HF 934A

Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 01/15/2013 08:25pm

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 934

1.2A bill for an act

1.3relating to education; providing for policy and funding for family, adult, and
1.4prekindergarten through grade 12 education including general education,
1.5academic excellence, special education, facilities and technology, nutrition and
1.6accounting, libraries, early childhood education, prevention, self-sufficiency and
1.7lifelong learning, state agencies, and forecast adjustments; requiring reports;
1.8requiring studies; appropriating money;amending Minnesota Statutes 2010,
1.9sections 13D.02, by adding a subdivision; 16A.152, subdivision 2; 93.22,
1.10subdivision 1; 93.2236; 120A.41; 120B.023, subdivision 2; 120B.07; 120B.30,
1.11subdivision 1, by adding a subdivision; 120B.35, subdivision 1; 120B.36,
1.12subdivision 1; 122A.40, subdivisions 5, 6, 7, 8, 9, 10, 11, by adding subdivisions;
1.13122A.41, subdivisions 2, 3, 4, 5, 6, 14, by adding a subdivision; 122A.414,
1.14subdivisions 1a, 2, 2a, 2b, 4; 122A.416; 122A.60; 122A.61, subdivision
1.151; 123A.55; 123B.02, subdivision 15; 123B.09, subdivision 8; 123B.143,
1.16subdivision 1; 123B.54; 123B.59, subdivision 5; 123B.75, subdivision 5;
1.17124D.10, subdivision 3; 124D.19, subdivision 3; 124D.531, subdivision 1;
1.18124D.86, subdivision 3; 125A.07; 125A.21, subdivisions 2, 3, 5, 7; 125A.515,
1.19by adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 1;
1.20125A.79, subdivision 1; 126C.10, subdivisions 1, 2, 2a, 3, 7, 8, 8a, 13a, 14, by
1.21adding a subdivision; 126C.126; 126C.20; 126C.40, subdivision 1; 126C.44;
1.22127A.33; 127A.441; 127A.45, subdivision 2; 179A.16, subdivision 1; 179A.18,
1.23subdivisions 1, 3; 298.28, subdivisions 2, 4; Laws 2009, chapter 79, article 5,
1.24section 60, as amended; Laws 2009, chapter 96, article 1, section 24, subdivisions
1.252, as amended, 3, 4, as amended, 5, as amended, 6, as amended, 7, as amended;
1.26article 2, section 67, subdivisions 2, as amended, 3, as amended, 4, as amended,
1.276, 9, as amended; article 3, section 21, subdivisions 3, 4, as amended; article 4,
1.28section 12, subdivision 6, as amended; article 5, section 13, subdivisions 2, 3, 4,
1.29as amended; article 6, section 11, subdivisions 3, as amended, 4, as amended,
1.308, as amended, 12, as amended; proposing coding for new law in Minnesota
1.31Statutes, chapters 120B; 122A; 124D; 179A; repealing Minnesota Statutes 2010,
1.32sections 122A.61; 123B.05; 123B.59, subdivisions 6, 7; 124D.86, subdivisions
1.331, 1a, 2, 4, 5, 6; 126C.10, subdivision 5; 127A.46; 129C.10, subdivisions 1, 2,
1.343, 3a, 4, 6, 7, 8; 129C.105; 129C.15; 129C.20; 129C.25; 129C.26; 179A.18,
1.35subdivision 2; Laws 2009, chapter 88, article 12, section 23.
1.36May 16, 2011
1.37The Honorable Kurt Zellers
1.38Speaker of the House of Representatives
1.39The Honorable Michelle L. Fischbach
1.40President of the Senate
2.1We, the undersigned conferees for H. F. No. 934 report that we have agreed upon the
2.2items in dispute and recommend as follows:
2.3That the Senate recede from its amendments and that H. F. No. 934 be further
2.4amended as follows:
2.5Delete everything after the enacting clause and insert:

2.6"ARTICLE 1

2.7GENERAL EDUCATION

2.8    Section 1. Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:
2.9    Subd. 5. Calculation of income. As of the end of each fiscal year, the state
2.10board shall calculate the investment income earned by the permanent school fund. The
2.11investment income earned by the fund shall equal the amount of interest on debt securities
2.12and, dividends on equity securities, and interest earned on certified monthly earnings prior
2.13to the transfer to the Department of Education. Gains and losses arising from the sale of
2.14securities shall be apportioned as follows:
2.15(a) If the sale of securities results in a net gain during a fiscal year, the gain shall
2.16be apportioned in equal installments over the next ten fiscal years to offset net losses in
2.17those years. If any portion of an installment is not needed to recover subsequent losses
2.18identified in paragraph (b) it shall be added to the principal of the fund.
2.19(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall
2.20be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these
2.21gains are insufficient, any remaining net loss shall be recovered from interest and dividend
2.22income in equal installments over the following ten fiscal years.
2.23EFFECTIVE DATE.This section is effective the day following final enactment.

2.24    Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:
2.25    Subd. 11. Assessment of performance. (a) Each year the performance of
2.26every child who is not enrolled in a public school must be assessed using a nationally
2.27norm-referenced standardized achievement examination. The superintendent of the
2.28district in which the child receives instruction and the person in charge of the child's
2.29instruction must agree about the specific examination to be used and the administration
2.30and location of the examination or a nationally recognized college entrance exam.
2.31(b) To the extent the examination in paragraph (a) does not provide assessment in
2.32all of the subject areas in subdivision 9, the parent must assess the child's performance
2.33in the applicable subject area. This requirement applies only to a parent who provides
2.34instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
3.1(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
3.2child's performance on the total battery score is at or below the 30th percentile or one
3.3grade level below the performance level for children of the same age, the parent must
3.4obtain additional evaluation of the child's abilities and performance for the purpose of
3.5determining whether the child has learning problems.
3.6(d) (b) A child receiving instruction from a nonpublic school, person, or institution
3.7that is accredited by an accrediting agency, recognized according to section 123B.445, or
3.8recognized by the commissioner, is exempt from the requirements of this subdivision.

3.9    Sec. 3. Minnesota Statutes 2010, section 120A.24, is amended to read:
3.10120A.24 REPORTING.
3.11    Subdivision 1. Reports to superintendent. (a) The person in charge of providing
3.12instruction to a child must submit the following information to the superintendent of the
3.13district in which the child resides the name, birth date, and address of the child; the annual
3.14tests intended to be used under section 120A.22, subdivision 11, if required; the name of
3.15each instructor; and evidence of compliance with one of the requirements specified in
3.16section 120A.22, subdivision 10:
3.17(1) by October 1 of each the first school year, the name, birth date, and address
3.18of each child receiving instruction the child receives instruction after reaching the age
3.19of seven;
3.20(2) the name of each instructor and evidence of compliance with one of the
3.21requirements specified in section 120A.22, subdivision 10;
3.22(3) an annual instructional calendar; and
3.23(4) for each child instructed by a parent who meets only the requirement of section
3.24120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the
3.25child in each subject area required in section 120A.22, subdivision 9.
3.26(2) within 15 days of when a parent withdraws a child from public school after
3.27age seven to homeschool;
3.28(3) within 15 days of moving out of a district; and
3.29(4) by October 1 after a new resident district is established.
3.30(b) The person in charge of providing instruction to a child between the ages of
3.31seven and 16 must submit, by October 1 of each school year, a letter of intent to continue
3.32to provide instruction under this section for all students under the person's supervision and
3.33any changes to the information required in paragraph (a) for each student.
3.34(c) The superintendent may collect the required information under this section
3.35through an electronic or Web-based format, but must not require electronic submission
4.1of information under this section from the person in charge of reporting under this
4.2subdivision.
4.3    Subd. 2. Availability of documentation. (a) The person in charge of providing
4.4instruction to a child must make available maintain documentation indicating that the
4.5subjects required in section 120A.22, subdivision 9, are being taught and proof that the
4.6tests under section 120A.22, subdivision 11, have been administered. This documentation
4.7must include class schedules, copies of materials used for instruction, and descriptions of
4.8methods used to assess student achievement.
4.9(b) The parent of a child who enrolls full time in public school after having been
4.10enrolled in a home school under section 120A.22, subdivision 6, must provide the
4.11enrolling public school or school district with the child's scores on any tests administered
4.12to the child under section 120A.22, subdivision 11, and other education-related documents
4.13the enrolling school or district requires to determine where the child is placed in school
4.14and what course requirements apply. This paragraph does not apply to a shared time
4.15student who does not seek a public school diploma.
4.16(c) The person in charge of providing instruction to a child must make the
4.17documentation in this subdivision available to the county attorney when a case is
4.18commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted under
4.19chapter 260A.
4.20    Subd. 3. Exemptions. A nonpublic school, person, or other institution that is
4.21accredited by an accrediting agency, recognized according to section 123B.445, or
4.22recognized by the commissioner, is exempt from the requirements in subdivisions 1 and
4.23subdivision 2, except for the requirement in subdivision 1, clause (1).
4.24    Subd. 4. Reports to the state. A superintendent must make an annual report to the
4.25commissioner of education by December 1 of the total number of nonpublic children
4.26reported as residing in the district. The report must include the following information:
4.27(1) the number of children residing in the district attending nonpublic schools or
4.28receiving instruction from persons or institutions other than a public school;
4.29(2) the number of children in clause (1) who are in compliance with section 120A.22
4.30and this section; and
4.31(3) the number of children in clause (1) who the superintendent has determined are
4.32not in compliance with section 120A.22 and this section.
4.33    Subd. 5. Obligations. Nothing in this section alleviates the obligations under
4.34section 120A.22.

4.35    Sec. 4. Minnesota Statutes 2010, section 120A.41, is amended to read:
5.1120A.41 LENGTH OF SCHOOL YEAR; DAYS HOURS OF INSTRUCTION.
5.2A school board's annual school calendar must include at least the number of days of
5.3student instruction the board formally adopted as its school calendar at the beginning of
5.4the 1996-1997 school year 425 hours of instruction for a kindergarten student without a
5.5disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of
5.6instruction for a student in grades 7 though 12, not including summer school.

5.7    Sec. 5. Minnesota Statutes 2010, section 120B.07, is amended to read:
5.8120B.07 EARLY GRADUATION.
5.9(a) Notwithstanding any law to the contrary, any secondary school student who has
5.10completed all required courses or standards may, with the approval of the student, the
5.11student's parent or guardian, and local school officials, graduate before the completion
5.12of the school year.
5.13(b) General education revenue attributable to the student must be paid as though
5.14the student was in attendance for the entire year unless the student participates in the
5.15early graduation achievement scholarship program under section 120B.08 or the early
5.16graduation military service award program under section 120B.081.
5.17EFFECTIVE DATE.This section is effective July 1, 2011.

5.18    Sec. 6. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
5.19PROGRAM.
5.20    Subdivision 1. Participation. A student who qualifies for early graduation under
5.21section 120B.07 is eligible to participate in the early graduation achievement scholarship
5.22program.
5.23    Subd. 2. Scholarship amounts. A student who participates in the early graduation
5.24achievement scholarship program is eligible for a scholarship of $2,500 if the student
5.25qualifies for graduation one semester or two trimesters early, $5,000 if the student qualifies
5.26for graduation two semesters or three or four trimesters early, or $7,500 if the student
5.27qualifies for graduation three or more semesters or five or more trimesters early.
5.28    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
5.29used at any accredited institution of higher education.
5.30    Subd. 4. Application. A qualifying student may apply to the commissioner of
5.31education for an early graduation achievement scholarship. The application must be in
5.32the form and manner specified by the commissioner. Upon verification of the qualifying
6.1student's course completion necessary for graduation, the department must issue the
6.2student a certificate showing the student's scholarship amount.
6.3    Subd. 5. Enrollment verification. A student who qualifies under this section
6.4and enrolls in an accredited higher education institution must submit a form to the
6.5commissioner verifying the student's enrollment in the higher education institution and the
6.6tuition charges for that semester. Within 15 days of receipt of a student's enrollment and
6.7tuition verification form, the commissioner must issue a scholarship check to the student in
6.8the lesser of the tuition amount for that semester or the maximum amount of the student's
6.9early graduation achievement scholarship. A student may continue to submit enrollment
6.10verification forms to the commissioner until the student has used the full amount of the
6.11student's graduation achievement scholarship.
6.12    Subd. 6. General education money transferred. The commissioner must transfer
6.13the amounts necessary to fund the early graduation achievement scholarships from the
6.14general education aid appropriation for that year.
6.15EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

6.16    Sec. 7. [120B.081] EARLY GRADUATION MILITARY SERVICE AWARD
6.17PROGRAM.
6.18    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means
6.19a secondary student enrolled in any Minnesota public school who qualifies for early
6.20graduation under section 120B.07 and who, before the end of the calendar year of the
6.21student's graduation, enters into active service in either the active or reserve component
6.22of the United States armed forces and deploys for 60 days or longer to a military base or
6.23installation outside Minnesota for the purpose of attending basic military training or
6.24military school and, if required by the military, performing other military duty. The active
6.25service may be in accordance with United States Code, title 10 or title 32.
6.26    Subd. 2. Application. An eligible person may apply to the commissioner of
6.27education for an early graduation military service bonus. The application must be in the
6.28form and manner specified by the commissioner.
6.29    Subd. 3. Verification and award. Upon verification of the qualifying student's
6.30course completion necessary for graduation and eligibility for the military service
6.31bonus, the commissioner must issue payment to that person. Payment amounts must be
6.32determined according to section 120B.08, subdivision 2.
6.33EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

7.1    Sec. 8. Minnesota Statutes 2010, section 121A.15, subdivision 8, is amended to read:
7.2    Subd. 8. Report. The administrator or other person having general control and
7.3supervision of the elementary or secondary school shall file a report with the commissioner
7.4on all persons enrolled in the school. The superintendent of each district shall file a report
7.5with the commissioner for all persons within the district receiving instruction in a home
7.6school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
7.7instruction in a home school shall submit the statements as required by subdivisions 1, 2,
7.83, and 4, and 12 to the superintendent of the district in which the person resides by October
7.91 of each school year the first year of their homeschooling in Minnesota and the grade 7
7.10year. The school report must be prepared on forms developed jointly by the commissioner
7.11of health and the commissioner of education and be distributed to the local districts by the
7.12commissioner of health. The school report must state the number of persons attending the
7.13school, the number of persons who have not been immunized according to subdivision 1 or
7.142, and the number of persons who received an exemption under subdivision 3, clause (c)
7.15or (d). The school report must be filed with the commissioner of education within 60 days
7.16of the commencement of each new school term. Upon request, a district must be given a
7.1760-day extension for filing the school report. The commissioner of education shall forward
7.18the report, or a copy thereof, to the commissioner of health who shall provide summary
7.19reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
7.20or other person having general control and supervision of the child care facility shall file a
7.21report with the commissioner of human services on all persons enrolled in the child care
7.22facility. The child care facility report must be prepared on forms developed jointly by
7.23the commissioner of health and the commissioner of human services and be distributed
7.24to child care facilities by the commissioner of health. The child care facility report
7.25must state the number of persons enrolled in the facility, the number of persons with no
7.26immunizations, the number of persons who received an exemption under subdivision 3,
7.27clause (c) or (d), and the number of persons with partial or full immunization histories.
7.28The child care facility report must be filed with the commissioner of human services by
7.29November 1 of each year. The commissioner of human services shall forward the report,
7.30or a copy thereof, to the commissioner of health who shall provide summary reports to
7.31boards of health as defined in section 145A.02, subdivision 2. The report required by this
7.32subdivision is not required of a family child care or group family child care facility, for
7.33prekindergarten children enrolled in any elementary or secondary school provided services
7.34according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
7.3575 percent of children in the facility participate on a onetime only or occasional basis to a
7.36maximum of 45 hours per child, per month.

8.1    Sec. 9. Minnesota Statutes 2010, section 123A.55, is amended to read:
8.2123A.55 CLASSES, NUMBER.
8.3Districts shall be classified as common, independent, or special, or charter districts,.
8.4Each of which common, independent, and special district is a public corporation. Each
8.5district shall be known by its classification and assigned a number by the commissioner so
8.6that its title will be .......... School District No. ......
8.7EFFECTIVE DATE.This section is effective July 1, 2011.

8.8    Sec. 10. Minnesota Statutes 2010, section 124D.59, subdivision 2, is amended to read:
8.9    Subd. 2. Pupil of limited English proficiency. (a) "Pupil of limited English
8.10proficiency" means a pupil in kindergarten through grade 12 who meets the following
8.11requirements:
8.12(1) the pupil, as declared by a parent or guardian first learned a language other than
8.13English, comes from a home where the language usually spoken is other than English, or
8.14usually speaks a language other than English; and
8.15(2) the pupil is determined by developmentally appropriate measures, which might
8.16include observations, teacher judgment, parent recommendations, or developmentally
8.17appropriate assessment instruments, to lack the necessary English skills to participate
8.18fully in classes taught in English.
8.19(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
8.20in a Minnesota public school on the dates during the previous school year when a
8.21commissioner provided assessment that measures the pupil's emerging academic English
8.22was administered, shall not be counted as a pupil of limited English proficiency in
8.23calculating limited English proficiency pupil units under section 126C.05, subdivision
8.2417 , and shall not generate state limited English proficiency aid under section 124D.65,
8.25subdivision 5 , unless the pupil scored below the state cutoff score or is otherwise counted
8.26as a nonproficient participant on an assessment measuring emerging academic English
8.27provided by the commissioner during the previous school year.
8.28(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
8.29shall not be counted as a pupil of limited English proficiency in calculating limited English
8.30proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
8.31limited English proficiency aid under section 124D.65, subdivision 5, if:
8.32(1) the pupil is not enrolled during the current fiscal year in an educational program
8.33for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64;
8.34or
9.1(2) the pupil has generated five or more years of average daily membership in
9.2Minnesota public schools since July 1, 1996.

9.3    Sec. 11. Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:
9.4    Subd. 2. Basic revenue. The basic revenue for each district equals the formula
9.5allowance times the adjusted marginal cost pupil units for the school year. The formula
9.6allowance for fiscal year 2007 is $4,974 2011 is $5,124. The formula allowance for fiscal
9.7year 2008 is $5,074 and 2012 is $5,144. The formula allowance for fiscal year 2009
9.82013 and subsequent years is $5,124 $5,165.
9.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
9.10and later.

9.11    Sec. 12. Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:
9.12    Subd. 3. Compensatory education revenue. (a) The compensatory education
9.13revenue for each building in the district equals the formula allowance minus $415 $4,709
9.14times the compensation revenue pupil units computed according to section 126C.05,
9.15subdivision 3 . Revenue shall be paid to the district and must be allocated according to
9.16section 126C.15, subdivision 2.
9.17(b) When the district contracting with an alternative program under section 124D.69
9.18changes prior to the start of a school year, the compensatory revenue generated by pupils
9.19attending the program shall be paid to the district contracting with the alternative program
9.20for the current school year, and shall not be paid to the district contracting with the
9.21alternative program for the prior school year.
9.22(c) When the fiscal agent district for an area learning center changes prior to the start
9.23of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
9.24current school year, and shall not be paid to the fiscal agent district for the prior school year.

9.25    Sec. 13. Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:
9.26    Subd. 7. Secondary sparsity revenue. (a) A district's secondary sparsity revenue
9.27for a school year equals the sum of the results of the following calculation for each
9.28qualifying high school in the district:
9.29(1) the formula allowance for the school year $5,124, multiplied by
9.30(2) the secondary average daily membership of pupils served in the high school,
9.31multiplied by
9.32(3) the quotient obtained by dividing 400 minus the secondary average daily
9.33membership by 400 plus the secondary daily membership, multiplied by
10.1(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
10.223 by ten.
10.3(b) A newly formed district that is the result of districts combining under the
10.4cooperation and combination program or consolidating under section 123A.48 must
10.5receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
10.6under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
10.7sparsity revenue the former districts had in the year prior to consolidation, increased for
10.8any subsequent changes in the secondary sparsity formula.
10.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
10.10and later.

10.11    Sec. 14. Minnesota Statutes 2010, section 126C.10, subdivision 8, is amended to read:
10.12    Subd. 8. Elementary sparsity revenue. A district's elementary sparsity revenue
10.13equals the sum of the following amounts for each qualifying elementary school in the
10.14district:
10.15(1) the formula allowance for the year $5,124, multiplied by
10.16(2) the elementary average daily membership of pupils served in the school,
10.17multiplied by
10.18(3) the quotient obtained by dividing 140 minus the elementary average daily
10.19membership by 140 plus the average daily membership.
10.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
10.21and later.

10.22    Sec. 15. Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:
10.23    Subd. 8a. Sparsity revenue for school districts that close facilities. A school
10.24district that closes a school facility or whose sparsity revenue is reduced by a school
10.25closure in another district is eligible for elementary and secondary sparsity revenue equal
10.26to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount
10.27of sparsity revenue for the previous fiscal year if the school board of the district has
10.28adopted a written resolution stating that the district intends to close the school facility, but
10.29cannot proceed with the closure without the adjustment to sparsity revenue authorized by
10.30this subdivision. The written resolution must be filed with the commissioner of education
10.31at least 60 days prior to the start of the fiscal year for which aid under this subdivision is
10.32first requested. A school district whose sparsity revenue is affected by a closure in another
10.33district is not required to adopt a written resolution under this section.
11.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
11.2and later.

11.3    Sec. 16. Minnesota Statutes 2010, section 126C.10, subdivision 14, is amended to read:
11.4    Subd. 14. Uses of total operating capital revenue. Total operating capital revenue
11.5may be used only for the following purposes:
11.6(1) to acquire land for school purposes;
11.7(2) to acquire or construct buildings for school purposes;
11.8(3) to rent or lease buildings, including the costs of building repair or improvement
11.9that are part of a lease agreement;
11.10(4) to improve and repair school sites and buildings, and equip or reequip school
11.11buildings with permanent attached fixtures, including library media centers;
11.12(5) for a surplus school building that is used substantially for a public nonschool
11.13purpose;
11.14(6) to eliminate barriers or increase access to school buildings by individuals with a
11.15disability;
11.16(7) to bring school buildings into compliance with the State Fire Code adopted
11.17according to chapter 299F;
11.18(8) to remove asbestos from school buildings, encapsulate asbestos, or make
11.19asbestos-related repairs;
11.20(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
11.21(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
11.22or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
11.23in section 296A.01;
11.24(11) for energy audits for school buildings and to modify buildings if the audit
11.25indicates the cost of the modification can be recovered within ten years;
11.26(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
11.27(13) to pay special assessments levied against school property but not to pay
11.28assessments for service charges;
11.29(14) to pay principal and interest on state loans for energy conservation according to
11.30section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
11.31Fund Act according to sections 298.292 to 298.298;
11.32(15) to purchase or lease interactive telecommunications equipment;
11.33(16) by board resolution, to transfer money into the debt redemption fund to: (i)
11.34pay the amounts needed to meet, when due, principal and interest payments on certain
12.1obligations issued according to chapter 475; or (ii) pay principal and interest on debt
12.2service loans or capital loans according to section 126C.70;
12.3(17) to pay operating capital-related assessments of any entity formed under a
12.4cooperative agreement between two or more districts;
12.5(18) to purchase or lease computers and related materials, copying machines,
12.6telecommunications equipment, and other noninstructional equipment;
12.7(19) to purchase or lease assistive technology or equipment for instructional
12.8programs;
12.9(20) to purchase textbooks;
12.10(21) to purchase new and replacement library media resources or technology;
12.11(22) to lease or purchase vehicles;
12.12(23) to purchase or lease telecommunications equipment, computers, and related
12.13equipment for integrated information management systems for:
12.14(i) managing and reporting learner outcome information for all students under a
12.15results-oriented graduation rule;
12.16(ii) managing student assessment, services, and achievement information required
12.17for students with individual education plans; and
12.18(iii) other classroom information management needs; and
12.19(24) to pay personnel costs directly related to the acquisition, operation, and
12.20maintenance of telecommunications systems, computers, related equipment, and network
12.21and applications software; and
12.22(25) to pay the costs directly associated with closing a school facility, including
12.23moving and storage costs.
12.24EFFECTIVE DATE.This section is effective the day following final enactment.

12.25    Sec. 17. Minnesota Statutes 2010, section 126C.10, subdivision 18, is amended to read:
12.26    Subd. 18. Transportation sparsity revenue allowance. (a) A district's
12.27transportation sparsity allowance equals the greater of zero or the result of the following
12.28computation:
12.29(i) (1) multiply the formula allowance according to subdivision 2, $5,124 by .1469.;
12.30(ii) (2) multiply the result in clause (i) (1) by the district's sparsity index raised to
12.31the 26/100 power.;
12.32(iii) (3) multiply the result in clause (ii) (2) by the district's density index raised to
12.33the 13/100 power.;
12.34(iv) (4) multiply the formula allowance according to subdivision 2, $5,124 by
12.35.0485.; and
13.1(v) (5) subtract the result in clause (iv) (4) from the result in clause (iii) (3).
13.2(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
13.3times the adjusted marginal cost pupil units.
13.4EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

13.5    Sec. 18. Minnesota Statutes 2010, section 126C.126, is amended to read:
13.6126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
13.7ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
13.8    (a) In order to provide additional revenue for an optional all-day kindergarten
13.9program, a district may reallocate general education revenue attributable to 12th grade
13.10students who have graduated early under section 120B.07 and who do not participate in
13.11the early graduation achievement scholarship program under section 120B.08 or the early
13.12graduation military service award program under section 120B.081.
13.13    (b) A school district may spend general education revenue on extended time
13.14kindergarten and prekindergarten programs.
13.15EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

13.16    Sec. 19. Minnesota Statutes 2010, section 126C.20, is amended to read:
13.17126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
13.18There is annually appropriated from the general fund to the department the
13.19amount necessary for general education aid under section 126C.13, the early graduation
13.20achievement scholarship program under section 120B.08, and the early graduation
13.21military service award program under section 120B.081. This amount must be reduced
13.22by the amount of any money specifically appropriated for the same purpose in any year
13.23from any state fund.
13.24EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

13.25    Sec. 20. Minnesota Statutes 2010, section 126C.44, is amended to read:
13.26126C.44 SAFE SCHOOLS LEVY.
13.27    (a) Each district may make a levy on all taxable property located within the district
13.28for the purposes specified in this section. The maximum amount which may be levied
13.29for all costs under this section shall be equal to $30 multiplied by the district's adjusted
13.30marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
13.31used for directly funding the following purposes or for reimbursing the cities and counties
14.1who contract with the district for the following purposes: (1) to pay the costs incurred for
14.2the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
14.3services in the district's schools; (2) to pay the costs for a drug abuse prevention program
14.4as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
14.5(3) to pay the costs for a gang resistance education training curriculum in the district's
14.6schools; (4) to pay the costs for security in the district's schools and on school property; (5)
14.7to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
14.8opt-in suicide prevention tools, and violence prevention measures taken by the school
14.9district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
14.10school social workers, licensed school psychologists, and licensed alcohol and chemical
14.11dependency counselors to help provide early responses to problems. For expenditures
14.12under clause (1), the district must initially attempt to contract for services to be provided
14.13by peace officers or sheriffs with the police department of each city or the sheriff's
14.14department of the county within the district containing the school receiving the services. If
14.15a local police department or a county sheriff's department does not wish to provide the
14.16necessary services, the district may contract for these services with any other police or
14.17sheriff's department located entirely or partially within the school district's boundaries.
14.18    (b) A school district that is a member of an intermediate school district may
14.19include in its authority under this section the costs associated with safe schools activities
14.20authorized under paragraph (a) for intermediate school district programs. This authority
14.21must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
14.22This authority is in addition to any other authority authorized under this section. Revenue
14.23raised under this paragraph must be transferred to the intermediate school district.
14.24    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
14.25unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
14.26clause (6). The district must annually certify either that: (1) its total spending on services
14.27provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
14.28its expenditures for these purposes, excluding amounts spent under this section, in the
14.29previous year plus the amount spent under this section; or (2) that the district's full-time
14.30equivalent number of employees listed in paragraph (a), clause (6), is not less than the
14.31number for the previous year.
14.32EFFECTIVE DATE.This section is effective July 1, 2011.

14.33    Sec. 21. Minnesota Statutes 2010, section 127A.33, is amended to read:
14.34127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.
15.1The commissioner shall apportion the school endowment fund semiannually on the
15.2first Monday in March and September in each year, to districts whose schools have been
15.3in session at least nine months. The apportionment shall be in proportion to the number
15.4of pupils in each district's adjusted average daily membership during the preceding year.
15.5The apportionment shall not be paid to a district for pupils for whom tuition is received
15.6by the district.
15.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
15.8and later.

15.9    Sec. 22. Minnesota Statutes 2010, section 127A.45, subdivision 6a, is amended to read:
15.10    Subd. 6a. Cash flow adjustment. The board of directors of any charter school
15.11serving fewer than 150 students where the percent of students eligible for special
15.12education services equals 100 at least 90 percent of the charter school's total enrollment
15.13may request that the commissioner of education accelerate the school's cash flow under
15.14this section. The commissioner must approve a properly submitted request within 30 days
15.15of its receipt. The commissioner must accelerate the school's cash flow aid payments
15.16for all state aid regular special education aid payments according to the schedule in the
15.17school's request and modify the payments to the school under subdivision 3 accordingly.
15.18 A school must not receive current payments of regular special education aid exceeding 90
15.19percent of its estimated aid entitlement for the fiscal year. The commissioner must delay
15.20the special education aid payments to all other school districts and charter schools in
15.21proportion to each district or charter school's total share of regular special education aid
15.22such that the overall aid payment savings from the aid payment shift remains unchanged
15.23for any fiscal year.
15.24EFFECTIVE DATE.This section is effective the day following final enactment.

15.25    Sec. 23. Minnesota Statutes 2010, section 171.05, subdivision 2, is amended to read:
15.26    Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision
15.27in subdivision 1 to the contrary, the department may issue an instruction permit to an
15.28applicant who is 15, 16, or 17 years of age and who:
15.29(1) has completed a course of driver education in another state, has a previously
15.30issued valid license from another state, or is enrolled in either:
15.31(i) a public, private, or commercial driver education program that is approved by
15.32the commissioner of public safety and that includes classroom and behind-the-wheel
15.33training; or
16.1(ii) an approved behind-the-wheel driver education program when the student is
16.2receiving full-time instruction in a home school within the meaning of sections 120A.22
16.3and 120A.24, the student is working toward a homeschool diploma, the student's status
16.4as a homeschool student has been certified by the superintendent of the school district in
16.5which the student resides, and the student is taking home-classroom driver training with
16.6classroom materials approved by the commissioner of public safety, and the student's
16.7parent has certified the student's homeschool and home-classroom driver training status on
16.8the form approved by the commissioner;
16.9(2) has completed the classroom phase of instruction in the driver education program;
16.10(3) has passed a test of the applicant's eyesight;
16.11(4) has passed a department-administered test of the applicant's knowledge of traffic
16.12laws;
16.13(5) has completed the required application, which must be approved by (i) either
16.14parent when both reside in the same household as the minor applicant or, if otherwise,
16.15then (ii) the parent or spouse of the parent having custody or, in the event there is no
16.16court order for custody, then (iii) the parent or spouse of the parent with whom the minor
16.17is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the
16.18minor, (v) the foster parent or the director of the transitional living program in which the
16.19child resides or, in the event a person under the age of 18 has no living father, mother,
16.20or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's
16.21adult spouse, adult close family member, or adult employer; provided, that the approval
16.22required by this clause contains a verification of the age of the applicant and the identity of
16.23the parent, guardian, adult spouse, adult close family member, or adult employer; and
16.24(6) has paid the fee required in section 171.06, subdivision 2.
16.25(b) For the purposes of determining compliance with the certification of paragraph
16.26(a), clause (1), item (ii), the commissioner may request verification of a student's
16.27homeschool status from the superintendent of the school district in which the student
16.28resides and the superintendent shall provide that verification.
16.29(c) The instruction permit is valid for two years from the date of application and
16.30may be renewed upon payment of a fee equal to the fee for issuance of an instruction
16.31permit under section 171.06, subdivision 2.

16.32    Sec. 24. Minnesota Statutes 2010, section 171.17, subdivision 1, is amended to read:
16.33    Subdivision 1. Offenses. (a) The department shall immediately revoke the license
16.34of a driver upon receiving a record of the driver's conviction of:
17.1(1) manslaughter resulting from the operation of a motor vehicle or criminal
17.2vehicular homicide or injury under section 609.21;
17.3(2) a violation of section 169A.20 or 609.487;
17.4(3) a felony in the commission of which a motor vehicle was used;
17.5(4) failure to stop and disclose identity and render aid, as required under section
17.6169.09 , in the event of a motor vehicle accident, resulting in the death or personal injury
17.7of another;
17.8(5) perjury or the making of a false affidavit or statement to the department under
17.9any law relating to the application, ownership, or operation of a motor vehicle, including
17.10on the certification required under section 171.05, subdivision 2, paragraph (a), clause (1),
17.11item (ii), to issue an instruction permit to a homeschool student;
17.12(6) except as this section otherwise provides, three charges of violating within a
17.13period of 12 months any of the provisions of chapter 169 or of the rules or municipal
17.14ordinances enacted in conformance with chapter 169, for which the accused may be
17.15punished upon conviction by imprisonment;
17.16(7) two or more violations, within five years, of the misdemeanor offense described
17.17in section 169.444, subdivision 2, paragraph (a);
17.18(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
17.19paragraph (b);
17.20(9) an offense in another state that, if committed in this state, would be grounds for
17.21revoking the driver's license; or
17.22(10) a violation of an applicable speed limit by a person driving in excess of 100
17.23miles per hour. The person's license must be revoked for six months for a violation of
17.24this clause, or for a longer minimum period of time applicable under section 169A.53,
17.25169A.54 , or 171.174.
17.26(b) The department shall immediately revoke the school bus endorsement of a driver
17.27upon receiving a record of the driver's conviction of the misdemeanor offense described in
17.28section 169.443, subdivision 7.

17.29    Sec. 25. Minnesota Statutes 2010, section 171.22, subdivision 1, is amended to read:
17.30    Subdivision 1. Violations. With regard to any driver's license, including a
17.31commercial driver's license, it shall be unlawful for any person:
17.32(1) to display, cause or permit to be displayed, or have in possession, any fictitious
17.33or fraudulently altered driver's license or Minnesota identification card;
17.34(2) to lend the person's driver's license or Minnesota identification card to any other
17.35person or knowingly permit the use thereof by another;
18.1(3) to display or represent as one's own any driver's license or Minnesota
18.2identification card not issued to that person;
18.3(4) to use a fictitious name or date of birth to any police officer or in any application
18.4for a driver's license or Minnesota identification card, or to knowingly make a false
18.5statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any
18.6such application;
18.7(5) to alter any driver's license or Minnesota identification card;
18.8(6) to take any part of the driver's license examination for another or to permit
18.9another to take the examination for that person;
18.10(7) to make a counterfeit driver's license or Minnesota identification card;
18.11(8) to use the name and date of birth of another person to any police officer for the
18.12purpose of falsely identifying oneself to the police officer; or
18.13(9) to display as a valid driver's license any canceled, revoked, or suspended driver's
18.14license. A person whose driving privileges have been withdrawn may display a driver's
18.15license only for identification purposes; or
18.16(10) to submit a false affidavit or statement to the department on the certification
18.17required under section 171.05, subdivision 2, paragraph (a), clause (1), item (ii), to issue
18.18an instruction permit to a homeschool student.

18.19    Sec. 26. Minnesota Statutes 2010, section 181A.05, subdivision 1, is amended to read:
18.20    Subdivision 1. When issued. Any minor 14 or 15 years of age who wishes to work
18.21on school days during school hours shall first secure an employment certificate. The
18.22certificate shall be issued only by the school district superintendent, the superintendent's
18.23agent, or some other person designated by the Board of Education, or by the person in
18.24charge of providing instruction for students enrolled in nonpublic schools as defined in
18.25section 120A.22, subdivision 4. The employment certificate shall be issued only for
18.26a specific position with a designated employer and shall be issued only in the following
18.27circumstances:
18.28(1) if a minor is to be employed in an occupation not prohibited by rules promulgated
18.29under section 181A.09 and as evidence thereof presents a signed statement from the
18.30prospective employer; and
18.31(2) if the parent or guardian of the minor consents to the employment; and
18.32(3) if the issuing officer believes the minor is physically capable of handling the job
18.33in question and further believes the best interests of the minor will be served by permitting
18.34the minor to work.

19.1    Sec. 27. Minnesota Statutes 2010, section 298.28, subdivision 2, is amended to read:
19.2    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
19.3merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
19.4provided in paragraph (c), must be allocated to the city or town in the county in which
19.5the lands from which taconite was mined or quarried were located or within which the
19.6concentrate was produced. If the mining, quarrying, and concentration, or different steps
19.7in either thereof are carried on in more than one taxing district, the commissioner shall
19.8apportion equitably the proceeds of the part of the tax going to cities and towns among
19.9such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
19.10the operation of mining or quarrying the taconite, and the remainder to the concentrating
19.11plant and to the processes of concentration, and with respect to each thereof giving due
19.12consideration to the relative extent of such operations performed in each such taxing
19.13district. The commissioner's order making such apportionment shall be subject to review
19.14by the Tax Court at the instance of any of the interested taxing districts, in the same
19.15manner as other orders of the commissioner.
19.16(b) Four cents per taxable ton shall be allocated to cities and organized townships
19.17affected by mining because their boundaries are within three miles of a taconite mine pit
19.18that has been actively mined in at least one of the prior three years. If a city or town is
19.19located near more than one mine meeting these criteria, the city or town is eligible to
19.20receive aid calculated from only the mine producing the largest taxable tonnage. When
19.21more than one municipality qualifies for aid based on one company's production, the aid
19.22must be apportioned among the municipalities in proportion to their populations. Of the
19.23amounts distributed under this paragraph to each municipality, one-half must be used for
19.24infrastructure improvement projects, and one-half must be used for projects in which two
19.25or more municipalities cooperate. Each municipality that receives a distribution under this
19.26paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
19.27the commissioner of Iron Range resources and rehabilitation on the projects involving
19.28cooperation with other municipalities.
19.29(c) The amount that would have been computed for the current year under Minnesota
19.30Statutes 2008, section 126C.21, subdivision 4, for a school district within which the
19.31taconite was mined or quarried or within which the concentrate is produced is added to
19.32the amount to be distributed to the cities and towns located within that school district as
19.33provided in paragraph (a).
19.34EFFECTIVE DATE.This section is effective for distributions in 2012 and
19.35thereafter.

20.1    Sec. 28. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
20.2    Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided
20.3in paragraph (d), less the amount that would have been computed under Minnesota
20.4Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be
20.5allocated to qualifying school districts to be distributed, based upon the certification of the
20.6commissioner of revenue, under paragraphs (b), (c), and (f).
20.7    (b) (i) 3.43 cents per taxable ton must be distributed to the school districts in which
20.8the lands from which taconite was mined or quarried were located or within which the
20.9concentrate was produced. The distribution must be based on the apportionment formula
20.10prescribed in subdivision 2.
20.11    (ii) Four cents per taxable ton from each taconite facility must be distributed to
20.12each affected school district for deposit in a fund dedicated to building maintenance
20.13and repairs, as follows:
20.14    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
20.15School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
20.16districts;
20.17    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
20.18Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
20.19districts;
20.20    (3) proceeds from the Mittal Steel Company and Minntac or their successors are
20.21distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
20.222711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
20.23    (4) proceeds from the Northshore Mining Company or its successor are distributed
20.24to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
20.25or their successor districts; and
20.26    (5) proceeds from United Taconite or its successor are distributed to Independent
20.27School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
20.28successor districts.
20.29    Revenues that are required to be distributed to more than one district shall be
20.30apportioned according to the number of pupil units identified in section 126C.05,
20.31subdivision 1 , enrolled in the second previous year.
20.32    (c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e),
20.33shall be distributed to a group of school districts comprised of those school districts which
20.34qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
20.35qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
20.36to school district indexes as follows: for each school district, its pupil units determined
21.1under section 126C.05 for the prior school year shall be multiplied by the ratio of the
21.2average adjusted net tax capacity per pupil unit for school districts receiving aid under
21.3this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
21.4ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
21.5Each district shall receive that portion of the distribution which its index bears to the sum
21.6of the indices for all school districts that receive the distributions.
21.7    (ii) Notwithstanding clause (i), each school district that receives a distribution
21.8under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
21.9clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
21.10severed mineral values after reduction for any portion distributed to cities and towns
21.11under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
21.12levy reduction under section 126C.48, subdivision 8, for the second year prior to the
21.13year of the distribution shall receive a distribution equal to the difference; the amount
21.14necessary to make this payment shall be derived from proportionate reductions in the
21.15initial distribution to other school districts under clause (i). If there are insufficient tax
21.16proceeds to make the distribution provided under this paragraph in any year, money must
21.17be transferred from the taconite property tax relief account in subdivision 6, to the extent
21.18of the shortfall in the distribution.
21.19    (d) Any school district described in paragraph (c) where a levy increase pursuant to
21.20section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
21.21shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
21.22pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
21.23year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
21.24times the district's taxable net tax capacity in the second previous year.
21.25    If the total amount provided by paragraph (d) is insufficient to make the payments
21.26herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
21.27so as not to exceed the funds available. Any amounts received by a qualifying school
21.28district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
21.29education aid which the district receives pursuant to section 126C.13 or the permissible
21.30levies of the district. Any amount remaining after the payments provided in this paragraph
21.31shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
21.32deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
21.33economic protection trust fund as provided in subdivision 11.
21.34    Each district receiving money according to this paragraph shall reserve the lesser of
21.35the amount received under this paragraph or $25 times the number of pupil units served
21.36in the district. It may use the money for early childhood programs or for outcome-based
22.1learning programs that enhance the academic quality of the district's curriculum. The
22.2outcome-based learning programs must be approved by the commissioner of education.
22.3    (e) There shall be distributed to any school district the amount which the school
22.4district was entitled to receive under section 298.32 in 1975.
22.5    (f) Four cents per taxable ton must be distributed to qualifying school districts
22.6according to the distribution specified in paragraph (b), clause (ii), and two cents per
22.7taxable ton must be distributed according to the distribution specified in paragraph
22.8(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48,
22.9subdivision 8 .
22.10EFFECTIVE DATE.This section is effective for distributions in 2012 and
22.11thereafter.

22.12    Sec. 29. ALTERNATIVE COMPENSATION FORECAST REVENUE
22.13RECAPTURE.
22.14Notwithstanding Minnesota Statutes, section 126C.10, subdivision 34, paragraph
22.15(c), for fiscal year 2012 only, the aid entitlement for basic alternative compensation is
22.16reduced by $10,190,000 compared to the February 2011 forecast.

22.17    Sec. 30. KITTSON CENTRAL SCHOOL CLOSING.
22.18Independent School District No. 356, Lancaster, is eligible for sparsity revenue
22.19calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012
22.20and later, if the board has adopted a written resolution at any time prior to the start of
22.21the 2011-2012 school year to notify the commissioner and request aid under Minnesota
22.22Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school
22.23district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision
22.248a, as a result of the closure of the Kennedy Elementary School in Independent School
22.25District No. 2171, Kittson Central.
22.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
22.27and later.

22.28    Sec. 31. NORTHLAND COMMUNITY SCHOOL CLOSING.
22.29(a) Independent School District No. 118, Northland Community Schools, is eligible
22.30for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a,
22.31for fiscal year 2012 and later, if the board has adopted the required written resolution at
22.32least 60 days prior to the start of fiscal year 2012.
23.1(b) If the school district adopts a written resolution under paragraph (a), in fiscal
23.2year 2012, the commissioner must provide sparsity aid to the district in an amount equal
23.3to the amount that the district would have received under Minnesota Statutes, section
23.4126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in
23.5effect. The school district must recognize the sparsity aid provided under this paragraph as
23.6revenue in fiscal year 2011.
23.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2011.

23.8    Sec. 32. SCHOOL DISTRICT LEVY ADJUSTMENTS.
23.9    Subdivision 1. Tax rate adjustment. The commissioner of education must adjust
23.10each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
23.11by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
23.122010 as it existed prior to the passage of House File 42, or a similarly styled bill, to the
23.13statewide total tax capacity for assessment year 2010.
23.14    Subd. 2. Equalizing factors. The commissioner of education must adjust each
23.15school district equalizing factor established under Minnesota Statutes, chapters 120B to
23.16127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
23.17assessment year 2010 as it existed prior to the passage of House File 42, or a similarly
23.18styled bill, to the statewide total tax capacity for assessment year 2010.
23.19EFFECTIVE DATE.This section is effective the day following final enactment.

23.20    Sec. 33. APPROPRIATIONS.
23.21    Subdivision 1. Department of Education. The sums indicated in this section are
23.22appropriated from the general fund to the Department of Education for the fiscal years
23.23designated.
23.24    Subd. 2. General education aid. For general education aid under Minnesota
23.25Statutes, section 126C.13, subdivision 4:

23.26		$	5,656,581,000	.....	2012
23.27		$	5,785,231,000	.....	2013

23.28The 2012 appropriation includes $1,678,539,000 for 2011 and $3,978,042,000
23.29for 2012.
23.30The 2013 appropriation includes $1,704,523,000 for 2012 and $4,080,708,000
23.31for 2013.
24.1    Subd. 3. Enrollment options transportation. For transportation of pupils attending
24.2postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
24.3of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

24.4		$	31,000	.....	2012
24.5		$	32,000	.....	2013

24.6    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
24.7127A.49:

24.8		$	1,452,000	.....	2012
24.9		$	1,635,000	.....	2013

24.10The 2012 appropriation includes $346,000 for 2011 and $1,106,000 for 2012.
24.11The 2013 appropriation includes $473,000 for 2012 and $1,162,000 for 2013.
24.12    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
24.13Statutes, section 123A.485:

24.14		$	145,000	.....	2012
24.15		$	210,000	.....	2013

24.16The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
24.17The 2013 appropriation includes $0 for 2012 and $210,000 for 2013.
24.18    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
24.19Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

24.20		$	16,118,000	.....	2012
24.21		$	16,043,000	.....	2013

24.22The 2012 appropriation includes $5,078,000 for 2011 and $11,040,000 for 2012.
24.23The 2013 appropriation includes $4,730,000 for 2012 and $11,313,000 for 2013.
24.24    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
24.25under Minnesota Statutes, section 123B.92, subdivision 9:

24.26		$	18,979,000	.....	2012
24.27		$	18,905,000	.....	2013

24.28The 2012 appropriation includes $5,895,000 for 2011 and $13,084,000 for 2012.
24.29The 2013 appropriation includes $5,607,000 for 2012 and $13,298,000 for 2013.
24.30    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
24.31690, Warroad, to operate the Angle Inlet School:

24.32		$	65,000	.....	2012
24.33		$	65,000	.....	2013

25.1    Subd. 9. Compensatory revenue pilot project. For grants for participation in the
25.2compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
25.3article 1, section 50:

25.4		$	2,175,000	.....	2012
25.5		$	2,175,000	.....	2013

25.6Of this amount, $1,500,000 in each year is for a grant to Independent School District
25.7No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School
25.8District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent
25.9School District No. 279, Osseo; $160,000 in each year is for a grant to Independent
25.10School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent
25.11School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
25.12School District No. 833, South Washington.
25.13If a grant to a specific school district is not awarded, the commissioner may increase
25.14the aid amounts to any of the remaining participating school districts.
25.15This appropriation is part of the base budget for subsequent fiscal years.

25.16    Sec. 34. REPEALER AND REENACTMENT.
25.17(a) Laws 2009, chapter 88, article 12, section 23, paragraph (c), is repealed and
25.18Minnesota Statutes 2008, section 126C.21, subdivision 4, is reenacted for revenue for
25.19fiscal year 2012 and thereafter.
25.20(b) Minnesota Statutes 2010, sections 120A.26, subdivisions 1 and 2; and 126C.10,
25.21subdivision 5, are repealed.

25.22ARTICLE 2

25.23ACADEMIC EXCELLENCE

25.24    Section 1. Minnesota Statutes 2010, section 13D.02, is amended by adding a
25.25subdivision to read:
25.26    Subd. 5. School boards; interactive technology with an audio and visual link.
25.27A school board conducting a meeting under this section may use interactive technology
25.28with an audio and visual link to conduct the meeting if the school board complies with
25.29all other requirements under this section.

25.30    Sec. 2. Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to read:
25.31    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
25.32revise and appropriately embed technology and information literacy standards consistent
25.33with recommendations from school media specialists into the state's academic standards
26.1and graduation requirements and implement a review cycle for state academic standards
26.2and related benchmarks, consistent with this subdivision. The commissioner must revise
26.3and align the state's academic standards and graduation requirements, consistent with the
26.4review cycle established in this subdivision and the requirements of chapter 14, but must
26.5not proceed to finally adopt revised and realigned academic standards and graduation
26.6requirements in rule without first receiving specific legislative authority to do so. During
26.7each review cycle, the commissioner also must examine the alignment of each required
26.8academic standard and related benchmark with the knowledge and skills students need for
26.9college readiness and advanced work in the particular subject area.
26.10(b) The commissioner in the 2006-2007 school year must revise and align the state's
26.11academic standards and high school graduation requirements in mathematics to require
26.12that students satisfactorily complete the revised mathematics standards, beginning in the
26.132010-2011 school year. Under the revised standards:
26.14(1) students must satisfactorily complete an algebra I credit by the end of eighth
26.15grade; and
26.16(2) students scheduled to graduate in the 2014-2015 school year or later must
26.17satisfactorily complete an algebra II credit or its equivalent.
26.18The commissioner also must ensure that the statewide mathematics assessments
26.19administered to students in grades 3 through 8 and 11 are aligned with the state academic
26.20standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
26.21(b). The commissioner must implement a review of the academic standards and related
26.22benchmarks in mathematics beginning in the 2015-2016 school year.
26.23(c) The commissioner in the 2007-2008 school year must revise and align the state's
26.24academic standards and high school graduation requirements in the arts to require that
26.25students satisfactorily complete the revised arts standards beginning in the 2010-2011
26.26school year. The commissioner must implement a review of the academic standards and
26.27related benchmarks in arts beginning in the 2016-2017 school year.
26.28(d) The commissioner in the 2008-2009 school year must revise and align the state's
26.29academic standards and high school graduation requirements in science to require that
26.30students satisfactorily complete the revised science standards, beginning in the 2011-2012
26.31school year. Under the revised standards, students scheduled to graduate in the 2014-2015
26.32school year or later must satisfactorily complete a chemistry or, physics, or career and
26.33technical education credit. The commissioner must implement a review of the academic
26.34standards and related benchmarks in science beginning in the 2017-2018 school year.
26.35(e) The commissioner in the 2009-2010 school year must revise and align the state's
26.36academic standards and high school graduation requirements in language arts to require
27.1that students satisfactorily complete the revised language arts standards beginning in the
27.22012-2013 school year. The commissioner must implement a review of the academic
27.3standards and related benchmarks in language arts beginning in the 2018-2019 school year.
27.4(f) The commissioner in the 2010-2011 school year must revise and align review
27.5the state's academic standards and high school graduation requirements in social studies
27.6to require that students must satisfactorily complete the revised social studies standards
27.7beginning in the 2013-2014 2014-2015 school year. The commissioner must again
27.8implement a review of the academic standards and related benchmarks in social studies
27.9beginning in the 2019-2020 2020-2021 school year.
27.10(g) School districts and charter schools must revise and align local academic
27.11standards and high school graduation requirements in health, world languages, and career
27.12and technical education to require students to complete the revised standards beginning
27.13in a school year determined by the school district or charter school. School districts and
27.14charter schools must formally establish a periodic review cycle for the academic standards
27.15and related benchmarks in health, world languages, and career and technical education.
27.16(h) The commissioner is prohibited from adopting common core state standards
27.17in any subject and school year listed in any revision cycle under this section that were
27.18developed with the participation of the National Governors Association and the Council
27.19of Chief State School Officers.
27.20EFFECTIVE DATE.This section is effective the day following final enactment.

27.21    Sec. 3. Minnesota Statutes 2010, section 120B.35, subdivision 1, is amended to read:
27.22    Subdivision 1. School and student indicators of growth and achievement.
27.23The commissioner must develop and implement a system for measuring and reporting
27.24academic achievement and individual student growth, consistent with the statewide
27.25educational accountability and reporting system. The system components must measure
27.26and separately report the adequate yearly progress of schools and the growth of individual
27.27students: students' current achievement in schools under subdivision 2; and individual
27.28students' educational growth over time under subdivision 3. The commissioner annually
27.29must report a student's growth and progress toward grade-level proficiency under section
27.30120B.299 as it relates to applicable state academic standards and the statewide assessments
27.31aligned with those standards. The system also must include statewide measures of student
27.32academic growth that identify schools with high levels of growth, and also schools with
27.33low levels of growth that need improvement. When determining a school's effect, the data
27.34must include both statewide measures of student achievement and, to the extent annual
27.35tests are administered, indicators of achievement growth that take into account a student's
28.1prior achievement. Indicators of achievement and prior achievement must be based on
28.2highly reliable statewide or districtwide assessments. Indicators that take into account a
28.3student's prior achievement must not be used to disregard a school's low achievement or to
28.4exclude a school from a program to improve low achievement levels.
28.5EFFECTIVE DATE.This section is effective July 1, 2012, and applies to growth
28.6data beginning in the 2012-2013 school year.

28.7    Sec. 4. Minnesota Statutes 2010, section 120B.36, subdivision 1, is amended to read:
28.8    Subdivision 1. School performance report cards. (a) The commissioner
28.9shall report student academic performance under section 120B.35, subdivision 2; the
28.10percentages of students showing low, medium, and high growth under section 120B.35,
28.11subdivision 3 , paragraph (b); school safety and student engagement and connection
28.12under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
28.13120B.35, subdivision 3 , paragraph (c); two separate student-to-teacher ratios that clearly
28.14indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for
28.15purposes of determining these ratios; staff characteristics excluding salaries; the number
28.16of teachers in each performance effectiveness rating category under section 122A.411,
28.17subdivision 3, by school site; student enrollment demographics; district mobility; and
28.18extracurricular activities. The report also must indicate a school's adequate yearly progress
28.19status, and must not set any designations applicable to high- and low-performing schools
28.20due solely to adequate yearly progress status.
28.21    (b) The commissioner shall develop, annually update, and post on the department
28.22Web site school performance report cards.
28.23    (c) The commissioner must make available performance report cards by the
28.24beginning of each school year.
28.25    (d) A school or district may appeal its adequate yearly progress status in writing to
28.26the commissioner within 30 days of receiving the notice of its status. The commissioner's
28.27decision to uphold or deny an appeal is final.
28.28    (e) School performance report card data are nonpublic data under section 13.02,
28.29subdivision 9 , until not later than ten days after the appeal procedure described in
28.30paragraph (d) concludes. The department shall annually post school performance report
28.31cards to its public Web site no later than September 1.
28.32EFFECTIVE DATE.This section is effective July 1, 2014.

29.1    Sec. 5. [120B.361] DISTRICT AND CHARTER SCHOOL AND SCHOOL
29.2DISTRICT GRADING SYSTEM AND SCHOOL RECOGNITION PROGRAM.
29.3    Subdivision 1. District and charter school and school district grades. (a)
29.4Consistent with the state growth targets established under sections 120B.299 and 120B.35,
29.5subdivision 3, paragraphs (a) and (b), and the school performance report cards under
29.6section 120B.36, subdivision 1, an "A to F" grading system for district and charter schools
29.7and school districts is established to help identify those schools and districts where
29.8students are achieving low, medium, or high growth and achieving or not achieving
29.9proficiency on statewide assessments under section 120B.30. For purposes of this section,
29.10and using the state growth target, the commissioner annually must assign each district
29.11and charter school and school district an "A to F" grade and then report that grade under
29.12section 120B.36, subdivision 1, based on the following calculations:
29.13(1) 50 percent of a school's grade must be determined based on the numbers and
29.14percentages of students in each applicable student category for which assessment data
29.15is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
29.16paragraph (c), who achieved proficiency on the statewide reading and mathematics
29.17assessments under section 120B.30 in the previous school year;
29.18(2) 25 percent of a school's grade must be determined based on the numbers and
29.19percentages of students in each applicable student category for which assessment data
29.20is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
29.21paragraph (c), who achieved low growth, medium growth, or high growth on the statewide
29.22reading and mathematics assessments under section 120B.30 in the previous school year;
29.23(3) 15 percent of a school's grade must be determined based on the numbers and
29.24percentages of students in each applicable student category for which assessment data
29.25is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
29.26paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
29.27reading assessments under section 120B.30 in the previous school year;
29.28(4) ten percent of a school's grade must be determined based on the numbers and
29.29percentages of students in each applicable student category for which assessment data
29.30is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
29.31paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
29.32mathematics assessments under section 120B.30 in the previous school year; and
29.33(5) using the calculations in clauses (1) to (4), a school district's grade must be
29.34determined based on the combined average scores of all district schools.
29.35(b) The grade a school or district receives under this subdivision must accurately
29.36reflect the differences in schools' performances based on students' proficiency and growth
30.1and the calculations required under this subdivision. A school or district may appeal its
30.2grade in writing to the commissioner within 30 days of receiving notice of its grade. The
30.3commissioner's decision regarding the grade is final. Grades given under this section are
30.4nonpublic data under section 13.02, subdivision 9, until not later than ten days after the
30.5appeal under this paragraph is complete.
30.6    Subd. 2. District and charter school recognition. (a) A school that received a
30.7letter grade of "A" in the previous school year, improved at least one letter grade in the
30.8previous school year, or improved two or more letter grades in the two previous school
30.9years is eligible to receive a school recognition award.
30.10(b) A school recognition award under this subdivision equals $100 per enrollee for
30.11each eligible school. The commissioner must distribute the award to each eligible school.
30.12(c) An eligible school that receives a school recognition award may use the award to:
30.13(1) pay onetime bonuses for licensed staff employed at the school;
30.14(2) pay onetime expenditures for educational equipment or materials to help
30.15maintain or improve student academic achievement; or
30.16(3) temporarily employ licensed or otherwise qualified staff to help maintain or
30.17improve student academic achievement.
30.18Notwithstanding any other law to the contrary, an award a school receives under this
30.19subdivision is not subject to a collective bargaining agreement.
30.20(d) To distribute the award at the school, and consistent with paragraph (c), an
30.21eligible school may select a site team that includes at least the school principal or other
30.22person having administrative control of the school, teachers employed at the school, the
30.23parent of a student enrolled in the school, and a community representative to decide how
30.24best to use the award. Alternatively, if by November 1 in the year in which the award
30.25is made the site team cannot reach agreement or if no site team is selected, the school
30.26principal or other person having administrative control of the school must distribute the
30.27award.
30.28EFFECTIVE DATE.This section is effective the day following final enactment
30.29and requires the education commissioner to use student performance data beginning in the
30.302011-2012 school year, determine and report a letter grade for each school and district,
30.31and distribute school recognition awards beginning in the 2012-2013 school year and later.

30.32    Sec. 6. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
30.33to read:
30.34    Subd. 3a. Qualified economic offer. (a) Notwithstanding any law to the contrary,
30.35if a school board offers teachers a biennial contract that includes a percentage increase
31.1in total compensation at least equal to the district's biennial percentage increase in
31.2basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the
31.3most recent estimate of district basic revenue for the biennium that corresponds to the
31.4prospective contract term to (2) district basic revenue for the previous biennium; teachers
31.5may not strike for any issue relating to total compensation for the years covered by that
31.6contract or submit any total compensation issue to interest arbitration under section
31.7179A.16. District fund balances or other revenue sources or allocations are not to be
31.8included in any calculation of compensation under this subdivision.
31.9(b) If a school board and teachers do not agree on the allocation of the total
31.10compensation offered by the board under paragraph (a) by September 1 of an
31.11even-numbered calendar year, the allocation of total compensation among teachers shall
31.12be as follows:
31.13(1) existing employee benefits must continue at the same percentage of the total
31.14compensation and in the same manner as provided in the teachers' immediately preceding
31.15employment contract; and
31.16(2) based on the percentage increase in the general education formula allowance
31.17for the biennium for which the contract is in effect, any remaining percentage of the total
31.18compensation for the contract period being negotiated, after subtracting the value of
31.19clause (1), is for increases in teacher salary based on first, alternative teacher pay plans
31.20under section 122A.414; second, the number of years of service; and third, promotion
31.21and advanced education.
31.22(c) For purposes of this subdivision, the following terms have the meanings given
31.23them.
31.24"Teachers" means classroom teachers licensed under section 122A.18. At a school
31.25board's election, teachers also means school administrators licensed under section
31.26122A.14, subdivision 1. A school board that elects to offer school administrators an
31.27employment contract under this subdivision must make the offer consistent with section
31.28179A.20 and the provisions of this subdivision. A school board, at its discretion, also
31.29may elect to offer any of its nonlicensed employees an employment contract under the
31.30terms of this subdivision.
31.31"Total compensation" means the sum of the following cost components: (i) a school
31.32district's total salary schedule costs excluding alternative teacher compensation under
31.33sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
31.34teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
31.35health insurance costs paid by the school district for its teachers, excluding any district
31.36contributions to health reimbursement arrangements (HRA) or health savings accounts
32.1(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
32.2(v) total long-term disability costs paid by the school district for its teachers; (vi) total
32.3dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
32.4costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
32.5salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
32.6for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
32.7the school district for its teachers; and (xi) other miscellaneous costs identified by the
32.8school district as payment for teachers' services or benefits such as special school events,
32.9extra service duty, summer school instruction, drivers' education outside the regular school
32.10day and school year, and other direct salary payments to teachers or fringe benefit costs
32.11paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
32.12EFFECTIVE DATE.This section is effective for contracts ratified beginning
32.13July 1, 2011.

32.14    Sec. 7. Minnesota Statutes 2010, section 122A.40, subdivision 5, is amended to read:
32.15    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's
32.16first teaching experience in Minnesota in a single district is deemed to be a probationary
32.17period of employment, and after completion thereof, the probationary period in each
32.18district in which the teacher is thereafter employed shall be one year. The school board
32.19must adopt a plan for written evaluation of teachers during the probationary period that
32.20complies with section 122A.411. Evaluation must occur at least three times each year for a
32.21teacher performing services on 120 or more school days, at least two times each year for a
32.22teacher performing services on 60 to 119 school days, and at least one time each year for a
32.23teacher performing services on fewer than 60 school days. Days devoted to parent-teacher
32.24conferences, teachers' workshops, and other staff development opportunities and days on
32.25which a teacher is absent from school must not be included in determining the number
32.26of school days on which a teacher performs services. Except as otherwise provided in
32.27paragraph (b), during the probationary period any annual contract with any teacher may or
32.28may not be renewed as the school board shall see fit. However, the board must give any
32.29such probationary teacher whose contract it declines to renew for the following school
32.30year written notice to that effect before July 1. If the teacher requests reasons for any
32.31nonrenewal of a teaching contract, the board must give the teacher its reason in writing,
32.32including a statement that appropriate supervision was furnished describing the nature and
32.33the extent of such supervision furnished the teacher during the employment by the board,
32.34within ten days after receiving such request. The school board may, after a hearing held
33.1upon due notice, discharge a teacher during the probationary period for cause, effective
33.2immediately, under section 122A.44.
33.3(b) A board must discharge a probationary teacher, effective immediately, upon
33.4receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
33.5license has been revoked due to a conviction for child abuse or sexual abuse.
33.6(c) A probationary teacher whose first three years of consecutive employment are
33.7interrupted for active military service and who promptly resumes teaching consistent with
33.8federal reemployment timelines for uniformed service personnel under United States
33.9Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
33.10for purposes of paragraph (a).
33.11(d) A probationary teacher must complete at least 60 days of teaching service each
33.12year during the probationary period. Days devoted to parent-teacher conferences, teachers'
33.13workshops, and other staff development opportunities and days on which a teacher is
33.14absent from school do not count as days of teaching service under this paragraph.
33.15(e) A district must decide whether to issue a renewable five-year contract to a
33.16classroom teacher at the end of the teacher's probationary period based on:
33.17(1) the teacher's appraisal results and performance effectiveness rating under section
33.18122A.411; and
33.19(2) other locally selected criteria aligned to instructional practices in teaching and
33.20learning.
33.21EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
33.22later.

33.23    Sec. 8. Minnesota Statutes 2010, section 122A.40, subdivision 7, is amended to read:
33.24    Subd. 7. Termination of contract after probationary period. (a) A teacher who
33.25has completed a probationary period in any district, and who has not been discharged or
33.26advised of a refusal to renew the teacher's contract under subdivision 5, shall elect to have
33.27a continuing renewable five-year contract with such the district where contract terms
33.28and conditions, including salary and salary increases, are established based either on the
33.29length of the school calendar or an extended school calendar under section 120A.415.
33.30Thereafter, The teacher's contract must remain in full force and effect, except as modified
33.31by mutual consent of the board and the teacher, until terminated by a majority roll call
33.32vote of the full membership of the board prior to April 1 upon one of the grounds specified
33.33in subdivision 9 or July 1 upon one of the grounds specified in subdivision 9, 10 or 11, or
33.34until the teacher is discharged pursuant to subdivision 13, or by the written resignation
33.35of the teacher submitted prior to April 1. If an agreement as to the terms and conditions
34.1of employment for the succeeding school year has not been adopted pursuant to the
34.2provisions of under sections 179A.01 to 179A.25 prior to March 1, the teacher's right of
34.3resignation is extended to the 30th calendar day following the adoption of said the contract
34.4in compliance with under section 179A.20, subdivision 5. Such Written resignation by the
34.5teacher is effective as of on June 30 if submitted prior to before that date and the teachers'
34.6teacher's right of resignation for the next school year then beginning shall cease on July 15.
34.7(b) Before a teacher's contract is terminated by the board, the board must notify the
34.8teacher in writing and state its ground grounds for the proposed termination in reasonable
34.9detail together with a statement that the teacher may make a written request for a hearing
34.10before the board within 14 calendar days after receipt of such the notification, and it
34.11shall be granted within ten calendar days with notice to the teacher of the date set for
34.12the hearing, before final action is taken.
34.13If the grounds are those specified in subdivision 9 or 13, the notice must also state a
34.14teacher may request arbitration under subdivision 15. Within 14 calendar days after receipt
34.15of this the notification, the teacher may make a written request for a hearing before the
34.16board or an arbitrator and it shall be granted upon reasonable within 14 calendar days with
34.17notice to the teacher of the date set for hearing or arbitration, before final action is taken.
34.18If no hearing or arbitration is requested within such the required time period, it shall be
34.19deemed acquiescence by the teacher to the board's action. Such The teacher's termination
34.20under subdivision 9 shall take effect at the close of the school year in which the contract is
34.21terminated in the manner aforesaid, and termination discharge under subdivision 13 shall
34.22take effect immediately. A board may, however, suspend a teacher with pay pending the
34.23conclusion of a hearing or arbitration and determination of the issues raised in the hearing
34.24or arbitration after charges have been filed that constitute grounds for discharge. Such A
34.25teacher's renewable five-year contract may be terminated at any time by mutual consent of
34.26the board and the teacher and this section does not affect the powers of a board to suspend,
34.27discharge, or demote a teacher under and pursuant to other provisions of law.
34.28(b) (c) A teacher electing to have who has a continuing renewable five-year contract
34.29based on the extended school calendar under section 120A.415 must participate in staff
34.30development training under subdivision 7a and shall receive an increased base salary.
34.31EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
34.32later.

34.33    Sec. 9. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
34.34to read:
35.1    Subd. 7b. Teacher employment. (a) A school district must use a teacher appraisal
35.2framework to make informed decisions about teacher development and performance.
35.3Teachers must participate in ongoing professional development to improve teaching and
35.4learning throughout a term of employment.
35.5(b) After completing the initial three-year probationary period without discharge, a
35.6teacher who is reemployed by a school board continues in service and holds that position
35.7during good behavior and efficient and competent service for a renewable five-year term.
35.8The terms and conditions of a teacher's employment contract, including salary and salary
35.9increases, must be based either on the length of the school year or an extended school
35.10calendar under section 120A.415.
35.11(c) At the end of every five-year term, the school board either must continue or
35.12terminate a teacher's employment based on:
35.13(1) the teacher's appraisal results and performance effectiveness rating under section
35.14122A.411; and
35.15(2) other locally selected criteria aligned to instructional practices in teaching and
35.16learning.
35.17EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
35.18later.

35.19    Sec. 10. Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:
35.20    Subd. 9. Grounds for termination. (a) A continuing renewable five-year contract
35.21may be terminated, effective at the close of the school year, upon any of the following
35.22grounds:
35.23(a) (1) inefficiency;
35.24(b) (2) neglect of duty, or persistent violation of school laws, rules, regulations,
35.25or directives;
35.26(c) (3) conduct unbecoming a teacher which materially impairs the teacher's
35.27educational effectiveness;
35.28(d) (4) other good and sufficient grounds rendering the teacher unfit to perform the
35.29teacher's duties.; or
35.30(5) the teacher is ineffective under section 122A.411 and not recommended by the
35.31district for continued employment under this section.
35.32(b) A contract must not be terminated upon one of the grounds specified in clause
35.33under paragraph (a), (b), (c), or (d), clause (1), (2), (3), or (4), unless the teacher fails to
35.34correct the deficiency after being given written notice of the specific items of complaint
36.1and reasonable time, a written plan to assist the teacher in remedying the specific items of
36.2complaint, and for a period not to exceed six months within which to remedy them.
36.3For purposes of paragraph (a), clause (5), a teacher must correct the deficiency
36.4within 180 days after receiving the notice to remedy the deficiency.
36.5EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
36.6later.

36.7    Sec. 11. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
36.8    Subd. 11. Unrequested leave of absence. (a) The board may place on unrequested
36.9leave of absence, without pay or fringe benefits, as many teachers as may be necessary
36.10because of discontinuance of position, lack of pupils, financial limitations, or merger of
36.11classes caused by consolidation of districts. The unrequested leave is effective at the
36.12close of the school year. In placing teachers on unrequested leave, the superintendent
36.13may exempt from the effects of paragraphs (b) to (e) those teachers who, based on the
36.14teachers' effectiveness ratings under section 122A.411, are able to provide instruction that
36.15similarly licensed teachers cannot provide or whose subject area license meets unmet
36.16district needs for student instruction. The board is governed by the following provisions:
36.17paragraphs (b) to (j).
36.18(a) The board may place probationary teachers on unrequested leave first in the
36.19inverse order of their employment. A teacher who has acquired continuing contract rights
36.20must not be placed on unrequested leave of absence while probationary teachers are
36.21retained in positions for which the teacher who has acquired continuing contract rights is
36.22licensed;
36.23(b) Teachers who have acquired continuing contract rights shall be placed on
36.24unrequested leave of absence in fields in which they are licensed in the following order:
36.25(1) teachers with an "ineffective" rating under section 122A.411 in the inverse order
36.26in which they were employed by the school district.;
36.27(2) teachers with a "needs improvement" rating under section 122A.411 in the
36.28inverse order in which they were employed by the school district;
36.29(3) teachers with an "average" rating under section 122A.411 with four or more
36.30years of teaching experience in the inverse order in which they were employed by the
36.31school district;
36.32(4) teachers with an "effective" rating under section 122A.411 with fewer than four
36.33years of teaching experience in the inverse order in which they were employed by the
36.34school district; and
37.1(5) teachers with a "highly effective" rating under section 122A.411 in the inverse
37.2order in which they were employed by the school district.
37.3In the case of equal seniority, the order in which teachers who have acquired
37.4continuing contract rights shall be placed on unrequested leave of absence in fields in
37.5which they are licensed is negotiable;
37.6(c) Notwithstanding the provisions of clause (b), a teacher is not entitled to exercise
37.7any seniority when that exercise results in that teacher being retained by the district in a
37.8field for which the teacher holds only a provisional license, as defined by the board of
37.9teaching, unless that exercise of seniority results in the placement on unrequested leave of
37.10absence of another teacher who also holds a provisional license in the same field. The
37.11provisions of this clause do not apply to vocational education licenses;
37.12(d) (c) Notwithstanding clauses (a), paragraph (b) and (c), if the placing of a
37.13probationary teacher on unrequested leave before a teacher who has acquired continuing
37.14rights, the placing of a teacher who has acquired continuing contract rights on unrequested
37.15leave before another teacher who has acquired continuing contract rights but who has
37.16greater seniority, or the restriction restrictions imposed by the provisions of clause (c)
37.17 paragraph (b) would place the district in violation of its affirmative action program,
37.18the district may retain the probationary teacher, the teacher with less seniority, or the
37.19provisionally licensed teacher; with a lower effectiveness rating or less seniority.
37.20(e) (d) Teachers placed on unrequested leave of absence must be reinstated to
37.21the positions from which they have been given leaves of absence or, if not available,
37.22to other available positions in the school district in fields in which they are licensed.
37.23Reinstatement must be in the inverse order of placement on leave of absence. A teacher
37.24must not be reinstated to a position in a field in which the teacher holds only a provisional
37.25license, other than a vocational education license, while another teacher who holds a
37.26nonprovisional license in the same field remains on unrequested leave. The order of
37.27reinstatement of teachers who have equal seniority and who are placed on unrequested
37.28leave in the same school year is negotiable;.
37.29(f) (e) Appointment of a new teacher must not be made while there is available, on
37.30unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
37.31teacher fails to advise the school board within 30 days of the date of notification that a
37.32position is available to that teacher who may return to employment and assume the duties
37.33of the position to which appointed on a future date determined by the board;.
37.34(g) (f) A teacher placed on unrequested leave of absence may engage in teaching
37.35or any other occupation during the period of this leave;.
38.1(h) (g) The unrequested leave of absence must not impair the continuing contract
38.2rights of a teacher or result in a loss of credit for previous years of service;.
38.3(i) (h) The unrequested leave of absence of a teacher who is placed on unrequested
38.4leave of absence and who is not reinstated shall continue for a period of five years until
38.5that teacher's contract expires under subdivision 7b, after which the right to reinstatement
38.6shall terminate. The teacher's right to reinstatement shall also terminate if the teacher fails
38.7to file with the board by April 1 of any year a written statement requesting reinstatement;.
38.8(j) (i) The same provisions applicable to terminations of probationary or continuing
38.9renewable five-year contracts in subdivisions 5 and 7 must apply to placement on
38.10unrequested leave of absence;.
38.11(k) (j) Nothing in this subdivision shall be construed to impair the rights of teachers
38.12placed on unrequested leave of absence to receive unemployment benefits if otherwise
38.13eligible.
38.14EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
38.15later.

38.16    Sec. 12. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
38.17    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
38.18(b), a board may discharge a continuing-contract teacher teacher's renewable five-year
38.19contract, effective immediately, upon any of the following grounds:
38.20(1) immoral conduct, insubordination, or conviction of a felony;
38.21(2) conduct unbecoming a teacher which requires the immediate removal of the
38.22teacher from the classroom or other duties;
38.23(3) failure without justifiable cause to teach without first securing the written release
38.24of the school board;
38.25(4) gross inefficiency which the teacher has failed to correct after reasonable written
38.26notice;
38.27(5) willful neglect of duty; or
38.28(6) continuing physical or mental disability subsequent to a 12 months 12-month
38.29leave of absence and inability to qualify for reinstatement in accordance with subdivision
38.3012; or
38.31(7) the inability of the board to terminate at the close of the previous school year
38.32under subdivision 9.
38.33For purposes of this paragraph subdivision, conduct unbecoming a teacher includes
38.34an unfair discriminatory practice described in section 363A.13.
39.1Prior to discharging a teacher under this paragraph, the board must notify the teacher
39.2in writing and state its ground for the proposed discharge in reasonable detail. Within
39.3ten five days after receipt of this notification the teacher may make a written request
39.4for a hearing before the board and it shall be granted before final action is taken. The
39.5board may, however, suspend a teacher with pay pending only for the first 60 days of the
39.6suspension from regular duty. If the conclusion of such hearing and determination of the
39.7issues raised in the hearing after charges have been filed which constitute constitutes
39.8 ground for discharge, the board may, in its discretion, determine the teacher's salary or
39.9compensation at the time of filing charges against the teacher, but must subtract the
39.10amount of any payment made to the teacher during the first 60 days of suspension. If
39.11the determination of the issues is favorable to the teacher, the board must not abate the
39.12teacher's salary or compensation. The hearing must be held within 30 days of the board
39.13action proposing discharge, unless otherwise agreed to by both parties.
39.14(b) A board must discharge a continuing-contract teacher with a renewable five-year
39.15contract, effective immediately, upon receipt of notice under section 122A.20, subdivision
39.161 , paragraph (b), that the teacher's license has been revoked due to a conviction for child
39.17abuse or sexual abuse.
39.18EFFECTIVE DATE.This section is effective September 1, 2011, and applies to
39.19all discharge actions initiated by the board after that date.

39.20    Sec. 13. Minnesota Statutes 2010, section 122A.40, subdivision 15, is amended to read:
39.21    Subd. 15. Hearing and determination by arbitrator. (a) A teacher whose
39.22termination discharge is proposed under subdivision 7 on grounds specified in subdivision
39.239, or whose discharge is proposed under subdivision 13, may elect a hearing before an
39.24arbitrator arbitration instead of a hearing before the school board. The hearing arbitration
39.25is governed by this subdivision.
39.26(a) (b) The teacher must make a written request for a hearing before an arbitrator
39.27within 14 calendar days after receiving notification of proposed termination on grounds
39.28specified in subdivision 9 or within ten days of receiving notification of proposed
39.29discharge under subdivision 13. The hearing must be held within 30 days of the board
39.30action proposing discharge, unless otherwise agreed to by both parties. If a request for a
39.31hearing does not specify that the hearing be before an arbitrator, it is considered to be a
39.32request for a hearing before the school board.
39.33(b) (c) If the teacher and the school board are unable to mutually agree on an
39.34arbitrator, the board must request from the bureau of mediation services a list of five
39.35randomly selected persons to serve as an arbitrator. If the matter to be heard is a proposed
40.1termination on grounds specified in subdivision 9, arbitrators on the list must be available
40.2to hear the matter and make a decision within a time frame that will allow the board to
40.3comply with all statutory timelines relating to termination. If the teacher and the board
40.4are unable to mutually agree on an arbitrator from the list provided, the parties shall
40.5alternately strike names from the list until the name of one arbitrator remains. The person
40.6remaining after the striking procedure must be the arbitrator. If the parties are unable to
40.7agree on who shall strike the first name, the question must be decided by a flip of a coin.
40.8The teacher and the school board must share equally the costs and fees of the arbitrator.
40.9(c) (d) The arbitrator shall determine, by a preponderance of the evidence, whether
40.10the grounds for termination or discharge specified in subdivision 9 or 13 exist to support
40.11the proposed termination or discharge. A lesser penalty than termination or discharge may
40.12be imposed by the arbitrator only to the extent that either party proposes such both parties
40.13agree to a lesser penalty in the proceeding. In making the determination, the arbitration
40.14proceeding is governed by sections 572B.15 to 572B.28 and by the collective bargaining
40.15agreement applicable to the teacher.
40.16(d) (e) An arbitration hearing conducted under this subdivision is a meeting for
40.17preliminary consideration of allegations or charges within the meaning of section 13D.05,
40.18subdivision 3 , paragraph (a), and must be closed, unless the teacher requests it to be open.
40.19(e) (f) The arbitrator's award is final and binding on the parties, subject to sections
40.20572B.18 to 572B.28.

40.21    Sec. 14. Minnesota Statutes 2010, section 122A.40, subdivision 16, is amended to read:
40.22    Subd. 16. Decision. After the hearing or arbitration, the board must issue a written
40.23decision and order. If the board orders termination of a continuing contract or discharge of
40.24a teacher, and its decision must include findings of fact based upon competent evidence in
40.25the record and must be served on the teacher, accompanied by an order of termination or
40.26discharge, prior to April 1 in the case of a contract termination for grounds specified in
40.27subdivision 9, prior to July 1 for grounds specified in subdivision 10 or 11, or within ten
40.28calendar days after conclusion of the hearing in the case of a discharge or receipt of an
40.29arbitrator's decision. If the decision of the board or of a reviewing court is favorable to the
40.30teacher, the proceedings must be dismissed and the decision entered in the board minutes,
40.31and all references to such the proceedings must be excluded from the teacher's record file.

40.32    Sec. 15. Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:
40.33    Subd. 2. Probationary period; discharge or demotion. (a) All teachers in
40.34the public schools in cities of the first class during the first three years of consecutive
41.1employment shall be deemed to be in a probationary period of employment during which
41.2period any annual contract with any teacher may, or may not, be renewed as the school
41.3board, after consulting with the peer review committee charged with evaluating the
41.4probationary teachers under subdivision 3, shall see fit. The school site management team
41.5or the school board if there is no school site management team, shall adopt a plan for a
41.6written evaluation of teachers during the probationary period according to subdivision
41.73 that is consistent with section 122A.411. Evaluation by the peer review committee
41.8charged with evaluating of probationary teachers under subdivision 3 shall occur at least
41.9three times each year for a teacher performing services on 120 or more school days, at
41.10least two times each year for a teacher performing services on 60 to 119 school days, and
41.11at least one time each year for a teacher performing services on fewer than 60 school
41.12days. Days devoted to parent-teacher conferences, teachers' workshops, and other staff
41.13development opportunities and days on which a teacher is absent from school shall not be
41.14included in determining the number of school days on which a teacher performs services.
41.15The school board may, during such probationary period, discharge or demote a teacher
41.16for any of the causes as specified in this code. A written statement of the cause of such
41.17discharge or demotion shall be given to the teacher by the school board at least 30 days
41.18before such removal or demotion shall become effective, and the teacher so notified shall
41.19have no right of appeal therefrom.
41.20(b) A probationary teacher whose first three years of consecutive employment are
41.21interrupted for active military service and who promptly resumes teaching consistent with
41.22federal reemployment timelines for uniformed service personnel under United States
41.23Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
41.24for purposes of paragraph (a).
41.25(c) A probationary teacher must complete at least 60 days of teaching service each
41.26year during the probationary period. Days devoted to parent-teacher conferences, teachers'
41.27workshops, and other staff development opportunities and days on which a teacher is
41.28absent from school do not count as days of teaching service under this paragraph.
41.29(d) A district must decide whether to issue a renewable five-year contract to a
41.30classroom teacher at the end of the teacher's probationary period based on:
41.31(1) the teacher's appraisal results and performance effectiveness rating under section
41.32122A.411; and
41.33(2) other locally selected criteria aligned to instructional practices in teaching and
41.34learning.
41.35EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
41.36later.

42.1    Sec. 16. Minnesota Statutes 2010, section 122A.41, is amended by adding a
42.2subdivision to read:
42.3    Subd. 2a. Qualified economic offer. (a) Notwithstanding any law to the contrary,
42.4if a school board offers teachers a biennial contract that includes a percentage increase
42.5in total compensation at least equal to the district's biennial percentage increase in
42.6basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the
42.7most recent estimate of district basic revenue for the biennium that corresponds to the
42.8prospective contract term to (2) district basic revenue for the previous biennium; teachers
42.9may not strike for any issue relating to total compensation for the years covered by that
42.10contract or submit any total compensation issue to interest arbitration under section
42.11179A.16. District fund balances or other revenue sources or allocations are not to be
42.12included in any calculation of compensation under this subdivision.
42.13(b) If a school board and teachers do not agree on the allocation of the total
42.14compensation offered by the board under paragraph (a) by September 1 of an
42.15even-numbered calendar year, the allocation of total compensation among teachers shall
42.16be as follows:
42.17(1) existing employee benefits must continue at the same percentage of the total
42.18compensation and in the same manner as provided in the teachers' immediately preceding
42.19employment contract; and
42.20(2) based on the percentage increase in the general education formula allowance
42.21for the biennium for which the contract is in effect, any remaining percentage of the total
42.22compensation for the contract period being negotiated, after subtracting the value of
42.23clause (1), is for increases in teacher salary based on first, alternative teacher pay plans
42.24under section 122A.414; second, the number of years of service; and third, promotion
42.25and advanced education.
42.26(c) For the purposes of this subdivision, the following terms have the meanings
42.27given them.
42.28"Teachers" means classroom teachers licensed under section 122A.18. At a school
42.29board's election, teachers also means school administrators licensed under section
42.30122A.14, subdivision 1. A school board that elects to offer school administrators an
42.31employment contract under this subdivision must make the offer consistent with section
42.32179A.20 and the provisions of this subdivision. A school board, at its discretion, also
42.33may elect to offer any of its nonlicensed employees an employment contract under the
42.34terms of this subdivision.
42.35"Total compensation" means the sum of the following cost components: (i) a school
42.36district's total salary schedule costs excluding alternative teacher compensation under
43.1sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
43.2teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
43.3health insurance costs paid by the school district for its teachers, excluding any district
43.4contributions to health reimbursement arrangements (HRA) or health savings accounts
43.5(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
43.6(v) total long-term disability costs paid by the school district for its teachers; (vi) total
43.7dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
43.8costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
43.9salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
43.10for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
43.11the school district for its teachers; and (xi) other miscellaneous costs identified by the
43.12school district as payment for teachers' services or benefits such as special school events,
43.13extra service duty, summer school instruction, drivers' education outside the regular school
43.14day and school year, and other direct salary payments to teachers or fringe benefit costs
43.15paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
43.16EFFECTIVE DATE.This section is effective for contracts ratified beginning
43.17July 1, 2011.

43.18    Sec. 17. Minnesota Statutes 2010, section 122A.41, subdivision 4, is amended to read:
43.19    Subd. 4. Period of service after probationary period; discharge or demotion
43.20Teacher employment. (a) A school district must use a teacher appraisal framework
43.21to make informed decisions about teacher development and performance. Teachers
43.22must participate in ongoing professional development to improve teaching and learning
43.23throughout a term of employment.
43.24(b) After the completion of such completing the initial three-year probationary
43.25period, without discharge, such teachers as are thereupon a teacher who is reemployed
43.26shall continue in service and hold their respective that position during good behavior and
43.27efficient and competent service for a renewable five-year term and must not be discharged
43.28or demoted except for cause after a hearing. The terms and conditions of a teacher's
43.29employment contract, including salary and salary increases, must be based either on the
43.30length of the school year or an extended school calendar under section 120A.415.
43.31(b) (c) A probationary teacher is deemed to have been reemployed for the ensuing
43.32school year, unless the school board in charge of such school gave such teacher notice in
43.33writing before July 1 of the termination of such employment.
44.1(c) (d) A teacher electing to have who has an employment contract based on the
44.2extended school calendar under section 120A.415 must participate in staff development
44.3training under subdivision 4a and shall receive an increased base salary.
44.4(e) At the end of every five-year term, the school board must either continue or
44.5terminate a teacher's employment based on:
44.6(1) the teacher's appraisal results and performance effectiveness rating under section
44.7122A.411; and
44.8(2) other locally selected criteria aligned to instructional practices in teaching and
44.9learning.
44.10EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
44.11later.

44.12    Sec. 18. Minnesota Statutes 2010, section 122A.41, subdivision 6, is amended to read:
44.13    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
44.14in paragraph (b), causes for the discharge or demotion of a teacher either during or after
44.15the probationary period must be:
44.16(1) immoral character, conduct unbecoming a teacher, or insubordination;
44.17(2) failure without justifiable cause to teach without first securing the written release
44.18of the school board having the care, management, or control of the school in which the
44.19teacher is employed;
44.20(3) inefficiency in teaching or in the management of a school;
44.21(4) affliction with active tuberculosis or other communicable disease must be
44.22considered as cause for removal or suspension while the teacher is suffering from such
44.23disability; or
44.24(5) discontinuance of position or lack of pupils.; or
44.25(6) the teacher is ineffective under section 122A.411 and not recommended by the
44.26district for employment under this section.
44.27For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
44.28discriminatory practice described in section 363A.13. A contract must not be discharged
44.29on the grounds specified in clause (6) unless the teacher fails to correct the deficiency
44.30after being given written notice of the specific items of complaint and 180 days within
44.31which to remedy them.
44.32(b) A probationary or continuing-contract teacher or a teacher who has a renewable
44.33five-year contract must be discharged immediately upon receipt of notice under section
44.34122A.20, subdivision 1 , paragraph (b), that the teacher's license has been revoked due to a
44.35conviction for child abuse or sexual abuse.
45.1EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
45.2later.

45.3    Sec. 19. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
45.4    Subd. 14. Services terminated by discontinuance or lack of pupils; preference
45.5given. (a) A teacher whose services are terminated on account of discontinuance of
45.6position or lack of pupils must receive first consideration for other positions in the district
45.7for which that teacher is qualified. In the event it becomes necessary to discontinue one
45.8or more positions, in making such discontinuance, teachers must be discontinued in any
45.9department in the following order:
45.10inverse order in which they were employed, unless a board and the exclusive
45.11representative of teachers in the district negotiate a plan providing otherwise.
45.12(b) Notwithstanding the provisions of clause (a), a teacher is not entitled to exercise
45.13any seniority when that exercise results in that teacher being retained by the district in
45.14a field for which the teacher holds only a provisional license, as defined by the Board
45.15of Teaching, unless that exercise of seniority results in the termination of services, on
45.16account of discontinuance of position or lack of pupils, of another teacher who also
45.17holds a provisional license in the same field. The provisions of this clause do not apply
45.18to vocational education licenses.
45.19(c) Notwithstanding the provisions of clause (a), a teacher must not be reinstated
45.20to a position in a field in which the teacher holds only a provisional license, other than a
45.21vocational education license, while another teacher who holds a nonprovisional license in
45.22the same field is available for reinstatement.
45.23 (1) teachers with an "ineffective" rating under section 122A.411 in the inverse order
45.24in which they were employed by the school district;
45.25(2) teachers with a "needs improvement" rating under section 122A.411 in the
45.26inverse order in which they were employed by the school district;
45.27(3) teachers with an "average" rating under section 122A.411 with four or more
45.28years of teaching experience in the inverse order in which they were employed by the
45.29school district;
45.30(4) teachers with an "effective" rating under section 122A.411 with fewer than four
45.31years of teaching experience in the inverse order in which they were employed by the
45.32school district; and
45.33(5) teachers with a "highly effective" rating under section 122A.411 in the inverse
45.34order in which they were employed by the school district.
46.1The superintendent may exempt from the effects of this subdivision those teachers
46.2who, based on the teachers' effectiveness rating under section 122A.411, are able to
46.3provide instruction that similarly licensed teachers cannot provide or whose subject area
46.4license meets unmet district needs for student instruction.
46.5EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
46.6later.

46.7    Sec. 20. [122A.411] TEACHER EVALUATIONS.
46.8    Subdivision 1. Evaluation structure. A teacher evaluation structure is established
46.9to provide information about teacher effectiveness for teachers under section 122A.06,
46.10subdivision 2, districts, and charter schools to use in developing and improving teacher
46.11performance and student learning. The two-part structure contains:
46.12(1) a teacher appraisal framework that identifies performance measures for
46.13determining teacher effectiveness; and
46.14(2) a mechanism for translating the performance data into a five-part teacher
46.15effectiveness rating scale.
46.16    Subd. 2. Teacher appraisal framework. (a) Each school district and charter
46.17school must create and implement a teacher appraisal framework. The framework must
46.18translate performance measures and scores under this subdivision into five performance
46.19effectiveness rating scores where "5" is the highest rating and "1" is the lowest rating. The
46.20framework must be designed to give an effectiveness rating score that has 50 percent
46.21based on assessment results under paragraph (b), (c), or (d), and 50 percent based on
46.22district criteria under paragraph (e). The department, in collaboration with the Board of
46.23Teaching, must make available to districts and charter schools appraisal frameworks and
46.24other materials from evidence-based sources to assist districts and charter schools in
46.25implementing an appraisal framework, consistent with this section.
46.26(b) If statewide assessment results are available under section 120B.35, these results
46.27are the basis for 50 percent of a teacher's total appraisal.
46.28(c) If statewide assessment results are unavailable, 50 percent of a teacher's total
46.29appraisal must consist of results from districtwide assessments of state and local standards.
46.30(d) If no districtwide assessment results are available, 50 percent of a teacher's total
46.31appraisal must consist of teacher-developed and administrator-approved assessments of
46.32state and local standards. A school administrator shall meet with teachers at least annually
46.33under this paragraph to review, modify if needed, and approve local course and grade-level
46.34expectations for student achievement and growth.
47.1(e) A charter school or a school board, in consultation with its teachers, must
47.2identify the performance measures used as a basis for the other 50 percent of a teacher's
47.3total appraisal under this subdivision. The appraisal must include data from parent
47.4surveys and at least one annual evaluation performed by a trained school administrator
47.5or an administrator's trained designee. Other performance measures may include student
47.6surveys, peer observations and review, teacher performance portfolios, video classroom
47.7observations with teacher reflection after viewing videos, measures approved as part
47.8of an educational improvement plan under section 122A.413, and other highly reliable
47.9research-based measures.
47.10    Subd. 3. Teacher performance effectiveness ratings. (a) Beginning in the
47.112012-2013 school year and consistent with subdivision 2, a school district or charter
47.12school annually must use the following scale to determine a teacher performance
47.13effectiveness rating for each teacher who teaches a subject for which statewide assessment
47.14results are available under section 120B.35:
47.15(1) a teacher is "highly effective" if the teacher's appraisal shows that the teacher's
47.16students, on average, achieved one and one-half or more years of growth on statewide
47.17assessments and the teacher received a "5" performance rating under the district or charter
47.18school appraisal framework;
47.19(2) a teacher is "effective" if the teacher's appraisal shows that the teacher's students,
47.20on average, achieved at least one year of growth on statewide assessments and the teacher
47.21received a "4" performance rating under the district or charter school appraisal framework;
47.22(3) a teacher is "average" if the teacher's appraisal shows that the teacher's students,
47.23on average, achieved at least 0.9 years of growth on statewide student assessments and the
47.24teacher received a "3" performance rating under the district or charter school appraisal
47.25framework;
47.26(4) a teacher "needs improvement" if the teacher's appraisal shows that the teacher's
47.27students, on average, achieved between 0.5 and 0.9 years of growth on statewide
47.28assessments or the teacher received a "2" or lower performance rating under the district or
47.29charter school appraisal framework; and
47.30(5) a teacher is "ineffective" if the teacher's appraisal shows that the teacher's
47.31students, on average, achieved less than one-half year of growth on statewide assessments
47.32and the teacher received a "1" performance rating under the district or charter school
47.33appraisal framework.
47.34A teacher who does not meet both the growth and performance rating requirements
47.35in any of clauses (1) to (4) receives the next lower effectiveness rating that immediately
48.1follows the clause where the teacher met either the growth or the performance rating
48.2requirement.
48.3(b) Beginning in the 2012-2013 school year and consistent with subdivision 2, a
48.4school district or charter school annually must use a teacher performance effectiveness
48.5rating scale developed under this paragraph for each teacher who teaches a subject for
48.6which no statewide assessment data exist. The district or charter school, in consultation
48.7with its teachers, must define low, medium, and high academic growth and progress toward
48.8grade-level proficiency for purposes of establishing teacher performance effectiveness
48.9ratings so that a teacher is rated:
48.10(1) "highly effective" if the teacher receives a "5" performance rating under the
48.11district or charter school appraisal framework;
48.12(2) "effective" if the teacher receives a "4" performance rating under the district or
48.13charter school appraisal framework;
48.14(3) "average" if the teacher receives a "3" performance rating under the district or
48.15charter school appraisal framework;
48.16(4) "needs improvement" if the teacher receives a "2" performance rating under the
48.17district or charter school appraisal framework; and
48.18(5) "ineffective" if the teacher receives a "1" performance rating under the district or
48.19charter school appraisal framework.
48.20(c) A teacher, other than a probationary teacher, who receives a highly effective or
48.21effective performance rating under this subdivision is not subject to an appraisal under
48.22subdivision 2, paragraph (e), in the next year after the teacher receives that rating.
48.23    Subd. 4. Data gathering and analysis. (a) Beginning in the 2012-2013 school
48.24year, the department, in consultation with the Board of Teaching, shall assist a school
48.25district or charter school in collecting and aggregating student data needed to implement
48.26subdivisions 2 and 3. If the school district or charter school and the department agree that
48.27an ongoing need exists for department assistance, the district or charter school and the
48.28department shall enter into a data-sharing agreement. Any data on individual students or
48.29teachers received, collected, or created that are used to generate summary data under this
48.30section are nonpublic data under chapter 13.
48.31(b) Beginning in 2014, the department annually by June 30 shall submit summary
48.32data on teachers' effectiveness under paragraph (a) to the Minnesota teacher preparation
48.33program or institution that prepared the teachers covered in that year's district and charter
48.34school reports to the department.
49.1    Subd. 5. Reports. (a) Beginning in the 2012-2013 school year, each school district
49.2and charter school annually shall report to the department by July 15 the following
49.3information about the school year just completed:
49.4(1) each teacher's performance effectiveness rating determined under both
49.5subdivision 2, paragraph (b), (c), or (d), and subdivision 3, paragraph (a) or (b);
49.6(2) each teacher's professional preparation program;
49.7(3) its appraisal framework; and
49.8(4) its graduation rate.
49.9(b) Beginning in 2014, the department annually by February 15 shall submit a
49.10report to the committees of the legislature with primary jurisdiction over kindergarten
49.11through grade 12 education policy and finance that analyzes and evaluates summary data
49.12generated under paragraph (a) to determine the effectiveness of teacher appraisal systems
49.13in improving teaching and learning.
49.14EFFECTIVE DATE.This section is effective the day following final enactment.

49.15    Sec. 21. [122A.4111] ADVISORY TASK FORCE ON IMPLEMENTING A
49.16TEACHER EVALUATION STRUCTURE.
49.17(a) Consistent with section 122A.411 and related sections, the commissioner shall,
49.18by July 15, 2011, convene a 19-member advisory task force to recommend how to fully
49.19and effectively implement the state's teacher appraisal framework and teacher evaluation
49.20process. Task force members shall include:
49.21(1) one representative appointed by the Minnesota Chamber of Commerce;
49.22(2) one representative appointed by the Minnesota Business Partnership;
49.23(3) one representative appointed by the Minnesota Assessment Group;
49.24(4) one representative appointed by the Minnesota Association of School
49.25Administrators;
49.26(5) one representative appointed by the Minnesota School Boards Association;
49.27(6) one representative representing the Minnesota Elementary and Secondary School
49.28Principals Associations, appointed jointly by those two organizations;
49.29(7) two representatives from Education Minnesota, one of whom must be a currently
49.30licensed classroom teacher teaching in a first class city school district, appointed by
49.31Education Minnesota;
49.32(8) two parents of students currently enrolled in Minnesota public schools, one of
49.33whom must be a parent of color, appointed by the Minnesota Parent Teacher Organization;
49.34and
50.1(9) three appointments each by the speaker of the house, the senate Subcommittee
50.2on Committees of the Committee on Rules and Administration, and the commissioner of
50.3qualified and recognized experts in teacher evaluation and assessment who alone shall
50.4serve six-year terms.
50.5(b) The commissioner or the commissioner's designee shall serve as a nonvoting
50.6member of the task force and shall provide technical assistance to the task force upon
50.7request. The terms, compensation, and removal of advisory task force members shall be as
50.8provided in section 15.059, except that the task force shall continue until it is specifically
50.9terminated by the legislature and operate as otherwise specified under this section. The
50.10commissioner may reimburse task force members from the department's current operating
50.11budget but may not compensate task force members for task force activities. The task
50.12force annually must:
50.13(1) recommend changes needed to more effectively implement the teacher appraisal
50.14framework and teacher evaluation process under section 122A.411, including statutory
50.15changes needed to accomplish its recommendations; and
50.16(2) report its recommendations to the education policy and finance committees of
50.17the legislature by February 15.
50.18EFFECTIVE DATE.This section is effective the day following final enactment.

50.19    Sec. 22. Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to
50.20read:
50.21    Subd. 1a. Transitional planning year. (a) To be eligible to participate in an
50.22alternative teacher professional pay system, a school district, intermediate school district,
50.23or site, or charter school must, at least one school year before it expects to fully implement
50.24an alternative pay system, must:
50.25(1) submit to the department a letter of intent executed by the school district or
50.26intermediate school district and the exclusive representative of the teachers to complete
50.27a plan preparing for full implementation, begin to develop an alternative teacher pay
50.28plan, consistent with subdivision 2, that may include, among other activities, training to
50.29evaluate teacher performance, a restructured school day to develop integrated ongoing
50.30site-based professional development activities, release time to develop an alternative pay
50.31system agreement, and teacher and staff training on using multiple data sources; and.
50.32(2) agree to use up to two percent of basic revenue for staff development purposes,
50.33consistent with sections 122A.60 and 122A.61, to develop the alternative teacher
50.34professional pay system agreement under this section.
51.1(b) To be eligible to participate in an alternative teacher professional pay system, a
51.2charter school, at least one school year before it expects to fully implement an alternative
51.3pay system, must:
51.4(1) submit to the department a letter of intent executed by the charter school and the
51.5charter school board of directors;
51.6(2) submit the record of a formal vote by the teachers employed at the charter
51.7school indicating at least 70 percent of all teachers agree to implement the alternative
51.8pay system; and
51.9(3) agree to use up to two percent of basic revenue for staff development purposes,
51.10consistent with sections 122A.60 and 122A.61, to develop the alternative teacher
51.11professional pay system.
51.12(c) The commissioner may waive the planning year if the commissioner determines,
51.13based on the criteria under subdivision 2, that the school district, intermediate school
51.14district, site or charter school is ready to fully implement an alternative pay system.
51.15EFFECTIVE DATE.This section is effective the day following final enactment.

51.16    Sec. 23. Minnesota Statutes 2010, section 122A.414, subdivision 2, is amended to read:
51.17    Subd. 2. Alternative teacher professional pay system. (a) To participate in this
51.18program, a school district, intermediate school district, school site, or charter school must
51.19have an educational improvement plan under section 122A.413 and an alternative teacher
51.20professional pay system agreement under paragraph (b). A charter school participant also
51.21must comply with subdivision 2a.
51.22(b) The alternative teacher professional pay system agreement must:
51.23(1) describe how teachers can achieve career advancement and additional
51.24compensation;
51.25(2) describe how the school district, intermediate school district, school site, or
51.26charter school will provide teachers with career advancement options that allow teachers
51.27to retain primary roles in student instruction and facilitate site-focused professional
51.28development that helps other teachers improve their skills;
51.29(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
51.30paid before implementing the pay system from being reduced as a result of participating
51.31in this system, and base at least 60 percent of any compensation increase on teacher
51.32performance using:
51.33(i) schoolwide student achievement gains under section 120B.35 or locally selected
51.34standardized assessment outcomes, or both;
51.35(ii) measures of student achievement; and
52.1(iii) an objective evaluation program that includes:
52.2(A) individual teacher evaluations aligned with the educational improvement plan
52.3under section 122A.413 and the staff development plan under section 122A.60; and
52.4(B) objective evaluations using multiple criteria conducted by a locally selected and
52.5periodically trained evaluation team that understands teaching and learning the evaluation
52.6structure in section 122A.411;
52.7(4) provide integrated ongoing site-based professional development activities to
52.8improve instructional skills and learning that are aligned with student needs under section
52.9122A.413 , consistent with the staff development plan under section 122A.60 and led
52.10during the school day by trained teacher leaders such as master or mentor teachers;
52.11(5) allow any teacher in a participating school district, intermediate school district,
52.12school site, or charter school that implements an alternative pay system to participate in
52.13that system without any quota or other limit; and
52.14(6) encourage collaboration rather than competition among teachers.
52.15EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
52.16later.

52.17    Sec. 24. Minnesota Statutes 2010, section 122A.414, subdivision 2a, is amended to
52.18read:
52.19    Subd. 2a. Charter school applications. For charter school applications, the board
52.20of directors of a charter school that satisfies the conditions under subdivisions 2 and 2b
52.21must submit to the commissioner an application that contains:
52.22(1) an agreement to implement an alternative teacher professional pay system under
52.23this section; and
52.24(2) a resolution by the charter school board of directors adopting the agreement; and.
52.25(3) the record of a formal vote by the teachers employed at the charter school
52.26indicating that at least 70 percent of all teachers agree to implement the alternative
52.27teacher professional pay system, unless the charter school submits an alternative teacher
52.28professional pay system agreement under this section before the first year of operation.
52.29Alternative compensation revenue for a qualifying charter school must be calculated
52.30under section 126C.10, subdivision 34, paragraphs (a) and (b).
52.31EFFECTIVE DATE.This section is effective June 1, 2013, and applies to any new
52.32plan that the commissioner approves or any approved plan that is modified after that date.

53.1    Sec. 25. Minnesota Statutes 2010, section 122A.414, subdivision 2b, is amended to
53.2read:
53.3    Subd. 2b. Approval process. (a) Consistent with the requirements of this section
53.4and sections 122A.413 and 122A.415, the department must prepare and transmit to
53.5interested school districts, intermediate school districts, school sites, and charter schools
53.6a standard form for applying to participate in the alternative teacher professional pay
53.7system. The commissioner annually must establish at least three dates as deadlines by
53.8which interested applicants must submit an application to the commissioner under this
53.9section. An interested school district, intermediate school district, school site, or charter
53.10school must submit to the commissioner a completed application executed by the district
53.11superintendent and the exclusive bargaining representative of the teachers if the applicant
53.12is a school district, intermediate school district, or school site, or executed by the charter
53.13school board of directors if the applicant is a charter school. The application must include
53.14the proposed alternative teacher professional pay system agreement under subdivision 2.
53.15The department must review a completed application within 30 business days of the most
53.16recent application deadline and recommend to the commissioner whether to approve or
53.17disapprove the application. The commissioner must approve applications on a first-come,
53.18first-served basis. The applicant's alternative teacher professional pay system agreement
53.19must be legally binding on the applicant and the collective bargaining representative before
53.20the applicant receives alternative compensation revenue. The commissioner must approve
53.21or disapprove an application based on the requirements under subdivisions 2 and 2a.
53.22(b) If the commissioner disapproves an application, the commissioner must
53.23give the applicant timely notice of the specific reasons in detail for disapproving the
53.24application. The applicant may revise and resubmit its application and related documents
53.25to the commissioner within 30 business days of receiving notice of the commissioner's
53.26disapproval and the commissioner must approve or disapprove the revised application,
53.27consistent with this subdivision. Applications that are revised and then approved are
53.28considered submitted on the date the applicant initially submitted the application.
53.29EFFECTIVE DATE.This section is effective the day following final enactment.

53.30    Sec. 26. Minnesota Statutes 2010, section 122A.60, subdivision 1a, is amended to read:
53.31    Subd. 1a. Effective staff development activities. (a) A school district must have
53.32staff development activities must: that are aligned with district and school site staff
53.33development plans, based on student achievement and growth data, and focused on
53.34student learning goals.
54.1(1) focus on the school classroom and research-based strategies that improve student
54.2learning;
54.3(2) provide opportunities for teachers to practice and improve their instructional
54.4skills over time;
54.5(3) provide opportunities for teachers to use student data as part of their daily work
54.6to increase student achievement;
54.7(4) enhance teacher content knowledge and instructional skills;
54.8(5) align with state and local academic standards;
54.9(6) provide opportunities to build professional relationships, foster collaboration
54.10among principals and staff who provide instruction, and provide opportunities for
54.11teacher-to-teacher mentoring; and
54.12(7) align with the plan of the district or site for an alternative teacher professional
54.13pay system.
54.14Staff development activities may include curriculum development and curriculum training
54.15programs, and activities that provide teachers and other members of site-based teams
54.16training to enhance team performance. The school district also may implement other
54.17staff development activities required by law and activities associated with professional
54.18teacher compensation models.
54.19(b) Release time provided for teachers to supervise students on field trips and school
54.20activities, or independent tasks not associated with enhancing the teacher's knowledge
54.21and instructional skills, such as preparing report cards, calculating grades, or organizing
54.22classroom materials, may not be counted as staff development time that is financed with
54.23staff development reserved revenue under section 122A.61.
54.24EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
54.25later.

54.26    Sec. 27. [122A.73] SCHOOL ADMINISTRATOR DEVELOPMENT.
54.27A school board and the school administrators in a district must collaboratively
54.28establish a professional development model for school administrators that uses the district's
54.29professional development resources and plans, including those under sections 122A.414, if
54.30applicable, and 122A.60. The model must be designed to improve teaching and learning by
54.31supporting administrators in shaping the school's professional environment and developing
54.32teacher quality, performance, and effectiveness. The model must, at a minimum:
54.33(1) support and improve administrators' instructional leadership and organizational,
54.34management, and professional development; and strengthen their capacity in instruction
54.35and supervision and in teacher evaluation and development under section 122A.411;
55.1(2) provide professional development that emphasizes improved teaching and
55.2learning, curriculum and instruction, student learning, and a collaborative professional
55.3culture;
55.4(3) make appropriate recommendations for administrators to participate in
55.5development opportunities, including the Principals' Leadership Institute under section
55.6122A.74 and other statewide development programs that support administrators'
55.7leadership behaviors and practices, rigorous curriculum, school performance, and high
55.8quality instruction; and
55.9(4) use formative and summative assessments, on-the-job evaluations, surveys, and
55.10longitudinal data on student academic growth as evaluation components; and provide
55.11professional development opportunities targeted at identifying systemic strengths and
55.12weaknesses and administrators' strengths and weaknesses in exercising leadership in
55.13pursuit of school success.
55.14The provisions of this section are intended to provide districts with sufficient
55.15flexibility to accommodate district needs and goals, consistent with section 122A.411.
55.16EFFECTIVE DATE.This section is effective July 1, 2012.

55.17    Sec. 28. Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to read:
55.18    Subd. 15. Annuity contract; payroll allocation. (a) At the request of an employee
55.19and as part of the employee's compensation arrangement, the board may purchase an
55.20individual annuity contract for an employee for retirement or other purposes and may
55.21make payroll allocations in accordance with such arrangement for the purpose of paying
55.22the entire premium due and to become due under such contract. The allocation must be
55.23made in a manner which will qualify the annuity premiums, or a portion thereof, for
55.24the benefit afforded under section 403(b) of the current Federal Internal Revenue Code
55.25or any equivalent provision of subsequent federal income tax law. The employee shall
55.26own such contract and the employee's rights under the contract shall be nonforfeitable
55.27except for failure to pay premiums. Section 122A.40 shall not be applicable hereto and the
55.28board shall have no liability thereunder because of its purchase of any individual annuity
55.29contracts. This statute shall be applied in a nondiscriminatory manner to employees of
55.30the school district. The school board of a school district shall determine the identity and
55.31number of the available vendors under federal Internal Revenue Code, section 403(b) is a
55.32term and condition of employment under section 179A.03.
55.33    (b) When considering vendors under paragraph (a), the school district and the
55.34exclusive representative of the employees shall consider all of the following:
56.1    (1) the vendor's ability to comply with all employer requirements imposed by
56.2section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments,
56.3other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the
56.4Internal Revenue Code, and any regulation adopted in relation to these laws;
56.5    (2) the vendor's experience in providing 403(b) plans;
56.6    (3) the vendor's potential effectiveness in providing client services attendant to
56.7its plan and in relation to cost;
56.8    (4) the nature and extent of rights and benefits offered under the vendor's plan;
56.9    (5) the suitability of the rights and benefits offered under the vendor's plan;
56.10    (6) the vendor's ability to provide the rights and benefits offered under its plan; and
56.11    (7) the vendor's financial stability.
56.12EFFECTIVE DATE.This section is effective July 1, 2011.

56.13    Sec. 29. Minnesota Statutes 2010, section 123B.09, subdivision 8, is amended to read:
56.14    Subd. 8. Duties. The board must superintend and manage the schools of the
56.15district; adopt rules for their organization, government, and instruction; keep registers; and
56.16prescribe textbooks and courses of study. The board may enter into an agreement with a
56.17postsecondary institution for secondary or postsecondary nonsectarian courses to be taught
56.18at a secondary school, nonsectarian postsecondary institution, or another location.
56.19Consistent with section 122A.40, subdivision 10, or 122A.41, subdivision 14, as
56.20applicable, the board must not enter into an agreement that limits a district superintendent's
56.21ability to assign and reassign teachers to the schools in which the teachers will teach to
56.22best meet student and school needs as determined by the superintendent.

56.23    Sec. 30. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
56.24    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
56.25school must employ a superintendent who shall be an ex officio nonvoting member of the
56.26school board. The authority for selection and employment of a superintendent must be
56.27vested in the board in all cases. An individual employed by a board as a superintendent
56.28shall have an initial employment contract for a period of time no longer than three years
56.29from the date of employment. Any subsequent employment contract must not exceed a
56.30period of three years. A board, at its discretion, may or may not renew an employment
56.31contract. A board must not, by action or inaction, extend the duration of an existing
56.32employment contract. Beginning 365 days prior to the expiration date of an existing
56.33employment contract, a board may negotiate and enter into a subsequent employment
56.34contract to take effect upon the expiration of the existing contract. A subsequent contract
57.1must be contingent upon the employee completing the terms of an existing contract. If a
57.2contract between a board and a superintendent is terminated prior to the date specified in
57.3the contract, the board may not enter into another superintendent contract with that same
57.4individual that has a term that extends beyond the date specified in the terminated contract.
57.5A board may terminate a superintendent during the term of an employment contract for any
57.6of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
57.7not rely upon an employment contract with a board to assert any other continuing contract
57.8rights in the position of superintendent under section 122A.40. Notwithstanding the
57.9provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
57.10to the contrary, no individual shall have a right to employment as a superintendent based
57.11on order of employment in any district. If two or more districts enter into an agreement for
57.12the purchase or sharing of the services of a superintendent, the contracting districts have
57.13the absolute right to select one of the individuals employed to serve as superintendent
57.14in one of the contracting districts and no individual has a right to employment as the
57.15superintendent to provide all or part of the services based on order of employment in a
57.16contracting district. The superintendent of a district shall perform the following:
57.17    (1) visit and supervise the schools in the district, report and make recommendations
57.18about their condition when advisable or on request by the board;
57.19    (2) recommend to the board employment and dismissal of teachers;
57.20    (3) annually evaluate each school principal assigned responsibility for supervising a
57.21school building within the district, consistent with section 122A.73;
57.22(4) superintend school grading practices and examinations for promotions;
57.23    (4) (5) make reports required by the commissioner; and
57.24    (5) (6) perform other duties prescribed by the board.
57.25EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
57.26later.

57.27    Sec. 31. Minnesota Statutes 2010, section 123B.88, is amended by adding a
57.28subdivision to read:
57.29    Subd. 1a. Full-service school zones. The board may establish a full-service
57.30school zone by adopting a written resolution and may provide transportation for students
57.31attending a school in that full-service school zone. A full-service school zone may be
57.32established for a school that is located in an area with higher than average crime or other
57.33social and economic challenges and that provides education, health or human services, or
57.34other parental support in collaboration with a city, county, state, or nonprofit agency. The
58.1pupil transportation must be intended to stabilize enrollment and reduce mobility at the
58.2school located in a full-service school zone.
58.3EFFECTIVE DATE.This section is effective July 1, 2011.

58.4    Sec. 32. Minnesota Statutes 2010, section 123B.92, subdivision 1, is amended to read:
58.5    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
58.6terms defined in this subdivision have the meanings given to them.
58.7    (a) "Actual expenditure per pupil transported in the regular and excess transportation
58.8categories" means the quotient obtained by dividing:
58.9    (1) the sum of:
58.10    (i) all expenditures for transportation in the regular category, as defined in paragraph
58.11(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
58.12    (ii) an amount equal to one year's depreciation on the district's school bus fleet
58.13and mobile units computed on a straight line basis at the rate of 15 percent per year for
58.14districts operating a program under section 124D.128 for grades 1 to 12 for all students in
58.15the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
58.16    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
58.17defined in section 169.011, subdivision 71, which must be used a majority of the time for
58.18pupil transportation purposes, computed on a straight line basis at the rate of 20 percent
58.19per year of the cost of the type three school buses by:
58.20    (2) the number of pupils eligible for transportation in the regular category, as defined
58.21in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
58.22    (b) "Transportation category" means a category of transportation service provided to
58.23pupils as follows:
58.24    (1) Regular transportation is:
58.25    (i) transportation to and from school during the regular school year for resident
58.26elementary pupils residing one mile or more from the public or nonpublic school they
58.27attend, and resident secondary pupils residing two miles or more from the public
58.28or nonpublic school they attend, excluding desegregation transportation and noon
58.29kindergarten transportation; but with respect to transportation of pupils to and from
58.30nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
58.31    (ii) transportation of resident pupils to and from language immersion programs;
58.32    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
58.33the pupil's home and the child care provider and between the provider and the school, if
58.34the home and provider are within the attendance area of the school;
59.1    (iv) transportation to and from or board and lodging in another district, of resident
59.2pupils of a district without a secondary school; and
59.3    (v) transportation to and from school during the regular school year required under
59.4subdivision 3 for nonresident elementary pupils when the distance from the attendance
59.5area border to the public school is one mile or more, and for nonresident secondary pupils
59.6when the distance from the attendance area border to the public school is two miles or
59.7more, excluding desegregation transportation and noon kindergarten transportation.
59.8    For the purposes of this paragraph, a district may designate a licensed day care
59.9facility, school day care facility, respite care facility, the residence of a relative, or the
59.10residence of a person or other location chosen by the pupil's parent or guardian, or an
59.11after-school program for children operated by a political subdivision of the state, as the
59.12home of a pupil for part or all of the day, if requested by the pupil's parent or guardian,
59.13and if that facility, residence, or program is within the attendance area of the school the
59.14pupil attends.
59.15    (2) Excess transportation is:
59.16    (i) transportation to and from school during the regular school year for resident
59.17secondary pupils residing at least one mile but less than two miles from the public or
59.18nonpublic school they attend, and transportation to and from school for resident pupils
59.19residing less than one mile from school who are transported because of full-service school
59.20zones, extraordinary traffic, drug, or crime hazards; and
59.21    (ii) transportation to and from school during the regular school year required under
59.22subdivision 3 for nonresident secondary pupils when the distance from the attendance area
59.23border to the school is at least one mile but less than two miles from the public school
59.24they attend, and for nonresident pupils when the distance from the attendance area border
59.25to the school is less than one mile from the school and who are transported because of
59.26full-service school zones, extraordinary traffic, drug, or crime hazards.
59.27    (3) Desegregation transportation is transportation within and outside of the district
59.28during the regular school year of pupils to and from schools located outside their normal
59.29attendance areas under a plan for desegregation mandated by the commissioner or under
59.30court order.
59.31    (4) "Transportation services for pupils with disabilities" is:
59.32    (i) transportation of pupils with disabilities who cannot be transported on a regular
59.33school bus between home or a respite care facility and school;
59.34    (ii) necessary transportation of pupils with disabilities from home or from school to
59.35other buildings, including centers such as developmental achievement centers, hospitals,
59.36and treatment centers where special instruction or services required by sections 125A.03
60.1to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
60.2where services are provided;
60.3    (iii) necessary transportation for resident pupils with disabilities required by sections
60.4125A.12 , and 125A.26 to 125A.48;
60.5    (iv) board and lodging for pupils with disabilities in a district maintaining special
60.6classes;
60.7    (v) transportation from one educational facility to another within the district for
60.8resident pupils enrolled on a shared-time basis in educational programs, and necessary
60.9transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
60.10with disabilities who are provided special instruction and services on a shared-time basis
60.11or if resident pupils are not transported, the costs of necessary travel between public
60.12and private schools or neutral instructional sites by essential personnel employed by the
60.13district's program for children with a disability;
60.14    (vi) transportation for resident pupils with disabilities to and from board and lodging
60.15facilities when the pupil is boarded and lodged for educational purposes; and
60.16(vii) services described in clauses (i) to (vi), when provided for pupils with
60.17disabilities in conjunction with a summer instructional program that relates to the pupil's
60.18individual education plan or in conjunction with a learning year program established
60.19under section 124D.128.
60.20    For purposes of computing special education initial aid under section 125A.76,
60.21subdivision 2 , the cost of providing transportation for children with disabilities includes
60.22(A) the additional cost of transporting a homeless student from a temporary nonshelter
60.23home in another district to the school of origin, or a formerly homeless student from a
60.24permanent home in another district to the school of origin but only through the end of the
60.25academic year; and (B) depreciation on district-owned school buses purchased after July 1,
60.262005, and used primarily for transportation of pupils with disabilities, calculated according
60.27to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
60.28transportation category must be excluded in calculating the actual expenditure per pupil
60.29transported in the regular and excess transportation categories according to paragraph (a).
60.30    (5) "Nonpublic nonregular transportation" is:
60.31    (i) transportation from one educational facility to another within the district for
60.32resident pupils enrolled on a shared-time basis in educational programs, excluding
60.33transportation for nonpublic pupils with disabilities under clause (4);
60.34    (ii) transportation within district boundaries between a nonpublic school and a
60.35public school or a neutral site for nonpublic school pupils who are provided pupil support
60.36services pursuant to section 123B.44; and
61.1    (iii) late transportation home from school or between schools within a district for
61.2nonpublic school pupils involved in after-school activities.
61.3    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
61.4educational programs and services, including diagnostic testing, guidance and counseling
61.5services, and health services. A mobile unit located off nonpublic school premises is a
61.6neutral site as defined in section 123B.41, subdivision 13.
61.7EFFECTIVE DATE.This section is effective July 1, 2011.

61.8    Sec. 33. [124D.031] ENROLLMENT OPTIONS FOR STUDENTS AT
61.9LOW-PERFORMING PUBLIC SCHOOLS.
61.10    Subdivision 1. Student enrollment options. (a) A student who attends a persistently
61.11low-performing school located in a city of the first class for at least one school year and
61.12whose family income is equal to or less than 175 percent of the federal poverty level is
61.13eligible to enroll in a nonpublic school under this section or in a nonresident district
61.14school or program under section 124D.03.
61.15(b) For the purposes of this section, "persistently low-performing school" means a
61.16public school located in a city of the first class that has student performance levels for at
61.17least three consecutive school years immediately preceding the school year in which a
61.18student enrolls in a nonpublic school under this section or in a nonresident district school
61.19or program under section 124D.03, as follows:
61.20(1) the combined total percentage of students scoring at the "does not meet
61.21standards" level for either the reading or mathematics Minnesota Comprehensive
61.22Assessment exceeds 40 percent for all grades tested;
61.23(2) the combined percentage of students demonstrating "proficient, low growth,"
61.24"not proficient, low growth," and "not proficient, medium growth" for either the reading or
61.25mathematics Minnesota Comprehensive Assessment exceeds 50 percent; or
61.26(3) 50 percent or more students in secondary school do not receive a passing
61.27score when first tested on the graduation required assessment for diploma in reading,
61.28mathematics, or writing.
61.29(c) For purposes of this section, a city of the first class must have met the definition
61.30of a city of the first class under section 410.01 on December 28, 2010.
61.31    Subd. 2. Eligible nonpublic schools. The nonpublic school must administer the
61.32applicable Minnesota Comprehensive Assessments in writing, reading, and mathematics
61.33under section 120B.30 to its students enrolled under this section.
61.34    Subd. 3. Tuition funding for students transferring to nonpublic schools. If a
61.35student transfers to a nonpublic school under this section, and upon receiving proof that
62.1the student is enrolled in the nonpublic school, the commissioner shall make payments
62.2to the student's parent or guardian in an amount equal to the lesser of the state average
62.3general education revenue per pupil unit, calculated without transportation sparsity
62.4revenue or the nonpublic school's operating and debt service cost per pupil that is related
62.5to educational programming, as determined by the commissioner. The commissioner
62.6shall send the check to the nonpublic school and the parent or guardian shall restrictively
62.7endorse the check for the nonpublic school's use.
62.8The scholarship payments must be made by the commissioner to the recipients in
62.9three equal payments on September 15, January 15, and July 1.
62.10    Subd. 4. Student transportation. A resident school district must provide for
62.11transportation within the district's borders for a student who enrolls in a nonpublic school
62.12under this section and shall receive transportation funding equal to the actual costs in
62.13the current school year for those transportation services according to the schedule of
62.14payments in subdivision 3.
62.15    Subd. 5. Funding for student testing. The state shall pay the nonpublic school the
62.16costs of administering applicable tests under section 120B.30.
62.17    Subd. 6. List of nonpublic schools. The commissioner shall publish a list of
62.18participating nonpublic schools.
62.19EFFECTIVE DATE.This section is effective the day following final enactment
62.20and applies to the 2011-2012 school year and later.

62.21    Sec. 34. Minnesota Statutes 2010, section 124D.09, subdivision 5, is amended to read:
62.22    Subd. 5. Authorization; notification. Notwithstanding any other law to the
62.23contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled
62.24tribal contract or grant school eligible for aid under section 124D.83, except a foreign
62.25exchange pupil enrolled in a district under a cultural exchange program, may apply to an
62.26eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by
62.27that postsecondary institution. Notwithstanding any other law to the contrary, a 9th or 10th
62.28grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
62.29school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
62.30a district under a cultural exchange program, may apply to enroll in nonsectarian courses
62.31offered under subdivision 10, if after all 11th and 12th grade students have applied for a
62.32course, additional students are necessary to offer the course. If an institution accepts a
62.33secondary pupil for enrollment under this section, the institution shall send written notice
62.34to the pupil, the pupil's school or school district, and the commissioner within ten days of
62.35acceptance. The notice must indicate the course and hours of enrollment of that pupil. If
63.1the pupil enrolls in a course for postsecondary credit, the institution must notify the pupil
63.2about payment in the customary manner used by the institution.

63.3    Sec. 35. Minnesota Statutes 2010, section 124D.09, subdivision 7, is amended to read:
63.4    Subd. 7. Dissemination of information; notification of intent to enroll. By March
63.51 of each year, a district must provide general information about the program to all pupils
63.6in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district
63.7by March 30 of each year of the pupil's intent to enroll in postsecondary courses during
63.8the following school year. A pupil is not bound by notifying or not notifying the district
63.9by March 30.

63.10    Sec. 36. Minnesota Statutes 2010, section 124D.09, subdivision 8, is amended to read:
63.11    Subd. 8. Limit on participation. A pupil who first enrolls in grade 9 may not
63.12enroll in postsecondary courses under this section for secondary credit for more than
63.13the equivalent of four academic years. A pupil who first enrolls in grade 10 may not
63.14enroll in postsecondary courses under this section for secondary credit for more than
63.15the equivalent of three academic years. A pupil who first enrolls in grade 11 may not
63.16enroll in postsecondary courses under this section for secondary credit for more than the
63.17equivalent of two academic years. A pupil who first enrolls in grade 12 may not enroll in
63.18postsecondary courses under this section for secondary credit for more than the equivalent
63.19of one academic year. If a pupil in grade 9, 10, 11, or 12 first enrolls in a postsecondary
63.20course for secondary credit during the school year, the time of participation shall be
63.21reduced proportionately. If a pupil is in a learning year or other year-round program and
63.22begins each grade in the summer session, summer sessions shall not be counted against the
63.23time of participation. A pupil who has graduated from high school cannot participate in a
63.24program under this section. A pupil who has completed course requirements for graduation
63.25but who has not received a diploma may participate in the program under this section.

63.26    Sec. 37. Minnesota Statutes 2010, section 124D.10, subdivision 11, is amended to read:
63.27    Subd. 11. Employment and other operating matters. (a) A charter school must
63.28employ or contract with necessary teachers, as defined by section 122A.15, subdivision
63.291 , who hold valid licenses to perform the particular service for which they are employed
63.30in the school. The charter school's state aid may be reduced under section 127A.43
63.31if the school employs a teacher who is not appropriately licensed or approved by the
63.32board of teaching. The school may employ necessary employees who are not required to
63.33hold teaching licenses to perform duties other than teaching and may contract for other
64.1services. The school may discharge teachers and nonlicensed employees. The school must
64.2create and implement a teacher evaluation structure under section 122A.411 to use in
64.3developing and improving teacher performance and student learning. Teacher evaluations
64.4undertaken under this paragraph do not create additional due process rights for teachers
64.5employed or otherwise working at the school. The charter school board is subject to
64.6section 181.932. When offering employment to a prospective employee, a charter school
64.7must give that employee a written description of the terms and conditions of employment
64.8and the school's personnel policies.
64.9(b) A person, without holding a valid administrator's license, may perform
64.10administrative, supervisory, or instructional leadership duties. The board of directors shall
64.11establish qualifications for persons that hold administrative, supervisory, or instructional
64.12leadership roles. The qualifications shall include at least the following areas: instruction
64.13and assessment; human resource and personnel management; financial management;
64.14legal and compliance management; effective communication; and board, authorizer, and
64.15community relationships. The board of directors shall use those qualifications as the basis
64.16for job descriptions, hiring, and performance evaluations of those who hold administrative,
64.17supervisory, or instructional leadership roles. The board of directors and an individual
64.18who does not hold a valid administrative license and who serves in an administrative,
64.19supervisory, or instructional leadership position shall develop a professional development
64.20plan. Documentation of the implementation of the professional development plan of these
64.21persons shall be included in the school's annual report.
64.22(c) The board of directors also shall decide matters related to the operation of the
64.23school, including budgeting, curriculum and operating procedures.

64.24    Sec. 38. Minnesota Statutes 2010, section 124D.11, subdivision 4, is amended to read:
64.25    Subd. 4. Building lease aid. When a charter school finds it economically
64.26advantageous to rent or lease a building or land for any instructional purposes and it
64.27determines that the total operating capital revenue under section 126C.10, subdivision 13,
64.28is insufficient for this purpose, it may apply to the commissioner for building lease aid
64.29for this purpose. The commissioner must review and either approve or deny a lease aid
64.30application using the following criteria:
64.31(1) the reasonableness of the price based on current market values;
64.32(2) the extent to which the lease conforms to applicable state laws and rules; and
64.33(3) the appropriateness of the proposed lease in the context of the space needs and
64.34financial circumstances of the charter school.
65.1A charter school must not use the building lease aid it receives for custodial, maintenance
65.2service, utility, or other operating costs. The amount of building lease aid per pupil unit
65.3served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
65.4the approved cost or (b) the product of the pupil units served for the current school year
65.5times the greater of the charter school's building lease aid per pupil unit served for fiscal
65.6year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
65.7or $1,200.
65.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
65.9and later.

65.10    Sec. 39. Minnesota Statutes 2010, section 124D.36, is amended to read:
65.11124D.36 CITATION; MINNESOTA YOUTHWORKS SERVEMINNESOTA
65.12INNOVATION ACT.
65.13Sections 124D.37 to 124D.45 shall be cited as the "Minnesota Youthworks
65.14ServeMinnesota Innovation Act."

65.15    Sec. 40. Minnesota Statutes 2010, section 124D.37, is amended to read:
65.16124D.37 PURPOSE OF MINNESOTA YOUTHWORKS SERVEMINNESOTA
65.17INNOVATION ACT.
65.18The purposes of sections 124D.37 to 124D.45 are to:
65.19(1) renew the ethic of civic responsibility in Minnesota;
65.20(2) empower youth to improve their life opportunities through literacy, job
65.21placement, and other essential skills;
65.22(3) empower government to meet its responsibility to prepare young people to be
65.23contributing members of society;
65.24(4) help meet human, educational, environmental, and public safety needs,
65.25particularly those needs relating to poverty;
65.26(5) prepare a citizenry that is academically competent, ready for work, and socially
65.27responsible;
65.28(6) demonstrate the connection between youth and community service, community
65.29service and education, and education and meaningful opportunities in the business
65.30community;
65.31(7) demonstrate the connection between providing opportunities for at-risk youth
65.32and reducing crime rates and the social costs of troubled youth;
66.1(8) create linkages for a comprehensive youth service and learning program in
66.2Minnesota including school age programs, higher education programs, youth work
66.3programs, and service corps programs; and
66.4(9) coordinate federal and state activities that advance the purposes in this section.

66.5    Sec. 41. Minnesota Statutes 2010, section 124D.38, subdivision 3, is amended to read:
66.6    Subd. 3. Federal law. "Federal law" means Public Law 101-610 111-13, as
66.7amended, or any other federal law or program assisting youth community service,
66.8work-based learning, or youth transition from school to work.

66.9    Sec. 42. Minnesota Statutes 2010, section 124D.385, subdivision 3, is amended to read:
66.10    Subd. 3. Duties. (a) The commission shall:
66.11(1) develop, with the assistance of the governor, the commissioner of education, and
66.12affected state agencies, a comprehensive state plan to provide services under sections
66.13124D.37 to 124D.45 and federal law;
66.14(2) actively pursue public and private funding sources for services, including
66.15funding available under federal law;
66.16(3) administer the Youthworks ServeMinnesota grant program under sections
66.17124D.39 to 124D.44, including soliciting and approving grant applications from eligible
66.18organizations, and administering individual postservice benefits;
66.19(4) establish an evaluation plan for programs developed and services provided
66.20under sections 124D.37 to 124D.45;
66.21(5) report to the governor, commissioner of education, and legislature; and
66.22(6) administer the federal AmeriCorps Program.
66.23(b) Nothing in sections 124D.37 to 124D.45 precludes an organization from
66.24independently seeking public or private funding to accomplish purposes similar to those
66.25described in paragraph (a).

66.26    Sec. 43. Minnesota Statutes 2010, section 124D.39, is amended to read:
66.27124D.39 YOUTHWORKS SERVEMINNESOTA INNOVATION PROGRAM.
66.28The Youthworks ServeMinnesota Innovation program is established to provide
66.29funding for the commission to leverage federal and private funding to fulfill the purposes
66.30of section 124D.37. The Youthworks ServeMinnesota Innovation program must
66.31supplement existing programs and services. The program must not displace existing
66.32programs and services, existing funding of programs or services, or existing employment
66.33and employment opportunities. No eligible organization may terminate, layoff, or reduce
67.1the hours of work of an employee to place or hire a program participant. No eligible
67.2organization may place or hire an individual for a project if an employee is on layoff from
67.3the same or a substantially equivalent position.

67.4    Sec. 44. Minnesota Statutes 2010, section 124D.40, is amended to read:
67.5124D.40 YOUTHWORKS SERVEMINNESOTA INNOVATION GRANTS.
67.6    Subdivision 1. Application. An eligible organization interested in receiving a
67.7grant under sections 124D.39 to 124D.44 may prepare and submit an application to the
67.8commission. As part of the grant application process, the commission must establish and
67.9publish grant application guidelines that are consistent with this subdivision, section
67.10124D.37, and Public Law 111-13; include criteria for reviewing an applicant's cost-benefit
67.11analysis; and require grantees to use research-based measures of program outcomes to
67.12generate valid and reliable data that are available to the commission for evaluation and
67.13public reporting purposes.
67.14    Subd. 2. Grant authority. The commission must use any state appropriation and
67.15any available federal funds, including any grant received under federal law, to award
67.16grants to establish programs for Youthworks ServeMinnesota Innovation. At least one
67.17grant each must be available for a metropolitan proposal, a rural proposal, and a statewide
67.18proposal. If a portion of the suburban metropolitan area is not included in the metropolitan
67.19grant proposal, the statewide grant proposal must incorporate at least one suburban
67.20metropolitan area. In awarding grants, the commission may select at least one residential
67.21proposal and one nonresidential proposal.

67.22    Sec. 45. Minnesota Statutes 2010, section 124D.42, is amended to read:
67.23124D.42 YOUTHWORKS PROGRAM TRAINING; READING CORPS.
67.24    Subd. 6. Program training. The commission must, within available resources:
67.25(1) orient each grantee organization in the nature, philosophy, and purpose of the
67.26program; and
67.27(2) build an ethic of community service through general community service training;
67.28and
67.29(3) provide guidance on integrating programmatic-based measurement into program
67.30models.
67.31    Subd. 8. Minnesota reading corps program. (a) A Minnesota reading corps
67.32program is established to provide Americorps ServeMinnesota Innovation members with a
67.33data-based problem-solving model of literacy instruction to use in helping to train local
67.34Head Start program providers, other prekindergarten program providers, and staff in
68.1schools with students in kindergarten through grade 3 to evaluate and teach early literacy
68.2skills, including comprehensive, scientifically based reading instruction under section
68.3122A.06, subdivision 4, to children age 3 to grade 3.
68.4(b) Literacy programs under this subdivision must comply with the provisions
68.5governing literacy program goals and data use under section 119A.50, subdivision 3,
68.6paragraph (b).
68.7(c) The commission must submit a biennial report to the committees of the
68.8legislature with jurisdiction over kindergarten through grade 12 education that records and
68.9evaluates program data to determine the efficacy of the programs under this subdivision.

68.10    Sec. 46. Minnesota Statutes 2010, section 124D.44, is amended to read:
68.11124D.44 MATCH REQUIREMENTS.
68.12Youthworks ServeMinnesota Innovation grant funds must be used for the living
68.13allowance, cost of employer taxes under sections 3111 and 3301 of the Internal Revenue
68.14Code of 1986, workers' compensation coverage, health benefits, training and evaluation
68.15for each program participant, and administrative expenses, which must not exceed
68.16five seven percent of total program costs. Youthworks grant funds may also be used to
68.17supplement applicant resources to fund postservice benefits for program participants.
68.18Applicant resources, from sources and in a form determined by the commission, must
68.19be used to provide for all other program costs, including the portion of the applicant's
68.20obligation for postservice benefits that is not covered by state or federal grant funds and
68.21such costs as supplies, materials, transportation, and salaries and benefits of those staff
68.22directly involved in the operation, internal monitoring, and evaluation of the program.

68.23    Sec. 47. Minnesota Statutes 2010, section 124D.45, subdivision 2, is amended to read:
68.24    Subd. 2. Interim report. The commission must report semiannually annually to the
68.25legislature with interim recommendations to change the program.

68.26    Sec. 48. Minnesota Statutes 2010, section 124D.4531, subdivision 1, is amended to
68.27read:
68.28    Subdivision 1. Career and technical levy. (a) A district with a career and technical
68.29program approved under this section for the fiscal year in which the levy is certified may
68.30levy an amount equal to the lesser greater of:
68.31(1) $80 times the district's average daily membership in grades 10 9 through 12 for
68.32the fiscal year in which the levy is certified; or
69.1(2) 25 35 percent of approved expenditures in the fiscal year in which the levy is
69.2certified for the following:
69.3(i) salaries paid to essential, licensed personnel providing direct instructional
69.4services to students in that fiscal year, including extended contracts, for services rendered
69.5in the district's approved career and technical education programs;
69.6(ii) contracted services provided by a public or private agency other than a Minnesota
69.7school district or cooperative center under subdivision 7;
69.8(iii) necessary travel between instructional sites by licensed career and technical
69.9education personnel;
69.10(iv) necessary travel by licensed career and technical education personnel for
69.11vocational student organization activities held within the state for instructional purposes;
69.12(v) curriculum development activities that are part of a five-year plan for
69.13improvement based on program assessment;
69.14(vi) necessary travel by licensed career and technical education personnel for
69.15noncollegiate credit-bearing professional development; and
69.16(vii) specialized vocational instructional supplies.
69.17(b) Up to ten percent of a district's career and technical levy may be spent on
69.18equipment purchases. Districts using the career and technical levy for equipment
69.19purchases must report to the department on the improved learning opportunities for
69.20students that result from the investment in equipment.
69.21(c) The district must recognize the full amount of this levy as revenue for the fiscal
69.22year in which it is certified.
69.23(d) The amount of the levy certified under this subdivision may not exceed
69.24$17,600,000 for taxes payable in 2012 and 2013 and $20,100,000 for taxes payable in
69.252014 and later.
69.26(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner
69.27must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer
69.28exceeds the limit in paragraph (d).
69.29EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.

69.30    Sec. 49. [124D.855] SCHOOL SEGREGATION PROHIBITED.
69.31The state, consistent with section 123B.30 and chapter 363A, does not condone
69.32separating school children of different socioeconomic, demographic, ethnic, or racial
69.33backgrounds into distinct public schools. Instead, the state's interest lies in offering
69.34children a diverse and nondiscriminatory educational experience.

70.1    Sec. 50. [124D.975] INNOVATION ACHIEVEMENT TRANSITION REVENUE.
70.2    Subdivision 1. Purpose. Innovation achievement transition revenue received
70.3under this section must be spent on research-based activities designed to increase student
70.4achievement.
70.5    Subd. 2. Innovation achievement transition revenue. A school district's
70.6innovation achievement transition revenue equals the sum of its innovation achievement
70.7transition levy and its innovation achievement transition aid.
70.8    Subd. 3. Innovation achievement transition levy allowance. A district's
70.9innovation achievement transition levy allowance equals its levy authority under section
70.10124D.86, for taxes payable in 2011, divided by its adjusted average daily membership
70.11for fiscal year 2012.
70.12    Subd. 4. Innovation achievement transition levy. A district's innovation
70.13achievement transition levy equals its innovation achievement transition levy allowance
70.14times its adjusted average daily membership for the current year.
70.15    Subd. 5. Innovation achievement transition aid. For fiscal year 2012, a district's
70.16innovation achievement transition aid equals the amount of aid the district would have
70.17received for fiscal year 2012 under Minnesota Statutes 2010, section 124D.86, for that
70.18year. For fiscal year 2013 and later, innovation achievement transition aid equals the
70.19district's adjusted average daily membership for that year, times $180 for Special School
70.20District No. 1, Minneapolis, $180 for Independent School District No. 625, St. Paul, and
70.21$50 for Independent School District No. 709, Duluth.
70.22    Subd. 6. Aid reduction. Innovation achievement transition aid for fiscal year 2012
70.23is reduced by $2,514,000 for Special School District No. 1, Minneapolis, $2,247,000 for
70.24Independent School District No. 625, St. Paul, and $61,000 for Independent School
70.25District No. 709, Duluth.

70.26    Sec. 51. [124D.98] LITERACY INCENTIVE AID.
70.27    Subdivision 1. Literacy incentive aid. In fiscal year 2013 and later, a district's
70.28literacy incentive aid equals the sum of the proficiency aid under subdivision 2, and the
70.29growth aid under subdivision 3.
70.30    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each
70.31school is equal to the product of the school's proficiency allowance times the number
70.32of pupils at the school on October 1 of the previous fiscal year. A school's proficiency
70.33allowance is equal to the percentage of students in each building that meet or exceed
70.34proficiency on the third grade reading Minnesota Comprehensive Assessment, averaged
70.35across the previous three test administrations, times $100.
71.1    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is
71.2equal to the product of the school's growth allowance times the number of pupils enrolled
71.3at the school on October 1 of the previous fiscal year. A school's growth allowance is
71.4equal to the percentage of students at that school making medium or high growth, under
71.5section 120B.299, on the fourth grade reading Minnesota Comprehensive Assessment,
71.6averaged across the previous three test administrations, times $100.

71.7    Sec. 52. Minnesota Statutes 2010, section 179A.16, subdivision 1, is amended to read:
71.8    Subdivision 1. Nonessential employees. An exclusive representative or an
71.9employer of a unit of employees other than essential employees or teachers may request
71.10interest arbitration by providing written notice of the request to the other party and the
71.11commissioner. The written request for arbitration must specify the items to be submitted to
71.12arbitration and whether conventional, final-offer total-package, or final-offer item-by-item
71.13arbitration is contemplated by the request.
71.14The items to be submitted to arbitration and the form of arbitration to be used are
71.15subject to mutual agreement. If an agreement to arbitrate is reached, it must be reduced to
71.16writing and a copy of the agreement filed with the commissioner. A failure to respond, or
71.17to reach agreement on the items or form of arbitration, within 15 days of receipt of the
71.18request to arbitrate constitutes a rejection of the request.
71.19EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
71.20to all teacher collective bargaining agreements entered into or modified after that date.

71.21    Sec. 53. [179A.175] TEACHER CONTRACTS.
71.22Notwithstanding section 179A.16 and any other law to the contrary, a school board
71.23and the exclusive representative of the teachers may meet and negotiate and enter into
71.24an employment contract between March 15 and October 15 in an odd-numbered year.
71.25If the school board and the exclusive representative fail to reach a certified written
71.26agreement by October 15 in the odd-numbered year, the negotiations must be suspended
71.27until the next even-numbered calendar year and resume during the three-month period
71.28preceding September 1 when school is not in session. During the time the negotiations
71.29are suspended, employee compensation must be according to the terms of the collective
71.30bargaining agreement in effect in the preceding collective bargaining cycle. If agreement
71.31is not reached during the three-month period in the even-numbered year, the school board
71.32must submit the matter to an arbitrator selected by the Bureau of Mediation Services
71.33who must determine the matter based on a final offer total package from each party. The
71.34arbitrator's award must not cause a structural imbalance in a district's budget during the
72.1contract term that is subject to the arbitrator's award under this section. An award will
72.2not cause a structural imbalance only if district expenditures do not exceed available
72.3revenue, taking into account current state aid formulas and reasonable and comprehensive
72.4calculations and projections of the district's ongoing revenues and expenditures during the
72.5contract term. Onetime revenue must not be considered when calculating or projecting
72.6available revenue for ongoing expenditures in a contract term.
72.7EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
72.8to all teacher collective bargaining agreements entered into or modified after that date.

72.9    Sec. 54. Minnesota Statutes 2010, section 179A.18, subdivision 1, is amended to read:
72.10    Subdivision 1. When authorized. Essential employees and teachers may not strike.
72.11Except as otherwise provided by subdivision 2 and section 179A.17, subdivision 2, other
72.12public employees may strike only under the following circumstances:
72.13(1)(i) the collective bargaining agreement between their exclusive representative and
72.14their employer has expired or, if there is no agreement, impasse under section 179A.17,
72.15subdivision 2 , has occurred; and
72.16(ii) the exclusive representative and the employer have participated in mediation
72.17over a period of at least 45 days, provided that the mediation period established by section
72.18179A.17, subdivision 2 , governs negotiations under that section, and provided that for the
72.19purposes of this subclause the mediation period commences on the day following receipt
72.20by the commissioner of a request for mediation; or
72.21(2) the employer violates section 179A.13, subdivision 2, clause (9); or
72.22(3) in the case of state employees, (i) the Legislative Coordinating Commission has
72.23rejected a negotiated agreement or arbitration decision during a legislative interim; or (ii)
72.24the entire legislature rejects or fails to ratify a negotiated agreement or arbitration decision,
72.25which has been approved during a legislative interim by the Legislative Coordinating
72.26Commission, at a special legislative session called to consider it, or at its next regular
72.27legislative session, whichever occurs first.
72.28EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
72.29to all teacher collective bargaining agreements entered into or modified after that date.

72.30    Sec. 55. Minnesota Statutes 2010, section 179A.18, subdivision 3, is amended to read:
72.31    Subd. 3. Notice. In addition to the other requirements of this section, no employee
72.32may strike unless written notification of intent to strike is served on the employer and the
72.33commissioner by the exclusive representative at least ten days prior to the commencement
73.1of the strike. For all employees other than teachers, if more than 30 days have expired
73.2after service of a notification of intent to strike, no strike may commence until ten days
73.3after service of a new written notification. For teachers, no strike may commence more
73.4than 25 days after service of notification of intent to strike unless, before the end of the
73.525-day period, the exclusive representative and the employer agree that the period during
73.6which a strike may commence shall be extended for an additional period not to exceed five
73.7days. Teachers are limited to one notice of intent to strike for each contract negotiation
73.8period, provided, however, that a strike notice may be renewed for an additional ten days,
73.9the first five of which shall be a notice period during which no strike may occur, if the
73.10following conditions have been satisfied:
73.11(1) an original notice was provided pursuant to this section; and
73.12(2) a tentative agreement to resolve the dispute was reached during the original
73.13strike notice period; and
73.14(3) such tentative agreement was rejected by either party during or after the original
73.15strike notice period.
73.16The first day of the renewed strike notice period shall commence on the day following
73.17the expiration of the previous strike notice period or the day following the rejection
73.18of the tentative agreement, whichever is later. Notification of intent to strike under
73.19subdivisions 1, clause (1); and 2, clause (1), may not be served until the collective
73.20bargaining agreement has expired, or if there is no agreement, on or after the date impasse
73.21under section 179A.17 has occurred.
73.22EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
73.23to all teacher collective bargaining agreements entered into or modified after that date.

73.24    Sec. 56. IMPLEMENTING A PERFORMANCE-BASED EVALUATION
73.25SYSTEM FOR PRINCIPALS.
73.26(a) To implement the requirements of Minnesota Statutes, sections 123B.143,
73.27subdivision 1, clause (3), and 122A.73, the commissioner of education, the Minnesota
73.28Association of Secondary School Principals, and the Minnesota Association of Elementary
73.29School Principals must convene a group of recognized and qualified experts and interested
73.30stakeholders, including principals, superintendents, teachers, school board members, and
73.31parents, among other stakeholders, to develop a performance-based system model for
73.32annually evaluating school principals. In developing the system model, the group must at
73.33least consider how principals develop and maintain:
73.34(1) high standards for student performance;
73.35(2) rigorous curriculum;
74.1(3) quality instruction;
74.2(4) a culture of learning and professional behavior;
74.3(5) connections to external communities;
74.4(6) systemic performance accountability; and
74.5(7) leadership behaviors that create effective schools and improve school
74.6performance, including how to plan for, implement, support, advocate for, communicate
74.7about, and monitor continuous and improved learning.
74.8The group also may consider whether to establish a multitiered evaluation system
74.9that supports newly licensed principals in becoming highly skilled school leaders and
74.10provides opportunities for advanced learning for more experienced school leaders.
74.11(b) The commissioner, the Minnesota Association of Secondary School Principals,
74.12and the Minnesota Association of Elementary School Principals must submit a
74.13written report and all the group's working papers to the education committees of the
74.14legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its
74.15recommendations for a performance-based system model for annually evaluating school
74.16principals. The group convened under this section expires June 1, 2012.
74.17EFFECTIVE DATE.This section is effective the day following final enactment
74.18and applies to principal evaluations beginning in the 2013-2014 school year and later.

74.19    Sec. 57. REPORT; PLAN FOR IMPLEMENTING SCHOOL AND DISTRICT
74.20GRADING SYSTEM.
74.21The commissioner of education must convene a stakeholder group that includes
74.22assessment and evaluation directors, educators, researchers, and parents to advise the
74.23commissioner on developing a plan to implement the school and district grading system
74.24under Minnesota Statutes, section 120B.361. The commissioner must present the plan
74.25in writing to the education policy and finance committees of the legislature by February
74.2615, 2012, and include any recommendations for further clarifying Minnesota Statutes,
74.27section 120B.361.
74.28EFFECTIVE DATE.This section is effective the day following final enactment.

74.29    Sec. 58. REPORT; RECOMMENDATIONS FOR INCREASING SCHOOLS'
74.30FINANCIAL FLEXIBILITY.
74.31The commissioner of education must submit to the education policy and finance
74.32committees of the legislature by February 1, 2013, written recommendations that identify
74.33fiscal mandates the legislature might waive to give greater financial flexibility to schools
75.1that received a letter grade of "A," improved at least one letter grade in the preceding
75.2school year, or improved two or more letter grades in the two preceding school years
75.3under Minnesota Statutes, section 120B.361, subdivision 1.
75.4EFFECTIVE DATE.This section is effective the day following final enactment.

75.5    Sec. 59. ENROLLMENT OPTIONS FOR STUDENTS OF LOW-PERFORMING
75.6SCHOOLS; REPORT.
75.7The commissioner of education must submit to the education policy and finance
75.8committees of the legislature by February 1, 2014, a report on the enrollment options for
75.9students at low-performing public schools under section 14. The report, at a minimum,
75.10must:
75.11(1) examine the demographics of the students participating in the program; and
75.12(2) detail the academic performance of students participating in the program,
75.13including their performance on reading and mathematics tests under Minnesota Statutes
75.142010, section 120B.30, and compare the academic performance of students of similar
75.15demographics in public schools with these students.

75.16    Sec. 60. CHARTER SCHOOL START-UP AID.
75.17Notwithstanding any law to the contrary, a charter school in its first year of operation
75.18during fiscal year 2012 is not eligible for charter school start-up aid under Minnesota
75.19Statutes, section 124D.11, subdivision 8.

75.20    Sec. 61. LITERACY INCENTIVE AID LIMIT.
75.21Notwithstanding Minnesota Statutes, section 124D.98, subdivision 1, for fiscal year
75.222013 only, the commissioner must adjust the entitlement for literacy incentive aid under
75.23Minnesota Statutes, section 124D.98, subdivision 1, to ensure that the total entitlement
75.24does not exceed $48,585,000. If the literacy incentive aid exceeds the limit established in
75.25this section, the aid must be reduced proportionately to match the limit.

75.26    Sec. 62. APPRAISAL IMPLEMENTATION TIMELINE.
75.27Consistent with Minnesota Statutes, section 122A.411, districts and charter schools
75.28shall implement the teacher appraisal framework according to the following timeline:
75.29(1) in the 2011-2012 school year, develop an appraisal framework and a system
75.30to collect data;
75.31(2) in the 2012-2013 school year, implement the teacher appraisal framework and
75.32data collection system as a pilot program; and
76.1(3) beginning in the 2013-2014 school year, fully implement the teacher appraisal
76.2framework and data collection system.
76.3EFFECTIVE DATE.This section is effective the day following final enactment.

76.4    Sec. 63. APPROPRIATIONS.
76.5    Subdivision 1. Department of Education. The sums indicated in this section are
76.6appropriated from the general fund to the Department of Education for the fiscal years
76.7designated.
76.8    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
76.9Statutes, section 124D.11, subdivision 4:

76.10		$	47,466,000	.....	2012
76.11		$	52,484,000	.....	2013

76.12The 2012 appropriation includes $13,336,000 for 2011 and $34,130,000 for 2012.
76.13The 2013 appropriation includes $14,627,000 for 2012 and $37,857,000 for 2013.
76.14    Subd. 3. Charter school start-up aid. For charter school start-up cost aid under
76.15Minnesota Statutes, section 124D.11, subdivision 8:

76.16		$	180,000	.....	2012
76.17		$	25,000	.....	2013

76.18The 2012 appropriation includes $119,000 for 2011 and $61,000 for 2012.
76.19The 2013 appropriation includes $25,000 for 2012 and $0 for 2013.
76.20    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
76.21124D.86:

76.22		$	19,272,000	.....	2012
76.23		$	7,797,000	.....	2013

76.24The 2012 appropriation includes $19,272,000 for 2011.
76.25The 2013 appropriation includes $7,797,000 for 2011.
76.26    Subd. 5. Innovation achievement transition aid. For innovation achievement
76.27transition aid under Minnesota Statutes, section 124D.975:

76.28		$	43,672,000	.....	2012
76.29		$	29,039,000	.....	2013

76.30The 2012 appropriation includes $0 for 2011 and $43,672,000 for 2012.
76.31The 2013 appropriation includes $18,716,000 for 2012 and $10,323,000 for 2013.
77.1    Subd. 6. Literacy incentive aid. For literacy incentive aid under Minnesota
77.2Statutes, section 124D.98:

77.3

$

34,009,000

.....

2013

77.4The 2013 appropriation includes $0 for 2012 and $34,009,000 for 2013.
77.5    Subd. 7. Interdistrict desegregation or integration transportation grants. For
77.6interdistrict desegregation or integration transportation grants under Minnesota Statutes,
77.7section 124D.87:

77.8		$	14,917,000	.....	2012
77.9		$	16,612,000	.....	2013

77.10    Subd. 8. Success for the future. For American Indian success for the future grants
77.11under Minnesota Statutes, section 124D.81:

77.12		$	2,137,000	.....	2012
77.13		$	2,137,000	.....	2013

77.14The 2012 appropriation includes $641,000 for 2011 and $1,496,000 for 2012.
77.15The 2013 appropriation includes $641,000 for 2012 and $1,496,000 for 2013.
77.16    Subd. 9. American Indian teacher preparation grants. For joint grants to assist
77.17American Indian people to become teachers under Minnesota Statutes, section 122A.63:

77.18		$	190,000	.....	2012
77.19		$	190,000	.....	2013

77.20    Subd. 10. Tribal contract schools. For tribal contract school aid under Minnesota
77.21Statutes, section 124D.83:

77.22		$	2,088,000	.....	2012
77.23		$	2,195,000	.....	2013

77.24The 2012 appropriation includes $600,000 for 2011 and $1,488,000 for 2012.
77.25The 2013 appropriation includes $637,000 for 2012 and $1,558,000 for 2013.
77.26    Subd. 11. Early childhood programs at tribal schools. For early childhood
77.27family education programs at tribal contract schools under Minnesota Statutes, section
77.28124D.83, subdivision 4:

77.29		$	68,000	.....	2012
77.30		$	68,000	.....	2013

77.31    Subd. 12. Statewide testing and reporting system. For the statewide testing and
77.32reporting system under Minnesota Statutes, section 120B.30:

78.1		$	15,150,000	.....	2012
78.2		$	15,150,000	.....	2013

78.3Any balance in the first year does not cancel but is available in the second year.
78.4    Subd. 13. Examination fees; teacher training and support programs. (a) For
78.5students' advanced placement and international baccalaureate examination fees under
78.6Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
78.7for teachers and other interested educators under Minnesota Statutes, section 120B.13,
78.8subdivision 1:

78.9		$	4,500,000	.....	2012
78.10		$	4,500,000	.....	2013

78.11(b) The advanced placement program shall receive 75 percent of the appropriation
78.12each year and the international baccalaureate program shall receive 25 percent of the
78.13appropriation each year. The department, in consultation with representatives of the
78.14advanced placement and international baccalaureate programs selected by the Advanced
78.15Placement Advisory Council and IBMN, respectively, shall determine the amounts of
78.16the expenditures each year for examination fees and training and support programs for
78.17each program.
78.18(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
78.19$500,000 each year is for teachers to attend subject matter summer training programs
78.20and follow-up support workshops approved by the advanced placement or international
78.21baccalaureate programs. The amount of the subsidy for each teacher attending an
78.22advanced placement or international baccalaureate summer training program or workshop
78.23shall be the same. The commissioner shall determine the payment process and the amount
78.24of the subsidy.
78.25(d) The commissioner shall pay all examination fees for all students of low-income
78.26families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
78.27of available appropriations shall also pay examination fees for students sitting for an
78.28advanced placement examination, international baccalaureate examination, or both.
78.29Any balance in the first year does not cancel but is available in the second year.
78.30    Subd. 14. Concurrent enrollment programs. For concurrent enrollment programs
78.31under Minnesota Statutes, section 124D.091:

78.32		$	2,000,000	.....	2012
78.33		$	2,000,000	.....	2013

78.34If the appropriation is insufficient, the commissioner must proportionately reduce
78.35the aid payment to each district.
79.1Any balance in the first year does not cancel but is available in the second year.
79.2    Subd. 15. Collaborative urban educator. For the collaborative urban educator
79.3program:

79.4		$	528,000	.....	2012
79.5		$	528,000	.....	2013

79.6$200,000 each year is for the Southeast Asian teacher program at Concordia
79.7University, St. Paul; $164,000 each year is for the collaborative educator program at
79.8the University of St. Thomas; and $164,000 each year is for the Center for Excellence
79.9in Urban Teaching at Hamline University.
79.10Any balance in the first year does not cancel but is available in the second year.
79.11Each institution shall prepare for the legislature, by January 15 of each year, a
79.12detailed report regarding the funds used. The report must include the number of teachers
79.13prepared as well as the diversity of each cohort of teachers produced.
79.14    Subd. 16. ServeMinnesota program. For funding ServeMinnesota programs under
79.15Minnesota Statutes, sections 124D.37 to 124D.45:

79.16		$	900,000	.....	2012
79.17		$	900,000	.....	2013

79.18A grantee organization may provide health and child care coverage to the dependents
79.19of each participant enrolled in a full-time ServeMinnesota program to the extent such
79.20coverage is not otherwise available.
79.21    Subd. 17. Student organizations. For student organizations:

79.22		$	725,000	.....	2012
79.23		$	725,000	.....	2013

79.24$49,000 each year is for student organizations serving health occupations (HUSA).
79.25$46,000 each year is for student organizations serving service occupations (HERO).
79.26$106,000 each year is for student organizations serving trade and industry
79.27occupations (SkillsUSA, secondary and postsecondary).
79.28$101,000 each year is for student organizations serving business occupations
79.29(DECA, BPA, secondary and postsecondary).
79.30$158,000 each year is for student organizations serving agriculture occupations
79.31(FFA, PAS).
79.32$150,000 each year is for student organizations serving family and consumer science
79.33occupations (FCCLA).
80.1$115,000 each year is for student organizations serving marketing occupations
80.2(DEX).
80.3Any balance in the first year does not cancel but is available in the second year.
80.4    Subd. 18. Early childhood literacy programs. For early childhood literacy
80.5programs under Minnesota Statutes, section 119A.50, subdivision 3:

80.6		$	4,125,000	.....	2012
80.7		$	4,125,000	.....	2013

80.8$4,125,000 each year is for leveraging federal and private funding to support
80.9AmeriCorps members serving in the Minnesota Reading Corps program established by
80.10ServeMinnesota, including costs associated with the training and teaching of early literacy
80.11skills to children age three to grade 3 and the evaluation of the impact of the program
80.12under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
80.13Any balance in the first year does not cancel, but is available in the second year.
80.14    Subd. 19. Educational planning and assessment system (EPAS) program.
80.15For the educational planning and assessment system program under Minnesota Statutes,
80.16section 120B.128:

80.17		$	829,000	.....	2012
80.18		$	829,000	.....	2013

80.19Any balance in the first year does not cancel but is available in the second year.
80.20    Subd. 20. School recognition awards. For payments to school districts for the
80.21school recognition award program under Minnesota Statutes, section 120B.361:

80.22		$	0	.....	2012
80.23		$	3,455,000	.....	2013

80.24The 2013 appropriation includes $0 for 2012 and $3,455,000 for 2013.
80.25    Subd. 21. Enrollment options for students at low-performing schools. For the
80.26enrollment options for students at low-performing schools under Minnesota Statutes,
80.27section 124D.031:

80.28		$	4,992,000	.....	2012
80.29		$	12,504,000	.....	2013

80.30Of this appropriation, $264,000 in 2012 and $664,000 in 2013 are for payments to
80.31school districts for reimbursement for transportation expenses under Minnesota Statutes,
80.32section 124D.031, subdivision 4.

80.33    Sec. 64. REPEALER.
81.1(a) Minnesota Statutes 2010, section 179A.18, subdivision 2, is repealed effective
81.2July 1, 2013.
81.3(b) Minnesota Statutes 2010, sections 122A.61; 124D.11, subdivision 8; 124D.86;
81.4124D.871; and 124D.88, are repealed effective for fiscal year 2012 and later.
81.5(c) Minnesota Statutes 2010, section 124D.38, subdivisions 4, 5, and 6, are repealed.
81.6(d) Minnesota Statutes 2010, sections 123B.05; 124D.892, subdivisions 1 and 2; and
81.7124D.896, are repealed effective July 1, 2011.
81.8(e) Minnesota Statutes 2010, sections 122A.40, subdivision 10; and 122A.60,
81.9subdivisions 1, 2, 3, and 4, are repealed effective for the 2013-2014 school year and later.
81.10(f) Minnesota Rules, parts 3535.0100; 3535.0110; 3535.0120; 3535.0130;
81.113535.0140; 3535.0150; 3535.0160; 3535.0170; and 3535.0180, are repealed effective
81.12July 1, 2011.

81.13ARTICLE 3

81.14SPECIAL EDUCATION

81.15    Section 1. Minnesota Statutes 2010, section 125A.07, is amended to read:
81.16125A.07 RULEMAKING.
81.17(a) Consistent with this section, the commissioner shall adopt new rules and
81.18amend existing rules related to children with disabilities only under after receiving
81.19specific legislative authority to do so, consistent with section 127A.05, subdivision 4, and
81.20consistent with the requirements of chapter 14 and paragraph (c). Technical changes and
81.21corrections are exempted from this paragraph.
81.22(b) As provided in this paragraph, the state's regulatory scheme should support
81.23schools by assuring that all state special education rules adopted by the commissioner
81.24result in one or more of the following outcomes:
81.25(1) increased time available to teachers and, where appropriate, to support staff
81.26including school nurses for educating students through direct and indirect instruction;
81.27(2) consistent and uniform access to effective education programs for students with
81.28disabilities throughout the state;
81.29(3) reduced inequalities and conflict, appropriate due process hearing procedures
81.30and reduced court actions related to the delivery of special education instruction and
81.31services for students with disabilities;
81.32(4) clear expectations for service providers and for students with disabilities;
81.33(5) increased accountability for all individuals and agencies that provide instruction
81.34and other services to students with disabilities;
82.1(6) greater focus for the state and local resources dedicated to educating students
82.2with disabilities; and
82.3(7) clearer standards for evaluating the effectiveness of education and support
82.4services for students with disabilities.
82.5(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule
82.6related to children with disabilities if such action is specifically required by federal law.
82.7EFFECTIVE DATE.This section is effective the day following final enactment.

82.8    Sec. 2. Minnesota Statutes 2010, section 125A.21, subdivision 2, is amended to read:
82.9    Subd. 2. Third-party reimbursement. (a) Beginning July 1, 2000, districts
82.10shall seek reimbursement from insurers and similar third parties for the cost of services
82.11provided by the district whenever the services provided by the district are otherwise
82.12covered by the child's health coverage. Districts shall request, but may not require, the
82.13child's family to provide information about the child's health coverage when a child with a
82.14disability begins to receive services from the district of a type that may be reimbursable,
82.15and shall request, but may not require, updated information after that as needed.
82.16(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
82.17under chapter 256L who have no other health coverage, a district shall provide an initial
82.18and annual written notice to the enrolled child's parent or legal representative of its intent
82.19to seek reimbursement from medical assistance or MinnesotaCare for the individual
82.20individualized education plan program health-related services provided by the district.
82.21The initial notice must give the child's parent or legal representative the right to:
82.22(1) request a copy of the child's education records on the health-related services that
82.23the district provided to the child and disclosed to a third-party payer;
82.24(2) withdraw consent for the district to disclose information in a child's education
82.25record at any time without affecting a parent's eligibility for MinnesotaCare or medical
82.26assistance under section 256B.08, subdivision 1, including consent that the parent or
82.27legal representative gave as part of the application process for MinnesotaCare or medical
82.28assistance; and
82.29(3) receive a statement, consistent with clause (2), indicating that a decision to
82.30withdraw consent for the district to disclose information in a child's education record does
82.31not affect a parent's eligibility for MinnesotaCare or medical assistance.
82.32(c) The district shall give the parent or legal representative annual written notice of:
82.33(1) the district's intent to seek reimbursement from medical assistance or
82.34MinnesotaCare for individual education plan health-related services provided by the
82.35district;
83.1(2) the right of the parent or legal representative to request a copy of all records
83.2concerning individual education plan health-related services disclosed by the district to
83.3any third party; and
83.4(3) the right of the parent or legal representative to withdraw consent for disclosure
83.5of a child's records at any time without consequence, including consent that the parent
83.6or legal representative gave as part of the application process for any public assistance
83.7program that may result in a parent's eligibility for MinnesotaCare or medical assistance
83.8under section 256B.08, subdivision 1.
83.9The written notice shall be provided as part of the written notice required by Code of
83.10Federal Regulations, title 34, section 300.504. The district must ensure that the parent of a
83.11child with a disability is given notice, in understandable language, of federal and state
83.12procedural safeguards available to the parent under this paragraph and paragraph (b).
83.13(d) In order to access the private health care coverage of a child who is covered by
83.14private health care coverage in whole or in part, a district must:
83.15(1) obtain annual written informed consent from the parent or legal representative, in
83.16compliance with subdivision 5; and
83.17(2) inform the parent or legal representative that a refusal to permit the district
83.18or state Medicaid agency to access their private health care coverage does not relieve
83.19the district of its responsibility to provide all services necessary to provide free and
83.20appropriate public education at no cost to the parent or legal representative.
83.21(e) If the commissioner of human services obtains federal approval to exempt
83.22covered individual education plan health-related services from the requirement that private
83.23health care coverage refuse payment before medical assistance may be billed, paragraphs
83.24(b), (c), and (d) shall also apply to students with a combination of private health care
83.25coverage and health care coverage through medical assistance or MinnesotaCare.
83.26(f) In the event that Congress or any federal agency or the Minnesota legislature
83.27or any state agency establishes lifetime limits, limits for any health care services,
83.28cost-sharing provisions, or otherwise provides that individual education plan health-related
83.29services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the
83.30amendments to this subdivision adopted in 2002 are repealed on the effective date of any
83.31federal or state law or regulation that imposes the limits. In that event, districts must
83.32obtain informed consent consistent with this subdivision as it existed prior to the 2002
83.33amendments and subdivision 5, before seeking reimbursement for children enrolled in
83.34medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have
83.35no other health care coverage.
83.36EFFECTIVE DATE.This section is effective the day following final enactment.

84.1    Sec. 3. Minnesota Statutes 2010, section 125A.21, subdivision 3, is amended to read:
84.2    Subd. 3. Use of reimbursements. Of the reimbursements received, districts may:
84.3(1) retain an amount sufficient to compensate the district for its administrative costs
84.4of obtaining reimbursements;
84.5(2) regularly obtain from education- and health-related entities training and other
84.6appropriate technical assistance designed to improve the district's ability to determine
84.7which services are reimbursable and to seek timely reimbursement in a cost-effective
84.8manner access third-party payments for individualized education program health-related
84.9services; or
84.10(3) reallocate reimbursements for the benefit of students with special needs
84.11individualized education programs or individual family service plans in the district.
84.12EFFECTIVE DATE.This section is effective the day following final enactment.

84.13    Sec. 4. Minnesota Statutes 2010, section 125A.21, subdivision 5, is amended to read:
84.14    Subd. 5. Informed consent. When obtaining informed consent, consistent with
84.15sections 13.05, subdivision 4a; and, 256B.77, subdivision 2, paragraph (p), and Code of
84.16Federal Regulations, title 34, parts 99 and 300, to bill health plans for covered services, the
84.17school district must notify the legal representative (1) that the cost of the person's private
84.18health insurance premium may increase due to providing the covered service in the school
84.19setting, (2) that the school district may pay certain enrollee health plan costs, including
84.20but not limited to, co-payments, coinsurance, deductibles, premium increases or other
84.21enrollee cost-sharing amounts for health and related services required by an individual
84.22service plan, or individual family service plan, and (3) that the school's billing for each
84.23type of covered service may affect service limits and prior authorization thresholds. The
84.24informed consent may be revoked in writing at any time by the person authorizing the
84.25billing of the health plan.
84.26EFFECTIVE DATE.This section is effective the day following final enactment.

84.27    Sec. 5. Minnesota Statutes 2010, section 125A.21, subdivision 7, is amended to read:
84.28    Subd. 7. District disclosure of information. A school district may disclose
84.29information contained in a student's individual individualized education plan program,
84.30consistent with section 13.32, subdivision 3, paragraph (a), and Code of Federal
84.31Regulations, title 34, parts 99 and 300; including records of the student's diagnosis and
84.32treatment, to a health plan company only with the signed and dated consent of the student's
84.33parent, or other legally authorized individual, including consent that the parent or legal
85.1representative gave as part of the application process for MinnesotaCare or medical
85.2assistance under section 256B.08, subdivision 1. The school district shall disclose only
85.3that information necessary for the health plan company to decide matters of coverage and
85.4payment. A health plan company may use the information only for making decisions
85.5regarding coverage and payment, and for any other use permitted by law.
85.6EFFECTIVE DATE.This section is effective the day following final enactment.

85.7    Sec. 6. Minnesota Statutes 2010, section 125A.515, is amended by adding a
85.8subdivision to read:
85.9    Subd. 3a. Students without a disability from other states. A school district is not
85.10required to provide education services under this section to a student who:
85.11(1) is not a resident of Minnesota;
85.12(2) does not have an individualized education program; and
85.13(3) does not have a tuition arrangement or agreement to pay the cost of education
85.14from the placing authority.
85.15EFFECTIVE DATE.This section is effective July 1, 2011, for fiscal year 2012
85.16and later.

85.17    Sec. 7. Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to read:
85.18    Subdivision 1. Two kinds Admissions. There are two kinds of Admission to the
85.19Minnesota State Academies is described in this section.
85.20(a) A pupil who is deaf, hard of hearing, or blind-deaf deafblind, may be admitted to
85.21the Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf deafblind,
85.22or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be
85.23admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65.
85.24(1) It must be decided by the individual education planning team that education in
85.25regular or special education classes in the pupil's district of residence cannot be achieved
85.26satisfactorily because of the nature and severity of the deafness or blindness or visual
85.27impairment respectively.
85.28(2) It must be decided by the individual education planning team that the academy
85.29provides the most appropriate placement within the least restrictive alternative for the
85.30pupil.
85.31(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to
85.32get socialization skills or on a short-term basis for skills development.
86.1(c) A parent of a child who resides in Minnesota and who meets the disability criteria
86.2for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may
86.3apply to place the child in the Minnesota State Academies. Academy staff must review
86.4the application to determine whether the Minnesota State Academies is an appropriate
86.5placement for the child. If academy staff determine that the Minnesota State Academies is
86.6an appropriate placement, the staff must invite the individualized education program team
86.7at the child's resident school district to participate in a meeting to arrange a trial placement
86.8of between 60 and 90 calendar days at the Minnesota State Academies. If the child's
86.9parent consents to the trial placement, the Minnesota State Academies is the responsible
86.10serving school district and incurs all due process obligations under law, and the child's
86.11resident school district is responsible for any transportation included in the child's
86.12individualized education program during the trial placement. Before the trial placement
86.13ends, academy staff must convene an individualized education program team meeting to
86.14determine whether to continue the child's placement at the Minnesota State Academies
86.15or that another placement is appropriate. If the academy members of the individualized
86.16education program team and the parent are unable to agree on the child's placement, the
86.17child's placement reverts to the placement in the child's individualized education program
86.18that immediately preceded the trial placement. If the parent and individualized education
86.19program team agree to continue the placement beyond the trial period, the transportation
86.20and due process responsibilities are the same as those described for the trial placement
86.21under this paragraph.
86.22EFFECTIVE DATE.This section is effective July 1, 2011.

86.23    Sec. 8. Minnesota Statutes 2010, section 125A.76, subdivision 1, is amended to read:
86.24    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
86.25subdivision apply.
86.26    (a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
86.27For the purposes of computing basic revenue pursuant to this section, each child with a
86.28disability shall be counted as prescribed in section 126C.05, subdivision 1.
86.29    (b) "Essential personnel" means teachers, cultural liaisons, related services, and
86.30support services staff providing services to students. Essential personnel may also include
86.31special education paraprofessionals or clericals providing support to teachers and students
86.32by preparing paperwork and making arrangements related to special education compliance
86.33requirements, including parent meetings and individual education plans. Essential
86.34personnel does not include administrators and supervisors.
86.35    (c) "Average daily membership" has the meaning given it in section 126C.05.
87.1    (d) "Program growth factor" means 1.046 1.02 for fiscal year years 2012 and 2013,
87.2and 1.046 in fiscal year 2014 and later.
87.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
87.4and later.

87.5    Sec. 9. Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:
87.6    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
87.7subdivision apply.
87.8    (a) "Unreimbursed special education cost" means the sum of the following:
87.9    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
87.10transportation services eligible for revenue under section 125A.76; plus
87.11    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
87.12125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
87.13    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and
87.14transportation services under section 125A.76; minus
87.15    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
87.16eligible for revenue under section 125A.76, subdivision 2.
87.17    (b) "General revenue" means the sum of the general education revenue according to
87.18section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
87.19the total qualifying referendum revenue specified in paragraph (e) minus transportation
87.20sparsity revenue minus total operating capital revenue.
87.21    (c) "Average daily membership" has the meaning given it in section 126C.05.
87.22    (d) "Program growth factor" means 1.02 1.03 for fiscal year years 2012 and 2013,
87.23and 1.02 in fiscal year 2014 and later.
87.24    (e) "Total qualifying referendum revenue" means two-thirds of the district's total
87.25referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
87.26(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
87.27year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.
87.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
87.29and later.

87.30    Sec. 10. Laws 2009, chapter 79, article 5, section 60, as amended by Laws 2009,
87.31chapter 173, article 1, section 37, is amended to read:
87.32    Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a
87.33subdivision to read:
88.1    Subd. 1c. Open enrollment and streamlined application and enrollment
88.2process. (a) The commissioner and local agencies working in partnership must develop a
88.3streamlined and efficient application and enrollment process for medical assistance and
88.4MinnesotaCare enrollees that meets the criteria specified in this subdivision.
88.5(b) The commissioners of human services and education shall provide
88.6recommendations to the legislature by January 15, 2010, on the creation of an open
88.7enrollment process for medical assistance and MinnesotaCare that is coordinated with
88.8the public education system. The recommendations must:
88.9(1) be developed in consultation with medical assistance and MinnesotaCare
88.10enrollees and representatives from organizations that advocate on behalf of children and
88.11families, low-income persons and minority populations, counties, school administrators
88.12and nurses, health plans, and health care providers;
88.13(2) be based on enrollment and renewal procedures best practices;
88.14(3) simplify the enrollment and renewal processes wherever possible; and
88.15(4) establish a process:
88.16(i) to disseminate information on medical assistance and MinnesotaCare to all
88.17children in the public education system, including prekindergarten programs; and
88.18(ii) for the commissioner of human services to enroll children and other household
88.19members who are eligible.
88.20The commissioner of human services in coordination with the commissioner of
88.21education shall implement an open enrollment process by August 1, 2010, to be effective
88.22beginning with the 2010-2011 school year.
88.23(c) The commissioner and local agencies shall develop an online application process
88.24for medical assistance and MinnesotaCare.
88.25(d) The commissioner shall develop an application for children that is easily
88.26understandable and does not exceed four pages in length.
88.27(e) The commissioner of human services shall present to the legislature, by January
88.2815, 2010, an implementation plan for the open enrollment period and online application
88.29process.
88.30(f) The commissioner of human services, after consulting with the commissioner of
88.31education, shall include on new and revised Minnesota health care program application
88.32forms, including electronic application forms, an authorization for consent that, if signed
88.33by the parent or legal representative of a child receiving health-related services through
88.34an individualized education program or an individual family services plan, would allow
88.35the school district or other provider of covered services to release information from the
88.36child's education record to the commissioner to permit the provider to be reimbursed by
89.1MinnesotaCare or medical assistance. The authorization for consent under this paragraph
89.2must conform to federal data practices law governing access to nonpublic data in a child's
89.3education record and indicate that the parent or legal representative of the child may
89.4withdraw his or her consent at any time without any consequence to the parent or child.
89.5The commissioner must include this authorization for consent on an application form at
89.6the time the commissioner reviews, revises, or replaces the form.
89.7EFFECTIVE DATE.This section is effective July 1, 2011.

89.8    Sec. 11. THIRD-PARTY BILLING.
89.9(a) To allow cost-effective billing of medical assistance for covered services that are
89.10not reimbursed by legally liable third party private payers, the commissioner of human
89.11services must:
89.12(1) summarize and document school district efforts to secure reimbursement from
89.13legally liable third parties; and
89.14(2) request initial and continuing waivers of the requirement to seek payment from a
89.15child's private health plan, consistent with Code of Federal Regulations, title 42, section
89.16433.139, chapter IV, part 433, based on the determination by the Centers for Medicare and
89.17Medicaid Services that this requirement is not cost-effective. The waiver request must
89.18seek permission for the commissioner to allow school districts to bill Medicaid alone,
89.19without first billing private payers, when a child has both public and private coverage.
89.20(b) If the Centers for Medicare and Medicaid Services does not grant ongoing
89.21permission to implement paragraph (a), clause (2), the commissioner of human services
89.22shall seek permission to implement clause (2) on a time-limited basis, with the opportunity
89.23to renew this time-limited permission as needed.
89.24EFFECTIVE DATE.This section is effective the day following final enactment.

89.25    Sec. 12. APPROPRIATIONS.
89.26    Subdivision 1. Department of Education. The sums indicated in this section are
89.27appropriated from the general fund to the Department of Education for the fiscal years
89.28designated.
89.29    Subd. 2. Special education; regular. For special education aid under Minnesota
89.30Statutes, section 125A.75:

89.31		$	801,034,000	.....	2012
89.32		$	824,025,000	.....	2013

90.1The 2012 appropriation includes $235,975,000 for 2011 and $565,059,000 for 2012.
90.2The 2013 appropriation includes $242,168,000 for 2012 and $581,857,000 for 2013.
90.3    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
90.4section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
90.5within the district boundaries for whom no district of residence can be determined:

90.6		$	1,648,000	.....	2012
90.7		$	1,745,000	.....	2013

90.8If the appropriation for either year is insufficient, the appropriation for the other
90.9year is available.
90.10    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
90.11services under Minnesota Statutes, section 125A.75, subdivision 1:

90.12		$	357,000	.....	2012
90.13		$	359,000	.....	2013

90.14The 2012 appropriation includes $107,000 for 2011 and $250,000 for 2012.
90.15The 2013 appropriation includes $107,000 for 2012 and $252,000 for 2013.
90.16    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
90.17Statutes, section 125A.79, subdivision 7:

90.18		$	112,977,000	.....	2012
90.19		$	117,289,000	.....	2013

90.20The 2012 appropriation includes $53,449,000 for 2011 and $59,528,000 for 2012.
90.21The 2013 appropriation includes $53,980,000 for 2012 and $61,899,000 for 2013.
90.22    Subd. 6. Court-placed special education revenue. For reimbursing serving
90.23school districts for unreimbursed eligible expenditures attributable to children placed in
90.24the serving school district by court action under Minnesota Statutes, section 125A.79,
90.25subdivision 4:

90.26		$	80,000	.....	2012
90.27		$	82,000	.....	2013

90.28    Subd. 7. Special education out-of-state tuition. For special education out-of-state
90.29tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

90.30		$	250,000	.....	2012
90.31		$	250,000	.....	2013

90.32    Sec. 13. REVISOR'S INSTRUCTION.
91.1The revisor of statutes shall substitute the term "individualized education program"
91.2or similar terms for "individual education plan" or similar terms wherever they appear
91.3in Minnesota Statutes and Minnesota Rules referring to the requirements relating to
91.4the federal Individuals with Disabilities Education Act. The revisor shall also make
91.5grammatical changes related to the changes in terms.

91.6ARTICLE 4

91.7FACILITIES AND TECHNOLOGIES

91.8    Section 1. Minnesota Statutes 2010, section 123B.54, is amended to read:
91.9123B.54 DEBT SERVICE APPROPRIATION.
91.10    (a) $17,161,000 $12,425,000 in fiscal year 2012 and $19,175,000, $20,458,000 in
91.11fiscal year 2013, $23,759,000 in fiscal year 2014, and $24,072,000 in fiscal year 2015 and
91.12later are appropriated from the general fund to the commissioner of education for payment
91.13of debt service equalization aid under section 123B.53.
91.14    (b) The appropriations in paragraph (a) must be reduced by the amount of any
91.15money specifically appropriated for the same purpose in any year from any state fund.

91.16    Sec. 2. Minnesota Statutes 2010, section 123B.57, is amended to read:
91.17123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
91.18    Subdivision 1. Health and safety program revenue application. (a) To receive
91.19health and safety revenue for any fiscal year a district must submit to the commissioner
91.20an a capital expenditure health and safety revenue application for aid and levy by the
91.21date determined by the commissioner. The application may be for hazardous substance
91.22removal, fire and life safety code repairs, labor and industry regulated facility and
91.23equipment violations, and health, safety, and environmental management, including
91.24indoor air quality management. The application must include a health and safety program
91.25budget adopted and confirmed by the school district board as being consistent with the
91.26district's health and safety policy under subdivision 2. The program budget must include
91.27the estimated cost, per building, of the program per Uniform Financial Accounting and
91.28Reporting Standards (UFARS) finance code, by fiscal year. Upon approval through the
91.29adoption of a resolution by each of an intermediate district's member school district
91.30boards and the approval of the Department of Education, a school district may include
91.31its proportionate share of the costs of health and safety projects for an intermediate
91.32district in its application.
91.33(b) Health and safety projects with an estimated cost of $500,000 or more per
91.34site are not eligible for health and safety revenue. Health and safety projects with an
92.1estimated cost of $500,000 or more per site that meet all other requirements for health and
92.2safety funding, are eligible for alternative facilities bonding and levy revenue according
92.3to section 123B.59. A school board shall not separate portions of a single project into
92.4components to qualify for health and safety revenue, and shall not combine unrelated
92.5projects into a single project to qualify for alternative facilities bonding and levy revenue.
92.6(c) The commissioner of education shall not make eligibility for health and safety
92.7revenue contingent on a district's compliance status, level of program development, or
92.8training. The commissioner shall not mandate additional performance criteria such as
92.9training, certifications, or compliance evaluations as a prerequisite for levy approval.
92.10    Subd. 2. Contents of program Health and safety policy. To qualify for health
92.11and safety revenue, a district school board must adopt a health and safety program policy.
92.12The program policy must include plans, where applicable, for hazardous substance
92.13removal, fire and life safety code repairs, regulated facility and equipment violations,
92.14and provisions for implementing a health and safety program that complies with health,
92.15safety, and environmental management, regulations and best practices including indoor
92.16air quality management.
92.17(a) A hazardous substance plan must contain provisions for the removal or
92.18encapsulation of asbestos from school buildings or property, asbestos-related repairs,
92.19cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
92.20and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
92.21fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
92.22If a district has already developed a plan for the removal or encapsulation of asbestos as
92.23required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
92.24may use a summary of that plan, which includes a description and schedule of response
92.25actions, for purposes of this section. The plan must also contain provisions to make
92.26modifications to existing facilities and equipment necessary to limit personal exposure
92.27to hazardous substances, as regulated by the federal Occupational Safety and Health
92.28Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
92.29determined by the commissioner to present a significant risk to district staff or student
92.30health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
92.31contamination.
92.32(b) A fire and life safety plan must contain a description of the current fire and life
92.33safety code violations, a plan for the removal or repair of the fire and life safety hazard,
92.34and a description of safety preparation and awareness procedures to be followed until the
92.35hazard is fully corrected.
93.1(c) A facilities and equipment violation plan must contain provisions to correct
93.2health and safety hazards as provided in Department of Labor and Industry standards
93.3pursuant to section 182.655.
93.4(d) A health, safety, and environmental management plan must contain a description
93.5of training, record keeping, hazard assessment, and program management as defined
93.6in section 123B.56.
93.7(e) A plan to test for and mitigate radon produced hazards.
93.8(f) A plan to monitor and improve indoor air quality.
93.9    Subd. 3. Health and safety revenue. A district's health and safety revenue
93.10for a fiscal year equals the district's alternative facilities levy under section 123B.59,
93.11subdivision 5, paragraph (b), plus the greater of zero or:
93.12    (1) the sum of (a) the total approved cost of the district's hazardous substance
93.13plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
93.14health and safety program for fiscal year 1990 through the fiscal year to which the levy
93.15is attributable, excluding expenditures funded with bonds issued under section 123B.59
93.16or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
93.17123B.61 ; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
93.186; and other federal, state, or local revenues, minus
93.19    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
93.201985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
93.21district's health and safety revenue under this subdivision, for years before the fiscal year
93.22to which the levy is attributable.
93.23    Subd. 4. Health and safety levy. To receive health and safety revenue, a district
93.24may levy an amount equal to the district's health and safety revenue as defined in
93.25subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
93.26dividing the adjusted net tax capacity of the district for the year preceding the year the
93.27levy is certified by the adjusted marginal cost pupil units in the district for the school year
93.28to which the levy is attributable, to $2,935.
93.29    Subd. 5. Health and safety aid. A district's health and safety aid is the difference
93.30between its health and safety revenue and its health and safety levy. If a district does not
93.31levy the entire amount permitted, health and safety aid must be reduced in proportion to
93.32the actual amount levied. Health and safety aid may not be reduced as a result of reducing
93.33a district's health and safety levy according to section 123B.79.
93.34    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may be
93.35used only for approved expenditures necessary to correct for the correction of fire and life
93.36safety hazards, or for the; design, purchase, installation, maintenance, and inspection of
94.1fire protection and alarm equipment; purchase or construction of appropriate facilities for
94.2the storage of combustible and flammable materials; inventories and facility modifications
94.3not related to a remodeling project to comply with lab safety requirements under section
94.4121A.31; inspection, testing, repair, removal or encapsulation, and disposal of asbestos
94.5from school buildings or property owned or being acquired by the district, asbestos-related
94.6repairs, asbestos-containing building materials; cleanup and disposal of polychlorinated
94.7biphenyls found in school buildings or property owned or being acquired by the district,
94.8or the; cleanup and disposal of hazardous and infectious wastes; cleanup, removal,
94.9disposal, and repairs related to storing heating fuel or transportation fuels such as alcohol,
94.10gasoline, fuel oil, and special fuel, as defined in section 296A.01, Minnesota; correction of
94.11occupational safety and health administration regulated facility and equipment hazards,;
94.12indoor air quality inspections, investigations, and testing; mold abatement,; upgrades or
94.13replacement of mechanical ventilation systems to meet American Society of Heating,
94.14Refrigerating and Air Conditioning Engineers standards and State Mechanical Code,;
94.15design, materials, and installation of local exhaust ventilation systems, including required
94.16make-up air for controlling regulated hazardous substances; correction of Department
94.17of Health Food Code and violations; correction of swimming pool hazards excluding
94.18depth correction,; playground safety inspections, repair of unsafe outdoor playground
94.19equipment, and the installation of impact surfacing materials; bleacher repair or rebuilding
94.20to comply with the order of a building code inspector under section 326B.112; testing and
94.21mitigation of elevated radon hazards; lead testing; copper in water testing; cleanup after
94.22major weather-related disasters or flooding; reduction of excessive organic and inorganic
94.23levels in wells and capping of abandoned wells; installation and testing of boiler backflow
94.24valves to prevent contamination of potable water; vaccinations, titers, and preventative
94.25supplies for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson
94.26Parents' Right to Know Act; automated external defibrillators and other emergency plan
94.27equipment and supplies specific to the district's emergency action plan; and health, safety,
94.28and environmental management costs associated with implementing the district's health
94.29and safety program including costs to establish and operate safety committees, in school
94.30buildings or property owned or being acquired by the district. Testing and calibration
94.31activities are permitted for existing mechanical ventilation systems at intervals no less than
94.32every five years. Health and safety revenue must not be used to finance a lease purchase
94.33agreement, installment purchase agreement, or other deferred payments agreement. Health
94.34and safety revenue must not be used for the construction of new facilities or the purchase
94.35of portable classrooms, for interest or other financing expenses, or for energy efficiency
94.36projects under section 123B.65. The revenue may not be used for a building or property or
95.1part of a building or property used for postsecondary instruction or administration or for a
95.2purpose unrelated to elementary and secondary education.
95.3    Subd. 6a. Restrictions on health and safety revenue. (b) Notwithstanding
95.4paragraph (a) subdivision 6, health and safety revenue must not be used:
95.5(1) to finance a lease purchase agreement, installment purchase agreement, or other
95.6deferred payments agreement;
95.7(2) for the construction of new facilities, remodeling of existing facilities, or the
95.8purchase of portable classrooms;
95.9(3) for interest or other financing expenses;
95.10(4) for energy-efficiency projects under section 123B.65, for a building or property
95.11or part of a building or property used for postsecondary instruction or administration or for
95.12a purpose unrelated to elementary and secondary education;
95.13(5) for replacement of building materials or facilities including roof, walls, windows,
95.14internal fixtures and flooring, nonhealth and safety costs associated with demolition of
95.15facilities, structural repair or replacement of facilities due to unsafe conditions, violence
95.16prevention and facility security, ergonomics, or public announcement systems and
95.17emergency communication devices; or
95.18(6) for building and heating, ventilating and air conditioning supplies, maintenance,
95.19and cleaning activities. All assessments, investigations, inventories, and support
95.20equipment not leading to the engineering or construction of a project shall be included in
95.21the health, safety, and environmental management costs in subdivision 8, paragraph (a).
95.22    Subd. 6b. Health and safety projects. (a) Health and safety revenue applications
95.23defined in subdivision 1 must be accompanied by a description of each project for which
95.24funding is being requested. Project descriptions must provide enough detail for an auditor
95.25to determine if the work qualifies for revenue. For projects other than fire and life
95.26safety projects, playground projects, and health, safety, and environmental management
95.27activities, a project description does not need to include itemized details such as material
95.28types, room locations, square feet, names, or license numbers. The commissioner
95.29may request supporting information and shall approve only projects that comply with
95.30subdivisions 6 and 8, as defined by the Department of Education.
95.31(b) Districts may request funding for allowable projects based on self-assessments,
95.32safety committee recommendations, insurance inspections, management assistance
95.33reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
95.34(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
95.35size for projects authorized by this subdivision is not limited and may include related
96.1work in multiple facilities. Health and safety management costs from subdivision 8 may
96.2be reported as a single project.
96.3(c) All costs directly related to a project shall be reported in the appropriate Uniform
96.4Financial Accounting and Reporting Standards (UFARS) finance code.
96.5(d) For fire and life safety egress and all other projects exceeding $20,000, cited
96.6under Minnesota Fire Code, a fire marshal plan review is required.
96.7(e) Districts shall update project estimates with actual expenditures for each
96.8fiscal year. If a project's final cost is significantly higher than originally approved, the
96.9commissioner may request additional supporting information.
96.10    Subd. 6c. Appeals process. In the event a district is denied funding approval for
96.11a project the district believes complies with subdivisions 6 and 8, and is not otherwise
96.12excluded, a district may appeal the decision. All such requests must be in writing. The
96.13commissioner shall respond in writing. A written request must contain the following:
96.14project number; description and amount; reason for denial; unresolved questions for
96.15consideration; reasons for reconsideration; and a specific statement of what action the
96.16district is requesting.
96.17    Subd. 7. Proration. In the event that the health and safety aid available for any year
96.18is prorated, a district having its aid prorated may levy an additional amount equal to the
96.19amount not paid by the state due to proration.
96.20    Subd. 8. Health, safety, and environmental management cost. (a) "Health, safety,
96.21and environmental management" is defined in section 123B.56.
96.22(b) A district's cost for health, safety, and environmental management is limited to
96.23the lesser of:
96.24(1) actual cost to implement their plan; or
96.25(2) an amount determined by the commissioner, based on enrollment, building
96.26age, and size.
96.27(b) (c) The department may contract with regional service organizations, private
96.28contractors, Minnesota Safety Council, or state agencies to provide management
96.29assistance to school districts for health and safety capital projects. Management assistance
96.30is the development of written programs for the identification, recognition and control of
96.31hazards, and prioritization and scheduling of district health and safety capital projects.
96.32The department commissioner shall not mandate management assistance or exclude
96.33private contractors from the opportunity to provide any health and safety services to
96.34school districts.
96.35(c) Notwithstanding paragraph (b), the department may approve revenue, up to
96.36the limit defined in paragraph (a) for districts having an approved health, safety, and
97.1environmental management plan that uses district staff to accomplish coordination and
97.2provided services.
97.3EFFECTIVE DATE.This section is effective July 1, 2011.

97.4    Sec. 3. Minnesota Statutes 2010, section 123B.63, subdivision 3, is amended to read:
97.5    Subd. 3. Capital project levy referendum. (a) A district may levy the local tax
97.6rate approved by a majority of the electors voting on the question to provide funds for
97.7an approved project. The election must take place no more than five years before the
97.8estimated date of commencement of the project. The referendum must be held on a date
97.9set by the board. A referendum for a project not receiving a positive review and comment
97.10by the commissioner under section 123B.71 must be approved by at least 60 percent of
97.11the voters at the election.
97.12(b) The referendum may be called by the school board and may be held:
97.13    (1) separately, before an election for the issuance of obligations for the project
97.14under chapter 475; or
97.15    (2) in conjunction with an election for the issuance of obligations for the project
97.16under chapter 475; or
97.17    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the
97.18capital project levy and the issuance of obligations for the project under chapter 475. Any
97.19obligations authorized for a project may be issued within five years of the date of the
97.20election.
97.21    (c) The ballot must provide a general description of the proposed project, state the
97.22estimated total cost of the project, state whether the project has received a positive or
97.23negative review and comment from the commissioner, state the maximum amount of the
97.24capital project levy as a percentage of net tax capacity, state the amount that will be raised
97.25by that local tax rate in the first year it is to be levied, and state the maximum number of
97.26years that the levy authorization will apply.
97.27    The ballot must contain a textual portion with the information required in this
97.28section and a question stating substantially the following:
97.29    "Shall the capital project levy proposed by the board of .......... School District
97.30No. .......... be approved?"
97.31    If approved, the amount provided by the approved local tax rate applied to the net
97.32tax capacity for the year preceding the year the levy is certified may be certified for the
97.33number of years, not to exceed ten, approved.
97.34(d) If the district proposes a new capital project to begin at the time the existing
97.35capital project expires and at the same maximum tax rate, the general description on the
98.1ballot may state that the capital project levy is being renewed and that the tax rate is not
98.2being increased from the previous year's rate. An election to renew authority under this
98.3paragraph may be called at any time that is otherwise authorized by this subdivision. The
98.4ballot notice required under section 275.60 may be modified to read:
98.5"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING
98.6TO RENEW AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS
98.7SCHEDULED TO EXPIRE."
98.8    (e) In the event a conjunctive question proposes to authorize both the capital project
98.9levy and the issuance of obligations for the project, appropriate language authorizing the
98.10issuance of obligations must also be included in the question.
98.11    (f) The district must notify the commissioner of the results of the referendum.
98.12EFFECTIVE DATE.This section is effective the day following final enactment for
98.13referenda conducted on or after the 53rd day following final enactment.

98.14    Sec. 4. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
98.15    Subdivision 1. To lease building or land. (a) When an independent or a special
98.16school district or a group of independent or special school districts finds it economically
98.17advantageous to rent or lease a building or land for any instructional purposes or for
98.18school storage or furniture repair, and it determines that the operating capital revenue
98.19authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
98.20apply to the commissioner for permission to make an additional capital expenditure levy
98.21for this purpose. An application for permission to levy under this subdivision must contain
98.22financial justification for the proposed levy, the terms and conditions of the proposed
98.23lease, and a description of the space to be leased and its proposed use.
98.24    (b) The criteria for approval of applications to levy under this subdivision must
98.25include: the reasonableness of the price, the appropriateness of the space to the proposed
98.26activity, the feasibility of transporting pupils to the leased building or land, conformity
98.27of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
98.28the proposed lease to the space needs and the financial condition of the district. The
98.29commissioner must not authorize a levy under this subdivision in an amount greater than
98.30the cost to the district of renting or leasing a building or land for approved purposes.
98.31The proceeds of this levy must not be used for custodial or other maintenance services.
98.32A district may not levy under this subdivision for the purpose of leasing or renting a
98.33district-owned building or site to itself.
98.34    (c) For agreements finalized after July 1, 1997, a district may not levy under this
98.35subdivision for the purpose of leasing: (1) a newly constructed building used primarily
99.1for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
99.2building addition or additions used primarily for regular kindergarten, elementary, or
99.3secondary instruction that contains more than 20 percent of the square footage of the
99.4previously existing building.
99.5    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
99.6purpose of leasing or renting a district-owned building or site to itself only if the amount
99.7is needed by the district to make payments required by a lease purchase agreement,
99.8installment purchase agreement, or other deferred payments agreement authorized by law,
99.9and the levy meets the requirements of paragraph (c). A levy authorized for a district by
99.10the commissioner under this paragraph may be in the amount needed by the district to
99.11make payments required by a lease purchase agreement, installment purchase agreement,
99.12or other deferred payments agreement authorized by law, provided that any agreement
99.13include a provision giving the school districts the right to terminate the agreement
99.14annually without penalty.
99.15    (e) The total levy under this subdivision for a district for any year must not exceed
99.16$150 times the resident pupil units for the fiscal year to which the levy is attributable.
99.17    (f) For agreements for which a review and comment have been submitted to the
99.18Department of Education after April 1, 1998, the term "instructional purpose" as used in
99.19this subdivision excludes expenditures on stadiums.
99.20    (g) The commissioner of education may authorize a school district to exceed the
99.21limit in paragraph (e) if the school district petitions the commissioner for approval. The
99.22commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
99.23for not more than five years if the district meets the following criteria:
99.24    (1) the school district has been experiencing pupil enrollment growth in the
99.25preceding five years;
99.26    (2) the purpose of the increased levy is in the long-term public interest;
99.27    (3) the purpose of the increased levy promotes colocation of government services;
99.28and
99.29    (4) the purpose of the increased levy is in the long-term interest of the district by
99.30avoiding over construction of school facilities.
99.31    (h) A school district that is a member of an intermediate school district may include
99.32in its authority under this section the costs associated with leases of administrative and
99.33classroom space for intermediate school district programs. This authority must not exceed
99.34$43 times the adjusted marginal cost pupil units of the member districts. This authority is
99.35in addition to any other authority authorized under this section.
100.1    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
100.22012 to 2022, a district that is a member of the "Technology and Information Education
100.3Systems" data processing joint board, that finds it economically advantageous to enter
100.4into a lease purchase agreement for to finance improvements to a building for a group of
100.5school districts or special school districts for staff development purposes, may levy for
100.6its portion of lease costs attributed to the district within the total levy limit in paragraph
100.7(e). The total levy authority under this paragraph shall not exceed $632,000 each year.
100.8EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.

100.9    Sec. 5. Laws 1999, chapter 241, article 4, section 25, is amended by adding a
100.10subdivision to read:
100.11    Subd. 3. Independent School District No. 284, Wayzata. Independent School
100.12District No. 284, Wayzata, is eligible for the alternative facilities revenue program under
100.13Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
100.14in the district.
100.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
100.16and later.

100.17    Sec. 6. EARLY REPAYMENT.
100.18A school district that received a maximum effort capital loan prior to January 1,
100.191997, may repay the full outstanding original principal on its capital loan prior to July 1,
100.202012, and the liability of the district on the loan is satisfied and discharged and interest
100.21on the loan ceases.
100.22EFFECTIVE DATE.This section is effective the day following final enactment.

100.23    Sec. 7. HEALTH AND SAFETY POLICY.
100.24Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
100.25that has not yet adopted a health and safety policy by September 30, 2011, may submit an
100.26application for health and safety revenue for taxes payable in 2012 in the form and manner
100.27specified by the commissioner of education.
100.28EFFECTIVE DATE.This section is effective the day following final enactment.

100.29    Sec. 8. APPROPRIATIONS.
101.1    Subdivision 1. Department of Education. The sums indicated in this section are
101.2appropriated from the general fund to the Department of Education for the fiscal years
101.3designated.
101.4    Subd. 2. Health and safety revenue. For health and safety aid according to
101.5Minnesota Statutes, section 123B.57, subdivision 5:

101.6		$	123,000	.....	2012
101.7		$	113,000	.....	2013

101.8The 2012 appropriation includes $39,000 for 2011 and $84,000 for 2012.
101.9The 2013 appropriation includes $36,000 for 2012 and $77,000 for 2013.
101.10    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
101.11Statutes, section 123B.53, subdivision 6:

101.12		$	12,425,000	.....	2012
101.13		$	20,458,000	.....	2013

101.14The 2012 appropriation includes $2,604,000 for 2011 and $9,821,000 for 2012.
101.15The 2013 appropriation includes $4,208,000 for 2012 and $16,250,000 for 2013.
101.16    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
101.17according to Minnesota Statutes, section 123B.59, subdivision 1:

101.18		$	19,287,000	.....	2012
101.19		$	19,287,000	.....	2013

101.20The 2012 appropriation includes $5,786,000 for 2011 and $13,501,000 for 2012.
101.21The 2013 appropriation includes $5,786,000 for 2012 and $13,501,000 for 2013.
101.22    Subd. 5. Equity in telecommunications access. For equity in telecommunications
101.23access:

101.24		$	3,750,000	.....	2012
101.25		$	3,750,000	.....	2013

101.26If the appropriation amount is insufficient, the commissioner shall reduce the
101.27reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
101.28revenue for fiscal years 2012 and 2013 shall be prorated.
101.29Any balance in the first year does not cancel but is available in the second year.
101.30    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
101.31Minnesota Statutes, section 123B.591, subdivision 4:

101.32		$	2,494,000	.....	2012
101.33		$	3,035,000	.....	2013

102.1The 2012 appropriation includes $676,000 for 2011 and $1,818,000 for 2012.
102.2The 2013 appropriation includes $778,000 for 2012 and $2,257,000 for 2013.

102.3ARTICLE 5

102.4NUTRITION AND ACCOUNTING

102.5    Section 1. Minnesota Statutes 2010, section 16A.152, subdivision 2, is amended to
102.6read:
102.7    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
102.8fund revenues and expenditures, the commissioner of management and budget determines
102.9that there will be a positive unrestricted budgetary general fund balance at the close of
102.10the biennium, the commissioner of management and budget must allocate money to the
102.11following accounts and purposes in priority order:
102.12    (1) the cash flow account established in subdivision 1 until that account reaches
102.13$350,000,000;
102.14    (2) the budget reserve account established in subdivision 1a until that account
102.15reaches $653,000,000;
102.16    (3) the amount necessary to increase the aid payment schedule for school district
102.17aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
102.18nearest tenth of a percent without exceeding the amount available and with any remaining
102.19funds deposited in the budget reserve;
102.20    (4) the amount necessary to restore all or a portion of the net aid reductions under
102.21section 127A.441 and to reduce the property tax revenue recognition shift under section
102.22123B.75, subdivision 5 , paragraph (a), and Laws 2003, First Special Session chapter 9,
102.23article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
102.2420, by the same amount;
102.25(5) to the state airports fund, the amount necessary to restore the amount transferred
102.26from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
102.27subdivision 5; and
102.28(6) to the fire safety account in the special revenue fund, the amount necessary to
102.29restore transfers from the account to the general fund made in Laws 2010.
102.30    (b) The amounts necessary to meet the requirements of this section are appropriated
102.31from the general fund within two weeks after the forecast is released or, in the case of
102.32transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
102.33schedules otherwise established in statute.
102.34    (c) The commissioner of management and budget shall certify the total dollar
102.35amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
103.1education. The commissioner of education shall increase the aid payment percentage and
103.2reduce the property tax shift percentage by these amounts and apply those reductions to
103.3the current fiscal year and thereafter.
103.4EFFECTIVE DATE.This section is effective the day following final enactment.

103.5    Sec. 2. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
103.6    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
103.7year, the school district must recognize as revenue, in the fund for which the levy was
103.8made, the lesser of:
103.9(1) the sum of May, June, and July school district tax settlement revenue received in
103.10that calendar year, plus general education aid according to section 126C.13, subdivision
103.114 , received in July and August of that calendar year; or
103.12(2) the sum of:
103.13(i) 31 percent of the referendum levy certified according to section 126C.17, in
103.14calendar year 2000; and
103.15(ii) the entire amount of the levy certified in the prior calendar year according to
103.16section 124D.86, subdivision 4, for school districts receiving revenue under sections
103.17124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
103.18(a), and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
103.19subdivision 6 ; plus
103.20(iii) zero percent of the amount of the levy certified in the prior calendar year for the
103.21school district's general and community service funds, plus or minus auditor's adjustments,
103.22not including the levy portions that are assumed by the state, that remains after subtracting
103.23the referendum levy certified according to section 126C.17 and the amount recognized
103.24according to item (ii).
103.25(b) For fiscal year 2011 and later years, in June of each year, the school district must
103.26recognize as revenue, in the fund for which the levy was made, the lesser of:
103.27(1) the sum of May, June, and July school district tax settlement revenue received in
103.28that calendar year, plus general education aid according to section 126C.13, subdivision
103.294, received in July and August of that calendar year; or
103.30(2) the sum of:
103.31(i) the greater of 48.6 percent of the referendum levy certified according to section
103.32126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
103.33according to section 126C.17 in calendar year 2000; plus
103.34(ii) the entire amount of the levy certified in the prior calendar year according to
103.35section 124D.86, subdivision 4, for school districts receiving revenue under sections
104.1124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
104.2(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
104.3subdivision 6; plus
104.4(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
104.5school district's general and community service funds, plus or minus auditor's adjustments,
104.6not including the levy portions that are assumed by the state, that remains after subtracting
104.7the referendum levy certified according to section 126C.17 and the amount recognized
104.8according to item (ii).
104.9EFFECTIVE DATE.This section is effective for fiscal year 2011 and later.

104.10    Sec. 3. Minnesota Statutes 2010, section 127A.441, is amended to read:
104.11127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
104.12    (a) Each year, the state aids payable to any school district for that fiscal year that are
104.13recognized as revenue in the school district's general and community service funds shall
104.14be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
104.15prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
104.16the amount the district recognized as revenue for the current fiscal year pursuant to section
104.17123B.75, subdivision 5 , paragraph (a) or (b). For purposes of making the aid adjustments
104.18under this section, the amount the district recognizes as revenue for either the prior fiscal
104.19year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
104.20shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
104.21districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
104.22126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2;
104.23126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall
104.24not be adjusted pursuant to this section.
104.25(b) The commissioner shall schedule the timing of the adjustments under paragraph
104.26(a) as close to the end of the fiscal year as possible.
104.27The school district shall be notified of the amount of the adjustment made to each
104.28payment pursuant to this section.
104.29EFFECTIVE DATE.This section is effective for fiscal year 2011 and later.

104.30    Sec. 4. Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:
104.31    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
104.32treasurers pursuant to section 276.10, apportionments from the school endowment fund
104.33pursuant to section 127A.33, apportionments by the county auditor pursuant to section
105.1127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
105.2pursuant to chapter 298.
105.3(b) "Cumulative amount guaranteed" means the product of
105.4(1) the cumulative disbursement percentage shown in subdivision 3; times
105.5(2) the sum of
105.6(i) the current year aid payment percentage of the estimated aid and credit
105.7entitlements paid according to subdivision 13; plus
105.8(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
105.9(iii) the other district receipts.
105.10(c) "Payment date" means the date on which state payments to districts are made
105.11by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
105.12or a weekday which is a legal holiday, the payment shall be made on the immediately
105.13preceding business day. The commissioner may make payments on dates other than
105.14those listed in subdivision 3, but only for portions of payments from any preceding
105.15payment dates which could not be processed by the electronic funds transfer method due
105.16to documented extenuating circumstances.
105.17(d) The current year aid payment percentage equals 73 in fiscal year 2010, and 70
105.18in fiscal year 2011, and 90 in fiscal years 2012 and later.

105.19    Sec. 5. Minnesota Statutes 2010, section 127A.45, subdivision 3, is amended to read:
105.20    Subd. 3. Payment dates and percentages. (a) The commissioner shall pay to a
105.21district on the dates indicated an amount computed as follows: the cumulative amount
105.22guaranteed minus the sum of (1) the district's other district receipts through the current
105.23payment, and (2) the aid and credit payments through the immediately preceding payment.
105.24For purposes of this computation, the payment dates and the cumulative disbursement
105.25percentages are as follows:

105.26		Payment date	Percentage
105.27	Payment 1	July 15:	5.5
105.28	Payment 2	July 30:	8.0
105.29	Payment 3	August 15:	17.5
105.30	Payment 4	August 30:	20.0
105.31	Payment 5	September 15:	22.5
105.32	Payment 6	September 30:	25.0
105.33	Payment 7	October 15:	27.0
105.34	Payment 8	October 30:	30.0
105.35	Payment 9	November 15:	32.5
105.36	Payment 10	November 30:	36.5
105.37	Payment 11	December 15:	42.0
106.1	Payment 12	December 30:	45.0
106.2	Payment 13	January 15:	50.0
106.3	Payment 14	January 30:	54.0
106.4	Payment 15	February 15:	58.0
106.5	Payment 16	February 28:	63.0
106.6	Payment 17	March 15:	68.0
106.7	Payment 18	March 30:	74.0
106.8	Payment 19	April 15:	78.0
106.9	Payment 20	April 30:	85.0
106.10	Payment 21	May 15:	90.0
106.11	Payment 22	May 30:	95.0
106.12	Payment 23	June 20:	100.0

106.13(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
106.14to a school district on the dates indicated an amount computed as follows:

106.15 106.16	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
106.17 106.18	Payment 4	August 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
106.19 106.20	Payment 6	September 30: 40 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
106.21 106.22	Payment 8	October 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

106.23(c) In addition to the amounts paid under paragraph (a), the commissioner shall pay
106.24to a charter school on the dates indicated an amount computed as follows:

106.25 106.26	Payment 1	July 15: 90 percent of the final adjustment for the prior fiscal year for all aid entitlements
106.27 106.28	Payment 8	October 30: 10 percent of the final adjustment for the prior fiscal year for all aid entitlements

106.29EFFECTIVE DATE.This section is effective July 1, 2011.

106.30    Sec. 6. Minnesota Statutes 2010, section 127A.45, is amended by adding a subdivision
106.31to read:
106.32    Subd. 3a. Charter school payment dates. The board of directors of a charter
106.33school annually may request that the commissioner of education advance the aid
106.34payment schedule under subdivision 3, paragraph (a), if the board can demonstrate to the
106.35commissioner's satisfaction that expedited aid payment percentages under the schedule
106.36would save the charter school significant interest expenses on cash flow borrowing.
106.37The commissioner may determine revised payment percentages and shall notify each
106.38qualifying charter school of the new aid payment percentages.
107.1EFFECTIVE DATE.This section is effective July 1, 2011.

107.2    Sec. 7. LEVY AID RECOGNITION TIMING.
107.3Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
107.4commissioner of education shall schedule the portion of the aid adjustment for fiscal year
107.52011 attributable to the exclusion of levy portions assumed by the state from the levy
107.6recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
107.7with the final payment for fiscal year 2011 made on October 30, 2011.
107.8EFFECTIVE DATE.This section is effective the day following final enactment.

107.9    Sec. 8. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY.
107.10(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
107.11years 2012 and 2013 only, the commissioner must approve a request for a fund transfer
107.12if the transfer does not increase state aid obligations to the district or result in additional
107.13property tax authority for the district. This section does not permit transfers from the
107.14community service fund or the food service fund.
107.15(b) A school board may approve a fund transfer under paragraph (a) only after
107.16adopting a resolution stating the fund transfer will not diminish instructional opportunities
107.17for students.
107.18EFFECTIVE DATE.This section is effective the day following final enactment.

107.19    Sec. 9. APPROPRIATIONS.
107.20    Subdivision 1. Department of Education. The sums indicated in this section are
107.21appropriated from the general fund to the Department of Education for the fiscal years
107.22designated.
107.23    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
107.24section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

107.25		$	12,626,000	.....	2012
107.26		$	12,878,000	.....	2013

107.27    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
107.28Statutes, section 124D.1158:

107.29		$	4,759,000	.....	2012
107.30		$	4,875,000	.....	2013

108.1    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
108.2section 124D.118:

108.3		$	1,084,000	.....	2012
108.4		$	1,105,000	.....	2013

108.5    Subd. 5. Summer food service replacement aid. For summer food service
108.6replacement aid under Minnesota Statutes, section 124D.119:

108.7		$	150,000	.....	2012
108.8		$	150,000	.....	2013

108.9    Sec. 10. REPEALER.
108.10Minnesota Statutes 2010, section 127A.46, is repealed.
108.11EFFECTIVE DATE.This section is effective the day following final enactment.

108.12ARTICLE 6

108.13LIBRARIES

108.14    Section 1. Minnesota Statutes 2010, section 134.195, subdivision 8, is amended to read:
108.15    Subd. 8. Funding. The ordinance or resolution establishing the library shall
108.16provide for joint financing of the library by the school district and the city. The city shall
108.17provide at least the minimum dollar amount established in section 134.34, subdivision
108.181 . The school district shall provide money for staff and materials for the library at least
108.19in proportion to the use related to curriculum, as determined by the circulation statistics
108.20of the library. Neither the city nor the school district shall reduce the financial support
108.21provided for operation of library or media services below the level of support provided in
108.22the preceding year.
108.23EFFECTIVE DATE.This section is effective for revenue retroactive to fiscal
108.24year 2011 and later.

108.25    Sec. 2. APPROPRIATIONS.
108.26    Subdivision 1. Department of Education. The sums indicated in this section are
108.27appropriated from the general fund to the Department of Education for the fiscal years
108.28designated.
108.29    Subd. 2. Basic system support. For basic system support grants under Minnesota
108.30Statutes, section 134.355:

109.1		$	13,570,000	.....	2012
109.2		$	13,570,000	.....	2013

109.3The 2012 appropriation includes $4,071,000 for 2011 and $9,499,000 for 2012.
109.4The 2013 appropriation includes $4,071,000 for 2012 and $9,499,000 for 2013.
109.5    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
109.6Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

109.7		$	1,300,000	.....	2012
109.8		$	1,300,000	.....	2013

109.9The 2012 appropriation includes $390,000 for 2011 and $910,000 for 2012.
109.10The 2013 appropriation includes $390,000 for 2012 and $910,000 for 2013.
109.11    Subd. 4. Electronic library for Minnesota. For statewide licenses to online
109.12databases selected in cooperation with the Minnesota Office of Higher Education for
109.13school media centers, public libraries, state government agency libraries, and public
109.14or private college or university libraries:

109.15		$	900,000	.....	2012
109.16		$	900,000	.....	2013

109.17Any balance in the first year does not cancel but is available in the second year.
109.18    Subd. 5. Regional library telecommunications aid. For regional library
109.19telecommunications aid under Minnesota Statutes, section 134.355:

109.20		$	2,300,000	.....	2012
109.21		$	2,300,000	.....	2013

109.22The 2012 appropriation includes $690,000 for 2011 and $1,610,000 for 2012.
109.23The 2013 appropriation includes $690,000 for 2012 and $1,610,000 for 2013.

109.24ARTICLE 7

109.25EARLY CHILDHOOD EDUCATION

109.26    Section 1. APPROPRIATIONS.
109.27    Subdivision 1. Department of Education. The sums indicated in this section are
109.28appropriated from the general fund to the Department of Education for the fiscal years
109.29designated.
109.30    Subd. 2. School readiness. For revenue for school readiness programs under
109.31Minnesota Statutes, sections 124D.15 and 124D.16:

110.1		$	10,095,000	.....	2012
110.2		$	10,095,000	.....	2013

110.3The 2012 appropriation includes $3,028,000 for 2011 and $7,067,000 for 2012.
110.4The 2013 appropriation includes $3,028,000 for 2012 and $7,067,000 for 2013.
110.5    Subd. 3. Early childhood family education aid. For early childhood family
110.6education aid under Minnesota Statutes, section 124D.135:

110.7		$	22,466,000	.....	2012
110.8		$	23,015,000	.....	2013

110.9The 2012 appropriation includes $6,542,000 for 2011 and $15,924,000 for 2012.
110.10The 2013 appropriation includes $6,824,000 for 2012 and $16,191,000 for 2013.
110.11    Subd. 4. Health and developmental screening aid. For health and developmental
110.12screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

110.13		$	3,568,000	.....	2012
110.14		$	3,547,000	.....	2013

110.15The 2012 appropriation includes $1,066,000 for 2011 and $2,502,000 for 2012.
110.16The 2013 appropriation includes $1,072,000 for 2012 and $2,475,000 for 2013.
110.17    Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
110.18section 119A.52:

110.19		$	20,100,000	.....	2012
110.20		$	20,100,000	.....	2013

110.21    Subd. 6. Educate parents partnership. For the educate parents partnership under
110.22Minnesota Statutes, section 124D.129:

110.23		$	49,000	.....	2012
110.24		$	49,000	.....	2013

110.25    Subd. 7. Kindergarten entrance assessment initiative and intervention
110.26program. For the kindergarten entrance assessment initiative and intervention program
110.27under Minnesota Statutes, section 124D.162:

110.28		$	281,000	.....	2012
110.29		$	281,000	.....	2013

111.1ARTICLE 8

111.2PREVENTION

111.3    Section 1. Minnesota Statutes 2010, section 124D.19, subdivision 3, is amended to
111.4read:
111.5    Subd. 3. Community education director. (a) Except as provided under paragraphs
111.6(b) and (c), each board shall employ a licensed community education director. The board
111.7shall submit the name of the person who is serving as director of community education
111.8under this section on the district's annual community education report to the commissioner.
111.9(b) A board may apply to the Minnesota Board of School Administrators under
111.10Minnesota Rules, part 3512.3500, subpart 9, for authority to use an individual who is not
111.11licensed as a community education director.
111.12(c) A board of a district with a total population of 2,000 7,500 or less may identify
111.13an employee who holds a valid Minnesota principal or superintendent license under
111.14Minnesota Rules, chapter 3512, to serve as director of community education. To be
111.15eligible for an exception under this paragraph, the board shall certify in writing to the
111.16commissioner that the district has not placed a licensed director of community education
111.17on unrequested leave.
111.18EFFECTIVE DATE.This section is effective the day following final enactment.

111.19    Sec. 2. APPROPRIATION.
111.20    Subdivision 1. Department of Education. The sums indicated in this section are
111.21appropriated from the general fund to the Department of Education for the fiscal years
111.22designated.
111.23    Subd. 2. Community education aid. For community education aid under
111.24Minnesota Statutes, section 124D.20:

111.25		$	478,000	.....	2012
111.26		$	694,000	.....	2013

111.27The 2012 appropriation includes $134,000 for 2011 and $344,000 for 2012.
111.28The 2013 appropriation includes $147,000 for 2012 and $547,000 for 2013.
111.29    Subd. 3. Adults with disabilities program aid. For adults with disabilities
111.30programs under Minnesota Statutes, section 124D.56:

111.31		$	710,000	.....	2012
111.32		$	710,000	.....	2013

111.33The 2012 appropriation includes $213,000 for 2011 and $497,000 for 2012.
112.1The 2013 appropriation includes $213,000 for 2012 and $497,000 for 2013.
112.2    Subd. 4. Hearing-impaired adults. For programs for hearing-impaired adults
112.3under Minnesota Statutes, section 124D.57:

112.4		$	70,000	.....	2012
112.5		$	70,000	.....	2013

112.6    Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
112.7section 124D.22:

112.8		$	1,000	.....	2012
112.9		$	1,000	.....	2013

112.10The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
112.11The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.

112.12ARTICLE 9

112.13SELF-SUFFICIENCY AND LIFELONG LEARNING

112.14    Section 1. Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to
112.15read:
112.16    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
112.17education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
112.18aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
112.19the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
112.20section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
112.212007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
112.22year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
112.23subdivision 3 . The state total adult basic education aid for fiscal year 2008 2011 equals
112.24$40,650,000 $44,419,000, plus any amount that is not paid during the previous fiscal
112.25year as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
112.26subdivision 3 . The state total adult basic education aid for later fiscal years equals:
112.27    (1) the state total adult basic education aid for the preceding fiscal year plus any
112.28amount that is not paid for during the previous fiscal year, as a result of adjustments under
112.29subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
112.30    (2) the lesser of:
112.31    (i) 1.03 1.01; or
112.32    (ii) the average growth in state total contact hours over the prior ten program years.
113.1    Beginning in fiscal year 2002, two percent of the state total adult basic education
113.2aid must be set aside for adult basic education supplemental service grants under section
113.3124D.522 .
113.4    (b) The state total adult basic education aid, excluding basic population aid, equals
113.5the difference between the amount computed in paragraph (a), and the state total basic
113.6population aid under subdivision 2.
113.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
113.8and later.

113.9    Sec. 2. Minnesota Statutes 2010, section 124D.531, subdivision 4, is amended to read:
113.10    Subd. 4. Adult basic education program aid limit. (a) Notwithstanding
113.11subdivisions 2 and 3, the total adult basic education aid for a program per prior year
113.12contact hour must not exceed $22 per prior year contact hour computed under subdivision
113.133, clause (2).
113.14    (b) For fiscal year 2006 and fiscal year 2007, the aid for a program under subdivision
113.153, clause (2), adjusted for changes in program membership, must not exceed the aid for
113.16that program under subdivision 3, clause (2), for the first preceding fiscal year by more
113.17than the greater of eight percent or $10,000.
113.18    (c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2),
113.19adjusted for changes in program membership, shall not be limited.
113.20    (d) For fiscal year 2009 and later, The aid for a program under subdivision 3,
113.21clause (2), adjusted for changes in program membership, must not exceed the aid for
113.22that program under subdivision 3, clause (2), for the first preceding fiscal year by more
113.23than the greater of 11 percent or $10,000.
113.24    (e) (c) Adult basic education aid is payable to a program for unreimbursed costs
113.25occurring in the program year as defined in section 124D.52, subdivision 3.
113.26    (f) (d) Any adult basic education aid that is not paid to a program because of the
113.27program aid limitation under paragraph (a) must be added to the state total adult basic
113.28education aid for the next fiscal year under subdivision 1. Any adult basic education aid
113.29that is not paid to a program because of the program aid limitations under paragraph
113.30(b), (c), or (d), must be reallocated among programs by adjusting the rate per contact hour
113.31under subdivision 3, clause (2).

113.32    Sec. 3. APPROPRIATIONS.
114.1    Subdivision 1. Department of Education. The sums indicated in this section are
114.2appropriated from the general fund to the Department of Education for the fiscal years
114.3designated.
114.4    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
114.5Statutes, section 124D.531:

114.6		$	44,763,000	.....	2012
114.7		$	45,168,000	.....	2013

114.8The 2012 appropriation includes $13,365,000 for 2011 and $31,398,000 for 2012.
114.9The 2013 appropriation includes $13,458,000 for 2012 and $31,712,000 for 2013.
114.10    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests under
114.11Minnesota Statutes, section 124D.55:

114.12		$	125,000	.....	2012
114.13		$	125,000	.....	2013

114.14ARTICLE 10

114.15STATE AGENCIES

114.16    Section 1. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
114.17    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
114.18indicated in this section are appropriated from the general fund to the Department of
114.19Education for the fiscal years designated.
114.20    Subd. 2. Department. (a) For the Department of Education:

114.21		$	18,820,000	.....	2012
114.22		$	18,820,000	.....	2013

114.23Any balance in the first year does not cancel but is available in the second year.
114.24(b) $260,000 each year is for the Minnesota Children's Museum.
114.25(c) $41,000 each year is for the Minnesota Academy of Science.
114.26(d) $50,000 each year is for the Duluth Children's Museum.
114.27(e) $618,000 each year is for the Board of Teaching. Any balance in the first year
114.28does not cancel but is available in the second year.
114.29(f) $167,000 each year is for the Board of School Administrators. Any balance in
114.30the first year does not cancel but is available in the second year.
114.31(g) The expenditures of federal grants and aids as shown in the biennial budget
114.32document and its supplements are approved and appropriated and shall be spent as
114.33indicated.
115.1(h) None of the amounts appropriated under this subdivision may be used for
115.2Minnesota's Washington, D.C. office.
115.3    Subd. 3. Board of Teaching; licensure by portfolio. For the Board of Teaching
115.4for licensure by portfolio:

115.5		$	30,000	.....	2012
115.6		$	30,000	.....	2013

115.7This appropriation is from the educator licensure portfolio account of the special
115.8revenue fund.

115.9    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
115.10The sums indicated in this section are appropriated from the general fund to the
115.11Minnesota State Academies for the Deaf and Blind for the fiscal years designated:

115.12		$	11,603,000	.....	2012
115.13		$	11,603,000	.....	2013

115.14Any balance in the first year does not cancel but is available in the second year.

115.15    Sec. 3. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
115.16The sums in this section are appropriated from the general fund to the Perpich
115.17Center for Arts Education for the fiscal years designated:

115.18		$	6,733,000	.....	2012
115.19		$	6,733,000	.....	2013

115.20Any balance in the first year does not cancel, but is available in the second year.

115.21ARTICLE 11

115.22FORECAST ADJUSTMENT

115.23A. GENERAL EDUCATION

115.24    Section 1. Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by
115.25Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:
115.26    Subd. 2. General education aid. For general education aid under Minnesota
115.27Statutes, section 126C.13, subdivision 4:

115.28		$	4,291,422,000	.....	2010
115.29 115.30		$	4,776,884,000 4,832,264,000	.....	2011

115.31The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for
115.322010.
116.1The 2011 appropriation includes $1,363,306,000 for 2010 and $3,413,578,000
116.2$3,468,958,000 for 2011.

116.3    Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:
116.4    Subd. 3. Enrollment options transportation. For transportation of pupils attending
116.5postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
116.6of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

116.7		$	48,000	.....	2010
116.8 116.9		$	52,000 29,000	.....	2011

116.10    Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by
116.11Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:
116.12    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
116.13127A.49 :

116.14		$	1,000,000	.....	2010
116.15 116.16		$	1,132,000 1,127,000	.....	2011

116.17The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.
116.18The 2011 appropriation includes $317,000 for 2010 and $815,000 $810,000 for 2011.

116.19    Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by
116.20Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:
116.21    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
116.22Statutes, section 123A.485:

116.23		$	684,000	.....	2010
116.24 116.25		$	576,000 593,000	.....	2011

116.26The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.
116.27The 2011 appropriation includes $252,000 for 2010 and $324,000 $341,000 for 2011.

116.28    Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by
116.29Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:
116.30    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
116.31Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

117.1		$	12,861,000	.....	2010
117.2 117.3		$	16,157,000 16,213,000	.....	2011

117.4The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.
117.5The 2011 appropriation includes $4,362,000 for 2010 and $11,795,000 $11,851,000
117.6for 2011.

117.7    Sec. 6. Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by
117.8Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:
117.9    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
117.10under Minnesota Statutes, section 123B.92, subdivision 9:

117.11		$	17,297,000	.....	2010
117.12 117.13		$	19,729,000 19,387,000	.....	2011

117.14The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.
117.15The 2011 appropriation includes $5,629,000 for 2010 and $14,100,000 $13,758,000
117.16for 2011.

117.17B. EDUCATION EXCELLENCE

117.18    Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by
117.19Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:
117.20    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
117.21Statutes, section 124D.11, subdivision 4:

117.22		$	34,833,000	.....	2010
117.23 117.24		$	44,938,000 42,633,000	.....	2011

117.25The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.
117.26The 2011 appropriation includes $11,513,000 for 2010 and $33,425,000 $31,120,000
117.27for 2011.

117.28    Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by
117.29Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:
117.30    Subd. 3. Charter school startup aid. For charter school startup cost aid under
117.31Minnesota Statutes, section 124D.11:

117.32		$	1,218,000	.....	2010
117.33 117.34		$	743,000 654,000	.....	2011

118.1The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.
118.2The 2011 appropriation includes $375,000 for 2010 and $368,000 $279,000 for 2011.

118.3    Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by
118.4Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:
118.5    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
118.6124D.86, subdivision 5 :

118.7		$	50,812,000	.....	2010
118.8 118.9		$	61,782,000 61,604,000	.....	2011

118.10The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.
118.11The 2011 appropriation includes $16,636,000 for 2010 and $45,146,000 $44,968,000
118.12for 2011.

118.13    Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:
118.14    Subd. 6. Interdistrict desegregation or integration transportation grants. For
118.15interdistrict desegregation or integration transportation grants under Minnesota Statutes,
118.16section 124D.87:

118.17		$	14,468,000	.....	2010
118.18 118.19		$	17,582,000 13,393,000	.....	2011

118.20    Sec. 11. Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by
118.21Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:
118.22    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
118.23Statutes, section 124D.83:

118.24		$	1,702,000	.....	2010
118.25 118.26		$	2,119,000 1,958,000	.....	2011

118.27The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.
118.28The 2011 appropriation includes $558,000 for 2010 and $1,561,000 $1,400,000
118.29for 2011.

118.30C. SPECIAL EDUCATION

118.31    Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:
119.1    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
119.2section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
119.3within the district boundaries for whom no district of residence can be determined:

119.4		$	1,717,000	.....	2010
119.5 119.6		$	1,895,000 1,554,000	.....	2011

119.7If the appropriation for either year is insufficient, the appropriation for the other
119.8year is available.

119.9    Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by
119.10Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:
119.11    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
119.12services under Minnesota Statutes, section 125A.75, subdivision 1:

119.13		$	224,000	.....	2010
119.14 119.15		$	282,000 324,000	.....	2011

119.16The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.
119.17The 2011 appropriation includes $73,000 for 2010 and $209,000 $251,000 for 2011.

119.18D. FACILITIES AND TECHNOLOGY

119.19    Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by
119.20Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:
119.21    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
119.22Minnesota Statutes, section 123B.591, subdivision 4:

119.23		$	1,918,000	.....	2010
119.24 119.25		$	2,146,000 2,191,000	.....	2011

119.26The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.
119.27The 2011 appropriation includes $613,000 for 2010 and $1,533,000 $1,578,000
119.28for 2011.

119.29E. NUTRITION

119.30    Sec. 15. Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:
119.31    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
119.32section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

120.1		$	12,688,000	.....	2010
120.2 120.3		$	13,069,000 12,378,000	.....	2011

120.4    Sec. 16. Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:
120.5    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
120.6Statutes, section 124D.1158:

120.7		$	4,978,000	.....	2010
120.8 120.9		$	5,147,000 4,646,000	.....	2011

120.10    Sec. 17. Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by
120.11Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:
120.12    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
120.13section 124D.118:

120.14		$	1,104,000	.....	2010
120.15 120.16		$	1,126,000 1,063,000	.....	2011

120.17F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND
120.18SELF-SUFFICIENCY AND LIFELONG LEARNING

120.19    Sec. 18. Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by
120.20Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:
120.21    Subd. 3. Early childhood family education aid. For early childhood family
120.22education aid under Minnesota Statutes, section 124D.135:

120.23		$	19,005,000	.....	2010
120.24 120.25		$	21,460,000 21,177,000	.....	2011

120.26The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.
120.27The 2011 appropriation includes $5,911,000 for 2010 and $15,549,000 $15,266,000
120.28for 2011.

120.29    Sec. 19. Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by
120.30Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:
120.31    Subd. 4. Health and developmental screening aid. For health and developmental
120.32screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

121.1		$	2,922,000	.....	2010
121.2 121.3		$	3,425,000 3,434,000	.....	2011

121.4The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.
121.5The 2011 appropriation includes $945,000 for 2010 and $2,480,000 $2,489,000
121.6for 2011.

121.7    Sec. 20. Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by
121.8Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:
121.9    Subd. 8. Community education aid. For community education aid under
121.10Minnesota Statutes, section 124D.20:

121.11		$	476,000	.....	2010
121.12 121.13		$	473,000 463,000	.....	2011

121.14The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.
121.15The 2011 appropriation included $148,000 for 2010 and $325,000 $315,000 for
121.162011.

121.17    Sec. 21. Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by
121.18Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:
121.19    Subd. 12. Adult basic education aid. For adult basic education aid under
121.20Minnesota Statutes, section 124D.531:

121.21		$	35,671,000	.....	2010
121.22 121.23		$	42,732,000 42,829,000	.....	2011

121.24The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.
121.25The 2011 appropriation includes $11,644,000 for 2010 and $31,088,000 $31,185,000
121.26for 2011."
121.27Correct the title numbers accordingly

122.1	We request the adoption of this report and repassage of the bill.
122.2	House Conferees:
122.3	.....		.....
122.4	Pat Garofalo		Sondra Erickson
122.5	.....		.....
122.6	Tim Kelly		Connie Doepke
122.7	.....
122.8	Dan Fabian
122.9	Senate Conferees:
122.10	.....		.....
122.11	Gen Olson		Carla J. Nelson
122.12	.....		.....
122.13	Dave A. Thompson		Pam Wolf
122.14	.....
122.15	Benjamin A. Kruse