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Key: (1) language to be deleted (2) new language

CHAPTER 239--H.F.No. 2949
An act
relating to education; providing for general education, education
excellence, special education, and other programs; appropriating money;
amending Minnesota Statutes 2010, sections 120A.20, subdivision 2; 120A.22,
subdivisions 2, 11; 120B.024; 120B.13, subdivisions 1, 4; 122A.40, subdivision
13; 122A.415, subdivision 3; 123B.04; 123B.92, subdivision 3; 124D.08,
by adding a subdivision; 124D.09, subdivisions 9, 12, 22, 24, by adding a
subdivision; 124D.4531, subdivision 3, by adding a subdivision; 125A.14;
125A.19; 125A.515, subdivision 1; 126C.10, subdivision 28; 126C.19,
subdivision 2; 127A.47, subdivision 1; 135A.101, subdivision 1; 471.975;
Minnesota Statutes 2011 Supplement, sections 120A.24, subdivisions 1, 2;
120B.023, subdivision 2; 120B.07; 120B.08; 120B.09; 120B.12, subdivision
2; 120B.30, subdivision 1; 122A.40, subdivision 5; 123B.147, subdivision 3;
124D.09, subdivision 7; 124D.10, subdivisions 3, 4, 6, 8, 13, 15, 17a, by adding
a subdivision; 124D.4531, subdivision 1; 124D.98, subdivisions 2, 3; 126C.126;
126C.40, subdivision 1; 127A.45, subdivision 6a; Laws 2011, First Special
Session chapter 11, article 2, section 50, subdivision 16; article 5, section 11;
article 7, section 2, subdivision 8; repealing Minnesota Statutes 2010, sections
120A.28; 120B.019; 120B.31, subdivision 3; 121A.60, subdivisions 3, 4;
121A.62; 121A.63; 122A.18, subdivision 9; 124D.09, subdivision 23; 124D.135,
subdivisions 8, 9; 124D.16, subdivisions 6, 7; 124D.20, subdivisions 11, 12;
125A.16; 125A.80; 127A.47, subdivision 2; 475.53, subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1
GENERAL EDUCATION

    Section 1. Minnesota Statutes 2010, section 120A.20, subdivision 2, is amended to
read:
    Subd. 2. Education and, residence, and transportation of homeless. (a)
Notwithstanding subdivision 1, a district must not deny free admission to a homeless
person of school age pupil solely because the district cannot determine that the person
pupil is a resident of the district.
(b) The school district of residence for a homeless person of school age pupil
shall be the school district in which the homeless shelter or other program, center, or
facility assisting the homeless person is located. The educational services a school
district provides to a homeless person must allow the person to work toward meeting the
graduation standards under section 120B.02. parent or legal guardian resides, unless: (1)
parental rights have been terminated by court order; (2) the parent or guardian is not
living within the state; or (3) the parent or guardian having legal custody of the child is
an inmate of a Minnesota correctional facility or is a resident of a halfway house under
the supervision of the commissioner of corrections. If any of clauses (1) to (3) apply, the
school district of residence shall be the school district in which the pupil resided when the
qualifying event occurred. If no other district of residence can be established, the school
district of residence shall be the school district in which the pupil currently resides. If
there is a dispute between school districts regarding residency, the district of residence is
the district designated by the commissioner of education.
(c) The serving district is responsible for transporting a homeless pupil to and from
the pupil's district of residence. The district may transport from a permanent home in
another district but only through the end of the academic school year. When a pupil is
enrolled in a charter school, the district or school that provides transportation for other
pupils enrolled in the charter school is responsible for providing transportation. When a
homeless student with or without an individualized education program attends a public
school other than an independent or special school district or charter school, the district of
residence is responsible for transportation.

    Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:
    Subd. 11. Assessment of performance. (a) Each year the performance of every
child ages seven through 16 who is not enrolled in a public school must be assessed using
a nationally norm-referenced standardized achievement examination. The superintendent
of the district in which the child receives instruction and the person in charge of the child's
instruction must agree about the specific examination to be used and the administration
and location of the examination.
(b) To the extent the examination in paragraph (a) does not provide assessment in
all of the subject areas in subdivision 9, the parent must assess the child's performance
in the applicable subject area. This requirement applies only to a parent who provides
instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
child's performance on the total battery score is at or below the 30th percentile or one
grade level below the performance level for children of the same age, the parent must
obtain additional evaluation of the child's abilities and performance for the purpose of
determining whether the child has learning problems.
(d) A child receiving instruction from a nonpublic school, person, or institution that
is accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements of this subdivision.

    Sec. 3. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 1, is
amended to read:
    Subdivision 1. Reports to superintendent. (a) The person or nonpublic school in
charge of providing instruction to a child must submit to the superintendent of the district
in which the child resides the name, birth date, and address of the child; the annual tests
intended to be used under section 120A.22, subdivision 11, if required; the name of each
instructor; and evidence of compliance with one of the requirements specified in section
120A.22, subdivision 10:
(1) by October 1 of the first school year the child receives instruction after reaching
the age of seven;
(2) within 15 days of when a parent withdraws a child from public school after age
seven to homeschool provide instruction in a nonpublic school that is not accredited
by a state-recognized accredited agency;
(3) within 15 days of moving out of a district; and
(4) by October 1 after a new resident district is established.
(b) The person or nonpublic school in charge of providing instruction to a child
between the ages of seven and 16 must submit, by October 1 of each school year, a letter
of intent to continue to provide instruction under this section for all students under the
person's or school's supervision and any changes to the information required in paragraph
(a) for each student.
(c) The superintendent may collect the required information under this section
through an electronic or Web-based format, but must not require electronic submission
of information under this section from the person in charge of reporting under this
subdivision.

    Sec. 4. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 2, is
amended to read:
    Subd. 2. Availability of documentation. (a) The person or nonpublic school in
charge of providing instruction to a child must maintain documentation indicating that the
subjects required in section 120A.22, subdivision 9, are being taught and proof that the
tests under section 120A.22, subdivision 11, have been administered. This documentation
must include class schedules, copies of materials used for instruction, and descriptions of
methods used to assess student achievement.
(b) The parent of a child who enrolls full time in public school after having been
enrolled in a home school under section 120A.22, subdivision 6 nonpublic school that
is not accredited by a state-recognized accrediting agency, must provide the enrolling
public school or school district with the child's scores on any tests administered to the
child under section 120A.22, subdivision 11, and other education-related documents the
enrolling school or district requires to determine where the child is placed in school and
what course requirements apply. This paragraph does not apply to a shared time student
who does not seek a public school diploma.
(c) The person or nonpublic school in charge of providing instruction to a child must
make the documentation in this subdivision available to the county attorney when a case
is commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted
under chapter 260A.

    Sec. 5. Minnesota Statutes 2011 Supplement, section 120B.023, subdivision 2, is
amended to read:
    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.
(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:
(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and
(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.
The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 are aligned with the state academic
standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
(b). The commissioner must implement a review of the academic standards and related
benchmarks in mathematics beginning in the 2015-2016 school year.
(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2010-2011
school year. The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.
(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the 2011-2012
school year. Under the revised standards, students scheduled to graduate in the 2014-2015
school year or later must satisfactorily complete a chemistry, or physics, credit or a career
and technical education credit that meets the standards underlying either the chemistry or,
physics, or biology credit or a combination of those standards approved by the district.
The commissioner must implement a review of the academic standards and related
benchmarks in science beginning in the 2017-2018 school year.
(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. The commissioner must implement a review of the academic
standards and related benchmarks in language arts beginning in the 2018-2019 school year.
(f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in the
2013-2014 school year. The commissioner must implement a review of the academic
standards and related benchmarks in social studies beginning in the 2019-2020 school year.
(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, world languages, and career
and technical education to require students to complete the revised standards beginning
in a school year determined by the school district or charter school. School districts and
charter schools must formally establish a periodic review cycle for the academic standards
and related benchmarks in health, world languages, and career and technical education.

    Sec. 6. Minnesota Statutes 2010, section 120B.024, is amended to read:
120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
    (a) Students beginning 9th grade in the 2004-2005 2011-2012 school year and later
must successfully complete the following high school level course credits for graduation:
    (1) four credits of language arts;
    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
and probability sufficient to satisfy the academic standard;
    (3) three credits of science, including at least: (i) one credit in biology; and (ii) one
chemistry or physics credit or a career and technical education credit that meets standards
underlying the chemistry, physics, or biology credit or a combination of those standards
approved by the district, but meeting biology standards under this item does not meet the
biology requirement under item (i);
    (4) three and one-half credits of social studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics or
three credits of social studies encompassing at least United States history, geography,
government and citizenship, and world history, and one-half credit of economics taught in
a school's social studies, agriculture education, or business department;
    (5) one credit in the arts; and
    (6) a minimum of seven elective course credits.
    A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter, as determined by the
local school district.
    (b) An agriculture science course may fulfill a science credit requirement in addition
to other than the specified science credits credit in biology and chemistry or physics
under paragraph (a), clause (3).
    (c) A career and technical education course may fulfill a science, mathematics, or
arts credit requirement in addition to the specified science, mathematics, or arts credits
or a science credit requirement other than the specified science credit in biology under
paragraph (a), clause (2), (3), or (5).

    Sec. 7. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:
120B.07 EARLY GRADUATION.
(a) Notwithstanding any law to the contrary, any secondary school student who has
completed all required courses or standards may, with the approval of the student, the
student's parent or guardian, and local school officials, graduate before the completion
of the school year.
(b) General education revenue attributable to the student must be paid as though
the student was in attendance for the entire year unless the student participates in the
early graduation achievement scholarship program under section 120B.08 or the early
graduation military service award program under section 120B.09.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 8. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:
120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
PROGRAM.
    Subdivision 1. Participation. A student who qualifies for early graduation under
section 120B.07, who meets the criteria in subdivision 1a and who has not participated in
the early graduation military service award program under section 120B.09, is eligible to
participate in the early graduation achievement scholarship program.
    Subd. 1a. Eligible student. For purposes of this section, an eligible student is a
secondary student enrolled in a Minnesota public school who, at the time of graduation,
generated Minnesota general education revenue and who graduates prior to the end of the
fourth school year after first enrolling in ninth grade.
    Subd. 2. Scholarship amounts. A student who participates in the early graduation
achievement scholarship program is eligible for a scholarship of $2,500 if the student
qualifies for graduation graduates one semester or two trimesters early, $5,000 if the
student qualifies for graduation graduates two semesters or three or four trimesters early,
or $7,500 if the student qualifies for graduation graduates three or more semesters or five
or more trimesters early. Participation in the optional summer term, extended day sessions,
and intersessions of a state-approved learning year program under section 124D.128 are
considered a quarter for purposes of computing scholarship amounts.
    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
used at any accredited institution of higher education accredited by an accrediting agency
recognized by the United States Department of Education.
    Subd. 4. Application. A qualifying student may apply to the commissioner of
education for an early graduation achievement scholarship. The application must be in the
form and manner specified by the commissioner and must be received at the department
within two calendar years of the date of graduation. Upon verification of the qualifying
student's course completion necessary for graduation, the department must issue the
student a certificate showing the student's scholarship amount.
    Subd. 5. Enrollment verification. A student who qualifies under this section
and enrolls in an accredited higher education institution must submit a form to the
commissioner verifying the student's enrollment in the higher education institution and the
tuition charges for that semester. Within 15 45 days of receipt of a student's enrollment
and tuition verification form, the commissioner must issue a scholarship check to the
student higher education institution in the lesser of the tuition amount for that semester
or the maximum amount of the student's early graduation achievement scholarship. A
student may continue to submit enrollment verification forms to the commissioner until
the student has used the full amount of the student's graduation achievement scholarship or
six years from the date of the student's graduation, whichever occurs first. The scholarship
cannot be renewed.
    Subd. 6. General education money transferred. The commissioner must transfer
the amounts necessary to fund the early graduation achievement scholarships from the
general education aid appropriation for that year.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 9. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:
120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.
    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means a
secondary student enrolled in any Minnesota public school who, at the time of graduation,
generated Minnesota general education revenue, who qualifies for early graduation under
section 120B.07, who graduated prior to the end of the fourth school year after first
enrolling in ninth grade, who has not participated in the early graduation achievement
scholarship program under section 120B.08, and who, before the end of the calendar
year of the student's graduation, enters into active service in either the active or reserve
component of the United States armed forces and deploys for 60 days or longer to a
military base or installation outside Minnesota for the purpose of attending basic military
training or military school and, if required by the military, performing other military duty.
The active service may be in accordance with United States Code, title 10 or title 32.
    Subd. 2. Application. An eligible person may apply to the commissioner of
education for an early graduation military service bonus. The application must be in the
form and manner specified by the commissioner and must be received at the department
within two calendar years of the date of graduation.
    Subd. 3. Verification and award. The request for payment must be received at
the department by the end of the second fiscal year following the fiscal year in which
the student graduated. Upon verification of the qualifying student's course completion
necessary for graduation and eligibility for the military service bonus, the commissioner
must issue payment to that person. Payment amounts must be determined according to
section 120B.08, subdivision 2. Once the original amount of the award has been paid, it
cannot be renewed.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 10. Minnesota Statutes 2010, section 120B.13, subdivision 4, is amended to read:
    Subd. 4. Rigorous course taking information; AP, IB, and PSEO. The
commissioner shall submit the following information on rigorous course taking to the
education committees of the legislature each year by February 1:
(1) the number of pupils enrolled in postsecondary enrollment options under
section 124D.09, including concurrent enrollment, advanced placement, and international
baccalaureate courses in each school district;
(2) the number of teachers in each district attending training programs offered by
the college board or, International Baccalaureate North America, Inc., or Minnesota
concurrent enrollment programs;
(3) the number of teachers in each district participating in support programs;
(4) recent trends in the field of postsecondary enrollment options under section
124D.09, including concurrent enrollment, advanced placement, and international
baccalaureate programs;
(5) expenditures for each category in this section and under sections 124D.09 and
124D.091; and
(6) other recommendations for the state program or the postsecondary enrollment
options under section 124D.09, including concurrent enrollment.
EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
later.

    Sec. 11. Minnesota Statutes 2010, section 122A.415, subdivision 3, is amended to read:
    Subd. 3. Revenue timing. (a) Districts, intermediate school districts, school sites,
or charter schools with approved applications must receive alternative compensation
revenue for each school year that the district, intermediate school district, school site,
or charter school implements an alternative teacher professional pay system under this
subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district,
intermediate school district, school site, or charter school that received alternative teacher
compensation aid for the previous fiscal year must receive at least an amount of alternative
teacher compensation revenue equal to the lesser of the amount it received for the previous
fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if
the district, intermediate school district, school site, or charter school submits a timely
application and the commissioner determines that the district, intermediate school district,
school site, or charter school continues to implement an alternative teacher professional
pay system, consistent with its application under this section.
(b) The commissioner shall approve applications that comply with subdivision 1,
and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter
school, in the order in which they are received, select applicants that qualify for this
program, notify school districts, intermediate school districts, school sites, and charter
schools about the program, develop and disseminate application materials, and carry out
other activities needed to implement this section.
(c) For applications approved under this section before August 1 of the fiscal year for
which the aid is paid, the portion of the state total basic alternative teacher compensation
aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006
and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state
total basic alternative teacher compensation aid entitlement allocated to charter schools
must not exceed the product of $3,374,000 times the ratio of the state total charter school
enrollment for the previous fiscal year to the state total charter school enrollment for the
second previous fiscal year 2007. Additional basic alternative teacher compensation aid
may be approved for charter schools after August 1, not to exceed the charter school limit
for the following fiscal year, if the basic alternative teacher compensation aid entitlement
for school districts based on applications approved by August 1 does not expend the
remaining amount under the limit.

    Sec. 12. Minnesota Statutes 2010, section 123B.92, subdivision 3, is amended to read:
    Subd. 3. Alternative attendance programs. (a) A district that enrolls nonresident
pupils in programs under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68,
must provide authorized transportation to the pupil within the attendance area for the
school that the pupil attends at the same level of service that is provided to resident pupils
within the attendance area. The resident district need not provide or pay for transportation
between the pupil's residence and the district's border.
    (b) A district may provide transportation to allow a student who attends a high-need
English language learner program and who resides within the transportation attendance
area of the program to continue in the program until the student completes the highest
grade level offered by the program.
(c) A homeless nonresident pupil enrolled under section 124D.08, subdivision 2a,
must be provided transportation from the pupil's district of residence to and from the
school of enrollment.

    Sec. 13. Minnesota Statutes 2010, section 124D.08, is amended by adding a
subdivision to read:
    Subd. 2a. Continued enrollment for homeless students. Notwithstanding
subdivision 2, a pupil who has been enrolled in a district, who is identified as homeless,
and whose parent or legal guardian moves to another district, may continue to enroll in
the nonresident district without the approval of the board of the nonresident district. The
approval of the board of the pupil's resident district is not required.

    Sec. 14. Minnesota Statutes 2010, section 124D.09, is amended by adding a
subdivision to read:
    Subd. 5a. Authorization; career or technical education. A 10th, 11th, or 12th
grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
a district under a cultural exchange program, may enroll in a career or technical education
course offered by a Minnesota state college or university. A 10th grade pupil applying
for enrollment in a career or technical education course under this subdivision must
have received a passing score on the 8th grade Minnesota Comprehensive Assessment
in reading as a condition of enrollment. A secondary pupil may enroll in their first
postsecondary options enrollment course under this subdivision. A student who is refused
enrollment by a Minnesota state college or university under this subdivision, may apply to
an eligible institution offering a career or technical education course. The postsecondary
institution must give priority to its students according to subdivision 9. If a secondary
student receives a grade of "C" or better in the career or technical education course
taken under this subdivision, the postsecondary institution must allow the student to take
additional postsecondary courses for secondary credit at that institution, not to exceed the
limits in subdivision 8. A "career or technical course" is a course that is part of a career
and technical education program that provides individuals with coherent, rigorous content
aligned with academic standards and relevant technical knowledge and skills needed
to prepare for further education and careers in current and emerging professions and
provide technical skill proficiency, an industry recognized credential, and a certificate,
diploma, or an associate degree.

    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 7, is
amended to read:
    Subd. 7. Dissemination of information; notification of intent to enroll. By March
1 of each year, a district must provide general information about the program to all pupils
in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district
by March May 30 of each year of the pupil's intent to enroll in postsecondary courses
during the following school year. A pupil is not bound by notifying or not notifying the
district by March May 30.

    Sec. 16. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read:
    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
A postsecondary institution may provide information about its programs to a secondary
school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit the
participation of secondary pupils to enroll in its programs on financial grounds and it may
advertise or otherwise recruit or solicit a secondary pupil to enroll in its programs on
educational and programmatic grounds only. An institution must not enroll secondary
pupils, for postsecondary enrollment options purposes, in remedial, developmental, or
other courses that are not college level. Once a pupil has been enrolled in a postsecondary
course under this section, the pupil shall not be displaced by another student.

    Sec. 17. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read:
    Subd. 12. Credits. A pupil may enroll in a course under this section for either
secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil
shall designate whether the course is for secondary or postsecondary credit. A pupil taking
several courses may designate some for secondary credit and some for postsecondary
credit. A pupil must not audit a course under this section.
A district shall grant academic credit to a pupil enrolled in a course for secondary
credit if the pupil successfully completes the course. Seven quarter or four semester
college credits equal at least one full year of high school credit. Fewer college credits may
be prorated. A district must also grant academic credit to a pupil enrolled in a course for
postsecondary credit if secondary credit is requested by a pupil. If no comparable course is
offered by the district, the district must, as soon as possible, notify the commissioner, who
shall determine the number of credits that shall be granted to a pupil who successfully
completes a course. If a comparable course is offered by the district, the school board
shall grant a comparable number of credits to the pupil. If there is a dispute between the
district and the pupil regarding the number of credits granted for a particular course, the
pupil may appeal the board's decision to the commissioner. The commissioner's decision
regarding the number of credits shall be final.
The secondary credits granted to a pupil must be counted toward the graduation
requirements and subject area requirements of the district. Evidence of successful
completion of each course and secondary credits granted must be included in the pupil's
secondary school record. A pupil shall provide the school with a copy of the pupil's grade
in each course taken for secondary credit under this section. Upon the request of a pupil,
the pupil's secondary school record must also include evidence of successful completion
and credits granted for a course taken for postsecondary credit. In either case, the record
must indicate that the credits were earned at a postsecondary institution.
If a pupil enrolls in a postsecondary institution after leaving secondary school, the
postsecondary institution must award postsecondary credit for any course successfully
completed for secondary credit at that institution. Other postsecondary institutions may
award, after a pupil leaves secondary school, postsecondary credit for any courses
successfully completed under this section. An institution may not charge a pupil for
the award of credit.
The Board of Trustees of the Minnesota State Colleges and Universities and
the Board of Regents of the University of Minnesota must, and private nonprofit and
proprietary postsecondary institutions should, award postsecondary credit for any
successfully completed courses in a program certified by the National Alliance of
Concurrent Enrollment Partnerships offered according to an agreement under subdivision
10.

    Sec. 18. Minnesota Statutes 2010, section 124D.09, subdivision 22, is amended to read:
    Subd. 22. Transportation. (a) A parent or guardian of a pupil enrolled in a course
for secondary credit may apply to the pupil's district of residence for reimbursement for
transporting the pupil between the secondary school in which the pupil is enrolled or the
pupil's home and the postsecondary institution that the pupil attends. The state shall
provide state aid to a district in an amount sufficient to reimburse the parent or guardian
for the necessary transportation costs when the family's or guardian's income is at or
below the poverty level, as determined by the federal government. The reimbursement
shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever
is less. Reimbursement may not be paid for more than 250 miles per week. However,
if the nearest postsecondary institution is more than 25 miles from the pupil's resident
secondary school, the weekly reimbursement may not exceed the reimbursement rate per
mile times the actual distance between the secondary school or the pupil's home and the
nearest postsecondary institution times ten. The state must pay aid to the district according
to this subdivision.
(b) A parent or guardian of an alternative pupil enrolled in a course for secondary
credit may apply to the pupil's postsecondary institution for reimbursement for
transporting the pupil between the secondary school in which the pupil is enrolled or the
pupil's home and the postsecondary institution in an amount sufficient to reimburse the
parent or guardian for the necessary transportation costs when the family's or guardian's
income is at or below the poverty level, as determined by the federal government. The
amount of the reimbursement shall be determined as in paragraph (a). The state must pay
aid to the postsecondary institution according to this subdivision.

    Sec. 19. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read:
    Subd. 24. Limit; state obligation. The provisions of subdivisions 13, 19, and
22, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in
addition to being enrolled full time in that pupil's district or for any postsecondary course
in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if
the pupil attends credit-bearing classes in the high school or high school program for
all of the available hours of instruction.
EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
later.

    Sec. 20. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 8, is
amended to read:
    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
federal, state, and local health and safety requirements applicable to school districts.
    (b) A school must comply with statewide accountability requirements governing
standards and assessments in chapter 120B.
    (c) A school authorized by a school board may be located in any district, unless the
school board of the district of the proposed location disapproves by written resolution.
    (d) A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. An authorizer may not authorize a charter
school or program that is affiliated with a nonpublic sectarian school or a religious
institution. A charter school student must be released for religious instruction, consistent
with section 120A.22, subdivision 12, clause (3).
    (e) Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled. This paragraph does not
apply to shared time aid, under section 126C.19.
    (f) The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.
    (g) A charter school may not charge tuition.
    (h) A charter school is subject to and must comply with chapter 363A and section
121A.04.
    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.
    (j) A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district. Audits must be conducted in compliance with generally
accepted governmental auditing standards, the federal Single Audit Act, if applicable,
and section 6.65. A charter school is subject to and must comply with sections 15.054;
118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and
471.425. The audit must comply with the requirements of sections 123B.75 to 123B.83,
except to the extent deviations are necessary because of the program at the school.
Deviations must be approved by the commissioner and authorizer. The Department of
Education, state auditor, legislative auditor, or authorizer may conduct financial, program,
or compliance audits. A charter school determined to be in statutory operating debt under
sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
    (k) A charter school is a district for the purposes of tort liability under chapter 466.
    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
subdivision 7
; 121A.75; and 260B.171, subdivisions 3 and 5.
    (m) A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.
    (n) A charter school offering online courses or programs must comply with section
124D.095.
    (o) A charter school and charter school board of directors are subject to chapter 181.
    (p) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.
    (q) A charter school that provides early childhood health and developmental
screening must comply with sections 121A.16 to 121A.19.
(r) A charter school that provides school-sponsored youth athletic activities must
comply with section 121A.38.

    Sec. 21. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1,
is amended to read:
    Subdivision 1. Career and technical levy. (a) A district with a career and technical
program approved under this section for the fiscal year in which the levy is certified
may levy an amount equal to the greater of:
(1) $80 times the district's average daily membership in grades 9 through 12 for the
fiscal year in which the levy is certified; or
(2) 35 percent of approved expenditures in the fiscal year in which the levy is
certified for the following:
(i) (1) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year, including extended contracts, for services rendered
in the district's approved career and technical education programs;
(ii) (2) contracted services provided by a public or private agency other than a
Minnesota school district or cooperative center under subdivision 7;
(iii) (3) necessary travel between instructional sites by licensed career and technical
education personnel;
(iv) (4) necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;
(v) (5) curriculum development activities that are part of a five-year plan for
improvement based on program assessment;
(vi) (6) necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and
(vii) (7) specialized vocational instructional supplies.
(b) Up to ten percent of a district's career and technical levy may be spent on
equipment purchases. Districts using the career and technical levy for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.
(c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.
(d) The amount of the levy certified under this subdivision may not exceed
$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and
$15,545,000 $15,393,000 for taxes payable in 2014.
(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner
must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer
exceeds the limit in paragraph (d).
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 22. Minnesota Statutes 2010, section 124D.4531, subdivision 3, is amended to
read:
    Subd. 3. Levy guarantee. Notwithstanding subdivision 1, paragraph (a), the career
and technical education levy for a district is not less than the lesser of:
(1) the district's career and technical education levy authority for the previous
fiscal year; or
(2) 100 percent of the approved expenditures for career and technical programs
included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. Minnesota Statutes 2010, section 124D.4531, is amended by adding a
subdivision to read:
    Subd. 3a. Levy, pay 2012-2014. Notwithstanding subdivisions 1 and 3, for taxes
payable in 2012 to 2014 only, the department must calculate the career and technical levy
authority for each district according to Minnesota Statutes 2010, section 124D.4531, and
adjust the levy authority for each district proportionately to meet the statewide levy target
under subdivision 1, paragraph (d). For purposes of calculating the levy guarantee under
subdivision 3, the career and technical education levy authority for the previous fiscal year
is the levy authority according to Minnesota Statutes 2010, section 124D.4531, before
adjustments to meet the statewide levy target.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 24. Minnesota Statutes 2010, section 126C.10, subdivision 28, is amended to read:
    Subd. 28. Equity region. For the purposes of computing equity revenue under
subdivision 24, a district whose with its administrative offices on July 1, 1999, is office
located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County on
January 1, 2012, is part of the metro equity region. Districts whose administrative offices
on July 1, 1999, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
Washington County All other districts are part of the rural equity region.
EFFECTIVE DATE.This section is effective for revenue for fiscal years 2013
and later.

    Sec. 25. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:
126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
    (a) In order to provide additional revenue for an optional all-day kindergarten
program, a district may reallocate general education revenue attributable to 12th grade
students who have graduated early under section 120B.07 and who do not participate in
the early graduation achievement scholarship program under section 120B.08 or the early
graduation military service award program under section 120B.09.
    (b) A school district may spend general education revenue on extended time
kindergarten and prekindergarten programs.

    Sec. 26. Minnesota Statutes 2010, section 126C.19, subdivision 2, is amended to read:
    Subd. 2. Exception. Notwithstanding subdivision 1, the resident district of a shared
time pupil attending shared time classes in another district may or a charter school must
grant the district or charter school of attendance, upon its request, permission to claim
the pupil as a resident for state aid purposes. In this case, state aid must be paid to the
district or charter school of attendance and, upon agreement. If the resident district agrees,
the district of attendance may bill the resident district for any unreimbursed education
costs, but not for unreimbursed transportation costs. The agreement may, however,
provide resident district and the district or charter school of attendance may negotiate an
agreement for the resident district to pay the cost of any of the particular transportation
categories specified in section 123B.92, subdivision 1, and in this case, aid for those
categories must be paid to the district of residence rather than to the district of attendance.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
and later.

    Sec. 27. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 6a,
is amended to read:
    Subd. 6a. Cash flow adjustment. The board of directors of any charter school
serving fewer than 150 200 students where the percent of students eligible for special
education services equals at least 90 percent of the charter school's total enrollment may
request that the commissioner of education accelerate the school's cash flow under this
section. The commissioner must approve a properly submitted request within 30 days of
its receipt. The commissioner must accelerate the school's regular special education aid
payments according to the schedule in the school's request and modify the payments to the
school under subdivision 3 accordingly. A school must not receive current payments of
regular special education aid exceeding 90 percent of its estimated aid entitlement for the
fiscal year. The commissioner must delay the special education aid payments to all other
school districts and charter schools in proportion to each district or charter school's total
share of regular special education aid such that the overall aid payment savings from the
aid payment shift remains unchanged for any fiscal year.

    Sec. 28. Minnesota Statutes 2010, section 127A.47, subdivision 1, is amended to read:
    Subdivision 1. Aid to serving district. (a) Unless otherwise specifically provided
by law, general education aid must be paid according to this subdivision.
(b) Except as provided in paragraph (c), general education aid must be paid to the
serving district.
(c) If the resident district pays tuition for a pupil under section 123A.18, 123A.22,
123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05,
125A.03 to 125A.24, 125A.51, or 125A.65, general education aid, excluding basic skills
revenue under section 126C.10, subdivision 4, must be paid to the resident district. For
a student enrolled under section 124D.08, subdivision 2a, that is enrolled in other than
an independent or special school district or charter school, the general education revenue
shall be paid to the resident district.

    Sec. 29. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read:
    Subdivision 1. Requirements for participation. To participate in the postsecondary
enrollment options program, a college or university must abide by the provisions in this
section. The institution may provide information about its programs to a secondary school
or to a pupil or parent, but may not recruit or solicit participation on financial grounds and
may recruit or solicit participation on educational and programmatic grounds.

    Sec. 30. Minnesota Statutes 2010, section 471.975, is amended to read:
471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
(a) Except as provided in paragraph (b), a statutory or home rule charter city, county,
town, or other political subdivision may pay to each eligible member of the National
Guard or other reserve component of the armed forces of the United States an amount
equal to the difference between the member's base active duty military salary and the
salary the member would be paid as an active political subdivision employee, including
any adjustments the member would have received if not on leave of absence. This
payment may be made only to a person whose base active duty military salary is less than
the salary the person would be paid as an active political subdivision employee. Back pay
authorized by this section may be paid in a lump sum. Payment under this section must
not extend beyond four years from the date the employee reported for active service, plus
any additional time the employee may be legally required to serve.
(b) Subject to the limits under paragraph (g), Each school district shall pay to each
eligible member of the National Guard or other reserve component of the armed forces
of the United States an amount equal to the difference between the member's base active
duty military salary and the salary the member would be paid as an active school district
employee, including any adjustments the member would have received if not on leave
of absence. The pay differential must be based on a comparison between the member's
daily base rate of active duty pay, calculated by dividing the member's base military
monthly salary by the number of paid days in the month, and the member's daily rate of
pay for the member's school district salary, calculated by dividing the member's total
school district salary by the number of contract days. The member's salary as a school
district employee must include the member's basic salary and any additional salary the
member earns from the school district for cocurricular and extracurricular activities. The
differential payment under this paragraph must be the difference between the daily base
rates of military pay times the number of school district contract days the member misses
because of military active duty. This payment may be made only to a person whose daily
base rate of active duty pay is less than the person's daily rate of pay as an active school
district employee. Payments may be made at the intervals at which the member received
pay as a school district employee. Payment under this section must not extend beyond
four years from the date the employee reported for active service, plus any additional time
the employee may be legally required to serve.
(c) An eligible member of the reserve components of the armed forces of the United
States is a reservist or National Guard member who was an employee of a political
subdivision at the time the member reported for active service on or after May 29, 2003,
or who is on active service on May 29, 2003.
(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a
statutory or home rule charter city, county, town, or other political subdivision has total
discretion regarding employee benefit continuation for a member who reports for active
service and the terms and conditions of any benefit.
(e) A school district must continue the employee's enrollment in health and dental
coverage, and the employer contribution toward that coverage, until the employee is
covered by health and dental coverage provided by the armed forces. If the employee had
elected dependent coverage for health or dental coverage as of the time that the employee
reported for active service, a school district must offer the employee the option to continue
the dependent coverage at the employee's own expense. A school district must permit
the employee to continue participating in any pretax account in which the employee
participated when the employee reported for active service, to the extent of employee pay
available for that purpose.
(f) For purposes of this section, "active service" has the meaning given in section
190.05, subdivision 5, but excludes service performed exclusively for purposes of:
(1) basic combat training, advanced individual training, annual training, and periodic
inactive duty training;
(2) special training periodically made available to reserve members; and
(3) service performed in accordance with section 190.08, subdivision 3.
(g) A school district making payments under paragraph (b) shall place a sum equal
to any difference between the amount of salary that would have been paid to the employee
who is receiving the payments and the amount of salary being paid to substitutes for
that employee into a special fund that must be used to pay or partially pay the deployed
employee's payments under paragraph (b). A school district is required to pay only this
amount to the deployed school district employee. When an employee of a school district
who as a member of the National Guard or any other reserve unit of the United States
armed forces, reports for active service as defined in section 190.05, subdivision 5, the
district must place into a special service members' aggregate salary savings account the
amount of salary the district would have paid to the employee during the employee's leave
for military service. The district must use the combined proceeds in the account only to
fully pay the salary differentials of all eligible deployed employees in the district, as
determined under paragraph (b). Funds remaining in the account at the end of the fiscal
year after all obligations to employees under this statute have been satisfied may be used
to pay for substitutes for the deployed employees, and then for any other purpose.
EFFECTIVE DATE.This section is effective July 1, 2012, for school district
employees serving in active military duty on or after that date.

    Sec. 31. Laws 2011, First Special Session chapter 11, article 5, section 11, is amended
to read:
    Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 THROUGH
2015 ONLY.
(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
years 2012 and 2013 through 2015 only, the commissioner must approve a request for a
fund transfer if the transfer does not increase state aid obligations to the district or result in
additional property tax authority for the district. This section does not permit transfers
from the community service fund or the food service fund.
(b) A school board may approve a fund transfer under paragraph (a) only after
adopting a resolution stating the fund transfer will not diminish instructional opportunities
for students.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 32. APPROPRIATION.
    Subdivision 1. Department of Education. The sums shown are added to or, if
shown in parentheses, subtracted from, the appropriations in Laws 2011, First Special
Session chapter 11, or any appropriation that replaces those appropriations, to the
Department of Education for the purposes specified. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose.
    Subd. 2. General education aid. For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

$
(311,000)
.....
2012

$
(678,000)
.....
2013
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 33. REVISOR'S INSTRUCTION.
In Minnesota Statutes and Rules, the revisor of statutes shall substitute the terms
"English learner," "EL," or similar term for "limited English proficient," "English language
learner," "LEP," "ELL," or similar term when referring to early childhood through grade 12
education. The revisor shall also make grammatical changes related to the changes in term.

    Sec. 34. REPEALER.
(a) Minnesota Statutes 2010, section 124D.09, subdivision 23, is repealed effective
for the 2012-2013 school year and later.
(b) Minnesota Statutes 2010, section 127A.47, subdivision 2, is repealed.

ARTICLE 2
EDUCATION EXCELLENCE

    Section 1. Minnesota Statutes 2010, section 120A.22, subdivision 2, is amended to
read:
    Subd. 2. Applicability. This section and sections 120A.24; 120A.26; 120A.28;
120A.30; 120A.32; and 120A.34 apply only to a child required to receive instruction
according to subdivision 5 and to instruction that is intended to fulfill that requirement.

    Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.12, subdivision 2, is
amended to read:
    Subd. 2. Identification; report. For the 2011-2012 school year and later, each
school district shall identify before the end of kindergarten, grade 1, and grade 2 students
who are not reading at grade level before the end of the current school year. Reading
assessments must identify and evaluate students' areas of academic need related to
literacy. The district must use a locally adopted assessment and annually report summary
assessment results to the commissioner by June July 1.

    Sec. 3. Minnesota Statutes 2010, section 120B.13, subdivision 1, is amended to read:
    Subdivision 1. Program structure; training programs for teachers. (a) The
advanced placement and international baccalaureate programs are well-established
academic programs for mature, academically directed high school students. These
programs, in addition to providing academic rigor, offer sound curricular design,
accountability, comprehensive external assessment, feedback to students and teachers,
and the opportunity for high school students to compete academically on a global level.
Advanced placement and international baccalaureate programs allow students to leave
high school with the academic skills and self-confidence to succeed in college and
beyond. The advanced placement and international baccalaureate programs help provide
Minnesota students with world-class educational opportunity.
(b) Critical to schools' educational success is ongoing advanced
placement/international baccalaureate-approved teacher training. A secondary teacher
assigned by a district to teach an advanced placement or international baccalaureate course
or other interested educator may participate in a training program offered by The College
Board or International Baccalaureate North America, Inc. The state may pay a portion
of the tuition, room, board, and out-of-state travel costs a teacher or other interested
educator incurs in participating in a training program. The commissioner shall determine
application procedures and deadlines, select teachers and other interested educators to
participate in the training program, and determine the payment process and amount of the
subsidy. The procedures determined by the commissioner shall, to the extent possible,
ensure that advanced placement and international baccalaureate courses become available
in all parts of the state and that a variety of course offerings are available in school districts.
This subdivision does not prevent teacher or other interested educator participation in
training programs offered by The College Board or International Baccalaureate North
America, Inc., when tuition is paid by a source other than the state.

    Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.30, subdivision 1, is
amended to read:
    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed from and aligned with the state's
required academic standards under section 120B.021, include multiple choice questions,
and be administered annually to all students in grades 3 through 8. State-developed high
school tests aligned with the state's required academic standards under section 120B.021
and administered to all high school students in a subject other than writing must include
multiple choice questions. The commissioner shall establish one or more months during
which schools shall administer the tests to students each school year. For students enrolled
in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a
passing state notation. The passing scores of basic skills tests in reading and mathematics
are the equivalent of 75 percent correct for students entering grade 9 based on the
first uniform test administered in February 1998. Students who have not successfully
passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass
the graduation-required assessments for diploma under paragraph (c), except that for
the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's
graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).
(b) The state assessment system must be aligned to the most recent revision of
academic standards as described in section 120B.023 in the following manner:
(1) mathematics;
(i) grades 3 through 8 beginning in the 2010-2011 school year; and
(ii) high school level beginning in the 2013-2014 school year;
(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
school year; and
(3) language arts and reading; grades 3 through 8 and high school level beginning in
the 2012-2013 school year.
    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:
    (1) for reading and mathematics:
    (i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;
    (ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;
    (iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program or 504 plan;
    (iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individualized education program; or
    (v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individualized education program; and
    (2) for writing:
    (i) achieving a passing score on the graduation-required assessment for diploma;
    (ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;
    (iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program or 504 plan; or
    (iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individualized education program.
    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (c) are eligible to receive a high school diploma
if they:
(1) complete with a passing score or grade all state and local coursework and credits
required for graduation by the school board granting the students their diploma;
(2) participate in district-prescribed academic remediation in mathematics; and
    (3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. A school, district, or charter
school must place on the high school transcript a student's current pass status for each
subject that has a required graduation assessment.
In addition, the school board granting the students their diplomas may formally
decide to include a notation of high achievement on the high school diplomas of those
graduating seniors who, according to established school board criteria, demonstrate
exemplary academic achievement during high school.
(e) The 3rd through 8th grade and high school test results shall be available to
districts for diagnostic purposes affecting student learning and district instruction and
curriculum, and for establishing educational accountability. The commissioner must
disseminate to the public the high school test results upon receiving those results.
    (f) The 3rd through 8th grade and high school tests must be aligned with state
academic standards. The commissioner shall determine the testing process and the order
of administration. The statewide results shall be aggregated at the site and district level,
consistent with subdivision 1a.
    (g) In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:
    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides appropriate, technically sound accommodations or alternate
assessments;
    (2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;
    (3) state results on the American College Test; and
    (4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.

    Sec. 5. Minnesota Statutes 2011 Supplement, section 122A.40, subdivision 5, is
amended to read:
    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's
first teaching experience in Minnesota in a single district is deemed to be a probationary
period of employment, and, the probationary period in each district in which the teacher is
thereafter employed shall be one year. The school board must adopt a plan for written
evaluation of teachers during the probationary period that is consistent with subdivision
8. Evaluation must occur at least three times periodically throughout each school year
for a teacher performing services during that school year; the first evaluation must occur
within the first 90 days of teaching service. Days devoted to parent-teacher conferences,
teachers' workshops, and other staff development opportunities and days on which a
teacher is absent from school must not be included in determining the number of school
days on which a teacher performs services. Except as otherwise provided in paragraph (b),
during the probationary period any annual contract with any teacher may or may not be
renewed as the school board shall see fit. However, the board must give any such teacher
whose contract it declines to renew for the following school year written notice to that
effect before June July 1. If the teacher requests reasons for any nonrenewal of a teaching
contract, the board must give the teacher its reason in writing, including a statement
that appropriate supervision was furnished describing the nature and the extent of such
supervision furnished the teacher during the employment by the board, within ten days
after receiving such request. The school board may, after a hearing held upon due notice,
discharge a teacher during the probationary period for cause, effective immediately,
under section 122A.44.
(b) A board must discharge a probationary teacher, effective immediately, upon
receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
license has been revoked due to a conviction for child abuse or sexual abuse.
(c) A probationary teacher whose first three years of consecutive employment are
interrupted for active military service and who promptly resumes teaching consistent with
federal reemployment timelines for uniformed service personnel under United States
Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
for purposes of paragraph (a).
(d) A probationary teacher must complete at least 120 days of teaching service each
year during the probationary period. Days devoted to parent-teacher conferences, teachers'
workshops, and other staff development opportunities and days on which a teacher is
absent from school do not count as days of teaching service under this paragraph.
EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
later.

    Sec. 6. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
of the following grounds:
(1) immoral conduct, insubordination, or conviction of a felony;
(2) conduct unbecoming a teacher which requires the immediate removal of the
teacher from classroom or other duties;
(3) failure without justifiable cause to teach without first securing the written release
of the school board;
(4) gross inefficiency which the teacher has failed to correct after reasonable written
notice;
(5) willful neglect of duty; or
(6) continuing physical or mental disability subsequent to a 12 months leave of
absence and inability to qualify for reinstatement in accordance with subdivision 12.
For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
discriminatory practice described in section 363A.13.
Prior to discharging a teacher under this paragraph, the board must notify the
teacher in writing and state its ground for the proposed discharge in reasonable detail.
Within ten days after receipt of this notification the teacher may make a written request
for a hearing before the board and it shall be granted before final action is taken. The
board may, however, suspend a teacher with pay pending the conclusion of such the
hearing and determination of the issues raised in the hearing after charges have been
filed which constitute ground for discharge. If a teacher has been charged with a felony
and the underlying conduct that is the subject of the felony charge is a ground for a
proposed immediate discharge, the suspension pending the conclusion of the hearing and
determination of the issues may be without pay. If a hearing under this paragraph is held,
the board must reimburse the teacher for any salary or compensation withheld if the
final decision of the board or the arbitrator does not result in a penalty to or suspension,
termination, or discharge of the teacher.
(b) A board must discharge a continuing-contract teacher, effective immediately,
upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2010, section 123B.04, is amended to read:
123B.04 SITE DECISION-MAKING; INDIVIDUALIZED LEARNING
AGREEMENT; OTHER AGREEMENTS.
    Subdivision 1. Definition. "Education site" means a separate facility. A program
within a facility or within a district is an education site if the school board recognizes it
as a site.
    Subd. 1a. Individualized learning and instruction; improved student
achievement. To promote individualized learning and instruction and improve student
achievement under subdivisions 4 and 4a, a participating school board under this section
may consider how to:
(1) assist a school site to adapt instruction to the needs and aptitudes of individual
students, and establish goals and standards for individual students in addition to the state
academic standards applicable to all students;
(2) coordinate the pace of instruction and learning with the needs and aptitudes of
individual students at a school site;
(3) provide useful data and assist with research in developing and improving
innovative, cost-effective, research-based individualized learning, instruction, and
assessment under this section and section 124D.10;
(4) demonstrate and help evaluate instructional alternatives to age-based grade
progression;
(5) more effectively motivate students and teachers; and
(6) expand use of learning technology to support individualized learning, instruction,
assessment, and achievement.
    Subd. 2. Agreement. (a) The school board and a school site may enter into an
agreement under this section solely to develop and implement an individualized learning
and achievement contract under subdivision 4.
(a) (b) Upon the request of 60 percent of the licensed employees of a site or a school
site decision-making team, the school board shall enter into discussions to reach an
agreement concerning the governance, management, or control of the school. A school
site decision-making team may include the school principal, teachers in the school or
their designee, other employees in the school, representatives of pupils in the school, or
other members in the community. A school site decision-making team must include at
least one parent of a pupil in the school. For purposes of formation of a new site, a school
site decision-making team may be a team of teachers that is recognized by the board as
a site. The school site decision-making team shall include the school principal or other
person having general control and supervision of the school. The site decision-making
team must reflect the diversity of the education site. At least one-half of the members
shall be employees of the district, unless an employee is the parent of a student enrolled
in the school site, in which case the employee may elect to serve as a parent member of
the site team.
(b) (c) School site decision-making agreements must delegate powers, duties, and
broad management responsibilities to site teams and involve staff members, students as
appropriate, and parents in decision making.
(c) (d) An agreement shall include a statement of powers, duties, responsibilities,
and authority to be delegated to and within the site.
(d) (e) An agreement may include:
(1) an achievement contract according to subdivision 4;
(2) a mechanism to allow principals, a site leadership team, or other persons having
general control and supervision of the school, to make decisions regarding how financial
and personnel resources are best allocated at the site and from whom goods or services
are purchased;
(3) a mechanism to implement parental involvement programs under section
124D.895 and to provide for effective parental communication and feedback on this
involvement at the site level;
(4) a provision that would allow the team to determine who is hired into licensed
and nonlicensed positions;
(5) a provision that would allow teachers to choose the principal or other person
having general control;
(6) an amount of revenue allocated to the site under subdivision 3; and
(7) any other powers and duties determined appropriate by the board.
The school board of the district remains the legal employer under clauses (4) and (5).
(e) (f) Any powers or duties not delegated to the school site management team in the
school site management agreement shall remain with the school board.
(f) (g) Approved agreements shall be filed with the commissioner. If a school board
denies a request or the school site and school board fail to reach an agreement to enter
into a school site management agreement, the school board shall provide a copy of the
request and the reasons for its denial to the commissioner.
(g) (h) A site decision-making grant program is established, consistent with this
subdivision, to allow sites to implement an agreement that at least:
(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable
to the students at that site;
(2) includes a provision, consistent with current law and the collective bargaining
agreement in effect, that allows the site team to decide who is selected from within the
district for licensed and nonlicensed positions at the site and to make staff assignments
in the site; and
(3) includes a completed performance agreement under subdivision 4.
The commissioner shall establish the form and manner of the application for a grant
and annually, at the end of each fiscal year, report to the house of representatives and
senate committees having jurisdiction over education on the progress of the program.
    Subd. 3. Revenue and cost allocation. Revenue for a fiscal year received or
receivable by the district shall be allocated to education sites based on the agreement
between the school board and the site decision-making team. Revenue shall remain
allocated to each site until used by the site. The site teams and the board may enter an
agreement that permits the district to provide services and retain the revenue required to
pay for the services provided. The district remains responsible for legally entering into
contracts and expending funds. For the purposes of this subdivision, "allocation" means
that the determination of the use of the revenue shall be under the control of the site. The
district may charge the accounts of each site the actual costs of goods and services from
the general or capital funds attributable to the site.
    Subd. 4. Achievement contract. A school board may enter a written education
site achievement contract with each site decision-making team for the purpose of: (1)
setting individualized learning performance expectations and achievement measures and
short- and long-term educational goals for each student at that site, including the goals
for improvement in each area of; (2) recognizing each student's educational needs and
aptitudes and levels of academic attainment, whether on grade level or above or below
grade level, so as to improve student performance through such means as a cost-effective,
research-based formative assessment system designed to promote individualized learning
and assessment; (3) using student performance data to diagnose a student's academic
strengths and weaknesses and indicate to the student's teachers the specific skills and
concepts that need to be introduced to the student and developed through academic
instruction or applied learning, organized by strands within subject areas and linked to
state and local academic standards during the next year, a plan to assist consistent with
the student's short- and long-term educational goals; and (4) assisting the education site
if their progress in achieving student or contract goals are not achieved, and or other
performance expectations and or measures determined agreed to by the board and the site
decision-making team are not realized or implemented.
    Subd. 4a. Additional site agreements premised on successful achievement
contracts. A school board that enters into a written education achievement contract with a
school site under subdivision 4 where the student performance data at the site demonstrate
at least three consecutive school years of improved student achievement consistent with
the terms of the achievement contract may seek to establish a similar achievement contract
with other school sites in the district.
    Subd. 5. Commissioner's role. The commissioner of education, in consultation
with appropriate educational organizations, shall:
(1) upon request, provide technical support for districts and sites with agreements
under this section;
(2) conduct and compile research on the effectiveness of site decision making; and
(3) periodically report on and evaluate the effectiveness of site management
agreements on a statewide basis.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2011 Supplement, section 123B.147, subdivision 3, is
amended to read:
    Subd. 3. Duties; evaluation. (a) The principal shall provide administrative,
supervisory, and instructional leadership services, under the supervision of the
superintendent of schools of the district and according to the policies, rules, and
regulations of the school board, for the planning, management, operation, and evaluation
of the education program of the building or buildings to which the principal is assigned.
(b) To enhance a principal's leadership skills and support and improve teaching
practices, school performance, and student achievement, a district must develop and
implement a performance-based system for annually evaluating school principals assigned
to supervise a school building within the district. The evaluation must be designed
to improve teaching and learning by supporting the principal in shaping the school's
professional environment and developing teacher quality, performance, and effectiveness.
The annual evaluation must:
(1) support and improve a principal's instructional leadership, organizational
management, and professional development, and strengthen the principal's capacity in the
areas of instruction, supervision, evaluation, and teacher development;
(2) include formative and summative evaluations;
(3) be consistent with a principal's job description, a district's long-term plans and
goals, and the principal's own professional multiyear growth plans and goals, all of which
must support the principal's leadership behaviors and practices, rigorous curriculum,
school performance, and high-quality instruction;
(4) include on-the-job observations and previous evaluations;
(5) allow surveys to help identify a principal's effectiveness, leadership skills and
processes, and strengths and weaknesses in exercising leadership in pursuit of school
success;
(6) use longitudinal data on student academic growth as an 35 percent of the
evaluation component and incorporate district achievement goals and targets;
(7) be linked to professional development that emphasizes improved teaching and
learning, curriculum and instruction, student learning, and a collaborative professional
culture; and
(8) for principals not meeting standards of professional practice or other criteria
under this subdivision, implement a plan to improve the principal's performance and
specify the procedure and consequence if the principal's performance is not improved.
The provisions of this paragraph are intended to provide districts with sufficient
flexibility to accommodate district needs and goals related to developing, supporting,
and evaluating principals.
EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
later.

    Sec. 9. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3, is
amended to read:
    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
    "Application" to receive approval as an authorizer means the proposal an eligible
authorizer submits to the commissioner under paragraph (c) before that authorizer is able
to submit any affidavit to charter to a school.
    "Application" under subdivision 4 means the charter school business plan a
school developer submits to an authorizer for approval to establish a charter school that
documents the school developer's mission statement, school purposes, program design,
financial plan, governance and management structure, and background and experience,
plus any other information the authorizer requests. The application also shall include a
"statement of assurances" of legal compliance prescribed by the commissioner.
    "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under subdivision 4 attesting to its review and
approval process before chartering a school.
    (b) The following organizations may authorize one or more charter schools:
    (1) a school board; intermediate school district school board; education district
organized under sections 123A.15 to 123A.19;
    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution, and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose, that:
    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
Foundations;
    (ii) is registered with the attorney general's office; and
    (iii) is incorporated in the state of Minnesota and has been operating continuously
for at least five years but does not operate a charter school;
    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
four-year degrees and is registered with the Minnesota Office of Higher Education under
chapter 136A; community college, state university, or technical college governed by the
Board of Trustees of the Minnesota State Colleges and Universities; or the University
of Minnesota;
    (4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
of 1986, may authorize one or more charter schools if the charter school has operated
for at least three years under a different authorizer and if the nonprofit corporation has
existed for at least 25 years; or
    (5) single-purpose authorizers that are charitable, nonsectarian organizations formed
under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
of Minnesota whose sole purpose is to charter schools. Eligible organizations interested
in being approved as an authorizer under this paragraph must submit a proposal to the
commissioner that includes the provisions of paragraph (c) and a five-year financial plan.
Such authorizers shall consider and approve applications using the criteria provided in
subdivision 4 and shall not limit the applications it solicits, considers, or approves to any
single curriculum, learning program, or method.
    (c) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting any affidavit to the commissioner to charter
a school. The application for approval as a charter school authorizer must demonstrate
the applicant's ability to implement the procedures and satisfy the criteria for chartering a
school under this section. The commissioner must approve or disapprove an application
within 45 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the specific deficiencies
in writing and the applicant then has 20 business days to address the deficiencies to the
commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
business days to make a final decision to approve or disapprove the application. Failing to
address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
be an authorizer. The commissioner, in establishing criteria for approval, must consider
the applicant's:
    (1) capacity and infrastructure;
    (2) application criteria and process;
    (3) contracting process;
    (4) ongoing oversight and evaluation processes; and
    (5) renewal criteria and processes.
    (d) An applicant must include in its application to the commissioner to be an
approved authorizer at least the following:
    (1) how chartering schools is a way for the organization to carry out its mission;
    (2) a description of the capacity of the organization to serve as an authorizer,
including the personnel who will perform the authorizing duties, their qualifications, the
amount of time they will be assigned to this responsibility, and the financial resources
allocated by the organization to this responsibility;
    (3) a description of the application and review process the authorizer will use to
make decisions regarding the granting of charters;
    (4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6;
    (5) the process to be used for providing ongoing oversight of the school consistent
with the contract expectations specified in clause (4) that assures that the schools chartered
are complying with both the provisions of applicable law and rules, and with the contract;
    (6) a description of the criteria and process the authorizer will use to grant expanded
applications under subdivision 4, paragraph (j);
    (7) the process for making decisions regarding the renewal or termination of
the school's charter based on evidence that demonstrates the academic, organizational,
and financial competency of the school, including its success in increasing student
achievement and meeting the goals of the charter school agreement; and
    (8) an assurance specifying that the organization is committed to serving as an
authorizer for the full five-year term.
    (e) A disapproved applicant under this section may resubmit an application during a
future application period.
    (f) If the governing board of an approved authorizer that has chartered multiple
schools votes to withdraw as an approved authorizer for a reason unrelated to any
cause under subdivision 23, the authorizer must notify all its chartered schools and the
commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in
the next calendar year. The commissioner may approve the transfer of a charter school
to a new authorizer under this paragraph after the new authorizer submits an affidavit to
the commissioner.
    (g) The authorizer must participate in department-approved training.
    (h) An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
authorizer under this section. For purposes of this paragraph, an authorizer that fails to
submit a timely application is ineligible to charter a school.
    (i) The commissioner shall review an authorizer's performance every five years in
a manner and form determined by the commissioner and may review an authorizer's
performance more frequently at the commissioner's own initiative or at the request of a
charter school operator, charter school board member, or other interested party. The
commissioner, after completing the review, shall transmit a report with findings to the
authorizer. If, consistent with this section, the commissioner finds that an authorizer has
not fulfilled the requirements of this section, the commissioner may subject the authorizer
to corrective action, which may include terminating the contract with the charter school
board of directors of a school it chartered. The commissioner must notify the authorizer
in writing of any findings that may subject the authorizer to corrective action and
the authorizer then has 15 business days to request an informal hearing before the
commissioner takes corrective action. If the commissioner terminates a contract between
an authorizer and a charter school under this paragraph, the commissioner may assist the
charter school in acquiring a new authorizer.
    (j) The commissioner may at any time take corrective action against an authorizer,
including terminating an authorizer's ability to charter a school for:
    (1) failing to demonstrate the criteria under paragraph (c) under which the
commissioner approved the authorizer;
    (2) violating a term of the chartering contract between the authorizer and the charter
school board of directors;
    (3) unsatisfactory performance as an approved authorizer; or
    (4) any good cause shown that provides the commissioner a legally sufficient reason
to take corrective action against an authorizer.

    Sec. 10. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is
amended to read:
    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
a school developer, may charter a licensed teacher under section 122A.18, subdivision
1
, or a group of individuals that includes one or more licensed teachers under section
122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the
authorizer's affidavit under paragraph (b). The school must be organized and operated as a
nonprofit corporation under chapter 317A and the provisions under the applicable chapter
shall apply to the school except as provided in this section.
    Notwithstanding sections 465.717 and 465.719, a school district, subject to this
section and section 124D.11, may create a corporation for the purpose of establishing a
charter school.
    (b) Before the operators may establish and operate a school, the authorizer must file
an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. The affidavit must
state the terms and conditions under which the authorizer would charter a school and
how the authorizer intends to oversee the fiscal and student performance of the charter
school and to comply with the terms of the written contract between the authorizer
and the charter school board of directors under subdivision 6. The commissioner must
approve or disapprove the authorizer's affidavit within 60 business days of receipt of the
affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify
the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business
days to address the deficiencies. If the authorizer does not address deficiencies to the
commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
commissioner approval precludes an authorizer from chartering the school that is the
subject of this affidavit.
    (c) The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.
    (d) The operators authorized to organize and operate a school, before entering into a
contract or other agreement for professional or other services, goods, or facilities, must
incorporate as a nonprofit corporation under chapter 317A and must establish a board of
directors composed of at least five members who are not related parties until a timely
election for members of the ongoing charter school board of directors is held according to
the school's articles and bylaws under paragraph (f). A charter school board of directors
must be composed of at least five members who are not related parties. Staff members
employed at the school, including teachers providing instruction under a contract with a
cooperative, and all parents or legal guardians of children enrolled in the school are the
voters eligible to elect the members of the school's board of directors. A charter school
must notify eligible voters of the school board election dates at least 30 days before the
election. Board of director meetings must comply with chapter 13D.
    (e) Upon the request of an individual, the charter school must make available
in a timely fashion A charter school shall publish and maintain on the school's official
Web site: (1) the minutes of meetings of the board of directors, and of members and
committees having any board-delegated authority;, for at least one calendar year from the
date of publication; (2) directory information for members of the board of directors and
committees having board-delegated authority; and (3) identifying and contact information
for the school's authorizer. Identifying and contact information for the school's authorizer
must be included in other school materials made available to the public. Upon request of
an individual, the charter school must also make available in a timely fashion financial
statements showing all operations and transactions affecting income, surplus, and deficit
during the school's last annual accounting period; and a balance sheet summarizing assets
and liabilities on the closing date of the accounting period. A charter school also must post
on its official Web site information identifying its authorizer and indicate how to contact
that authorizer and include that same information about its authorizer in other school
materials that it makes available to the public.
    (f) Every charter school board member shall attend department-approved ongoing
training throughout the member's term on board governance, including training on
the board's role and responsibilities, employment policies and practices, and financial
management. A board member who does not begin the required initial training within six
months after being seated and complete that training within 12 months of being seated on
the board is ineligible to continue to serve as a board member. The school shall include in
its annual report the training attended by each board member during the previous year.
    (g) The ongoing board must be elected before the school completes its third year of
operation. Board elections must be held during the school year but may not be conducted
on days when the school is closed for holidays or vacations. The charter school board of
directors shall be composed of at least five nonrelated members and include: (i) at least one
licensed teacher employed at the school or a licensed teacher providing instruction under
contract between the charter school and a cooperative; (ii) the parent or legal guardian
of a student enrolled in the charter school who is not an employee of the charter school;
and (iii) an interested community member who is not employed by the charter school and
does not have a child enrolled in the school. The board may be a teacher majority board
composed of teachers described in this paragraph. The chief financial officer and the chief
administrator may only serve as ex-officio nonvoting board members and may not serve
as a voting member of the board. Charter school employees shall not serve on the board
unless item (i) applies. Contractors providing facilities, goods, or services to a charter
school shall not serve on the board of directors of the charter school. Board bylaws shall
outline the process and procedures for changing the board's governance model, consistent
with chapter 317A. A board may change its governance model only:
    (1) by a majority vote of the board of directors and the licensed teachers employed
by the school, including licensed teachers providing instruction under a contract between
the school and a cooperative; and
    (2) with the authorizer's approval.
    Any change in board governance must conform with the board structure established
under this paragraph.
    (h) The granting or renewal of a charter by an authorizer must not be conditioned
upon the bargaining unit status of the employees of the school.
    (i) The granting or renewal of a charter school by an authorizer must not be
contingent on the charter school being required to contract, lease, or purchase services
from the authorizer. Any potential contract, lease, or purchase of service from an
authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.
    (j) An authorizer may permit the board of directors of a charter school to expand
the operation of the charter school to additional sites or to add additional grades at the
school beyond those described in the authorizer's original affidavit as approved by
the commissioner only after submitting a supplemental affidavit for approval to the
commissioner in a form and manner prescribed by the commissioner. The supplemental
affidavit must document that:
    (1) the proposed expansion plan demonstrates need and projected enrollment;
    (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
students' improved academic performance and growth on statewide assessments under
chapter 120B;
    (3) the charter school is financially sound and the financing it needs to implement
the proposed expansion exists; and
    (4) the charter school has the governance structure and management capacity to
carry out its expansion.
    (k) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
the supplemental affidavit and the authorizer then has 20 business days to address, to the
commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
may not expand grades or add sites until the commissioner has approved the supplemental
affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.

    Sec. 11. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is
amended to read:
    Subd. 6. Charter contract. The authorization for a charter school must be in the
form of a written contract signed by the authorizer and the board of directors of the charter
school. The contract must be completed within 45 business days of the commissioner's
approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
copy of the signed charter contract within ten business days of its execution. The contract
for a charter school must be in writing and contain at least the following:
    (1) a declaration of the purposes in subdivision 1 that the school intends to carry out
and how the school will report its implementation of those purposes;
    (2) a description of the school program and the specific academic and nonacademic
outcomes that pupils must achieve;
    (3) a statement of admission policies and procedures;
    (4) a governance, management, and administration plan for the school;
    (5) signed agreements from charter school board members to comply with all
federal and state laws governing organizational, programmatic, and financial requirements
applicable to charter schools;
    (6) the criteria, processes, and procedures that the authorizer will use for ongoing
oversight of operational, financial, and academic performance;
    (7) the performance evaluation that is a prerequisite for reviewing a charter contract
under subdivision 15;
    (8) types and amounts of insurance liability coverage to be obtained by the charter
school;
    (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold
harmless the authorizer and its officers, agents, and employees from any suit, claim,
or liability arising from any operation of the charter school, and the commissioner and
department officers, agents, and employees notwithstanding section 3.736;
    (10) the term of the initial contract, which may be up to three five years plus an
additional preoperational planning year, and up to five years for a renewed contract or a
contract with a new authorizer after a transfer of authorizers, if warranted by the school's
academic, financial, and operational performance;
    (11) how the board of directors or the operators of the charter school will provide
special instruction and services for children with a disability under sections 125A.03
to 125A.24, and 125A.65, a description of the financial parameters within which the
charter school will operate to provide the special instruction and services to children
with a disability;
    (12) the process and criteria the authorizer intends to use to monitor and evaluate the
fiscal and student performance of the charter school, consistent with subdivision 15; and
    (13) the plan for an orderly closing of the school under chapter 317A, if the closure
is a termination for cause, a voluntary termination, or a nonrenewal of the contract, and
that includes establishing the responsibilities of the school board of directors and the
authorizer and notifying the commissioner, authorizer, school district in which the charter
school is located, and parents of enrolled students about the closure, the transfer of student
records to students' resident districts, and procedures for closing financial operations.

    Sec. 12. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 13,
is amended to read:
    Subd. 13. Length of school year. A charter school must provide instruction each
year for at least the number of days hours required by section 120A.41. It may provide
instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.

    Sec. 13. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15,
is amended to read:
    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
evaluation of the school's performance before the authorizer renews the charter contract.
The department must review and comment on the authorizer's evaluation process at the
time the authorizer submits its application for approval and each time the authorizer
undergoes its five-year review under subdivision 3, paragraph (e).
    (b) An authorizer shall monitor and evaluate the fiscal, operational, and student
performance of the school, and may for this purpose annually assess a charter school
a fee according to paragraph (c). The agreed-upon fee structure must be stated in the
charter school contract.
    (c) The fee that each charter school pays to an authorizer each year is the greater of:
    (1) the basic formula allowance for that year; or
    (2) the lesser of:
    (i) the maximum fee factor times the basic formula allowance for that year; or
    (ii) the fee factor times the basic formula allowance for that year times the charter
school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
    (d) The department and any charter school it charters must not assess or pay a fee
under paragraphs (b) and (c) An authorizer may not assess a fee for any required services
other than as provided in this subdivision.
    (e) For the preoperational planning period, the authorizer may assess a charter school
a fee equal to the basic formula allowance.
    (f) By September 30 of each year, an authorizer shall submit to the commissioner
a statement of expenditures related to chartering activities during the previous school
year ending June 30. A copy of the statement shall be given to all schools chartered by
the authorizer.

    Sec. 14. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a,
is amended to read:
    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
existing facility to serve as a school or (ii) to construct a new school facility, an authorizer
must submit an affidavit to the commissioner for approval in the form and manner the
commissioner prescribes, and consistent with paragraphs (b) and (c) or (d).
    (b) An affiliated nonprofit building corporation under this subdivision must:
    (1) be incorporated under section 317A and comply with applicable Internal
Revenue Service regulations;
(2) comply with applicable Internal Revenue Service regulations, including
regulations for "supporting organizations" as defined by the Internal Revenue Service;
    (2) (3) submit to the commissioner each fiscal year a list of current board members
and a copy of its annual audit; and
    (3) (4) comply with government data practices law under chapter 13.
An affiliated nonprofit building corporation must not serve as the leasing agent for
property or facilities it does not own. A charter school that leases a facility from an
affiliated nonprofit building corporation that does not own the leased facility is ineligible
to receive charter school lease aid. The state is immune from liability resulting from a
contract between a charter school and an affiliated nonprofit building corporation.
    (c) A charter school may organize an affiliated nonprofit building corporation to
renovate or purchase an existing facility to serve as a school if the charter school:
    (1) has been operating for at least five consecutive school years;
    (2) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;
    (3) has a long-range strategic and financial plan;
    (4) completes a feasibility study of available buildings; and
    (5) documents enrollment projections and the need to use an affiliated building
corporation to renovate or purchase an existing facility to serve as a school; and
(6) has a plan for the renovation or purchase, which describes the parameters and
budget for the project.
    (d) A charter school may organize an affiliated nonprofit building corporation to
expand an existing school facility or construct a new school facility if the charter school:
    (1) demonstrates the lack of facilities available to serve as a school;
    (2) has been operating for at least eight consecutive school years;
    (3) has had a net positive unreserved general fund balance as of June 30 in the
preceding eight five fiscal years;
    (4) completes a feasibility study of facility options;
    (5) has a long-range strategic and financial plan that includes enrollment projections
and demonstrates the need for constructing a new school facility; and
    (6) has a plan for the expansion or new school facility, which describes the
parameters and budget for the project.
(e) A charter school or an affiliated nonprofit building corporation organized by a
charter school must not initiate an installment contract for purchase, or a lease agreement,
or solicit bids for new construction, expansion, or remodeling of an educational facility
that requires an expenditure in excess of $1,400,000, unless it meets the criteria in
paragraph (b) and paragraph (c) or (d), as applicable, and receives a positive review and
comment from the commissioner under section 123B.71.

    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.10, is amended by adding
a subdivision to read:
    Subd. 27. Collaboration between charter school and school district. (a) A charter
school board may voluntarily enter into a two-year, renewable agreement for collaboration
to enhance student achievement with a school district within whose geographic boundary
it operates.
(b) A school district need not be an approved authorizer to enter into a collaboration
agreement with a charter school. A charter school need not be authorized by the school
district with which it seeks to collaborate.
(c) A charter school authorizer is prohibited from requiring a collaboration agreement
as a condition of entering into or renewing a charter contract as defined in subdivision 6.
(d) Nothing in this subdivision or in the collaboration agreement may impact in any
way, the authority or autonomy of the charter school.
(e) Nothing in this subdivision or in the collaboration agreement shall cause the state
to pay twice for the same student, service or facility or otherwise impact state funding, or
the flow thereof, to the school district or the charter school.
(f) The collaboration agreement may include, but need not be limited to,
collaboration regarding facilities, transportation, training, student achievement,
assessments, mutual performance standards and other areas of mutual agreement.
(g) The school district may include the academic performance of the students of a
collaborative charter school site operating within the geographic boundaries of the school
district, for purposes of student assessment and reporting to the state.
(h) Districts, authorizers, or charter schools entering into a collaborative agreement
are equally and collectively subject to the same state and federal accountability measures
for student achievement, school performance outcomes, and school improvement
strategies. The collaborative agreement and all accountability measures must be posted on
the district, charter school, and authorizer Web site.

    Sec. 16. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 2, is
amended to read:
    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each
school is equal to the product of the school's proficiency allowance times the number
of third grade pupils at the school on October 1 of the previous fiscal year. A school's
proficiency allowance is equal to the percentage of students in each building that meet
or exceed proficiency on the third grade reading Minnesota Comprehensive Assessment,
averaged across the previous three test administrations, times $85 $530.

    Sec. 17. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 3, is
amended to read:
    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is
equal to the product of the school's growth allowance times the number of fourth grade
pupils enrolled at the school on October 1 of the previous fiscal year. A school's growth
allowance is equal to the percentage of students at that school making medium or high
growth, under section 120B.299, on the fourth grade reading Minnesota Comprehensive
Assessment, averaged across the previous three test administrations, times $85 $530.

    Sec. 18. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is
amended to read:
    Subdivision 1. To lease building or land. (a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for
school storage or furniture repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
apply to the commissioner for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under this subdivision must contain
financial justification for the proposed levy, the terms and conditions of the proposed
lease, and a description of the space to be leased and its proposed use.
    (b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.
    (c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.
    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.
    (e) The total levy under this subdivision for a district for any year must not exceed
$150 times the resident pupil units for the fiscal year to which the levy is attributable.
    (f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.
    (g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:
    (1) the school district has been experiencing pupil enrollment growth in the
preceding five years;
    (2) the purpose of the increased levy is in the long-term public interest;
    (3) the purpose of the increased levy promotes colocation of government services;
and
    (4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.
    (h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not exceed
$43 times the adjusted marginal cost pupil units of the member districts. This authority is
in addition to any other authority authorized under this section.
    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
2012 to 2023, a district that is a member of the "Technology and Information Education
Systems" data processing joint board, that finds it economically advantageous to enter into
a lease agreement to finance improvements to a building and land for a group of school
districts or special school districts for staff development purposes, may levy for its portion
of lease costs attributed to the district within the total levy limit in paragraph (e). The total
levy authority under this paragraph shall not exceed $632,000.
(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
purpose of leasing administrative space if the district can demonstrate to the satisfaction of
the commissioner that the lease cost for the administrative space is no greater than the
lease cost for instructional space that the district would otherwise lease. The commissioner
must deny this levy authority unless the district passes a resolution stating its intent to
lease instructional space under this section if the commissioner does not grant authority
under this paragraph. The resolution must also certify that the lease cost for administrative
space under this paragraph is no greater than the lease cost for the district's proposed
instructional lease.
EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

    Sec. 19. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
16, is amended to read:
    Subd. 16. Student organizations. For student organizations:

$
725,000
.....
2012

$
725,000
.....
2013
$49,000 each year is for student organizations serving health occupations (HUSA)
(HOSA).
$46,000 each year is for student organizations serving service occupations (HERO).
$106,000 each year is for student organizations serving trade and industry
occupations (SkillsUSA, secondary and postsecondary).
$101,000 each year is for student organizations serving business occupations
(DECA, BPA, secondary and postsecondary).
$158,000 each year is for student organizations serving agriculture occupations
(FFA, PAS).
$150,000 each year is for student organizations serving family and consumer science
occupations (FCCLA).
$115,000 each year is for student organizations serving marketing occupations
(DEX) (DECA, DECA Collegiate).
Any balance in the first year does not cancel but is available in the second year.

    Sec. 20. ONE-YEAR LICENSES.
Notwithstanding Minnesota Statutes 2010, section 122A.18, subdivision 2, as
amended by Laws 2012, chapter 122, section 2, a person who has:
(1) obtained a one-year license to teach; and
(2) taught during the 2011-2012 school year;
may be approved by the Board of Teaching to continue to teach through the end of the
2012-2013 school year.
EFFECTIVE DATE.This section is effective retroactively from February 22, 2012.

    Sec. 21. REPEALER.
Minnesota Statutes 2010, sections 120A.28; 120B.019; 120B.31, subdivision 3;
121A.60, subdivisions 3 and 4; 121A.62; 121A.63; and 122A.18, subdivision 9, are
repealed.

ARTICLE 3
SPECIAL EDUCATION AND OTHER PROGRAMS

    Section 1. Minnesota Statutes 2010, section 125A.14, is amended to read:
125A.14 EXTENDED SCHOOL YEAR.
    A district may provide extended school year services for children with a disability
living within the district and nonresident children temporarily placed in the district
pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the child
with a disability is placed in the district, whichever is later, the providing district shall
give notice to the district of residence of any nonresident children temporarily placed in
the district pursuant to section 125A.15 or 125A.16, of its intention to provide these
programs. Notwithstanding any contrary provisions in sections section 125A.15 and
125A.16, the district providing the special instruction and services must apply for special
education aid for the extended school year services. The unreimbursed actual cost of
providing the program for nonresident children with a disability, including the cost of
board and lodging, may be billed to the district of the child's residence and must be paid
by the resident district. Transportation costs must be paid by the district responsible
for providing transportation pursuant to section 125A.15 or 125A.16 and transportation
aid must be paid to that district.

    Sec. 2. Minnesota Statutes 2010, section 125A.19, is amended to read:
125A.19 NONRESIDENT EDUCATION; BILLING.
All tuition billing for the education of nonresident children pursuant to sections
125A.03 to 125A.24, 125A.51, 125A.515, and 125A.65 must be done on uniform forms
prescribed by the commissioner. The billing shall contain an itemized statement of costs
that are being charged to the district of residence. One copy of each billing must be filed
with the commissioner.

    Sec. 3. Minnesota Statutes 2010, section 125A.515, subdivision 1, is amended to read:
    Subdivision 1. Approval of education programs. The commissioner shall approve
on-site education programs for placement of children and youth in residential facilities
including detention centers, before being licensed by the Department of Human Services
or the Department of Corrections. Education programs in these facilities shall conform to
state and federal education laws including the Individuals with Disabilities Education Act
(IDEA). This section applies only to placements in facilities licensed by the Department of
Human Services or the Department of Corrections. For purposes of this section, "on-site
education program" means the educational services provided directly on the grounds of
the care and treatment facility to children and youth placed for care and treatment.

    Sec. 4. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 8,
is amended to read:
    Subd. 8. Early childhood education scholarships. For grants to early childhood
education scholarships for public or private early childhood preschool programs for
children ages 3 to 5:

$
4,000,0002,000,000
.....
2013
(a) All children whose parents or legal guardians meet the eligibility requirements
of paragraph (b) established by the commissioner are eligible to receive early childhood
education scholarships under this section.
(b) A parent or legal guardian is eligible for an early childhood education scholarship
if the parent or legal guardian:
(1) has a child three or four years of age on September 1, beginning in calendar
year 2012; and
(2)(i) has income equal to or less than 47 percent of the state median income in the
current calendar year; or
(ii) can document their child's identification through another public funding
eligibility process, including the Free and Reduced Price Lunch Program, National School
Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal
Improving Head Start for School Readiness Act of 2007; Minnesota family investment
program under chapter 256J; and child care assistance programs under chapter 119B.
Each year, if this appropriation is insufficient to provide early childhood education
scholarships to all eligible children, the Department of Education shall make scholarships
available on a first-come, first-served basis.
The commissioner of education shall submit a written report to the education
committees of the legislature by January 15, 2012, describing its plan for implementation
of scholarships under this subdivision for the 2012-2013 school year.
Any balance in the first year does not cancel but is available in the second year.
The base for this program is $2,000,000 $3,000,000 each year.

    Sec. 5. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Parent-child home program. For a grant to the evidence-based early
literacy parent-child home program:

$
250,000
.....
2013
This is a onetime appropriation.

    Sec. 6. REPEALER.
(a) Minnesota Statutes 2010, sections 125A.16; 125A.80; and 475.53, subdivision
5, are repealed.
(b) Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; 124D.16,
subdivisions 6 and 7; and 124D.20, subdivisions 11 and 12, are repealed for revenue for
fiscal year 2014 and later.
Presented to the governor April 24, 2012
Signed by the governor April 27, 2012, 2:11 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569