National Guard and other reserve components of the United
101.20States armed forces serving in active military service on or after that date.

101.21    Sec. 60. IMPLEMENTING RIGOROUS COURSEWORK MEASURES
101.22RELATED TO STUDENT PERFORMANCE.
101.23    To implement the requirements of Minnesota Statutes, section 120B.35, subdivision
101.243, paragraph (c), clauses (1) and (2), and to help parents and members of the public better
101.25understand the reported data, the commissioner of education must convene a group
101.26of recognized and qualified experts and interested stakeholders, including parents and
101.27teachers among other stakeholders, to develop a model projecting anticipated performance
101.28of each high school on preparation and rigorous coursework measures that compares the
101.29school with similar schools. The model must use information about entering high school
101.30students based on particular background characteristics that are predictive of differing
101.31rates of college readiness. These characteristics include grade 8 achievement levels, high
101.32school student mobility, high school student attendance, and the size of each entering ninth
101.33grade class. The group of experts and stakeholders may examine other characteristics not
101.34part of the prediction model including the nine student categories identified under the
101.35federal 2001 No Child Left Behind Act, and two student gender categories of male and
102.1female, respectively. The commissioner annually must use the predicted level of entering
102.2students' performance to provide a context for interpreting graduating students' actual
102.3performance. The group convened under this section expires June 30, 2011.
102.4EFFECTIVE DATE.This section is effective the day following final enactment
102.5and applies to school report cards beginning July 1, 2011.

102.6    Sec. 61. IMPLEMENTING MEASURES FOR ASSESSING SCHOOL SAFETY
102.7AND STUDENTS' ENGAGEMENT AND CONNECTION AT SCHOOL .
102.8    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
102.9subdivision 3, paragraph (d), the commissioner of education, in consultation with
102.10interested stakeholders, including parents and teachers among other stakeholders,
102.11must convene a group of recognized and qualified experts on student engagement and
102.12connection and classroom teachers currently teaching in Minnesota schools to:
102.13    (1) identify highly reliable variables of student engagement and connection that
102.14may include student attendance, home support for learning, and student participation in
102.15out-of-school activities, among other variables; and
102.16    (2) determine how to report "safety" in order to comply with federal law.
102.17    (b) The commissioner must submit a written report and all the group's working
102.18papers to the education committees of the house of representatives and senate by February
102.1915, 2010, presenting the group's responses to paragraph (a), clauses (1) and (2). The
102.20commissioner must submit a second, related report to the education committees of the
102.21legislature by February 15, 2013, indicating the content and analysis of and the format for
102.22reporting any data collected under Minnesota Statutes, section 120B.35, subdivision 3,
102.23paragraph (d). The group convened under this section expires December 31, 2013.
102.24EFFECTIVE DATE.This section is effective the day following final enactment
102.25and applies to school report cards beginning July 1, 2014.

102.26    Sec. 62. HIGH SCHOOL ASSESSMENT SYSTEM; RECOMMENDATIONS.
102.27A college and career-readiness workgroup on a comprehensive high school
102.28assessment and accountability system that aligns to college and career readiness headed
102.29jointly by the Minnesota Department of Education and the University of Minnesota must
102.30evaluate and make recommendations on:
102.31(1) the design of Minnesota's high school assessment system for ensuring that
102.32students are college and career ready upon graduation from high school;
103.1(2) the levels of accountability that will be incorporated into this assessment system
103.2for the state, district, school, and student;
103.3(3) the statewide mechanism for accountability at these various levels. The
103.4accountability system must be consistent and coherent enough to ensure that all students
103.5are moving toward college and career readiness, but also flexible enough to recognize the
103.6varied needs of different students;
103.7(4) a plan for Minnesota postsecondary institutions to evaluate these assessments
103.8for possible use in admissions, placement, and scholarship opportunities as the system is
103.9implemented; and
103.10(5) the implementation timeline that will ensure that this college and career-ready
103.11anchor assessment system is put in place in Minnesota.
103.12This workgroup must report its recommendations to the commissioner of education
103.13by December 31, 2009. The commissioner must provide this report and any related
103.14commentary on these findings to the legislative committees having jurisdiction over E-12
103.15and higher education by February 15, 2010.

103.16    Sec. 63. LEGISLATIVE REPORT ON DISTRICTS' USE OF AND NEED FOR
103.17INTEGRATION REVENUE.
103.18The commissioner must analyze the substance of school district integration plans
103.19under Minnesota Statutes, section 124D.86, subdivision 1b, to identify the elements of
103.20and trends in district strategies and programs, the amount of success districts achieved
103.21in realizing the specific goals contained in their plans, and the estimated funds districts
103.22need to fully implement those plans. The commissioner must include in the analysis the
103.23impact of demographic changes experienced at school sites and school districts involving
103.24students of color, students with limited English proficiency, and students who are homeless
103.25or highly mobile, as well as changes in immigration patterns and housing patterns
103.26experienced by schools and districts, and the availability of and districts' participation in
103.27interdistrict integration opportunities. The commissioner must submit a report on the
103.28substance of the analysis and any resulting recommendations to the K-12 education policy
103.29and finance committees of the legislature by February 1, 2011.
103.30EFFECTIVE DATE.This section is effective the day following final enactment.

103.31    Sec. 64. RESERVED REVENUE FOR STAFF DEVELOPMENT; TEMPORARY
103.32SUSPENSION.
103.33Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal years
103.342010 and 2011 only, a school district or charter school may use revenue reserved for staff
104.1development under Minnesota Statutes, section 122A.61, subdivision 1, according to the
104.2requirements of general education revenue under Minnesota Statutes, section 126C.13,
104.3subdivision 5.
104.4EFFECTIVE DATE.This section is effective July 1, 2009.

104.5    Sec. 65. INNOVATIVE SCHOOL ADVISORY COUNCIL.
104.6(a) A nine-member Innovative School Advisory Council is established. Council
104.7members serve a three-year term and shall include individuals experienced with innovation
104.8in school districts and charter schools. At least one member must be experienced with
104.9innovation in noneducation sectors. The commissioner shall appoint the council members
104.10by August 1, 2009, and shall consider geographic balance when making the appointments.
104.11(b) The advisory council shall advise and make recommendations to the
104.12commissioner on such matters as:
104.13(1) disseminating information on site-governed schools under Minnesota Statutes,
104.14chapters 123B and 124D;
104.15(2) supporting innovation that includes new models of schools, accountability, and
104.16funding designed to sustain innovation in charter schools and school districts;
104.17(3) identifying ways to improve communication, cooperation, and the exchange of
104.18ideas between and among school sites, charter schools, and school districts regarding how
104.19to use current law to foster innovative new schools; and
104.20(4) identifying ways for schools to learn from innovators in noneducation sectors.
104.21(c) Council members are not subject to Minnesota Statutes, section 15.059. The
104.22commissioner may not reimburse council members for council activities.
104.23(d) The advisory council shall recommend to the commissioner and the legislature,
104.24by December 1, 2009, an organizational model for planning the development, start-up,
104.25and operation of new, innovative schools for both school districts and charter schools.
104.26The council, as part of its recommendation, may suggest legislation to implement this
104.27organizational model, including how to capture nonstate and nonpublic funds for planning
104.28new, innovative schools.
104.29(e) The Innovative School Advisory Council under this section expires June 30, 2011.

104.30    Sec. 66. ASSESSMENT OF READING INSTRUCTION.
104.31    (a) By February 1, 2012, the Board of Teaching shall administer the assessment of
104.32reading instruction portion of the examination of licensure-specific teaching skills for all
104.33candidates for initial licenses to teach prekindergarten or elementary students, consistent
104.34with Minnesota Statutes, section 122A.09, subdivision 4, paragraph (e).
105.1    (b) The Board of Teaching shall report to the legislative committees with jurisdiction
105.2over prekindergarten through grade 12 education policy by March 15, 2011, on the
105.3assessment of reading instruction portion of the examination of licensure-specific teaching
105.4skills under paragraph (a).
105.5EFFECTIVE DATE.This section is effective the day following final enactment
105.6and applies to teacher candidates beginning February 1, 2012.

105.7    Sec. 67. APPROPRIATIONS.
105.8    Subdivision 1. Department of Education. The sums indicated in this section are
105.9appropriated from the general fund to the Department of Education for the fiscal years
105.10designated.
105.11    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
105.12Statutes, section 124D.11, subdivision 4:
105.13
$
40,453,000
.....
2010
105.14
$
44,775,000
.....
2011
105.15The 2010 appropriation includes $3,704,000 for 2009 and $36,749,000 for 2010.
105.16The 2011 appropriation includes $4,083,000 for 2010 and $40,692,000 for 2011.
105.17    Subd. 3. Charter school startup aid. For charter school startup cost aid under
105.18Minnesota Statutes, section 124D.11:
105.19
$
1,488,000
.....
2010
105.20
$
1,064,000
.....
2011
105.21The 2010 appropriation includes $202,000 for 2009 and $1,286,000 for 2010.
105.22The 2011 appropriation includes $142,000 for 2010 and $922,000 for 2011.
105.23    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
105.24124D.86, subdivision 5:
105.25
$
65,358,000
.....
2010
105.26
$
65,484,000
.....
2011
105.27The 2010 appropriation includes $6,110,000 for 2009 and $59,248,000 for 2010.
105.28The 2011 appropriation includes $6,583,000 for 2010 and $58,901,000 for 2011.
105.29    Subd. 5. Magnet school grants. For magnet school and program grants under
105.30Minnesota Statutes section 124D.88:
105.31
$
750,000
.....
2010
105.32
$
750,000
.....
2011
106.1    Subd. 6. Interdistrict desegregation or integration transportation grants. For
106.2interdistrict desegregation or integration transportation grants under Minnesota Statutes,
106.3section 124D.87:
106.4
$
14,468,000
.....
2010
106.5
$
17,582,000
.....
2011
106.6    Subd. 7. Success for the future. For American Indian success for the future grants
106.7under Minnesota Statutes, section 124D.81:
106.8
$
2,137,000
.....
2010
106.9
$
2,137,000
.....
2011
106.10The 2010 appropriation includes $213,000 for 2009 and $1,924,000 for 2010.
106.11The 2011 appropriation includes $213,000 for 2010 and $1,924,000 for 2011.
106.12    Subd. 8. American Indian teacher preparation grants. For joint grants to assist
106.13American Indian people to become teachers under Minnesota Statutes, section 122A.63:
106.14
$
190,000
.....
2010
106.15
$
190,000
.....
2011
106.16    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
106.17Statutes, section 124D.83:
106.18
$
2,030,000
.....
2010
106.19
$
2,211,000
.....
2011
106.20The 2010 appropriation includes $191,000 for 2009 and $1,839,000 for 2010.
106.21The 2011 appropriation includes $204,000 for 2010 and $2,007,000 for 2011.
106.22    Subd. 10. Early childhood programs at tribal schools. For early childhood
106.23family education programs at tribal contract schools under Minnesota Statutes, section
106.24124D.83, subdivision 4:
106.25
$
68,000
.....
2010
106.26
$
68,000
.....
2011
106.27    Subd. 11. Statewide testing and reporting system. For the statewide testing and
106.28reporting system under Minnesota Statutes, section 120B.30:
106.29
$
15,150,000
.....
2010
106.30
$
15,150,000
.....
2011
106.31None of the amounts appropriated under this subdivision shall be used for contract
106.32costs associated with hand-scoring of constructed-response items of the Minnesota
106.33Comprehensive Assessment-Series II in reading, science, and mathematics, with the
107.1exception of mathematics grades 3 to 8 of the 2009-2010 school year. Any balance in
107.2the first year does not cancel but is available in the second year. Any amount generated
107.3as a result of the savings from foregoing hand-scoring shall be, to the extent possible,
107.4redirected into the development of computerized statewide testing.
107.5    Subd. 12. Examination fees; teacher training and support programs. (a) For
107.6students' advanced placement and international baccalaureate examination fees under
107.7Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
107.8for teachers and other interested educators under Minnesota Statutes, section 120B.13,
107.9subdivision 1:
107.10
$
4,500,000
.....
2010
107.11
$
4,500,000
.....
2011
107.12(b) The advanced placement program shall receive 75 percent of the appropriation
107.13each year and the international baccalaureate program shall receive 25 percent of the
107.14appropriation each year. The department, in consultation with representatives of the
107.15advanced placement and international baccalaureate programs selected by the Advanced
107.16Placement Advisory Council and IBMN, respectively, shall determine the amounts of
107.17the expenditures each year for examination fees and training and support programs for
107.18each program.
107.19(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
107.20$500,000 each year is for teachers to attend subject matter summer training programs
107.21and follow-up support workshops approved by the advanced placement or international
107.22baccalaureate programs. The commissioner shall determine the payment process and
107.23the amount of the subsidy.
107.24(d) The commissioner shall pay all examination fees for all students of low-income
107.25families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
107.26of available appropriations shall also pay examination fees for students sitting for an
107.27advanced placement examination, international baccalaureate examination, or both.
107.28Any balance in the first year does not cancel but is available in the second year.
107.29    Subd. 13. Concurrent enrollment programs. For concurrent enrollment programs
107.30under Minnesota Statutes, section 124D.091:
107.31
$
2,000,000
.....
2010
107.32
$
2,000,000
.....
2011
107.33If the appropriation is insufficient, the commissioner must proportionately reduce
107.34the aid payment to each district.
107.35Any balance in the first year does not cancel but is available in the second year.
108.1    Subd. 14. Collaborative urban educator. For the collaborative urban educator
108.2grant program:
108.3
$
528,000
.....
2010
108.4
$
528,000
.....
2011
108.5Any balance in the first year does not cancel but is available in the second year.
108.6    Subd. 15. Youth works program. For funding youth works programs under
108.7Minnesota Statutes, sections 124D.37 to 124D.45:
108.8
$
900,000
.....
2010
108.9
$
900,000
.....
2011
108.10A grantee organization may provide health and child care coverage to the dependents
108.11of each participant enrolled in a full-time youth works program to the extent such coverage
108.12is not otherwise available.
108.13    Subd. 16. Student organizations. For student organizations:
108.14
$
725,000
.....
2010
108.15
$
725,000
.....
2011
108.16$40,000 each year is for student organizations serving health occupations.
108.17$38,000 each year is for student organizations serving service occupations.
108.18$88,000 each year is for student organizations serving trade and industry occupations.
108.19$84,000 each year is for student organizations serving business occupations.
108.20$131,000 each year is for student organizations serving agriculture occupations.
108.21$125,000 each year is for student organizations serving family and consumer science
108.22occupations.
108.23$95,000 each year is for student organizations serving marketing occupations.
108.24Any balance in the first year does not cancel but is available in the second year.
108.25    Subd. 17. Education Planning and Assessment System (EPAS) program. For
108.26the Educational Planning and Assessment System (EPAS) program under Minnesota
108.27Statutes, section 120B.128:
108.28
$
829,000
.....
2010
108.29
$
829,000
.....
2011
108.30Any balance in the first year does not cancel but is available in the second year.
108.31    Subd. 18. Early childhood literacy programs. For early childhood literacy
108.32programs under Minnesota Statutes, section 119A.50, subdivision 3:
109.1
$
1,375,000
.....
2010
109.2
$
1,375,000
.....
2011
109.3Up to $1,375,000 each year is for leveraging federal and private funding to support
109.4AmeriCorps members serving in the Minnesota Reading Corps program established by
109.5Serve Minnesota, including costs associated with the training and teaching of early literacy
109.6skills to children age three to grade 3 and the evaluation of the impact of the program
109.7under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
109.8Any balance in the first year does not cancel but is available in the second year.
109.9    Subd. 19. Math and science teacher centers. For math and science teacher centers
109.10under Minnesota Statutes, section 122A.72:
109.11
$
750,000
.....
2010
109.12Any balance in the first year does not cancel but is available in the second year.
109.13This is a onetime appropriation.

109.14    Sec. 68. REPEALER.
109.15Minnesota Statutes 2008, sections 120B.362; 120B.39; 122A.32; 122A.628; and
109.16122A.75, are repealed.

109.17ARTICLE 3
109.18SPECIAL PROGRAMS

109.19    Section 1. Minnesota Statutes 2008, section 121A.41, subdivision 7, is amended to
109.20read:
109.21    Subd. 7. Pupil. (a) "Pupil" means any student:
109.22(1) without a disability under 21 years of age; or
109.23(2) with a disability until September 1 after the child with a disability becomes 22
109.24years of age under 21 years old who has not received a regular high school diploma or
109.25for a child with a disability who becomes 21 years old during the school year but has not
109.26received a regular high school diploma, until the end of that school year; and
109.27(3) and who remains eligible to attend a public elementary or secondary school.
109.28(b) A "student with a disability" or a "pupil with a disability" has the same meaning
109.29as a "child with a disability" under section 125A.02.

109.30    Sec. 2. Minnesota Statutes 2008, section 121A.41, subdivision 10, is amended to read:
109.31    Subd. 10. Suspension. "Suspension" means an action by the school administration,
109.32under rules promulgated by the school board, prohibiting a pupil from attending school
110.1for a period of no more than ten school days. If a suspension is longer than five days,
110.2the suspending administrator must provide the superintendent with a reason for the
110.3longer suspension. This definition does not apply to dismissal from school for one school
110.4day or less, except as provided in federal law for a student with a disability. Each
110.5suspension action may include a readmission plan. The readmission plan shall include,
110.6where appropriate, a provision for implementing alternative educational services upon
110.7readmission and may not be used to extend the current suspension. Consistent with section
110.8125A.091, subdivision 5 , the readmission plan must not obligate a parent to provide a
110.9sympathomimetic medication for the parent's child as a condition of readmission. The
110.10school administration may not impose consecutive suspensions against the same pupil
110.11for the same course of conduct, or incident of misconduct, except where the pupil will
110.12create an immediate and substantial danger to self or to surrounding persons or property,
110.13or where the district is in the process of initiating an expulsion, in which case the school
110.14administration may extend the suspension to a total of 15 school days. In the case
110.15of a student with a disability, the student's individual education plan team must meet
110.16immediately but not more than ten school days after the date on which the decision to
110.17remove the student from the student's current education placement is made. The individual
110.18education plan team and other qualified personnel shall at that meeting: conduct a review
110.19of the relationship between the child's disability and the behavior subject to disciplinary
110.20action; and determine the appropriateness of the child's education plan.
110.21The requirements of the individual education plan team meeting apply when:
110.22(1) the parent requests a meeting;
110.23(2) the student is removed from the student's current placement for five or more
110.24consecutive days; or
110.25(3) the student's total days of removal from the student's placement during the
110.26school year exceed ten cumulative days in a school year. The school administration shall
110.27implement alternative educational services when the suspension exceeds five days. A
110.28separate administrative conference is required for each period of suspension.

110.29    Sec. 3. Minnesota Statutes 2008, section 121A.43, is amended to read:
110.30121A.43 EXCLUSION AND EXPULSION OF PUPILS WITH A DISABILITY.
110.31(a) Consistent with federal law governing days of removal and section 121A.46,
110.32school personnel may suspend a child with a disability. When a child with a disability
110.33has been suspended for more than five consecutive school days or 10 cumulative school
110.34days in the same school year, and that suspension does not involve a recommendation for
110.35expulsion or exclusion or other change of placement under federal law, relevant members
111.1of the child's individualized education program team, including at least one of the child's
111.2teachers, shall meet and determine the extent to which the child needs services in order to
111.3continue to participate in the general education curriculum, although in another setting,
111.4and to progress toward meeting the goals in the child's individualized education program.
111.5That meeting must occur as soon as possible, but no more than 10 days after the sixth
111.6consecutive day of suspension or the tenth cumulative day of suspension has elapsed.
111.7(b) A dismissal for one school day or less is a day or a partial day of suspension if
111.8the child with a disability does not receive regular or special education instruction during
111.9that dismissal period. The notice requirements under section 121A.46 do not apply to a
111.10dismissal of one day or less.
111.11(c) A child with a disability shall be provided alternative educational services to the
111.12extent a suspension exceeds five consecutive school days.
111.13(d) Before initiating an expulsion or exclusion under sections 121A.40 to 121A.56,
111.14the district, relevant members of the child's individualized education program team,
111.15and the child's parent shall, consistent with federal law, determine whether the child's
111.16behavior was caused by or had a direct and substantial relationship to the child's disability
111.17and whether the child's conduct was a direct result of a failure to implement the child's
111.18individualized education program. When a pupil child with a disability who has an
111.19individual individualized education plan program is excluded or expelled under sections
111.20121A.40 to 121A.56 for misbehavior that is not a manifestation of the pupil's child's
111.21disability, the district shall continue to provide special education and related services after
111.22a period of suspension, if suspension is imposed. The district shall initiate a review of
111.23the pupil's individual education plan and conduct a review of the relationship between
111.24the pupil's disability and the behavior subject to disciplinary action and determine
111.25the appropriateness of the pupil's education plan before commencing an expulsion or
111.26exclusion during the exclusion or expulsion.

111.27    Sec. 4. Minnesota Statutes 2008, section 122A.31, subdivision 4, is amended to read:
111.28    Subd. 4. Reimbursement. (a) For purposes of revenue under section 125A.78
111.29125A.76, the Department of Education must only reimburse school districts for the
111.30services of those interpreters/transliterators who satisfy the standards of competency
111.31under this section.
111.32(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services
111.33of interpreters with a nonrenewable provisional certificate, interpreters/transliterators
111.34employed to mentor the provisional certified interpreters, and persons for whom a
112.1time-limited extension has been granted under subdivision 1, paragraph (d), or subdivision
112.22, paragraph (c).

112.3    Sec. 5. Minnesota Statutes 2008, section 125A.02, is amended to read:
112.4125A.02 CHILD WITH A DISABILITY DEFINED.
112.5    Subdivision 1. Child with a disability. Every child who has "Child with a
112.6disability" means a child identified under federal and state special education law as
112.7having a hearing impairment, blindness, visual disability, speech or language impairment,
112.8physical disability, other health impairment, mental disability, emotional/behavioral
112.9disorder, specific learning disability, autism, traumatic brain injury, multiple disabilities,
112.10or deaf/blind deafblind disability and who needs special instruction and education and
112.11related services, as determined by the standards rules of the commissioner, is a child with
112.12a disability. A licensed physician, an advanced practice nurse, or a licensed psychologist
112.13is qualified to make a diagnosis and determination of attention deficit disorder or attention
112.14deficit hyperactivity disorder for purposes of identifying a child with a disability.
112.15    Subd. 1a. Children ages three through seven experiencing developmental
112.16delays. In addition, every child under age three, and at local district discretion from age
112.17three to age seven, who needs special instruction and services, as determined by the
112.18standards rules of the commissioner, because the child has a substantial delay or has
112.19an identifiable physical or mental condition known to hinder normal development is
112.20a child with a disability.
112.21    Subd. 2. Not a child with a disability. A child with a short-term or temporary
112.22physical or emotional illness or disability, as determined by the standards rules of the
112.23commissioner, is not a child with a disability.

112.24    Sec. 6. Minnesota Statutes 2008, section 125A.07, is amended to read:
112.25125A.07 RULES OF COMMISSIONER RULEMAKING.
112.26(a) As defined in Consistent with this paragraph section, the commissioner must
112.27shall adopt new rules and amend existing rules relative to qualifications of essential
112.28personnel, courses of study, methods of instruction, pupil eligibility, size of classes, rooms,
112.29equipment, supervision, parent consultation, and other necessary rules for instruction of
112.30children with a disability. These rules must provide standards and procedures appropriate
112.31for the implementation of and within the limitations of sections 125A.08 and 125A.091.
112.32These rules must also provide standards for the discipline, control, management, and
112.33protection of children with a disability. The commissioner must not adopt rules for pupils
112.34served primarily in the regular classroom establishing either case loads or the maximum
113.1number of pupils that may be assigned to special education teachers. The commissioner, in
113.2consultation with the Departments of Health and Human Services, must adopt permanent
113.3rules for instruction and services for children under age five and their families. These
113.4rules are binding on state and local education, health, and human services agencies. The
113.5commissioner must adopt rules to determine eligibility for special education services. The
113.6rules must include procedures and standards by which to grant variances for experimental
113.7eligibility criteria. The commissioner must, according to section 14.05, subdivision 4,
113.8notify a district applying for a variance from the rules within 45 calendar days of receiving
113.9the request whether the request for the variance has been granted or denied. If a request is
113.10denied, the commissioner must specify the program standards used to evaluate the request
113.11and the reasons for denying the request related to children with disabilities only under
113.12specific authority and consistent with the requirements of chapter 14 and paragraph (c).
113.13(b) As provided in this paragraph, the state's regulatory scheme should support
113.14schools by assuring that all state special education rules adopted by the commissioner
113.15result in one or more of the following outcomes:
113.16(1) increased time available to teachers and, where appropriate, to support staff
113.17including school nurses for educating students through direct and indirect instruction;
113.18(2) consistent and uniform access to effective education programs for students with
113.19disabilities throughout the state;
113.20(3) reduced inequalities and conflict, appropriate due process hearing procedures
113.21and reduced court actions related to the delivery of special education instruction and
113.22services for students with disabilities;
113.23(4) clear expectations for service providers and for students with disabilities;
113.24(5) increased accountability for all individuals and agencies that provide instruction
113.25and other services to students with disabilities;
113.26(6) greater focus for the state and local resources dedicated to educating students
113.27with disabilities; and
113.28(7) clearer standards for evaluating the effectiveness of education and support
113.29services for students with disabilities.
113.30(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule
113.31related to children with disabilities if such action is specifically required by federal law.

113.32    Sec. 7. Minnesota Statutes 2008, section 125A.08, is amended to read:
113.33125A.08 SCHOOL DISTRICT OBLIGATIONS INDIVIDUALIZED
113.34EDUCATION PROGRAMS.
114.1(a) At the beginning of each school year, each school district shall have in effect, for
114.2each child with a disability, an individualized education program.
114.3(b) As defined in this section, every district must ensure the following:
114.4(1) all students with disabilities are provided the special instruction and services
114.5which are appropriate to their needs. Where the individual education plan team has
114.6determined appropriate goals and objectives based on the student's needs, including the
114.7extent to which the student can be included in the least restrictive environment, and where
114.8there are essentially equivalent and effective instruction, related services, or assistive
114.9technology devices available to meet the student's needs, cost to the district may be among
114.10the factors considered by the team in choosing how to provide the appropriate services,
114.11instruction, or devices that are to be made part of the student's individual education plan.
114.12The individual education plan team shall consider and may authorize services covered
114.13by medical assistance according to section 256B.0625, subdivision 26. The student's
114.14needs and the special education instruction and services to be provided must be agreed
114.15upon through the development of an individual education plan. The plan must address
114.16the student's need to develop skills to live and work as independently as possible within
114.17the community. The individual education plan team must consider positive behavioral
114.18interventions, strategies, and supports that address behavior for children with attention
114.19deficit disorder or attention deficit hyperactivity disorder. By During grade 9 or age 14,
114.20the plan must address the student's needs for transition from secondary services to
114.21postsecondary education and training, employment, community participation, recreation,
114.22and leisure and home living. In developing the plan, districts must inform parents of the
114.23full range of transitional goals and related services that should be considered. The plan
114.24must include a statement of the needed transition services, including a statement of the
114.25interagency responsibilities or linkages or both before secondary services are concluded;
114.26(2) children with a disability under age five and their families are provided special
114.27instruction and services appropriate to the child's level of functioning and needs;
114.28(3) children with a disability and their parents or guardians are guaranteed procedural
114.29safeguards and the right to participate in decisions involving identification, assessment
114.30including assistive technology assessment, and educational placement of children with a
114.31disability;
114.32(4) eligibility and needs of children with a disability are determined by an initial
114.33assessment or reassessment, which may be completed using existing data under United
114.34States Code, title 20, section 33, et seq.;
114.35(5) to the maximum extent appropriate, children with a disability, including those
114.36in public or private institutions or other care facilities, are educated with children who
115.1are not disabled, and that special classes, separate schooling, or other removal of children
115.2with a disability from the regular educational environment occurs only when and to the
115.3extent that the nature or severity of the disability is such that education in regular classes
115.4with the use of supplementary services cannot be achieved satisfactorily;
115.5(6) in accordance with recognized professional standards, testing and evaluation
115.6materials, and procedures used for the purposes of classification and placement of children
115.7with a disability are selected and administered so as not to be racially or culturally
115.8discriminatory; and
115.9(7) the rights of the child are protected when the parents or guardians are not known
115.10or not available, or the child is a ward of the state.
115.11(b) (c) For paraprofessionals employed to work in programs for students with
115.12disabilities, the school board in each district shall ensure that:
115.13(1) before or immediately upon employment, each paraprofessional develops
115.14sufficient knowledge and skills in emergency procedures, building orientation, roles and
115.15responsibilities, confidentiality, vulnerability, and reportability, among other things, to
115.16begin meeting the needs of the students with whom the paraprofessional works;
115.17(2) annual training opportunities are available to enable the paraprofessional to
115.18continue to further develop the knowledge and skills that are specific to the students with
115.19whom the paraprofessional works, including understanding disabilities, following lesson
115.20plans, and implementing follow-up instructional procedures and activities; and
115.21(3) a districtwide process obligates each paraprofessional to work under the ongoing
115.22direction of a licensed teacher and, where appropriate and possible, the supervision of a
115.23school nurse.

115.24    Sec. 8. Minnesota Statutes 2008, section 125A.091, is amended to read:
115.25125A.091 ALTERNATIVE DISPUTE RESOLUTION AND DUE PROCESS
115.26HEARINGS.
115.27    Subdivision 1. District obligation. A school district must use the procedures in
115.28federal law and state law and rule to reach decisions about the identification, evaluation,
115.29educational placement, manifestation determination, interim alternative educational
115.30placement, or the provision of a free appropriate public education to a child with a
115.31disability.
115.32    Subd. 2. Prior written notice. A parent must receive prior written notice
115.33a reasonable time before the district proposes or refuses to initiate or change the
115.34identification, evaluation, educational placement, or the provision of a free appropriate
115.35public education to a child with a disability.
116.1    Subd. 3. Content of notice. The notice under subdivision 2 must:
116.2(1) describe the action the district proposes or refuses;
116.3(2) explain why the district proposes or refuses to take the action;
116.4(3) describe any other option the district considered and the reason why it rejected
116.5the option;
116.6(4) describe each evaluation procedure, test, record, or report the district used as a
116.7basis for the proposed or refused action;
116.8(5) describe any other factor affecting the proposal or refusal of the district to take
116.9the action;
116.10(6) state that the parent of a child with a disability is protected by procedural
116.11safeguards and, if this notice is not an initial referral for evaluation, how a parent can get a
116.12description of the procedural safeguards; and
116.13(7) identify where a parent can get help in understanding this law.
116.14    Subd. 3a. Additional requirements for prior written notice. In addition to federal
116.15law requirements, a prior written notice shall:
116.16(1) inform the parent that except for the initial placement of a child in special
116.17education, the school district will proceed with its proposal for the child's placement or
116.18for providing special education services unless the child's parent notifies the district of
116.19an objection within 14 days of when the district sends the prior written notice to the
116.20parent; and
116.21(2) state that a parent who objects to a proposal or refusal in the prior written notice
116.22may request a conciliation conference under subdivision 7 or another alternative dispute
116.23resolution procedure under subdivision 8 or 9.
116.24    Subd. 4. Understandable notice. (a) The written notice under subdivision 2 must
116.25be understandable to the general public and available in the parent's native language or by
116.26another communication form, unless it is clearly not feasible to do so.
116.27(b) If the parent's native language or other communication form is not written,
116.28the district must take steps to ensure that:
116.29(1) the notice is translated orally or by other means to the parent in the parent's
116.30native language or other communication form;
116.31(2) the parent understands the notice; and
116.32(3) written evidence indicates the requirements in subdivision 2 are met.
116.33    Subd. 5. Initial action; parent consent. (a) The district must not proceed with the
116.34initial evaluation of a child, the initial placement of a child in a special education program,
116.35or the initial provision of special education services for a child without the prior written
117.1consent of the child's parent. A district may not override the written refusal of a parent to
117.2consent to an initial evaluation or reevaluation.
117.3(b) A parent, after consulting with health care, education, or other professional
117.4providers, may agree or disagree to provide the parent's child with sympathomimetic
117.5medications unless section 144.344 applies.
117.6    Subd. 6. Dispute resolution processes; generally. Parties are encouraged to
117.7resolve disputes over the identification, evaluation, educational placement, manifestation
117.8determination, interim alternative educational placement, or the provision of a free
117.9appropriate public education to a child with a disability through conciliation, mediation,
117.10facilitated team meetings, or other alternative process. All dispute resolution options are
117.11voluntary on the part of the parent and must not be used to deny or delay the right to a
117.12due process hearing. All dispute resolution processes under this section are provided
117.13at no cost to the parent.
117.14    Subd. 7. Conciliation conference. A parent must have an opportunity to meet
117.15with appropriate district staff in at least one conciliation conference if the parent objects
117.16to any proposal of which the parent receives notice under subdivision 2 3a. If the parent
117.17refuses district efforts to conciliate the dispute, the conciliation requirement is satisfied.
117.18Following a conciliation conference A district must hold a conciliation conference within
117.19ten calendar days from the date the district receives a parent's objection to a proposal or
117.20refusal in the prior written notice. Except as provided in this section, all discussions held
117.21during a conciliation conference are confidential and are not admissible in a due process
117.22hearing. Within five school days after the final conciliation conference, the district must
117.23prepare and provide to the parent a conciliation conference memorandum that describes
117.24the district's final proposed offer of service. This memorandum is admissible in evidence
117.25in any subsequent proceeding.
117.26    Subd. 8. Voluntary dispute resolution options. In addition to offering at least
117.27one conciliation conference, a district must inform a parent of other dispute resolution
117.28processes, including at least mediation and facilitated team meetings. The fact that
117.29an alternative dispute resolution process was used is admissible in evidence at any
117.30subsequent proceeding. State-provided mediators and team meeting facilitators shall not
117.31be subpoenaed to testify at a due process hearing or civil action under federal special
117.32education law nor are any records of mediators or state-provided team meeting facilitators
117.33accessible to the parties.
117.34    Subd. 9. Mediation. Mediation is a dispute resolution process that involves a
117.35neutral party provided by the state to assist a parent and a district in resolving disputes
117.36over the identification, evaluation, educational placement, manifestation determination,
118.1interim alternative educational placement, or the provision of a free appropriate public
118.2education to a child with a disability. A mediation process is available as an informal
118.3alternative to a due process hearing but must not be used to deny or postpone the
118.4opportunity of a parent or district to obtain a due process hearing. Mediation is voluntary
118.5for all parties. All mediation discussions are confidential and inadmissible in evidence
118.6in any subsequent proceeding, unless the:
118.7(1) parties expressly agree otherwise;
118.8(2) evidence is otherwise available; or
118.9(3) evidence is offered to prove bias or prejudice of a witness.
118.10    Subd. 10. Mediated agreements. Mediated agreements are not admissible unless
118.11the parties agree otherwise or a party to the agreement believes the agreement is not being
118.12implemented, in which case the aggrieved party may enter the agreement into evidence at
118.13a due process hearing. The parties may request another mediation to resolve a dispute over
118.14implementing the mediated agreement. After a due process hearing is requested, a party
118.15may request mediation and the commissioner must provide a mediator who conducts a
118.16mediation session no later than the third business day after the mediation request is made
118.17to the commissioner. If the parties resolve all or a portion of the dispute, or agree to use
118.18another procedure to resolve the dispute, the mediator shall ensure that the resolution
118.19or agreement is in writing and signed by the parties and each party is given a copy of
118.20the document. The written resolution or agreement shall state that all discussions that
118.21occurred during mediation are confidential and may not be used as evidence in any hearing
118.22or civil proceeding. The resolution or agreement is legally binding upon the parties and is
118.23enforceable in the state or federal district court. A party may request another mediation to
118.24resolve a dispute over implementing the mediated agreement.
118.25    Subd. 11. Facilitated team meeting. A facilitated team meeting is an IEP, IFSP,
118.26or IIIP team meeting led by an impartial state-provided facilitator to promote effective
118.27communication and assist a team in developing an individualized education plan.
118.28    Subd. 12. Impartial due process hearing. (a) A parent or a district is entitled to
118.29an impartial due process hearing conducted by the state when a dispute arises over the
118.30identification, evaluation, educational placement, manifestation determination, interim
118.31alternative educational placement, or the provision of a free appropriate public education
118.32to a child with a disability. The hearing must be held in the district responsible for
118.33ensuring that a free appropriate public education is provided according to state and federal
118.34law. The proceedings must be recorded and preserved, at state expense, pending ultimate
118.35disposition of the action. The parent and the district shall receive, at state expense, a copy
119.1of the hearing transcript or recording and the hearing officer's findings of fact, conclusion
119.2of law, and decisions.
119.3(b) The due process hearing must be conducted according to the rules of the
119.4commissioner and federal law.
119.5    Subd. 13. Hearing officer qualifications. The commissioner must appoint an
119.6individual who is qualified under this subdivision to serve as a hearing officer. The
119.7commissioner shall maintain a list of qualified hearing officers. The list shall include a
119.8statement of the qualifications of each person listed. Upon receipt of a written request
119.9for a hearing, the commissioner shall appoint a hearing officer from the list. The hearing
119.10officer must:
119.11(1) be knowledgeable and impartial;
119.12(2) have no personal interest in or specific involvement with the student who is a
119.13party to the hearing;
119.14(3) not have been employed as an administrator by the district that is a party to
119.15the hearing;
119.16(4) not have been involved in selecting the district administrator who is a party
119.17to the hearing;
119.18(5) have no personal, economic, or professional interest in the outcome of the
119.19hearing other than properly administering federal and state laws, rules, and policies;
119.20(6) have no substantial involvement in developing state or local policies or
119.21procedures challenged in the hearing;
119.22(7) not be a current employee or board member of a Minnesota public school district,
119.23education district, intermediate unit or regional education agency, or the department if
119.24the department is the service provider; and
119.25(8) not be a current employee or board member of a disability advocacy organization
119.26or group.;
119.27(9) not otherwise be under contract with the department or the school district;
119.28(10) know and understand state and federal special education laws, rules, and
119.29regulations, and legal interpretations by federal and state courts; and
119.30(11) have the knowledge and ability to conduct hearings and render and write
119.31decisions according to appropriate, standard legal practice.
119.32    Subd. 14. Request for hearing. A request for a due process hearing must:
119.33(1) be in writing;
119.34(2) describe the nature of the dispute about providing special education services to
119.35the student including facts relating to the dispute; and
119.36(3) state, to the extent known, the relief sought.
120.1Any school district administrator receiving a request for a due process hearing
120.2must immediately forward the request to the commissioner. Within two business days of
120.3receiving a request for a due process hearing, the commissioner must appoint a hearing
120.4officer. The commissioner must not deny a request for hearing because the request
120.5is incomplete. A party may disqualify a hearing officer only by affirmatively showing
120.6prejudice or bias to the commissioner or to the chief administrative law judge if the hearing
120.7officer is an administrative law judge. If a party affirmatively shows prejudice against a
120.8hearing officer, the commissioner must assign another hearing officer to hear the matter. (a)
120.9A parent or a school district may file a written request for a due process hearing regarding
120.10a proposal or refusal to initiate or change that child's evaluation, individualized education
120.11program, or educational placement, or to provide a free appropriate public education.
120.12(b) The parent shall include in the hearing request the name of the child, the address
120.13of the child's residence, the name of the school the child attends, a description of the
120.14child's problem relating to the proposed or refused initiation or change, including facts
120.15relating to the problem, and a proposed resolution of the problem to the extent known
120.16and available to the parents at the time.
120.17(c) A parent or a school district may file a written request for a hearing under United
120.18States Code, title 20, section 1415, paragraph (k).
120.19(d) A parent or school district filing a request for a hearing under this subdivision
120.20must provide the request to the other party and a copy of the request to the department.
120.21Upon receiving a request for a hearing, the department shall give to the child's parent a
120.22copy of the procedural safeguards notice available to a parent under federal regulations.
120.23(e)(1) If the parent of a child with a disability files a written request for a hearing,
120.24and the school district has not previously sent a written notice to the parent under
120.25subdivision 3a, regarding the subject matter of the hearing request, the school district
120.26shall, within ten days of receiving the hearing request, send to the child's parent a written
120.27explanation of why the school district proposed or refused to take the action raised in the
120.28hearing request. The explanation must include a description of other options that the
120.29individualized education program team considered and the reason why those options were
120.30rejected; a description of each evaluation procedure, assessment, record, or report that the
120.31school district used as the basis for the proposed or refused action; and a description of the
120.32factors that are relevant to the school district's proposal or refusal. A response by a school
120.33district under this subdivision does not preclude the school district from asserting that the
120.34parent's request for a hearing is insufficient under clause (2) of this paragraph; and
120.35(2) a hearing may not occur until the party requesting the hearing files a request that
120.36meets the requirements of paragraph (b). The request under paragraph (b) is considered
121.1sufficient unless the party receiving the request notifies the hearing officer and the other
121.2party in writing within 15 days of receiving the request that the receiving party believes
121.3the request does not meet the requirements of paragraph (b). Within five days of receiving
121.4a notice under this subdivision, the hearing officer shall determine whether the request
121.5meets the requirements under paragraph (b) and notify the parties.
121.6(f) Except as provided in paragraph (e), clause (1), the party receiving a request for a
121.7hearing shall send to the party requesting the hearing a written response that addresses the
121.8issues raised in the hearing request within ten days of receiving the request.
121.9    Subd. 15. Prehearing conference. A prehearing conference must be held within
121.10five business days of the date the commissioner appoints the hearing officer. The hearing
121.11officer must initiate the prehearing conference which may be conducted in person, at a
121.12location within the district, or by telephone. The hearing officer must create a written
121.13verbatim record of the prehearing conference which is available to either party upon
121.14request. At the prehearing conference, the hearing officer must:
121.15(1) identify the questions that must be answered to resolve the dispute and eliminate
121.16claims and complaints that are without merit;
121.17(2) set a scheduling order for the hearing and additional prehearing activities;
121.18(3) determine if the hearing can be disposed of without an evidentiary hearing and, if
121.19so, establish the schedule and procedure for doing so; and
121.20(4) establish the management, control, and location of the hearing to ensure its fair,
121.21efficient, and effective disposition.
121.22    Subd. 16. Burden of proof. The burden of proof at a due process hearing is on the
121.23district to demonstrate, by a preponderance of the evidence, that it is complying with the
121.24law and offered or provided a free appropriate public education to the child in the least
121.25restrictive environment. If the district has not offered or provided a free appropriate public
121.26education in the least restrictive environment and the parent wants the district to pay for a
121.27private placement, the burden of proof is on the parent to demonstrate, by a preponderance
121.28of the evidence, that the private placement is appropriate party seeking relief.
121.29    Subd. 17. Admissible evidence. The hearing officer may admit all evidence
121.30that possesses probative value, including hearsay, if it is the type of evidence on which
121.31reasonable, prudent persons are accustomed to rely in conducting their serious affairs. The
121.32hearing officer must give effect to the rules of privilege recognized by law and exclude
121.33evidence that is incompetent, irrelevant, immaterial, or unduly repetitious.
121.34    Subd. 18. Hearing officer authority. (a) A hearing officer must limit an impartial
121.35due process hearing to the time sufficient for each party to present its case.
122.1(b) A hearing officer must establish and maintain control and manage the hearing.
122.2This authority includes, but is not limited to:
122.3(1) requiring attorneys representing parties at the hearing, after notice and an
122.4opportunity to be heard, to pay court reporting and hearing officer costs, or fines payable
122.5to the state, for failing to: (i) obey scheduling or prehearing orders, (ii) appear, (iii) be
122.6prepared, or (iv) participate in the hearing process in good faith;
122.7(2) administering oaths and affirmations;
122.8(3) issuing subpoenas;
122.9(4) determining the responsible and providing districts and joining those districts, if
122.10not already notified, in the proceedings;
122.11(5) making decisions involving identification, evaluation, educational placement,
122.12manifestation determination, interim alternative educational placement, or the provision of
122.13a free appropriate public education to a child with a disability; and
122.14(6) ordering an independent educational evaluation of a child at district expense; and
122.15(7) extending the hearing decision timeline if the hearing officer determines that
122.16good cause exists.
122.17(c) Good cause includes, but is not limited to, the time required for mediation or
122.18other settlement discussions, independent educational evaluation, complexity and volume
122.19of issues, or finding or changing counsel.
122.20    Subd. 19. Expedited due process hearings. Consistent with federal law, a parent
122.21has the right to or a school district may file a written request for an expedited due process
122.22hearing when there is a dispute over a manifestation determination or a proposed or actual
122.23placement in an interim alternative educational setting. A district has the right to an
122.24expedited due process hearing when proposing or seeking to maintain placement in an
122.25interim alternative educational setting. A hearing officer must hold an expedited due
122.26process hearing within 20 school days of the date the expedited due process request is
122.27filed and must issue a decision within ten calendar school days of after the request for a
122.28hearing. A hearing officer may extend by up to five additional calendar days the time for
122.29issuing a decision in an expedited due process hearing. All policies in this section apply
122.30to expedited due process hearings to the extent they do not conflict with federal law. A
122.31resolution meeting must occur within seven days of receiving the request for an expedited
122.32due process hearing unless the parent and the school district agree in writing either to
122.33waive the resolution meeting or use the mediation process. The expedited due process
122.34hearing may proceed unless the matter has been resolved to the satisfaction of both parties
122.35within 15 days of receiving the expedited due process hearing request.
123.1    Subd. 20. Hearing officer's decision; time period. (a) The hearing officer must
123.2issue a decision within 45 calendar days of the date on which the commissioner receives
123.3the request for a due process hearing ensure that not later than 45 days after the 30-day
123.4period or the adjusted time periods under federal regulations expire, the hearing officer
123.5reaches a final decision in the due process hearing and transmits a copy of the decision to
123.6each party. A hearing officer, at the request of either party, may grant specific extensions
123.7of time beyond the 45-day period under subdivision 18. The hearing officer must conduct
123.8the oral arguments in a hearing at a time and place that is reasonably convenient to the
123.9parents and child involved. A hearing officer is encouraged to accelerate the time line to
123.1030 days for a child under the age of three whose needs change rapidly and who requires
123.11quick resolution of a dispute. A hearing officer may not extend the time beyond the 45-day
123.12period unless requested by either party for good cause shown on the record. Extensions
123.13of time must not exceed a total of 30 calendar days unless both parties and the hearing
123.14officer agree or time is needed to complete an independent educational evaluation. Good
123.15cause includes, but is not limited to, the time required for mediation or other settlement
123.16discussions, independent educational evaluation, complexity and volume of issues, or
123.17finding or changing counsel.
123.18(b) The hearing officer's decision must: Once the hearing officer has issued a final
123.19decision, the hearing officer lacks authority to amend the decision except for clerical
123.20or mathematical errors.
123.21(c) Nothing in this subdivision precludes a hearing officer from ordering a school
123.22district to comply with federal procedural safeguards under the federal Individuals with
123.23Disabilities Education Act.
123.24(1) be in writing;
123.25(2) state the controlling and material facts upon which the decision is made in order
123.26to apprise the reader of the basis and reason for the decision; and
123.27(3) be based on local standards, state statute, the rules of the commissioner, and
123.28federal law.
123.29    Subd. 21. Compensatory educational services. The hearing officer may require
123.30the resident or responsible district to provide compensatory educational services to the
123.31child if the hearing officer finds that the district has not offered or made available to
123.32the child a free appropriate public education in the least restrictive environment and the
123.33child suffered a loss of educational benefit. Such services take the form of direct and
123.34indirect special education and related services designed to address any loss of educational
123.35benefit that may have occurred. The hearing officer's finding must be based on a present
123.36determination of whether the child has suffered a loss of educational benefit.
124.1    Subd. 22. Child's educational placement during due process hearing. (a) Until a
124.2due process hearing under this section is completed or the district and the parent agree
124.3otherwise, the child must remain in the child's current educational placement and must
124.4not be denied initial admission to school.
124.5(b) Until an expedited due process hearing challenging an interim alternative
124.6educational placement is completed, the child must remain in the interim alternative
124.7educational setting until the decision of the hearing officer or the expiration of the 45 days
124.8permitted for an interim alternative educational setting, whichever occurs first, unless the
124.9parent and district agree otherwise.
124.10    Subd. 23. Implementation of hearing officer order. (a) That portion of a hearing
124.11officer's decision granting relief requested by the parent must be implemented upon
124.12issuance.
124.13(b) Except as provided under paragraph (a) or the district and parent agree otherwise,
124.14following a hearing officer's decision granting relief requested by the district, the child
124.15must remain in the current educational placement until the time to request judicial review
124.16under subdivision 24 expires or, if judicial review is requested, at the time the Minnesota
124.17Court of Appeals or the federal district court issues its decision, whichever is later.
124.18    Subd. 24. Review of hearing officer decisions. The parent or district may seek
124.19review of the hearing officer's decision in the Minnesota Court of Appeals or in the federal
124.20district court, consistent with federal law. A party must appeal to the Minnesota Court
124.21of Appeals within 60 days of receiving the hearing officer's decision or must appeal to
124.22federal district court within 90 days of receiving the hearing officer's decision.
124.23    Subd. 25. Enforcement of orders. The commissioner must monitor final hearing
124.24officer decisions and ensure enforcement of hearing officer orders decisions.
124.25    Subd. 26. Hearing officer and person conducting alternative dispute resolution
124.26are state employees. A hearing officer or person conducting alternative dispute resolution
124.27under this section is an employee of the state under section 3.732 for purposes of section
124.283.736 only.
124.29    Subd. 27. Hearing officer training. A hearing officer must participate in training
124.30and follow procedures established offered by the commissioner.
124.31    Subd. 28. District liability. A district is not liable for harmless technical violations
124.32of this section or rules implementing this section federal or state laws, rules, or regulations
124.33governing special education if the school district can demonstrate on a case-by-case basis
124.34that the violations did not harm a student's educational progress or the parent's right to
124.35notice, participation, or due process. This subdivision is applicable to due process hearings
124.36and special education complaints filed with the department.

125.1    Sec. 9. [125A.094] RESTRICTIVE PROCEDURES FOR CHILDREN WITH
125.2DISABILITIES.
125.3The use of restrictive procedures for children with disabilities is governed by
125.4sections 125A.0941 and 125A.0942.
125.5EFFECTIVE DATE.This section is effective August 1, 2011.

125.6    Sec. 10. [125A.0941] DEFINITIONS.
125.7(a) The following terms have the meanings given them.
125.8(b) "Emergency" means a situation where immediate intervention is needed to protect
125.9a child or other individual from physical injury or to prevent serious property damage.
125.10(c) "Physical holding" means physical intervention intended to hold a child immobile
125.11or limit a child's movement and where body contact is the only source of physical restraint.
125.12The term physical holding does not mean physical contact that:
125.13(1) helps a child respond or complete a task;
125.14(2) assists a child without restricting the child's movement;
125.15(3) is needed to administer an authorized health-related service or procedure; or
125.16(4) is needed to physically escort a child when the child does not resist or the child's
125.17resistance is minimal.
125.18(d) "Positive behavioral interventions and supports" means interventions and
125.19strategies to improve the school environment and teach children the skills to behave
125.20appropriately.
125.21(e) "Restrictive procedures" means the use of physical holding or seclusion in an
125.22emergency.
125.23(f) "Seclusion" means confining a child alone in a room from which egress is barred.
125.24Removing a child from an activity to a location where the child cannot participate in or
125.25observe the activity is not seclusion.
125.26EFFECTIVE DATE.This section is effective August 1, 2011.

125.27    Sec. 11. [125A.0942] STANDARDS FOR RESTRICTIVE PROCEDURES.
125.28    Subdivision 1. Restrictive procedures plan. Schools that intend to use restrictive
125.29procedures shall maintain and make publicly accessible a restrictive procedures plan for
125.30children that includes at least the following:
125.31(1) the list of restrictive procedures the school intends to use;
125.32(2) how the school will monitor and review the use of restrictive procedures,
125.33including conducting post-use debriefings and convening an oversight committee; and
126.1(3) a written description and documentation of the training staff completed under
126.2subdivision 5.
126.3    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
126.4by a licensed special education teacher, school social worker, school psychologist,
126.5behavior analyst certified by the National Behavior Analyst Certification Board, a person
126.6with a master's degree in behavior analysis, other licensed education professional,
126.7paraprofessional under section 120B.363, or mental health professional under section
126.8245.4871, subdivision 27, who has completed the training program under subdivision 5.
126.9(b) A school shall make reasonable efforts to notify the parent on the same day a
126.10restrictive procedure is used on the child, or if the school is unable to provide same-day
126.11notice, notice is sent within two days by written or electronic means or as otherwise
126.12indicated by the child's parent under paragraph (d).
126.13(c) When restrictive procedures are used twice in 30 days or when a pattern emerges
126.14and restrictive procedures are not included in a child's individualized education program or
126.15behavior intervention plan, the district must hold a meeting of the individualized education
126.16plan team, conduct or review a functional behavioral analysis, review data, consider
126.17developing additional or revised positive behavioral interventions and supports, consider
126.18actions to reduce the use of restrictive procedures, and modify the individualized education
126.19plan or behavior intervention plan as appropriate. At the meeting, the team must review
126.20any known medical or psychological limitations that contraindicate the use of a restrictive
126.21procedure, consider whether to prohibit that restrictive procedure, and document any
126.22prohibition in the individualized education program or behavior intervention plan.
126.23(d) An individualized education plan team may plan for using restrictive procedures
126.24and may include these procedures in a child's individualized education program or
126.25behavior intervention plan; however, the restrictive procedures may be used only in
126.26response to behavior that constitutes an emergency, consistent with this section. The
126.27individualized education program or behavior intervention plan shall indicate how the
126.28parent wants to be notified when a restrictive procedure is used.
126.29    Subd. 3. Physical holding or seclusion. Physical holding or seclusion may be used
126.30only in an emergency. A school that uses physical holding or seclusion shall meet the
126.31following requirements:
126.32(1) the physical holding or seclusion must be the least intrusive intervention that
126.33effectively responds to the emergency;
126.34(2) physical holding or seclusion must end when the threat of harm ends and the
126.35staff determines that the child can safely return to the classroom or activity;
127.1(3) staff must directly observe the child while physical holding or seclusion is being
127.2used;
127.3(4) each time physical holding or seclusion is used, the staff person who implements
127.4or oversees the physical holding or seclusion shall document, as soon as possible after the
127.5incident concludes, the following information:
127.6(i) a description of the incident that led to the physical holding or seclusion;
127.7(ii) why a less restrictive measure failed or was determined by staff to be
127.8inappropriate or impractical;
127.9(iii) the time the physical holding or seclusion began and the time the child was
127.10released; and
127.11(iv) a brief record of the child's behavioral and physical status;
127.12(5) the room used for seclusion must:
127.13(i) be at least six feet by five feet;
127.14(ii) be well lit, well ventilated, adequately heated, and clean;
127.15(iii) have a window that allows staff to directly observe a child in seclusion;
127.16(iv) have tamperproof fixtures, electrical switches located immediately outside the
127.17door, and secure ceilings;
127.18(v) have doors that open out and are unlocked, locked with keyless locks that
127.19have immediate release mechanisms, or locked with locks that have immediate release
127.20mechanisms connected with a fire and emergency system; and
127.21(vi) not contain objects that a child may use to injure the child or others; and
127.22(6) before using a room for seclusion, a school must:
127.23(i) receive written notice from local authorities that the room and the locking
127.24mechanisms comply with applicable building, fire, and safety codes; and
127.25(ii) register the room with the commissioner, who may view that room.
127.26    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
127.27(1) engaging in conduct prohibited under section 121A.58;
127.28(2) requiring a child to assume and maintain a specified physical position, activity,
127.29or posture that induces physical pain;
127.30(3) totally or partially restricting a child's senses as punishment;
127.31(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
127.32substance, or spray as punishment;
127.33(5) denying or restricting a child's access to equipment and devices such as walkers,
127.34wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
127.35except when temporarily removing the equipment or device is needed to prevent injury
128.1to the child or others or serious damage to the equipment or device, in which case the
128.2equipment or device shall be returned to the child as soon as possible;
128.3(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
128.4physical abuse under section 626.556;
128.5(7) withholding regularly scheduled meals or water;
128.6(8) denying access to bathroom facilities; and
128.7(9) physical holding that restricts or impairs a child's ability to breathe.
128.8    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1,
128.9staff who use restrictive procedures shall complete training in the following skills and
128.10knowledge areas:
128.11(1) positive behavioral interventions;
128.12(2) communicative intent of behaviors;
128.13(3) relationship building;
128.14(4) alternatives to restrictive procedures, including techniques to identify events and
128.15environmental factors that may escalate behavior;
128.16(5) de-escalation methods;
128.17(6) standards for using restrictive procedures;
128.18(7) obtaining emergency medical assistance;
128.19(8) the physiological and psychological impact of physical holding and seclusion;
128.20(9) monitoring and responding to a child's physical signs of distress when physical
128.21holding is being used; and
128.22(10) recognizing the symptoms of and interventions that may cause positional
128.23asphyxia when physical holding is used.
128.24(b) The commissioner, after consulting with the commissioner of human services,
128.25must develop and maintain a list of training programs that satisfy the requirements of
128.26paragraph (a). The district shall maintain records of staff who have been trained and the
128.27organization or professional that conducted the training. The district may collaborate with
128.28children's community mental health providers to coordinate trainings.
128.29    Subd. 6. Behavior supports. School districts are encouraged to establish effective
128.30schoolwide systems of positive behavior interventions and supports. Nothing in this
128.31section or section 125A.0941 precludes the use of reasonable force under sections
128.32121A.582; 609.06, subdivision 1; and 609.379.
128.33EFFECTIVE DATE.This section is effective August 1, 2011.

129.1    Sec. 12. Minnesota Statutes 2008, section 125A.15, is amended to read:
129.2125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
129.3The responsibility for special instruction and services for a child with a disability
129.4temporarily placed in another district for care and treatment shall be determined in the
129.5following manner:
129.6(a) The district of residence of a child shall be the district in which the child's parent
129.7resides, if living, or the child's guardian, or the district designated by the commissioner if
129.8neither parent nor guardian is living within the state.
129.9(b) If a district other than the resident district places a pupil for care and treatment,
129.10the district placing the pupil must notify and give the resident district an opportunity to
129.11participate in the placement decision. When an immediate emergency placement of a
129.12pupil is necessary and time constraints foreclose a resident district from participating in
129.13the emergency placement decision, the district in which the pupil is temporarily placed
129.14must notify the resident district of the emergency placement within 15 days. The resident
129.15district has up to five business days after receiving notice of the emergency placement
129.16to request an opportunity to participate in the placement decision, which the placing
129.17district must then provide.
129.18(c) When a child is temporarily placed for care and treatment in a day program
129.19located in another district and the child continues to live within the district of residence
129.20during the care and treatment, the district of residence is responsible for providing
129.21transportation to and from the care and treatment facility program and an appropriate
129.22educational program for the child. The resident district may establish reasonable
129.23restrictions on transportation, except if a Minnesota court or agency orders the child
129.24placed at a day care and treatment program and the resident district receives a copy of
129.25the order, then the resident district must provide transportation to and from the program
129.26unless the court or agency orders otherwise. Transportation shall only be provided by the
129.27resident district during regular operating hours of the resident district. The resident district
129.28may provide the educational program at a school within the district of residence, at the
129.29child's residence, or in the district in which the day treatment center is located by paying
129.30tuition to that district.
129.31(c) (d) When a child is temporarily placed in a residential program for care and
129.32treatment, the nonresident district in which the child is placed is responsible for providing
129.33an appropriate educational program for the child and necessary transportation while the
129.34child is attending the educational program; and must bill the district of the child's residence
129.35for the actual cost of providing the program, as outlined in section 125A.11, except as
129.36provided in paragraph (d) (e). However, the board, lodging, and treatment costs incurred
130.1in behalf of a child with a disability placed outside of the school district of residence by
130.2the commissioner of human services or the commissioner of corrections or their agents,
130.3for reasons other than providing for the child's special educational needs must not become
130.4the responsibility of either the district providing the instruction or the district of the child's
130.5residence. For the purposes of this section, the state correctional facilities operated on a
130.6fee-for-service basis are considered to be residential programs for care and treatment.
130.7(d) (e) A privately owned and operated residential facility may enter into a contract
130.8to obtain appropriate educational programs for special education children and services
130.9with a joint powers entity. The entity with which the private facility contracts for special
130.10education services shall be the district responsible for providing students placed in that
130.11facility an appropriate educational program in place of the district in which the facility is
130.12located. If a privately owned and operated residential facility does not enter into a contract
130.13under this paragraph, then paragraph (c) (d) applies.
130.14(e) (f) The district of residence shall pay tuition and other program costs, not
130.15including transportation costs, to the district providing the instruction and services.
130.16The district of residence may claim general education aid for the child as provided by
130.17law. Transportation costs must be paid by the district responsible for providing the
130.18transportation and the state must pay transportation aid to that district.
130.19EFFECTIVE DATE.This section is effective the day following final enactment.

130.20    Sec. 13. Minnesota Statutes 2008, section 125A.28, is amended to read:
130.21125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
130.22An Interagency Coordinating Council of at least 17, but not more than 25 members
130.23is established, in compliance with Public Law 108-446, section 641. The members
130.24must be appointed by the governor. Council members must elect the council chair. The
130.25representative of the commissioner may not serve as the chair. The council must be
130.26composed of at least five parents, including persons of color, of children with disabilities
130.27under age 12, including at least three parents of a child with a disability under age seven,
130.28five representatives of public or private providers of services for children with disabilities
130.29under age five, including a special education director, county social service director,
130.30local Head Start director, and a community health services or public health nursing
130.31administrator, one member of the senate, one member of the house of representatives, one
130.32representative of teacher preparation programs in early childhood-special education or
130.33other preparation programs in early childhood intervention, at least one representative of
130.34advocacy organizations for children with disabilities under age five, one physician who
131.1cares for young children with special health care needs, one representative each from the
131.2commissioners of commerce, education, health, human services, a representative from the
131.3state agency responsible for child care, foster care, mental health, homeless coordinator
131.4of education of homeless children and youth, and a representative from Indian health
131.5services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council.
131.6The council must meet at least quarterly.
131.7The council must address methods of implementing the state policy of developing
131.8and implementing comprehensive, coordinated, multidisciplinary interagency programs of
131.9early intervention services for children with disabilities and their families.
131.10The duties of the council include recommending policies to ensure a comprehensive
131.11and coordinated system of all state and local agency services for children under age five
131.12with disabilities and their families. The policies must address how to incorporate each
131.13agency's services into a unified state and local system of multidisciplinary assessment
131.14practices, individual intervention plans, comprehensive systems to find children in need of
131.15services, methods to improve public awareness, and assistance in determining the role of
131.16interagency early intervention committees.
131.17On the date that Minnesota Part C Annual Performance Report is submitted to the
131.18federal Office of Special Education, the council must recommend to the governor and the
131.19commissioners of education, health, human services, commerce, and employment and
131.20economic development policies for a comprehensive and coordinated system.
131.21Notwithstanding any other law to the contrary, the State Interagency Coordinating
131.22Council expires on June 30, 2009 2014.

131.23    Sec. 14. Minnesota Statutes 2008, section 125A.51, is amended to read:
131.24125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
131.25EDUCATION AND TRANSPORTATION.
131.26The responsibility for providing instruction and transportation for a pupil without a
131.27disability who has a short-term or temporary physical or emotional illness or disability, as
131.28determined by the standards of the commissioner, and who is temporarily placed for care
131.29and treatment for that illness or disability, must be determined as provided in this section.
131.30(a) The school district of residence of the pupil is the district in which the pupil's
131.31parent or guardian resides.
131.32(b) When parental rights have been terminated by court order, the legal residence
131.33of a child placed in a residential or foster facility for care and treatment is the district in
131.34which the child resides.
132.1(c) Before the placement of a pupil for care and treatment, the district of residence
132.2must be notified and provided an opportunity to participate in the placement decision.
132.3When an immediate emergency placement is necessary and time does not permit
132.4resident district participation in the placement decision, the district in which the pupil is
132.5temporarily placed, if different from the district of residence, must notify the district
132.6of residence of the emergency placement within 15 days of the placement. When a
132.7nonresident district makes an emergency placement without first consulting with the
132.8resident district, the resident district has up to five business days after receiving notice
132.9of the emergency placement to request an opportunity to participate in the placement
132.10decision, which the placing district must then provide.
132.11(d) When a pupil without a disability is temporarily placed for care and treatment
132.12in a day program and the pupil continues to live within the district of residence during
132.13the care and treatment, the district of residence must provide instruction and necessary
132.14transportation to and from the care and treatment facility program for the pupil. The
132.15resident district may establish reasonable restrictions on transportation, except if a
132.16Minnesota court or agency orders the child placed at a day care and treatment program
132.17and the resident district receives a copy of the order, then the resident district must provide
132.18transportation to and from the program unless the court or agency orders otherwise.
132.19Transportation shall only be provided by the resident district during regular operating
132.20hours of the resident district. The resident district may provide the instruction at a school
132.21within the district of residence, at the pupil's residence, or in the case of a placement
132.22outside of the resident district, in the district in which the day treatment program is located
132.23by paying tuition to that district. The district of placement may contract with a facility to
132.24provide instruction by teachers licensed by the state Board of Teaching.
132.25(e) When a pupil without a disability is temporarily placed in a residential program
132.26for care and treatment, the district in which the pupil is placed must provide instruction
132.27for the pupil and necessary transportation while the pupil is receiving instruction, and in
132.28the case of a placement outside of the district of residence, the nonresident district must
132.29bill the district of residence for the actual cost of providing the instruction for the regular
132.30school year and for summer school, excluding transportation costs.
132.31(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
132.32private homeless shelter, then the district that enrolls the pupil under section 127A.47,
132.33subdivision 2
, shall provide the transportation, unless the district that enrolls the pupil
132.34and the district in which the pupil is temporarily placed agree that the district in which
132.35the pupil is temporarily placed shall provide transportation. When a pupil without a
132.36disability is temporarily placed in a residential program outside the district of residence,
133.1the administrator of the court placing the pupil must send timely written notice of the
133.2placement to the district of residence. The district of placement may contract with a
133.3residential facility to provide instruction by teachers licensed by the state Board of
133.4Teaching. For purposes of this section, the state correctional facilities operated on a
133.5fee-for-service basis are considered to be residential programs for care and treatment.
133.6(g) The district of residence must include the pupil in its residence count of pupil
133.7units and pay tuition as provided in section 123A.488 to the district providing the
133.8instruction. Transportation costs must be paid by the district providing the transportation
133.9and the state must pay transportation aid to that district. For purposes of computing state
133.10transportation aid, pupils governed by this subdivision must be included in the disabled
133.11transportation category if the pupils cannot be transported on a regular school bus route
133.12without special accommodations.
133.13EFFECTIVE DATE.This section is effective the day following final enactment.

133.14    Sec. 15. Minnesota Statutes 2008, section 125A.57, subdivision 2, is amended to read:
133.15    Subd. 2. Assistive technology device. "Assistive technology device" means any
133.16item, piece of equipment, software, or product system, whether acquired commercially
133.17off the shelf, modified, or customized, that is used to increase, maintain, or improve
133.18functional capabilities of children with disabilities a child with a disability. It does not
133.19mean a medical device that is surgically implanted or a replacement of such a device.
133.20EFFECTIVE DATE.This section is effective the day following final enactment.

133.21    Sec. 16. Minnesota Statutes 2008, section 125A.63, subdivision 2, is amended to read:
133.22    Subd. 2. Programs. The resource centers must offer summer institutes and like
133.23programs or other training programs throughout the state for deaf or hard of hearing
133.24hard-of-hearing, blind or visually impaired, and multiply disabled pupils. The resource
133.25centers must also offer workshops for teachers, and leadership development for teachers.
133.26A program offered through the resource centers must promote and develop education
133.27programs offered by school districts or other organizations. The program must assist
133.28school districts or other organizations to develop innovative programs.

133.29    Sec. 17. Minnesota Statutes 2008, section 125A.63, subdivision 4, is amended to read:
133.30    Subd. 4. Advisory committees. (a) The commissioner shall establish an
133.31advisory committee for each resource center. The advisory committees shall develop
134.1recommendations regarding the resource centers and submit an annual report to the
134.2commissioner on the form and in the manner prescribed by the commissioner.
134.3(b) The advisory committee for the Resource Center for the Deaf and Hard of
134.4Hearing shall meet periodically at least four times per year and submit an annual report
134.5to the commissioner, the education policy and finance committees of the legislature,
134.6and the Commission of Deaf, DeafBlind, and Hard of Hearing Minnesotans. The report
134.7must, at least:
134.8(1) identify and report the aggregate, data-based education outcomes for children
134.9with the primary disability classification of deaf and hard of hearing, consistent with
134.10the commissioner's child count reporting practices, the commissioner's state and local
134.11outcome data reporting system by district and region, and the school performance report
134.12cards under section 120B.36, subdivision 1; and
134.13(2) describe the implementation of a data-based plan for improving the education
134.14outcomes of deaf and hard of hearing children that is premised on evidence-based best
134.15practices, and provide a cost estimate for ongoing implementation of the plan.

134.16    Sec. 18. Minnesota Statutes 2008, section 125A.744, subdivision 3, is amended to read:
134.17    Subd. 3. Implementation. Consistent with section 256B.0625, subdivision 26,
134.18school districts may enroll as medical assistance providers or subcontractors and bill
134.19the Department of Human Services under the medical assistance fee for service claims
134.20processing system for special education services which are covered services under chapter
134.21256B, which are provided in the school setting for a medical assistance recipient, and for
134.22whom the district has secured informed consent consistent with section 13.05, subdivision
134.234
, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type
134.24of covered service. School districts shall be reimbursed by the commissioner of human
134.25services for the federal share of individual education plan health-related services that
134.26qualify for reimbursement by medical assistance, minus up to five percent retained by
134.27the commissioner of human services for administrative costs, not to exceed $350,000
134.28$450,000 per fiscal year. The commissioner may withhold up to five percent of each
134.29payment to a school district. Following the end of each fiscal year, the commissioner shall
134.30settle up with each school district in order to ensure that collections from each district
134.31for departmental administrative costs are made on a pro rata basis according to federal
134.32earnings for these services in each district. A school district is not eligible to enroll as
134.33a home care provider or a personal care provider organization for purposes of billing
134.34home care services under sections 256B.0651 and 256B.0653 to 256B.0656 until the
134.35commissioner of human services issues a bulletin instructing county public health nurses
135.1on how to assess for the needs of eligible recipients during school hours. To use private
135.2duty nursing services or personal care services at school, the recipient or responsible party
135.3must provide written authorization in the care plan identifying the chosen provider and the
135.4daily amount of services to be used at school.

135.5    Sec. 19. Minnesota Statutes 2008, section 125A.76, subdivision 1, is amended to read:
135.6    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
135.7subdivision apply.
135.8    (a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
135.9For the purposes of computing basic revenue pursuant to this section, each child with a
135.10disability shall be counted as prescribed in section 126C.05, subdivision 1.
135.11    (b) "Essential personnel" means teachers, cultural liaisons, related services, and
135.12support services staff providing direct services to students. Essential personnel may also
135.13include special education paraprofessionals or clericals providing support to teachers and
135.14students by preparing paperwork and making arrangements related to special education
135.15compliance requirements, including parent meetings and individual education plans.
135.16Essential personnel does not include administrators and supervisors.
135.17    (c) "Average daily membership" has the meaning given it in section 126C.05.
135.18    (d) "Program growth factor" means 1.046 for fiscal year 2012 and later.

135.19    Sec. 20. Minnesota Statutes 2008, section 127A.47, subdivision 5, is amended to read:
135.20    Subd. 5. Notification of resident district. A district educating a pupil who is
135.21a resident of another district must notify the district of residence within 60 days of the
135.22date the pupil is determined by the district to be a nonresident, but not later than August
135.231 following the end of the school year in which the pupil is educated. If the district of
135.24residence does not receive a notification from the providing district pursuant to this
135.25subdivision, it is not liable to that district for any tuition billing received after August 1
135.26of the next school year.

135.27    Sec. 21. APPROPRIATIONS.
135.28    Subdivision 1. Department of Education. The sums indicated in this section are
135.29appropriated from the general fund to the Department of Education for the fiscal years
135.30designated.
135.31    Subd. 2. Special education; regular. For special education aid under Minnesota
135.32Statutes, section 125A.75:
136.1
$
734,071,000
.....
2010
136.2
$
781,497,000
.....
2011
136.3The 2010 appropriation includes $71,947,000 for 2009 and $662,124,000 for 2010.
136.4The 2011 appropriation includes $73,569,000 for 2010 and $707,928,000 for 2011.
136.5    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
136.6section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
136.7within the district boundaries for whom no district of residence can be determined:
136.8
$
1,717,000
.....
2010
136.9
$
1,895,000
.....
2011
136.10If the appropriation for either year is insufficient, the appropriation for the other
136.11year is available.
136.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
136.13services under Minnesota Statutes, section 125A.75, subdivision 1:
136.14
$
258,000
.....
2010
136.15
$
282,000
.....
2011
136.16The 2010 appropriation includes $24,000 for 2009 and $234,000 for 2010.
136.17The 2011 appropriation includes $26,000 for 2010 and $256,000 for 2011.
136.18    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
136.19Statutes, section 125A.79, subdivision 7:
136.20
$
110,871,000
.....
2010
136.21
$
110,877,000
.....
2011
136.22The 2010 appropriation includes $37,046,000 for 2009 and $73,825,000 for 2010.
136.23The 2011 appropriation includes $37,022,000 for 2010 and $73,855,000 for 2011.
136.24    Subd. 6. Court-placed special education revenue. For reimbursing serving
136.25school districts for unreimbursed eligible expenditures attributable to children placed in
136.26the serving school district by court action under Minnesota Statutes, section 125A.79,
136.27subdivision 4:
136.28
$
76,000
.....
2010
136.29
$
78,000
.....
2011
136.30    Subd. 7. Special education out-of-state tuition. For special education out-of-state
136.31tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
136.32
$
250,000
.....
2010
136.33
$
250,000
.....
2011

137.1    Sec. 22. REPEALER.
137.2(a) Minnesota Statutes 2008, section 125A.05, is repealed.
137.3(b) Minnesota Rules, parts 3525.0210, subparts 34 and 43; 3525.0400; 3525.2445;
137.4and 3525.4220, are repealed.
137.5(c) Minnesota Statutes 2008, sections 121A.66; and 121A.67, subdivision 1, are
137.6repealed effective August 1, 2011.
137.7(d) Minnesota Rules, parts 3525.0210, subparts 5, 6, 9, 13, 17, 29, 30, 46, and 47;
137.83525.1100, subpart 2, item F; and 3525.2900, subpart 5, are repealed effective August 1,
137.92011.

137.10ARTICLE 4
137.11FACILITIES AND TECHNOLOGY

137.12    Section 1. Minnesota Statutes 2008, section 123B.54, is amended to read:
137.13123B.54 DEBT SERVICE APPROPRIATION.
137.14    (a) $14,814,000 in fiscal year 2008, $9,109,000 in fiscal year 2009, $7,286,000
137.15$7,948,000 in fiscal year 2010, and $6,878,000 $9,275,000 in fiscal year 2011, $9,574,000
137.16in fiscal year 2012, and $8,904,000 in fiscal year 2013 and later are appropriated from the
137.17general fund to the commissioner of education for payment of debt service equalization
137.18aid under section 123B.53.
137.19    (b) The appropriations in paragraph (a) must be reduced by the amount of any
137.20money specifically appropriated for the same purpose in any year from any state fund.

137.21    Sec. 2. Minnesota Statutes 2008, section 123B.57, subdivision 1, is amended to read:
137.22    Subdivision 1. Health and safety program. (a) To receive health and safety
137.23revenue for any fiscal year a district must submit to the commissioner an application for
137.24aid and levy by the date determined by the commissioner. The application may be for
137.25hazardous substance removal, fire and life safety code repairs, labor and industry regulated
137.26facility and equipment violations, and health, safety, and environmental management,
137.27including indoor air quality management. The application must include a health and safety
137.28program adopted by the school district board. The program must include the estimated
137.29cost, per building, of the program by fiscal year. Upon approval through the adoption of
137.30a resolution by each of an intermediate district's member school district boards and the
137.31approval of the Department of Education, a school district may include its proportionate
137.32share of the costs of health and safety projects for an intermediate district in its application.
137.33(b) Health and safety projects with an estimated cost of $500,000 or more per site,
137.34approved after February 1, 2003, are not eligible for health and safety revenue. Health
138.1and safety projects with an estimated cost of $500,000 or more per site, approved after
138.2February 1, 2003, that meet all other requirements for health and safety funding, are
138.3eligible for alternative facilities bonding and levy revenue according to section 123B.59.
138.4A school board shall not separate portions of a single project into components to qualify
138.5for health and safety revenue, and shall not combine unrelated projects into a single project
138.6to qualify for alternative facilities bonding and levy revenue.
138.7EFFECTIVE DATE.This section is effective July 1, 2009.

138.8    Sec. 3. Minnesota Statutes 2008, section 123B.59, subdivision 2, is amended to read:
138.9    Subd. 2. Facility plan. (a) A district qualifying under subdivision 1, paragraph
138.10(a), must have a ten-year facility plan approved by the commissioner that includes an
138.11inventory of projects and costs that would be eligible for:
138.12(1) health and safety revenue, without restriction as to project size;
138.13(2) disabled access levy; and
138.14(3) deferred capital expenditures and maintenance projects necessary to prevent
138.15further erosion of facilities.
138.16(b) A district qualifying under subdivision 1, paragraph (b), must have a five-year
138.17plan approved by the commissioner that includes an inventory of projects and costs for
138.18health and safety projects with an estimated cost of $500,000 or more per site that would
138.19qualify for health and safety revenue except for the project size limitation in section
138.20123B.57, subdivision 1 , paragraph (b).
138.21(c) The school district must:
138.22(1) annually update the plans;
138.23(2) biennially submit a facility maintenance plan; and
138.24(3) indicate whether the district will issue bonds to finance the plan or levy for
138.25the costs.
138.26EFFECTIVE DATE.This section is effective July 1, 2009.

138.27    Sec. 4. Minnesota Statutes 2008, section 123B.59, subdivision 3, is amended to read:
138.28    Subd. 3. Bond authorization. (a) A school district may issue general obligation
138.29bonds under this section to finance facilities plans approved by its board and the
138.30commissioner. Chapter 475, except sections 475.58 and 475.59, must be complied with.
138.31The district may levy under subdivision 5 for the debt service revenue. The authority to
138.32issue bonds under this section is in addition to any bonding authority authorized by this
138.33chapter, or other law. The amount of bonding authority authorized under this section must
139.1be disregarded in calculating the bonding or net debt limits of this chapter, or any other
139.2law other than section 475.53, subdivision 4.
139.3(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds,
139.4or the final certification of levies under subdivision 5, the district must publish notice
139.5of the intended projects, the amount of the bond issue, and the total amount of district
139.6indebtedness, and the commissioner's review and comment, if applicable.
139.7EFFECTIVE DATE.This section is effective July 1, 2009.

139.8    Sec. 5. Minnesota Statutes 2008, section 123B.59, subdivision 3a, is amended to read:
139.9    Subd. 3a. Levy authorization. (a) A school district may levy under this section to
139.10finance the portion of facilities plans approved by its board and the commissioner that are
139.11not financed through bond issues according to subdivision 3.
139.12(b) At least 20 days before a final district certification of levies under subdivision
139.135, the district must publish notice of the intended projects, including the total estimated
139.14project cost, and the commissioner's review and comment, if applicable.
139.15EFFECTIVE DATE.This section is effective July 1, 2009.

139.16    Sec. 6. Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read:
139.17    Subdivision 1. Commissioner approval. (a) In determining whether to give a
139.18school facility a positive, negative, or unfavorable review and comment, the commissioner
139.19must evaluate the proposals for facilities using the information provided under section
139.20123B.71, subdivision 9 .
139.21    (b) In the case of a proposal for a new school, the local school board retains the
139.22authority to determine the minimum acreage needed to accommodate the school and
139.23related facilities. The commissioner may evaluate the proposals but must not issue a
139.24negative or unfavorable review and comment under this section for a school facility solely
139.25based on too little acreage of the proposed school site.
139.26    (c) In the case of a proposal to renovate an existing school, the local school board
139.27retains the authority to determine whether to renovate an existing school or to build a new
139.28school regardless of the acreage of the current school site or the cost of the renovation
139.29relative to the cost of building a new school. The commissioner's evaluation of whether
139.30to replace a facility must not be solely based upon the ratio of renovation costs to
139.31replacement costs.
139.32EFFECTIVE DATE.This section is effective for review and comments issued
139.33after July 1, 2009.

140.1    Sec. 7. Minnesota Statutes 2008, section 123B.71, subdivision 1, is amended to read:
140.2    Subdivision 1. Consultation. A school district shall consult with the commissioner
140.3of education before developing any plans and specifications to construct, remodel, or
140.4improve the building or site of an educational facility for which the estimated cost
140.5exceeds $250,000 $500,000. This consultation shall occur before a referendum for bonds,
140.6solicitation for bids, or use of capital expenditure facilities revenue according to section
140.7126C.10, subdivision 14 , clause (2). The commissioner may require the district to
140.8participate in a management assistance plan before conducting a review and comment
140.9on the project.

140.10    Sec. 8. Minnesota Statutes 2008, section 123B.71, subdivision 8, is amended to read:
140.11    Subd. 8. Review and comment. A school district, a special education cooperative,
140.12or a cooperative unit of government, as defined in section 123A.24, subdivision 2,
140.13must not initiate an installment contract for purchase or a lease agreement, hold a
140.14referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of
140.15an educational facility that requires an expenditure in excess of $500,000 per school site if
140.16it has a capital loan outstanding, or $1,400,000 per school site if it does not have a capital
140.17loan outstanding, prior to review and comment by the commissioner. The commissioner
140.18may exempt a facility maintenance project funded with general education aid and levy,
140.19alternative facilities bonding and levy program, or health and safety revenue from this
140.20provision after reviewing a written request from a school district describing the scope of
140.21work. A school board shall not separate portions of a single project into components to
140.22avoid the requirements of this subdivision.

140.23    Sec. 9. Minnesota Statutes 2008, section 123B.71, subdivision 9, is amended to read:
140.24    Subd. 9. Information required. A school board proposing to construct a facility
140.25described in subdivision 8 shall submit to the commissioner a proposal containing
140.26information including at least the following:
140.27(1) the geographic area and population to be served, preschool through grade 12
140.28student enrollments for the past five years, and student enrollment projections for the
140.29next five years;
140.30(2) a list of existing facilities by year constructed, their uses, and an assessment of
140.31the extent to which alternate facilities are available within the school district boundaries
140.32and in adjacent school districts;
140.33(3) a list of the specific deficiencies of the facility that demonstrate the need for a
140.34new or renovated facility to be provided, and a list of the specific benefits that the new
141.1or renovated facility will provide to the students, teachers, and community users served
141.2by the facility;
141.3(4) the relationship of the project to any priorities established by the school district,
141.4educational cooperatives that provide support services, or other public bodies in the
141.5service area;
141.6(5) a description of the pedestrian, bicycle, and transit connections between the
141.7school and nearby residential areas that make it easier for children, teachers, and parents
141.8to get to the school by walking, bicycling, and taking transit;
141.9(5) (6) a specification of how the project will increase community use of the facility
141.10maximizes the opportunity for cooperative use of existing park, recreation, and other
141.11public facilities and whether and how the project will increase collaboration with other
141.12governmental or nonprofit entities;
141.13(6) (7) a description of the project, including the specification of site and outdoor
141.14space acreage and square footage allocations for classrooms, laboratories, and support
141.15spaces; estimated expenditures for the major portions of the project; and the dates the
141.16project will begin and be completed;
141.17(7) (8) a specification of the source of financing the project; the scheduled date
141.18for a bond issue or school board action; a schedule of payments, including debt service
141.19equalization aid; and the effect of a bond issue on local property taxes by the property
141.20class and valuation;
141.21(8) (9) an analysis of how the proposed new or remodeled facility will affect school
141.22district operational or administrative staffing costs, and how the district's operating budget
141.23will cover any increased operational or administrative staffing costs;
141.24(9) (10) a description of the consultation with local or state road and transportation
141.25officials on multimodal school site access and safety issues, and the ways that the project
141.26will address those issues;
141.27(10) (11) a description of how indoor air quality issues have been considered and a
141.28certification that the architects and engineers designing the facility will have professional
141.29liability insurance;
141.30(11) (12) as required under section 123B.72, for buildings coming into service
141.31after July 1, 2002, a certification that the plans and designs for the extensively renovated
141.32or new facility's heating, ventilation, and air conditioning systems will meet or exceed
141.33code standards; will provide for the monitoring of outdoor airflow and total airflow of
141.34ventilation systems; and will provide an indoor air quality filtration system that meets
141.35ASHRAE standard 52.1;
142.1(12) (13) a specification of any desegregation requirements that cannot be met
142.2by any other reasonable means;
142.3(13) (14) a specification, if applicable, of how the facility will utilize environmentally
142.4sustainable school facility design concepts; and
142.5(14) (15) a description of how the architects and engineers have considered
142.6the American National Standards Institute Acoustical Performance Criteria, Design
142.7Requirements and Guidelines for Schools of the maximum background noise level and
142.8reverberation times.; and
142.9    (16) any existing information from the relevant local unit of government about the
142.10cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
142.11roads, and sidewalks.

142.12    Sec. 10. Minnesota Statutes 2008, section 123B.71, subdivision 12, is amended to read:
142.13    Subd. 12. Publication. (a) At least 20 days but not more than 60 days before a
142.14referendum for bonds or solicitation of bids for a project that has received a positive or
142.15unfavorable review and comment under section 123B.70, the school board shall publish a
142.16summary of the commissioner's review and comment of that project in the legal newspaper
142.17of the district. Supplementary information shall be available to the public.
142.18(b) The publication requirement in paragraph (a) does not apply to alternative
142.19facilities projects approved under section 123B.59. Publication for alternative facilities
142.20projects shall be as specified in section 123B.59, subdivisions 3 and 3a.

142.21    Sec. 11. Minnesota Statutes 2008, section 125B.26, is amended to read:
142.22125B.26 TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.
142.23    Subdivision 1. Costs to be submitted. (a) A district or, charter school, or
142.24intermediate school district shall submit its actual telecommunications/Internet access
142.25costs for the previous fiscal year, adjusted for any e-rate revenue received, to the
142.26department by August 15 of each year as prescribed by the commissioner. Costs eligible
142.27for reimbursement under this program are limited to the following:
142.28(1) ongoing or recurring telecommunications/Internet access costs associated with
142.29Internet access, data lines, and video links providing:
142.30(i) the equivalent of one data line, video link, or integrated data/video link that relies
142.31on a transport medium that operates at a minimum speed of 1.544 megabytes per second
142.32(T1) for each elementary school, middle school, or high school under section 120A.05,
142.33subdivisions 9, 11, and 13
, including the recurring telecommunications line lease costs
142.34and ongoing Internet access service fees; or
143.1(ii) the equivalent of one data line or video circuit, or integrated data/video link that
143.2relies on a transport medium that operates at a minimum speed of 1.544 megabytes per
143.3second (T1) for each district, including recurring telecommunications line lease costs
143.4and ongoing Internet access service fees;
143.5(2) recurring costs of contractual or vendor-provided maintenance on the school
143.6district's wide area network to the point of presence at the school building up to the router,
143.7codec, or other service delivery equipment located at the point of presence termination
143.8at the school or school district;
143.9(3) recurring costs of cooperative, shared arrangements for regional delivery of
143.10telecommunications/Internet access between school districts, postsecondary institutions,
143.11and public libraries including network gateways, peering points, regional network
143.12infrastructure, Internet2 access, and network support, maintenance, and coordination; and
143.13(4) service provider installation fees for installation of new telecommunications lines
143.14or increased bandwidth.
143.15(b) Costs not eligible for reimbursement under this program include:
143.16(1) recurring costs of school district staff providing network infrastructure support;
143.17(2) recurring costs associated with voice and standard telephone service;
143.18(3) costs associated with purchase of network hardware, telephones, computers, or
143.19other peripheral equipment needed to deliver telecommunications access to the school or
143.20school district;
143.21(4) costs associated with laying fiber for telecommunications access;
143.22(5) costs associated with wiring school or school district buildings;
143.23(6) costs associated with purchase, installation, or purchase and installation of
143.24Internet filtering; and
143.25(7) costs associated with digital content, including online learning or distance
143.26learning programming, and information databases.
143.27    Subd. 2. E-rates. To be eligible for aid under this section, a district or, charter
143.28school, or intermediate school district is required to file an e-rate application either
143.29separately or through its telecommunications access cluster and have a current technology
143.30plan on file with the department. Discounts received on telecommunications expenditures
143.31shall be reflected in the costs submitted to the department for aid under this section.
143.32    Subd. 3. Reimbursement criteria. The commissioner shall develop criteria
143.33for approving costs submitted by organized school districts and, charter schools, and
143.34intermediate school districts under subdivision 1.
143.35    Subd. 4. District aid. For fiscal year 2006 and later, a district or, charter school's
143.36school, or intermediate school district's Internet access equity aid equals the district or,
144.1charter school's school, or intermediate school district's approved cost for the previous
144.2fiscal year according to subdivision 1 exceeding $15 times the district's adjusted marginal
144.3cost pupil units for the previous fiscal year or no reduction if the district is part of an
144.4organized telecommunications access cluster. Equity aid must be distributed to the
144.5telecommunications access cluster for districts, charter schools, or intermediate school
144.6districts that are members of the cluster or to individual districts and, charter schools, or
144.7intermediate school districts not part of a telecommunications access cluster.
144.8    Subd. 5. Telecommunications/Internet access services for nonpublic schools.
144.9(a) Districts shall provide each year upon formal request by or on behalf of a nonpublic
144.10school, not including home schools, located in that district or area, ongoing or recurring
144.11telecommunications access services to the nonpublic school either through existing district
144.12providers or through separate providers.
144.13(b) The amount of district aid for telecommunications access services for each
144.14nonpublic school under this subdivision equals the lesser of:
144.15(1) 90 percent of the nonpublic school's approved cost for the previous fiscal year
144.16according to subdivision 1 exceeding $10 for fiscal year 2006 and later times the number
144.17of weighted pupils enrolled at the nonpublic school as of October 1 of the previous
144.18school year; or
144.19(2) the product of the district's aid per pupil unit according to subdivision 4 times
144.20the number of weighted pupils enrolled at the nonpublic school as of October 1 of the
144.21previous school year.
144.22(c) For purposes of this subdivision, nonpublic school pupils shall be weighted by
144.23grade level using the weighting factors defined in section 126C.05, subdivision 1.
144.24(d) Each year, a district providing services under paragraph (a) may claim up to five
144.25percent of the aid determined in paragraph (b) for costs of administering this subdivision.
144.26No district may expend an amount for these telecommunications access services which
144.27exceeds the amount allocated under this subdivision. The nonpublic school is responsible
144.28for the Internet access costs not covered by this section.
144.29(e) At the request of a nonpublic school, districts may allocate the amount
144.30determined in paragraph (b) directly to the nonpublic school to pay for or offset the
144.31nonpublic school's costs for telecommunications access services; however, the amount
144.32allocated directly to the nonpublic school may not exceed the actual amount of the school's
144.33ongoing or recurring telecommunications access costs.
144.34    Subd. 6. Severability. If any portion of this section is found by a court to be
144.35unconstitutional, the remaining portions of the section shall remain in effect.
144.36EFFECTIVE DATE.This section is effective the day following final enactment.

145.1    Sec. 12. APPROPRIATIONS.
145.2    Subdivision 1. Department of Education. The sums indicated in this section are
145.3appropriated from the general fund to the Department of Education for the fiscal years
145.4designated.
145.5    Subd. 2. Health and safety revenue. For health and safety aid according to
145.6Minnesota Statutes, section 123B.57, subdivision 5:
145.7
$
161,000
.....
2010
145.8
$
160,000
.....
2011
145.9The 2010 appropriation includes $10,000 for 2009 and $151,000 for 2010.
145.10The 2011 appropriation includes $16,000 for 2010 and $144,000 for 2011.
145.11    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
145.12Statutes, section 123B.53, subdivision 6:
145.13
$
7,948,000
.....
2010
145.14
$
9,275,000
.....
2011
145.15The 2010 appropriation includes $851,000 for 2009 and $7,097,000 for 2010.
145.16The 2011 appropriation includes $788,000 for 2010 and $8,487,000 for 2011.
145.17    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
145.18according to Minnesota Statutes, section 123B.59, subdivision 1:
145.19
$
19,287,000
.....
2010
145.20
$
19,287,000
.....
2011
145.21The 2010 appropriation includes $1,928,000 for 2009 and $17,359,000 for 2010.
145.22The 2011 appropriation includes $1,928,000 for 2010 and $17,359,000 for 2011.
145.23    Subd. 5. Equity in telecommunications access. For equity in telecommunications
145.24access:
145.25
$
3,750,000
.....
2010
145.26
$
3,750,000
.....
2011
145.27If the appropriation amount is insufficient, the commissioner shall reduce the
145.28reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
145.29revenue for fiscal years 2010 and 2011 shall be prorated.
145.30Any balance in the first year does not cancel but is available in the second year.
145.31    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
145.32Minnesota Statutes, section 123B.591, subdivision 4:
146.1
$
2,302,000
.....
2010
146.2
$
2,073,000
.....
2011
146.3The 2010 appropriation includes $260,000 for 2009 and $2,042,000 for 2010.
146.4The 2011 appropriation includes $226,000 for 2010 and $1,847,000 for 2011.

146.5ARTICLE 5
146.6LIBRARIES, NUTRITION, AND ACCOUNTING

146.7    Section 1. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:
146.8    Subdivision 1. Budgets; form of notification. (a) Every board must publish revenue
146.9and expenditure budgets for the current year and the actual revenues, expenditures, fund
146.10balances for the prior year and projected fund balances for the current year in a form
146.11prescribed by the commissioner within one week of the acceptance of the final audit by
146.12the board, or November 30, whichever is earlier. The forms prescribed must be designed
146.13so that year to year comparisons of revenue, expenditures and fund balances can be made.
146.14    (b) A school board annually must notify the public of its revenue, expenditures, fund
146.15balances, and other relevant budget information. The board must include the budget
146.16information required by this section in the materials provided as a part of its truth in
146.17taxation hearing, post the materials in a conspicuous place on the district's official Web
146.18site, including a link to the district's school report card on the Department of Education's
146.19Web site, and publish a summary of the information and the address of the district's
146.20official Web site where the information can be found in a qualified newspaper of general
146.21circulation in the district.

146.22    Sec. 2. Minnesota Statutes 2008, section 123B.14, subdivision 7, is amended to read:
146.23    Subd. 7. Clerk records. The clerk shall keep a record of all meetings of the
146.24district and the board in books provided by the district for that purpose. The clerk shall,
146.25within three days after an election, notify all persons elected of their election. By August
146.26September 15 of each year the clerk shall file with the board a report of the revenues,
146.27expenditures and balances in each fund for the preceding fiscal year. The report together
146.28with vouchers and supporting documents shall subsequently be examined by a public
146.29accountant or the state auditor, either of whom shall be paid by the district, as provided
146.30in section 123B.77, subdivision 3. The board shall by resolution approve the report or
146.31require a further or amended report. By August September 15 of each year, the clerk shall
146.32make and transmit to the commissioner certified reports, showing:
146.33(1) The condition and value of school property;
147.1(2) the revenues and expenditures in detail, and such other financial information
147.2required by law, rule, or as may be called for by the commissioner;
147.3(3) (2) the length of school term and the enrollment and attendance by grades; and
147.4(4) (3) such other items of information as may be called for by the commissioner.
147.5The clerk shall enter in the clerk's record book copies of all reports and of the
147.6teachers' term reports, as they appear in the registers, and of the proceedings of any
147.7meeting as furnished by the clerk pro tem, and keep an itemized account of all the
147.8expenses of the district. The clerk shall furnish to the auditor of the proper county, by
147.9October 10 September 30 of each year, an attested copy of the clerk's record, showing
147.10the amount of money proposed property tax voted by the district or the board for school
147.11purposes; draw and sign all orders upon the treasurer for the payment of money for bills
147.12allowed by the board for salaries of officers and for teachers' wages and all claims, to be
147.13countersigned by the chair. Such orders must state the consideration, payee, and the
147.14fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
147.15the order in which they become due, and no money applicable for teachers' wages shall
147.16be used for any other purpose, nor shall teachers' wages be paid from any fund except
147.17that raised or apportioned for that purpose.

147.18    Sec. 3. Minnesota Statutes 2008, section 123B.79, subdivision 7, is amended to read:
147.19    Subd. 7. Account transfer for certain severance pay designated separation
147.20and retirement benefits. A district may separately maintain in a reserve for certain
147.21severance pay designated for separation and retirement benefit account not more than 50
147.22percent of the amount necessary to meet the obligations for the portion of severance
147.23pay that constitutes compensation for accumulated sick leave to be used for payment of
147.24premiums for group insurance provided for former employees by the district separation
147.25and retirement benefits, including compensated absences, termination benefits, pension
147.26benefits, and other postemployment benefits, not accounted for elsewhere. The amount
147.27necessary must be calculated according to standards established by the department.
147.28EFFECTIVE DATE.This section is effective the day following final enactment.

147.29    Sec. 4. Minnesota Statutes 2008, section 123B.81, subdivision 3, is amended to read:
147.30    Subd. 3. Debt verification. The commissioner shall establish a uniform auditing or
147.31other verification procedure for districts to determine whether a statutory operating debt
147.32exists in any Minnesota school district as of June 30, 1977. This procedure must identify
147.33all interfund transfers made during fiscal year 1977 from a fund included in computing
147.34statutory operating debt to a fund not included in computing statutory operating debt. The
148.1standards for this uniform auditing or verification procedure must be promulgated by the
148.2state board pursuant to chapter 14 commissioner. If a district applies to the commissioner
148.3for a statutory operating debt verification or if the unaudited financial statement for the
148.4school year ending June 30, 1977 reveals that a statutory operating debt might exist, the
148.5commissioner shall require a verification of the amount of the statutory operating debt
148.6which actually does exist.

148.7    Sec. 5. Minnesota Statutes 2008, section 123B.81, subdivision 4, is amended to read:
148.8    Subd. 4. Debt elimination. If an audit or other verification procedure conducted
148.9pursuant to subdivision 3 determines that a statutory operating debt exists, a district
148.10must follow the procedures set forth in this section 123B.83 to eliminate this statutory
148.11operating debt.

148.12    Sec. 6. Minnesota Statutes 2008, section 123B.81, subdivision 5, is amended to read:
148.13    Subd. 5. Certification of debt. The commissioner shall certify the amount of
148.14statutory operating debt for each district. Prior to June 30, 1979, the commissioner may,
148.15on the basis of corrected figures, adjust the total amount of statutory operating debt
148.16certified for any district.

148.17    Sec. 7. Minnesota Statutes 2008, section 134.31, subdivision 4a, is amended to read:
148.18    Subd. 4a. Services to the blind and physically handicapped people with visual
148.19and physical disabilities. The Minnesota Department of Education shall provide
148.20specialized services to the blind and physically handicapped people with visual and
148.21physical disabilities through the Minnesota Braille and Talking Book Library for the Blind
148.22and Physically Handicapped under a cooperative plan with the National Library Services
148.23for the Blind and Physically Handicapped of the Library of Congress.
148.24EFFECTIVE DATE.This section is effective the day following final enactment.

148.25    Sec. 8. Minnesota Statutes 2008, section 134.31, is amended by adding a subdivision
148.26to read:
148.27    Subd. 7. Telephone or electronic meetings. (a) Notwithstanding section 13D.01,
148.28the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
148.29a meeting of its members by telephone or other electronic means so long as the following
148.30conditions are met:
148.31(1) all members of the committee participating in the meeting, wherever their
148.32physical locations, can hear one another and can hear all discussion and testimony;
149.1(2) members of the public present at the regular meeting location of the committee
149.2can hear all discussion, testimony, and votes of the members of the committee;
149.3(3) at least one member of the committee is physically present at the regular meeting
149.4location; and
149.5(4) all votes are conducted by roll call, so each member's vote on each issue can be
149.6identified and recorded.
149.7(b) Each member of the committee participating in a meeting by telephone or other
149.8electronic means is considered present at the meeting for purposes of determining quorum
149.9and participating in all proceedings.
149.10(c) If telephone or other electronic means is used to conduct a meeting, to the extent
149.11practical, the committee shall allow a person to monitor the meeting electronically from a
149.12remote location. The committee may require the person making the connection to pay
149.13for the documented additional costs that the committee incurs as a result of the additional
149.14connection.
149.15(d) If telephone or other electronic means is used to conduct a regular, special, or
149.16emergency meeting, the committee shall provide notice of the regular meeting location,
149.17the fact that some members may participate by telephone or other electronic means, and
149.18the provisions of paragraph (c). The timing and method of providing notice is governed
149.19by section 13D.04.
149.20EFFECTIVE DATE.This section is effective the day following final enactment.

149.21    Sec. 9. Minnesota Statutes 2008, section 134.34, subdivision 1, is amended to read:
149.22    Subdivision 1. Local support levels. (a) A regional library basic system support
149.23grant shall be made to any regional public library system where there are at least three
149.24participating counties and where each participating city and county is providing for
149.25public library service support the lesser of (a) an amount equivalent to .82 percent of the
149.26average of the adjusted net tax capacity of the taxable property of that city or county,
149.27as determined by the commissioner of revenue for the second, third, and fourth year
149.28preceding that calendar year in 1991 and later years or (b) a per capita amount calculated
149.29under the provisions of this subdivision. The per capita amount is established for calendar
149.30year 1993 as $7.62. In succeeding calendar years, the per capita amount shall be increased
149.31by a percentage equal to one-half of the percentage by which the total state adjusted net
149.32tax capacity of property as determined by the commissioner of revenue for the second
149.33year preceding that calendar year increases over that total adjusted net tax capacity for
149.34the third year preceding that calendar year.
150.1(b) The minimum level of support specified under this subdivision or subdivision 4
150.2shall be certified annually to the participating cities and counties by the Department of
150.3Education. If a city or county chooses to reduce its local support in accordance with
150.4subdivision 4, paragraphs (b) or (c), it shall notify its regional public library system. The
150.5regional public library system shall notify the Department of Education that a revised
150.6certification is required. The revised minimum level of support shall be certified to the
150.7city or county by the Department of Education.
150.8(c) A city which is a part of a regional public library system shall not be required to
150.9provide this level of support if the property of that city is already taxable by the county
150.10for the support of that regional public library system. In no event shall the Department
150.11of Education require any city or county to provide a higher level of support than the
150.12level of support specified in this section in order for a system to qualify for a regional
150.13library basic system support grant. This section shall not be construed to prohibit a city
150.14or county from providing a higher level of support for public libraries than the level of
150.15support specified in this section.
150.16EFFECTIVE DATE.This section is effective for calendar years 2009 and later,
150.17except that the change in paragraph (a) is effective for calendar years 2011 and later.

150.18    Sec. 10. Minnesota Statutes 2008, section 134.34, subdivision 4, is amended to read:
150.19    Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library
150.20basic system support grant shall not be made to a regional public library system for a
150.21participating city or county which decreases the dollar amount provided for support for
150.22operating purposes of public library service below the amount provided by it for the
150.23second, or third preceding year, whichever is less. For purposes of this subdivision and
150.24subdivision 1, any funds provided under section 473.757, subdivision 2, for extending
150.25library hours of operation shall not be considered amounts provided by a city or county for
150.26support for operating purposes of public library service. This subdivision shall not apply
150.27to participating cities or counties where the adjusted net tax capacity of that city or county
150.28has decreased, if the dollar amount of the reduction in support is not greater than the dollar
150.29amount by which support would be decreased if the reduction in support were made in
150.30direct proportion to the decrease in adjusted net tax capacity.
150.31(b) For calendar year 2009 and later, in any calendar year in which a city's or
150.32county's aid under sections 477A.011 to 477A.014 or credits under section 273.1384 is
150.33reduced after the city or county has certified its levy payable in that year, it may reduce
150.34its local support by the lesser of:
150.35(1) ten percent; or
151.1(2) a percent equal to the ratio of the aid and credit reductions to the city's or county's
151.2revenue base, based on aids certified for the current calendar year. For calendar year 2009
151.3only, the reduction under this paragraph shall be based on 2008 aid and credit reductions
151.4under the December 2008 unallotment, as well as any aid and credit reductions in calendar
151.5year 2009. For pay 2009 only, the commissioner of revenue will calculate the reductions
151.6under this paragraph and certify them to the commissioner of education within 15 days
151.7of this provision becoming law.
151.8(c) For taxes payable in 2010 and later, in any payable year in which the total
151.9amounts certified for city or county aids under sections 477A.011 to 477A.014 are less
151.10than the total amounts paid under those sections in the previous calendar year, a city or
151.11county may reduce its local support by the lesser of:
151.12(1) ten percent; or
151.13(2) a percent equal to the ratio of:
151.14(i) the difference between (A) the sum of the aid it was paid under sections 477A.011
151.15to 477A.014 and the credits it received under section 273.1398 in the previous calendar
151.16year and (B) the sum of the aid it is certified to be paid in the current calendar year
151.17under sections 477A.011 to 477A.014 and the credits estimated to be paid under section
151.18273.1398; to
151.19(ii) its revenue base for the previous year, based on aids actually paid in the previous
151.20calendar year. The commissioner of revenue shall calculate the percent aid cut for each
151.21county and city under this paragraph and certify the percentage cuts to the commissioner
151.22of education by August 1 of the year prior to the year in which the reduced aids and credits
151.23are to be paid. The percentage of reduction related to reductions to credits under section
151.24273.1384, shall be based on the best estimation available as of July 30.
151.25(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
151.26support for public libraries below the minimum level specified in subdivision 1.
151.27(e) For purposes of this subdivision, "revenue base" means the sum of:
151.28(1) its levy for taxes payable in the current calendar year, including the levy on
151.29the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a),
151.30or 473F.08, subdivision 3, paragraph (a);
151.31(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
151.32(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
151.33EFFECTIVE DATE.This section is effective for support in calendar year 2009
151.34and thereafter and for library grants paid in fiscal year 2010 and thereafter, except that the
151.35changes in paragraph (a) are effective for support in calendar year 2010 and thereafter.

152.1    Sec. 11. Laws 2008, chapter 363, article 2, section 46, subdivision 1, is amended to
152.2read:
152.3    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
152.4on June 30, of 2008, 2009, and 2010, a school district may transfer money from its
152.5reserved for operating capital account to its undesignated balance in the general fund. The
152.6amount transferred by any school district must not exceed $51 times the district's adjusted
152.7marginal cost pupil units for the second preceding fiscal year 2007. This transfer annually
152.8may occur only after the school board has adopted a written resolution stating the amount
152.9of the transfer and declaring that the school district's operating capital needs are being met.
152.10EFFECTIVE DATE.This section is effective the day following final enactment.

152.11    Sec. 12. FUND TRANSFERS.
152.12    Subdivision 1. Lac Qui Parle Valley. Notwithstanding Minnesota Statutes, sections
152.13123B.79; 123B.80; and 475.61, subdivision 4, on June 30, 2009, Independent School
152.14District No. 2853, Lac qui Parle Valley, may permanently transfer up to $221,000 from its
152.15debt redemption fund to its reserved for capital account without making a levy reduction.
152.16    Subd. 2. Mankato. Notwithstanding Minnesota Statutes, section 123B.79,
152.17123B.80, or 475.61, subdivision 4, on June 30, 2009, Independent School District No. 77,
152.18Mankato, may permanently transfer up to $250,000 from its debt redemption fund to its
152.19undesignated general fund balance without making a levy reduction.
152.20    Subd. 3. Ortonville. Notwithstanding Minnesota Statutes, section 123B.79,
152.21123B.80, or 475.61, subdivision 4, on June 30, 2009, Independent School District No. 62,
152.22Ortonville, may permanently transfer up to $200,000 from its debt redemption fund to its
152.23reserved for operating capital account without making a levy reduction.
152.24    Subd. 4. St. Anthony-New Brighton. Notwithstanding Minnesota Statutes,
152.25section 123B.79 or 123B.80, on June 30, 2009, Independent School District No. 282, St.
152.26Anthony-New Brighton, may permanently transfer up to $400,000 from its reserved for
152.27operating capital account to its undesignated general fund balance.
152.28EFFECTIVE DATE.This section is effective the day following final enactment.

152.29    Sec. 13. APPROPRIATIONS.
152.30    Subdivision 1. Department of Education. The sums indicated in this section are
152.31appropriated from the general fund to the Department of Education for the fiscal years
152.32designated.
153.1    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
153.2section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
153.3
$
12,688,000
.....
2010
153.4
$
13,069,000
.....
2011
153.5    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
153.6Statutes, section 124D.1158:
153.7
$
4,978,000
.....
2010
153.8
$
5,147,000
.....
2011
153.9    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
153.10section 124D.118:
153.11
$
1,098,000
.....
2010
153.12
$
1,120,000
.....
2011
153.13    Subd. 5. Summer school service replacement aid. For summer food service
153.14replacement aid under Minnesota Statutes, section 124D.119:
153.15
$
150,000
.....
2010
153.16
$
150,000
.....
2011
153.17    Subd. 6. Basic system support. For basic system support grants under Minnesota
153.18Statutes, section 134.355:
153.19
$
13,570,000
.....
2010
153.20
$
13,570,000
.....
2011
153.21The 2010 appropriation includes $1,357,000 for 2009 and $12,213,000 for 2010.
153.22The 2011 appropriation includes $1,357,000 for 2010 and $12,213,000 for 2011.
153.23    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
153.24Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
153.25
$
1,300,000
.....
2010
153.26
$
1,300,000
.....
2011
153.27The 2010 appropriation includes $130,000 for 2009 and $1,170,000 for 2010.
153.28The 2011 appropriation includes $130,000 for 2010 and $1,170,000 for 2011.
153.29    Subd. 8. Electronic library for Minnesota. For statewide licenses to online
153.30databases selected in cooperation with the Minnesota Office of Higher Education for
153.31school media centers, public libraries, state government agency libraries, and public
153.32or private college or university libraries:
154.1
$
900,000
.....
2010
154.2
$
900,000
.....
2011
154.3Any balance in the first year does not cancel but is available in the second year.
154.4    Subd. 9. Regional library telecommunications aid. For regional library
154.5telecommunications aid under Minnesota Statutes, section 134.355:
154.6
$
2,300,000
.....
2010
154.7
$
2,300,000
.....
2011
154.8The 2010 appropriation includes $230,000 for 2009 and $2,070,000 for 2010.
154.9The 2011 appropriation includes $230,000 for 2010 and $2,070,000 for 2011.

154.10ARTICLE 6
154.11EARLY CHILDHOOD EDUCATION, PREVENTION, SELF-SUFFICIENCY,
154.12AND LIFELONG LEARNING

154.13    Section 1. Minnesota Statutes 2008, section 119A.52, is amended to read:
154.14119A.52 DISTRIBUTION OF APPROPRIATION.
154.15    (a) The commissioner of education must distribute money appropriated for that
154.16purpose to federally designated Head Start programs to expand services and to serve
154.17additional low-income children. Migrant and Indian reservation programs must be initially
154.18allocated money based on the programs' share of federal funds. The remaining money
154.19must be initially allocated to the remaining local agencies based equally on the agencies'
154.20share of federal funds and on the proportion of eligible children in the agencies' service
154.21area who are not currently being served. A Head Start program must be funded at a per
154.22child rate equal to its contracted, federally funded base level at the start of the fiscal
154.23year. For all agencies without a federal Early Head Start rate, the state average federal
154.24cost per child for Early Head Start applies. In allocating funds under this paragraph, the
154.25commissioner of education must assure that each Head Start program in existence in
154.261993 is allocated no less funding in any fiscal year than was allocated to that program in
154.27fiscal year 1993. Before paying money to the programs, the commissioner must notify
154.28each program of its initial allocation, and how the money must be used, and the number of
154.29low-income children to be served with the allocation based upon the federally funded per
154.30child rate. Each program must present a plan under section 119A.535. For any program
154.31that cannot utilize its full allocation at the beginning of the fiscal year, the commissioner
154.32must reduce the allocation proportionately. Money available after the initial allocations
154.33are reduced must be redistributed to eligible programs.
155.1    (b) The commissioner must develop procedures to make payments to programs
155.2based upon the number of children reported to be enrolled during the required time
155.3period of program operations. Enrollment is defined by federal Head Start regulations.
155.4The procedures must include a reporting schedule, corrective action plan requirements,
155.5and financial consequences to be imposed on programs that do not meet full enrollment
155.6after the period of corrective action. Programs reporting chronic underenrollment, as
155.7defined by the commissioner, will have their subsequent program year allocation reduced
155.8proportionately. Funds made available by prorating payments and allocations to programs
155.9with reported underenrollment will be made available to the extent funds exist to fully
155.10enrolled Head Start programs through a form and manner prescribed by the department.
155.11(c) Programs with approved innovative initiatives that target services to high-risk
155.12populations, including homeless families and families living in homeless shelters and
155.13transitional housing, are exempt from the procedures in paragraph (b). This exemption
155.14does not apply to entire programs. The exemption applies only to approved innovative
155.15initiatives that target services to high-risk populations, including homeless families and
155.16families living in homeless shelters, transitional housing, and permanent supportive
155.17housing.

155.18    Sec. 2. Minnesota Statutes 2008, section 124D.13, subdivision 13, is amended to read:
155.19    Subd. 13. Plan and Program data submission requirements. (a) An early
155.20childhood family education program must submit a biennial plan addressing the
155.21requirements of subdivision 2 for approval by the commissioner. The plan must also
155.22describe how the program provides parenting education and ensures participation of
155.23families representative of the school district. A school district must submit the plan for
155.24approval by the commissioner in the form and manner prescribed by the commissioner.
155.25One-half of districts, as determined by the commissioner, must first submit a biennial plan
155.26by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
155.27    (b) Districts receiving early childhood family education revenue under section
155.28124D.135 must submit annual program data to the department by July 15 in the form and
155.29manner prescribed by the commissioner.
155.30    (c) Beginning with levies for fiscal year 2011, a school district must submit its annual
155.31program data to the department before it may certify a levy under section 124D.135.
155.32Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must
155.33also have an approved plan on file with the commissioner before certifying a levy under
155.34section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all
156.1districts must submit annual program data and have an approved biennial plan on file with
156.2the commissioner before certifying a levy under section 124D.135.

156.3    Sec. 3. Minnesota Statutes 2008, section 124D.135, subdivision 3, is amended to read:
156.4    Subd. 3. Early childhood family education levy. (a) By September 30 of each
156.5year, the commissioner shall establish a tax rate for early childhood family education
156.6revenue that raises $22,135,000 in each fiscal year. If the amount of the early childhood
156.7family education levy would exceed the early childhood family education revenue, the
156.8early childhood family education levy must equal the early childhood family education
156.9revenue. Beginning with levies for fiscal year 2011, A district may not certify an early
156.10childhood family education levy unless it has met the annual program data reporting and
156.11biennial plan requirements under section 124D.13, subdivision 13.
156.12    (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
156.13establish a tax rate for early education revenue that raises $13,565,000.

156.14    Sec. 4. [124D.142] QUALITY RATING AND IMPROVEMENT SYSTEM.
156.15(a) There is established a quality rating and improvement system (QRIS) framework
156.16to ensure that Minnesota's children have access to high-quality early learning and care
156.17programs in a range of settings so that they are fully ready for kindergarten by 2020.
156.18Creation of a standards-based voluntary quality rating and improvement system includes:
156.19(1) quality opportunities in order to improve the educational outcomes of children so
156.20that they are ready for school. The framework shall be based on the Minnesota quality
156.21rating system rating tool and a common set of child outcome and program standards and
156.22informed by evaluation results;
156.23(2) a tool to increase the number of publicly funded and regulated early learning
156.24and care services in both public and private market programs that are high quality. If a
156.25program or provider chooses to participate, the program or provider will be rated and may
156.26receive public funding associated with the rating. The state shall develop a plan to link
156.27future early learning and care state funding to the framework in a manner that complies
156.28with federal requirements; and
156.29(3) tracking progress toward statewide access to high-quality early learning and care
156.30programs, progress toward the number of low-income children whose parents can access
156.31quality programs, and progress toward increasing the number of children who are fully
156.32prepared to enter kindergarten.
157.1(b) In planning a statewide quality rating and improvement system framework in
157.2paragraph (a), the state shall use evaluation results of the Minnesota quality rating system
157.3rating tool in use in fiscal year 2008 to recommend:
157.4(1) a framework of a common set of child outcome and program standards for a
157.5voluntary statewide quality rating and improvement system;
157.6(2) a plan to link future funding to the framework described in paragraph (a),
157.7clause (2); and
157.8(3) a plan for how the state will realign existing state and federal administrative
157.9resources to implement the voluntary quality rating and improvement system framework.
157.10The state shall provide the recommendation in this paragraph to the early childhood
157.11education finance committees of the legislature by March 15, 2011.
157.12(c) Prior to the creation of a statewide quality rating and improvement system in
157.13paragraph (a), the state shall employ the Minnesota quality rating system rating tool in use
157.14in fiscal year 2008 in the original Minnesota Early Learning Foundation pilot areas and
157.15additional pilot areas supported by private or public funds with its modification as a result
157.16of the evaluation results of the pilot project.
157.17EFFECTIVE DATE.This section is effective July 1, 2009.

157.18    Sec. 5. Minnesota Statutes 2008, section 124D.15, subdivision 3, is amended to read:
157.19    Subd. 3. Program requirements. A school readiness program provider must:
157.20    (1) assess each child's cognitive skills with a comprehensive child assessment
157.21instrument when the child enters and again before the child leaves the program to inform
157.22program planning and parents and promote kindergarten readiness;
157.23    (2) provide comprehensive program content and intentional instructional practice
157.24aligned with the state early childhood learning guidelines and kindergarten standards and
157.25based on early childhood research and professional practice that is focused on children's
157.26cognitive, social, emotional, and physical skills and development and prepares children
157.27for the transition to kindergarten, including early literacy skills;
157.28(3) coordinate appropriate kindergarten transition with parents and kindergarten
157.29teachers;
157.30    (3) (4) arrange for early childhood screening and appropriate referral;
157.31    (4) (5) involve parents in program planning and decision making;
157.32    (5) (6) coordinate with relevant community-based services; and
157.33    (6) (7) cooperate with adult basic education programs and other adult literacy
157.34programs.;
158.1(8) ensure staff-child ratios of one-to-ten and maximum group size of 20 children
158.2with the first staff required to be a teacher; and
158.3(9) have teachers knowledgeable in early childhood curriculum content, assessment,
158.4and instruction.

158.5    Sec. 6. Minnesota Statutes 2008, section 124D.19, subdivision 10, is amended to read:
158.6    Subd. 10. Youth service programs. (a) A school board may offer, as part of a
158.7community education program with a youth development program, a youth service
158.8program that provides young people with meaningful opportunities to become involved in
158.9their community, develop individual capabilities, make career connections, seek support
158.10networks and services, become active citizens, and address community needs through
158.11youth service. The board may award up to one credit, or the equivalent, toward graduation
158.12for a pupil who completes the youth service requirements of the district. The community
158.13education advisory council, after considering the results of the commissioner's study
158.14under section 124D.50, subdivision 1, must design the program in cooperation with the
158.15district planning, evaluating and reporting committee and local organizations that train
158.16volunteers or need volunteers' services.
158.17(b) Programs must include:
158.18(1) preliminary training for pupil volunteers conducted, when possible, by
158.19organizations experienced in such training;
158.20(2) supervision of the pupil volunteers to ensure appropriate placement and adequate
158.21learning opportunity;
158.22(3) sufficient opportunity, in a positive setting for human development, for pupil
158.23volunteers to develop general skills in preparation for employment, to enhance self-esteem
158.24and self-worth, and to give genuine service to their community;
158.25(4) integration of academic learning with the service experience; and
158.26(5) integration of youth community service with elementary and secondary
158.27curriculum.
158.28(c) Youth service projects include, but are not limited to, the following:
158.29(1) human services for the elderly, including home care and related services;
158.30(2) tutoring and mentoring;
158.31(3) training for and providing emergency services;
158.32(4) services at extended day programs;
158.33(5) environmental services; and
158.34(6) service-learning programs in which schools, including postsecondary schools,
158.35and employers work together with young people to provide them with meaningful
159.1opportunities for community service and with the academic and technical skills that
159.2employers require.
159.3(d) The commissioner shall maintain a list of acceptable projects with a description
159.4of each project. A project that is not on the list must be approved by the commissioner.
159.5(e) A youth service project must have a community sponsor that may be a
159.6governmental unit or nonprofit organization. To assure that pupils provide additional
159.7services, each sponsor must assure that pupil services do not displace employees or reduce
159.8the workload of any employee.
159.9(f) (e) The commissioner shall assist districts in planning youth service programs,
159.10implementing programs, and developing recommendations for obtaining community
159.11sponsors.

159.12    Sec. 7. Minnesota Statutes 2008, section 124D.19, subdivision 14, is amended to read:
159.13    Subd. 14. Community education; annual report. Each district offering a
159.14community education program under this section must annually report to the department
159.15information regarding the cost per participant and cost per contact hour for each
159.16community education program, including youth after-school enrichment programs, that
159.17receives aid or levy. The department must include cost per participant and cost per contact
159.18hour information by program in the community education annual report.

159.19    Sec. 8. Minnesota Statutes 2008, section 124D.522, is amended to read:
159.20124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
159.21GRANTS.
159.22(a) The commissioner, in consultation with the policy review task force under
159.23section 124D.521, may make grants to nonprofit organizations to provide services that
159.24are not offered by a district adult basic education program or that are supplemental to
159.25either the statewide adult basic education program, or a district's adult basic education
159.26program. The commissioner may make grants for: staff development for adult basic
159.27education teachers and administrators; training for volunteer tutors; training, services, and
159.28materials for serving disabled students through adult basic education programs; statewide
159.29promotion of adult basic education services and programs; development and dissemination
159.30of instructional and administrative technology for adult basic education programs;
159.31programs which primarily serve communities of color; adult basic education distance
159.32learning projects, including television instruction programs; and other supplemental
159.33services to support the mission of adult basic education and innovative delivery of adult
159.34basic education services.
160.1(b) The commissioner must establish eligibility criteria and grant application
160.2procedures. Grants under this section must support services throughout the state, focus on
160.3educational results for adult learners, and promote outcome-based achievement through
160.4adult basic education programs. Beginning in fiscal year 2002, the commissioner may
160.5make grants under this section from the state total adult basic education aid set aside for
160.6supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
160.7for supplemental service grants must be used for grants for adult basic education programs
160.8to encourage and support innovations in adult basic education instruction and service
160.9delivery. A grant to a single organization cannot exceed $100,000 20 percent of the total
160.10supplemental services aid. Nothing in this section prevents an approved adult basic
160.11education program from using state or federal aid to purchase supplemental services.

160.12    Sec. 9. Minnesota Statutes 2008, section 299A.297, is amended to read:
160.13299A.297 OTHER DUTIES.
160.14The commissioner of public safety, in consultation with the Chemical Abuse and
160.15Violence Prevention Council, shall:
160.16(1) provide information and assistance upon request to school preassessment teams
160.17established under section 121A.26 and school and community advisory teams established
160.18under section 121A.27;
160.19(2) provide information and assistance upon request to the State Board of Pharmacy
160.20with respect to the board's enforcement of chapter 152;
160.21(3) cooperate with and provide information and assistance upon request to the
160.22Alcohol and Other Drug Abuse Section in the Department of Human Services;
160.23(4) coordinate the policy of the office with that of the Narcotic Enforcement Unit in
160.24the Bureau of Criminal Apprehension; and
160.25(5) coordinate the activities of the regional drug task forces, provide assistance and
160.26information to them upon request, and assist in the formation of task forces in areas of
160.27the state in which no task force operates.

160.28    Sec. 10. EARLY LEARNING STUDY.
160.29The Department of Human Services, in conjunction with the Department of
160.30Education, shall develop a study to:
160.31(1) determine how to effectively transition basic sliding fee child care, MFIP child
160.32care, and child care development grants from the Department of Human Services to the
160.33Department of Education; and
161.1(2) determine how to create an early learning system with one common set of
161.2standards.
161.3The Department of Human Services and Department of Education must report the
161.4results of this study by February 15, 2010, to the legislative committees having jurisdiction
161.5over health and human services, early education, and K-12 education.

161.6    Sec. 11. APPROPRIATIONS.
161.7    Subdivision 1. Department of Education. The sums indicated in this section are
161.8appropriated from the general fund to the Department of Education for the fiscal years
161.9designated.
161.10    Subd. 2. School readiness. For revenue for school readiness programs under
161.11Minnesota Statutes, sections 124D.15 and 124D.16:
161.12
$
10,095,000
.....
2010
161.13
$
10,095,000
.....
2011
161.14The 2010 appropriation includes $1,009,000 for 2009 and $9,086,000 for 2010.
161.15The 2011 appropriation includes $1,009,000 for 2010 and $9,086,000 for 2011.
161.16    Subd. 3. Early childhood family education aid. For early childhood family
161.17education aid under Minnesota Statutes, section 124D.135:
161.18
$
22,955,000
.....
2010
161.19
$
22,547,000
.....
2011
161.20The 2010 appropriation includes $3,020,000 for 2009 and $19,935,000 for 2010.
161.21The 2011 appropriation includes $2,214,000 for 2010 and $20,333,000 for 2011.
161.22    Subd. 4. Health and developmental screening aid. For health and developmental
161.23screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
161.24
$
3,694,000
.....
2010
161.25
$
3,800,000
.....
2011
161.26The 2010 appropriation includes $367,000 for 2009 and $3,327,000 for 2010.
161.27The 2011 appropriation includes $369,000 for 2010 and $3,431,000 for 2011.
161.28    Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
161.29section 119A.52:
161.30
$
20,100,000
.....
2010
161.31
$
20,100,000
.....
2011
161.32Any balance in the first year does not cancel but is available in the second year.
162.1    Subd. 6. Educate parents partnership. For the educate parents partnership under
162.2Minnesota Statutes, section 124D.129:
162.3
$
50,000
.....
2010
162.4
$
50,000
.....
2011
162.5Any balance in the first year does not cancel but is available in the second year.
162.6    Subd. 7. Kindergarten entrance assessment initiative and intervention
162.7program. For the kindergarten entrance assessment initiative and intervention program
162.8under Minnesota Statutes, section 124D.162:
162.9
$
287,000
.....
2010
162.10
$
287,000
.....
2011
162.11Any balance in the first year does not cancel but is available in the second year.
162.12    Subd. 8. Community education aid. For community education aid under
162.13Minnesota Statutes, section 124D.20:
162.14
$
585,000
.....
2010
162.15
$
467,000
.....
2011
162.16The 2010 appropriation includes $73,000 for 2009 and $512,000 for 2010.
162.17The 2011 appropriation included $56,000 for 2010 and $411,000 for 2011.
162.18    Subd. 9. Adults with disabilities program aid. For adults with disabilities
162.19programs under Minnesota Statutes, section 124D.56:
162.20
$
710,000
.....
2010
162.21
$
710,000
.....
2011
162.22The 2010 appropriation includes $71,000 for 2009 and $639,000 for 2010.
162.23The 2011 appropriation includes $71,000 for 2010 and $639,000 for 2011.
162.24    Subd. 10. Hearing-impaired adults. For programs for hearing-impaired adults
162.25under Minnesota Statutes, section 124D.57:
162.26
$
70,000
.....
2010
162.27
$
70,000
.....
2011
162.28    Subd. 11. School-age care revenue. For extended day aid under Minnesota
162.29Statutes, section 124D.22:
162.30
$
1,000
.....
2010
162.31
$
1,000
.....
2011
162.32The 2010 appropriation includes $0 for 2009 and $1,000 for 2010.
162.33The 2011 appropriation includes $0 for 2010 and $1,000 for 2011.
163.1    Subd. 12. Adult basic education aid. For adult basic education aid under
163.2Minnesota Statutes, section 124D.531:
163.3
$
42,975,000
.....
2010
163.4
$
44,258,000
.....
2011
163.5The 2010 appropriation includes $4,187,000 for 2009 and $38,788,000 for 2010.
163.6The 2011 appropriation includes $4,309,000 for 2010 and $39,949,000 for 2011.
163.7    Subd. 13. GED tests. For payment of 60 percent of the costs of GED tests under
163.8Minnesota Statutes, section 124D.55:
163.9
$
125,000
.....
2010
163.10
$
125,000
.....
2011
163.11Any balance in the first year does not cancel but is available in the second year.

163.12    Sec. 12. REPEALER.
163.13Minnesota Statutes 2008, section 121A.27, is repealed.

163.14ARTICLE 7
163.15STATE AGENCIES

163.16    Section 1. Minnesota Statutes 2008, section 125A.62, subdivision 8, is amended to
163.17read:
163.18    Subd. 8. Grants and gifts. The board, through the chief administrators of the
163.19academies, may apply for all competitive grants administered by agencies of the state and
163.20other government or nongovernment sources. Application may not be made for grants
163.21over which the board has discretion. Any funds received under this subdivision are
163.22appropriated and dedicated for the purpose for which they are granted. The board must
163.23annually by February 1 report to the education policy and finance committees of the
163.24legislature the amount of money it received under this subdivision and the purpose for
163.25which it was granted.

163.26    Sec. 2. Minnesota Statutes 2008, section 127A.08, is amended by adding a subdivision
163.27to read:
163.28    Subd. 5. Grants and gifts. The commissioner may apply for and receive grants
163.29and gifts administered by agencies of the state and other government or nongovernment
163.30sources. Any money received is hereby appropriated and dedicated for the purpose for
163.31which it is granted.
164.1The commissioner must annually report to the education policy and finance
164.2committees of the legislature by February 15 a list of all grants and gifts received and
164.3applied for under this subdivision.

164.4    Sec. 3. APPROPRIATIONS.
164.5    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
164.6indicated in this section are appropriated from the general fund to the Department of
164.7Education for the fiscal years designated.
164.8    Subd. 2. Department. (a) For the Department of Education:
164.9
$
20,943,000
.....
2010
164.10
$
20,943,000
.....
2011
164.11Any balance in the first year does not cancel but is available in the second year.
164.12(b) $260,000 each year is for the Minnesota Children's Museum.
164.13(c) $41,000 each year is for the Minnesota Academy of Science.
164.14(d) $632,000 each year is for the Board of Teaching. Any balance in the first year
164.15does not cancel but is available in the second year.
164.16(e) $171,000 each year is for the Board of School Administrators. Any balance in
164.17the first year does not cancel but is available in the second year.
164.18(f) $40,000 each year is for an early hearing loss intervention coordinator under
164.19Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
164.20funds to employ a hearing loss coordinator under Minnesota Statutes, section 125A.63,
164.21subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
164.22employing a world languages coordinator.
164.23(g) $50,000 each year is for the Duluth Children's Museum.
164.24(h) None of the amounts appropriated under this subdivision may be used for
164.25Minnesota's Washington, D.C., office.
164.26(i) The expenditures of federal grants and aids as shown in the biennial budget
164.27document and its supplements are approved and appropriated and shall be spent as
164.28indicated. The commissioner must provide, to the K-12 Education Finance Division in
164.29the house of representatives and the E-12 Budget Division in the senate, details about the
164.30distribution of state incentive grants, education technology state grants, teacher incentive
164.31funds, and statewide data system funds as outlined in the supplemental federal funds
164.32submission dated March 25, 2009.
164.33    Subd. 3. Board of Teaching; licensure by portfolio. For the Board of Teaching
164.34for licensure by portfolio:
165.1
$
30,000
.....
2010
165.2
$
30,000
.....
2011
165.3This appropriation is from the education licensure portfolio account of the special
165.4revenue fund.

165.5    Sec. 4. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
165.6The sums indicated in this section are appropriated from the general fund to the
165.7Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
165.8
$
11,912,000
.....
2010
165.9
$
11,912,000
.....
2011
165.10Any balance in the first year does not cancel but is available in the second year.

165.11    Sec. 5. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
165.12The sums indicated in this section are appropriated from the general fund to the
165.13Perpich Center for Arts Education for the fiscal years designated:
165.14
$
7,087,000
.....
2010
165.15
$
7,087,000
.....
2011
165.16Any balance in the first year does not cancel but is available in the second year.

165.17ARTICLE 8
165.18PUPIL TRANSPORTATION

165.19    Section 1. Minnesota Statutes 2008, section 123B.92, subdivision 1, is amended to read:
165.20    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
165.21terms defined in this subdivision have the meanings given to them.
165.22    (a) "Actual expenditure per pupil transported in the regular and excess transportation
165.23categories" means the quotient obtained by dividing:
165.24    (1) the sum of:
165.25    (i) all expenditures for transportation in the regular category, as defined in paragraph
165.26(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
165.27    (ii) an amount equal to one year's depreciation on the district's school bus fleet
165.28and mobile units computed on a straight line basis at the rate of 15 percent per year for
165.29districts operating a program under section 124D.128 for grades 1 to 12 for all students in
165.30the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
165.31    (iii) an amount equal to one year's depreciation on the district's type three school
165.32buses III vehicles, as defined in section 169.011, subdivision 71, clause (5), which must be
166.1used a majority of the time for pupil transportation purposes, computed on a straight line
166.2basis at the rate of 20 percent per year of the cost of the type three school buses by:
166.3    (2) the number of pupils eligible for transportation in the regular category, as defined
166.4in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
166.5    (b) "Transportation category" means a category of transportation service provided to
166.6pupils as follows:
166.7    (1) Regular transportation is:
166.8    (i) transportation to and from school during the regular school year for resident
166.9elementary pupils residing one mile or more from the public or nonpublic school they
166.10attend, and resident secondary pupils residing two miles or more from the public
166.11or nonpublic school they attend, excluding desegregation transportation and noon
166.12kindergarten transportation; but with respect to transportation of pupils to and from
166.13nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
166.14    (ii) transportation of resident pupils to and from language immersion programs;
166.15    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
166.16the pupil's home and the child care provider and between the provider and the school, if
166.17the home and provider are within the attendance area of the school;
166.18    (iv) transportation to and from or board and lodging in another district, of resident
166.19pupils of a district without a secondary school; and
166.20    (v) transportation to and from school during the regular school year required under
166.21subdivision 3 for nonresident elementary pupils when the distance from the attendance
166.22area border to the public school is one mile or more, and for nonresident secondary pupils
166.23when the distance from the attendance area border to the public school is two miles or
166.24more, excluding desegregation transportation and noon kindergarten transportation.
166.25    For the purposes of this paragraph, a district may designate a licensed day care
166.26facility, school day care facility, respite care facility, the residence of a relative, or the
166.27residence of a person chosen by the pupil's parent or guardian as the home of a pupil for
166.28part or all of the day, if requested by the pupil's parent or guardian, and if that facility or
166.29residence is within the attendance area of the school the pupil attends.
166.30    (2) Excess transportation is:
166.31    (i) transportation to and from school during the regular school year for resident
166.32secondary pupils residing at least one mile but less than two miles from the public or
166.33nonpublic school they attend, and transportation to and from school for resident pupils
166.34residing less than one mile from school who are transported because of extraordinary
166.35traffic, drug, or crime hazards; and
167.1    (ii) transportation to and from school during the regular school year required under
167.2subdivision 3 for nonresident secondary pupils when the distance from the attendance area
167.3border to the school is at least one mile but less than two miles from the public school
167.4they attend, and for nonresident pupils when the distance from the attendance area border
167.5to the school is less than one mile from the school and who are transported because of
167.6extraordinary traffic, drug, or crime hazards.
167.7    (3) Desegregation transportation is transportation within and outside of the district
167.8during the regular school year of pupils to and from schools located outside their normal
167.9attendance areas under a plan for desegregation mandated by the commissioner or under
167.10court order.
167.11    (4) "Transportation services for pupils with disabilities" is:
167.12    (i) transportation of pupils with disabilities who cannot be transported on a regular
167.13school bus between home or a respite care facility and school;
167.14    (ii) necessary transportation of pupils with disabilities from home or from school to
167.15other buildings, including centers such as developmental achievement centers, hospitals,
167.16and treatment centers where special instruction or services required by sections 125A.03
167.17to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
167.18where services are provided;
167.19    (iii) necessary transportation for resident pupils with disabilities required by sections
167.20125A.12 , and 125A.26 to 125A.48;
167.21    (iv) board and lodging for pupils with disabilities in a district maintaining special
167.22classes;
167.23    (v) transportation from one educational facility to another within the district for
167.24resident pupils enrolled on a shared-time basis in educational programs, and necessary
167.25transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
167.26with disabilities who are provided special instruction and services on a shared-time basis
167.27or if resident pupils are not transported, the costs of necessary travel between public
167.28and private schools or neutral instructional sites by essential personnel employed by the
167.29district's program for children with a disability;
167.30    (vi) transportation for resident pupils with disabilities to and from board and lodging
167.31facilities when the pupil is boarded and lodged for educational purposes; and
167.32(vii) services described in clauses (i) to (vi), when provided for pupils with
167.33disabilities in conjunction with a summer instructional program that relates to the pupil's
167.34individual education plan or in conjunction with a learning year program established
167.35under section 124D.128.
168.1    For purposes of computing special education initial aid under section 125A.76,
168.2subdivision 2
, the cost of providing transportation for children with disabilities includes
168.3(A) the additional cost of transporting a homeless student from a temporary nonshelter
168.4home in another district to the school of origin, or a formerly homeless student from a
168.5permanent home in another district to the school of origin but only through the end of the
168.6academic year; and (B) depreciation on district-owned school buses purchased after July 1,
168.72005, and used primarily for transportation of pupils with disabilities, calculated according
168.8to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
168.9transportation category must be excluded in calculating the actual expenditure per pupil
168.10transported in the regular and excess transportation categories according to paragraph (a).
168.11    (5) "Nonpublic nonregular transportation" is:
168.12    (i) transportation from one educational facility to another within the district for
168.13resident pupils enrolled on a shared-time basis in educational programs, excluding
168.14transportation for nonpublic pupils with disabilities under clause (4);
168.15    (ii) transportation within district boundaries between a nonpublic school and a
168.16public school or a neutral site for nonpublic school pupils who are provided pupil support
168.17services pursuant to section 123B.44; and
168.18    (iii) late transportation home from school or between schools within a district for
168.19nonpublic school pupils involved in after-school activities.
168.20    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
168.21educational programs and services, including diagnostic testing, guidance and counseling
168.22services, and health services. A mobile unit located off nonpublic school premises is a
168.23neutral site as defined in section 123B.41, subdivision 13.
168.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

168.25    Sec. 2. Minnesota Statutes 2008, section 169.011, subdivision 71, is amended to read:
168.26    Subd. 71. School bus. (a) "School bus" means a motor vehicle used to transport
168.27pupils to or from a school defined in section 120A.22, or to or from school-related
168.28activities, by the school or a school district, or by someone under an agreement with the
168.29school or a school district. A school bus does not include a motor vehicle transporting
168.30children to or from school for which parents or guardians receive direct compensation
168.31from a school district, a motor coach operating under charter carrier authority, a transit
168.32bus providing services as defined in section 174.22, subdivision 7, a multifunction school
168.33activity bus as defined by federal motor vehicle safety standards, or a vehicle otherwise
168.34qualifying as a type III vehicle under paragraph (5) clause (6), when the vehicle is properly
169.1registered and insured and being driven by an employee or agent of a school district for
169.2nonscheduled or nonregular transportation.
169.3(b) A school bus may be type A, type B, type C, or type D, multifunction school
169.4activity bus, or type III as follows: provided in paragraphs (c) to (h).
169.5(1) (c) A "type A school bus" is a van conversion or bus constructed utilizing a
169.6cutaway front section vehicle with a left-side driver's door. The entrance door is behind the
169.7front wheels. This definition includes two classifications: type A-I, with a gross vehicle
169.8weight rating (GVWR) less than or equal to 10,000 14,500 pounds; and type A-II, with a
169.9GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
169.10(2) (d) A "type B school bus" is constructed utilizing a stripped chassis. The
169.11entrance door is behind the front wheels. This definition includes two classifications: type
169.12B-I, with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR
169.13greater than 10,000 pounds.
169.14(3) (e) A "type C school bus" is constructed utilizing a chassis with a hood and front
169.15fender assembly. The entrance door is behind the front wheels. A "type C school bus" also
169.16includes a cutaway truck chassis or truck chassis with cab, with or without a left side door,
169.17and with a GVWR greater than 21,500 pounds.
169.18(4) (f) A "type D school bus" is constructed utilizing a stripped chassis. The entrance
169.19door is ahead of the front wheels.
169.20(5) (g) A "multifunction school activity bus" is a school bus that meets the definition
169.21of a multifunction school activity bus in Code of Federal Regulations, title 49, section
169.22571.3. A vehicle that meets the definition of a type III vehicle is not a multifunction
169.23school activity bus.
169.24(h) A "Type III vehicles are vehicle" is restricted to passenger cars, station wagons,
169.25vans, and buses having a maximum manufacturer's rated seating capacity of ten or fewer
169.26people, including the driver, and a gross vehicle weight rating of 10,000 pounds or
169.27less. In this subdivision, "gross vehicle weight rating" means the value specified by the
169.28manufacturer as the loaded weight of a single vehicle. A "type III vehicle" must not be
169.29outwardly equipped and identified as a type A, B, C, or D school bus or type A, B, C, or D
169.30Head Start bus. A van or bus converted to a seating capacity of ten or fewer and placed in
169.31service on or after August 1, 1999, must have been originally manufactured to comply
169.32with the passenger safety standards.
169.33(i) In this subdivision, "gross vehicle weight rating" means the value specified by
169.34the manufacturer as the loaded weight of a single vehicle.
169.35EFFECTIVE DATE.This section is effective July 1, 2009.

170.1    Sec. 3. Minnesota Statutes 2008, section 169.443, subdivision 9, is amended to read:
170.2    Subd. 9. Personal cellular phone call prohibition. (a) As used in this subdivision,
170.3"school bus" has the meaning given in section 169.011, subdivision 71. In addition, the
170.4term includes type III vehicles as described defined in section 169.011, subdivision 71,
170.5clause (5), when driven by employees or agents of school districts.
170.6    (b) A school bus driver may not operate a school bus while communicating over, or
170.7otherwise operating, a cellular phone for personal reasons, whether handheld or hands
170.8free, when the vehicle is in motion.

170.9    Sec. 4. Minnesota Statutes 2008, section 169.4501, subdivision 1, is amended to read:
170.10    Subdivision 1. National standards adopted. Except as provided in sections
170.11169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
170.12D and multifunctional school buses and multifunction school activity bus school buses
170.13used for the transportation of school children shall meet the requirements of the "bus
170.14chassis standards" and "bus body standards" in the 2005 edition of the "National School
170.15Transportation Specifications and Procedures" adopted by the National Congress on
170.16School Transportation. Except as provided in section 169.4504, the construction, design,
170.17and equipment of types A, B, C, D and multifunctional school buses and multifunction
170.18school activity bus school buses used for the transportation of students with disabilities
170.19also shall meet the requirements of the "specially equipped school bus standards" in the
170.202005 National School Transportation Specifications and Procedures. The "bus chassis
170.21standards," "bus body standards," and "specially equipped school bus standards" sections
170.22of the 2005 edition of the "National School Transportation Specifications and Procedures"
170.23are incorporated by reference in this chapter.

170.24    Sec. 5. Minnesota Statutes 2008, section 169.4503, subdivision 20, is amended to read:
170.25    Subd. 20. Seat and crash barriers. (a) All restraining barriers and passenger seats
170.26shall be covered with a material that has fire retardant or fire block characteristics.
170.27    (b) All seats must have a minimum cushion depth of 15 inches and a seat back
170.28height of at least 20 inches above the seating reference point, and beginning October 21,
170.292009, must also conform to the Federal Motor Vehicle Safety Standard in Code of Federal
170.30Regulations, title 49, section 571.222.

170.31    Sec. 6. Minnesota Statutes 2008, section 169.4503, is amended by adding a subdivision
170.32to read:
171.1    Subd. 27. Tailpipe. (a) The tailpipe must not extend more than two inches beyond
171.2the perimeter of the body for a side-exit pipe or beyond the bumper for a rear-exit pipe.
171.3(b) The tailpipe must exit either in the rear of the vehicle or to the left side of the bus
171.4in front of or behind the rear drive axle. The tailpipe exit location on all type A-I or B-I
171.5buses must be in accordance with the manufacturer's standards. The tailpipe must not exit
171.6beneath any fuel filler location or beneath any emergency door.
171.7EFFECTIVE DATE.This section is effective the day following final enactment
171.8and applies retroactive to December 31, 2007, through January 1, 2012.

171.9    Sec. 7. Minnesota Statutes 2008, section 169.454, subdivision 13, is amended to read:
171.10    Subd. 13. Exemption. When a vehicle otherwise qualifying as a type III vehicle
171.11under section 169.011, subdivision 71, clause (5), whether owned and operated by a
171.12school district or privately owned and operated, is used to transport school children in a
171.13nonscheduled situation, it shall be exempt from the vehicle requirements of this section
171.14and the licensing requirements of section 171.321, if the vehicle is properly registered
171.15and insured and operated by an employee or agent of a school district with a valid driver's
171.16license.

171.17    Sec. 8. Minnesota Statutes 2008, section 169A.03, subdivision 23, is amended to read:
171.18    Subd. 23. School bus. "School bus" has the meaning given in section 169.011,
171.19subdivision 71
. In addition, the term includes type III vehicles as described defined in
171.20section 169.011, subdivision 71, clause (5), when driven by employees or agents of school
171.21districts.

171.22    Sec. 9. Minnesota Statutes 2008, section 171.01, subdivision 22, is amended to read:
171.23    Subd. 22. Commercial motor vehicle. "Commercial motor vehicle" means a motor
171.24vehicle or combination of motor vehicles used to transport passengers or property if
171.25the motor vehicle:
171.26(1) has a gross vehicle weight of more than 26,000 pounds;
171.27(2) has a towed unit with a gross vehicle weight of more than 10,000 pounds and the
171.28combination of vehicles has a combined gross vehicle weight of more than 26,000 pounds;
171.29(3) is a bus;
171.30(4) is of any size and is used in the transportation of hazardous materials that are
171.31required to be placarded under Code of Federal Regulations, title 49, parts 100-185; or
171.32(5) is outwardly equipped and identified as a school bus, except for type III vehicles
171.33defined in section 169.011, subdivision 71, clause (5).

172.1    Sec. 10. Minnesota Statutes 2008, section 171.02, subdivision 2, is amended to read:
172.2    Subd. 2. Driver's license classifications, endorsements, exemptions. (a) Drivers'
172.3licenses are classified according to the types of vehicles that may be driven by the holder
172.4of each type or class of license. The commissioner may, as appropriate, subdivide the
172.5classes listed in this subdivision and issue licenses classified accordingly.
172.6    (b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no
172.7class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer
172.8or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless
172.9so endorsed. There are four general classes of licenses as described in paragraphs (c)
172.10through (f).
172.11    (c) Class D drivers' licenses are valid for:
172.12    (1) operating all farm trucks if the farm truck is:
172.13    (i) controlled and operated by a farmer, including operation by an immediate family
172.14member or an employee of the farmer;
172.15    (ii) used to transport agricultural products, farm machinery, or farm supplies,
172.16including hazardous materials, to or from a farm;
172.17    (iii) not used in the operations of a common or contract motor carrier as governed by
172.18Code of Federal Regulations, title 49, part 365; and
172.19    (iv) used within 150 miles of the farm;
172.20    (2) notwithstanding paragraph (b), operating an authorized emergency vehicle, as
172.21defined in section 169.011, subdivision 3, whether or not in excess of 26,000 pounds
172.22gross vehicle weight;
172.23    (3) operating a recreational vehicle as defined in section 168.002, subdivision 27,
172.24that is operated for personal use;
172.25    (4) operating all single-unit vehicles except vehicles with a gross vehicle weight of
172.26more than 26,000 pounds, vehicles designed to carry more than 15 passengers including
172.27the driver, and vehicles that carry hazardous materials;
172.28    (5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional
172.29multifunction school activity bus without a school bus endorsement if:
172.30    (i) the bus has a gross vehicle weight of 10,000 pounds or less;
172.31    (ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
172.32    (iii) the requirements of subdivision 2a are satisfied, as determined by the
172.33commissioner;
172.34    (6) operating any vehicle or combination of vehicles when operated by a licensed
172.35peace officer while on duty; and
172.36    (7) towing vehicles if:
173.1    (i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or
173.2    (ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and
173.3the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.
173.4    (d) Class C drivers' licenses are valid for:
173.5    (1) operating class D motor vehicles;
173.6    (2) with a hazardous materials endorsement, operating class D vehicles to transport
173.7hazardous materials;
173.8    (3) with a passenger endorsement, operating buses; and
173.9    (4) with a passenger endorsement and school bus endorsement, operating school
173.10buses.
173.11    (e) Class B drivers' licenses are valid for:
173.12    (1) operating all class C motor vehicles, class D motor vehicles, and all other
173.13single-unit motor vehicles including, with a passenger endorsement, buses; and
173.14    (2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.
173.15    (f) Class A drivers' licenses are valid for operating any vehicle or combination of
173.16vehicles.

173.17    Sec. 11. Minnesota Statutes 2008, section 171.02, subdivision 2a, is amended to read:
173.18    Subd. 2a. Exception for certain school bus drivers. Notwithstanding subdivision
173.192, paragraph (c) (b), the holder of a class D driver's license, without a school bus
173.20endorsement, may operate a type A school bus described in subdivision 2, paragraph (b),
173.21or a multifunction school activity bus under the following conditions:
173.22    (a) The operator is an employee of the entity that owns, leases, or contracts for the
173.23school bus and is not solely hired to provide transportation services under this subdivision.
173.24    (b) The operator drives the school bus only from points of origin to points of
173.25destination, not including home-to-school trips to pick up or drop off students.
173.26    (c) The operator is prohibited from using the eight-light system. Violation of this
173.27paragraph is a misdemeanor.
173.28    (d) The operator's employer has adopted and implemented a policy that provides for
173.29annual training and certification of the operator in:
173.30    (1) safe operation of the type of school bus the operator will be driving;
173.31    (2) understanding student behavior, including issues relating to students with
173.32disabilities;
173.33    (3) encouraging orderly conduct of students on the bus and handling incidents of
173.34misconduct appropriately;
174.1    (4) knowing and understanding relevant laws, rules of the road, and local school
174.2bus safety policies;
174.3    (5) handling emergency situations; and
174.4    (6) safe loading and unloading of students.
174.5    (e) A background check or background investigation of the operator has been
174.6conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
174.7for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321,
174.8subdivision 3
, for all other persons operating a type A school bus under this subdivision.
174.9    (f) Operators shall submit to a physical examination as required by section 171.321,
174.10subdivision 2
.
174.11    (g) The operator's driver's license is verified annually by the entity that owns, leases,
174.12or contracts for the school bus.
174.13    (h) A person who sustains a conviction, as defined under section 609.02, of violating
174.14section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute
174.15or ordinance of another state is precluded from operating a school bus for five years
174.16from the date of conviction.
174.17    (i) A person who has ever been convicted of a disqualifying offense as defined in
174.18section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this
174.19subdivision.
174.20    (j) A person who sustains a conviction, as defined under section 609.02, of a fourth
174.21moving offense in violation of chapter 169 is precluded from operating a school bus for
174.22one year from the date of the last conviction.
174.23    (k) Students riding the school bus must have training required under section
174.24123B.90, subdivision 2 .
174.25    (l) An operator must be trained in the proper use of child safety restraints as set
174.26forth in the National Highway Traffic Safety Administration's "Guideline for the Safe
174.27Transportation of Pre-school Age Children in School Buses," if child safety restraints are
174.28used by the passengers.
174.29    (m) Annual certification of the requirements listed in this subdivision must be
174.30maintained under separate file at the business location for each operator licensed under
174.31this subdivision and subdivision 2, paragraph (b), clause (5). The business manager,
174.32school board, governing body of a nonpublic school, or any other entity that owns,
174.33leases, or contracts for the school bus operating under this subdivision is responsible
174.34for maintaining these files for inspection.
174.35    (n) The school bus must bear a current certificate of inspection issued under section
174.36169.451 .
175.1    (o) If the word "School" appears on the front and rear of the bus, the word "School"
175.2must be covered by a sign that reads "Activities" when the bus is being operated under
175.3authority of this subdivision.
175.4(p) The type A-I school bus or multifunction school activity bus is designed to
175.5transport 15 or fewer passengers, including the driver.
175.6(q) The school bus or multifunction school activity bus has a gross vehicle weight
175.7rating of 14,500 pounds or less.
175.8EFFECTIVE DATE.This section is effective July 1, 2010.

175.9    Sec. 12. Minnesota Statutes 2008, section 171.321, subdivision 1, is amended to read:
175.10    Subdivision 1. Endorsement. No person shall drive a school bus when transporting
175.11school children to or from school or upon a school-related trip or activity without having a
175.12valid class A, class B, or class C driver's license with a school bus endorsement except
175.13that a person possessing a valid driver's license but not a school bus endorsement may
175.14drive a type III vehicle or a school bus, subject to the requirements of section 171.02,
175.15subdivisions 2, 2a, and 2b.

175.16    Sec. 13. Minnesota Statutes 2008, section 171.321, subdivision 4, is amended to read:
175.17    Subd. 4. Training. (a) No person shall drive a class A, B, C, or D school bus when
175.18transporting school children to or from school or upon a school-related trip or activity
175.19without having demonstrated sufficient skills and knowledge to transport students in
175.20a safe and legal manner.
175.21    (b) A bus driver must have training or experience that allows the driver to meet at
175.22least the following competencies:
175.23    (1) safely operate the type of school bus the driver will be driving;
175.24    (2) understand student behavior, including issues relating to students with
175.25disabilities;
175.26    (3) encourage orderly conduct of students on the bus and handle incidents of
175.27misconduct appropriately;
175.28    (4) know and understand relevant laws, rules of the road, and local school bus
175.29safety policies;
175.30    (5) handle emergency situations; and
175.31    (6) safely load and unload students.
175.32    (c) The commissioner of public safety shall develop a comprehensive model
175.33school bus driver training program and model assessments for school bus driver training
175.34competencies, which are not subject to chapter 14. A school district, nonpublic school, or
176.1private contractor may use alternative assessments for bus driver training competencies
176.2with the approval of the commissioner of public safety. A driver may receive at least eight
176.3hours of school bus in-service training any year, as an alternative to being assessed for bus
176.4driver competencies after the initial year of being assessed for bus driver competencies.
176.5The employer shall keep the assessment or a record of the in-service training for the
176.6current period available for inspection by representatives of the commissioner.
176.7(d) A school district, nonpublic school, or private contractor shall provide in-service
176.8training annually to each school bus driver.

176.9    Sec. 14. Minnesota Statutes 2008, section 171.321, subdivision 5, is amended to read:
176.10    Subd. 5. Annual evaluation and license verification. (a) A school district,
176.11nonpublic school, or private contractor shall provide in-service training annually to each
176.12school bus driver. For purposes of this section, "annually" means at least once every
176.13380 days from the initial or previous evaluation and at least once every 380 days from
176.14the initial or previous license verification.
176.15(b) A school district, nonpublic school, or private contractor shall annually verify
176.16with the National Driver Register or with the Department of Public Safety the validity of
176.17the driver's license of each employee who regularly transports students for the district in:
176.18(1) a type A school bus, a type B school bus, a type C school bus, or type D school bus,; (2)
176.19a multifunction school activity bus; or regularly transports students for the district in (3) a
176.20type III vehicle with the National Driver Register or with the Department of Public Safety.
176.21EFFECTIVE DATE.This section is effective July 1, 2010.

176.22ARTICLE 9
176.23FORECAST ADJUSTMENTS
176.24A. GENERAL EDUCATION

176.25    Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, as amended by
176.26Laws 2008, chapter 363, article 3, section 1, is amended to read:
176.27    Subd. 2. General education aid. For general education aid under Minnesota
176.28Statutes, section 126C.13, subdivision 4:
176.29
$
5,600,647,000
.....
2008
176.30
176.31
$
5,649,098,000
5,644,263,000
.....
2009
176.32    The 2008 appropriation includes $536,251,000 for 2007 and $5,064,396,000 for
176.332008.
177.1    The 2009 appropriation includes $543,752,000 $533,760,000 for 2008 and
177.2$5,105,346,000 $5,110,503,000 for 2009.

177.3    Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 4, as amended by
177.4Laws 2008, chapter 363, article 3, section 3, is amended to read:
177.5    Subd. 4. Enrollment options transportation. For transportation of pupils attending
177.6postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
177.7of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
177.8
$
48,000
.....
2008
177.9
$
50,00045,000
.....
2009

177.10    Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 5, as amended by
177.11Laws 2008, chapter 363, article 3, section 4, is amended to read:
177.12    Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
177.13127A.49 :
177.14
$
1,333,000
.....
2008
177.15
177.16
$
1,629,000
1,407,000
.....
2009
177.17    The 2008 appropriation includes $76,000 for 2007 and $1,257,000 for 2008.
177.18    The 2009 appropriation includes $139,000 for 2008 and $1,490,000 $1,268,000
177.19for 2009.

177.20    Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 6, as amended by
177.21Laws 2008, chapter 363, article 3, section 5, is amended to read:
177.22    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
177.23Statutes, section 123A.485:
177.24
$
240,000
.....
2008
177.25
$
339,00021,000
.....
2009
177.26    The 2008 appropriation includes $43,000 for 2007 and $197,000 for 2008.
177.27    The 2009 appropriation includes $21,000 for 2008 and $318,000 $0 for 2009.

177.28    Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 7, as amended by
177.29Laws 2008, chapter 363, article 3, section 6, is amended to read:
177.30    Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
177.31Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:
178.1
$
15,601,000
.....
2008
178.2
178.3
$
16,608,000
16,271,000
.....
2009
178.4    The 2008 appropriation includes $1,214,000 for 2007 and $14,387,000 for 2008.
178.5    The 2009 appropriation includes $1,598,000 $1,439,000 for 2008 and $15,010,000
178.6$14,832,000 for 2009.

178.7    Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 8, as amended by
178.8Laws 2008, chapter 363, article 3, section 7, is amended to read:
178.9    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
178.10under Minnesota Statutes, section 123B.92, subdivision 9:
178.11
$
20,755,000
.....
2008
178.12
178.13
$
21,007,000
20,739,000
.....
2009
178.14    The 2008 appropriation includes $2,124,000 for 2007 and $18,631,000 for 2008.
178.15    The 2009 appropriation includes $2,070,000 $2,037,000 for 2008 and $18,937,000
178.16$18,702,000 for 2009.
178.17B. EDUCATION EXCELLENCE

178.18    Sec. 7. Laws 2007, chapter 146, article 2, section 46, subdivision 2, as amended by
178.19Laws 2008, chapter 363, article 3, section 8, is amended to read:
178.20    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
178.21Statutes, section 124D.11, subdivision 4:
178.22
$
32,817,000
.....
2008
178.23
178.24
$
37,527,000
36,605,000
.....
2009
178.25    The 2008 appropriation includes $2,814,000 for 2007 and $30,003,000 for 2008.
178.26    The 2009 appropriation includes $3,333,000 $3,264,000 for 2008 and $34,194,000
178.27$33,341,000 for 2009.

178.28    Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 3, as amended by
178.29Laws 2008, chapter 363, article 3, section 9, is amended to read:
178.30    Subd. 3. Charter school startup cost aid. For charter school startup cost aid
178.31under Minnesota Statutes, section 124D.11:
178.32
$
1,801,000
.....
2008
178.33
178.34
$
1,987,000
1,982,000
.....
2009
179.1    The 2008 appropriation includes $239,000 for 2007 and $1,562,000 for 2008.
179.2    The 2009 appropriation includes $173,000 $162,000 for 2008 and $1,814,000
179.3$1,820,000 for 2009.

179.4    Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 4, as amended by
179.5Laws 2008, chapter 363, article 3, section 10, is amended to read:
179.6    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
179.7124D.86, subdivision 5 :
179.8
$
59,036,000
.....
2008
179.9
179.10
$
62,448,000
60,826,000
.....
2009
179.11    The 2008 appropriation includes $5,824,000 for 2007 and $53,212,000 for 2008.
179.12    The 2009 appropriation includes $5,912,000 $5,833,000 for 2008 and $56,536,000
179.13$54,993,000 for 2009.

179.14    Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 6, as amended by
179.15Laws 2008, chapter 363, article 3, section 11, is amended to read:
179.16    Subd. 6. Interdistrict desegregation or integration transportation grants. For
179.17interdistrict desegregation or integration transportation grants under Minnesota Statutes,
179.18section 124D.87:
179.19
$
9,901,000
.....
2008
179.20
179.21
$
11,881,000
11,947,000
.....
2009

179.22    Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 9, as amended by
179.23Laws 2008, chapter 363, article 3, section 12, is amended to read:
179.24    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
179.25Statutes, section 124D.83:
179.26
$
2,207,000
.....
2008
179.27
179.28
$
2,392,000
1,844,000
.....
2009
179.29    The 2008 appropriation includes $204,000 for 2007 and $2,003,000 for 2008.
179.30    The 2009 appropriation includes $222,000 $122,000 for 2008 and $2,170,000
179.31$1,722,000 for 2009.
179.32C. SPECIAL EDUCATION

180.1    Sec. 12. Laws 2007, chapter 146, article 3, section 24, subdivision 3, as amended by
180.2Laws 2008, chapter 363, article 3, section 13, is amended to read:
180.3    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
180.4section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
180.5within the district boundaries for whom no district of residence can be determined:
180.6
$
2,086,000
.....
2008
180.7
180.8
$
2,282,000
1,556,000
.....
2009
180.9    If the appropriation for either year is insufficient, the appropriation for the other
180.10year is available.

180.11    Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 4, as amended by
180.12Laws 2008, chapter 363, article 3, section 14, is amended to read:
180.13    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
180.14services under Minnesota Statutes, section 125A.75, subdivision 1:
180.15
$
207,000
.....
2008
180.16
$
227,000237,000
.....
2009
180.17    The 2008 appropriation includes $22,000 for 2007 and $185,000 for 2008.
180.18    The 2009 appropriation includes $20,000 $21,000 for 2008 and $207,000 $216,000
180.19for 2009.

180.20    Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 7, is amended to
180.21read:
180.22    Subd. 7. Court-placed special education revenue. For reimbursing serving
180.23school districts for unreimbursed eligible expenditures attributable to children placed in
180.24the serving school district by court action under Minnesota Statutes, section 125A.79,
180.25subdivision 4
:
180.26
$
72,000
.....
2008
180.27
$
74,000
.....
2009
180.28D. FACILITIES AND TECHNOLOGY

180.29    Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, as amended by
180.30Laws 2008, chapter 363, article 3, section 15, is amended to read:
180.31    Subd. 2. Health and safety revenue. For health and safety aid according to
180.32Minnesota Statutes, section 123B.57, subdivision 5:
181.1
$
254,000
.....
2008
181.2
$
103,000119,000
.....
2009
181.3    The 2008 appropriation includes $20,000 for 2007 and $234,000 for 2008.
181.4    The 2009 appropriation includes $26,000 $23,000 for 2008 and $77,000 $96,000
181.5for 2009.

181.6    Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 6, as amended by
181.7Laws 2008, chapter 363, article 3, section 17, is amended to read:
181.8    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
181.9Minnesota Statutes, section 123B.591, subdivision 4:
181.10
$
3,232,000
.....
2008
181.11
181.12
$
2,627,000
2,720,000
.....
2009
181.13    The 2008 appropriation includes $0 for 2007 and $3,232,000 for 2008.
181.14    The 2009 appropriation includes $359,000 $371,000 for 2008 and $2,268,000
181.15$2,349,000 for 2009.

181.16    Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 8, as amended by
181.17Laws 2008, chapter 363, article 3, section 18, is amended to read:
181.18    Subd. 8. School technology and operating capital aid grants. For school
181.19technology and operating capital grants under section 11:
181.20
$
38,236,000
.....
2008
181.21
181.22
$
52,454,000
52,254,000
.....
2009
181.23    This is a onetime appropriation.
181.24E. NUTRITION

181.25    Sec. 18. Laws 2007, chapter 146, article 5, section 13, subdivision 2, as amended by
181.26Laws 2008, chapter 363, article 3, section 19, is amended to read:
181.27    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
181.28section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
181.29
$
12,094,000
.....
2008
181.30
181.31
$
12,394,000
12,298,000
.....
2009

182.1    Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 3, as amended by
182.2Laws 2008, chapter 363, article 2, section 40, is amended to read:
182.3    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
182.4breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
182.5124D.118 :
182.6
$
5,583,000
.....
2008
182.7
182.8
$
6,396,000
5,801,000
.....
2009
182.9The 2009 appropriation includes $4,725,000 for traditional school breakfast and
182.10$1,076,000 for kindergarten milk.
182.11F. EARLY CHILDHOOD EDUCATION

182.12    Sec. 20. Laws 2007, chapter 146, article 9, section 17, subdivision 2, as amended by
182.13Laws 2008, chapter 363, article 3, section 21, is amended to read:
182.14    Subd. 2. Early childhood family education aid. For early childhood family
182.15education aid under Minnesota Statutes, section 124D.135:
182.16
$
21,092,000
.....
2008
182.17
182.18
$
29,324,000
29,326,000
.....
2009
182.19    The 2008 appropriation includes $1,796,000 for 2007 and $19,296,000 for 2008.
182.20    The 2009 appropriation includes $2,144,000 for 2008 and $27,180,000 $27,182,000
182.21for 2009.

182.22    Sec. 21. Laws 2007, chapter 146, article 9, section 17, subdivision 4, as amended by
182.23Laws 2008, chapter 363, article 2, section 42, is amended to read:
182.24    Subd. 4. Health and developmental screening aid. For health and developmental
182.25screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
182.26
$
2,624,000
.....
2008
182.27
182.28
$
3,592,000
3,552,000
.....
2009
182.29    The 2008 appropriation includes $288,000 for 2007 and $2,336,000 for 2008.
182.30    The 2009 appropriation includes $259,000 $247,000 for 2008 and $3,333,000
182.31$3,305,000 for 2009.
182.32G. PREVENTION

183.1    Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 8, as amended by
183.2Laws 2008, chapter 363, article 3, section 23, is amended to read:
183.3    Subd. 8. Community education aid. For community education aid under
183.4Minnesota Statutes, section 124D.20:
183.5
$
1,299,000
.....
2008
183.6
$
796,000785,000
.....
2009
183.7    The 2008 appropriation includes $195,000 for 2007 and $1,104,000 for 2008.
183.8    The 2009 appropriation includes $122,000 for 2008 and $674,000 $663,000 for 2009.

183.9    Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 9, as amended by
183.10Laws 2008, chapter 363, article 3, section 24, is amended to read:
183.11    Subd. 9. Adults with disabilities program aid. For adults with disabilities
183.12programs under Minnesota Statutes, section 124D.56:
183.13
$
709,000
.....
2008
183.14
$
710,000
.....
2009
183.15    The 2008 appropriation includes $70,000 for 2007 and $639,000 for 2008.
183.16    The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
183.17    School districts operating existing adults with disabilities programs that are not fully
183.18funded shall receive full funding for the program beginning in fiscal year 2008 before the
183.19commissioner awards grants to other districts.
183.20H. SELF-SUFFICIENCY AND LIFELONG LEARNING

183.21    Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 13, as amended by
183.22Laws 2008, chapter 363, article 3, section 25, is amended to read:
183.23    Subd. 13. Adult basic education aid. For adult basic education aid under
183.24Minnesota Statutes, section 124D.531:
183.25
$
40,344,000
.....
2008
183.26
183.27
$
41,712,000
41,749,000
.....
2009
183.28    The 2008 appropriation includes $3,759,000 for 2007 and $36,585,000 for 2008.
183.29    The 2009 appropriation includes $4,065,000 for 2008 and $37,647,000 $37,684,000
183.30for 2009.

184.1ARTICLE 10
184.2TECHNICAL CORRECTIONS

184.3    Section 1. Minnesota Statutes 2008, section 120A.22, subdivision 7, is amended to
184.4read:
184.5    Subd. 7. Education records. (a) A district, a charter school, or a nonpublic school
184.6that receives services or aid under sections 123B.40 to 123B.48 from which a student is
184.7transferring must transmit the student's educational records, within ten business days of a
184.8request, to the district, the charter school, or the nonpublic school in which the student is
184.9enrolling. Districts, charter schools, and nonpublic schools that receive services or aid
184.10under sections 123B.40 to 123B.48 must make reasonable efforts to determine the district,
184.11the charter school, or the nonpublic school in which a transferring student is next enrolling
184.12in order to comply with this subdivision.
184.13    (b) A closed charter school must transfer the student's educational records, within
184.14ten business days of the school's closure, to the student's school district of residence
184.15where the records must be retained unless the records are otherwise transferred under
184.16this subdivision.
184.17    (c) A school district, a charter school, or a nonpublic school that receives services
184.18or aid under sections 123B.40 to 123B.48 that transmits a student's educational records
184.19to another school district or other educational entity, charter school, or nonpublic school
184.20to which the student is transferring must include in the transmitted records information
184.21about any formal suspension, expulsion, and exclusion disciplinary action under sections
184.22121A.40 to 121A.56. The district, the charter school, or the nonpublic school that receives
184.23services or aid under sections 123B.40 to 123B.48 must provide notice to a student and
184.24the student's parent or guardian that formal disciplinary records will be transferred as
184.25part of the student's educational record, in accordance with data practices under chapter
184.2613 and the Family Educational Rights and Privacy Act of 1974, United States Code,
184.27title 20, section 1232(g).
184.28     (d) Notwithstanding section 138.17, a principal or chief administrative officer
184.29must remove from a student's educational record and destroy a probable cause notice
184.30received under section 260B.171, subdivision 5, or paragraph (d) (e), if one year has
184.31elapsed since the date of the notice and the principal or chief administrative officer has not
184.32received a disposition or court order related to the offense described in the notice. This
184.33paragraph does not apply if the student no longer attends the school when this one-year
184.34period expires.
185.1    (e) A principal or chief administrative officer who receives a probable cause notice
185.2under section 260B.171, subdivision 5, or a disposition or court order, must include a copy
185.3of that data in the student's educational records if they are transmitted to another school,
185.4unless the data are required to be destroyed under paragraph (c) (d) or section 121A.75.

185.5    Sec. 2. Minnesota Statutes 2008, section 126C.10, subdivision 24, is amended to read:
185.6    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
185.7    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
185.8supplemental revenue, transition revenue, and referendum revenue is less than the value of
185.9the school district at or immediately above the 95th percentile of school districts in its
185.10equity region for those revenue categories; and
185.11    (2) the school district's administrative offices are not located in a city of the first
185.12class on July 1, 1999.
185.13    (b) Equity revenue for a qualifying district that receives referendum revenue under
185.14section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal
185.15cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school
185.16district's equity index computed under subdivision 27.
185.17    (c) Equity revenue for a qualifying district that does not receive referendum revenue
185.18under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
185.19cost pupil units for that year times $13.
185.20    (d) A school district's equity revenue is increased by the greater of zero or an amount
185.21equal to the district's resident marginal cost pupil units times the difference between ten
185.22percent of the statewide average amount of referendum revenue per resident marginal cost
185.23pupil unit for that year and the district's referendum revenue per resident marginal cost
185.24pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
185.25that year.
185.26    (e) A school district's equity revenue for a school district located in the metro equity
185.27region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
185.28    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
185.29district that has per pupil referendum revenue below the 95th percentile qualifies for
185.30additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
185.31    (g) A district that does not qualify for revenue under paragraph (f) qualifies for
185.32equity revenue equal to $46 times its adjusted marginal cost pupil units.