1.1 	A bill for an act
1.2 	relating to education; requiring school districts to
1.3 	provide students with information about online
1.4 	learning; providing funding for online learning and
1.5 	for students' enrolling school districts;
1.6 	appropriating money; amending Minnesota Statutes 2004,
1.7 	sections 124D.095, subdivisions 4, 6, 8; 126C.05,
1.8 	subdivision 19; repealing Minnesota Statutes 2004,
1.9 	section 124D.095, subdivision 9.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	Section 1. Minnesota Statutes 2004, section 124D.095,
1.12 	subdivision 4, is amended to read:
1.13 		Subd. 4.On-line learning parameters.  (a) An on-line
1.14 	learning student must receive academic credit for completing the
1.15 	requirements of an on-line learning course or program.
1.16 	Secondary credits granted to an on-line learning student must be
1.17 	counted toward the graduation and credit requirements of the
1.18 	enrolling district.  The enrolling district must apply the same
1.19 	graduation requirements to all students, including on-line
1.20 	learning students, and must continue to provide nonacademic
1.21 	services to on-line learning students.  If a student completes
1.22 	an on-line learning course or program that meets or exceeds a
1.23 	graduation standard or grade progression requirement at the
1.24 	enrolling district, that standard or requirement is met.  The
1.25 	enrolling district must use the same criteria for accepting
1.26 	on-line learning credits or courses as it does for accepting
1.27 	credits or courses for transfer students under section 124D.03,
2.1 	subdivision 9.  The enrolling district may reduce the teacher
2.2 	contact time of an on-line learning student in proportion to the
2.3 	number of on-line learning courses the student takes from an
2.4 	on-line learning provider that is not the enrolling district.
2.5 	(b) An on-line learning student may:
2.6 	(1) enroll during a single school year in a maximum of 12
2.7 	semester-long courses or their equivalent delivered by an
2.8 	on-line learning provider or the enrolling district;
2.9 	(2) complete course work at a grade level that is different
2.10 	from the student's current grade level; and
2.11 	(3) enroll in additional courses with the on-line learning
2.12 	provider under a separate agreement that includes terms for
2.13 	payment of any tuition or course fees.
2.14 	(c) A student with a disability may enroll in an on-line
2.15 	learning course or program if the student's IEP team determines
2.16 	that on-line learning is appropriate education for the student.
2.17 	(d) An on-line learning student has the same access to the
2.18 	computer hardware and education software available in a school
2.19 	as all other students in the enrolling district.  An on-line
2.20 	learning provider must assist an on-line learning student whose
2.21 	family qualifies for the education tax credit under section
2.22 	290.0674 to acquire computer hardware and educational software
2.23 	for on-line learning purposes.
2.24 	(e) An enrolling district may offer on-line learning to its
2.25 	enrolled students.  Such on-line learning does not generate
2.26 	on-line learning funds under this section.  An enrolling
2.27 	district that offers on-line learning only to its enrolled
2.28 	students is not subject to the reporting requirements or review
2.29 	criteria under subdivision 7.  A teacher with a Minnesota
2.30 	license must assemble and deliver instruction to enrolled
2.31 	students receiving on-line learning from an enrolling district.
2.32 	The instruction may include curriculum developed by persons
2.33 	other than a teacher with a Minnesota license.
2.34 	(f) An on-line learning provider that is not the enrolling
2.35 	district is subject to the reporting requirements and review
2.36 	criteria under subdivision 7.  A teacher with a Minnesota
3.1 	license must assemble and deliver instruction to on-line
3.2 	learning students~~.~~A teacher who does not hold a Minnesota
3.3 	license may assemble and deliver instruction to online learning
3.4 	students if the teacher shows evidence of:
3.5 	(1) employment by the online provider providing the online
3.6 	course; and 
3.7 	(2) preservice or in-service training in distance education
3.8 	tools and techniques from an accredited public or private
3.9 	institution;
3.10 	(3) licensure in another state in the subject and grade
3.11 	level in which they are teaching; or 
3.12 	(4) employment as a professor or instructor at an
3.13 	accredited postsecondary institution and assignment by the
3.14 	online provider to teach an online course in the teacher's area
3.15 	of expertise.
3.16 	A teacher with a Minnesota license in any subject area at the
3.17 	district of enrollment must supervise and mentor a student
3.18 	enrolled in a course taught by a teacher qualified under clauses
3.19 	(1) to (4).The instruction may include curriculum developed by
3.20 	persons other than a teacher with a Minnesota license. ~~Unless~~
3.21 	~~the commissioner grants a waiver,~~
3.22 	(g) A teacher providing on-line learning instruction must
3.23 	not instruct more than ~~40~~ 30 students in any one on-line
3.24 	learning course or program.

3.25 	Sec. 2. Minnesota Statutes 2004, section 124D.095,
3.26 	subdivision 6, is amended to read:
3.27 		Subd. 6.Information. By March 1 of each year,school
3.28 	districts and charter schools must ~~make available~~ provide 
3.29 	information in writing about online learning, including, at
3.30 	least, a list of department approved online learning providers,
3.31 	and online learning courses and programs certified by the
3.32 	department,to all ~~interested people~~ students in the district or
3.33 	charter school.

3.34 	Sec. 3. Minnesota Statutes 2004, section 124D.095,
3.35 	subdivision 8, is amended to read:
3.36 		Subd. 8.Financial arrangements.  (a) For a student
4.1 	enrolled in an on-line learning course, the department must
4.2 	calculate average daily membership and make payments according
4.3 	to this subdivision.
4.4 	(b) The initial on-line learning average daily membership
4.5 	equals 1/12 for each semester course or a proportionate amount
4.6 	for courses of different lengths.  The adjusted on-line learning
4.7 	average daily membership equals the initial on-line learning
4.8 	average daily membership times .88.
4.9 	(c) No on-line learning average daily membership shall be
4.10 	generated if:  (1) the student does not complete the on-line
4.11 	learning course, or (2) the student is enrolled in on-line
4.12 	learning provided by the enrolling district ~~and the student was~~
4.13 	~~enrolled in a Minnesota public school for the school year before~~
4.14 	~~the school year in which the student first enrolled in on-line~~
4.15 	~~learning~~.
4.16 	(d) On-line learning average daily membership under this
4.17 	subdivision for a student currently enrolled in a Minnesota
4.18 	public school ~~and who was enrolled in a Minnesota public school~~
4.19 	~~for the school year before the school year in which the student~~
4.20 	~~first enrolled in on-line learning~~ shall be used only for
4.21 	computing average daily membership according to section 126C.05,
4.22 	subdivision 19, paragraph (a), clause (ii), and for computing
4.23 	on-line learning aid according to section ~~126C.24~~ 124D.096.
4.24 	~~(e) On-line learning average daily membership under this~~
4.25 	~~subdivision for students not included in paragraph (c) or (d)~~
4.26 	~~shall be used only for computing average daily membership~~
4.27 	~~according to section 126C.05, subdivision 19, paragraph (a),~~
4.28 	~~clause (ii), and for computing payments under paragraphs (f) and~~
4.29 	~~(g).~~
4.30 	~~(f) Subject to the limitations in this subdivision, the~~
4.31 	~~department must pay an on-line learning provider an amount equal~~
4.32 	~~to the product of the adjusted on-line learning average daily~~
4.33 	~~membership for students under paragraph (e) times the student~~
4.34 	~~grade level weighting under section 126C.05, subdivision 1,~~
4.35 	~~times the formula allowance.~~
4.36 	~~(g) The department must pay each on-line learning provider~~
5.1 	~~100 percent of the amount in paragraph (f) within 45 days of~~
5.2 	~~receiving final enrollment and course completion information~~
5.3 	~~each quarter or semester.~~
5.4 	
EFFECTIVE DATE. This section is effective for revenue for
5.5 	fiscal year 2006.

5.6 	Sec. 4. Minnesota Statutes 2004, section 126C.05,
5.7 	subdivision 19, is amended to read:
5.8 		Subd. 19.On-line learning students. ~~(a)~~ The average
5.9 	daily membership for a public school pupil generating on-line
5.10 	learning average daily membership according to section 124D.095,
5.11 	subdivision 8, paragraph (b), equals the sum of:  (1) the ratio
5.12 	of the sum of the number of instructional hours the pupil is
5.13 	enrolled in a regular classroom setting at the enrolling school
5.14 	to the actual number of instructional hours in the school year
5.15 	at the enrolling school, plus (2)~~.12~~ .88 times the initial
5.16 	on-line learning average daily membership according to section
5.17 	124D.095, subdivision 8, paragraph (b).
5.18 	~~(b) When the sum of the average daily membership under~~
5.19 	~~paragraph (a) and the adjusted on-line learning average daily~~
5.20 	~~membership under section 124D.095, subdivision 8, paragraph (b),~~
5.21 	~~exceeds the maximum allowed for the student under subdivision 8~~
5.22 	~~or 15, as applicable, the average daily membership under~~
5.23 	~~paragraph (a) shall be reduced by the excess over the maximum,~~
5.24 	~~but shall not be reduced below .12.  The adjusted on-line~~
5.25 	~~learning average daily membership according to section 124D.095,~~
5.26 	~~subdivision 8, paragraph (b), shall be reduced by any remaining~~
5.27 	~~excess over the maximum.~~
5.28 	
EFFECTIVE DATE. This section is effective for revenue for
5.29 	fiscal year 2006.

5.30 	Sec. 5. REPEALER.
 5.31 	Minnesota Statutes 2004, section 124D.095, subdivision 9,
5.32 	is repealed.

5.33 	EFFECTIVE DATE. This section is effective for revenue for
5.34 	fiscal year 2006.