HF 934

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/30/2011 08:42am

A bill for an act
relating to education; providing for policy and funding for family, adult, and
prekindergarten through grade 12 education including general education,
academic excellence, special education, facilities and technology, nutrition and
accounting, libraries, early childhood education, prevention, self-sufficiency and
lifelong learning, state agencies, and forecast adjustments; requiring reports;
requiring studies; appropriating money; amending Minnesota Statutes 2010,
sections 13D.02, by adding a subdivision; 16A.152, subdivision 2; 93.22,
subdivision 1; 93.2236; 120A.41; 120B.023, subdivision 2; 120B.07; 120B.30,
subdivision 1, by adding a subdivision; 120B.35, subdivision 1; 120B.36,
subdivision 1; 122A.40, subdivisions 5, 6, 7, 8, 9, 10, 11, by adding subdivisions;
122A.41, subdivisions 2, 3, 4, 5, 6, 14, by adding a subdivision; 122A.414,
subdivisions 1a, 2, 2a, 2b, 4; 122A.416; 122A.60; 122A.61, subdivision
1; 123A.55; 123B.02, subdivision 15; 123B.09, subdivision 8; 123B.143,
subdivision 1; 123B.54; 123B.59, subdivision 5; 123B.75, subdivision 5;
124D.10, subdivision 3; 124D.19, subdivision 3; 124D.531, subdivision 1;
124D.86, subdivision 3; 125A.07; 125A.21, subdivisions 2, 3, 5, 7; 125A.515,
by adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 1;
125A.79, subdivision 1; 126C.10, subdivisions 1, 2, 2a, 3, 7, 8, 8a, 13a, 14, by
adding a subdivision; 126C.126; 126C.20; 126C.40, subdivision 1; 126C.44;
127A.33; 127A.441; 127A.45, subdivision 2; 179A.16, subdivision 1; 179A.18,
subdivisions 1, 3; 298.28, subdivisions 2, 4; Laws 2009, chapter 79, article 5,
section 60, as amended; Laws 2009, chapter 96, article 1, section 24, subdivisions
2, as amended, 3, 4, as amended, 5, as amended, 6, as amended, 7, as amended;
article 2, section 67, subdivisions 2, as amended, 3, as amended, 4, as amended,
6, 9, as amended; article 3, section 21, subdivisions 3, 4, as amended; article 4,
section 12, subdivision 6, as amended; article 5, section 13, subdivisions 2, 3, 4,
as amended; article 6, section 11, subdivisions 3, as amended, 4, as amended,
8, as amended, 12, as amended; proposing coding for new law in Minnesota
Statutes, chapters 120B; 122A; 124D; 179A; repealing Minnesota Statutes 2010,
sections 122A.61; 123B.05; 123B.59, subdivisions 6, 7; 124D.86, subdivisions
1, 1a, 2, 4, 5, 6; 126C.10, subdivision 5; 127A.46; 129C.10, subdivisions 1, 2,
3, 3a, 4, 6, 7, 8; 129C.105; 129C.15; 129C.20; 129C.25; 129C.26; 179A.18,
subdivision 2; Laws 2009, chapter 88, article 12, section 23.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2010, section 93.22, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) All payments under sections 93.14 to 93.285 shall
be made to the Department of Natural Resources and shall be credited according to this
section.

(b) Twenty percent of all payments new text begin , except for those payments received for school
trust lands, new text end under sections 93.14 to 93.285 shall be credited to the minerals management
account in the natural resources fund as costs for the administration and management of
state mineral resources by the commissioner of natural resources.

(c) The remainder of the payments shall be credited as follows:

(1) if the lands or minerals and mineral rights covered by a lease are held by the state
by virtue of an act of Congress, payments made under the lease shall be credited to the
permanent fund of the class of land to which the leased premises belong;

(2) if a lease covers the bed of navigable waters, payments made under the lease
shall be credited to the permanent school fund of the state;

(3) if the lands or minerals and mineral rights covered by a lease are held by the state
in trust for the taxing districts, payments made under the lease shall be distributed annually
on the first day of September to the respective counties in which the lands lie, to be
apportioned among the taxing districts interested therein as follows: county, three-ninths;
town or city, two-ninths; and school district, four-ninths;

(4) if the lands or mineral rights covered by a lease became the absolute property of
the state under the provisions of chapter 84A, payments made under the lease shall be
distributed as follows: county containing the land from which the income was derived,
five-eighths; and general fund of the state, three-eighths; and

(5) except as provided under this section and except where the disposition of
payments may be otherwise directed by law, payments made under a lease shall be paid
into the general fund of the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 2.

Minnesota Statutes 2010, section 93.2236, is amended to read:

93.2236 MINERALS MANAGEMENT ACCOUNT.

(a) The minerals management account is created as an account in the natural
resources fund. Interest earned on money in the account accrues to the account. Money in
the account may be spent or distributed only as provided in paragraphs (b) and (c).

(b) If the balance in the minerals management account exceeds $3,000,000 on June
30, the amount exceeding $3,000,000 must be distributed to the deleted text begin permanent school fund
and the deleted text end permanent university fund. deleted text begin The amount distributed to each fund must be in the
same proportion as the total mineral lease revenue received in the previous biennium
from school trust lands and university lands.
deleted text end

(c) Subject to appropriation by the legislature, money in the minerals management
account may be spent by the commissioner of natural resources for mineral resource
management and projects to enhance future mineral income and promote new mineral
resource opportunities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 3.

Minnesota Statutes 2010, section 120A.41, is amended to read:

120A.41 LENGTH OF SCHOOL YEAR; deleted text begin DAYS deleted text end new text begin HOURS new text end OF INSTRUCTION.

A school board's annual school calendar must include at least deleted text begin the number of days of
student instruction the board formally adopted as its school calendar at the beginning of
the 1996-1997 school year deleted text end new text begin 425 hours of instruction for a kindergarten student without a
disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of
instruction for a student in grades 7 though 12, not including summer school new text end .

Sec. 4.

Minnesota Statutes 2010, section 120B.07, is amended to read:

120B.07 EARLY GRADUATION.

new text begin (a) new text end 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.

new text begin (b) new text end General education revenue attributable to the student must be paid as though
the student was in attendance for the entire year new text begin 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.081 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 5.

new text begin [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Participation. new text end

new text begin A student who qualifies for early graduation under
section 120B.07 is eligible to participate in the early graduation achievement scholarship
program.
new text end

new text begin Subd. 2. new text end

new text begin Scholarship amounts. new text end

new text begin 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 one semester or two trimesters early, $5,000 if the student qualifies
for graduation two semesters or three or four trimesters early, or $7,500 if the student
qualifies for graduation three or more semesters or five or more trimesters early.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship uses. new text end

new text begin An early graduation achievement scholarship may be
used at any accredited institution of higher education.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin 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. 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.
new text end

new text begin Subd. 5. new text end

new text begin Enrollment verification. new text end

new text begin 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 days of receipt of a student's enrollment and
tuition verification form, the commissioner must issue a scholarship check to the student 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.
new text end

new text begin Subd. 6. new text end

new text begin General education money transferred. new text end

new text begin The commissioner must transfer
the amounts necessary to fund the early graduation achievement scholarships from the
general education aid appropriation for that year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2012 and later.
new text end

Sec. 6.

new text begin [120B.081] EARLY GRADUATION MILITARY SERVICE AWARD
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin For purposes of this section, "eligible person" means
a secondary student enrolled in any Minnesota public school who qualifies for early
graduation under section 120B.07 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.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Verification and award. new text end

new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2012 and later.
new text end

Sec. 7.

Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to read:

Subd. 1a.

Transitional planning year.

(a) To be eligible to participate in an
alternative teacher professional pay system, a school district, intermediate school district,
or site, at least one school year before it expects to fully implement an alternative pay
system, must:

(1) submit to the department a letter of intent executed by the school district or
intermediate school district and the exclusive representative of the teachers to complete a
plan preparing for full implementation, consistent with subdivision 2, that may include,
among other activities, training to evaluate teacher performance, a restructured school
day to develop integrated ongoing site-based professional development activities, release
time to develop an alternative pay system agreement, and teacher and staff training on
using multiple data sources; and

(2) agree to use up to two percent of basic revenue for staff development purposes,
consistent with deleted text begin sections deleted text end new text begin section new text end 122A.60 deleted text begin and 122A.61 deleted text end , to develop the alternative teacher
professional pay system agreement under this section.

(b) To be eligible to participate in an alternative teacher professional pay system, a
charter school, at least one school year before it expects to fully implement an alternative
pay system, must:

(1) submit to the department a letter of intent executed by the charter school and the
charter school board of directors;

(2) submit the record of a formal vote by the teachers employed at the charter
school indicating at least 70 percent of all teachers agree to implement the alternative
pay system; and

(3) agree to use up to two percent of basic revenue for staff development purposes,
consistent with deleted text begin sections deleted text end new text begin section new text end 122A.60 deleted text begin and 122A.61 deleted text end , to develop the alternative teacher
professional pay system.

(c) The commissioner may waive the planning year if the commissioner determines,
based on the criteria under subdivision 2, that the school district, intermediate school
district, site or charter school is ready to fully implement an alternative pay system.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 8.

Minnesota Statutes 2010, section 122A.414, subdivision 4, is amended to read:

Subd. 4.

Planning and staff development.

A school district that qualifies to
participate in the alternative teacher professional pay system transitional planning year
under subdivision 1a may use up to two percent of new text begin its general education new text end basic revenue
deleted text begin that would otherwise be reserved under section 122A.61 deleted text end for complying with the planning
and staff development activities under this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 9.

Minnesota Statutes 2010, section 122A.60, subdivision 1, is amended to read:

Subdivision 1.

Staff development committee.

A school board deleted text begin must use the revenue
authorized in section 122A.61 for in-service education for programs under section
120B.22, subdivision 2, or for staff development plans deleted text end new text begin may implement a staff development
plan new text end under this section. new text begin If a school board implements a plan under this section, new text end the board
must establish an advisory staff development committee to develop the plan, assist site
professional development teams in developing a site plan consistent with the goals of the
plan, and evaluate staff development efforts at the site level. A majority of the advisory
committee and the site professional development team must be teachers representing
various grade levels, subject areas, and special education. The advisory committee must
also include nonteaching staff, parents, and administrators.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 10.

Minnesota Statutes 2010, section 122A.60, subdivision 1a, is amended to read:

Subd. 1a.

Effective staff development activities.

deleted text begin (a) deleted text end Staff development activities new text begin
implemented under this section new text end must:

(1) focus on the school classroom and research-based strategies that improve student
learning;

(2) provide opportunities for teachers to practice and improve their instructional
skills over time;

(3) provide opportunities for teachers to use student data as part of their daily work
to increase student achievement;

(4) enhance teacher content knowledge and instructional skills;

(5) align with state and local academic standards;

(6) provide opportunities to build professional relationships, foster collaboration
among principals and staff who provide instruction, and provide opportunities for
teacher-to-teacher mentoring; and

(7) align with the plan of the district or site for an alternative teacher professional
pay system.

Staff development activities may include curriculum development and curriculum training
programs, and activities that provide teachers and other members of site-based teams
training to enhance team performance. The school district also may implement other
staff development activities required by law and activities associated with professional
teacher compensation models.

deleted text begin (b) Release time provided for teachers to supervise students on field trips and school
activities, or independent tasks not associated with enhancing the teacher's knowledge
and instructional skills, such as preparing report cards, calculating grades, or organizing
classroom materials, may not be counted as staff development time that is financed with
staff development reserved revenue under section 122A.61.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 11.

Minnesota Statutes 2010, section 122A.60, subdivision 4, is amended to read:

Subd. 4.

Staff development report.

(a) By October 15 of each year, deleted text begin the deleted text end new text begin a new text end district
deleted text begin and deleted text end new text begin implementing a staff development plan under this section, in conjunction with its
new text end site staff development committees new text begin , new text end shall write and submit a report of staff development
activities and expenditures for the previous year, in the form and manner determined by
the commissioner. The report, signed by the district superintendent and staff development
chair, must include assessment and evaluation data indicating progress toward district and
site staff development goals based on teaching and learning outcomes, including the
percentage of teachers and other staff involved in instruction who participate in effective
staff development activities under subdivision 3.

(b) The report must break down expenditures for:

(1) curriculum development and curriculum training programs; and

(2) staff development training models, workshops, and conferences, and the cost of
releasing teachers or providing substitute teachers for staff development purposes.

The report also must indicate whether the expenditures were incurred at the district
level or the school site level, and whether the school site expenditures were made possible
by grants to school sites that demonstrate exemplary use of allocated staff development
revenue. These expenditures must be reported using the uniform financial and accounting
and reporting standards.

(c) The commissioner shall report the staff development progress and expenditure
data to the house of representatives and senate committees having jurisdiction over
education by February 15 each year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 12.

Minnesota Statutes 2010, section 123A.55, is amended to read:

123A.55 CLASSES, NUMBER.

Districts shall be classified as common, independent, deleted text begin or deleted text end special new text begin , or charter new text end districts deleted text begin , deleted text end new text begin . new text end
Each deleted text begin of which deleted text end new text begin common, independent, and special district new text end is a public corporation. Each
district shall be known by its classification and assigned a number by the commissioner so
that its title will be .......... School District No. ......

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 13.

Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

deleted text begin For fiscal year 2006 and later, deleted text end The
general education revenue for each district equals the sum of the district's basic revenue,
extended time revenue, gifted and talented revenue, new text begin small schools revenue, new text end basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2013 and later.
new text end

Sec. 14.

Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. deleted text begin The formula
allowance for fiscal year 2007 is $4,974. deleted text end The formula allowance for deleted text begin fiscal year 2008 is
$5,074 and the formula allowance for deleted text end fiscal deleted text begin year deleted text end new text begin years new text end 2009 new text begin through 2011 is $5,124. The
formula allowance is $5,174 for fiscal year 2012 and $5,210 for fiscal year 2013. The
formula allowance for fiscal year 2014 new text end and subsequent years is deleted text begin $5,124 deleted text end new text begin $5,255 new text end .

Sec. 15.

Minnesota Statutes 2010, section 126C.10, subdivision 2a, is amended to read:

Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue
is equal to the product of deleted text begin $4,601 deleted text end new text begin $5,124 new text end and the sum of the adjusted marginal cost pupil
units of the district for each pupil in average daily membership in excess of 1.0 and less
than 1.2 according to section 126C.05, subdivision 8.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end

Sec. 16.

Minnesota Statutes 2010, section 126C.10, is amended by adding a
subdivision to read:

new text begin Subd. 2c. new text end

new text begin Small schools revenue. new text end

new text begin A school district's small schools revenue equals
the product of:
new text end

new text begin (1) $5,124;
new text end

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

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

new text begin (4) 0.08.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end

Sec. 17.

Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) The compensatory education
revenue for each building in the district equals deleted text begin the formula allowance minus $415 deleted text end new text begin $4,709 new text end
times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3. Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

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

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

Sec. 18.

Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:

Subd. 7.

Secondary sparsity revenue.

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

(1) deleted text begin the formula allowance for the school year deleted text end new text begin $5,124 new text end , multiplied by

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 19.

Minnesota Statutes 2010, section 126C.10, subdivision 8, is amended to read:

Subd. 8.

Elementary sparsity revenue.

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

(1) deleted text begin the formula allowance for the year deleted text end new text begin $5,124 new text end , multiplied by

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 20.

Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:

Subd. 8a.

Sparsity revenue for school districts that close facilities.

A school
district that closes a school facility new text begin or whose sparsity revenue is reduced by a school
closure in another district new text end is eligible for elementary and secondary sparsity revenue equal
to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount
of sparsity revenue for the previous fiscal year if the school board of the district has
adopted a written resolution stating that the district intends to close the school facility, but
cannot proceed with the closure without the adjustment to sparsity revenue authorized by
this subdivision. The written resolution must be filed with the commissioner of education
at least 60 days prior to the start of the fiscal year for which aid under this subdivision is
first requested. new text begin A school district whose sparsity revenue is affected by a closure in another
district is not required to adopt a written resolution under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 21.

Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to
read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue deleted text begin for fiscal
year 2007 and later deleted text end , a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin $22,222 deleted text end new text begin $10,700 new text end for
fiscal year deleted text begin 2006 deleted text end new text begin 2012 new text end , and deleted text begin $10,700 deleted text end new text begin $12,790 new text end for fiscal year deleted text begin 2007 deleted text end new text begin 2013 new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 22.

Minnesota Statutes 2010, section 126C.10, subdivision 14, is amended to read:

Subd. 14.

Uses of total operating capital revenue.

Total operating capital revenue
may be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes;

(3) to rent or lease buildings, including the costs of building repair or improvement
that are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school
buildings with permanent attached fixtures, including library media centers;

(5) for a surplus school building that is used substantially for a public nonschool
purpose;

(6) to eliminate barriers or increase access to school buildings by individuals with a
disability;

(7) to bring school buildings into compliance with the State Fire Code adopted
according to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make
asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
in section 296A.01;

(11) for energy audits for school buildings and to modify buildings if the audit
indicates the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123B.51, subdivision 4;

(13) to pay special assessments levied against school property but not to pay
assessments for service charges;

(14) to pay principal and interest on state loans for energy conservation according to
section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
Fund Act according to sections 298.292 to 298.298;

(15) to purchase or lease interactive telecommunications equipment;

(16) by board resolution, to transfer money into the debt redemption fund to: (i)
pay the amounts needed to meet, when due, principal and interest payments on certain
obligations issued according to chapter 475; or (ii) pay principal and interest on debt
service loans or capital loans according to section 126C.70;

(17) to pay operating capital-related assessments of any entity formed under a
cooperative agreement between two or more districts;

(18) to purchase or lease computers and related materials, copying machines,
telecommunications equipment, and other noninstructional equipment;

(19) to purchase or lease assistive technology or equipment for instructional
programs;

(20) to purchase textbooks;

(21) to purchase new and replacement library media resources or technology;

(22) to new text begin lease or new text end purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related
equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a
results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required
for students with individual education plans; and

(iii) other classroom information management needs; deleted text begin and
deleted text end

(24) to pay personnel costs directly related to the acquisition, operation, and
maintenance of telecommunications systems, computers, related equipment, and network
and applications software new text begin ; and
new text end

new text begin (25) to pay the costs directly associated with closing a school facility, including
moving and storage costs new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2010, 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 new text begin 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.081 new text end .

(b) A school district may spend general education revenue on extended time
kindergarten and prekindergarten programs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2012 and later.
new text end

Sec. 24.

Minnesota Statutes 2010, section 126C.20, is amended to read:

126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the
amount necessary for general education aid new text begin under section 126C.13, the early graduation
achievement scholarship program under section 120B.08, and the early graduation
military service award program under section 120B.081 new text end . This amount must be reduced
by the amount of any money specifically appropriated for the same purpose in any year
from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2012 and later.
new text end

Sec. 25.

Minnesota Statutes 2010, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

(a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.

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

deleted text begin (c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). The district must annually certify either that: (1) its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this section; or (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous year.
deleted text end

Sec. 26.

Minnesota Statutes 2010, section 127A.33, is amended to read:

127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.

The commissioner shall apportion the school endowment fund semiannually on the
first Monday in March and September in each year, to districts whose schools have been
in session at least nine months. The apportionment shall be in proportion to deleted text begin the number
of pupils in deleted text end new text begin each district's adjusted new text end average daily membership during the preceding year.
The apportionment shall not be paid to a district for pupils for whom tuition is received
by the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 27.

Minnesota Statutes 2010, section 298.28, subdivision 2, is amended to read:

Subd. 2.

City or town where quarried or produced.

(a) 4.5 cents per gross ton of
merchantable iron ore concentrate, hereinafter referred to as "taxable ton," deleted text begin plus the amount
provided in paragraph (c), deleted text end must be allocated to the city or town in the county in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. If the mining, quarrying, and concentration, or different steps
in either thereof are carried on in more than one taxing district, the commissioner shall
apportion equitably the proceeds of the part of the tax going to cities and towns among
such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
the operation of mining or quarrying the taconite, and the remainder to the concentrating
plant and to the processes of concentration, and with respect to each thereof giving due
consideration to the relative extent of such operations performed in each such taxing
district. The commissioner's order making such apportionment shall be subject to review
by the Tax Court at the instance of any of the interested taxing districts, in the same
manner as other orders of the commissioner.

(b) Four cents per taxable ton shall be allocated to cities and organized townships
affected by mining because their boundaries are within three miles of a taconite mine pit
that has been actively mined in at least one of the prior three years. If a city or town is
located near more than one mine meeting these criteria, the city or town is eligible to
receive aid calculated from only the mine producing the largest taxable tonnage. When
more than one municipality qualifies for aid based on one company's production, the aid
must be apportioned among the municipalities in proportion to their populations. Of the
amounts distributed under this paragraph to each municipality, one-half must be used for
infrastructure improvement projects, and one-half must be used for projects in which two
or more municipalities cooperate. Each municipality that receives a distribution under this
paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
the commissioner of Iron Range resources and rehabilitation on the projects involving
cooperation with other municipalities.

deleted text begin (c) The amount that would have been computed for the current year under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for a school district within which the
taconite was mined or quarried or within which the concentrate is produced is added to
the amount to be distributed to the cities and towns located within that school district as
provided in paragraph (a).
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions in 2012 and
thereafter.
new text end

Sec. 28.

Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:

Subd. 4.

School districts.

(a) 23.15 cents per taxable ton, plus the increase provided
in paragraph (d), deleted text begin less the amount that would have been computed under Minnesota
Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, deleted text end must be
allocated to qualifying school districts to be distributed, based upon the certification of the
commissioner of revenue, under paragraphs (b), (c), and (f).

(b)(i) 3.43 cents per taxable ton must be distributed to the school districts in which
the lands from which taconite was mined or quarried were located or within which the
concentrate was produced. The distribution must be based on the apportionment formula
prescribed in subdivision 2.

(ii) Four cents per taxable ton from each taconite facility must be distributed to
each affected school district for deposit in a fund dedicated to building maintenance
and repairs, as follows:

(1) proceeds from Keewatin Taconite or its successor are distributed to Independent
School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
districts;

(2) proceeds from the Hibbing Taconite Company or its successor are distributed to
Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
districts;

(3) proceeds from the Mittal Steel Company and Minntac or their successors are
distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
2711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;

(4) proceeds from the Northshore Mining Company or its successor are distributed
to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
or their successor districts; and

(5) proceeds from United Taconite or its successor are distributed to Independent
School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
successor districts.

Revenues that are required to be distributed to more than one district shall be
apportioned according to the number of pupil units identified in section 126C.05,
subdivision 1, enrolled in the second previous year.

(c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e),
shall be distributed to a group of school districts comprised of those school districts which
qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
to school district indexes as follows: for each school district, its pupil units determined
under section 126C.05 for the prior school year shall be multiplied by the ratio of the
average adjusted net tax capacity per pupil unit for school districts receiving aid under
this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
Each district shall receive that portion of the distribution which its index bears to the sum
of the indices for all school districts that receive the distributions.

(ii) Notwithstanding clause (i), each school district that receives a distribution
under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
severed mineral values after reduction for any portion distributed to cities and towns
under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
levy reduction under section 126C.48, subdivision 8, for the second year prior to the
year of the distribution shall receive a distribution equal to the difference; the amount
necessary to make this payment shall be derived from proportionate reductions in the
initial distribution to other school districts under clause (i). If there are insufficient tax
proceeds to make the distribution provided under this paragraph in any year, money must
be transferred from the taconite property tax relief account in subdivision 6, to the extent
of the shortfall in the distribution.

(d) Any school district described in paragraph (c) where a levy increase pursuant to
section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
times the district's taxable net tax capacity in the second previous year.

If the total amount provided by paragraph (d) is insufficient to make the payments
herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
so as not to exceed the funds available. Any amounts received by a qualifying school
district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
education aid which the district receives pursuant to section 126C.13 or the permissible
levies of the district. Any amount remaining after the payments provided in this paragraph
shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
economic protection trust fund as provided in subdivision 11.

Each district receiving money according to this paragraph shall reserve the lesser of
the amount received under this paragraph or $25 times the number of pupil units served
in the district. It may use the money for early childhood programs or for outcome-based
learning programs that enhance the academic quality of the district's curriculum. The
outcome-based learning programs must be approved by the commissioner of education.

(e) There shall be distributed to any school district the amount which the school
district was entitled to receive under section 298.32 in 1975.

(f) Four cents per taxable ton must be distributed to qualifying school districts
according to the distribution specified in paragraph (b), clause (ii), and two cents per
taxable ton must be distributed according to the distribution specified in paragraph
(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48,
subdivision 8.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions in 2012 and
thereafter.
new text end

Sec. 29. new text begin KITTSON CENTRAL SCHOOL CLOSING.
new text end

new text begin Independent School District No. 356, Lancaster, is eligible for sparsity revenue
calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012
and later, if the board has adopted a written resolution at any time prior to the start of
the 2011-2012 school year to notify the commissioner and request aid under Minnesota
Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school
district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision
8a, as a result of the closure of the Kennedy Elementary School in Independent School
District No. 2171, Kittson Central.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 30. new text begin NORTHLAND COMMUNITY SCHOOL CLOSING.
new text end

new text begin (a) Independent School District No. 118, Northland Community Schools, is eligible
for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a,
for fiscal year 2012 and later, if the board has adopted the required written resolution at
least 60 days prior to the start of fiscal year 2012.
new text end

new text begin (b) If the school district adopts a written resolution under paragraph (a), in fiscal
year 2012, the commissioner must provide sparsity aid to the district in an amount equal
to the amount that the district would have received under Minnesota Statutes, section
126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in
effect. The school district must recognize the sparsity aid provided under this paragraph as
revenue in fiscal year 2011.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012.
new text end

Sec. 31. new text begin SCHOOL DISTRICT LEVY ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rate adjustment. new text end

new text begin The commissioner of education must adjust
each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
2010 as it existed prior to the passage of House File 42, or a similarly styled bill, to the
statewide total tax capacity for assessment year 2010.
new text end

new text begin Subd. 2. new text end

new text begin Equalizing factors. new text end

new text begin The commissioner of education must adjust each
school district equalizing factor established under Minnesota Statutes, chapters 120B to
127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
assessment year 2010 as it existed prior to the passage of House File 42, or a similarly
styled bill, to the statewide total tax capacity for assessment year 2010.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 32. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin General education aid. new text end

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

	new text begin $ new text end	new text begin 5,695,383,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 5,862,929,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $1,678,539,000 for 2011 and $4,016,844,000
for 2012.
new text end

new text begin The 2013 appropriation includes $1,717,378,000 for 2012 and $4,145,551,000
for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

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

	new text begin $ new text end	new text begin 31,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 32,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

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

	new text begin $ new text end	new text begin 1,452,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,635,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $346,000 for 2011 and $1,106,000 for 2012.
new text end

new text begin The 2013 appropriation includes $473,000 for 2012 and $1,162,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

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

	new text begin $ new text end	new text begin 145,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 210,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
new text end

new text begin The 2013 appropriation includes $0 for 2012 and $210,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

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

	new text begin $ new text end	new text begin 16,101,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 16,023,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $5,078,000 for 2011 and $11,023,000 for 2012.
new text end

new text begin The 2013 appropriation includes $4,724,000 for 2012 and $11,299,000 for 2013.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

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

	new text begin $ new text end	new text begin 19,007,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 19,033,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $5,895,000 for 2011 and $13,112,000 for 2012.
new text end

new text begin The 2013 appropriation includes $5,619,000 for 2012 and $13,414,000 for 2013.
new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

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

	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 9. new text end

new text begin Compensatory revenue pilot project. new text end

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

	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Of this amount, $1,500,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent
School District No. 279, Osseo; $160,000 in each year is for a grant to Independent
School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent
School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
School District No. 833, South Washington.
new text end

new text begin If a grant to a specific school district is not awarded, the commissioner may increase
the aid amounts to any of the remaining participating school districts.
new text end

new text begin This appropriation is part of the base budget for subsequent fiscal years.
new text end

new text begin Subd. 10. new text end

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

new text begin For grants for compensatory
pilot project aid as calculated under this subdivision:
new text end

	new text begin $ new text end	new text begin 11,957,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 5,124,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin For fiscal year 2012 only, a district which has a pupil unit count that is in the top ten
largest pupil unit counts is eligible for the greater of zero or $1,500 times the number of
compensatory pupil units, minus the amount of compensatory education revenue received
by the district under Minnesota Statutes, section 126C.10, subdivision 3. A district which
has a pupil unit count that is between the 11th and 20th largest pupil unit counts is eligible
for the greater of zero or $1,200 times the number of compensatory pupil units, minus
the amount of compensatory education revenue received by the district under Minnesota
Statutes, section 126C.10, subdivision 3.
new text end

new text begin The 2012 appropriation includes $0 for 2011 and $11,957,000 for 2012.
new text end

new text begin The 2013 appropriation includes $5,124,000 for 2012 and $0 for 2013.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 33. new text begin APPROPRIATIONS; MINNESOTA DEPARTMENT OF NATURAL
RESOURCES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota Department of Natural Resources for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 0 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,072,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin This appropriation must only be used for minerals management activities for school
trust lands.
new text end

Sec. 34. new text begin REPEALER AND REENACTMENT.
new text end

new text begin (a) new text end new text begin Laws 2009, chapter 88, article 12, section 23, new text end new text begin paragraph (c), is repealed and
Minnesota Statutes 2008, section 126C.21, subdivision 4, is reenacted for revenue for
fiscal year 2012 and thereafter.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, sections 122A.61; 123B.05; and 126C.10, subdivision
5, new text end new text begin are repealed.
new text end

ARTICLE 2

ACADEMIC EXCELLENCE

Section 1.

Minnesota Statutes 2010, section 13D.02, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin School boards; interactive technology with an audio and visual link.
new text end

new text begin A school board conducting a meeting under this section may use interactive technology
with an audio and visual link to conduct the meeting if the school board complies with
all other requirements under this section.
new text end

Sec. 2.

Minnesota Statutes 2010, 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. new text begin The commissioner must revise
and align the state's academic standards and graduation requirements, consistent with the
review cycle established in this subdivision and the requirements of chapter 14, but must
not proceed to finally adopt revised and realigned academic standards and graduation
requirements in rule without first receiving specific legislative authority to do so. new text end 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. 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 deleted text begin revise and align deleted text end new text begin review new text end
the state's academic standards and high school graduation requirements in social studies
deleted text begin to require deleted text end that students new text begin must new text end satisfactorily complete deleted text begin the revised social studies standards deleted text end
beginning in the deleted text begin 2013-2014 deleted text end new text begin 2014-2015 new text end school year. The commissioner must new text begin again new text end
implement a review of the academic standards and related benchmarks in social studies
beginning in the deleted text begin 2019-2020 deleted text end new text begin 2020-2021 new text end 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, 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).

(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 individual
education plan 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 individual education plan; 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
individual education plan; 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 individual
education plan 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
individual education plan.

(d) Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the deleted text begin 2009-2010 deleted text end new text begin 2008-2009 new text end 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 a student's highest assessment score for each of the following
assessments on the student's high school transcript: the mathematics Minnesota
Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing
Graduation-Required Assessment for Diploma, and when applicable, the mathematics
Graduation-Required Assessment for Diploma and reading Graduation-Required
Assessment for Diploma.

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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 4.

Minnesota Statutes 2010, section 120B.30, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin High school assessments. new text end

new text begin (a) Notwithstanding any other law to the
contrary, the commissioner shall establish a system of high school assessments for students
entering grade 8 in the 2012-2013 school year and later that provides information on the
college and career readiness of Minnesota students and fulfills federal accountability
requirements, consistent with this subdivision and related rules. For purposes of this
subdivision, "college and career readiness" means the knowledge and skills that a high
school graduate needs to undertake either credit-bearing coursework at a two-year or
four-year college or university or career-track employment.
new text end

new text begin (b) The commissioner shall establish and administer a high school reading and
writing exam at the end of grade 10. The reading and writing exam must conform with
the following:
new text end

new text begin (1) align with the most recently revised academic content standards under section
120B.023, subdivision 2;
new text end

new text begin (2) produce independent scores for each content area;
new text end

new text begin (3) include both multiple-choice and open-ended items on the reading portion of the
exam to assess skills defined in the state's academic content standards;
new text end

new text begin (4) be designed for computer administration and scoring so that, beginning the
second year a computerized test is administered and as soon as practicable during the
first year a computerized test is administered, the exam results of students who take
computerized tests are available to the school or district within five full school days after
the exam is administered, among other design characteristics;
new text end

new text begin (5) allow for remediation and computer retests not sooner than six weeks after the
previous administration of the reading and writing portions of the exam;
new text end

new text begin (6) use achievement-level descriptors in reading and writing that define a student's
readiness for college or a career;
new text end

new text begin (7) require all general education students, as a condition of graduating, to achieve
passing scores that indicate that students' performance is proficient in reading and writing
and that are established through a professionally recognized methodology, consistent
with this paragraph;
new text end

new text begin (8) require general education students to participate in a locally developed
remediation plan if they do not achieve a passing score;
new text end

new text begin (9) provide a state-level student appeals process that accommodates alternative
measures to demonstrate students' college and career readiness and is available only to
those limited number of students in the second semester of their senior year, not exceeding
two percent of students in the graduating class, who are unable to demonstrate reading or
writing proficiency on the assessment but can demonstrate equivalent levels of knowledge
and skill based on the alternative measures; and
new text end

new text begin (10) allow an eligible student to meet this exam requirement through an alternative
method:
new text end

new text begin (i) for high school students who transfer into Minnesota from another state where
the high school reading and writing course and graduation requirements are of equal
or greater rigor, meet that state's federal accountability exams requirements in reading
or writing, as applicable;
new text end

new text begin (ii) allow a student who has an active individualized education program to achieve a
passing status at an individual level as prescribed by the commissioner; or
new text end

new text begin (iii) waive the required exam for a high school student who is an English language
learner under section 124D.59 and who has been enrolled for four or fewer school years in
a school in which English is the primary language of instruction.
new text end

new text begin (c) All general education students must receive a passing score in both reading
and writing to graduate, consistent with paragraphs (b) and (e). The commissioner must
establish the passing score that indicates a student's performance meets grade-level
standards for proficiency.
new text end

new text begin (d) The commissioner shall establish statewide end-of-course exams in subjects
equivalent to high school algebra and biology. These exams must conform with the
following:
new text end

new text begin (1) align with the most recently revised academic content standards under section
120B.023, subdivision 2;
new text end

new text begin (2) include both multiple-choice and open-ended items that assess the appropriate
algebra and biology knowledge and skills contained in the state's academic content
standards;
new text end

new text begin (3) be designed for computer administration and scoring so that, beginning the
second year a computerized test is administered and as soon as practicable during the
first year a computerized test is administered, the exam results of students who take
computerized tests are available to the school or district within five full school days after
the exam is administered, among other design characteristics;
new text end

new text begin (4) be administered at regular intervals that align with the most common high school
schedules in Minnesota;
new text end

new text begin (5) generate achievement levels established through a professionally recognized
methodology;
new text end

new text begin (6) use achievement-level descriptors that define a student's college and career
readiness;
new text end

new text begin (7) notwithstanding section 120B.30, subdivision 1a, paragraph (a), clause (2),
require all general education students, as a condition of graduating, to achieve passing
scores that indicate that students' performance is proficient in algebra and biology and
that are established through a professionally recognized methodology, consistent with
this paragraph;
new text end

new text begin (8) require a student who does not pass a high school algebra or biology course to:
new text end

new text begin (i) retake the course or complete a district-authorized credit recovery class; and
new text end

new text begin (ii) retake the end-of-course assessment within a regularly scheduled administration
window;
new text end

new text begin (9) allow an eligible student to meet this requirement through an alternative method
that demonstrates the student's college and career readiness:
new text end

new text begin (i) for high school students who transfer into Minnesota from another state where
the algebra or biology course content, as applicable, is of equal or greater rigor, pass that
state's high school course and graduation requirements in algebra or biology, as applicable;
new text end

new text begin (ii) allow a student who has an active individualized education program to achieve a
passing status at an individual level as prescribed by the commissioner; or
new text end

new text begin (iii) waive the required exam for a high school student who is an English language
learner under section 124D.59 and who has been enrolled for four or fewer years in a
school in which English is the primary language of instruction;
new text end

new text begin (10) use three consecutive school years of research and analysis through the
2015-2016 school year, as prescribed by the commissioner, to calculate and report
an alignment index that compares students' final grades in these courses with their
end-of-course exam scores;
new text end

new text begin (11) subsequent to calculating and reporting the alignment index under clause (10),
require schools that are highly misaligned for two or more consecutive school years to
transmit written notice of the misalignment to all parents of students enrolled in the school,
as prescribed by the commissioner; and
new text end

new text begin (12) when schools are highly misaligned for two or more consecutive years under
clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph
(a), to correct the misalignment.
new text end

new text begin (e) The requirements of this subdivision apply to students in public schools,
including charter schools, who enter grade 8 in the 2012-2013 school year or later. The
commissioner may establish a transition period where students who enter grade 8 in
the 2012-2013 or 2013-2014 school year graduate either under the graduation-required
assessment for diploma requirements under section 120B.30, subdivision 1, or through a
staggered implementation of this subdivision. During the transition period, the proficiency
level of any federally required or state-required interim passing score in reading or writing
must be comparable to the passing scores currently required for reading and writing under
the graduation-required assessment for diploma. The commissioner may seek authority
from the legislature to adjust the timeline under this paragraph if circumstances such as
changes in federal law governing educational accountability and assessment warrant
such an adjustment.
new text end

new text begin (f) To fully implement this subdivision and enable school districts to provide
intervention and support to struggling students and improve instruction for all students,
the commissioner must provide districts with:
new text end

new text begin (1) benchmark assessments that are aligned with the high school reading and writing
assessment and algebra and biology end-of-course exams; and
new text end

new text begin (2) an item bank available to teachers for creating formative assessments to help
students prepare for the high school reading and writing assessment and algebra and
biology end-of-course exams.
new text end

new text begin (g) The commissioner shall expand the membership and purpose of the Assessment
Advisory Committee established under section 120B.365 to include assessment experts
and practitioners from both secondary and postsecondary education systems and other
appropriate stakeholders to monitor the implementation of and student outcomes based on
the end-of-course exams and policies and the state support available to districts, including
small or rural districts, under this subdivision. This committee shall report annually by
February 15 to the commissioner and the legislature on the implementation of and student
outcomes based on the exams and policies under this subdivision. Notwithstanding
section 15.059, subdivision 3, committee members shall not receive compensation, per
diem payments, or reimbursement for expenses.
new text end

new text begin (h) The commissioner may not begin to develop additional statewide end-of-course
exams in geometry, chemistry, or physics until specifically authorized in law to do so.
new text end

new text begin (i) A district or charter school must indicate on a student's transcript the student's
level of college and career readiness in reading, writing, algebra, and biology under this
subdivision after the levels have been established through a professionally recognized
methodology.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

new text begin [120B.361] DISTRICT AND CHARTER SCHOOL AND SCHOOL
DISTRICT GRADING SYSTEM AND SCHOOL RECOGNITION PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin District and charter school and school district grades. new text end

new text begin (a)
Consistent with the state growth targets established under sections 120B.299 and 120B.35,
subdivision 3, paragraphs (a) and (b), and the school performance report cards under
section 120B.36, subdivision 1, an "A to F" grading system for district and charter schools
and school districts is established to help identify those schools and districts where
students are achieving low, medium, or high growth and achieving or not achieving
proficiency on statewide assessments under section 120B.30. For purposes of this section,
and using the state growth target, the commissioner annually must assign each district
and charter school and school district an "A to F" grade and then report that grade under
section 120B.36, subdivision 1, based on the following calculations:
new text end

new text begin (1) 50 percent of a school's grade must be determined based on the numbers and
percentages of students in each applicable student category for which assessment data
is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
paragraph (c), who achieved proficiency on the statewide reading and mathematics
assessments under section 120B.30 in the previous school year;
new text end

new text begin (2) 25 percent of a school's grade must be determined based on the numbers and
percentages of students in each applicable student category for which assessment data
is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
paragraph (c), who achieved low growth, medium growth, or high growth on the statewide
reading and mathematics assessments under section 120B.30 in the previous school year;
new text end

new text begin (3) 15 percent of a school's grade must be determined based on the numbers and
percentages of students in each applicable student category for which assessment data
is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
reading assessments under section 120B.30 in the previous school year;
new text end

new text begin (4) ten percent of a school's grade must be determined based on the numbers and
percentages of students in each applicable student category for which assessment data
is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
mathematics assessments under section 120B.30 in the previous school year; and
new text end

new text begin (5) using the calculations in clauses (1) to (4), a school district's grade must be
determined based on the combined average scores of all district schools.
new text end

new text begin (b) The grade a school or district receives under this subdivision must accurately
reflect the differences in schools' performances based on students' proficiency and growth
and the calculations required under this subdivision. A school or district may appeal its
grade in writing to the commissioner within 30 days of receiving notice of its grade. The
commissioner's decision regarding the grade is final. Grades given under this section are
nonpublic data under section 13.02, subdivision 9, until not later than ten days after the
appeal under this paragraph is complete.
new text end

new text begin Subd. 2. new text end

new text begin District and charter school recognition. new text end

new text begin (a) A school that received a
letter grade of "A" in the previous school year, improved at least one letter grade in the
previous school year, or improved two or more letter grades in the two previous school
years is eligible to receive a school recognition award.
new text end

new text begin (b) A school recognition award under this subdivision equals $100 per enrollee for
each eligible school. The commissioner must distribute the award to each eligible school.
new text end

new text begin (c) An eligible school that receives a school recognition award may use the award to:
new text end

new text begin (1) pay onetime bonuses for licensed staff employed at the school;
new text end

new text begin (2) pay onetime expenditures for educational equipment or materials to help
maintain or improve student academic achievement; or
new text end

new text begin (3) temporarily employ licensed or otherwise qualified staff to help maintain or
improve student academic achievement.
new text end

new text begin Notwithstanding any other law to the contrary, an award a school receives under this
subdivision is not subject to a collective bargaining agreement.
new text end

new text begin (d) To distribute the award at the school, and consistent with paragraph (c), an
eligible school may select a site team that includes at least the school principal or other
person having administrative control of the school, teachers employed at the school, the
parent of a student enrolled in the school, and a community representative to decide how
best to use the award. Alternatively, if by November 1 in the year in which the award
is made the site team cannot reach agreement or if no site team is selected, the school
principal or other person having administrative control of the school must distribute the
award.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and requires the education commissioner to use student performance data beginning in the
2011-2012 school year, determine and report a letter grade for each school and district,
and distribute school recognition awards beginning in the 2012-2013 school year and later.
new text end

Sec. 6.

Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Qualified economic offer. new text end

new text begin (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the district's biennial percentage increase in
basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the
most recent estimate of district basic revenue for the biennium that corresponds to the
prospective contract term to (2) district basic revenue for the previous biennium; teachers
may not strike for any issue relating to total compensation for the years covered by that
contract or submit any total compensation issue to interest arbitration under section
179A.16. District fund balances or other revenue sources or allocations are not to be
included in any calculation of compensation under this subdivision.
new text end

new text begin (b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) by September 1 of an
even-numbered calendar year, the allocation of total compensation among teachers shall
be as follows:
new text end

new text begin (1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
new text end

new text begin (2) based on the percentage increase in the general education formula allowance
for the biennium for which the contract is in effect, any remaining percentage of the total
compensation for the contract period being negotiated, after subtracting the value of
clause (1), is for increases in teacher salary based on first, alternative teacher pay plans
under section 122A.414; second, the number of years of service; and third, promotion
and advanced education.
new text end

new text begin (c) For purposes of this subdivision, the following terms have the meanings given
them.
new text end

new text begin "Teachers" means classroom teachers licensed under section 122A.18. At a school
board's election, teachers also means school administrators licensed under section
122A.14, subdivision 1. A school board that elects to offer school administrators an
employment contract under this subdivision must make the offer consistent with section
179A.20 and the provisions of this subdivision. A school board, at its discretion, also
may elect to offer any of its nonlicensed employees an employment contract under the
terms of this subdivision.
new text end

new text begin "Total compensation" means the sum of the following cost components: (i) a school
district's total salary schedule costs excluding alternative teacher compensation under
sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
health insurance costs paid by the school district for its teachers, excluding any district
contributions to health reimbursement arrangements (HRA) or health savings accounts
(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
(v) total long-term disability costs paid by the school district for its teachers; (vi) total
dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
the school district for its teachers; and (xi) other miscellaneous costs identified by the
school district as payment for teachers' services or benefits such as special school events,
extra service duty, summer school instruction, drivers' education outside the regular school
day and school year, and other direct salary payments to teachers or fringe benefit costs
paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts ratified beginning
July 1, 2011.
new text end

Sec. 7.

Minnesota Statutes 2010, section 122A.41, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Qualified economic offer. new text end

new text begin (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the district's biennial percentage increase in
basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the
most recent estimate of district basic revenue for the biennium that corresponds to the
prospective contract term to (2) district basic revenue for the previous biennium; teachers
may not strike for any issue relating to total compensation for the years covered by that
contract or submit any total compensation issue to interest arbitration under section
179A.16. District fund balances or other revenue sources or allocations are not to be
included in any calculation of compensation under this subdivision.
new text end

new text begin (b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) by September 1 of an
even-numbered calendar year, the allocation of total compensation among teachers shall
be as follows:
new text end

new text begin (1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
new text end

new text begin (2) based on the percentage increase in the general education formula allowance
for the biennium for which the contract is in effect, any remaining percentage of the total
compensation for the contract period being negotiated, after subtracting the value of
clause (1), is for increases in teacher salary based on first, alternative teacher pay plans
under section 122A.414; second, the number of years of service; and third, promotion
and advanced education.
new text end

new text begin (c) For the purposes of this subdivision, the following terms have the meanings
given them.
new text end

new text begin "Teachers" means classroom teachers licensed under section 122A.18. At a school
board's election, teachers also means school administrators licensed under section
122A.14, subdivision 1. A school board that elects to offer school administrators an
employment contract under this subdivision must make the offer consistent with section
179A.20 and the provisions of this subdivision. A school board, at its discretion, also
may elect to offer any of its nonlicensed employees an employment contract under the
terms of this subdivision.
new text end

new text begin "Total compensation" means the sum of the following cost components: (i) a school
district's total salary schedule costs excluding alternative teacher compensation under
sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
health insurance costs paid by the school district for its teachers, excluding any district
contributions to health reimbursement arrangements (HRA) or health savings accounts
(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
(v) total long-term disability costs paid by the school district for its teachers; (vi) total
dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
the school district for its teachers; and (xi) other miscellaneous costs identified by the
school district as payment for teachers' services or benefits such as special school events,
extra service duty, summer school instruction, drivers' education outside the regular school
day and school year, and other direct salary payments to teachers or fringe benefit costs
paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for contracts ratified beginning
July 1, 2011.
new text end

Sec. 8.

Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to read:

Subd. 1a.

Transitional planning year.

deleted text begin (a) deleted text end To be eligible to participate in an
alternative teacher professional pay system, a school district, intermediate school district,
or deleted text begin site, deleted text end new text begin charter school must, new text end at least one school year before it expects to fully implement
an alternative pay system, deleted text begin must:
deleted text end

deleted text begin (1) submit to the department a letter of intent executed by the school district or
intermediate school district and the exclusive representative of the teachers to complete
a plan preparing for full implementation, deleted text end new text begin begin to develop an alternative teacher pay
plan, new text end consistent with subdivision 2, that may include, among other activities, training to
evaluate teacher performance, a restructured school day to develop integrated ongoing
site-based professional development activities, release time to develop an alternative pay
system agreement, and teacher and staff training on using multiple data sources deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (2) agree to use up to two percent of basic revenue for staff development purposes,
consistent with sections 122A.60 and 122A.61, to develop the alternative teacher
professional pay system agreement under this section.
deleted text end

deleted text begin (b) To be eligible to participate in an alternative teacher professional pay system, a
charter school, at least one school year before it expects to fully implement an alternative
pay system, must:
deleted text end

deleted text begin (1) submit to the department a letter of intent executed by the charter school and the
charter school board of directors;
deleted text end

deleted text begin (2) submit the record of a formal vote by the teachers employed at the charter
school indicating at least 70 percent of all teachers agree to implement the alternative
pay system; and
deleted text end

deleted text begin (3) agree to use up to two percent of basic revenue for staff development purposes,
consistent with sections 122A.60 and 122A.61, to develop the alternative teacher
professional pay system.
deleted text end

deleted text begin (c) The commissioner may waive the planning year if the commissioner determines,
based on the criteria under subdivision 2, that the school district, intermediate school
district, site or charter school is ready to fully implement an alternative pay system.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
and applies to any new plan that the commissioner approves or any approved plan that is
modified after that date.
new text end

Sec. 9.

Minnesota Statutes 2010, section 122A.414, subdivision 2, is amended to read:

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this
program, a school district, intermediate school district, deleted text begin school site, deleted text end or charter school must
have an educational improvement plan under section 122A.413 and an alternative teacher
professional pay system agreement under paragraph (b). A charter school participant also
must comply with subdivision 2a.

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

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

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

(3) reform the "steps and lanes" salary schedule new text begin by establishing an alternative
salary schedule that uses measures other than seniority to award compensation increases
based on the requirements in this clause new text end , prevent any teacher's compensation paid before
implementing the pay system from being reduced as a result of participating in this
system, and deleted text begin base at least 60 percent of deleted text end new text begin award new text end any compensation increase on teacher
performance deleted text begin using deleted text end new text begin based on new text end :

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

deleted text begin (ii) deleted text end new text begin districtwide new text end measures of student achievement new text begin that use longitudinal data on
student academic growth, student attendance, student engagement and connection,
other outcome measures under section 120B.35, and other locally selected measures of
student learning explicitly aligned with the elements of curriculum for which teachers are
responsible, which must constitute 50 percent of any compensation increase new text end ; deleted text begin and
deleted text end

new text begin (ii) data from parent surveys, an annual evaluation performed by a trained school
administrator, and other performance measures such as student surveys, peer observations
and review, teacher performance portfolios, video classroom observations combined with
teacher reflection, and other highly reliable research-based measures; and
new text end

(iii) an objective evaluation program that includes:

(A) individual teacher evaluations aligned with the educational improvement plan
under section 122A.413 and the staff development plan under section 122A.60; and

(B) objective evaluations using multiple criteria conducted by a locally selected and
periodically trained evaluation team that understands teaching and learning new text begin consistent
with items (i) and (ii) new text end ;

(4) provide integrated ongoing site-based professional development activities to
improve instructional skills and learning that are aligned with student needs under section
122A.413, consistent with the staff development plan under section 122A.60 and led
during the school day by trained teacher leaders such as master or mentor teachers;

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

(6) encourage collaboration rather than competition among teachers.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2013, and applies to any new
plan that the commissioner approves or any approved plan that is modified after that date.
new text end

Sec. 10.

Minnesota Statutes 2010, section 122A.414, subdivision 2a, is amended to
read:

Subd. 2a.

Charter school applications.

For charter school applications, the board
of directors of a charter school that satisfies the conditions under subdivisions 2 and 2b
must submit to the commissioner an application that contains:

(1) an agreement to implement an alternative teacher professional pay system under
this section; new text begin and
new text end

(2) a resolution by the charter school board of directors adopting the agreement deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) the record of a formal vote by the teachers employed at the charter school
indicating that at least 70 percent of all teachers agree to implement the alternative
teacher professional pay system, unless the charter school submits an alternative teacher
professional pay system agreement under this section before the first year of operation.
deleted text end

Alternative compensation revenue for a qualifying charter school must be calculated
under section 126C.10, subdivision 34, paragraphs (a) and (b).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2013, and applies to any new
plan that the commissioner approves or any approved plan that is modified after that date.
new text end

Sec. 11.

Minnesota Statutes 2010, section 122A.414, subdivision 2b, is amended to
read:

Subd. 2b.

Approval process.

(a) Consistent with the requirements of this section
and sections 122A.413 and 122A.415, the department must prepare and transmit to
interested school districts, intermediate school districts, deleted text begin school sites, deleted text end and charter schools
a standard form for applying to participate in the alternative teacher professional pay
system. The commissioner annually must establish new text begin at least new text end three dates as deadlines by
which interested applicants must submit an application to the commissioner under this
section. An interested school district, intermediate school district, deleted text begin school site, deleted text end or charter
school must submit to the commissioner a completed application executed by the district
superintendent and the exclusive bargaining representative of the teachers if the applicant
is a school district deleted text begin , deleted text end new text begin or new text end intermediate school district, deleted text begin or school site, deleted text end or executed by the charter
school board of directors if the applicant is a charter school. The application must include
the proposed alternative teacher professional pay system agreement under subdivision 2.
The department must review a completed application within 30 new text begin business new text end days of the most
recent application deadline and recommend to the commissioner whether to approve or
disapprove the application. The commissioner must approve applications on a first-come,
first-served basis. The applicant's alternative teacher professional pay system agreement
must be legally binding on the applicant and the collective bargaining representative before
the applicant receives alternative compensation revenue. The commissioner must approve
or disapprove an application based on the requirements under subdivisions 2 and 2a.

(b) If the commissioner disapproves an application, the commissioner must
give the applicant timely notice of the specific reasons in detail for disapproving the
application. The applicant may revise and resubmit its application and related documents
to the commissioner within 30 new text begin business new text end days of receiving notice of the commissioner's
disapproval and the commissioner must approve or disapprove the revised application,
consistent with this subdivision. Applications that are revised and then approved are
considered submitted on the date the applicant initially submitted the application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2013, and applies to any new
plan that the commissioner approves or any approved plan that is modified after that date.
new text end

Sec. 12.

Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to read:

Subd. 15.

Annuity contract; payroll allocation.

(a) At the request of an employee
and as part of the employee's compensation arrangement, the board may purchase an
individual annuity contract for an employee for retirement or other purposes and may
make payroll allocations in accordance with such arrangement for the purpose of paying
the entire premium due and to become due under such contract. The allocation must be
made in a manner which will qualify the annuity premiums, or a portion thereof, for
the benefit afforded under section 403(b) of the current Federal Internal Revenue Code
or any equivalent provision of subsequent federal income tax law. The employee shall
own such contract and the employee's rights under the contract shall be nonforfeitable
except for failure to pay premiums. Section 122A.40 shall not be applicable hereto and the
board shall have no liability thereunder because of its purchase of any individual annuity
contracts. This statute shall be applied in a nondiscriminatory manner to employees of
the school district. The new text begin school board of a school district shall determine the new text end identity and
number of the available vendors under federal Internal Revenue Code new text begin , new text end section 403(b) deleted text begin is a
term and condition of employment under section 179A.03 deleted text end .

(b) When considering vendors under paragraph (a), the school district deleted text begin and the
exclusive representative of the employees deleted text end shall consider all of the following:

(1) the vendor's ability to comply with all employer requirements imposed by
section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments,
other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the
Internal Revenue Code, and any regulation adopted in relation to these laws;

(2) the vendor's experience in providing 403(b) plans;

(3) the vendor's potential effectiveness in providing client services attendant to
its plan and in relation to cost;

(4) the nature and extent of rights and benefits offered under the vendor's plan;

(5) the suitability of the rights and benefits offered under the vendor's plan;

(6) the vendor's ability to provide the rights and benefits offered under its plan; and

(7) the vendor's financial stability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 13.

Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) new text begin annually evaluate each school principal assigned responsibility for supervising a
school building within the district, consistent with section 122A.73;
new text end

new text begin (4) new text end superintend school grading practices and examinations for promotions;

deleted text begin (4) deleted text end new text begin (5) new text end make reports required by the commissioner; and

deleted text begin (5) deleted text end new text begin (6) new text end perform other duties prescribed by the board.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

new text begin [124D.031] ENROLLMENT OPTIONS FOR STUDENTS AT
LOW-PERFORMING PUBLIC SCHOOLS.
new text end

new text begin Subdivision 1. new text end

new text begin Student enrollment options. new text end

new text begin (a) A student who attends a persistently
low-performing school located in a city of the first class for at least one school year and
whose family income is equal to or less than 175 percent of the federal poverty level is
eligible to enroll in a nonpublic school under this section or in a nonresident district
school or program under section 124D.03.
new text end

new text begin (b) For the purposes of this section, "persistently low-performing school" means a
public school located in a city of the first class that has student performance levels for at
least three consecutive school years immediately preceding the school year in which a
student enrolls in a nonpublic school under this section or in a nonresident district school
or program under section 124D.03, as follows:
new text end

new text begin (1) the combined total percentage of students scoring at the "does not meet
standards" level for either the reading or mathematics Minnesota Comprehensive
Assessment exceeds 40 percent for all grades tested;
new text end

new text begin (2) the combined percentage of students demonstrating "proficient, low growth,"
"not proficient, low growth," and "not proficient, medium growth" for either the reading or
mathematics Minnesota Comprehensive Assessment exceeds 50 percent; or
new text end

new text begin (3) 50 percent or more students in secondary school do not receive a passing
score when first tested on the graduation required assessment for diploma in reading,
mathematics, or writing.
new text end

new text begin Subd. 2. new text end

new text begin Eligible nonpublic schools. new text end

new text begin (a) To be eligible to participate under this
section, a nonpublic school must comply with section 121A.04 and chapter 363A;
make reasonable accommodations for students and meet the requirements under the
Americans with Disabilities Act, Public Law 101-336; adopt an antidiscrimination and
harassment and violence prevention policy that complies with section 121A.03 and an
anti-intimidation and bullying policy that complies with section 121A.0695; submit
data to the commissioner in the form and manner required by the commissioner so that
the school may be included in the state's annual school performance report cards under
section 120B.36; accept students on a random basis, except that the nonpublic school may
give preference to the siblings of students already enrolled in the nonpublic school; and
notify the commissioner of its intent to participate under this section. The nonpublic
school must administer the statewide reading and math tests under section 120B.30 to its
students enrolled under this section.
new text end

new text begin (b) The commissioner shall ensure that the nonpublic school complies with the
requirements of this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Tuition funding for students transferring to nonpublic schools. new text end

new text begin If a
student transfers to a nonpublic school under this section, and upon receiving proof that
the student is enrolled in the nonpublic school, the commissioner shall make quarterly
payments to the student's parent or guardian in an amount equal to the lesser of the
state average general education revenue per pupil unit, calculated without transportation
sparsity revenue or the nonpublic school's operating and debt service cost per pupil
that is related to educational programming, as determined by the commissioner. The
commissioner shall send the check to the nonpublic school and the parent or guardian shall
restrictively endorse the check for the nonpublic school's use.
new text end

new text begin The scholarship payments must be made by the commissioner to the recipients in
four equal payments on September 15, December 15, March 15, and July 1.
new text end

new text begin Subd. 4. new text end

new text begin Student transportation. new text end

new text begin A resident school district must provide for
transportation within the district's borders for a student who enrolls in a nonpublic school
under this section and shall receive transportation funding equal to the actual costs in the
current school year for those transportation services.
new text end

new text begin Subd. 5. new text end

new text begin Funding for student testing. new text end

new text begin The state shall pay the nonpublic school the
costs of administering tests under section 120B.30.
new text end

new text begin Subd. 6. new text end

new text begin Curriculum review; exemption from instruction. new text end

new text begin A nonpublic school
must provide a procedure for a parent, guardian, or an adult student, 18 years or older, to
review the content of instructional materials and, if the materials are found objectionable,
exempt the student from the instruction upon request.
new text end

new text begin Subd. 7. new text end

new text begin Financial audit. new text end

new text begin A nonpublic school enrolling students under this section
must submit to the commissioner by November 15 of each year a summary of audited
financial data for the preceding fiscal year.
new text end

new text begin Subd. 8. new text end

new text begin List of nonpublic schools. new text end

new text begin The commissioner shall publish a list of
participating nonpublic schools.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2011-2012 school year and later.
new text end

Sec. 15.

Minnesota Statutes 2010, 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.

"Affidavit" means the form an authorizer submits to the commissioner that is a
precondition to a charter school organizing an affiliated nonprofit building corporation
under subdivision 17a.

(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;

(iii) reports an end-of-year fund balance of at least $2,000,000; and

(iv) is incorporated in the state of Minnesota;

(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; or

(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.

(5) no more than three 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 60 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the deficiencies and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. 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) The affidavit to be submitted to and evaluated by the commissioner must include
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, which will include at least the following:

(i) how the statutory purposes defined in subdivision 1 are addressed;

(ii) the mission, goals, program model, and student performance expectations;

(iii) an evaluation plan for the school that includes criteria for evaluating educational,
organizational, and fiscal plans;

(iv) the school's governance plan;

(v) the financial management plan; and

(vi) the administration and operations plan;

(4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
charter school for governing its educational program, controlling its funds, and making
school management decisions;

(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) 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

(7) an assurance specifying that the organization is committed to serving as an
authorizer for the full five-year term.

A disapproved applicant under this paragraph may resubmit an application during a
future application period.

(e) The authorizer must participate in department-approved training.

(f) An authorizer that chartered a school before August 1, 2009, must apply by June
30, deleted text begin 2011 deleted text end new text begin 2012 new text end , 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.

(g) 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.

(h) 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; or

(3) unsatisfactory performance as an approved authorizer.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2010, section 124D.86, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Integration deleted text end new text begin Innovation new text end revenue.

deleted text begin Integration revenue deleted text end new text begin (a) A district's
innovation revenue new text end equals the following amounts:

(1) deleted text begin for Independent School District No. 709, Duluth, $206 times the adjusted pupil
units for the school year;
deleted text end

deleted text begin (2) deleted text end for Independent School District No. 625, St. Paul, new text begin 30 percent of new text end $445 times the
adjusted pupil units for the school year;

deleted text begin (3) deleted text end new text begin (2) new text end for Special School District No. 1, Minneapolis, the sum of new text begin 30 percent of new text end $445
times the adjusted pupil units for the school year and an additional $35 times the adjusted
pupil units for the school year deleted text begin that is provided entirely through a local levy deleted text end ; new text begin and
new text end

deleted text begin (4) deleted text end new text begin (3) new text end for a district not listed in clause (1) deleted text begin , deleted text end new text begin or new text end (2), deleted text begin or (3), that must implement a plan
under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of
protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent,
the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the
aid received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school
year; deleted text end new text begin a district's innovation revenue allowance equals its integration revenue allowance
for fiscal year 2011, except that a district's revenue allowance under this clause may not
exceed $129 per adjusted pupil unit for that year.
new text end

deleted text begin (5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement
a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180,
the lesser of
deleted text end

deleted text begin (i) the actual cost of implementing the plan during the fiscal year minus the aid
received under subdivision 6, or
deleted text end

deleted text begin (ii) $92 times the adjusted pupil units for the school year.
deleted text end

deleted text begin Any money received by districts in clauses (1) to (3) which exceeds the amount
received in fiscal year 2000 shall be subject to the budget requirements in subdivision
1a; and
deleted text end

deleted text begin (6) for a member district of a multidistrict integration collaborative that files a plan
with the commissioner, but is not contiguous to a racially isolated district, integration
revenue equals the amount defined in clause (5).
deleted text end

new text begin (b) A district's innovation levy equals 100 percent of the district's innovation revenue
under paragraph (a), clauses (1) and (2), and 30 percent of the district's innovation revenue
under paragraph (a), clause (3).
new text end

new text begin (c) A district's innovation aid equals its innovation revenue minus its innovation levy.
new text end

new text begin (d) Innovation revenue received under this section must be spent on research-based
activities designed to close the achievement gap.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid recognized by school
districts in fiscal year 2012 and later and for levies payable in 2012 and later.
new text end

Sec. 17.

Minnesota Statutes 2010, section 179A.16, subdivision 1, is amended to read:

Subdivision 1.

Nonessential employees.

An exclusive representative or an
employer of a unit of employees other than essential employees new text begin or teachers new text end may request
interest arbitration by providing written notice of the request to the other party and the
commissioner. The written request for arbitration must specify the items to be submitted to
arbitration and whether conventional, final-offer total-package, or final-offer item-by-item
arbitration is contemplated by the request.

The items to be submitted to arbitration and the form of arbitration to be used are
subject to mutual agreement. If an agreement to arbitrate is reached, it must be reduced to
writing and a copy of the agreement filed with the commissioner. A failure to respond, or
to reach agreement on the items or form of arbitration, within 15 days of receipt of the
request to arbitrate constitutes a rejection of the request.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning July 1, 2013, and applies
to all teacher collective bargaining agreements entered into or modified after that date.
new text end

Sec. 18.

new text begin [179A.175] TEACHER CONTRACTS.
new text end

new text begin Notwithstanding section 179A.16 and any other law to the contrary, a school board
and the exclusive representative of the teachers may meet and negotiate and enter into
an employment contract between March 15 and October 15 in an odd-numbered year.
If the school board and the exclusive representative fail to reach a certified written
agreement by October 15 in the odd-numbered year, the negotiations must be suspended
until the next even-numbered calendar year and resume during the three-month period
preceding September 1 when school is not in session. During the time the negotiations
are suspended, employee compensation must be according to the terms of the collective
bargaining agreement in effect in the preceding collective bargaining cycle. If agreement
is not reached during the three-month period in the even-numbered year, the school board
must submit the matter to an arbitrator selected by the Bureau of Mediation Services
who must determine the matter based on a final offer total package from each party. The
arbitrator's award must not cause a structural imbalance in a district's budget during the
contract term that is subject to the arbitrator's award under this section. An award will
not cause a structural imbalance only if district expenditures do not exceed available
revenue, taking into account current state aid formulas and reasonable and comprehensive
calculations and projections of the district's ongoing revenues and expenditures during the
contract term. Onetime revenue must not be considered when calculating or projecting
available revenue for ongoing expenditures in a contract term.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning July 1, 2013, and applies
to all teacher collective bargaining agreements entered into or modified after that date.
new text end

Sec. 19.

Minnesota Statutes 2010, section 179A.18, subdivision 1, is amended to read:

Subdivision 1.

When authorized.

Essential employees new text begin and teachers new text end may not strike.
Except as otherwise provided by subdivision 2 and section 179A.17, subdivision 2, other
public employees may strike only under the following circumstances:

(1)(i) the collective bargaining agreement between their exclusive representative and
their employer has expired or, if there is no agreement, impasse under section 179A.17,
subdivision 2, has occurred; and

(ii) the exclusive representative and the employer have participated in mediation
over a period of at least 45 days, provided that the mediation period established by section
179A.17, subdivision 2, governs negotiations under that section, and provided that for the
purposes of this subclause the mediation period commences on the day following receipt
by the commissioner of a request for mediation; or

(2) the employer violates section 179A.13, subdivision 2, clause (9); or

(3) in the case of state employees, (i) the Legislative Coordinating Commission has
rejected a negotiated agreement or arbitration decision during a legislative interim; or (ii)
the entire legislature rejects or fails to ratify a negotiated agreement or arbitration decision,
which has been approved during a legislative interim by the Legislative Coordinating
Commission, at a special legislative session called to consider it, or at its next regular
legislative session, whichever occurs first.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning July 1, 2013, and applies
to all teacher collective bargaining agreements entered into or modified after that date.
new text end

Sec. 20.

Minnesota Statutes 2010, section 179A.18, subdivision 3, is amended to read:

Subd. 3.

Notice.

In addition to the other requirements of this section, no employee
may strike unless written notification of intent to strike is served on the employer and the
commissioner by the exclusive representative at least ten days prior to the commencement
of the strike. For all employees deleted text begin other than teachers deleted text end , if more than 30 days have expired
after service of a notification of intent to strike, no strike may commence until ten days
after service of a new written notification. deleted text begin For teachers, no strike may commence more
than 25 days after service of notification of intent to strike unless, before the end of the
25-day period, the exclusive representative and the employer agree that the period during
which a strike may commence shall be extended for an additional period not to exceed five
days. Teachers are limited to one notice of intent to strike for each contract negotiation
period, provided, however, that a strike notice may be renewed for an additional ten days,
the first five of which shall be a notice period during which no strike may occur, if the
following conditions have been satisfied:
deleted text end

deleted text begin (1) an original notice was provided pursuant to this section; and
deleted text end

deleted text begin (2) a tentative agreement to resolve the dispute was reached during the original
strike notice period; and
deleted text end

deleted text begin (3) such tentative agreement was rejected by either party during or after the original
strike notice period.
deleted text end

The first day of the renewed strike notice period shall commence on the day following
the expiration of the previous strike notice period or the day following the rejection
of the tentative agreement, whichever is later. Notification of intent to strike under
subdivisions 1, clause (1); and 2, clause (1), may not be served until the collective
bargaining agreement has expired, or if there is no agreement, on or after the date impasse
under section 179A.17 has occurred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning July 1, 2013, and applies
to all teacher collective bargaining agreements entered into or modified after that date.
new text end

Sec. 21. new text begin IMPLEMENTING A PERFORMANCE-BASED EVALUATION
SYSTEM FOR PRINCIPALS.
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, sections 123B.143,
subdivision 1, clause (3), and 122A.73, the commissioner of education, the Minnesota
Association of Secondary School Principals, and the Minnesota Association of Elementary
School Principals must convene a group of recognized and qualified experts and interested
stakeholders, including principals, superintendents, teachers, school board members, and
parents, among other stakeholders, to develop a performance-based system model for
annually evaluating school principals. In developing the system model, the group must at
least consider how principals develop and maintain:
new text end

new text begin (1) high standards for student performance;
new text end

new text begin (2) rigorous curriculum;
new text end

new text begin (3) quality instruction;
new text end

new text begin (4) a culture of learning and professional behavior;
new text end

new text begin (5) connections to external communities;
new text end

new text begin (6) systemic performance accountability; and
new text end

new text begin (7) leadership behaviors that create effective schools and improve school
performance, including how to plan for, implement, support, advocate for, communicate
about, and monitor continuous and improved learning.
new text end

new text begin The group also may consider whether to establish a multitiered evaluation system
that supports newly licensed principals in becoming highly skilled school leaders and
provides opportunities for advanced learning for more experienced school leaders.
new text end

new text begin (b) The commissioner, the Minnesota Association of Secondary School Principals,
and the Minnesota Association of Elementary School Principals must submit a
written report and all the group's working papers to the education committees of the
legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its
recommendations for a performance-based system model for annually evaluating school
principals. The group convened under this section expires June 1, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to principal evaluations beginning in the 2013-2014 school year and later.
new text end

Sec. 22. new text begin REPORT; PLAN FOR IMPLEMENTING SCHOOL AND DISTRICT
GRADING SYSTEM.
new text end

new text begin The commissioner of education must convene a stakeholder group that includes
assessment and evaluation directors, educators, researchers, and parents to advise the
commissioner on developing a plan to implement the school and district grading system
under Minnesota Statutes, section 120B.361. The commissioner must present the plan
in writing to the education policy and finance committees of the legislature by February
15, 2012, and include any recommendations for further clarifying Minnesota Statutes,
section 120B.361.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23. new text begin REPORT; RECOMMENDATIONS FOR INCREASING SCHOOLS'
FINANCIAL FLEXIBILITY.
new text end

new text begin The commissioner of education must submit to the education policy and finance
committees of the legislature by February 1, 2013, written recommendations that identify
fiscal mandates the legislature might waive to give greater financial flexibility to schools
that received a letter grade of "A," improved at least one letter grade in the preceding
school year, or improved two or more letter grades in the two preceding school years
under Minnesota Statutes, section 120B.361, subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 24. new text begin ENROLLMENT OPTIONS FOR STUDENTS OF LOW-PERFORMING
SCHOOLS; REPORT.
new text end

new text begin The commissioner of education must submit to the education policy and finance
committees of the legislature by February 1, 2014, a report on the enrollment options for
students at low-performing public schools under section 14. The report, at a minimum,
must:
new text end

new text begin (1) examine the demographics of the students participating in the program; and
new text end

new text begin (2) detail the academic performance of students participating in the program,
including their performance on reading and mathematics tests under Minnesota Statutes
2010, section 120B.30, and compare the academic performance of students of similar
demographics in public schools with these students.
new text end

Sec. 25. new text begin ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
new text end

new text begin (a) The Assessment Advisory Committee under Minnesota Statutes, section
120B.365, must develop recommendations for alternative methods by which students meet
the reading and writing exam requirement under Minnesota Statutes, section 120B.30,
subdivision 1b, paragraph (b), clause (10). The Assessment Advisory Committee, among
other alternative methods and if consistent with federal educational accountability law,
must consider allowing students to:
new text end

new text begin (1) achieve a college-credit score on a college-level examination program (CLEP)
for reading and writing; or
new text end

new text begin (2) achieve a college readiness score in the relevant subject area on the American
college test (ACT) or scholastic aptitude test (SAT) exam.
new text end

new text begin (b) The Assessment Advisory Committee must develop recommendations for
alternative methods by which students satisfy the high school algebra and biology
requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (d),
clause (8), and demonstrate their college and career readiness. The Assessment Advisory
Committee, among other alternative methods and if consistent with federal educational
accountability law, must consider allowing students to:
new text end

new text begin (1) achieve the mathematics or science college readiness score on the American
college test (ACT) or scholastic aptitude test (SAT) exam;
new text end

new text begin (2) achieve a college-credit score on a college-level examination program (CLEP)
for algebra or biology; or
new text end

new text begin (3) achieve a score on an equivalent advanced placement or international
baccalaureate exam that would earn credit at a four-year college or university.
new text end

new text begin (c) The Assessment Advisory Committee, for purposes of fully implementing the
high school assessment system under Minnesota Statutes, section 120B.30, subdivision
1b, also must develop recommendations for the administrative structure, criteria,
and processes for implementing the state-level student appeals process. Finally, the
Assessment Advisory Committee must develop recommendations for calculating the
alignment index, including how questions about validity and reliability are resolved,
defining "misaligned" and "highly misaligned," and when and under what specific
circumstances misalignments occur.
new text end

new text begin (d) By February 15, 2013, the Assessment Advisory Committee must submit its
recommendations under this section to the education commissioner and the education
policy and finance committees of the legislature.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26. new text begin ALTERNATIVE COMPENSATION REAPPLICATION.
new text end

new text begin Any school district, intermediate school district, or charter school that has an
approved alternative teacher compensation plan under Minnesota Statutes, section
122A.414, must submit a new application to the commissioner of education by June
1, 2013, that complies with the changes to Minnesota Statutes, section 122A.414,
subdivision 2, paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 27. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Charter school building lease aid. new text end

new text begin For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:
new text end

	new text begin $ new text end	new text begin 48,180,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 53,772,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $13,336,000 for 2011 and $34,844,000 for 2012.
new text end

new text begin The 2013 appropriation includes $14,933,000 for 2012 and $38,839,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Charter school startup cost aid. new text end

new text begin For charter school startup cost aid under
Minnesota Statutes, section 124D.11, subdivision 8:
new text end

	new text begin $ new text end	new text begin 600,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,278,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $119,000 for 2011 and $481,000 for 2012.
new text end

new text begin The 2013 appropriation includes $205,000 for 2012 and $1,073,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Innovation aid. new text end

new text begin For innovation aid under Minnesota Statutes, section
124D.86:
new text end

	new text begin $ new text end	new text begin 53,088,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 36,559,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $27,497,000 for 2011 and $25,592,000 for 2012.
new text end

new text begin The 2013 appropriation includes $10,967,000 for 2012 and $25,592,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Interdistrict desegregation or integration transportation grants. new text end

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

	new text begin $ new text end	new text begin 14,917,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 16,612,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 6. new text end

new text begin Success for the future. new text end

new text begin For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:
new text end

	new text begin $ new text end	new text begin 2,137,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,137,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $641,000 for 2011 and $1,496,000 for 2012.
new text end

new text begin The 2013 appropriation includes $641,000 for 2012 and $1,496,000 for 2013.
new text end

new text begin Subd. 7. new text end

new text begin American Indian teacher preparation grants. new text end

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

	new text begin $ new text end	new text begin 190,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 190,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 8. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract school aid under Minnesota
Statutes, section 124D.83:
new text end

	new text begin $ new text end	new text begin 2,091,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,207,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $600,000 for 2011 and $1,491,000 for 2012.
new text end

new text begin The 2013 appropriation includes $638,000 for 2012 and $1,569,000 for 2013.
new text end

new text begin Subd. 9. new text end

new text begin Early childhood programs at tribal schools. new text end

new text begin For early childhood family
education programs at tribal contract schools under Minnesota Statutes, section 124D.83,
subdivision 4:
new text end

	new text begin $ new text end	new text begin 68,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 68,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 10. new text end

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

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

	new text begin $ new text end	new text begin 15,150,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 15,150,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin Subd. 11. new text end

new text begin Examination fees; teacher training and support programs. new text end

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

	new text begin $ new text end	new text begin 4,500,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 4,500,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

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

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

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

new text begin Subd. 12. new text end

new text begin Concurrent enrollment programs. new text end

new text begin For concurrent enrollment programs
under Minnesota Statutes, section 124D.091:
new text end

	new text begin $ new text end	new text begin 2,000,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,000,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

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

new text begin Subd. 13. new text end

new text begin Collaborative urban educator. new text end

new text begin For the collaborative urban educator
grant program:
new text end

	new text begin $ new text end	new text begin 528,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 528,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin Each institution shall prepare for the legislature, by January 15 of each year, a
detailed report regarding the funds used. The report must include the number of teachers
prepared as well as the diversity for each cohort of teachers produced.
new text end

new text begin Subd. 14. new text end

new text begin Youth works program. new text end

new text begin For funding youth works programs under
Minnesota Statutes, sections 124D.37 to 124D.45:
new text end

	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin Subd. 15. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
new text end

	new text begin $ new text end	new text begin 725,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 725,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin $40,000 each year is for student organizations serving health occupations.
new text end

new text begin $38,000 each year is for student organizations serving service occupations.
new text end

new text begin $88,000 each year is for student organizations serving trade and industry occupations.
new text end

new text begin $84,000 each year is for student organizations serving business occupations.
new text end

new text begin $131,000 each year is for student organizations serving agriculture occupations.
new text end

new text begin $125,000 each year is for student organizations serving family and consumer science
occupations.
new text end

new text begin $95,000 each year is for student organizations serving marketing occupations.
new text end

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

new text begin Subd. 16. new text end

new text begin Early childhood literacy programs. new text end

new text begin For early childhood literacy
programs under Minnesota Statutes, section 119A.50, subdivision 3:
new text end

	new text begin $ new text end	new text begin 1,375,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,375,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Up to $1,375,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
Serve Minnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
new text end

new text begin Subd. 17. new text end

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

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

	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 18. new text end

new text begin Principals' Leadership Institute. new text end

new text begin For principal leadership activities
under Minnesota Statutes, section 122A.74:
new text end

	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 19. new text end

new text begin School recognition awards. new text end

new text begin For payments to school districts for the
school recognition award program under Minnesota Statutes, section 120B.361:
new text end

	new text begin $ new text end	new text begin 0 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,455,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2013 appropriation includes $0 for 2012 and $3,455,000 for 2013.
new text end

new text begin Subd. 20. new text end

new text begin Enrollment options for students at low-performing schools. new text end

new text begin For the
enrollment options for students at low-performing schools under Minnesota Statutes,
section 124D.031:
new text end

	new text begin $ new text end	new text begin 5,616,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 13,131,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Of this appropriation, $400,000 in 2012 and $800,000 in 2013 are for payments to
school districts for reimbursement for transportation expenses under Minnesota Statutes,
section 124D.031, subdivision 4.
new text end

Sec. 28. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 123B.05; and 179A.18, subdivision 2, new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, section 124D.86, subdivisions 1, 1a, 2, 4, 5, and 6, new text end new text begin are
repealed.
new text end

ARTICLE 3

SPECIAL EDUCATION

Section 1.

Minnesota Statutes 2010, section 125A.07, is amended to read:

125A.07 RULEMAKING.

(a) Consistent with this section, the commissioner shall adopt new rules and
amend existing rules related to children with disabilities only deleted text begin under deleted text end new text begin after receiving new text end
specific new text begin legislative new text end authority new text begin to do so, consistent with section 127A.05, subdivision 4, new text end and
consistent with the requirements of chapter 14 and paragraph (c). new text begin Technical changes and
corrections are exempted from this paragraph.
new text end

(b) As provided in this paragraph, the state's regulatory scheme should support
schools by assuring that all state special education rules adopted by the commissioner
result in one or more of the following outcomes:

(1) increased time available to teachers and, where appropriate, to support staff
including school nurses for educating students through direct and indirect instruction;

(2) consistent and uniform access to effective education programs for students with
disabilities throughout the state;

(3) reduced inequalities and conflict, appropriate due process hearing procedures
and reduced court actions related to the delivery of special education instruction and
services for students with disabilities;

(4) clear expectations for service providers and for students with disabilities;

(5) increased accountability for all individuals and agencies that provide instruction
and other services to students with disabilities;

(6) greater focus for the state and local resources dedicated to educating students
with disabilities; and

(7) clearer standards for evaluating the effectiveness of education and support
services for students with disabilities.

(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule
related to children with disabilities if such action is specifically required by federal law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 125A.21, subdivision 2, is amended to read:

Subd. 2.

Third-party reimbursement.

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

(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
under chapter 256L who have no other health coverage, a district shall provide an initial new text begin
and annual new text end written notice to the enrolled child's parent or legal representative of its intent
to seek reimbursement from medical assistance or MinnesotaCare for the deleted text begin individual deleted text end new text begin
individualized new text end education deleted text begin plan deleted text end new text begin program new text end health-related services provided by the district. new text begin
The initial notice must give the child's parent or legal representative the right to:
new text end

new text begin (1) request a copy of the child's education records on the health-related services that
the district provided to the child and disclosed to a third-party payer;
new text end

new text begin (2) withdraw consent for the district to disclose information in a child's education
record at any time without affecting a parent's eligibility for MinnesotaCare or medical
assistance under section 256B.08, subdivision 1, including consent that the parent or
legal representative gave as part of the application process for MinnesotaCare or medical
assistance; and
new text end

new text begin (3) receive a statement, consistent with clause (2), indicating that a decision to
withdraw consent for the district to disclose information in a child's education record does
not affect a parent's eligibility for MinnesotaCare or medical assistance.
new text end

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

(1) the district's intent to seek reimbursement from medical assistance or
MinnesotaCare for individual education plan health-related services provided by the
district;

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

(3) the right of the parent or legal representative to withdraw consent for disclosure
of a child's records at any time without consequence new text begin , including consent that the parent
or legal representative gave as part of the application process for any public assistance
program that may result in a parent's eligibility for MinnesotaCare or medical assistance
under section 256B.08, subdivision 1 new text end .

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 125A.21, subdivision 3, is amended to read:

Subd. 3.

Use of reimbursements.

Of the reimbursements received, districts may:

(1) retain an amount sufficient to compensate the district for its administrative costs
of obtaining reimbursements;

(2) regularly obtain from education- and health-related entities training and other
appropriate technical assistance designed to improve the district's ability to deleted text begin determine
which services are reimbursable and to seek timely reimbursement in a cost-effective
manner deleted text end new text begin access third-party payments for individualized education program health-related
services new text end ; or

(3) reallocate reimbursements for the benefit of students with deleted text begin special needs deleted text end new text begin
individualized education programs or individual family service plans new text end in the district.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 125A.21, subdivision 5, is amended to read:

Subd. 5.

Informed consent.

When obtaining informed consent, consistent with
sections 13.05, subdivision 4a deleted text begin ; and deleted text end new text begin , new text end 256B.77, subdivision 2, paragraph (p) new text begin , and Code of
Federal Regulations, title 34, parts 99 and 300 new text end , to bill health plans for covered services, the
school district must notify the legal representative (1) that the cost of the person's private
health insurance premium may increase due to providing the covered service in the school
setting, (2) that the school district may pay certain enrollee health plan costs, including
but not limited to, co-payments, coinsurance, deductibles, premium increases or other
enrollee cost-sharing amounts for health and related services required by an individual
service plan, or individual family service plan, and (3) that the school's billing for each
type of covered service may affect service limits and prior authorization thresholds. The
informed consent may be revoked in writing at any time by the person authorizing the
billing of the health plan.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2010, section 125A.21, subdivision 7, is amended to read:

Subd. 7.

District disclosure of information.

A school district may disclose
information contained in a student's deleted text begin individual deleted text end new text begin individualized new text end education deleted text begin plan deleted text end new text begin program new text end ,
consistent with section 13.32, subdivision 3, paragraph (a), new text begin and Code of Federal
Regulations, title 34, parts 99 and 300; new text end including records of the student's diagnosis and
treatment, to a health plan company only with the signed and dated consent of the student's
parent, or other legally authorized individual new text begin , including consent that the parent or legal
representative gave as part of the application process for MinnesotaCare or medical
assistance under section 256B.08, subdivision 1 new text end . The school district shall disclose only
that information necessary for the health plan company to decide matters of coverage and
payment. A health plan company may use the information only for making decisions
regarding coverage and payment, and for any other use permitted by law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2010, section 125A.515, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Students without a disability from other states. new text end

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

new text begin (1) is not a resident of Minnesota;
new text end

new text begin (2) does not have an individualized education program; and
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011, for fiscal year 2012
and later.
new text end

Sec. 7.

Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Two kinds deleted text end new text begin Admissions new text end .

deleted text begin There are two kinds of deleted text end Admission to the
Minnesota State Academies new text begin is described in this section new text end .

(a) A pupil who is deaf, hard of hearing, or deleted text begin blind-deaf deleted text end new text begin deafblind new text end , may be admitted to
the Academy for the Deaf. A pupil who is blind or visually impaired, deleted text begin blind-deaf deleted text end new text begin deafblind new text end ,
or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be
admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65.

(1) It must be decided by the individual education planning team that education in
regular or special education classes in the pupil's district of residence cannot be achieved
satisfactorily because of the nature and severity of the deafness or blindness or visual
impairment respectively.

(2) It must be decided by the individual education planning team that the academy
provides the most appropriate placement within the least restrictive alternative for the
pupil.

(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to
get socialization skills or on a short-term basis for skills development.

new text begin (c) A parent of a child who resides in Minnesota and who meets the disability criteria
for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may
apply to place the child in the Minnesota State Academies. Academy staff must review
the application to determine whether the Minnesota State Academies is an appropriate
placement for the child. If academy staff determine that the Minnesota State Academies is
an appropriate placement, the staff must invite the individualized education program team
at the child's resident school district to participate in a meeting to arrange a trial placement
of between 60 and 90 calendar days at the Minnesota State Academies. If the child's
parent consents to the trial placement, the Minnesota State Academies is the responsible
serving school district and incurs all due process obligations under law, and the child's
resident school district is responsible for any transportation included in the child's
individualized education program during the trial placement. Before the trial placement
ends, academy staff must convene an individualized education program team meeting to
determine whether to continue the child's placement at the Minnesota State Academies
or that another placement is appropriate. If the academy members of the individualized
education program team and the parent are unable to agree on the child's placement, the
child's placement reverts to the placement in the child's individualized education program
that immediately preceded the trial placement. If the parent and individualized education
program team agree to continue the placement beyond the trial period, the transportation
and due process responsibilities are the same as those described for the trial placement
under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 8.

Minnesota Statutes 2010, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

(b) "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing services to students. Essential personnel may also include
special education paraprofessionals or clericals providing support to teachers and students
by preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individual education plans. Essential
personnel does not include administrators and supervisors.

(c) "Average daily membership" has the meaning given it in section 126C.05.

(d) "Program growth factor" means deleted text begin 1.046 deleted text end new text begin 1.0 new text end for fiscal year 2012 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 9.

Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
transportation services eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services, supplies, equipment, and
transportation services under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
eligible for revenue under section 125A.76, subdivision 2.

(b) "General revenue" means the sum of the general education revenue according to
section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
the total qualifying referendum revenue specified in paragraph (e) minus transportation
sparsity revenue minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in section 126C.05.

(d) "Program growth factor" means deleted text begin 1.02 deleted text end new text begin 1.0 new text end for fiscal year 2012 and later.

(e) "Total qualifying referendum revenue" means two-thirds of the district's total
referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2012
and later.
new text end

Sec. 10.

Laws 2009, chapter 79, article 5, section 60, as amended by Laws 2009,
chapter 173, article 1, section 37, is amended to read:

Sec. 60.

Minnesota Statutes 2008, section 256L.05, is amended by adding a
subdivision to read:

Subd. 1c.

Open enrollment and streamlined application and enrollment
process.

(a) The commissioner and local agencies working in partnership must develop a
streamlined and efficient application and enrollment process for medical assistance and
MinnesotaCare enrollees that meets the criteria specified in this subdivision.

(b) The commissioners of human services and education shall provide
recommendations to the legislature by January 15, 2010, on the creation of an open
enrollment process for medical assistance and MinnesotaCare that is coordinated with
the public education system. The recommendations must:

(1) be developed in consultation with medical assistance and MinnesotaCare
enrollees and representatives from organizations that advocate on behalf of children and
families, low-income persons and minority populations, counties, school administrators
and nurses, health plans, and health care providers;

(2) be based on enrollment and renewal procedures best practices;

(3) simplify the enrollment and renewal processes wherever possible; and

(4) establish a process:

(i) to disseminate information on medical assistance and MinnesotaCare to all
children in the public education system, including prekindergarten programs; and

(ii) for the commissioner of human services to enroll children and other household
members who are eligible.

The commissioner of human services in coordination with the commissioner of
education shall implement an open enrollment process by August 1, 2010, to be effective
beginning with the 2010-2011 school year.

(c) The commissioner and local agencies shall develop an online application process
for medical assistance and MinnesotaCare.

(d) The commissioner shall develop an application for children that is easily
understandable and does not exceed four pages in length.

(e) The commissioner of human services shall present to the legislature, by January
15, 2010, an implementation plan for the open enrollment period and online application
process.

new text begin (f) The commissioner of human services, after consulting with the commissioner of
education, shall include on new and revised Minnesota health care program application
forms, including electronic application forms, an authorization for consent that, if signed
by the parent or legal representative of a child receiving health-related services through
an individualized education program or an individual family services plan, would allow
the school district or other provider of covered services to release information from the
child's education record to the commissioner to permit the provider to be reimbursed by
MinnesotaCare or medical assistance. The authorization for consent under this paragraph
must conform to federal data practices law governing access to nonpublic data in a child's
education record and indicate that the parent or legal representative of the child may
withdraw his or her consent at any time without any consequence to the parent or child.
The commissioner must include this authorization for consent on an application form at
the time the commissioner reviews, revises, or replaces the form.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 11. new text begin THIRD-PARTY BILLING.
new text end

new text begin (a) To allow cost-effective billing of medical assistance for covered services that are
not reimbursed by legally liable third party private payers, the commissioner of human
services must:
new text end

new text begin (1) summarize and document school district efforts to secure reimbursement from
legally liable third parties; and
new text end

new text begin (2) request initial and continuing waivers of the requirement to seek payment from a
child's private health plan, consistent with Code of Federal Regulations, title 42, section
433.139, chapter IV, part 433, based on the determination by the Centers for Medicare and
Medicaid Services that this requirement is not cost-effective. The waiver request must
seek permission for the commissioner to allow school districts to bill Medicaid alone,
without first billing private payers, when a child has both public and private coverage.
new text end

new text begin (b) If the Centers for Medicare and Medicaid Services does not grant ongoing
permission to implement paragraph (a), clause (2), the commissioner of human services
shall seek permission to implement clause (2) on a time-limited basis, with the opportunity
to renew this time-limited permission as needed.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

new text begin For special education aid under Minnesota
Statutes, section 125A.75:
new text end

	new text begin $ new text end	new text begin 789,955,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 796,681,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $235,975,000 for 2011 and $553,980,000 for 2012.
new text end

new text begin The 2013 appropriation includes $237,419,000 for 2012 and $559,262,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Aid for children with disabilities. new text end

new text begin For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:
new text end

	new text begin $ new text end	new text begin 1,648,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,745,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin If the appropriation for either year is insufficient, the appropriation for the other
year is available.
new text end

new text begin Subd. 4. new text end

new text begin Travel for home-based services. new text end

new text begin For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:
new text end

	new text begin $ new text end	new text begin 357,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 359,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $107,000 for 2011 and $250,000 for 2012.
new text end

new text begin The 2013 appropriation includes $107,000 for 2012 and $252,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Special education; excess costs. new text end

new text begin For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:
new text end

	new text begin $ new text end	new text begin 111,243,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 112,122,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $53,449,000 for 2011 and $57,794,000 for 2012.
new text end

new text begin The 2013 appropriation includes $53,777,000 for 2012 and $58,345,000 for 2013.
new text end

new text begin Subd. 6. new text end

new text begin Court-placed special education revenue. new text end

new text begin For reimbursing serving
school districts for unreimbursed eligible expenditures attributable to children placed in
the serving school district by court action under Minnesota Statutes, section 125A.79,
subdivision 4:
new text end

	new text begin $ new text end	new text begin 80,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 82,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 7. new text end

new text begin Special education out-of-state tuition. new text end

new text begin For special education out-of-state
tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
new text end

	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

Sec. 13. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall substitute the term "individualized education program"
or similar terms for "individual education plan" or similar terms wherever they appear
in Minnesota Statutes and Minnesota Rules referring to the requirements relating to
the federal Individuals with Disabilities Education Act. The revisor shall also make
grammatical changes related to the changes in terms.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGIES

Section 1.

Minnesota Statutes 2010, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $17,161,000 deleted text end new text begin $12,425,000 new text end in fiscal year 2012 deleted text begin and $19,175,000 deleted text end new text begin , $20,459,000 new text end in
fiscal year 2013 new text begin , $28,558,000 in fiscal year 2014, and $24,095,000 in fiscal year 2015 new text end and
later are appropriated from the general fund to the commissioner of education for payment
of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

Sec. 2.

Minnesota Statutes 2010, section 123B.59, subdivision 5, is amended to read:

Subd. 5.

Levy authorized.

A district may levy for costs related to an approved
facility plan as follows:

(a) if the district has indicated to the commissioner that bonds will be issued, the
district may levy for the principal and interest payments on outstanding bonds issued
according to subdivision 3 deleted text begin after reduction for any alternative facilities aid receivable
under subdivision 6 deleted text end ; or

(b) if the district has indicated to the commissioner that the plan will be funded
through levy, the district may levy according to the schedule approved in the plan deleted text begin after
reduction for any alternative facilities aid receivable under subdivision 6 deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end

Sec. 3.

Minnesota Statutes 2010, 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), new text begin for taxes payable in
2012 to 2022, new text end 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 deleted text begin purchase deleted text end agreement deleted text begin for deleted text end new text begin to finance improvements to new text end a building 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). new text begin The total levy authority under this paragraph shall not exceed $632,000 each year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2012 and later.
new text end

Sec. 4. new text begin EARLY REPAYMENT.
new text end

new text begin A school district that received a maximum effort capital loan prior to January 1,
1997, may repay the full outstanding original principal on its capital loan prior to July 1,
2012, and the liability of the district on the loan is satisfied and discharged and interest
on the loan ceases.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
new text end

	new text begin $ new text end	new text begin 123,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 113,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $39,000 for 2011 and $84,000 for 2012.
new text end

new text begin The 2013 appropriation includes $36,000 for 2012 and $77,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
new text end

	new text begin $ new text end	new text begin 12,425,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 20,459,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $2,604,000 for 2011 and $9,821,000 for 2012.
new text end

new text begin The 2013 appropriation includes $4,208,000 for 2012 and $16,251,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
new text end

	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 5,786,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $5,786,000 for 2011 and $13,501,000 for 2012.
new text end

new text begin The 2013 appropriation includes $5,786,000 for 2012 and $0 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
new text end

	new text begin $ new text end	new text begin 3,750,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,750,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2012 and 2013 shall be prorated.
new text end

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

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
new text end

	new text begin $ new text end	new text begin 2,494,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,035,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $676,000 for 2011 and $1,818,000 for 2012.
new text end

new text begin The 2013 appropriation includes $778,000 for 2012 and $2,257,000 for 2013.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 123B.59, subdivisions 6 and 7, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2010, section 16A.152, subdivision 2, is amended to
read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of management and budget determines
that there will be a positive unrestricted budgetary general fund balance at the close of
the biennium, the commissioner of management and budget must allocate money to the
following accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve;

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, deleted text begin paragraph (a), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20, deleted text end by the same amount;

(5) to the state airports fund, the amount necessary to restore the amount transferred
from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
subdivision 5; and

(6) to the fire safety account in the special revenue fund, the amount necessary to
restore transfers from the account to the general fund made in Laws 2010.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar
amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
education. The commissioner of education shall increase the aid payment percentage and
reduce the property tax shift percentage by these amounts and apply those reductions to
the current fiscal year and thereafter.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:

Subd. 5.

Levy recognition.

(a) For fiscal years 2009 and 2010, in June of each
year, the school district must recognize as revenue, in the fund for which the levy was
made, the lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6; plus

(iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).

(b) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or

(2) the sum of:

(i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6; plus

(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
deleted text begin not including the levy portions that are assumed by the state, deleted text end that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2011 and later.
new text end

Sec. 3.

Minnesota Statutes 2010, section 127A.441, is amended to read:

127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

new text begin (a) new text end Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph (a) or (b). For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall
not be adjusted pursuant to this section.

new text begin (b) The commissioner shall schedule the timing of the adjustments under paragraph
(a) as close to the end of the fiscal year as possible.
new text end

The school district shall be notified of the amount of the adjustment made to each
payment pursuant to this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2011 and later.
new text end

Sec. 4.

Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) "Other district receipts" means payments by county
treasurers pursuant to section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county auditor pursuant to section
127A.34, subdivision 2, and payments to school districts by the commissioner of revenue
pursuant to chapter 298.

(b) "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) "Payment date" means the date on which state payments to districts are made
by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
or a weekday which is a legal holiday, the payment shall be made on the immediately
preceding business day. The commissioner may make payments on dates other than
those listed in subdivision 3, but only for portions of payments from any preceding
payment dates which could not be processed by the electronic funds transfer method due
to documented extenuating circumstances.

(d) The current year aid payment percentage equals 73 in fiscal year 2010, 70 in
fiscal deleted text begin year deleted text end new text begin years new text end 2011 new text begin , 2012, and 2013 new text end , and 90 in fiscal deleted text begin years 2012 deleted text end new text begin year 2014 new text end and later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin LEVY AID RECOGNITION TIMING.
new text end

new text begin Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
commissioner of education shall schedule the portion of the aid adjustment for fiscal year
2011 attributable to the exclusion of levy portions assumed by the state from the levy
recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
with the final payment for fiscal year 2011 made on October 30, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin FUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
years 2012 and 2013 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.
new text end

new text begin (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.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
new text end

	new text begin $ new text end	new text begin 12,626,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 12,878,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 3. new text end

new text begin School breakfast. new text end

new text begin For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:
new text end

	new text begin $ new text end	new text begin 4,759,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 4,875,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 4. new text end

new text begin Kindergarten milk. new text end

new text begin For kindergarten milk aid under Minnesota Statutes,
section 124D.118:
new text end

	new text begin $ new text end	new text begin 1,084,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,105,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 5. new text end

new text begin Summer food service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
new text end

	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

Sec. 8. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 127A.46, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 6

LIBRARIES

Section 1. new text begin DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 13,570,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 13,570,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $4,071,000 for 2011 and $9,499,000 for 2012.
new text end

new text begin The 2013 appropriation includes $4,071,000 for 2012 and $9,499,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
new text end

	new text begin $ new text end	new text begin 1,300,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,300,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $390,000 for 2011 and $910,000 for 2012.
new text end

new text begin The 2013 appropriation includes $390,000 for 2012 and $910,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
new text end

	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 2,300,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,300,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $690,000 for 2011 and $1,610,000 for 2012.
new text end

new text begin The 2013 appropriation includes $690,000 for 2012 and $1,610,000 for 2013.
new text end

ARTICLE 7

EARLY CHILDHOOD EDUCATION

Section 1. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin School readiness. new text end

new text begin For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:
new text end

	new text begin $ new text end	new text begin 10,095,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 10,095,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $3,028,000 for 2011 and $7,067,000 for 2012.
new text end

new text begin The 2013 appropriation includes $3,028,000 for 2012 and $7,067,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Early childhood family education aid. new text end

new text begin For early childhood family
education aid under Minnesota Statutes, section 124D.135:
new text end

	new text begin $ new text end	new text begin 22,466,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 23,015,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $6,542,000 for 2011 and $15,924,000 for 2012.
new text end

new text begin The 2013 appropriation includes $6,824,000 for 2012 and $16,191,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Health and developmental screening aid. new text end

new text begin For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
new text end

	new text begin $ new text end	new text begin 3,568,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 3,547,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $1,066,000 for 2011 and $2,502,000 for 2012.
new text end

new text begin The 2013 appropriation includes $1,072,000 for 2012 and $2,475,000 for 2013.
new text end

new text begin Subd. 5. new text end

new text begin Head Start program. new text end

new text begin For Head Start programs under Minnesota Statutes,
section 119A.52:
new text end

	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 6. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under
Minnesota Statutes, section 124D.129:
new text end

	new text begin $ new text end	new text begin 49,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 49,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 7. new text end

new text begin Kindergarten entrance assessment initiative and intervention
program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:
new text end

	new text begin $ new text end	new text begin 281,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 281,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 8. new text end

new text begin Early childhood education scholarships. new text end

new text begin For grants to early childhood
education scholarships:
new text end

	new text begin $ new text end	new text begin 5,000,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 5,000,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin (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.
new text end

new text begin (b) A parent or legal guardian is eligible for an early childhood education scholarship
if the parent or legal guardian:
new text end

new text begin (1) has a child three or four years of age on September 1, beginning in calendar
year 2011; and
new text end

new text begin (2)(i) has income equal to or less than 47 percent of the state median income in the
current calendar year; or
new text end

new text begin (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.
new text end

new text begin 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.
new text end

ARTICLE 8

PREVENTION

Section 1.

Minnesota Statutes 2010, section 124D.19, subdivision 3, is amended to
read:

Subd. 3.

Community education director.

(a) Except as provided under paragraphs
(b) and (c), each board shall employ a licensed community education director. The board
shall submit the name of the person who is serving as director of community education
under this section on the district's annual community education report to the commissioner.

(b) A board may apply to the Minnesota Board of School Administrators under
Minnesota Rules, part 3512.3500, subpart 9, for authority to use an individual who is not
licensed as a community education director.

(c) A board of a district with a total population of deleted text begin 2,000 deleted text end new text begin 10,000 new text end or less may identify
an employee who holds a valid Minnesota principal or superintendent license under
Minnesota Rules, chapter 3512, to serve as director of community education. To be
eligible for an exception under this paragraph, the board shall certify in writing to the
commissioner that the district has not placed a licensed director of community education
on unrequested leave.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Community education aid. new text end

new text begin For community education aid under
Minnesota Statutes, section 124D.20:
new text end

	new text begin $ new text end	new text begin 478,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 694,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $134,000 for 2011 and $344,000 for 2012.
new text end

new text begin The 2013 appropriation includes $147,000 for 2012 and $547,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities
programs under Minnesota Statutes, section 124D.56:
new text end

	new text begin $ new text end	new text begin 710,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 710,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $213,000 for 2011 and $497,000 for 2012.
new text end

new text begin The 2013 appropriation includes $213,000 for 2012 and $497,000 for 2013.
new text end

new text begin Subd. 4. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:
new text end

	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin Subd. 5. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota Statutes,
section 124D.22:
new text end

	new text begin $ new text end	new text begin 1,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 1,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
new text end

new text begin The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.
new text end

ARTICLE 9

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to
read:

Subdivision 1.

State total adult basic education aid.

(a) deleted text begin The state total adult basic
education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a),
or section 124D.52, subdivision 3. The state total adult basic education aid for fiscal
year 2007 equals $37,673,000 plus any amount that is not paid for during the previous
fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section
124D.52, subdivision 3. deleted text end The state total adult basic education aid for fiscal year deleted text begin 2008 deleted text end new text begin 2012
and later new text end equals deleted text begin $40,650,000 deleted text end new text begin $44,550,000 new text end , plus any amount that is not paid during the
previous fiscal year as a result of adjustments under subdivision 4, paragraph (a), or
section 124D.52, subdivision 3. deleted text begin The state total adult basic education aid for later fiscal
years equals:
deleted text end

deleted text begin (1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
deleted text end

deleted text begin (2) the lesser of:
deleted text end

deleted text begin (i) 1.03; or
deleted text end

deleted text begin (ii) the average growth in state total contact hours over the prior ten program years.
deleted text end

Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2012
and later.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under Minnesota
Statutes, section 124D.531:
new text end

	new text begin $ new text end	new text begin 44,452,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 44,507,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin The 2012 appropriation includes $13,365,000 for 2011 and $31,087,000 for 2012.
new text end

new text begin The 2013 appropriation includes $13,322,000 for 2012 and $31,185,000 for 2013.
new text end

new text begin Subd. 3. new text end

new text begin GED tests. new text end

new text begin For payment of 60 percent of the costs of GED tests under
Minnesota Statutes, section 124D.55:
new text end

	new text begin $ new text end	new text begin 125,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 125,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

ARTICLE 10

STATE AGENCIES

Section 1.

Minnesota Statutes 2010, section 120B.35, subdivision 1, is amended to read:

Subdivision 1.

School and student indicators of growth and achievement.

The commissioner must develop and implement a system for measuring and reporting
academic achievement and individual student growth, consistent with the statewide
educational accountability and reporting system. The system components must measure
and separately report the adequate yearly progress of schools and the growth of individual
students: students' current achievement in schools under subdivision 2; and individual
students' educational growth over time under subdivision 3. new text begin The commissioner annually
must report a student's growth and progress toward grade-level proficiency under section
120B.299 as it relates to applicable state academic standards and the statewide assessments
aligned with those standards. new text end The system also must include statewide measures of student
academic growth that identify schools with high levels of growth, and also schools with
low levels of growth that need improvement. When determining a school's effect, the data
must include both statewide measures of student achievement and, to the extent annual
tests are administered, indicators of achievement growth that take into account a student's
prior achievement. Indicators of achievement and prior achievement must be based on
highly reliable statewide or districtwide assessments. Indicators that take into account a
student's prior achievement must not be used to disregard a school's low achievement or to
exclude a school from a program to improve low achievement levels.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012, and applies to growth
data beginning in the 2012-2013 school year.
new text end

Sec. 2.

Minnesota Statutes 2010, section 120B.36, subdivision 1, is amended to read:

Subdivision 1.

School performance report cards.

(a) The commissioner
shall report student academic performance under section 120B.35, subdivision 2; the
percentages of students showing low, medium, and high growth under section 120B.35,
subdivision 3, paragraph (b); school safety and student engagement and connection
under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
120B.35, subdivision 3, paragraph (c); two separate student-to-teacher ratios that clearly
indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for
purposes of determining these ratios; staff characteristics excluding salaries; new text begin the number
of teachers in each performance effectiveness rating category under section 122A.411,
subdivision 3, by school site; new text end student enrollment demographics; district mobility; and
extracurricular activities. The report also must indicate a school's adequate yearly progress
status, and must not set any designations applicable to high- and low-performing schools
due solely to adequate yearly progress status.

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards.

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

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

(e) School performance report card data are nonpublic data under section 13.02,
subdivision 9, until not later than ten days after the appeal procedure described in
paragraph (d) concludes. The department shall annually post school performance report
cards to its public Web site no later than September 1.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, 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 after completion thereof, the probationary period in each
district in which the teacher is thereafter employed shall be one year. The school board
must new text begin issue a three-year employment contract and new text end adopt a plan for written evaluation of
teachers during the probationary period new text begin that complies with section 122A.411. During the
first 90 school days only of a probationary teacher's first year of employment, the board
may terminate the teacher at will new text end . Evaluation must occur at least three times each year for a
teacher performing services on 120 or more school days, at least two times each year for a
teacher performing services on 60 to 119 school days, and at least one time each year for a
teacher performing services on fewer than 60 school days. 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. deleted text begin 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, deleted text end The board must give any
deleted text begin such deleted text end new text begin probationary new text end teacher whose contract it declines to renew for the following school
year written notice to that effect before 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 60 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.

new text begin (e) A district must decide whether to issue a contract to a probationary classroom
teacher at the end of the teacher's probationary period based on:
new text end

new text begin (1) the teacher's professional growth plan based on standards of effective professional
practice, student learning goals, and teacher evaluations under this subdivision that
comply with section 122A.411;
new text end

new text begin (2) the teacher's appraisal results and performance effectiveness rating under section
122A.411; and
new text end

new text begin (3) other locally selected criteria aligned to instructional practices in teaching and
learning.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2010, section 122A.40, subdivision 6, is amended to read:

Subd. 6.

new text begin Professional development and new text end mentoring for probationary teachers.

new text begin (a) A school board and the exclusive representative of the teachers in the district must
collaborate in establishing a professional development model for probationary teachers,
consistent with subdivision 8, that uses a district's professional development resources and
plans, including those under sections 122A.414, if applicable, 122A.60, and 122A.61, to
improve teaching and learning.
new text end

new text begin (b) new text end A school board and an exclusive representative of the teachers in the district
must develop a probationary teacher peer review process through joint agreement. The
process may include having trained observers serve as mentors or coaches or having
teachers participate in professional learning communities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2010, section 122A.40, subdivision 7, is amended to read:

Subd. 7.

Termination of contract after probationary period.

(a) A teacher who
has completed a probationary period in any district, and who has not been discharged or
advised of a refusal to renew the teacher's contract under subdivision 5, shall elect to have
a deleted text begin continuing deleted text end new text begin renewable five-year new text end contract with deleted text begin such deleted text end new text begin the new text end district where contract terms and
conditions, including salary and salary increases, are established based either on the length
of the school calendar or an extended school calendar under section 120A.415. deleted text begin Thereafter, deleted text end
The teacher's contract must remain in full force and effect, except as modified by mutual
consent of the board and the teacher, until terminated by a majority roll call vote of the full
membership of the board prior to April 1 upon one of the grounds specified in subdivision
9 or July 1 upon one of the grounds specified in subdivision 10 or 11, or until the teacher
is discharged pursuant to subdivision 13, or by the written resignation of the teacher
submitted prior to April 1. If an agreement as to the terms and conditions of employment
for the succeeding school year has not been adopted pursuant to the provisions of sections
179A.01 to 179A.25 prior to March 1, the teacher's right of resignation is extended to the
30th calendar day following the adoption of deleted text begin said deleted text end new text begin the new text end contract deleted text begin in compliance with deleted text end new text begin under new text end
section 179A.20, subdivision 5. deleted text begin Such deleted text end Written resignation by the teacher is effective deleted text begin as
of deleted text end new text begin on new text end June 30 if submitted deleted text begin prior to deleted text end new text begin before new text end that date and the deleted text begin teachers' deleted text end new text begin teacher's new text end right of
resignation for the new text begin next new text end school year deleted text begin then beginning deleted text end shall cease on July 15.

new text begin (b) new text end Before a teacher's contract is terminated by the board, the board must notify
the teacher in writing and state its ground for the proposed termination in reasonable
detail together with a statement that the teacher may make a written request for a hearing
before the board within 14 days after receipt of such notification. If the grounds are those
specified in subdivision 9 or 13, the notice must also state a teacher may request arbitration
under subdivision 15. Within 14 days after receipt of this notification the teacher may
make a written request for a hearing before the board or an arbitrator and it shall be
granted upon reasonable notice to the teacher of the date set for hearing, before final action
is taken. If no hearing is requested within such period, it shall be deemed acquiescence by
the teacher to the board's action. deleted text begin Such deleted text end new text begin The teacher's new text end termination deleted text begin shall take effect at the
close of the school year in which the contract is terminated in the manner aforesaid deleted text end new text begin must
comply with subdivision 9 or 13 new text end . deleted text begin Such deleted text end new text begin A new text end contract may be terminated at any time by mutual
consent of the board and the teacher and this section does not affect the powers of a board
to suspend, discharge, or demote a teacher under and pursuant to other provisions of law.

deleted text begin (b) deleted text end new text begin (c) new text end A teacher electing to have a continuing contract based on the extended school
calendar under section 120A.415 must participate in staff development training under
subdivision 7a and shall receive an increased base salary.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
to read:

new text begin Subd. 7b. new text end

new text begin Teacher employment. new text end

new text begin (a) A school district must use a teacher appraisal
framework to make informed decisions about teacher development and performance.
Teachers must participate in ongoing professional development to improve teaching and
learning throughout a term of employment.
new text end

new text begin (b) After completing the initial three-year probationary period without discharge, a
teacher who is reemployed by a school board continues in service and holds that position
during good behavior and efficient and competent service for a renewable five-year term.
The terms and conditions of a teacher's employment contract, including salary and salary
increases, must be based either on the length of the school year or an extended school
calendar under section 120A.415.
new text end

new text begin (c) At the end of every five-year term, the school board either must continue or
terminate a teacher's employment based on:
new text end

new text begin (1) a portfolio of the teacher's five-year professional growth plan based on standards
of professional practice, student learning, and successful teacher evaluations, consistent
with section 122A.411, that are conducted at least twice per year by a trained school
administrator;
new text end

new text begin (2) the teacher's appraisal results and performance effectiveness rating under section
122A.411; and
new text end

new text begin (3) other locally selected criteria aligned to instructional practices in teaching and
learning.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2010, section 122A.40, subdivision 8, is amended to read:

Subd. 8.

new text begin Professional development and new text end peer coaching for continuing contract
teachers.

new text begin (a) A school board and the exclusive representative of the teachers in the district
must collaborate in establishing a professional development model for continuing contract
teachers, consistent with subdivision 6, that uses a district's professional development
resources and plans, including those under sections 122A.414, if applicable, 122A.60, and
122A.61, to improve teaching and learning.
new text end

new text begin (b) new text end A school board and an exclusive representative of the teachers in the district shall
develop a peer review process for continuing contract teachers through joint agreement.
The process may include having trained observers serve as peer coaches or having
teachers participate in professional learning communities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:

Subd. 9.

Grounds for termination.

new text begin (a) new text end A continuing contract may be terminated,
effective at the close of the school year, upon any of the following grounds:

deleted text begin (a) deleted text end new text begin (1) new text end inefficiency;

deleted text begin (b) deleted text end new text begin (2) new text end neglect of duty, or persistent violation of school laws, rules, regulations,
or directives;

deleted text begin (c) deleted text end new text begin (3) new text end conduct unbecoming a teacher which materially impairs the teacher's
educational effectiveness;

deleted text begin (d) deleted text end new text begin (4) new text end other good and sufficient grounds rendering the teacher unfit to perform the
teacher's duties deleted text begin . deleted text end new text begin ; or
new text end

new text begin (5) the teacher is ineffective under section 122A.411 and not recommended by the
district for continued employment under this section.
new text end

new text begin (b) new text end A contract must not be terminated deleted text begin upon one of the grounds specified in clause deleted text end
new text begin under paragraph new text end (a), deleted text begin (b), (c), or (d), deleted text end new text begin clause (5), new text end unless the teacher fails to correct the
deficiency after being given written notice of the specific items of complaint and
deleted text begin reasonable time within which deleted text end new text begin 180 days after receiving the notice new text end to remedy them.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2010, section 122A.40, subdivision 10, is amended to read:

Subd. 10.

Negotiated unrequested leave of absence.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:

Subd. 11.

Unrequested leave of absence.

new text begin (a) new text end The board may place on unrequested
leave of absence, without pay or fringe benefits, as many teachers as may be necessary
because of discontinuance of position, lack of pupils, financial limitations, or merger of
classes caused by consolidation of districts. The unrequested leave is effective at the close
of the school year. In placing teachers on unrequested leave, new text begin the superintendent may
exempt from the effects of paragraphs (b) to (f) those teachers who, in the superintendent's
judgment, are able to provide instruction that similarly licensed teachers cannot provide or
whose subject area license meets unmet district needs for student instruction. new text end The board is
governed by deleted text begin the following provisions: deleted text end new text begin paragraphs (b) to (k).
new text end

deleted text begin (a) The board may place probationary teachers on unrequested leave first in the
inverse order of their employment. A teacher who has acquired continuing contract rights
must not be placed on unrequested leave of absence while probationary teachers are
retained in positions for which the teacher who has acquired continuing contract rights is
licensed;
deleted text end

(b) Teachers deleted text begin who have acquired continuing contract rights deleted text end shall be placed on
unrequested leave of absence in fields in which they are licensed in the new text begin following order:
new text end

new text begin (1) teachers with a "needs improvement" or "ineffective" rating under section
122A.411 in the new text end inverse order in which they were employed by the school district deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) teachers with an "average" rating under section 122A.411 with four or more
years of teaching experience in the inverse order in which they were employed by the
school district;
new text end

new text begin (3) teachers with an "effective" rating under section 122A.411 with fewer than
four years of teaching experience in the inverse order in which they were employed by
the school district;
new text end

new text begin (4) teachers with a "highly effective" rating under section 122A.411 in the inverse
order in which they were employed by the school district;
new text end

new text begin (5) teachers with a "distinguished" rating under section 122A.411 in the inverse
order in which they were employed by the school district; and
new text end

new text begin (6) teachers with an "exemplary" rating under section 122A.411 in the inverse order
in which they were employed by the school district.
new text end

new text begin (c) new text end In the case of equal seniority new text begin within a clause of paragraph (b) new text end , the order in which
teachers who have acquired continuing contract rights shall be placed on unrequested
leave of absence in fields in which they are licensed is negotiable deleted text begin ; deleted text end new text begin .
new text end

deleted text begin (c) Notwithstanding the provisions of clause (b), a teacher is not entitled to exercise
any seniority when that exercise results in that teacher being retained by the district in a
field for which the teacher holds only a provisional license, as defined by the board of
teaching, unless that exercise of seniority results in the placement on unrequested leave of
absence of another teacher who also holds a provisional license in the same field. The
provisions of this clause do not apply to vocational education licenses;
deleted text end

(d) Notwithstanding deleted text begin clauses (a), deleted text end new text begin paragraphs new text end (b) and (c), if deleted text begin the placing of a
probationary teacher on unrequested leave before a teacher who has acquired continuing
rights, the placing of a teacher who has acquired continuing contract rights on unrequested
leave before another teacher who has acquired continuing contract rights but who has
greater seniority, or deleted text end the deleted text begin restriction deleted text end new text begin restrictions new text end imposed by the provisions of deleted text begin clause deleted text end new text begin
paragraph (b) or new text end (c) would place the district in violation of its affirmative action program,
the district may retain the deleted text begin probationary deleted text end teacher deleted text begin , the teacher with less seniority, or the
provisionally licensed teacher; deleted text end new text begin with a lower designated status or less seniority.
new text end

(e) Teachers placed on unrequested leave of absence must be reinstated to the
positions from which they have been given leaves of absence or, if not available, to
other available positions in the school district in fields in which they are licensed.
Reinstatement must be in the inverse order of placement on leave of absence. deleted text begin A teacher
must not be reinstated to a position in a field in which the teacher holds only a provisional
license, other than a vocational education license, while another teacher who holds a
nonprovisional license in the same field remains on unrequested leave. deleted text end The order of
reinstatement of teachers who have equal seniority and who are placed on unrequested
leave in the same school year is negotiable deleted text begin ; deleted text end new text begin .
new text end

(f) Appointment of a new teacher must not be made while there is available, on
unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
teacher fails to advise the school board within 30 days of the date of notification that a
position is available to that teacher who may return to employment and assume the duties
of the position to which appointed on a future date determined by the board deleted text begin ; deleted text end new text begin .
new text end

(g) A teacher placed on unrequested leave of absence may engage in teaching or any
other occupation during the period of this leave deleted text begin ; deleted text end new text begin .
new text end

(h) The unrequested leave of absence must not deleted text begin impair the continuing contract rights
of a teacher or deleted text end result in a loss of credit for previous years of service deleted text begin ; deleted text end new text begin .
new text end

(i) The unrequested leave of absence of a teacher who is placed on unrequested leave
of absence and who is not reinstated shall continue deleted text begin for a period of five years deleted text end new text begin until that
teacher's contract expires under subdivision 7b new text end , after which the right to reinstatement shall
terminate. The teacher's right to reinstatement shall also terminate if the teacher fails to
file with the board by April 1 of any year a written statement requesting reinstatement deleted text begin ; deleted text end new text begin .
new text end

(j) The same provisions applicable to terminations of probationary or continuing
contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of
absence deleted text begin ; deleted text end new text begin .
new text end

(k) Nothing in this subdivision shall be construed to impair the rights of teachers
placed on unrequested leave of absence to receive unemployment benefits if otherwise
eligible.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:

Subd. 2.

Probationary period; discharge or demotion.

(a) All teachers in
the public schools in cities of the first class during the first three years of consecutive
employment shall be deemed to be in a probationary period of employment deleted text begin during which
period any annual contract with any teacher may, or may not, be renewed as the school
board, after consulting with the peer review committee charged with evaluating the
probationary teachers under subdivision 3, shall see fit deleted text end . The school deleted text begin site management team
or the school deleted text end board deleted text begin if there is no school site management team, deleted text end shall new text begin issue a three-year
employment contract and new text end adopt a plan for a written evaluation of teachers during the
probationary period deleted text begin according to subdivision 3 deleted text end new text begin that is consistent with section 122A.411.
During the first 90 days only of a probationary teacher's first year of employment, the
board may terminate the teacher at will new text end . Evaluation deleted text begin by the peer review committee charged
with evaluating deleted text end new text begin of new text end probationary teachers deleted text begin under subdivision 3 deleted text end shall occur at least three
times each year for a teacher performing services on 120 or more school days, at least
two times each year for a teacher performing services on 60 to 119 school days, and
at least one time each year for a teacher performing services on fewer than 60 school
days. Days devoted to parent-teacher conferences, teachers' workshops, and other staff
development opportunities and days on which a teacher is absent from school shall not be
included in determining the number of school days on which a teacher performs services.
The school board may, during such probationary period, discharge or demote a teacher
for any of the causes as specified in this code. A written statement of the cause of such
discharge or demotion shall be given to the teacher by the school board at least 30 days
before such removal or demotion shall become effective, and the teacher so notified shall
have no right of appeal therefrom.

(b) 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).

(c) A probationary teacher must complete at least 60 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.

new text begin (d) A district must decide whether to issue a contract to a probationary classroom
teacher at the end of the teacher's probationary period based on:
new text end

new text begin (1) a portfolio of the teacher's professional growth plan based on standards of
effective professional practice, student learning goals, and successful teacher evaluations,
consistent with section 122A.411, that are conducted at least twice per year by a trained
school administrator;
new text end

new text begin (2) the teacher's appraisal results and performance effectiveness rating under section
122A.411; and
new text end

new text begin (3) other locally selected criteria aligned to instructional practices in teaching and
learning.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2010, section 122A.41, subdivision 3, is amended to read:

Subd. 3.

new text begin Professional development and new text end mentoring for probationary teachers.

new text begin (a) A school board and the exclusive representative of the teachers in the district must
collaborate in establishing a professional development model for probationary teachers,
consistent with subdivision 5, that uses a district's professional development resources and
plans, including those under sections 122A.414, if applicable, 122A.60, and 122A.61, to
improve teaching and learning.
new text end

new text begin (b) new text end A board and an exclusive representative of the teachers in the district must
develop a probationary teacher peer review process through joint agreement. The process
may include having trained observers serve as mentors or coaches or having teachers
participate in professional learning communities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2010, section 122A.41, subdivision 4, is amended to read:

Subd. 4.

deleted text begin Period of service after probationary period; discharge or demotion deleted text end new text begin
Teacher employment new text end .

(a) new text begin A school district must use a teacher appraisal framework
to make informed decisions about teacher development and performance. Teachers
must participate in ongoing professional development to improve teaching and learning
throughout a term of employment.
new text end

new text begin (b) new text end After deleted text begin the completion of such deleted text end new text begin completing the initial three-year new text end probationary
period deleted text begin , deleted text end without discharge, deleted text begin such teachers as are thereupon deleted text end new text begin a teacher who is new text end reemployed
shall continue in service and hold deleted text begin their respective deleted text end new text begin that new text end position during good behavior and
efficient and competent service new text begin for a renewable five-year term new text end and must not be discharged
or demoted except for cause after a hearing. The terms and conditions of a teacher's
employment contract, including salary and salary increases, must be based either on the
length of the school year or an extended school calendar under section 120A.415.

deleted text begin (b) deleted text end new text begin (c) new text end A probationary teacher is deemed to have been reemployed for the ensuing
school year, unless the school board in charge of such school gave such teacher notice in
writing before July 1 of the termination of such employment.

deleted text begin (c) deleted text end new text begin (d) new text end A teacher electing to have an employment contract based on the extended
school calendar under section 120A.415 must participate in staff development training
under subdivision 4a and shall receive an increased base salary.

new text begin (e) At the end of every five-year term, the school board must either continue or
terminate a teacher's employment based on:
new text end

new text begin (1) a portfolio of the teacher's five-year professional growth plan based on standards
of professional practice, student learning, and successful teacher evaluations, consistent
with section 122A.411, that are conducted at least twice per year by a trained school
administrator;
new text end

new text begin (2) the teacher's appraisal results and performance effectiveness rating under section
122A.411; and
new text end

new text begin (3) other locally selected criteria aligned to instructional practices in teaching and
learning.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2010, section 122A.41, subdivision 5, is amended to read:

Subd. 5.

new text begin Professional development and new text end peer coaching for continuing contract
teachers.

new text begin (a) A school board and the exclusive representative of the teachers in the district
must collaborate in establishing a professional development model for probationary
teachers, consistent with subdivision 3, that uses a district's professional development
resources and plans, including those under sections 122A.414, if applicable, 122A.60, and
122A.61, to improve teaching and learning.
new text end

new text begin (b) new text end A school board and an exclusive representative of the teachers in the district must
develop a peer review process for nonprobationary teachers through joint agreement. The
process may include having trained observers serve as peer coaches or having teachers
participate in professional learning communities.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2010, section 122A.41, subdivision 6, is amended to read:

Subd. 6.

Grounds for discharge or demotion.

(a) Except as otherwise provided
in paragraph (b), causes for the discharge or demotion of a teacher either during or after
the probationary period must be:

(1) immoral character, conduct unbecoming a teacher, or insubordination;

(2) failure without justifiable cause to teach without first securing the written release
of the school board having the care, management, or control of the school in which the
teacher is employed;

(3) inefficiency in teaching or in the management of a school;

(4) affliction with active tuberculosis or other communicable disease must be
considered as cause for removal or suspension while the teacher is suffering from such
disability; deleted text begin or
deleted text end

(5) discontinuance of position or lack of pupils deleted text begin . deleted text end new text begin ; or
new text end

new text begin (6) the teacher is ineffective under section 122A.411 and not recommended by the
district for employment under this section.
new text end

For purposes of this paragraph, new text begin the provision in clause (6) does not interfere with the
effect of clause (3) and new text end conduct unbecoming a teacher includes an unfair discriminatory
practice described in section 363A.13. new text begin A teacher must not be discharged under clause (6)
unless the teacher fails to correct the deficiency after being given written notice of the
specific items of complaint and 180 days within which to remedy them.
new text end

(b) A probationary or continuing-contract teacher must be discharged 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.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:

Subd. 14.

Services terminated by discontinuance or lack of pupils; preference
given.

deleted text begin (a) deleted text end A teacher whose services are terminated on account of discontinuance of
position or lack of pupils must receive first consideration for other positions in the district
for which that teacher is qualified. In the event it becomes necessary to discontinue one
or more positions, in making such discontinuance, teachers must be discontinued in any
department in the new text begin following order:
new text end

new text begin (1) teachers with a "needs improvement" or "ineffective" rating under section
122A.411 in the new text end inverse order in which they were employed deleted text begin , unless a board and the
exclusive representative of teachers in the district negotiate a plan providing otherwise. deleted text end new text begin ;
new text end

new text begin (2) teachers with an "average" rating under section 122A.411 with four or more
years of teaching experience in the inverse order in which they were employed by the
school district;
new text end

new text begin (3) teachers with an "effective" rating under section 122A.411 with fewer than
four years of teaching experience in the inverse order in which they were employed by
the school district;
new text end

new text begin (4) teachers with a "highly effective" rating under section 122A.411 in the inverse
order in which they were employed by the school district;
new text end

new text begin (5) teachers with a "distinguished" rating under section 122A.411 in the inverse
order in which they were employed by the school district; and
new text end

new text begin (6) teachers with an "exemplary" rating under section 122A.411 in the inverse order
in which they were employed by the school district.
new text end

new text begin The superintendent may exempt from the effects of this subdivision those teachers
who, in the superintendent's judgment, are able to provide instruction that similarly
licensed teachers cannot provide or whose subject area license meets unmet district needs
for student instruction.
new text end

deleted text begin (b) Notwithstanding the provisions of clause (a), a teacher is not entitled to exercise
any seniority when that exercise results in that teacher being retained by the district in
a field for which the teacher holds only a provisional license, as defined by the Board
of Teaching, unless that exercise of seniority results in the termination of services, on
account of discontinuance of position or lack of pupils, of another teacher who also
holds a provisional license in the same field. The provisions of this clause do not apply
to vocational education licenses.
deleted text end

deleted text begin (c) Notwithstanding the provisions of clause (a), a teacher must not be reinstated
to a position in a field in which the teacher holds only a provisional license, other than a
vocational education license, while another teacher who holds a nonprovisional license in
the same field is available for reinstatement.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

new text begin [122A.411] TEACHER EVALUATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Evaluation structure. new text end

new text begin A teacher evaluation structure is established
to provide information about teacher effectiveness for teachers under section 122A.06,
subdivision 2, school districts, and charter schools to use in developing and improving
teacher performance and student learning. The three-part structure contains:
new text end

new text begin (1) a teacher appraisal framework that identifies performance measures for
determining teacher effectiveness;
new text end

new text begin (2) a mechanism for translating the performance data into a five-part teacher
effectiveness rating scale; and
new text end

new text begin (3) a four-tier status designation that identifies teachers as standard, advanced,
distinguished, or exemplary based on a teacher's effectiveness rating over time.
new text end

new text begin Subd. 2. new text end

new text begin Teacher appraisal framework. new text end

new text begin (a) Each school district and charter
school must create and implement a teacher appraisal framework. The framework must
translate performance measures and scores under this subdivision into five performance
effectiveness rating scores where "5" is the highest rating and "1" is the lowest rating. The
department, in collaboration with the Board of Teaching, must make available to districts
and charter schools appraisal frameworks and other materials from evidence-based
sources to assist districts and charter schools in implementing an appraisal framework,
consistent with this section.
new text end

new text begin (b) If statewide assessment results are available under section 120B.35, these results
are the basis for 50 percent of a teacher's total appraisal.
new text end

new text begin (c) If statewide assessment results are unavailable, 40 percent of a teacher's total
appraisal must consist of results from districtwide assessments of state and local standards
and another ten percent of the teacher's total appraisal must consist of results from
teacher-developed assessments.
new text end

new text begin (d) If no districtwide assessment results are available, 50 percent of a teacher's total
appraisal must consist of teacher-developed and administrator-approved assessments of
state and local standards. A school administrator shall meet with teachers at least annually
under this paragraph to review, modify if needed, and approve local course and grade-level
expectations for student achievement and growth.
new text end

new text begin (e) A charter school board of directors or a school board, in consultation with
its teachers, must identify the performance measures used as a basis for the other 50
percent of a teacher's total appraisal under this subdivision. The appraisal must include
data from parent surveys and at least two annual evaluations performed by a trained
school administrator. Other performance measures may include student surveys, peer
observations and review, teacher performance portfolios, video classroom observations
with teacher reflection after viewing videos, measures that are part of an approved
educational improvement plan under section 122A.413, and other highly reliable
research-based measures.
new text end

new text begin Subd. 3. new text end

new text begin Teacher performance effectiveness ratings. new text end

new text begin (a) Beginning in the
2012-2013 school year and consistent with subdivision 2, a school district or charter
school annually must use the following scale to determine a teacher performance
effectiveness rating and corresponding status designation under subdivision 4 for each
teacher who teaches a subject for which statewide assessment results are available under
section 120B.35:
new text end

new text begin (1) a teacher is "highly effective" if the teacher's appraisal shows that the teacher's
students, on average, achieved 1-1/2 or more years of growth on statewide assessments
and the teacher received a "5" performance rating under the district or charter school
appraisal framework;
new text end

new text begin (2) a teacher is "effective" if the teacher's appraisal shows that the teacher's students,
on average, achieved at least one year of growth on statewide assessments and the teacher
received a "4" performance rating under the district or charter school appraisal framework;
new text end

new text begin (3) a teacher is "average" if the teacher's appraisal shows that the teacher's students,
on average, achieved at least 0.9 years of growth on statewide student assessments and the
teacher received a "3" performance rating under the district or charter school appraisal
framework;
new text end

new text begin (4) a teacher "needs improvement" if the teacher's appraisal shows that the teacher's
students, on average, achieved between 0.5 and 0.9 years of growth on statewide
assessments or the teacher received a "2" or lower performance rating under the district or
charter school appraisal framework; and
new text end

new text begin (5) a teacher is "ineffective" if the teacher's appraisal shows that the teacher's
students, on average, achieved less than one-half year of growth on statewide assessments
and the teacher received a "1" performance rating under the district or charter school
appraisal framework.
new text end

new text begin A teacher who does not meet both the growth and performance rating requirements
in clauses (1) to (4) receives the next lower effectiveness rating that immediately follows
the clause where the teacher met either the growth or the performance rating requirement.
new text end

new text begin (b) Beginning in the 2012-2013 school year and consistent with subdivision 2, a
school district or charter school annually must use the following teacher performance
effectiveness rating scale and corresponding status designation under subdivision 4 for
each teacher who teaches a subject for which no statewide assessment data exist:
new text end

new text begin (1) a teacher is "highly effective" if the teacher receives a "5" performance rating
under the district or charter school appraisal framework;
new text end

new text begin (2) a teacher is "effective" if the teacher receives a "4" performance rating under the
district or charter school appraisal framework;
new text end

new text begin (3) a teacher is "average" if the teacher receives a "3" performance rating under the
district or charter school appraisal framework;
new text end

new text begin (4) a teacher "needs improvement" if the teacher receives a "2" performance rating
under the district or charter school appraisal framework; and
new text end

new text begin (5) a teacher is "ineffective" if the teacher receives a "1" performance rating under
the district or charter school appraisal framework.
new text end

new text begin Subd. 4. new text end

new text begin Teacher status designations. new text end

new text begin (a) Beginning no later than the 2012-2013
school year, a school district or charter school shall establish a four-tier status designation
for identifying teacher effectiveness, consistent with this section, using measures of
teacher performance and student learning as they relate to meeting state and local
education standards.
new text end

new text begin (b) To receive a "standard" designation, a probationary teacher during the three-year
probationary period must receive at least one rating of "average," "effective," or "highly
effective" under the district or charter school appraisal framework and meet applicable
professional development requirements.
new text end

new text begin (c) A licensed teacher who has a "standard" designation must receive a rating
of "average," "effective," or "highly effective" in four years out of each five-year
employment period and meet applicable professional development requirements to receive
an "advanced" status designation.
new text end

new text begin (d) A teacher who receives a "highly effective" rating in three years out of a five-year
employment period and meets applicable professional development requirements receives
a "distinguished" status designation.
new text end

new text begin (e) A teacher who receives a "highly effective" rating in seven years during two
consecutive five-year employment periods and meets applicable professional development
requirements receives an "exemplary" status designation.
new text end

new text begin (f) A teacher who receives a "distinguished" or "exemplary" status designation
keeps that designation for the remainder of the five-year employment period in which the
teacher received the designation.
new text end

new text begin (g) A teacher who does not meet the requirements of a particular status designation
under paragraph (c), (d), or (e) receives the next lower status designation under this
subdivision. A teacher who does not meet the requirements of a standard designation
under paragraph (b) has no status designation.
new text end

new text begin Subd. 5. new text end

new text begin Data gathering and analysis. new text end

new text begin Beginning in the 2012-2013 school
year, the department, in consultation with the Board of Teaching, shall assist a school
district or charter school in collecting and aggregating student data needed to implement
subdivisions 2, 3, and 4. If the school district or charter school and the department agree
that an ongoing need exists for department assistance, the district or charter school and the
department shall enter into a data-sharing agreement. Any data on individual students or
teachers received, collected, or created that are used to generate summary data under this
section are nonpublic data under chapter 13.
new text end

new text begin Subd. 6. new text end

new text begin Reports. new text end

new text begin (a) Beginning in the 2012-2013 school year, each school district
and charter school annually shall report to the department by August 31 the following
information about the school year just completed:
new text end

new text begin (1) each teacher's performance effectiveness rating determined under subdivision 2,
paragraph (b), (c), or (d);
new text end

new text begin (2) each teacher's performance effectiveness rating determined under subdivision 2,
paragraph (e);
new text end

new text begin (3) each teacher's status designation under subdivision 4;
new text end

new text begin (4) each teacher's professional preparation program;
new text end

new text begin (5) its appraisal framework; and
new text end

new text begin (6) its graduation rate.
new text end

new text begin (b) Beginning in 2014, the department annually by February 15 shall submit a
report to the committees of the legislature with primary jurisdiction over kindergarten
through grade 12 education policy and finance that analyzes and evaluates summary data
generated under paragraph (a) to determine the effectiveness of teacher appraisal systems
in improving teaching and learning.
new text end

new text begin (c) Beginning in 2014, the department annually by June 30 shall submit summary
data on teacher effectiveness under paragraph (a) to the Board of Teaching and the
Minnesota teacher preparation program or institution that prepared the teachers covered in
that year's district and charter school reports to the department.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2010, section 122A.416, is amended to read:

122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE
FOR deleted text begin PERPICH CENTER FOR ARTS EDUCATION AND deleted text end MULTIDISTRICT
INTEGRATION COLLABORATIVES.

Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10,
multidistrict integration collaboratives deleted text begin and the Perpich Center for Arts Education deleted text end are
eligible to receive alternative teacher compensation revenue as if they were intermediate
school districts. To qualify for alternative teacher compensation revenue, a multidistrict
integration collaborative deleted text begin or the Perpich Center for Arts Education deleted text end must meet all of the
requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate
school districts, must report its enrollment as of October 1 of each year to the department,
and must annually report its expenditures for the alternative teacher professional pay
system consistent with the uniform financial accounting and reporting standards to the
department by November 30 of each year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 19.

new text begin [122A.418] TEACHER EFFECTIVENESS-BASED BONUSES.
new text end

new text begin (a) A teacher with a "distinguished" rating under section 122A.411 shall receive
an annual bonus equal to ten percent of the teacher's base salary as long as the teacher
maintains a "distinguished" rating.
new text end

new text begin (b) A teacher with an "exemplary" rating under section 122A.411 shall receive
an annual bonus equal to 20 percent of the teacher's base salary as long as the teacher
maintains an "exemplary" rating.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2019.
new text end

Sec. 20.

Minnesota Statutes 2010, section 122A.60, is amended to read:

122A.60 STAFF DEVELOPMENT PROGRAM.

Subdivision 1.

Staff development committee.

A school board must use the revenue
authorized in section 122A.61 for deleted text begin in-service deleted text end education deleted text begin for deleted text end programs under section
120B.22, subdivision 2, or for staff development new text begin and teacher training new text end plans under this
section. The board must establish an advisory staff development committee to develop the
plan, assist site professional development teams in developing a site plan consistent with
the goals of the plan, and evaluate staff development efforts at the site level. A majority
of the advisory committee and the site professional development team must be teachers
representing various grade levels, subject areas, and special education. The advisory
committee must also include nonteaching staff, parents, and administrators.

Subd. 1a.

Effective staff development activities.

(a) Staff development activities
must new text begin be aligned with district and school site staff development plans, based on student
achievement and growth data, and focused on student learning goals. Activities must new text end :

(1) focus on the school classroom and deleted text begin research-based deleted text end new text begin scientifically based research new text end
strategies that improve student learning;

(2) provide opportunities for teachers to practice and improve their instructional
skills over time new text begin and receive instructional-based observations using objective
standards-based assessments to assist in the professional growth process new text end ;

(3) provide new text begin regular new text end opportunities for teachers to use student data as part of their
daily work to increase student achievement;

(4) enhance teacher content knowledge and instructional skills;

(5) align with state and local academic standards;

(6) provide new text begin job-embedded or integrated professional development new text end opportunities
new text begin during the teacher contract day new text end to build professional relationships, foster collaboration
among principals and staff deleted text begin who provide instruction deleted text end new text begin to identify instructional strategies
to meet student learning goals, plan instruction, practice new teaching strategies, and
review the results of implementing those strategies new text end , and provide opportunities for
teacher-to-teacher new text begin coaching and new text end mentoring; and

(7) align with the plan of the district or site for new text begin those participating in new text end an alternative
deleted text begin teacher deleted text end professional pay system new text begin under section 122A.414 new text end .

Staff development activities new text begin also new text end may include curriculum development and
curriculum training programs, and activities that provide teachers and other members of
site-based teams training to enhance team performance. The school district also may
implement other staff development activities required by law and activities associated with
professional teacher compensation models.

(b) Release time provided for teachers to supervise students on field trips and school
activities, or independent tasks not associated with enhancing the teacher's knowledge
and instructional skills, such as preparing report cards, calculating grades, or organizing
classroom materials, may not be counted as staff development time that is financed with
staff development reserved revenue under section 122A.61.

Subd. 2.

Contents of plan.

The plan must new text begin be based on student achievement
and growth and new text end include new text begin student learning goals, new text end the staff development outcomes under
subdivision 3, the means to achieve the outcomes, and procedures for evaluating progress
at each school site toward meeting education outcomes, consistent with relicensure
requirements under section 122A.18, subdivision 4. The plan also must:

(1) support stable and productive professional communities achieved through
ongoing and schoolwide progress and growth in teaching practice;

(2) emphasize coaching, professional learning communities, classroom action
research, and other job-embedded models;

(3) maintain a strong subject matter focus premised on students' learning goals;

(4) ensure specialized preparation and learning about issues related to teaching
students with special needs and limited English proficiency; and

(5) reinforce national and state standards of effective teaching practice.

Subd. 3.

Staff development outcomes.

The advisory staff development committee
must adopt a staff development plan new text begin for increasing teacher effectiveness and student
learning and new text end for improving student achievement. The plan must be consistent with
education outcomes that the school board determines. The plan must include ongoing staff
development activities that contribute toward continuous improvement in achievement of
the following goals:

(1) improve student achievement of state and local deleted text begin education deleted text end new text begin academic new text end standards in
all areas of the curriculum by using best practices methods new text begin and benchmark assessments
aligned with academic standards new text end ;

(2) effectively meet the needs of a diverse student population, including at-risk
children, children with disabilities, and gifted children, within the regular classroom
and other settings;

(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
student population that is consistent with the state education diversity rule and the district's
education diversity plan;

(4) improve staff collaboration and develop mentoring and peer coaching programs
for teachers deleted text begin new to the school or district deleted text end new text begin in their first five years of teaching new text end ;

(5) effectively teach and model violence prevention policy and curriculum that
address early intervention alternatives, issues of harassment, and teach nonviolent
alternatives for conflict resolution; and

(6) provide teachers and other members of site-based management teams with
appropriate management and financial management skills.

Subd. 4.

Staff development report.

(a) By October deleted text begin 15 deleted text end new text begin 1 new text end of each year, the district
and site staff development committees shall write and submit a report of staff development
activities and expenditures for the previous year, in the form and manner determined by
the commissioner. The report, signed by the district superintendent and staff development
chair, must include assessment and evaluation data indicating progress toward district and
site staff development goals based on teaching and learning outcomes, including the
percentage of teachers and other staff involved in instruction who participate in effective
staff development activities under subdivision 3.

(b) The report must break down expenditures for:

(1) curriculum development and curriculum training programs; and

(2) staff development training models, workshops, and conferences, and the cost of
releasing teachers or providing substitute teachers for staff development purposes.

The report also must indicate whether the expenditures were incurred at the district
level or the school site level, and whether the school site expenditures were made possible
by grants to school sites that demonstrate exemplary use of allocated staff development
revenue. These expenditures must be reported using the uniform financial and accounting
and reporting standards.

(c) The commissioner shall report the staff development progress and expenditure
data to the house of representatives and senate committees having jurisdiction over
education by February 15 each year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2010, section 122A.61, subdivision 1, is amended to read:

Subdivision 1.

Staff development revenue.

A district is required to reserve
an amount equal to at least two percent of the basic revenue under section 126C.10,
subdivision 2, for deleted text begin in-service deleted text end education deleted text begin for deleted text end programs under section 120B.22, subdivision 2,
deleted text begin for deleted text end new text begin with the primary purpose of creating and implementing district and school site new text end staff
development plans deleted text begin , including deleted text end new text begin . Funds also may be used to support new text end plans for challenging
instructional activities and experiences under section 122A.60, deleted text begin and for curriculum
development and programs, other in-service education, teachers' workshops, teacher
conferences, the cost of substitute teachers staff development purposes, deleted text end preservice and
in-service education for special education professionals and paraprofessionals, and other
related costs for staff development efforts. A district may annually waive the requirement
to reserve their basic revenue under this section if a majority vote of the licensed teachers
in the district and a majority vote of the school board agree to a resolution to waive the
requirement. A district in statutory operating debt is exempt from reserving basic revenue
according to this section. Districts may expend an additional amount of unreserved
revenue for staff development based on their needs. deleted text begin With the exception of amounts
reserved for staff development from revenues allocated directly to school sites, the board
must initially allocate 50 percent of the reserved revenue to each school site in the district
on a per teacher basis, which must be retained by the school site until used. The board may
retain 25 percent to be used for district wide staff development efforts. The remaining
25 percent of the revenue must be used to make grants to school sites for best practices
methods. A grant may be used for any purpose authorized under section 120B.22,
subdivision 2, 122A.60, or for the costs of curriculum development and programs, other
in-service education, teachers' workshops, teacher conferences, substitute teachers for
staff development purposes, and other staff development efforts, and determined by
the site professional development team. The site professional development team must
demonstrate to the school board the extent to which staff at the site have met the outcomes
of the program. The board may withhold a portion of initial allocation of revenue if the
staff development outcomes are not being met. deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

new text begin [122A.73] SCHOOL ADMINISTRATOR DEVELOPMENT.
new text end

new text begin A school board and the school administrators in a district must collaboratively
establish a professional development model for school administrators that uses the
district's professional development resources and plans, including those under sections
122A.414, if applicable, 122A.60, and 122A.61. The model must be designed to improve
teaching and learning by supporting administrators in shaping the school's professional
environment and developing teacher quality, performance, and effectiveness. The model
must, at a minimum:
new text end

new text begin (1) support and improve administrators' instructional leadership and organizational,
management, and professional development; and strengthen their capacity in instruction
and supervision and in teacher evaluation and development under section 122A.411;
new text end

new text begin (2) provide professional development that emphasizes improved teaching and
learning, curriculum and instruction, student learning, and a collaborative professional
culture;
new text end

new text begin (3) make appropriate recommendations for administrators to participate in
development opportunities, including the Principals' Leadership Institute under section
122A.74 and other statewide development programs that support administrators'
leadership behaviors and practices, rigorous curriculum, school performance, and high
quality instruction; and
new text end

new text begin (4) use formative and summative assessments, on-the-job evaluations, surveys, and
longitudinal data on student academic growth as evaluation components; and provide
professional development opportunities targeted at identifying systemic strengths and
weaknesses and administrators' strengths and weaknesses in exercising leadership in
pursuit of school success.
new text end

new text begin The provisions of this section are intended to provide districts with sufficient
flexibility to accommodate district needs and goals, consistent with section 122A.411.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 23.

Minnesota Statutes 2010, section 123B.09, subdivision 8, is amended to read:

Subd. 8.

Duties.

The board must superintend and manage the schools of the
district; adopt rules for their organization, government, and instruction; keep registers;
and prescribe textbooks and courses of study. The board may enter into an agreement
with a postsecondary institution for secondary or postsecondary nonsectarian courses
to be taught at a secondary school, nonsectarian postsecondary institution, or another
location. new text begin Consistent with section 122A.40, subdivision 10, or 122A.41, subdivision 14, as
applicable, the board must not enter into an agreement that limits a district superintendent's
ability to assign and reassign a teacher or administrator to a school to best meet student
and school needs as determined by the superintendent.
new text end

Sec. 24.

Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall deleted text begin perform the following deleted text end :

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) new text begin before the start of the school year, and at other times as needed, assign highly
effective, distinguished, and exemplary teachers, as defined in section 122A.411, to
schools to best meet student and school needs as determined by the superintendent;
new text end

new text begin (4) new text end superintend school grading practices and examinations for promotions;

deleted text begin (4) deleted text end new text begin (5) new text end make reports required by the commissioner; and

deleted text begin (5) deleted text end new text begin (6) new text end perform other duties prescribed by the board.

Sec. 25.

new text begin [124D.101] PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Charter school established. new text end

new text begin The Perpich Center for Arts Education
may organize as a charter school consistent with section 124D.10.
new text end

new text begin Subd. 2. new text end

new text begin Sponsor. new text end

new text begin (a) Consistent with section 124D.10, subdivision 3, in order to
organize as a charter school, the Perpich Center for Arts Education must attempt to find
at least one qualified charter school authorizer that will authorize and serve as a charter
school authorizer for the Perpich Center for Arts Education charter school.
new text end

new text begin (b) If a qualified authorizer cannot be found, the Department of Education shall
authorize the Perpich Center for Arts Education charter school. If a qualified authorizer
is later found, the Department of Education may transfer authorization to the qualified
authorizer under section 124D.10.
new text end

new text begin Subd. 3. new text end

new text begin State aid. new text end

new text begin The Perpich Center for Arts Education charter school is eligible
for state charter school aid, including aid for start-up and operating costs, as provided
in section 124D.11.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 26. new text begin DISSOLUTION OF PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin (a) The Perpich Center for Arts Education is dissolved as a state agency.
new text end

new text begin (b) Official state records held at the Perpich Center for Arts Education shall be
transferred to the Department of Education.
new text end

new text begin (c) Oversight of the facility occupied by the Perpich Center for Arts Education
shall be transferred to the Department of Administration. If the Perpich Center for Arts
Education organizes as a charter school under Minnesota Statutes, section 124D.10, the
charter school shall have the right of first refusal to lease the building from the state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 27. new text begin APPRAISAL IMPLEMENTATION TIMELINE.
new text end

new text begin Consistent with Minnesota Statutes, section 122A.411, districts and charter schools
shall implement the teacher appraisal framework according to the following timeline:
new text end

new text begin (1) in the 2011-2012 school year, develop an appraisal framework and a system
to collect data;
new text end

new text begin (2) in the 2012-2013 school year, implement the teacher appraisal framework and
data collection system as a pilot program; and
new text end

new text begin (3) beginning in the 2013-2014 school year, fully implement the teacher appraisal
framework and data collection system.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 28. new text begin EFFECT OF TEACHER DIVERSITY ON STUDENT ACHIEVEMENT.
new text end

new text begin (a) The commissioner of education shall report on the impact that a culturally,
racially, and ethnically diverse teaching faculty has on the educational outcomes of
minority students, including academic performance, graduation rates, and participation in
postsecondary programs. The study must control for the level of teacher effectiveness.
new text end

new text begin (b) The commissioner of education also shall evaluate and report on school district
practices for recruiting a culturally, racially, and ethnically diverse teaching faculty.
new text end

new text begin (c) The commissioner must submit the reports under paragraphs (a) and (b) to the
education policy and finance committees of the legislature by February 1, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013. The study in paragraph
(a) may not begin until after the 2013-2014 school year.
new text end

Sec. 29. new text begin ADVISORY TASK FORCE ON IMPLEMENTING TEACHER
EVALUATION STRUCTURE.
new text end

new text begin Consistent with Minnesota Statutes, section 122A.411, and related sections, the
commissioner of education shall convene an 11-member advisory task force to make
recommendations related to implementing the state's teacher evaluation structure. Task
force members shall include: one representative each from the Minnesota Chamber of
Commerce, the Minnesota Business Partnership, the Minnesota Assessment Group,
the Minnesota Association of School Administrators, the Minnesota Elementary and
Secondary School Principals Association, the Minnesota School Boards Association, and
the Minnesota Association of Charter Schools appointed by the respective organization;
two representatives from Education Minnesota, one of whom must be a currently
licensed classroom teacher teaching in a first class city school district, appointed by
Education Minnesota; and two parents of students currently enrolled in Minnesota public
schools, one of whom must be a parent of color, appointed by the Minnesota Parent
Teacher Organization. The commissioner or the commissioner's designee shall serve as
a nonvoting member of the task force and shall provide technical assistance to the task
force upon request. The task force must review the statutory sections that compose this act
and recommend to the commissioner any changes needed to fully implement the teacher
evaluation structure, including statutory changes to accomplish the recommendations. The
commissioner must report the task force recommendations to the education policy and
finance committees of the legislature by February 15, 2012. The advisory task force
expires June 1, 2012.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
new text end

	new text begin $ new text end	new text begin 13,485,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 13,485,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin (b) $260,000 each year is for the Minnesota Children's Museum.
new text end

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

new text begin (d) $618,000 each year is for the Board of Teaching. Any balance in the first year
does not cancel but is available in the second year.
new text end

new text begin (e) $167,000 each year is for the Board of School Administrators. Any balance in
the first year does not cancel but is available in the second year.
new text end

new text begin (f) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.
new text end

new text begin (g) $38,000 each year is for an early hearing loss intervention coordinator under
Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
funds to employ a hearing loss coordinator under Minnesota Statutes, section 125A.63,
subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
employing a world languages coordinator.
new text end

new text begin (h) $50,000 each year is for the Duluth Children's Museum.
new text end

new text begin Subd. 3. new text end

new text begin Board of Teaching. new text end

new text begin From the education licensure portfolio account in the
special revenue fund to the Board of Teaching for licensure by portfolio:
new text end

	new text begin $ new text end	new text begin 30,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 30,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

Sec. 31. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 11,603,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 11,603,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

Sec. 32. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums in this section are appropriated from the general fund to the Perpich
Center for Arts Education for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 7,087,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 2,721,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

new text begin After the conclusion of the 2011-2012 school year, the fiscal year 2013 appropriation
is available for immediate transfer to the Department of Administration or the Department
of Management and Budget in order to administer severance payments and oversee
the closing of the Perpich Center for Arts Education as a state agency. The fiscal year
2013 appropriation includes $2,275,000 for severance payments, $336,000 for facility
maintenance, and $110,000 for the sale of the property, which is available until expended.
new text end

Sec. 33. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, sections 129C.10, subdivisions 1, 2, 3, 3a, 4, 6, 7, and 8;
129C.105; 129C.15; 129C.20; 129C.25; and 129C.26, new text end new text begin are repealed July 1, 2012.
new text end

ARTICLE 11

FORECAST ADJUSTMENT

new text begin A. GENERAL EDUCATION
new text end

Section 1.

Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by
Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:

Subd. 2.

General education aid.

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

	$	4,291,422,000	.....	2010
	$	deleted text begin 4,776,884,000 deleted text end new text begin 4,832,264,000 new text end	.....	2011

The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for
2010.

The 2011 appropriation includes $1,363,306,000 for 2010 and deleted text begin $3,413,578,000 deleted text end new text begin
$3,468,958,000 new text end for 2011.

Sec. 2.

Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:

Subd. 3.

Enrollment options transportation.

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

	$	48,000	.....	2010
	$	deleted text begin 52,000 deleted text end new text begin 29,000 new text end	.....	2011

Sec. 3.

Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:

Subd. 4.

Abatement revenue.

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

	$	1,000,000	.....	2010
	$	deleted text begin 1,132,000 deleted text end new text begin 1,127,000 new text end	.....	2011

The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.

The 2011 appropriation includes $317,000 for 2010 and deleted text begin $815,000 deleted text end new text begin $810,000 new text end for 2011.

Sec. 4.

Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:

Subd. 5.

Consolidation transition.

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

	$	684,000	.....	2010
	$	deleted text begin 576,000 deleted text end new text begin 593,000 new text end	.....	2011

The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.

The 2011 appropriation includes $252,000 for 2010 and deleted text begin $324,000 deleted text end new text begin $341,000 new text end for 2011.

Sec. 5.

Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:

Subd. 6.

Nonpublic pupil education aid.

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

	$	12,861,000	.....	2010
	$	deleted text begin 16,157,000 deleted text end new text begin 16,213,000 new text end	.....	2011

The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.

The 2011 appropriation includes $4,362,000 for 2010 and deleted text begin $11,795,000 deleted text end new text begin $11,851,000 new text end
for 2011.

Sec. 6.

Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:

Subd. 7.

Nonpublic pupil transportation.

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

	$	17,297,000	.....	2010
	$	deleted text begin 19,729,000 deleted text end new text begin 19,387,000 new text end	.....	2011

The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.

The 2011 appropriation includes $5,629,000 for 2010 and deleted text begin $14,100,000 deleted text end new text begin $13,758,000 new text end
for 2011.

new text begin B. EDUCATION EXCELLENCE
new text end

Sec. 7.

Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:

Subd. 2.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

	$	34,833,000	.....	2010
	$	deleted text begin 44,938,000 deleted text end new text begin 42,633,000 new text end	.....	2011

The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.

The 2011 appropriation includes $11,513,000 for 2010 and deleted text begin $33,425,000 deleted text end new text begin $31,120,000 new text end
for 2011.

Sec. 8.

Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:

Subd. 3.

Charter school startup aid.

For charter school startup cost aid under
Minnesota Statutes, section 124D.11:

	$	1,218,000	.....	2010
	$	deleted text begin 743,000 deleted text end new text begin 654,000 new text end	.....	2011

The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.

The 2011 appropriation includes $375,000 for 2010 and deleted text begin $368,000 deleted text end new text begin $279,000 new text end for 2011.

Sec. 9.

Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

	$	50,812,000	.....	2010
	$	deleted text begin 61,782,000 deleted text end new text begin 61,604,000 new text end	.....	2011

The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.

The 2011 appropriation includes $16,636,000 for 2010 and deleted text begin $45,146,000 deleted text end new text begin $44,968,000 new text end
for 2011.

Sec. 10.

Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

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

	$	14,468,000	.....	2010
	$	deleted text begin 17,582,000 deleted text end new text begin 13,393,000 new text end	.....	2011

Sec. 11.

Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:

Subd. 9.

Tribal contract schools.

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

	$	1,702,000	.....	2010
	$	deleted text begin 2,119,000 deleted text end new text begin 1,958,000 new text end	.....	2011

The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.

The 2011 appropriation includes $558,000 for 2010 and deleted text begin $1,561,000 deleted text end new text begin $1,400,000 new text end
for 2011.

new text begin C. SPECIAL EDUCATION
new text end

Sec. 12.

Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:

Subd. 3.

Aid for children with disabilities.

For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

	$	1,717,000	.....	2010
	$	deleted text begin 1,895,000 deleted text end new text begin 1,554,000 new text end	.....	2011

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

Sec. 13.

Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:

Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	224,000	.....	2010
	$	deleted text begin 282,000 deleted text end new text begin 324,000 new text end	.....	2011

The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.

The 2011 appropriation includes $73,000 for 2010 and deleted text begin $209,000 deleted text end new text begin $251,000 new text end for 2011.

new text begin D. FACILITIES AND TECHNOLOGY
new text end

Sec. 14.

Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:

Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

	$	1,918,000	.....	2010
	$	deleted text begin 2,146,000 deleted text end new text begin 2,191,000 new text end	.....	2011

The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.

The 2011 appropriation includes $613,000 for 2010 and deleted text begin $1,533,000 deleted text end new text begin $1,578,000 new text end
for 2011.

new text begin E. NUTRITION
new text end

Sec. 15.

Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:

Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

	$	12,688,000	.....	2010
	$	deleted text begin 13,069,000 deleted text end new text begin 12,378,000 new text end	.....	2011

Sec. 16.

Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:

Subd. 3.

School breakfast.

For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:

	$	4,978,000	.....	2010
	$	deleted text begin 5,147,000 deleted text end new text begin 4,646,000 new text end	.....	2011

Sec. 17.

Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:

Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

	$	1,104,000	.....	2010
	$	deleted text begin 1,126,000 deleted text end new text begin 1,063,000 new text end	.....	2011

new text begin F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND
SELF-SUFFICIENCY AND LIFELONG LEARNING
new text end

Sec. 18.

Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:

Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

	$	19,005,000	.....	2010
	$	deleted text begin 21,460,000 deleted text end new text begin 21,177,000 new text end	.....	2011

The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.

The 2011 appropriation includes $5,911,000 for 2010 and deleted text begin $15,549,000 deleted text end new text begin $15,266,000 new text end
for 2011.

Sec. 19.

Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	2,922,000	.....	2010
	$	deleted text begin 3,425,000 deleted text end new text begin 3,434,000 new text end	.....	2011

The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.

The 2011 appropriation includes $945,000 for 2010 and deleted text begin $2,480,000 deleted text end new text begin $2,489,000 new text end
for 2011.

Sec. 20.

Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:

Subd. 8.

Community education aid.

For community education aid under
Minnesota Statutes, section 124D.20:

	$	476,000	.....	2010
	$	deleted text begin 473,000 deleted text end new text begin 463,000 new text end	.....	2011

The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.

The 2011 appropriation included $148,000 for 2010 and deleted text begin $325,000 deleted text end new text begin $315,000 new text end for
2011.

Sec. 21.

Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:

Subd. 12.

Adult basic education aid.

For adult basic education aid under
Minnesota Statutes, section 124D.531:

	$	35,671,000	.....	2010
	$	deleted text begin 42,732,000 deleted text end new text begin 42,829,000 new text end	.....	2011

The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.

The 2011 appropriation includes $11,644,000 for 2010 and deleted text begin $31,088,000 deleted text end new text begin $31,185,000 new text end
for 2011.