1.1.................... moves to amend H.F. No. 2 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:
1.6    Subd. 11. Permanent school fund reporting. The commissioner shall biannually
1.7report to the Permanent School Fund Advisory Committee and the legislature on the
1.8management of the permanent school trust fund that shows how the commissioner the
1.9amount of the permanent school fund transfer and information about the investment of the
1.10permanent school fund provided by the State Board of Investment. The State Board of
1.11Investment shall provide information about how they maximized the long-term economic
1.12return of the permanent school trust fund.

1.13    Sec. 2. Minnesota Statutes 2008, section 120A.40, is amended to read:
1.14120A.40 SCHOOL CALENDAR.
1.15(a) Except for learning programs during summer, flexible learning year programs
1.16authorized under sections 124D.12 to 124D.127, and learning year programs under section
1.17124D.128 , a district must not commence an elementary or secondary school year before
1.18Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops
1.19may be held before Labor Day. Districts that enter into cooperative agreements are
1.20encouraged to adopt similar school calendars.
1.21(b) A district may begin the school year on any day before Labor Day:
1.22(1) to accommodate a construction or remodeling project of $400,000 or more
1.23affecting a district school facility.;
1.24(2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35
1.25with a district that qualifies under clause (1); or
2.1A school (3) if the district that agrees to the same schedule with a school district
2.2in an adjoining state also may begin the school year before Labor Day as authorized
2.3under this paragraph.

2.4    Sec. 3. Minnesota Statutes 2008, section 122A.60, subdivision 1a, is amended to read:
2.5    Subd. 1a. Effective staff development activities. (a) Staff development activities
2.6must:
2.7(1) focus on the school classroom and research-based strategies that improve student
2.8learning;
2.9(2) provide opportunities for teachers to practice and improve their instructional
2.10skills over time;
2.11(3) provide opportunities for teachers to use student data as part of their daily work
2.12to increase student achievement;
2.13(4) enhance teacher content knowledge and instructional skills;
2.14(5) align with state and local academic standards;
2.15(6) provide opportunities to build professional relationships, foster collaboration
2.16among principals and staff who provide instruction, and provide opportunities for
2.17teacher-to-teacher mentoring; and
2.18(7) align with the plan of the district or site for an alternative teacher professional
2.19pay system.
2.20Staff development activities may include curriculum development and curriculum training
2.21programs, and activities that provide teachers and other members of site-based teams
2.22training to enhance team performance, and basic first aid, focusing on certification for
2.23CPR and the use of automatic external defibrillators. The school district also may
2.24implement other staff development activities required by law and activities associated with
2.25professional teacher compensation models.
2.26(b) Release time provided for teachers to supervise students on field trips and school
2.27activities, or independent tasks not associated with enhancing the teacher's knowledge
2.28and instructional skills, such as preparing report cards, calculating grades, or organizing
2.29classroom materials, may not be counted as staff development time that is financed with
2.30staff development reserved revenue under section 122A.61.

2.31    Sec. 4. Minnesota Statutes 2008, section 122A.61, subdivision 1, is amended to read:
2.32    Subdivision 1. Staff development revenue. A district is required to reserve
2.33an amount equal to at least two percent of the basic revenue under section 126C.10,
2.34subdivision 2 , for in-service education for programs under section 120B.22, subdivision
2.352 , for staff development plans, including plans for challenging instructional activities
3.1and experiences under section 122A.60, and for curriculum development and programs,
3.2other in-service education, teachers' workshops, teacher conferences, the cost of
3.3substitute teachers staff development purposes, preservice and in-service education for
3.4special education professionals and paraprofessionals, and other related costs for staff
3.5development efforts. A district may annually waive the requirement to reserve their basic
3.6revenue under this section if a majority vote of the licensed teachers in the district and
3.7a majority vote of the school board agree to a resolution to waive the requirement. A
3.8district in statutory operating debt is exempt from reserving basic revenue according to
3.9this section. Districts may expend an additional amount of unreserved revenue for staff
3.10development based on their needs. With the exception of amounts reserved for staff
3.11development from revenues allocated directly to school sites and any amounts spent for
3.12first aid or CPR and automatic external defibrillator training, the board must initially
3.13allocate 50 percent of the remaining reserved revenue to each school site in the district on
3.14a per teacher basis, which must be retained by the school site until used. The board may
3.15retain 25 percent to be used for district wide staff development efforts. The remaining
3.1625 percent of the revenue must be used to make grants to school sites for best practices
3.17methods. A grant may be used for any purpose authorized under section 120B.22,
3.18subdivision 2 , 122A.60, or for the costs of curriculum development and programs, other
3.19in-service education, teachers' workshops, teacher conferences, substitute teachers for
3.20staff development purposes, and other staff development efforts, and determined by
3.21the site professional development team. The site professional development team must
3.22demonstrate to the school board the extent to which staff at the site have met the outcomes
3.23of the program. The board may withhold a portion of initial allocation of revenue if the
3.24staff development outcomes are not being met.

3.25    Sec. 5. Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:
3.26    Subd. 3. Statement for comparison and correction. (a) By November 30 of the
3.27calendar year of the submission of the unaudited financial data, the district must provide to
3.28the commissioner audited financial data for the preceding fiscal year. The audit must be
3.29conducted in compliance with generally accepted governmental auditing standards, the
3.30federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
3.31of the State Auditor. An audited financial statement prepared in a form which will allow
3.32comparison with and correction of material differences in the unaudited financial data
3.33shall be submitted to the commissioner and the state auditor by December 31. The audited
3.34financial statement must also provide a statement of assurance pertaining to uniform
4.1financial accounting and reporting standards compliance and a copy of the management
4.2letter submitted to the district by the school district's auditor.
4.3(b) By January February 15 of the calendar year following the submission of the
4.4unaudited financial data, the commissioner shall convert the audited financial data
4.5required by this subdivision into the consolidated financial statement format required
4.6under subdivision 1a and publish the information on the department's Web site.

4.7    Sec. 6. Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:
4.8    Subd. 3. Failure to limit expenditures. If a district does not limit its expenditures in
4.9accordance with this section, the commissioner may so notify the appropriate committees
4.10of the legislature by no later than January 1 February 15 of the year following the end
4.11of that fiscal year.

4.12    Sec. 7. Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:
4.13    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006,
4.14when a school district provides instruction and services outside the district of residence,
4.15board and lodging, and any tuition to be paid, shall be paid by the district of residence.
4.16The tuition rate to be charged for any child with a disability, excluding a pupil for whom
4.17tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
4.18the sum of (1) the actual cost of providing special instruction and services to the child
4.19including a proportionate amount for special transportation and unreimbursed building
4.20lease and debt service costs for facilities used primarily for special education, plus (2)
4.21the amount of general education revenue and referendum aid attributable to the pupil,
4.22minus (3) the amount of special education aid for children with a disability received
4.23on behalf of that child, minus (4) if the pupil receives special instruction and services
4.24outside the regular classroom for more than 60 percent of the school day, the amount of
4.25general education revenue and referendum aid, excluding portions attributable to district
4.26and school administration, district support services, operations and maintenance, capital
4.27expenditures, and pupil transportation, attributable to that pupil for the portion of time
4.28the pupil receives special instruction and services outside of the regular classroom. If
4.29the boards involved do not agree upon the tuition rate, either board may apply to the
4.30commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
4.31a date for a hearing or request a written statement from each board, giving each board
4.32at least ten days' notice, and after the hearing or review of the written statements the
4.33commissioner must make an order fixing the tuition rate, which is binding on both school
4.34districts. General education revenue and referendum equalization aid attributable to a
5.1pupil must be calculated using the resident district's average general education revenue
5.2and referendum equalization aid per adjusted pupil unit.
5.3    (b) For fiscal year 2007 and later, when a school district provides special instruction
5.4and services for a pupil with a disability as defined in section 125A.02 outside the district
5.5of residence, excluding a pupil for whom an adjustment to special education aid is
5.6calculated according to section 127A.47, subdivision 7, paragraph (e), special education
5.7aid paid to the resident district must be reduced by an amount equal to (1) the actual
5.8cost of providing special instruction and services to the pupil, including a proportionate
5.9amount for special transportation and unreimbursed building lease and debt service costs
5.10for facilities used primarily for special education, plus (2) the amount of general education
5.11revenue and referendum equalization aid attributable to that pupil, calculated using the
5.12resident district's average general education revenue and referendum equalization aid
5.13per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
5.14secondary sparsity revenue, minus (3) the amount of special education aid for children
5.15with a disability received on behalf of that child, minus (4) if the pupil receives special
5.16instruction and services outside the regular classroom for more than 60 percent of the
5.17school day, the amount of general education revenue and referendum equalization aid,
5.18excluding portions attributable to district and school administration, district support
5.19services, operations and maintenance, capital expenditures, and pupil transportation,
5.20attributable to that pupil for the portion of time the pupil receives special instruction
5.21and services outside of the regular classroom, calculated using the resident district's
5.22average general education revenue and referendum equalization aid per adjusted pupil unit
5.23excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
5.24and the serving district's basic skills revenue, elementary sparsity revenue and secondary
5.25sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
5.26served by a cooperative unit without a fiscal agent school district, the general education
5.27revenue and referendum equalization aid attributable to a pupil must be calculated using
5.28the resident district's average general education revenue and referendum equalization aid
5.29excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
5.30revenue. Special education aid paid to the district or cooperative providing special
5.31instruction and services for the pupil must be increased by the amount of the reduction in
5.32the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
5.33and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
5.34expenditures on the resident school district's books of account under sections 123B.75
5.35and 123B.76. If the resident district's special education aid is insufficient to make the full
5.36adjustment, the remaining adjustment shall be made to other state aid due to the district.
6.1    (c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
6.2paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
6.3receive special education and related services, a site approved under section 125A.515,
6.4an intermediate district, a special education cooperative, or a school district that served
6.5as the applicant agency for a group of school districts for federal special education aids
6.6for fiscal year 2006 may apply to the commissioner for authority to charge the resident
6.7district an additional amount to recover any remaining unreimbursed costs of serving
6.8pupils with a disability. The application must include a description of the costs and the
6.9calculations used to determine the unreimbursed portion to be charged to the resident
6.10district. Amounts approved by the commissioner under this paragraph must be included
6.11in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
6.12subdivision 7 , paragraph (d) or (e), as applicable.
6.13    (d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
6.14(d) and (e), "general education revenue and referendum equalization aid" means the sum
6.15of the general education revenue according to section 126C.10, subdivision 1, excluding
6.16alternative teacher compensation revenue, plus the referendum equalization aid according
6.17to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
6.187, paragraphs (a) to (c).

6.19    Sec. 8. Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:
6.20    Subd. 2. Foreign exchange pupils. Notwithstanding section 124D.02, subdivision
6.213 , or any other law to the contrary, a foreign exchange pupil enrolled in a district under a
6.22cultural exchange program registered with the Office of the Secretary of State under
6.23section 5A.02 may be counted as a resident pupil for the purposes of this chapter
6.24and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has
6.25graduated from high school or the equivalent.

6.26    Sec. 9. Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:
6.27    Subd. 2. Building allocation. (a) A district must allocate its compensatory
6.28revenue to each school building in the district where the children who have generated the
6.29revenue are served unless the school district has received permission under Laws 2005,
6.30First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue
6.31according to student performance measures developed by the school board.
6.32    (b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
6.33amount of compensatory revenue that the district receives to school sites according to a
6.34plan adopted by the school board. The money reallocated under this paragraph must be
7.1spent for the purposes listed in subdivision 1, but may be spent on students in any grade,
7.2including students attending school readiness or other prekindergarten programs.
7.3    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
7.4means education site as defined in section 123B.04, subdivision 1.
7.5    (d) If the pupil is served at a site other than one owned and operated by the district,
7.6the revenue shall be paid to the district and used for services for pupils who generate
7.7the revenue Notwithstanding section 123A. 26, subdivision 1, compensatory revenue
7.8generated by students served at a cooperative unit shall be paid to the cooperative unit.
7.9    (e) A district with school building openings, school building closings, changes
7.10in attendance area boundaries, or other changes in programs or student demographics
7.11between the prior year and the current year may reallocate compensatory revenue among
7.12sites to reflect these changes. A district must report to the department any adjustments it
7.13makes according to this paragraph and the department must use the adjusted compensatory
7.14revenue allocations in preparing the report required under section 123B.76, subdivision 3,
7.15paragraph (c).

7.16    Sec. 10. Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:
7.17    Subd. 4. Separate accounts. Each district and cooperative unit that receives basic
7.18skills revenue shall maintain separate accounts to identify expenditures for salaries and
7.19programs related to basic skills revenue.

7.20    Sec. 11. Minnesota Statutes 2008, section 126C.17, subdivision 9, is amended to read:
7.21    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
7.22subdivision 1 , may be increased in the amount approved by the voters of the district at a
7.23referendum called for the purpose. The referendum may be called by the board or shall be
7.24called by the board upon written petition of qualified voters of the district. The referendum
7.25must be conducted one or two calendar years before the increased levy authority, if
7.26approved, first becomes payable. Only one election to approve an increase may be held
7.27in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
7.28paragraph (a), the referendum must be held on the first Tuesday after the first Monday
7.29in November. The ballot must state the maximum amount of the increased revenue per
7.30resident marginal cost pupil unit. The ballot may state a schedule, determined by the
7.31board, of increased revenue per resident marginal cost pupil unit that differs from year
7.32to year over the number of years for which the increased revenue is authorized or may
7.33state that the amount shall increase annually by the rate of inflation. For this purpose, the
7.34rate of inflation shall be the annual inflationary increase calculated under subdivision 2,
7.35paragraph (b). The ballot may state that existing referendum levy authority is expiring. In
8.1this case, the ballot may also compare the proposed levy authority to the existing expiring
8.2levy authority, and express the proposed increase as the amount, if any, over the expiring
8.3referendum levy authority. The ballot must designate the specific number of years, not to
8.4exceed ten, for which the referendum authorization applies. The ballot, including a ballot
8.5on the question to revoke or reduce the increased revenue amount under paragraph (c),
8.6must abbreviate the term "per resident marginal cost pupil unit" as "per pupil." The notice
8.7required under section 275.60 may be modified to read, in cases of renewing existing
8.8levies at the same amount per pupil as in the previous year:
8.9"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
8.10TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
8.11SCHEDULED TO EXPIRE."
8.12    The ballot may contain a textual portion with the information required in this
8.13subdivision and a question stating substantially the following:
8.14    "Shall the increase in the revenue proposed by (petition to) the board of .........,
8.15School District No. .., be approved?"
8.16    If approved, an amount equal to the approved revenue per resident marginal cost
8.17pupil unit times the resident marginal cost pupil units for the school year beginning in
8.18the year after the levy is certified shall be authorized for certification for the number of
8.19years approved, if applicable, or until revoked or reduced by the voters of the district at a
8.20subsequent referendum.
8.21    (b) The board must prepare and deliver by first class mail at least 15 days but no more
8.22than 30 days before the day of the referendum to each taxpayer a notice of the referendum
8.23and the proposed revenue increase. The board need not mail more than one notice to any
8.24taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
8.25those shown to be owners on the records of the county auditor or, in any county where
8.26tax statements are mailed by the county treasurer, on the records of the county treasurer.
8.27Every property owner whose name does not appear on the records of the county auditor
8.28or the county treasurer is deemed to have waived this mailed notice unless the owner
8.29has requested in writing that the county auditor or county treasurer, as the case may be,
8.30include the name on the records for this purpose. The notice must project the anticipated
8.31amount of tax increase in annual dollars for typical residential homesteads, agricultural
8.32homesteads, apartments, and commercial-industrial property within the school district.
8.33    The notice for a referendum may state that an existing referendum levy is expiring
8.34and project the anticipated amount of increase over the existing referendum levy in
8.35the first year, if any, in annual dollars for typical residential homesteads, agricultural
8.36homesteads, apartments, and commercial-industrial property within the district.
9.1    The notice must include the following statement: "Passage of this referendum will
9.2result in an increase in your property taxes." However, in cases of renewing existing levies,
9.3the notice may include the following statement: "Passage of this referendum extends an
9.4existing operating referendum at the same amount per pupil as in the previous year."
9.5    (c) A referendum on the question of revoking or reducing the increased revenue
9.6amount authorized pursuant to paragraph (a) may be called by the board and shall be called
9.7by the board upon the written petition of qualified voters of the district. A referendum to
9.8revoke or reduce the revenue amount must state the amount per resident marginal cost
9.9pupil unit by which the authority is to be reduced. Revenue authority approved by the
9.10voters of the district pursuant to paragraph (a) must be available to the school district at
9.11least once before it is subject to a referendum on its revocation or reduction for subsequent
9.12years. Only one revocation or reduction referendum may be held to revoke or reduce
9.13referendum revenue for any specific year and for years thereafter.
9.14    (d) A petition authorized by paragraph (a) or (c) is effective if signed by a number
9.15of qualified voters in excess of 15 30 percent of the registered voters of the district on
9.16the day the petition is filed with the board. A referendum invoked by petition must be
9.17held on the date specified in paragraph (a).
9.18    (e) The approval of 50 percent plus one of those voting on the question is required to
9.19pass a referendum authorized by this subdivision.
9.20    (f) At least 15 days before the day of the referendum, the district must submit a
9.21copy of the notice required under paragraph (b) to the commissioner and to the county
9.22auditor of each county in which the district is located. Within 15 days after the results
9.23of the referendum have been certified by the board, or in the case of a recount, the
9.24certification of the results of the recount by the canvassing board, the district must notify
9.25the commissioner of the results of the referendum.
9.26EFFECTIVE DATE.This section is effective for petitions filed after July 1, 2009.

9.27    Sec. 12. Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:
9.28    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
9.29by, the commissioner in accordance with the procedures and limits in subdivision 1,
9.30paragraphs (a) and (b), a district, as defined in this subdivision, may:
9.31(1) purchase real or personal property under an installment contract or may lease
9.32real or personal property with an option to purchase under a lease purchase agreement, by
9.33which installment contract or lease purchase agreement title is kept by the seller or vendor
9.34or assigned to a third party as security for the purchase price, including interest, if any; and
10.1(2) annually levy the amounts necessary to pay the district's obligations under the
10.2installment contract or lease purchase agreement.
10.3(b) The obligation created by the installment contract or the lease purchase
10.4agreement must not be included in the calculation of net debt for purposes of section
10.5475.53 , and does not constitute debt under other law. An election is not required in
10.6connection with the execution of the installment contract or the lease purchase agreement.
10.7(c) The proceeds of the levy authorized by this subdivision must not be used to
10.8acquire a facility to be primarily used for athletic or school administration purposes.
10.9(d) For the purposes of this subdivision, "district" means:
10.10(1) a school district required to have a comprehensive plan for the elimination of
10.11segregation which is eligible for revenue under section 124D.86, subdivision 3, clause (1),
10.12(2), or (3), and whose plan has been determined by the commissioner to be in compliance
10.13with Department of Education rules relating to equality of educational opportunity and
10.14school desegregation and, for a district eligible for revenue under section 124D.86,
10.15subdivision 3 , clause (4) or (5), where the acquisition of property under this subdivision is
10.16determined by the commissioner to contribute to the implementation of the desegregation
10.17plan; or
10.18(2) a school district that participates in a joint program for interdistrict desegregation
10.19with a district defined in clause (1) if the facility acquired under this subdivision is to
10.20be primarily used for the joint program and the commissioner determines that the joint
10.21programs are being undertaken to implement the districts' desegregation plan.
10.22(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
10.23or rent a district-owned building to itself does not apply to levies otherwise authorized
10.24by this subdivision.
10.25(f) For the purposes of this subdivision, any references in subdivision 1 to building
10.26or land shall include personal property.

10.27    Sec. 13. Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:
10.28    Subd. 2. Retired employee health benefits. (a) A district may levy an amount up
10.29to the amount the district is required by the collective bargaining agreement in effect
10.30on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
10.31licensed and nonlicensed employees who have terminated services in the employing
10.32district and withdrawn from active teaching service or other active service, as applicable,
10.33before July 1, 1998, if a sunset clause is in effect for the current collective bargaining
10.34agreement. The total amount of the levy each year may not exceed $600,000.
11.1(b) In addition to the levy authority granted under paragraph (a), a school district
11.2may levy for other postemployment benefits expenses. For purposes of this subdivision
11.3"postemployment benefits" means benefits giving rise to a liability under Statement No.
11.445 of the Government Accounting Standards Board. A district seeking levy authority
11.5under this subdivision must:
11.6(1) create or have created an actuarial liability to pay postemployment benefits to
11.7employees or officers after their termination of service;
11.8(2) have a sunset clause in effect for the current collective bargaining agreement
11.9as required by paragraph (a); and
11.10(3) apply for the authority in the form and manner required by the commissioner
11.11of education.
11.12If the total levy authority requested under this paragraph exceeds the amount established
11.13in paragraph (c), the commissioner must proportionately reduce each district's maximum
11.14levy authority under this subdivision.
11.15(c) The maximum levy authority under paragraph (b) must not exceed the following
11.16amounts:
11.17(1) $24,000,000 for taxes payable in 2010;
11.18(2) $50,000,000 for taxes payable in 2011; and
11.19(3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
11.20the sum of the previous year's authority and $19,000,000.

11.21    Sec. 14. Minnesota Statutes 2008, section 126C.44, is amended to read:
11.22126C.44 SAFE SCHOOLS LEVY.
11.23    (a) Each district may make a levy on all taxable property located within the district
11.24for the purposes specified in this section. The maximum amount which may be levied
11.25for all costs under this section shall be equal to $30 multiplied by the district's adjusted
11.26marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
11.27used for directly funding the following purposes or for reimbursing the cities and counties
11.28who contract with the district for the following purposes: (1) to pay the costs incurred for
11.29the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
11.30services in the district's schools; (2) to pay the costs for a drug abuse prevention program
11.31as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
11.32(3) to pay the costs for a gang resistance education training curriculum in the district's
11.33schools; (4) to pay the costs for security in the district's schools and on school property; (5)
11.34to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
11.35opt-in suicide prevention tools, and violence prevention measures taken by the school
12.1district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
12.2school social workers, licensed school psychologists, and licensed alcohol and chemical
12.3dependency counselors to help provide early responses to problems. For expenditures
12.4under clause (1), the district must initially attempt to contract for services to be provided
12.5by peace officers or sheriffs with the police department of each city or the sheriff's
12.6department of the county within the district containing the school receiving the services. If
12.7a local police department or a county sheriff's department does not wish to provide the
12.8necessary services, the district may contract for these services with any other police or
12.9sheriff's department located entirely or partially within the school district's boundaries.
12.10    (b) A school district that is a member of an intermediate school district may
12.11include in its authority under this section the costs associated with safe schools activities
12.12authorized under paragraph (a) for intermediate school district programs. This authority
12.13must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
12.14This authority is in addition to any other authority authorized under this section. Revenue
12.15raised under this paragraph must be transferred to the intermediate school district.
12.16    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
12.17unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
12.18clause (6). The district must annually certify either that: (1) its total spending on services
12.19provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
12.20its expenditures for these purposes, excluding amounts spent under this section, in the
12.21previous year plus the amount spent under this section; or (2) that the district's full-time
12.22equivalent number of employees listed in paragraph (a), clause (6), is not less than the
12.23number for the previous year.
12.24EFFECTIVE DATE.This section is effective for revenue for fiscal years 2010
12.25and later.

12.26    Sec. 15. Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:
12.27    Subd. 7. Alternative attendance programs. The general education aid and special
12.28education aid for districts must be adjusted for each pupil attending a nonresident district
12.29under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
12.30must be made according to this subdivision.
12.31    (a) General education aid paid to a resident district must be reduced by an amount
12.32equal to the referendum equalization aid attributable to the pupil in the resident district.
12.33    (b) General education aid paid to a district serving a pupil in programs listed in this
12.34subdivision must be increased by an amount equal to the greater of (1) the referendum
12.35equalization aid attributable to the pupil in the nonresident district; or (2) the product of
13.1the district's open enrollment concentration index, the maximum amount of referendum
13.2revenue in the first tier, and the district's net open enrollment pupil units for that year. A
13.3district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
13.4lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
13.5served to its resident pupil units for that year and 0.2. This clause does not apply to a
13.6school district where more than 50 percent of the open enrollment students are enrolled
13.7solely in online learning courses.
13.8    (c) If the amount of the reduction to be made from the general education aid of the
13.9resident district is greater than the amount of general education aid otherwise due the
13.10district, the excess reduction must be made from other state aids due the district.
13.11    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
13.12area learning center, operated according to paragraph (f), providing special instruction and
13.13services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
13.14section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
13.15be equal to (1) the actual cost of providing special instruction and services to the pupil,
13.16including a proportionate amount for special transportation and unreimbursed building
13.17lease and debt service costs for facilities used primarily for special education, minus (2)
13.18if the pupil receives special instruction and services outside the regular classroom for
13.19more than 60 percent of the school day, the amount of general education revenue and
13.20referendum aid attributable to that pupil for the portion of time the pupil receives special
13.21instruction and services outside of the regular classroom, excluding portions attributable to
13.22district and school administration, district support services, operations and maintenance,
13.23capital expenditures, and pupil transportation, minus (3) special education aid attributable
13.24to that pupil, that is received by the district providing special instruction and services.
13.25For purposes of this paragraph, general education revenue and referendum equalization
13.26aid attributable to a pupil must be calculated using the serving district's average general
13.27education revenue and referendum equalization aid per adjusted pupil unit.
13.28    (e) For fiscal year 2007 and later, special education aid paid to a resident district
13.29must be reduced by an amount equal to (1) the actual cost of providing special instruction
13.30and services, including special transportation and unreimbursed building lease and debt
13.31service costs for facilities used primarily for special education, for a pupil with a disability,
13.32as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
13.33in a program listed in this subdivision, minus (2) if the pupil receives special instruction
13.34and services outside the regular classroom for more than 60 percent of the school day,
13.35the amount of general education revenue and referendum equalization aid attributable
13.36to that pupil for the portion of time the pupil receives special instruction and services
14.1outside of the regular classroom, excluding portions attributable to district and school
14.2administration, district support services, operations and maintenance, capital expenditures,
14.3and pupil transportation, minus (3) special education aid attributable to that pupil, that is
14.4received by the district providing special instruction and services. For purposes of this
14.5paragraph, general education revenue and referendum equalization aid attributable to a
14.6pupil must be calculated using the serving district's average general education revenue
14.7and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
14.8district or cooperative providing special instruction and services for the pupil, or to the
14.9fiscal agent district for a cooperative, must be increased by the amount of the reduction
14.10in the aid paid to the resident district. If the resident district's special education aid is
14.11insufficient to make the full adjustment, the remaining adjustment shall be made to other
14.12state aids due to the district.
14.13    (f) An area learning center operated by a service cooperative, intermediate district,
14.14education district, or a joint powers cooperative may elect through the action of the
14.15constituent boards to charge the resident district tuition for pupils rather than to have the
14.16general education revenue paid to a fiscal agent school district. Except as provided in
14.17paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of
14.18the district average general education revenue per pupil unit minus an amount equal to the
14.19product of the formula allowance according to section 126C.10, subdivision 2, times .0485,
14.20calculated without basic skills compensatory revenue and transportation sparsity revenue,
14.21times the number of pupil units for pupils attending the area learning center, plus the
14.22amount of compensatory revenue generated by pupils attending the area learning center.

14.23    Sec. 16. Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:
14.24    Subdivision 1. Approval by electors; exceptions. Obligations authorized by law or
14.25charter may be issued by any municipality upon obtaining the approval of a majority of
14.26the electors voting on the question of issuing the obligations, but an election shall not be
14.27required to authorize obligations issued:
14.28    (1) to pay any unpaid judgment against the municipality;
14.29    (2) for refunding obligations;
14.30    (3) for an improvement or improvement program, which obligation is payable wholly
14.31or partly from the proceeds of special assessments levied upon property specially benefited
14.32by the improvement or by an improvement within the improvement program, or from tax
14.33increments, as defined in section 469.174, subdivision 25, including obligations which are
14.34the general obligations of the municipality, if the municipality is entitled to reimbursement
14.35in whole or in part from the proceeds of such special assessments or tax increments and
15.1not less than 20 percent of the cost of the improvement or the improvement program is to
15.2be assessed against benefited property or is to be paid from the proceeds of federal grant
15.3funds or a combination thereof, or is estimated to be received from tax increments;
15.4    (4) payable wholly from the income of revenue producing conveniences;
15.5    (5) under the provisions of a home rule charter which permits the issuance of
15.6obligations of the municipality without election;
15.7    (6) under the provisions of a law which permits the issuance of obligations of a
15.8municipality without an election;
15.9    (7) to fund pension or retirement fund or postemployment benefit liabilities pursuant
15.10to section 475.52, subdivision 6;
15.11    (8) under a capital improvement plan under section 373.40; and
15.12    (9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
15.13the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
15.14subdivision 4g , paragraph (b); and
15.15(10) postemployment benefit liabilities pursuant to section 475.52, subdivision 6, for
15.16municipalities other than school districts.
15.17EFFECTIVE DATE.This section is effective for obligations issued and sold after
15.18August 1, 2009.

15.19    Sec. 17. ONETIME GENERAL EDUCATION REVENUE REDUCTION
15.20REPLACED WITH FEDERAL FUNDS FROM THE FISCAL STABILIZATION
15.21ACCOUNT.
15.22    Subdivision 1. General education reduction. Notwithstanding Minnesota Statutes,
15.23sections 126C.13 and 126C.20, the state total general education aid for fiscal year 2010 is
15.24reduced by $275,600,000. The aid reduction must be allocated among school districts and
15.25charter schools in proportion to the school district or charter school's general education
15.26revenue for fiscal year 2008 under Minnesota Statutes, section 126C.10, or Minnesota
15.27Statutes, section 124D.11, subdivisions 1 and 2.
15.28    Subd. 2. Allocation of federal fiscal stabilization funds. The commissioner must
15.29offset the onetime general education aid reduction for each school district and charter
15.30school under subdivision 1 with an equal amount of federal aid from the fiscal stabilization
15.31account in the federal fund.

15.32    Sec. 18. APPROPRIATIONS; GENERAL FUND.
16.1    Subdivision 1. Department of Education. The sums indicated in this section are
16.2appropriated from the general fund to the Department of Education for the fiscal years
16.3designated.
16.4    Subd. 2. General education aid. For general education aid under Minnesota
16.5Statutes, section 126C.13, subdivision 4:

16.6		$	3,916,460,000	.....	2010
16.7		$	5,563,965,000	.....	2011

16.8The 2010 appropriation includes $555,864,000 for 2009 and $3,360,596,000 for
16.92010.
16.10The 2011 appropriation includes $1,438,969,000 for 2010 and $4,124,996,000
16.11for 2011.
16.12    Subd. 3. Enrollment options transportation. For transportation of pupils attending
16.13postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
16.14of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

16.15		$	48,000	.....	2010
16.16		$	52,000	.....	2011

16.17    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
16.18127A.49:

16.19		$	980,000	.....	2010
16.20		$	1,056,000	.....	2011

16.21The 2010 appropriation includes $140,000 for 2009 and $840,000 for 2010.
16.22The 2011 appropriation includes $310,000 for 2010 and $746,000 for 2011.
16.23    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
16.24Statutes, section 123A.485:

16.25		$	693,000	.....	2010
16.26		$	931,000	.....	2011

16.27The 2010 appropriation includes $0 for 2009 and $693,000 for 2010.
16.28The 2011 appropriation includes $255,000 for 2010 and $676,000 for 2011.
16.29    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
16.30Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:

16.31		$	14,303,000	.....	2010
16.32		$	17,785,000	.....	2011

16.33The 2010 appropriation includes $1,647,000 for 2009 and $12,656,000 for 2010.
16.34The 2011 appropriation includes $4,680,000 for 2010 and $13,105,000 for 2011.
17.1    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
17.2under Minnesota Statutes, section 123B.92, subdivision 9:

17.3		$	18,366,000	.....	2010
17.4		$	22,636,000	.....	2011

17.5The 2010 appropriation includes $2,077,000 for 2009 and $16,289,000 for 2010.
17.6The 2011 appropriation includes $6,024,000 for 2010 and $16,612,000 for 2011.
17.7    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
17.8690, Warroad, to operate the Angle Inlet School:

17.9		$	65,000	.....	2010
17.10		$	65,000	.....	2011

17.11    Subd. 9. Independent School District No. 239, Rushford-Peterson. For school
17.12district flood enrollment impact aid as a result of the floods of August 2007:

17.13

$

158,000

.....

2010

17.14The base appropriation for later fiscal years is zero.
17.15The district must provide to the commissioner of education documentation of
17.16the additional pupil transportation costs and the number of pupils in average daily
17.17membership lost as a result of the flood.
17.18    Subd. 10. Lancaster. For a grant to Independent School District No. 356, Lancaster,
17.19to replace the loss of sparsity revenue:

17.20		$	100,000	.....	2010
17.21		$	100,000	.....	2011

17.22The base appropriation for later fiscal years is zero.
17.23    Subd. 11. Compensatory revenue pilot project. For grants for participation in the
17.24compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
17.25article 1, section 50:

17.26		$	2,175,000	.....	2010
17.27		$	2,175,000	.....	2011

17.28Of this amount, $1,500,000 in each year is for a grant to Independent School District
17.29No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School
17.30District No. 279, Osseo; $160,000 in each year is for a grant to Independent School
17.31District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School
17.32District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent
17.33School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
17.34School District No. 833, South Washington.
18.1If a grant to a specific school district is not awarded, the commissioner may increase
18.2the aid amounts to any of the remaining participating school districts.
18.3This appropriation is part of the base budget for subsequent fiscal years.

18.4    Sec. 19. APPROPRIATIONS; FEDERAL FUND.
18.5    Subdivision 1. Department of Education. The sums indicated in this section are
18.6appropriated from the fiscal stabilization account in the federal fund to the commissioner
18.7of education for the fiscal years designated.
18.8    Subd. 2. General education offset. To offset the onetime general education revenue
18.9reduction under section 18:

18.10

$

275,600,000

.....

2010

18.11Any balance does not cancel but is available for obligation until September 30, 2011.


18.14    Section 1. Minnesota Statutes 2008, section 6.74, is amended to read:
18.156.74 INFORMATION COLLECTED FROM LOCAL GOVERNMENTS.
18.16    Subdivision 1. Information generally. The state auditor, or a designated agent, shall
18.17collect annually from all city, county, and other local units of government, information as
18.18to the assessment of property, collection of taxes, receipts from licenses and other sources,
18.19the expenditure of public funds for all purposes, borrowing, debts, principal and interest
18.20payments on debts, and such other information as may be needful. The data shall be
18.21supplied upon forms prescribed by the state auditor, and all public officials so called upon
18.22shall fill out properly and return promptly all forms so transmitted. The state auditor or
18.23assistants, may examine local records in order to complete or verify the information.
18.24    Subd. 2. Examples of good government in procurement and shared services;
18.25clearinghouse. The state auditor may seek funds from local units of government
18.26and nongovernmental sources to establish an online clearinghouse of examples of
18.27good government in procurement and shared services among political subdivisions. If
18.28established, the clearinghouse shall be designed to allow political subdivisions to submit
18.29examples of good government in procurement and shared services in a form prescribed
18.30by the state auditor.

18.31    Sec. 2. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:
18.32    Subdivision 1. Required academic standards. The following subject areas are
18.33required for statewide accountability:
19.1    (1) language arts;
19.2    (2) mathematics;
19.3    (3) science;
19.4    (4) social studies, including history, geography, economics, and government and
19.5citizenship;
19.6    (5) health and physical education, for which locally developed academic standards
19.7apply; and
19.8    (6) the arts, for which statewide or locally developed academic standards apply,
19.9as determined by the school district. Public elementary and middle schools must offer
19.10at least three and require at least two of the following four arts areas: dance; music;
19.11theater; and visual arts. Public high schools, consistent with section 120B.024, paragraph
19.12(a), clause (5), must offer at least three and require at least one of the following five arts
19.13areas: media arts; dance; music; theater; and visual arts.
19.14    The commissioner must submit proposed standards in science and social studies to
19.15the legislature by February 1, 2004.
19.16For purposes of applicable federal law, the academic standards for language arts,
19.17mathematics, and science apply to all public school students, except the very few students
19.18with extreme cognitive or physical impairments for whom an individualized education
19.19plan team has determined that the required academic standards are inappropriate. An
19.20individualized education plan team that makes this determination must establish alternative
19.21standards with appropriate alternate achievement standards based on these academic
19.22standards for students with individualized education plans described under federal law.
19.23    A school district, no later than the 2007-2008 school year, must adopt graduation
19.24requirements that meet or exceed state graduation requirements established in law or
19.25rule. A school district that incorporates these state graduation requirements before the
19.262007-2008 school year must provide students who enter the 9th grade in or before
19.27the 2003-2004 school year the opportunity to earn a diploma based on existing locally
19.28established graduation requirements in effect when the students entered the 9th grade.
19.29District efforts to develop, implement, or improve instruction or curriculum as a result
19.30of the provisions of this section must be consistent with sections 120B.10, 120B.11,
19.31and 120B.20.
19.32    The commissioner must include the contributions of Minnesota American Indian
19.33tribes and communities as they relate to the academic standards during the review and
19.34revision of the required academic standards.
19.35EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
19.36later.

20.1    Sec. 3. Minnesota Statutes 2008, section 120B.022, subdivision 1, is amended to read:
20.2    Subdivision 1. Elective standards. (a) A district must establish its own standards in
20.3the following subject areas:
20.4    (1) vocational and technical education; and
20.5    (2) world languages.
20.6    A school district must offer courses in all elective subject areas.
20.7    (b) World languages teachers and other school staff should develop and implement
20.8world languages programs that acknowledge and reinforce the language proficiency and
20.9cultural awareness that non-English language speakers already possess, and encourage
20.10students' proficiency in multiple world languages. Programs under this paragraph must
20.11encompass indigenous American Indian languages and cultures, among other world
20.12languages and cultures. The department shall consult with postsecondary institutions in
20.13developing related professional development opportunities.
20.14(c) Any Minnesota public, charter, or nonpublic school may award Minnesota
20.15World Language Proficiency Certificates or Minnesota World Language Proficiency High
20.16Achievement Certificates, consistent with this subdivision.
20.17The Minnesota World Language Proficiency Certificate recognizes students who
20.18demonstrate listening, speaking, reading, and writing language skills at the American
20.19Council on the Teaching of Foreign Languages' Intermediate-Low level on a valid and
20.20reliable assessment tool. For languages listed as Category 3 by the United States Foreign
20.21Service Institute or Category 4 by the United States Defense Language Institute, the
20.22standard is Intermediate-Low for listening and speaking and Novice-High for reading
20.23and writing.
20.24The Minnesota World Language Proficiency High Achievement Certificate
20.25recognizes students who demonstrate listening, speaking, reading, and writing language
20.26skills at the American Council on the Teaching of Foreign Languages' Pre-Advanced level
20.27for K-12 learners on a valid and reliable assessment tool. For languages listed as Category
20.283 by the United States Foreign Service Institute or Category 4 by the United States
20.29Defense Language Institute, the standard is Pre-Advanced for listening and speaking and
20.30Intermediate-Mid for reading and writing.

20.31    Sec. 4. Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to read:
20.32    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
20.33revise and appropriately embed technology and information literacy standards consistent
20.34with recommendations from school media specialists into the state's academic standards
20.35and graduation requirements and implement a review cycle for state academic standards
21.1and related benchmarks, consistent with this subdivision. During each review cycle, the
21.2commissioner also must examine the alignment of each required academic standard and
21.3related benchmark with the knowledge and skills students need for college readiness and
21.4advanced work in the particular subject area.
21.5(b) The commissioner in the 2006-2007 school year must revise and align the state's
21.6academic standards and high school graduation requirements in mathematics to require
21.7that students satisfactorily complete the revised mathematics standards, beginning in the
21.82010-2011 school year. Under the revised standards:
21.9(1) students must satisfactorily complete an algebra I credit by the end of eighth
21.10grade; and
21.11(2) students scheduled to graduate in the 2014-2015 school year or later must
21.12satisfactorily complete an algebra II credit or its equivalent.
21.13The commissioner also must ensure that the statewide mathematics assessments
21.14administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
21.15school year are aligned with the state academic standards in mathematics. The statewide
21.1611th grade mathematics test administered to students under clause (2) beginning in
21.17the 2013-2014 school year must include algebra II test items that are aligned with
21.18corresponding state academic standards in mathematics. The commissioner must
21.19implement a review of the academic standards and related benchmarks in mathematics
21.20beginning in the 2015-2016 school year.
21.21(c) The commissioner in the 2007-2008 school year must revise and align the state's
21.22academic standards and high school graduation requirements in the arts to require that
21.23students satisfactorily complete the revised arts standards beginning in the 2010-2011
21.242011-2012 school year. The commissioner must implement a review of the academic
21.25standards and related benchmarks in arts beginning in the 2016-2017 2017-2018 school
21.26year.
21.27(d) The commissioner in the 2008-2009 school year must revise and align the state's
21.28academic standards and high school graduation requirements in science to require that
21.29students satisfactorily complete the revised science standards, beginning in the 2011-2012
21.302012-2013 school year. Under the revised standards, students scheduled to graduate in the
21.312014-2015 2015-2016 school year or later must satisfactorily complete a chemistry or
21.32physics credit. The commissioner must implement a review of the academic standards and
21.33related benchmarks in science beginning in the 2017-2018 2018-2019 school year.
21.34(e) The commissioner in the 2009-2010 2010-2011 school year must revise and
21.35align the state's academic standards and high school graduation requirements in language
21.36arts to require that students satisfactorily complete the revised language arts standards
22.1beginning in the 2012-2013 2013-2014 school year. The commissioner must implement
22.2a review of the academic standards and related benchmarks in language arts beginning
22.3in the 2018-2019 2019-2020 school year.
22.4(f) The commissioner in the 2010-2011 2011-2012 school year must revise and
22.5align the state's academic standards and high school graduation requirements in social
22.6studies to require that students satisfactorily complete the revised social studies standards
22.7beginning in the 2013-2014 2014-2015 school year. The commissioner must implement
22.8a review of the academic standards and related benchmarks in social studies beginning
22.9in the 2019-2020 2020-2021 school year.
22.10(g) School districts and charter schools must revise and align local academic
22.11standards and high school graduation requirements in health, physical education, world
22.12languages, and career and technical education to require students to complete the revised
22.13standards beginning in a school year determined by the school district or charter school.
22.14School districts and charter schools must formally establish a periodic review cycle for
22.15the academic standards and related benchmarks in health, physical education, world
22.16languages, and career and technical education.
22.17EFFECTIVE DATE.This section is effective the day following final enactment.

22.18    Sec. 5. Minnesota Statutes 2008, section 120B.024, is amended to read:
22.19120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
22.20    (a) Students beginning 9th grade in the 2004-2005 school year and later must
22.21successfully complete the following high school level course credits for graduation:
22.22    (1) four credits of language arts;
22.23    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
22.24and probability sufficient to satisfy the academic standard;
22.25    (3) three credits of science, including at least one credit in biology;
22.26    (4) three and one-half credits of social studies, encompassing at least United
22.27States history, geography, government and citizenship, world history, and economics or
22.28three credits of social studies encompassing at least United States history, geography,
22.29government and citizenship, and world history, and one-half credit of economics taught in
22.30a school's social studies, agriculture education, or business department;
22.31    (5) one credit in the arts; and
22.32    (6) a minimum of seven elective course credits.
22.33    A course credit is equivalent to a student successfully completing an academic
22.34year of study or a student mastering the applicable subject matter of the state academic
23.1standards or local academic standards where state standards do not apply, as determined
23.2by the local school district.
23.3    (b) An agriculture science course may fulfill a science credit requirement in addition
23.4to the specified science credits in biology and chemistry or physics under paragraph (a),
23.5clause (3).
23.6    (c) A career and technical education course may fulfill a science, mathematics, or
23.7arts credit requirement in addition to the specified science, mathematics, or arts credits
23.8under paragraph (a), clause (2), (3), or (5).
23.9EFFECTIVE DATE.This section is effective August 1, 2012, and applies to
23.10students entering grade 9 in the 2012-2013 school year and later.

23.11    Sec. 6. Minnesota Statutes 2008, section 120B.11, subdivision 5, is amended to read:
23.12    Subd. 5. Report. (a) By October 1 of each year, the school board shall use standard
23.13statewide reporting procedures the commissioner develops and adopt a report, consistent
23.14with section 120B.36, subdivision 1, that includes the following:
23.15(1) student achievement goals for meeting state academic standards;
23.16(2) results of local assessment data, and any additional test data;
23.17(3) the annual school district improvement plans including staff development goals
23.18under section 122A.60;
23.19(4) information about district and learning site progress in realizing previously
23.20adopted improvement plans; and
23.21(5) the amount and type of revenue attributed to each education site as defined
23.22in section 123B.04.
23.23(b) The school board shall publish the report in the local newspaper with the largest
23.24circulation in the district, by mail, or by electronic means such as the district Web site. If
23.25electronic means are used, school districts must publish notice of the report in a periodical
23.26of general circulation in the district. School districts must make copies of the report
23.27available to the public on request. The board shall make a copy of the report available to
23.28the public for inspection. The board shall send a copy of the report to the commissioner
23.29of education by October 15 of each year.
23.30(c) The title of the report shall contain the name and number of the school district and
23.31read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
23.32must include at least the following information about advisory committee membership:
23.33(1) the name of each committee member and the date when that member's term
23.34expires;
23.35(2) the method and criteria the school board uses to select committee members; and
24.1(3) the date by which a community resident must apply to next serve on the
24.2committee.
24.3EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
24.4later.

24.5    Sec. 7. Minnesota Statutes 2008, section 120B.13, is amended to read:
24.6120B.13 ADVANCED PLACEMENT AND, INTERNATIONAL
24.7BACCALAUREATE, AND CONCURRENT ENROLLMENT PROGRAMS.
24.8    Subdivision 1. Program structure; training programs for teachers. (a) The
24.9advanced placement and, international baccalaureate, and concurrent enrollment programs
24.10are well-established academic programs for mature, academically directed high school
24.11students. These programs, in addition to providing academic rigor, offer sound curricular
24.12design, accountability, comprehensive external assessment, feedback to students and
24.13teachers, and the opportunity for high school students to compete academically on a
24.14global level. Advanced placement and, international baccalaureate, and concurrent
24.15enrollment programs allow students to leave high school with the academic skills
24.16and self-confidence to succeed in college and beyond. The advanced placement and,
24.17international baccalaureate, and concurrent enrollment programs help provide Minnesota
24.18students with world-class educational opportunity.
24.19(b) Critical to schools' educational success is ongoing advanced
24.20placement/international baccalaureate-approved teacher training for teachers instructing
24.21students in the advanced placement, international baccalaureate, and concurrent enrollment
24.22programs. A secondary teacher assigned by a district to teach an advanced placement or
24.23international baccalaureate course or other interested educator may participate in a training
24.24program offered by The College Board or International Baccalaureate North America, Inc.
24.25A secondary teacher assigned by a district to teach a concurrent enrollment course, or other
24.26interested educator, may participate in a training program offered by the eligible public
24.27postsecondary institution with which the district has entered into an agreement according
24.28to section 124D.09, subdivision 3, paragraph (a). The state may pay a portion of the tuition,
24.29room, board, and out-of-state travel costs a teacher or other interested educator incurs
24.30in participating in a training program. The commissioner shall determine application
24.31procedures and deadlines, select teachers and other interested educators to participate in
24.32the training program, and determine the payment process and amount of the subsidy.
24.33The procedures determined by the commissioner shall, to the extent possible, ensure
24.34that advanced placement and, international baccalaureate, and concurrent enrollment
24.35courses become available in all parts of the state and that a variety of course offerings are
25.1available in school districts. This subdivision does not prevent teacher or other interested
25.2educator participation in training programs offered by The College Board or International
25.3Baccalaureate North America, Inc., when tuition is paid by a source other than the state.
25.4(c) The commissioner may award state-funded competitive grants designed to create
25.5advanced placement summer training institutes for secondary teachers. Two-year grants,
25.6beginning and ending on October 1, may be awarded to Minnesota institutions of higher
25.7education that comply with the training requirements outlined by the College Board. The
25.8commissioner shall determine award criteria and the selection process.
25.9    Subd. 2. Support programs. The commissioner shall provide support programs
25.10during the school year for teachers who attended the training programs and teachers
25.11experienced in teaching advanced placement or, international baccalaureate, or concurrent
25.12enrollment courses. The support programs shall provide teachers with opportunities to
25.13share instructional ideas with other teachers. The state may pay the costs of participating
25.14in the support programs, including substitute teachers, if necessary, and program affiliation
25.15costs.
25.16    Subd. 3. Subsidy for examination fees. The state may pay all or part of the fee for
25.17advanced placement or international baccalaureate examinations. The commissioner shall
25.18pay all examination fees for all public and nonpublic students of low-income families, as
25.19defined by the commissioner, and to the limit of the available appropriation, shall also pay
25.20a portion or all of the examination fees for other public and nonpublic students sitting for
25.21an advanced placement examination, international baccalaureate examination, or both.
25.22The commissioner shall determine procedures for state payments of fees.
25.23    Subd. 3a. College credit. The colleges and universities of the Minnesota State
25.24Colleges and Universities system must award, and the University of Minnesota and private
25.25postsecondary institutions are encouraged to award, college credit to high school students
25.26who receive a score of three or higher on an advanced placement or four or higher on the
25.27international baccalaureate program examination.
25.28    Subd. 4. Information. The commissioner shall submit the following information to
25.29the education committees of the legislature each year by February 1:
25.30(1) the number of pupils enrolled in advanced placement and, international
25.31baccalaureate, and concurrent enrollment courses in each school district;
25.32(2) the number of teachers in each district attending training programs offered by the
25.33college board or International Baccalaureate North America, Inc.;
25.34(3) the number of teachers in each district participating in support programs;
25.35(4) recent trends in the field of advanced placement and, international baccalaureate,
25.36and concurrent enrollment programs;
26.1(5) expenditures for each category in this section; and
26.2(6) other recommendations for the state program.

26.3    Sec. 8. Minnesota Statutes 2008, section 120B.132, is amended to read:
26.4120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
26.5PLACEMENT AND, INTERNATIONAL BACCALAUREATE, AND
26.6CONCURRENT ENROLLMENT PROGRAMS.
26.7    Subdivision 1. Establishment; eligibility. A program is established to raise
26.8kindergarten through grade 12 academic achievement through increased student
26.9participation in preadvanced placement, advanced placement, and international
26.10baccalaureate, and concurrent enrollment programs, consistent with section 120B.13.
26.11Schools and charter schools eligible to participate under this section:
26.12    (1) must have a three-year plan approved by the local school board to establish a new
26.13international baccalaureate program leading to international baccalaureate authorization,
26.14expand an existing program that leads to international baccalaureate authorization, or
26.15expand an existing authorized international baccalaureate program; or
26.16    (2) must have a three-year plan approved by the local school board to create a new or
26.17expand an existing program to implement the college board advanced placement courses
26.18and exams or preadvanced placement initiative; and or
26.19(3) must have a three-year plan approved by the local school board to create a new
26.20or expand an existing concurrent enrollment program; and
26.21    (3) (4) must propose to further raise students' academic achievement by:
26.22    (i) increasing the availability of and all students' access to advanced placement or,
26.23international baccalaureate, or concurrent enrollment courses or programs;
26.24    (ii) expanding the breadth of advanced placement or, international baccalaureate, or
26.25concurrent enrollment courses or programs that are available to students;
26.26    (iii) increasing the number and the diversity of the students who participate in
26.27advanced placement or, international baccalaureate, or concurrent enrollment courses
26.28or programs and succeed;
26.29    (iv) providing low-income and other disadvantaged students with increased access
26.30to advanced placement or, international baccalaureate, or concurrent enrollment courses
26.31and programs; or
26.32    (v) increasing the number of high school students, including low-income and other
26.33disadvantaged students, who receive college credit by successfully completing advanced
26.34placement or, international baccalaureate, or concurrent enrollment courses or programs
26.35and achieving satisfactory scores on related exams.
27.1    Subd. 2. Application and review process; funding priority. (a) Charter schools
27.2and school districts in which eligible schools under subdivision 1 are located may apply to
27.3the commissioner, in the form and manner the commissioner determines, for competitive
27.4funding to further raise students' academic achievement. The application must detail the
27.5specific efforts the applicant intends to undertake in further raising students' academic
27.6achievement, consistent with subdivision 1, and a proposed budget detailing the district or
27.7charter school's current and proposed expenditures for advanced placement, preadvanced
27.8placement, and international baccalaureate, and concurrent enrollment courses and
27.9programs. The proposed budget must demonstrate that the applicant's efforts will support
27.10implementation of advanced placement, preadvanced placement, and international
27.11baccalaureate, and concurrent enrollment courses and programs. Expenditures for
27.12administration must not exceed five percent of the proposed budget. The commissioner
27.13may require an applicant to provide additional information.
27.14    (b) When reviewing applications, the commissioner must determine whether
27.15the applicant satisfied all the requirements in this subdivision and subdivision 1.
27.16The commissioner may give funding priority to an otherwise qualified applicant that
27.17demonstrates:
27.18    (1) a focus on developing or expanding preadvanced placement, advanced placement,
27.19or international baccalaureate, or concurrent enrollment courses or programs or increasing
27.20students' participation in, access to, or success with the courses or programs, including the
27.21participation, access, or success of low-income and other disadvantaged students;
27.22    (2) a compelling need for access to preadvanced placement, advanced placement, or
27.23international baccalaureate, or concurrent enrollment courses or programs;
27.24    (3) an effective ability to actively involve local business and community
27.25organizations in student activities that are integral to preadvanced placement, advanced
27.26placement, or international baccalaureate, or concurrent enrollment courses or programs;
27.27    (4) access to additional public or nonpublic funds or in-kind contributions that are
27.28available for preadvanced placement, advanced placement, or international baccalaureate,
27.29or concurrent enrollment courses or programs; or
27.30    (5) an intent to implement activities that target low-income and other disadvantaged
27.31students.
27.32    Subd. 3. Funding; permissible funding uses. (a) The commissioner shall award
27.33grants to applicant school districts and charter schools that meet the requirements of
27.34subdivisions 1 and 2. The commissioner must award grants on an equitable geographical
27.35basis to the extent feasible and consistent with this section. Grant awards must not exceed
27.36the lesser of:
28.1    (1) $85 times the number of pupils enrolled at the participating sites on October
28.21 of the previous fiscal year; or
28.3    (2) the approved supplemental expenditures based on the budget submitted under
28.4subdivision 2. For charter schools in their first year of operation, the maximum funding
28.5award must be calculated using the number of pupils enrolled on October 1 of the current
28.6fiscal year. The commissioner may adjust the maximum funding award computed using
28.7prior year data for changes in enrollment attributable to school closings, school openings,
28.8grade level reconfigurations, or school district reorganizations between the prior fiscal
28.9year and the current fiscal year.
28.10    (b) School districts and charter schools that submit an application and receive
28.11funding under this section must use the funding, consistent with the application, to:
28.12    (1) provide teacher training and instruction to more effectively serve students,
28.13including low-income and other disadvantaged students, who participate in preadvanced
28.14placement, advanced placement, or international baccalaureate, or concurrent enrollment
28.15courses or programs;
28.16    (2) further develop preadvanced placement, advanced placement, or international
28.17baccalaureate, or concurrent enrollment courses or programs;
28.18    (3) improve the transition between grade levels to better prepare students, including
28.19low-income and other disadvantaged students, for succeeding in preadvanced placement,
28.20advanced placement, or international baccalaureate, or concurrent enrollment courses or
28.21programs;
28.22    (4) purchase books and supplies;
28.23    (5) pay course or program fees;
28.24    (6) increase students' participation in and success with preadvanced placement,
28.25advanced placement, or international baccalaureate, or concurrent enrollment courses or
28.26programs;
28.27    (7) expand students' access to preadvanced placement, advanced placement, or
28.28international baccalaureate, or concurrent enrollment courses or programs through online
28.29learning;
28.30    (8) hire appropriately licensed personnel to teach additional advanced placement or
28.31international baccalaureate, or concurrent enrollment courses or programs; or
28.32    (9) engage in other activity directly related to expanding students' access to,
28.33participation in, and success with preadvanced placement, advanced placement, or
28.34international baccalaureate, or concurrent enrollment courses or programs, including
28.35low-income and other disadvantaged students.
29.1    Subd. 4. Annual reports. (a) Each school district and charter school that receives
29.2a grant under this section annually must collect demographic and other student data to
29.3demonstrate and measure the extent to which the district or charter school raised students'
29.4academic achievement under this program and must report the data to the commissioner
29.5in the form and manner the commissioner determines. The commissioner annually by
29.6February 15 must make summary data about this program available to the education
29.7policy and finance committees of the legislature.
29.8    (b) Each school district and charter school that receives a grant under this section
29.9annually must report to the commissioner, consistent with the Uniform Financial
29.10Accounting and Reporting Standards, its actual expenditures for advanced placement,
29.11preadvanced placement, and international baccalaureate, and concurrent enrollment
29.12courses and programs. The report must demonstrate that the school district or charter
29.13school has maintained its effort from other sources for advanced placement, preadvanced
29.14placement, and international baccalaureate, and concurrent enrollment courses and
29.15programs compared with the previous fiscal year, and the district or charter school has
29.16expended all grant funds, consistent with its approved budget.
29.17    Subd. 5. Accreditation of concurrent enrollment programs. (a) To establish a
29.18uniform standard by which concurrent enrollment courses and professional development
29.19activities may be measured, postsecondary institutions are encouraged to apply for
29.20accreditation by the National Alliance of Concurrent Enrollment Partnership.
29.21(b) Beginning in fiscal year 2011, districts offering a concurrent enrollment program
29.22according to an agreement under section 124D.09, subdivision 10, are only eligible for aid
29.23under this section and section 120B.13, if the college or university concurrent enrollment
29.24courses offered by the district are accredited by the National Alliance of Concurrent
29.25Enrollment Partnership, in the process of being accredited, or are shown by clear evidence
29.26to be of comparable standard to accredited courses.

29.27    Sec. 9. [120B.299] DEFINITIONS.
29.28    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
29.29    Subd. 2. Growth. "Growth" compares the difference in a student's achievement
29.30score at two or more distinct points in time.
29.31    Subd. 3. Value added. "Value added" is the amount of achievement a student
29.32demonstrates above an established baseline. The difference between the student's score
29.33and the baseline defines value added.
29.34    Subd. 4. Value-added growth. "Value-added growth" is based on a student's
29.35growth score. In a value-added growth system, the student's first test is the baseline, and
30.1the difference between the student's first and next test scores within a defined period is the
30.2measure of value added. Value-added growth models use student-level data to measure
30.3what portion of a student's growth can be explained by inputs related to the educational
30.4environment.
30.5    Subd. 5. Adequate yearly progress. A school or district makes "adequate yearly
30.6progress" if, for every student subgroup under the federal 2001 No Child Left Behind
30.7Act in the school or district, its proficiency index or other approved adjustments for
30.8performance, based on statewide assessment scores, meets or exceeds federal expectations.
30.9To make adequate yearly progress, the school or district also must satisfy applicable
30.10federal requirements related to student attendance, graduation, and test participation rates.
30.11    Subd. 6. State growth target. (a) "State growth target" is the average year-two
30.12assessment scores for students with similar year-one assessment scores.
30.13    (b) The state growth targets for each grade and subject are benchmarked as follows
30.14until the assessment scale changes:
30.15(1) beginning in the 2008-2009 school year, the state growth target for grades 3 to 8
30.16is benchmarked to 2006-2007 and 2007-2008 school year data;
30.17(2) beginning in the 2008-2009 school year the state growth target for grade 10 is
30.18benchmarked to 2005-2006 and 2006-2007 school year data;
30.19(3) for the 2008-2009 school year, the state growth target for grade 11 is
30.20benchmarked to 2005-2006 school year data; and
30.21(4) beginning in the 2009-2010 school year, the state growth target for grade 11 is
30.22benchmarked to 2005-2006 and 2006-2007 school year data.
30.23    (c) Each time before the assessment scale changes, a stakeholder group that includes
30.24assessment and evaluation directors and staff and researchers must recommend a new
30.25state growth target that the commissioner must consider when revising standards under
30.26section 120B.023, subdivision 2.
30.27    Subd. 7. Low growth. "Low growth" is an assessment score one-half standard
30.28deviation below the state growth target.
30.29    Subd. 8. Medium growth. "Medium growth" is an assessment score within one-half
30.30standard deviation above or below the state growth target.
30.31    Subd. 9. High growth. "High growth" is an assessment score one-half standard
30.32deviation or more above the state growth target.
30.33    Subd. 10. Proficiency. "Proficiency" for purposes of reporting growth on school
30.34performance report cards under section 120B.36, subdivision 1, means those students
30.35who, in the previous school year, scored at or above "meets standards" on the statewide
31.1assessments under section 120B.30. Each year, school performance report cards must
31.2separately display: (1) the numbers and percentages of students who achieved low growth,
31.3medium growth, and high growth and achieved proficiency in the previous school year;
31.4and (2) the numbers and percentages of students who achieved low growth, medium
31.5growth, and high growth and did not achieve proficiency in the previous school year.
31.6    Subd. 11. Growth and progress toward proficiency. The categories of low
31.7growth, medium growth, and high growth shall be used to indicate both (1) growth and (2)
31.8progress toward grade-level proficiency that is consistent with subdivision 10.
31.9EFFECTIVE DATE.This section is effective the day following final enactment.

31.10    Sec. 10. Minnesota Statutes 2008, section 120B.30, is amended to read:
31.11120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
31.12    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
31.13with appropriate technical qualifications and experience and stakeholders, consistent with
31.14subdivision 1a, shall include in the comprehensive assessment system, for each grade
31.15level to be tested, state-constructed tests developed from and to be computer-adaptive
31.16reading and mathematics assessments for general education students that are aligned with
31.17the state's required academic standards under section 120B.021, include both multiple
31.18choice and constructed response questions, and are administered annually to all students
31.19in grades 3 through 8 and at the high school level. A State-developed test high school
31.20tests aligned with the state's required academic standards under section 120B.021 and
31.21administered to all high school students in a subject other than writing, developed after
31.22the 2002-2003 school year, must include both machine-scoreable multiple choice and
31.23constructed response questions. The commissioner shall establish one or more months
31.24during which schools shall administer the tests to students each school year. Schools
31.25that the commissioner identifies for stand-alone field testing or other national sampling
31.26must participate as directed. Superintendents or charter school directors may appeal in
31.27writing to the commissioner for an exemption from a field test based on undue hardship.
31.28The commissioner's decision regarding the appeal is final. For students enrolled in
31.29grade 8 before the 2005-2006 school year, only Minnesota basic skills tests in reading,
31.30mathematics, and writing shall fulfill students' basic skills testing requirements for a
31.31passing state notation. The passing scores of basic skills tests in reading and mathematics
31.32are the equivalent of 75 percent correct for students entering grade 9 in 1997 and
31.33thereafter, as based on the first uniform test administration of administered in February
31.341998. Students who have not successfully passed a Minnesota basic skills test by the end
32.1of the 2011-2012 school year must pass the graduation-required assessments for diploma
32.2under paragraph (b).
32.3    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
32.4following options shall fulfill students' state graduation test requirements:
32.5    (1) for reading and mathematics:
32.6    (i) obtaining an achievement level equivalent to or greater than proficient as
32.7determined through a standard setting process on the Minnesota comprehensive
32.8assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
32.9score as determined through a standard setting process on the graduation-required
32.10assessment for diploma in grade 10 for reading and grade 11 for mathematics or
32.11subsequent retests;
32.12    (ii) achieving a passing score as determined through a standard setting process on the
32.13state-identified language proficiency test in reading and the mathematics test for English
32.14language learners or the graduation-required assessment for diploma equivalent of those
32.15assessments for students designated as English language learners;
32.16    (iii) achieving an individual passing score on the graduation-required assessment
32.17for diploma as determined by appropriate state guidelines for students with an individual
32.18education plan or 504 plan;
32.19    (iv) obtaining achievement level equivalent to or greater than proficient as
32.20determined through a standard setting process on the state-identified alternate assessment
32.21or assessments in grade 10 for reading and grade 11 for mathematics for students with
32.22an individual education plan; or
32.23    (v) achieving an individual passing score on the state-identified alternate assessment
32.24or assessments as determined by appropriate state guidelines for students with an
32.25individual education plan; and
32.26    (2) for writing:
32.27    (i) achieving a passing score on the graduation-required assessment for diploma;
32.28    (ii) achieving a passing score as determined through a standard setting process on
32.29the state-identified language proficiency test in writing for students designated as English
32.30language learners;
32.31    (iii) achieving an individual passing score on the graduation-required assessment
32.32for diploma as determined by appropriate state guidelines for students with an individual
32.33education plan or 504 plan; or
32.34    (iv) achieving an individual passing score on the state-identified alternate assessment
32.35or assessments as determined by appropriate state guidelines for students with an
32.36individual education plan.
33.1    (c) Students enrolled in grade 8 in any school year from the 2005-2006 school
33.2year to the 2009-2010 school year who do not pass the reading or mathematics
33.3graduation-required assessment for diploma under paragraph (b) are eligible to receive a
33.4high school diploma with a passing state notation if they:
33.5(1) complete with a passing score or grade all state and local coursework and credits
33.6required for graduation by the school board granting the students their diploma;
33.7(2) participate in district-prescribed academic remediation in reading or mathematics;
33.8and
33.9    (3) fully participate in at least two retests of the GRAD in each subject they failed or
33.10until they pass the subject they previously failed, whichever comes first. A school board
33.11issuing a student a high school diploma in any school year from the 2009-2010 school year
33.12through the 2013-2014 school year must record on the student's high school transcript the
33.13student's score as the total number of test items and the number of test items the student
33.14answered correctly on the reading and mathematics graduation-required assessments for
33.15diploma under this subdivision.
33.16In addition, the school board granting the students their diplomas may formally
33.17decide to include a notation of high achievement on the high school diplomas of those
33.18graduating seniors who, according to established school board criteria, demonstrate
33.19exemplary academic achievement during high school.
33.20(d) The 3rd through 8th grade computer-adaptive assessments and high school level
33.21test results shall be available to districts for diagnostic purposes affecting student learning
33.22and district instruction and curriculum, and for establishing educational accountability.
33.23The commissioner must disseminate to the public the computer-adaptive assessments and
33.24high school test results upon receiving those results.
33.25    (d) State (e) The 3rd through 8th grade computer-adaptive assessments and
33.26high school tests must be constructed and aligned with state academic standards. The
33.27commissioner shall determine the testing process and the order of administration shall be
33.28determined by the commissioner. The statewide results shall be aggregated at the site and
33.29district level, consistent with subdivision 1a.
33.30    (e) (f) In addition to the testing and reporting requirements under this section, the
33.31commissioner shall include the following components in the statewide public reporting
33.32system:
33.33    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
33.34school level that provides appropriate, technically sound accommodations, or alternate
33.35assessments, or exemptions consistent with applicable federal law, only with parent or
33.36guardian approval, for those very few students for whom the student's individual education
34.1plan team under sections 125A.05 and 125A.06 determines that the general statewide test
34.2is inappropriate for a student, or for a limited English proficiency student under section
34.3124D.59, subdivision 2;
34.4    (2) educational indicators that can be aggregated and compared across school
34.5districts and across time on a statewide basis, including average daily attendance, high
34.6school graduation rates, and high school drop-out rates by age and grade level;
34.7    (3) state results on the American College Test; and
34.8    (4) state results from participation in the National Assessment of Educational
34.9Progress so that the state can benchmark its performance against the nation and other
34.10states, and, where possible, against other countries, and contribute to the national effort
34.11to monitor achievement.
34.12    Subd. 1a. Statewide and local assessments; results. (a) For purposes of this
34.13section, the following definitions have the meanings given them.
34.14(1) "Computer-adaptive assessments" means fully adaptive assessments or partially
34.15adaptive assessments.
34.16(2) "Fully adaptive assessments" include test items that are on-grade level and items
34.17that may be above or below a student's grade level.
34.18(3) "Partially adaptive assessments" include two portions of test items, where one
34.19portion is limited to on-grade level test items and a second portion includes test items that
34.20are on-grade level or above or below a student's grade level.
34.21(4) "On-grade level" test items contain subject area content that is aligned to state
34.22academic standards for the grade level of the student taking the assessment.
34.23(5) "Above-grade level" test items contain subject area content that is above the grade
34.24level of the student taking the assessment and are considered aligned with state academic
34.25standards to the extent they are aligned with content represented in state academic
34.26standards above the grade level of the student taking the assessment. Notwithstanding
34.27the student's grade level, administering above-grade level test items to a student does not
34.28violate the requirement that state assessments must be aligned with state standards.
34.29(6) "Below-grade level" test items contain subject area content that is below
34.30the grade level of the student taking the test and are considered aligned with state
34.31academic standards to the extent they are aligned with content represented in state
34.32academic standards below the student's current grade level. Notwithstanding the student's
34.33grade level, administering below-grade level test items to a student does not violate the
34.34requirement that state assessments must be aligned with state standards.
34.35(b) The commissioner must use fully adaptive assessments to the extent no net loss
34.36of federal and state funds occurs as a result of using these assessments. If a net loss of
35.1federal and state funds were to occur under this subdivision, then the commissioner must
35.2use partially adaptive assessments to meet existing federal educational accountability
35.3requirements.
35.4(c) For purposes of conforming with existing federal educational accountability
35.5requirements, the commissioner must develop implement computer-adaptive reading,
35.6and mathematics, and science assessments for grades 3 through 8, state-developed
35.7high school reading and mathematics tests aligned with state academic standards, and
35.8science assessments under clause (2) that districts and sites must use to monitor student
35.9growth toward achieving those standards. The commissioner must not develop statewide
35.10assessments for academic standards in social studies, health and physical education, and
35.11the arts. The commissioner must require:
35.12    (1) annual computer-adaptive reading and mathematics assessments in grades 3
35.13through 8, and at the high school level for the 2005-2006 school year and later high school
35.14reading and mathematics tests; and
35.15    (2) annual science assessments in one grade in the grades 3 through 5 span, the
35.16grades 6 through 9 8 span, and a life sciences assessment in the grades 10 9 through 12
35.17span for the 2007-2008 school year and later, and the commissioner must not require
35.18students to achieve a passing score on high school science assessments as a condition of
35.19receiving a high school diploma.
35.20The commissioner must ensure that for annual computer-adaptive assessments:
35.21(i) individual student performance data and achievement and summary reports are
35.22available within three school days of when students take an assessment;
35.23(ii) growth information is available for each student from the student's first
35.24assessment to each proximate assessment using a constant measurement scale;
35.25(iii) parents, teachers, and school administrators are able to use elementary and
35.26middle school student performance data to project student achievement in high school; and
35.27(iv) useful diagnostic information about areas of students' academic strengths and
35.28weaknesses is available to teachers and school administrators for purposes of improving
35.29student instruction and indicating the specific skills and concepts that should be introduced
35.30and developed for students at given score levels, organized by strands within subject
35.31areas, and linked to state academic standards.
35.32When contracting for computer-adaptive assessments under this section, the
35.33weighting criteria the commissioner uses to evaluate contract proposals must give
35.34preference to vendors prepared to provide statewide computer-adaptive assessments and
35.35options for locally selected, locally financed, and locally implemented assessments that are
35.36independently aligned to state standards and used to inform curriculum and instruction.
36.1    (b) (d) The commissioner must ensure that all statewide tests administered to
36.2elementary and secondary students measure students' academic knowledge and skills and
36.3not students' values, attitudes, and beliefs.
36.4    (c) (e) Reporting of assessment results must:
36.5    (1) provide timely, useful, and understandable information on the performance of
36.6individual students, schools, school districts, and the state;
36.7    (2) include, by no later than the 2008-2009 school year, a value-added component
36.8that is in addition to a measure for student achievement growth over time growth indicator
36.9of student achievement under section 120B.35, subdivision 3, paragraph (b); and
36.10    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
36.11whether students have met the state's basic skills requirements; and
36.12    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
36.13whether students have met the state's academic standards.
36.14    (d) (f) Consistent with applicable federal law and subdivision 1, paragraph (d),
36.15clause (1), the commissioner must include appropriate, technically sound accommodations
36.16or alternative assessments for the very few students with disabilities for whom statewide
36.17assessments are inappropriate and for students with limited English proficiency.
36.18    (e) (g) A school, school district, and charter school must administer statewide
36.19assessments under this section, as the assessments become available, to evaluate student
36.20progress in achieving the proficiency in the context of the state's grade level academic
36.21standards. If a state assessment is not available, a school, school district, and charter
36.22school must determine locally if a student has met the required academic standards. A
36.23school, school district, or charter school may use a student's performance on a statewide
36.24assessment as one of multiple criteria to determine grade promotion or retention. A
36.25school, school district, or charter school may use a high school student's performance on a
36.26statewide assessment as a percentage of the student's final grade in a course, or place a
36.27student's assessment score on the student's transcript.
36.28    (h) For each procurement cycle for computer-adaptive assessments, the
36.29commissioner must report to the K-12 education policy and finance committees of the
36.30legislature on the costs of implementing computer-adaptive assessments and demonstrate
36.31that these assessments both represent the greatest value to the state and local school
36.32districts and minimize the need for redundant assessments.
36.33    Subd. 2. Department of Education assistance. The Department of Education
36.34shall contract for professional and technical services according to competitive bidding
36.35procedures under chapter 16C for purposes of this section.
37.1    Subd. 3. Reporting. The commissioner shall report test data publicly and to
37.2stakeholders, including the performance achievement levels developed from students'
37.3unweighted test scores in each tested subject and a listing of demographic factors that
37.4strongly correlate with student performance. The commissioner shall also report data that
37.5compares performance results among school sites, school districts, Minnesota and other
37.6states, and Minnesota and other nations. The commissioner shall disseminate to schools
37.7and school districts a more comprehensive report containing testing information that
37.8meets local needs for evaluating instruction and curriculum.
37.9    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
37.10to provide public and parental access for review of basic skills tests, Minnesota
37.11Comprehensive Assessments, or any other such statewide test and assessment. Upon
37.12receiving a written request, the commissioner must make available to parents or guardians
37.13a copy of their student's actual responses to the test questions to be reviewed by the
37.14parent for their review.
37.15EFFECTIVE DATE.This section is effective the day following final enactment.
37.16Subdivision 1, paragraph (c), applies to the 2009-2010 through 2013-2014 school years
37.17only. Notwithstanding any other law to the contrary, requirements related to the reading
37.18and mathematics graduation-required assessment for diploma under this section are
37.19repealed June 30, 2014, and the commissioner of education must not implement any
37.20alternative to the reading and mathematics graduation-required assessment for diploma
37.21without specific legislative authority. Requirements for using computer-adaptive
37.22mathematics assessments for grades 3 through 8 apply in the 2010-2011 school year and
37.23later and requirements for using computer-adaptive reading assessments for grades 3
37.24through 8 apply in the 2012-2013 school year and later.

37.25    Sec. 11. Minnesota Statutes 2008, section 120B.31, is amended to read:
37.26120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
37.27ADJUSTMENTS.
37.28    Subdivision 1. Educational accountability and public reporting. Consistent
37.29with the process direction to adopt a results-oriented graduation rule statewide academic
37.30standards under section 120B.02, the department, in consultation with education and
37.31other system stakeholders, must establish a coordinated and comprehensive system of
37.32educational accountability and public reporting that promotes higher greater academic
37.33achievement, preparation for higher academic education, preparation for the world of
37.34work, citizenship under sections 120B.021, subdivision 1, clause (4), and 120B.024,
37.35paragraph (a), clause (4), and the arts.
38.1    Subd. 2. Statewide testing. Each school year, all school districts shall give a
38.2uniform statewide test to students at specified grades to provide information on the status,
38.3needs and performance of Minnesota students.
38.4    Subd. 3. Educational accountability. (a) The Independent Office of Educational
38.5Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
38.6section 28, subdivision 2, is established, and shall be funded through the Board of Regents
38.7of the University of Minnesota. The office shall advise the education committees of the
38.8legislature and the commissioner of education, at least on a biennial basis, on:
38.9(1) the degree to which the statewide educational accountability and reporting system
38.10includes a comprehensive assessment framework that measures school accountability
38.11for students achieving the goals described in the state's results-oriented high school
38.12graduation rule;
38.13(2) the completeness, integrity, and use of the information provided by the statewide
38.14educational accountability and reporting system in the context of enabling legislators and
38.15other stakeholders to make fully informed education policy decisions consistent with the
38.16best and most current academic research available; and
38.17(3) the impact the statewide educational accountability and reporting system has on
38.18prekindergarten through grade 12 education policy, effectiveness, resource distribution,
38.19and structure.
38.20(b) The office shall determine and annually report to the legislature whether and
38.21how effectively:
38.22    (1) the statewide system of educational accountability utilizes uses multiple
38.23indicators to provide valid and reliable comparative and contextual data on students,
38.24schools, districts, and the state, and if not, recommend ways to improve the accountability
38.25reporting system;
38.26    (2) the commissioner makes statistical adjustments when reporting student data over
38.27time, consistent with clause (4);
38.28    (3) the commissioner uses indicators of student achievement growth a value-added
38.29growth indicator of student achievement over time and a value-added assessment model
38.30that estimates the effects of the school and school district on student achievement to
38.31measure and measures school performance, consistent with section 120B.36, subdivision
38.321 120B.35, subdivision 3, paragraph (b);
38.33    (4) the commissioner makes (3) data are available on students who do not pass one
38.34or more of the state's required GRAD tests and do not receive a diploma as a consequence,
38.35and categorizes these data are categorized according to gender, race, eligibility for free
38.36or reduced lunch, and English language proficiency; and
39.1    (5) the commissioner fulfills (4) the requirements under section 127A.095,
39.2subdivision 2 , are met.
39.3    (b) (c) When the office reviews the statewide educational accountability and
39.4reporting system, it shall also consider:
39.5    (1) the objectivity and neutrality of the state's educational accountability system; and
39.6    (2) the impact of a testing program on school curriculum and student learning.
39.7    Subd. 4. Statistical adjustments; student performance data. In developing
39.8policies and assessment processes to hold schools and districts accountable for high
39.9levels of academic standards under section 120B.021, the commissioner shall aggregate
39.10student data over time to report student performance and growth levels measured at the
39.11school, school district, regional, or and statewide level. When collecting and reporting
39.12the performance data, the commissioner shall: (1) acknowledge the impact of significant
39.13demographic factors such as residential instability, the number of single parent families,
39.14parents' level of education, and parents' income level on school outcomes; and (2)
39.15organize and report the data so that state and local policy makers can understand the
39.16educational implications of changes in districts' demographic profiles over time. Any
39.17report the commissioner disseminates containing summary data on student performance
39.18must integrate student performance and the demographic factors that strongly correlate
39.19with that performance.
39.20EFFECTIVE DATE.This section is effective the day following final enactment.

39.21    Sec. 12. Minnesota Statutes 2008, section 120B.35, is amended to read:
39.22120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
39.23GROWTH.
39.24    Subdivision 1. Adequate yearly progress of schools and students School and
39.25student indicators of growth and achievement. The commissioner must develop and
39.26implement a system for measuring and reporting academic achievement and individual
39.27student progress growth, consistent with the statewide educational accountability and
39.28reporting system. The system components of the system must measure and separately
39.29report the adequate yearly progress of schools and the growth of individual students:
39.30students' current achievement in schools under subdivision 2; and individual students'
39.31educational progress growth over time under subdivision 3. The system also must include
39.32statewide measures of student academic achievement growth that identify schools with
39.33high levels of achievement growth, and also schools with low levels of achievement
39.34growth that need improvement. When determining a school's effect, the data must
39.35include both statewide measures of student achievement and, to the extent annual tests
40.1are administered, indicators of achievement growth that take into account a student's
40.2prior achievement. Indicators of achievement and prior achievement must be based on
40.3highly reliable statewide or districtwide assessments. Indicators that take into account a
40.4student's prior achievement must not be used to disregard a school's low achievement or to
40.5exclude a school from a program to improve low achievement levels. The commissioner
40.6by January 15, 2002, must submit a plan for integrating these components to the chairs of
40.7the legislative committees having policy and budgetary responsibilities for elementary
40.8and secondary education.
40.9    Subd. 2. Federal expectations for student academic achievement. (a) Each school
40.10year, a school district must determine if the student achievement levels at each school site
40.11meet state and local federal expectations. If student achievement levels at a school site do
40.12not meet state and local federal expectations and the site has not made adequate yearly
40.13progress for two consecutive school years, beginning with the 2001-2002 school year,
40.14the district must work with the school site to adopt a plan to raise student achievement
40.15levels to meet state and local federal expectations. The commissioner of education shall
40.16establish student academic achievement levels to comply with this paragraph.
40.17(b) School sites identified as not meeting federal expectations must develop
40.18continuous improvement plans in order to meet state and local federal expectations for
40.19student academic achievement. The department, at a district's request, must assist the
40.20district and the school site in developing a plan to improve student achievement. The plan
40.21must include parental involvement components.
40.22(c) The commissioner must:
40.23(1) provide assistance to assist school sites and districts identified as not meeting
40.24federal expectations; and
40.25(2) provide technical assistance to schools that integrate student progress
40.26achievement measures under subdivision 3 in into the school continuous improvement
40.27plan.
40.28(d) The commissioner shall establish and maintain a continuous improvement Web
40.29site designed to make data on every school and district available to parents, teachers,
40.30administrators, community members, and the general public.
40.31    Subd. 3. Student progress assessment State growth target; other state measures.
40.32(a) The state's educational assessment system component measuring individual students'
40.33educational progress must be growth is based, to the extent annual tests are administered,
40.34on indicators of achievement growth that show an individual student's prior achievement.
40.35Indicators of achievement and prior achievement must be based on highly reliable
40.36statewide or districtwide assessments.
41.1(b) The commissioner, in consultation with a stakeholder group that includes
41.2assessment and evaluation directors and staff and researchers must identify effective
41.3models for measuring individual student progress that enable a school district or school
41.4site to perform gains-based analysis, including evaluating the effects of the teacher,
41.5school, and school district on student achievement over time. At least one model must
41.6be a "value-added" assessment model that reliably estimates those effects for classroom
41.7settings where a single teacher teaches multiple subjects to the same group of students, for
41.8team teaching arrangements, and for other teaching circumstances. implement a model
41.9that uses a value-added growth indicator and includes criteria for identifying schools
41.10and school districts that demonstrate medium and high growth under section 120B.299,
41.11subdivisions 8 and 9, and may recommend other value-added measures under section
41.12120B.299, subdivision 3. The model may be used to advance educators' professional
41.13development and replicate programs that succeed in meeting students' diverse learning
41.14needs. Data on individual teachers generated under the model are personnel data under
41.15section 13.43. The model must allow users to:
41.16(1) report student growth consistent with this paragraph; and
41.17(2) for all student categories, report and compare aggregated and disaggregated state
41.18growth data using the nine student categories identified under the federal 2001 No Child
41.19Left Behind Act and two student gender categories of male and female, respectively,
41.20following appropriate reporting practices to protect nonpublic student data.
41.21The commissioner must report separate measures of student growth and proficiency,
41.22consistent with this paragraph.
41.23(c) If a district has an accountability plan that includes gains-based analysis or
41.24"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
41.25those measures in determining whether the district or school site meets expectations. The
41.26department must coordinate with the district in evaluating school sites and continuous
41.27improvement plans, consistent with best practices. When reporting student performance
41.28under section 120B.36, subdivision 1, the commissioner annually, beginning July 1,
41.292011, must report two core measures indicating the extent to which current high school
41.30graduates are being prepared for postsecondary academic and career opportunities:
41.31(1) a preparation measure indicating the number and percentage of high school
41.32graduates in the most recent school year who completed course work important to
41.33preparing them for postsecondary academic and career opportunities, consistent with
41.34the core academic subjects required for admission to Minnesota's public colleges and
41.35universities as determined by the Office of Higher Education under chapter 136A; and
42.1(2) a rigorous coursework measure indicating the number and percentage of high
42.2school graduates in the most recent school year who successfully completed one or more
42.3college-level advanced placement, international baccalaureate, postsecondary enrollment
42.4options including concurrent enrollment, other rigorous courses of study under section
42.5120B.021, subdivision 1a, or industry certification courses or programs.
42.6When reporting the core measures under clauses (1) and (2), the commissioner must also
42.7analyze and report separate categories of information using the nine student categories
42.8identified under the federal 2001 No Child Left Behind Act and two student gender
42.9categories of male and female, respectively following appropriate reporting practices to
42.10protect nonpublic student data.
42.11(d) When reporting student performance under section 120B.36, subdivision 1, the
42.12commissioner annually, beginning July 1, 2013, must report summary data on school
42.13safety and students' engagement and connection at school. The summary data under this
42.14paragraph are separate from and must not be used for any purpose related to measuring
42.15or evaluating the performance of classroom teachers. The commissioner, in consultation
42.16with qualified experts on student engagement and connection and classroom teachers,
42.17must identify highly reliable variables that generate summary data under this paragraph.
42.18The summary data may be used at school, district, and state levels only. Any data on
42.19individuals received, collected, or created that are used to generate the summary data
42.20under this paragraph are nonpublic data under section 13.02, subdivision 9.
42.21    Subd. 4. Improving schools. Consistent with the requirements of this section,
42.22beginning June 20, 2012, the commissioner of education must establish a second
42.23achievement benchmark to identify improving schools. The commissioner must
42.24recommend to annually report to the public and the legislature by February 15, 2002,
42.25indicators in addition to the achievement benchmark for identifying improving schools,
42.26including an indicator requiring a school to demonstrate ongoing successful use of best
42.27teaching practices the organizational and curricular practices implemented in those schools
42.28that demonstrate medium and high growth compared to the state growth target.
42.29    Subd. 5. Improving graduation rates for students with emotional or behavioral
42.30disorders. (a) A district must develop strategies in conjunction with parents of students
42.31with emotional or behavioral disorders and the county board responsible for implementing
42.32sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
42.33school, when the district has a drop-out rate for students with an emotional or behavioral
42.34disorder in grades 9 through 12 exceeding 25 percent.
42.35(b) A district must develop a plan in conjunction with parents of students with
42.36emotional or behavioral disorders and the local mental health authority to increase the
43.1graduation rates of students with emotional or behavioral disorders. A district with a
43.2drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
43.312 that is in the top 25 percent of all districts shall submit a plan for review and oversight
43.4to the commissioner.
43.5EFFECTIVE DATE.Subdivision 3, paragraph (b), applies to students in the
43.62008-2009 school year and later. Subdivision 3, paragraph (c), applies to students in the
43.72010-2011 school year and later. Subdivision 3, paragraph (d), applies to data that are
43.8collected in the 2010-2011 school year and later and reported annually beginning July 1,
43.92013, consistent with advice the commissioner receives from recognized and qualified
43.10experts on student engagement and connection and classroom teachers. Subdivision 4
43.11applies in the 2011-2012 school year and later.

43.12    Sec. 13. Minnesota Statutes 2008, section 120B.36, is amended to read:
43.13120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
43.14    Subdivision 1. School performance report cards. (a) The commissioner shall use
43.15objective criteria based on levels of student performance to report at least student academic
43.16performance under section 120B.35, subdivision 2, the percentages of students showing
43.17low, medium, and high growth under section 120B.35, subdivision 3, paragraph (b),
43.18school safety and student engagement and connection under section 120B.35, subdivision
43.193, paragraph (d), rigorous coursework under section 120B.35, subdivision 3, paragraph
43.20(c), two separate student-to-teacher ratios that clearly indicate the definition of teacher
43.21consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios,
43.22and staff characteristics excluding salaries, with a value-added component added no later
43.23than the 2008-2009 school year student enrollment demographics, district mobility, and
43.24extracurricular activities. The report also must indicate a school's adequate yearly progress
43.25status, and must not set any designations applicable to high- and low-performing schools
43.26due solely to adequate yearly progress status.
43.27    (b) The commissioner shall develop, annually update, and post on the department
43.28Web site school performance report cards.
43.29    (c) The commissioner must make available the first performance report cards by
43.30November 2003, and during the beginning of each school year thereafter.
43.31    (d) A school or district may appeal its adequate yearly progress status in writing to
43.32the commissioner within 30 days of receiving the notice of its status. The commissioner's
43.33decision to uphold or deny an appeal is final.
43.34    (e) School performance report cards card data are nonpublic data under section
43.3513.02, subdivision 9 , until not later than ten days after the appeal procedure described in
44.1paragraph (d) concludes. The department shall annually post school performance report
44.2cards to its public Web site no later than September 1.
44.3    Subd. 2. Adequate yearly progress and other data. All data the department
44.4receives, collects, or creates for purposes of determining to determine adequate yearly
44.5progress designations status under Public Law 107-110, section 1116, set state growth
44.6targets, and determine student growth are nonpublic data under section 13.02, subdivision
44.79 , until not later than ten days after the appeal procedure described in subdivision 1,
44.8paragraph (d), concludes. Districts must provide parents sufficiently detailed summary
44.9data to permit parents to appeal under Public Law 107-110, section 1116(b)(2). The
44.10department shall annually post federal adequate yearly progress data and state student
44.11growth data to its public Web site no later than September 1.
44.12EFFECTIVE DATE.This section is effective the day following final enactment.

44.13    Sec. 14. Minnesota Statutes 2008, section 121A.15, subdivision 8, is amended to read:
44.14    Subd. 8. Report. The administrator or other person having general control and
44.15supervision of the elementary or secondary school shall file a report with the commissioner
44.16on all persons enrolled in the school. The superintendent of each district shall file a report
44.17with the commissioner for all persons within the district receiving instruction in a home
44.18school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
44.19instruction in a home school shall submit the statements as required by subdivisions 1, 2,
44.203, and 4 to the superintendent of the district in which the person resides by October 1 of
44.21each school year the first year of their home schooling and the 7th grade year. The school
44.22report must be prepared on forms developed jointly by the commissioner of health and the
44.23commissioner of education and be distributed to the local districts by the commissioner
44.24of health. The school report must state the number of persons attending the school, the
44.25number of persons who have not been immunized according to subdivision 1 or 2, and
44.26the number of persons who received an exemption under subdivision 3, clause (c) or (d).
44.27The school report must be filed with the commissioner of education within 60 days of the
44.28commencement of each new school term. Upon request, a district must be given a 60-day
44.29extension for filing the school report. The commissioner of education shall forward the
44.30report, or a copy thereof, to the commissioner of health who shall provide summary
44.31reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
44.32or other person having general control and supervision of the child care facility shall file a
44.33report with the commissioner of human services on all persons enrolled in the child care
44.34facility. The child care facility report must be prepared on forms developed jointly by
44.35the commissioner of health and the commissioner of human services and be distributed
45.1to child care facilities by the commissioner of health. The child care facility report
45.2must state the number of persons enrolled in the facility, the number of persons with no
45.3immunizations, the number of persons who received an exemption under subdivision 3,
45.4clause (c) or (d), and the number of persons with partial or full immunization histories.
45.5The child care facility report must be filed with the commissioner of human services by
45.6November 1 of each year. The commissioner of human services shall forward the report,
45.7or a copy thereof, to the commissioner of health who shall provide summary reports to
45.8boards of health as defined in section 145A.02, subdivision 2. The report required by this
45.9subdivision is not required of a family child care or group family child care facility, for
45.10prekindergarten children enrolled in any elementary or secondary school provided services
45.11according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
45.1275 percent of children in the facility participate on a onetime only or occasional basis to a
45.13maximum of 45 hours per child, per month.

45.14    Sec. 15. Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:
45.15    Subd. 2. Eligibility; board composition. Except for the representatives of higher
45.16education and the public, to be eligible for appointment to the Board of Teaching a person
45.17must be a teacher currently teaching in a Minnesota school and fully licensed for the
45.18position held and have at least five years teaching experience in Minnesota, including the
45.19two years immediately preceding nomination and appointment. Each nominee, other than
45.20a public nominee, must be selected on the basis of professional experience and knowledge
45.21of teacher education, accreditation, and licensure. The board must be composed of:
45.22(1) six teachers who are currently teaching in a Minnesota school or who were
45.23teaching at the time of the appointment, at least four of whom must be teaching in a
45.24public school;
45.25(2) one higher education representative, who must be a faculty member preparing
45.26teachers;
45.27(3) one school administrator; and
45.28(4) three members of the public, two of whom must be present or former members
45.29of school boards.

45.30    Sec. 16. Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:
45.31    Subd. 3. Vacant position. With the exception of a teacher who retires from teaching
45.32during the course of completing a board term, the position of a member who leaves
45.33Minnesota or whose employment status changes to a category different from that from
45.34which appointed is deemed vacant.

46.1    Sec. 17. Minnesota Statutes 2008, section 122A.18, subdivision 4, is amended to read:
46.2    Subd. 4. Expiration and renewal. (a) Each license the Department of Education
46.3issues through its licensing section must bear the date of issue. Licenses must expire
46.4and be renewed according to the respective rules the Board of Teaching, the Board
46.5of School Administrators, or the commissioner of education adopts. Requirements for
46.6renewing a license must include showing satisfactory evidence of successful teaching or
46.7administrative experience for at least one school year during the period covered by the
46.8license in grades or subjects for which the license is valid or completing such additional
46.9preparation as the Board of Teaching prescribes. The Board of School Administrators
46.10shall establish requirements for renewing the licenses of supervisory personnel except
46.11athletic coaches. The State Board of Teaching shall establish requirements for renewing
46.12the licenses of athletic coaches.
46.13(b) Relicensure applicants, as a condition of relicensure, must present to their
46.14local continuing education and relicensure committee or other local relicensure
46.15committee evidence of work that demonstrates professional reflection and growth in best
46.16teaching practices. The applicant must include a reflective statement of professional
46.17accomplishment and the applicant's own assessment of professional growth showing
46.18evidence of:
46.19(1) support for student learning;
46.20(2) use of best practices techniques and their applications to student learning;
46.21(3) collaborative work with colleagues that includes examples of collegiality such as
46.22attested-to committee work, collaborative staff development programs, and professional
46.23learning community work; or
46.24(4) continual professional development that may include job-embedded or other
46.25ongoing formal professional learning during the relicensure period.
46.26The Board of Teaching must ensure that its teacher relicensing requirements also include
46.27this paragraph.
46.28(b) (c) The Board of Teaching shall offer alternative continuing relicensure options
46.29for teachers who are accepted into and complete the National Board for Professional
46.30Teaching Standards certification process, and offer additional continuing relicensure
46.31options for teachers who earn National Board for Professional Teaching Standards
46.32certification. Continuing relicensure requirements for teachers who do not maintain
46.33National Board for Professional Teaching Standards certification are those the board
46.34prescribes, consistent with this section.
46.35EFFECTIVE DATE.This section is effective the day following final enactment
46.36and applies to licensees seeking relicensure beginning July 1, 2012.

47.1    Sec. 18. [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM
47.2AND RESIDENT TEACHER LICENSE FOR QUALIFIED NONTRADITIONAL
47.3CANDIDATES.
47.4    Subdivision 1. Requirements. (a) A teacher preparation program that is an
47.5alternative to acquiring an entrance license under section 122A.09, subdivision 4, or
47.6122A.24, and a two-year resident teacher license, which may be renewed one time by a
47.7resident teacher in good standing, are established as a way to acquire a standard entrance
47.8license. Either (1) a college or university with a board-approved alternative teacher
47.9preparation program or (2) a nonprofit corporation established for an education-related
47.10purpose and subject to chapter 317A that forms a partnership with a college or university
47.11with a board-approved teacher preparation program may offer this program in any
47.12instructional field. The Board of Teaching must ensure that this program serves to
47.13enhance any efforts by the state or a school district to reduce or eliminate the academic
47.14achievement gap among identified categories of students.
47.15(b) To participate in this program, a candidate must:
47.16(1) have a bachelor's degree with either a minimum 2.75 grade point average or at
47.17least ten years of relevant successful professional experience;
47.18(2) pass the reading, writing, and mathematics skills examination under section
47.19122A.18; and
47.20(3) obtain qualifying scores on board-approved content area and pedagogy tests.
47.21    Subd. 2. Characteristics. An alternative teacher preparation program offered by an
47.22eligible college or university under this section must include:
47.23(1) a minimum 200-hour instructional phase that provides intensive preparation for
47.24the resident teacher before that person assumes classroom responsibilities;
47.25(2) a research-based and results-oriented approach focused on best teaching practices
47.26to increase student proficiency and growth as measured against state academic standards;
47.27(3) strategies to combine pedagogy and best teaching practices to better inform
47.28teachers' classroom instruction;
47.29(4) assessment, supervision, and evaluation of the program participant to determine
47.30the participant's specific needs throughout the program and to support the participant
47.31in successfully completing the program;
47.32(5) formal instruction and intensive peer coaching during the school year that
47.33provide structured guidance and regular ongoing support;
47.34(6) high quality, sustained, intensive, and classroom-embedded staff development
47.35opportunities conducted by a mentorship team that may include school administrators,
48.1teachers, and postsecondary faculty members and are directed at improving student
48.2learning and achievement; and
48.3(7) a requirement that program participants demonstrate satisfactory progress toward
48.4receiving from the Board of Teaching a standard entrance license at the time the person's
48.5resident teacher license finally expires.
48.6    Subd. 3. Program approval. The Board of Teaching must approve alternative
48.7teacher preparation programs under this section based on board-adopted criteria that reflect
48.8best practices for alternative teacher preparation programs, consistent with this section.
48.9The board must permit licensure candidates to demonstrate licensure competencies in
48.10school-based settings and through other nontraditional licensure pathways.
48.11    Subd. 4. Evaluation; removal; probationary period. (a) Persons employed in
48.12a school district under a resident teacher license work under an annual contract that the
48.13school board may renew or not renew as it sees fit. The school board must adopt a plan for
48.14written evaluations of teachers working under a resident teacher license. Evaluations must
48.15occur periodically at least three times each year. A school board, after a hearing held upon
48.16due notice, may discharge a teacher working under a resident teacher license for cause,
48.17under section 122A.40 or 122A.41, effective immediately.
48.18(b) Each full school year that a teacher working under a resident teacher license is
48.19employed in a district is one year of the teacher's probationary employment period under
48.20either section 122A.40, subdivision 5, or 122A.41, subdivision 2. The teacher is eligible
48.21for continuing contract status under section 122A.40, subdivision 7, or tenure status under
48.22section 120A.41, subdivision 4, after completing the applicable probationary period.
48.23    Subd. 5. Reissued resident teacher license; approval for standard entrance
48.24license. The college or university participant or partner, in consultation with school site
48.25administrators, shall evaluate the performance of the resident teacher based on criteria
48.26established by the Board of Teaching and submit a report to the Board of Teaching
48.27recommending whether or not to reissue the person a resident teacher license or to issue
48.28the resident teacher a standard entrance license.
48.29    Subd. 6. Standard entrance license. The Board of Teaching may issue a standard
48.30entrance license to a resident teacher under this section who successfully performs
48.31throughout the program and is recommended for licensure under subdivision 5.
48.32    Subd. 7. Qualified teacher. A person with a valid resident teacher license under
48.33this section is the teacher of record and a qualified teacher within the meaning of section
48.34122A.16.
49.1    Subd. 8. Reports. The Board of Teaching must submit an interim report on the
49.2efficacy of these programs to the K-12 education policy and finance committees of the
49.3legislature by February 15, 2011, and a final report by February 15, 2013.
49.4EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
49.5later.

49.6    Sec. 19. Minnesota Statutes 2008, section 122A.40, subdivision 6, is amended to read:
49.7    Subd. 6. Peer review Mentoring for probationary teachers. A school board and
49.8an exclusive representative of the teachers in the district must develop a probationary
49.9teacher peer review process through joint agreement. The process may include having
49.10trained observers serve as mentors or coaches or having teachers participate in professional
49.11learning communities.
49.12EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
49.13later.

49.14    Sec. 20. Minnesota Statutes 2008, section 122A.40, subdivision 8, is amended to read:
49.15    Subd. 8. Peer review coaching for continuing contract teachers. A school board
49.16and an exclusive representative of the teachers in the district shall develop a peer review
49.17process for continuing contract teachers through joint agreement. The process may
49.18include having trained observers serve as peer coaches or having teachers participate in
49.19professional learning communities.
49.20EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
49.21later.

49.22    Sec. 21. Minnesota Statutes 2008, section 122A.41, subdivision 3, is amended to read:
49.23    Subd. 3. Peer review Mentoring for probationary teachers. A board and an
49.24exclusive representative of the teachers in the district must develop a probationary teacher
49.25peer review process through joint agreement. The process may include having trained
49.26observers serve as mentors or coaches or having teachers participate in professional
49.27learning communities.
49.28EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
49.29later.

49.30    Sec. 22. Minnesota Statutes 2008, section 122A.41, subdivision 5, is amended to read:
49.31    Subd. 5. Peer review coaching for continuing contract teachers. A school
49.32board and an exclusive representative of the teachers in the district must develop a peer
50.1review process for nonprobationary teachers through joint agreement. The process may
50.2include having trained observers serve as peer coaches or having teachers participate in
50.3professional learning communities.
50.4EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
50.5later.

50.6    Sec. 23. Minnesota Statutes 2008, section 122A.413, subdivision 2, is amended to read:
50.7    Subd. 2. Plan components. The educational improvement plan must be approved
50.8by the school board and have at least these elements:
50.9(1) assessment and evaluation tools to measure student performance and progress;
50.10(2) performance goals and benchmarks for improvement;
50.11(3) measures of student attendance and completion rates;
50.12(4) a rigorous research and practice-based professional development system, based
50.13on national and state standards of effective teaching practice and consistent with section
50.14122A.60 , that is aligned with educational improvement, and designed to achieve ongoing
50.15and schoolwide progress and growth in teaching quality improvement, and consistent with
50.16clearly defined research-based standards practice;
50.17(5) measures of student, family, and community involvement and satisfaction;
50.18(6) a data system about students and their academic progress that provides parents
50.19and the public with understandable information;
50.20(7) a teacher induction and mentoring program for probationary teachers that
50.21provides continuous learning and sustained teacher support; and
50.22(8) substantial participation by the exclusive representative of the teachers in
50.23developing the plan.
50.24EFFECTIVE DATE.This section is effective the day following final enactment
50.25and applies to plans developed in the 2009-2010 school year and later.

50.26    Sec. 24. Minnesota Statutes 2008, section 122A.414, subdivision 2, is amended to read:
50.27    Subd. 2. Alternative teacher professional pay system. (a) To participate in this
50.28program, a school district, intermediate school district, school site, or charter school must
50.29have an educational improvement plan under section 122A.413 and an alternative teacher
50.30professional pay system agreement under paragraph (b). A charter school participant also
50.31must comply with subdivision 2a.
50.32(b) The alternative teacher professional pay system agreement must:
50.33(1) describe how teachers can achieve career advancement and additional
50.34compensation;
51.1(2) describe how the school district, intermediate school district, school site, or
51.2charter school will provide teachers with career advancement options that allow teachers
51.3to retain primary roles in student instruction and facilitate site-focused professional
51.4development that helps other teachers improve their skills;
51.5(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
51.6paid before implementing the pay system from being reduced as a result of participating
51.7in this system, and base at least 60 percent of any compensation increase on teacher
51.8performance using:
51.9(i) schoolwide student achievement gains under section 120B.35 or locally selected
51.10standardized assessment outcomes, or both;
51.11(ii) measures of student achievement; and
51.12(iii) an objective evaluation program and evidence of effective practice that includes
51.13include:
51.14(A) individual teacher evaluations aligned with the educational improvement plan
51.15under section 122A.413 and the staff development plan under section 122A.60; and
51.16(B) objective evaluations using multiple criteria conducted by a locally selected and
51.17periodically trained evaluation team that understands teaching and learning a professional
51.18framework outlined in teacher evaluation best practices, supported by multiple criteria,
51.19and conducted in a professional and supportive environment; and
51.20(c) reflection and growth in best teaching practices shown through support for
51.21student learning, collaborative work with colleagues, or continual professional learning,
51.22consistent with section 122A.18, subdivision 4, paragraph (b), clauses (1) to (3);
51.23(4) provide integrated ongoing site-based professional development activities to
51.24improve instructional skills and learning that are aligned with student needs under section
51.25122A.413 , consistent with the staff development plan under section 122A.60 and led
51.26during the school day by trained teacher leaders such as master or mentor teachers or
51.27peer coaches;
51.28(5) allow any teacher in a participating school district, intermediate school district,
51.29school site, or charter school that implements an alternative pay system to participate in
51.30that system without any quota or other limit; and
51.31(6) encourage collaboration rather than competition among teachers.
51.32EFFECTIVE DATE.This section is effective the day following final enactment
51.33and applies to all alternative teacher professional pay system agreements entered into or
51.34modified after that date.

52.1    Sec. 25. Minnesota Statutes 2008, section 122A.414, subdivision 2b, is amended to
52.2read:
52.3    Subd. 2b. Approval process. (a) Consistent with the requirements of this section
52.4and sections 122A.413 and 122A.415, the department must prepare and transmit to
52.5interested school districts, intermediate school districts, school sites, and charter schools
52.6a standard form for applying to participate in the alternative teacher professional pay
52.7system. The commissioner annually must establish three dates as deadlines by which
52.8interested applicants must submit an application to the commissioner under this section.
52.9An interested school district, intermediate school district, school site, or charter school
52.10must submit to the commissioner a completed application executed by the district
52.11superintendent and the exclusive bargaining representative of the teachers if the applicant
52.12is a school district, intermediate school district, or school site, or executed by the charter
52.13school board of directors if the applicant is a charter school. The application must include
52.14the proposed alternative teacher professional pay system agreement under subdivision
52.152. The department must convene a review committee that at least includes teachers
52.16and administrators a completed application within 30 days of receiving a completed
52.17application to the most recent application deadline and recommend to the commissioner
52.18whether to approve or disapprove the application. The commissioner must approve
52.19applications on a first-come, first-served basis. The applicant's alternative teacher
52.20professional pay system agreement must be legally binding on the applicant and the
52.21collective bargaining representative before the applicant receives alternative compensation
52.22revenue. The commissioner must approve or disapprove an application based on the
52.23requirements under subdivisions 2 and 2a.
52.24(b) If the commissioner disapproves an application, the commissioner must give the
52.25applicant timely notice of the specific reasons in detail for disapproving the application.
52.26The applicant may revise and resubmit its application and related documents to the
52.27commissioner within 30 days of receiving notice of the commissioner's disapproval and
52.28the commissioner must approve or disapprove the revised application, consistent with this
52.29subdivision. Applications that are revised and then approved are considered submitted on
52.30the date the applicant initially submitted the application.
52.31EFFECTIVE DATE.This section is effective the day following final enactment
52.32and applies to all applications submitted after that date.

52.33    Sec. 26. Minnesota Statutes 2008, section 122A.60, subdivision 2, is amended to read:
52.34    Subd. 2. Contents of the plan. The plan must include the staff development
52.35outcomes under subdivision 3, the means to achieve the outcomes, and procedures for
53.1evaluating progress at each school site toward meeting education outcomes., consistent
53.2with relicensure requirements under section 122A.18, subdivision 2, paragraph (b). The
53.3plan also must:
53.4(1) support stable and productive professional communities achieved through
53.5ongoing and schoolwide progress and growth in teaching practice;
53.6(2) emphasize coaching, professional learning communities, classroom action
53.7research, and other job-embedded models;
53.8(3) maintain a strong subject matter focus premised on students' learning goals;
53.9(4) ensure specialized preparation and learning about issues related to teaching
53.10students with special needs and limited English proficiency; and
53.11(5) reinforce national and state standards of effective teaching practice.
53.12EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
53.13later.

53.14    Sec. 27. Minnesota Statutes 2008, section 123A.05, is amended to read:
53.15123A.05 AREA LEARNING CENTER STATE-APPROVED ALTERNATIVE
53.16PROGRAM ORGANIZATION.
53.17    Subdivision 1. Governance. (a) A district may establish an area learning center
53.18either by itself or in cooperation with other districts, alternative learning program, or
53.19contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d),
53.20and 124D.69.
53.21(b) An area learning center is encouraged to cooperate with a service cooperative, an
53.22intermediate school district, a local education and employment transitions partnership,
53.23public and private secondary and postsecondary institutions, public agencies, businesses,
53.24and foundations. Except for a district located in a city of the first class, a an area
53.25learning center must be established in cooperation with other districts and must serve
53.26the geographic area of at least two districts. An area learning center must provide
53.27comprehensive educational services to enrolled secondary students throughout the year,
53.28including a daytime school within a school or separate site for both high school and
53.29middle school level students.
53.30(c) An alternative learning program may serve the students of one or more districts,
53.31may designate which grades are served, and may make program hours and a calendar
53.32optional.
53.33(d) A contract alternative is an alternative learning program operated by a private
53.34organization that has contracted with a school district to provide educational services for
53.35students under section 124D.68, subdivision 2.
54.1    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
54.2or alternative learning program must reserve revenue in an amount equal to the sum of (1)
54.3at least 90 percent of the district average general education revenue per pupil unit minus
54.4an amount equal to the product of the formula allowance according to section 126C.10,
54.5subdivision 2 , times .0485, calculated without basic skills revenue and transportation
54.6sparsity revenue, times the number of pupil units attending an area learning center or
54.7alternative learning program under this section, plus (2) the amount of basic skills revenue
54.8generated by pupils attending the area learning center or alternative learning program. The
54.9amount of reserved revenue under this subdivision may only be spent on program costs
54.10associated with the area learning center or alternative learning program.
54.11    Subd. 3. Access to services. A center state-approved alternative program shall have
54.12access to the district's regular education programs, special education programs, technology
54.13facilities, and staff. It may contract with individuals or postsecondary institutions. It shall
54.14seek the involvement of community education programs, postsecondary institutions,
54.15interagency collaboratives, culturally based organizations, mutual assistance associations,
54.16and other community resources, businesses, and other federal, state, and local public
54.17agencies.
54.18    Subd. 4. Nonresident pupils. A pupil who does not reside in the district may
54.19attend a center state-approved alternative program without consent of the school board of
54.20the district of residence.

54.21    Sec. 28. Minnesota Statutes 2008, section 123A.06, is amended to read:
54.22123A.06 CENTER STATE-APPROVED ALTERNATIVE PROGRAMS AND
54.23SERVICES.
54.24    Subdivision 1. Program focus. (a) The programs and services of a center
54.25state-approved alternative program must focus on academic and learning skills, applied
54.26learning opportunities, trade and vocational skills, work-based learning opportunities,
54.27work experience, youth service to the community, transition services, and English
54.28language and literacy programs for children whose primary language is a language other
54.29than English. Applied learning, work-based learning, and service learning may best be
54.30developed in collaboration with a local education and transitions partnership, culturally
54.31based organizations, mutual assistance associations, or other community resources.
54.32In addition to offering programs, the center state-approved alternative program shall
54.33coordinate the use of other available educational services, special education services,
54.34social services, health services, and postsecondary institutions in the community and
54.35services area.
55.1(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school
55.2district may provide an alternative education program for a student who is within the
55.3compulsory attendance age under section 120A.20, and who is involved in severe or
55.4repeated disciplinary action.
55.5    Subd. 2. People to be served. A center state-approved alternative program shall
55.6provide programs for secondary pupils and adults. A center may also provide programs
55.7and services for elementary and secondary pupils who are not attending the center
55.8state-approved alternative program to assist them in being successful in school. A center
55.9shall use research-based best practices for serving limited English proficient students and
55.10their parents. An individual education plan team may identify a center state-approved
55.11alternative program as an appropriate placement to the extent a center state-approved
55.12alternative program can provide the student with the appropriate special education services
55.13described in the student's plan. Pupils eligible to be served are those who qualify under
55.14the graduation incentives program in section 124D.68, subdivision 2, those enrolled
55.15under section 124D.02, subdivision 2, or those pupils who are eligible to receive special
55.16education services under sections 125A.03 to 125A.24, and 125A.65.
55.17    Subd. 3. Hours of instruction exemption. Notwithstanding any law to the contrary,
55.18the area learning center programs must be available throughout the entire year. A center
55.19may petition the state board under Minnesota Rules, part 3500.1000, for exemption from
55.20other rules.
55.21    Subd. 4. Granting a diploma. Upon successful completion of the area learning
55.22center program, a pupil is entitled to receive a high school diploma. The pupil may elect
55.23to receive a diploma from either the district of residence or the district in which the area
55.24learning center is located.

55.25    Sec. 29. Minnesota Statutes 2008, section 123A.08, is amended to read:
55.26123A.08 CENTER STATE-APPROVED ALTERNATIVE PROGRAM
55.27FUNDING.
55.28    Subdivision 1. Outside sources for resources and services. A center
55.29state-approved alternative program may accept:
55.30(1) resources and services from postsecondary institutions serving center
55.31state-approved alternative program pupils;
55.32(2) resources from Job Training Partnership Workforce Investment Act programs,
55.33including funding for jobs skills training for various groups and the percentage reserved
55.34for education;
55.35(3) resources from the Department of Human Services and county welfare funding;
56.1(4) resources from a local education and employment transitions partnership; or
56.2(5) private resources, foundation grants, gifts, corporate contributions, and other
56.3grants.
56.4    Subd. 2. General education aid. Payment of general education aid for nonresident
56.5pupils enrolled in the center area learning centers and alternative learning programs must
56.6be made according to section 127A.47, subdivision 7.
56.7    Subd. 3. Special education revenue. Payment of special education revenue for
56.8nonresident pupils enrolled in the center state-approved alternative program must be made
56.9according to section 125A.15 127A.47, subdivision 7.

56.10    Sec. 30. Minnesota Statutes 2008, section 123B.03, subdivision 1, is amended to read:
56.11    Subdivision 1. Background check required. (a) A school hiring authority shall
56.12request a criminal history background check from the superintendent of the Bureau of
56.13Criminal Apprehension on all individuals who are offered employment in a school and
56.14on all individuals, except enrolled student volunteers, who are offered the opportunity to
56.15provide athletic coaching services or other extracurricular academic coaching services
56.16to a school, regardless of whether any compensation is paid. In order for an individual
56.17to be eligible for employment or to provide the services, the individual must provide an
56.18executed criminal history consent form and a money order or check payable to either the
56.19Bureau of Criminal Apprehension or the school hiring authority, at the discretion of the
56.20school hiring authority, in an amount equal to the actual cost to the Bureau of Criminal
56.21Apprehension and the school district of conducting the criminal history background
56.22check. A school hiring authority deciding to receive payment may, at its discretion, accept
56.23payment in the form of a negotiable instrument other than a money order or check and
56.24shall pay the superintendent of the Bureau of Criminal Apprehension directly to conduct
56.25the background check. The superintendent of the Bureau of Criminal Apprehension shall
56.26conduct the background check by retrieving criminal history data maintained in the
56.27criminal justice information system computers. A school hiring authority, at its discretion,
56.28may decide not to request a criminal history background check on an individual who holds
56.29an initial entrance license issued by the State Board of Teaching or the commissioner of
56.30education within the 12 months preceding an offer of employment.
56.31    (b) A school hiring authority may use the results of a criminal background check
56.32conducted at the request of another school hiring authority if:
56.33    (1) the results of the criminal background check are on file with the other school
56.34hiring authority or otherwise accessible;
57.1    (2) the other school hiring authority conducted a criminal background check within
57.2the previous 12 months;
57.3    (3) the individual who is the subject of the criminal background check executes a
57.4written consent form giving a school hiring authority access to the results of the check; and
57.5    (4) there is no reason to believe that the individual has committed an act subsequent
57.6to the check that would disqualify the individual for employment.
57.7    (c) A school hiring authority may, at its discretion, request a criminal history
57.8background check from the superintendent of the Bureau of Criminal Apprehension on
57.9any individual who seeks to enter a school or its grounds for the purpose of serving as a
57.10school volunteer or working as an independent contractor or student employee. In order
57.11for an individual to enter a school or its grounds under this paragraph when the school
57.12hiring authority decides to request a criminal history background check on the individual,
57.13the individual first must provide an executed criminal history consent form and a money
57.14order, check, or other negotiable instrument payable to the school district in an amount
57.15equal to the actual cost to the Bureau of Criminal Apprehension and the school district
57.16of conducting the criminal history background check. Notwithstanding section 299C.62,
57.17subdivision 1 , the cost of the criminal history background check under this paragraph is
57.18the responsibility of the individual A school hiring authority may decide to pay the cost of
57.19conducting a background check under this paragraph, in which case the individual who is
57.20the subject of the background check need not pay for the background check.
57.21    (d) For all nonstate residents who are offered employment in a school, a school
57.22hiring authority shall request a criminal history background check on such individuals
57.23from the superintendent of the Bureau of Criminal Apprehension and from the government
57.24agency performing the same function in the resident state or, if no government entity
57.25performs the same function in the resident state, from the Federal Bureau of Investigation.
57.26Such individuals must provide an executed criminal history consent form and a money
57.27order, check, or other negotiable instrument payable to the school hiring authority in an
57.28amount equal to the actual cost to the government agencies and the school district of
57.29conducting the criminal history background check. Notwithstanding section 299C.62,
57.30subdivision 1 , the cost of the criminal history background check under this paragraph is
57.31the responsibility of the individual.
57.32    (e) At the beginning of each school year or when a student enrolls, a school hiring
57.33authority must notify parents and guardians about the school hiring authority's policy
57.34requiring a criminal history background check on employees and other individuals who
57.35provide services to the school, and identify those positions subject to a background check
57.36and the extent of the hiring authority's discretion in requiring a background check. The
58.1school hiring authority may include the notice in the student handbook, a school policy
58.2guide, or other similar communication. Nothing in this paragraph affects a school hiring
58.3authority's ability to request a criminal history background check on an individual under
58.4paragraph (c).
58.5EFFECTIVE DATE.This section is effective the day following final enactment.

58.6    Sec. 31. Minnesota Statutes 2008, section 123B.03, subdivision 1a, is amended to read:
58.7    Subd. 1a. Investigation of disciplinary actions taken against prospective
58.8teachers. (a) At the time a school board or other hiring authority conducts the criminal
58.9history background check required under subdivision 1 on an individual offered
58.10employment as a teacher, the school board or other hiring authority must contact the
58.11Board of Teaching to determine whether the board has taken disciplinary action against
58.12the teacher based on a board determination that sexual misconduct or attempted sexual
58.13misconduct occurred between the teacher and a student or other misconduct resulting in
58.14board disciplinary action. If disciplinary action has been taken based on this type of
58.15misconduct, the school board or other hiring authority must obtain access to data that are
58.16public under section 13.41, subdivision 5, that relate to the substance of the disciplinary
58.17action. In addition, the school board or other hiring authority must require the individual
58.18to provide information in the employment application regarding all current and previous
58.19disciplinary actions in Minnesota and other states taken against the individual's teaching
58.20license as a result of sexual misconduct or attempted sexual misconduct with a student
58.21or other misconduct and indicate to the applicant that intentionally submitting false or
58.22incomplete information is a ground for dismissal.
58.23(b) For purposes of this subdivision, "disciplinary action" does not include an action
58.24based on court-ordered child support or maintenance payment arrearages under section
58.25214.101 or delinquent state taxes under section 270C.72.
58.26EFFECTIVE DATE.This section is effective May 1, 2009.

58.27    Sec. 32. [123B.045] DISTRICT-CREATED SITE-GOVERNED SCHOOLS.
58.28    Subdivision 1. Authority. (a) A school board may approve site-governed schools
58.29under this section by requesting site-governing school proposals. The request for
58.30proposals must include what types of schools or education innovations the board intends
58.31to create. A current site may submit a proposal to create a different model for the site if
58.3260 percent or more of the teachers at the site support the proposal. A group of licensed
58.33district professionals from one or multiple district sites may submit a proposal. The
58.34group submitting the proposal must include parents or other community members in the
59.1development of the proposal. A proposal may request approval for a model of a school not
59.2included in the request for proposal of the board.
59.3(b) The school board and the applicable bargaining unit representing district
59.4employees must enter into memoranda of understanding specifying how applicable
59.5sections of current contracts will enable the provisions of subdivision 2, clauses (7) and
59.6(8), to be implemented.
59.7(c) Within 60 days of receipt of the application, the school board shall determine
59.8whether to approve, deny, or return the application to the applicants for further information
59.9or development.
59.10(d) Upon approval of the proposal, an agreement between the district and the site
59.11council shall be developed identifying the powers and duties delegated to the site and
59.12outlining the details of the proposal including the provisions of subdivisions 2, 3, and
59.135. Any powers or duties not specifically delegated to the school site in the agreement
59.14remains with the school board.
59.15    Subd. 2. Roles and responsibilities of site-governed schools. (a) Site-governed
59.16schools approved by the school board have the following autonomy and responsibilities at
59.17the discretion of the site:
59.18(1) to create the site-governing council of the school. The council shall include
59.19teachers, administrators, parents, students if appropriate, community members, and other
59.20representatives of the community as determined by the site-governing council. Teachers
59.21may comprise a majority of the site-governing council at the option of a majority of
59.22the teachers at the site. The number of members on the site-governing council and the
59.23composition shall be included in the proposal approved by the school board;
59.24(2) to determine the leadership model for the site including: selecting a principal,
59.25operating as a teacher professional practices model with school leadership functions
59.26performed by one or more teachers or administrators at the school or other model
59.27determined by the site;
59.28(3) to determine the budget for the site and the allocation and expenditure of the
59.29revenue based on provisions of subdivision 3;
59.30(4) to determine the learning model and organization of the school consistent with
59.31the application approved by the school board;
59.32(5) to select and develop its curriculum and determine formative and summative
59.33assessment practices;
59.34(6) to set policies for the site including student promotion, attendance, discipline,
59.35graduation requirements which may exceed the school board standards, employee work
60.1rules, and other such rules as approved by the school board consistent with the mission,
60.2goals, and learning program of the school site;
60.3(7) to determine the length of the school day and year and employee work rules
60.4covered by the terms and conditions of the employment contract;
60.5(8) to select teachers and other staff consistent with current law and collective
60.6bargaining agreements and memoranda of understanding provided for in subdivision 1,
60.7paragraph (b). At least 70 percent of the teachers must be selected by the site prior to final
60.8approval of the agreement. Prior to requesting the district to employ staff not currently
60.9employed by the district, the site must first select current district staff including those on
60.10requested and unrequested leave as provided for in sections 122A.40 and 122A.41. The
60.11school board shall be the legal employer of all staff at the site and all teachers and other
60.12staff members of the applicable bargaining units. Teachers and other employees may be
60.13required to sign an individual work agreement with the site-governing council committing
60.14themselves to the mission and learning program of the school and the requirements of
60.15the site-governing council; and
60.16(9) to fulfill other provisions as agreed to by the district and site-governing council.
60.17(b) If a self-governed school created under this section is supervised by a principal,
60.18that principal must be licensed, consistent with section 123B.147, subdivision 2.
60.19    Subd. 3. Revenue to self-governed school. (a) The revenue that shall be allocated
60.20by the site includes the general education revenue generated by the students at the site
60.21from state, local, and private sources, operating levy revenue, federal revenue from the
60.22Elementary and Secondary Education Act, Individuals with Disabilities Education Act,
60.23Carl Perkins Act, and other federal programs as agreed to by the school board and site
60.24council.
60.25(b) The district may retain an administrative fee for managing the federal
60.26programs, private revenues, and general administrative functions including school board,
60.27superintendent, district legal counsel, finance, accountability and self-governed school
60.28contract oversight, facilities maintenance, districtwide special education programs, and
60.29other such services as agreed to by the site and school board. The administrative fee
60.30shall be included in the agreement.
60.31(c) As part of the agreement, the district may provide specific services for the site
60.32and may specify the amount to be paid for each service and retain the revenues for that
60.33amount. The formula or procedures for determining the amount of revenue to be allocated
60.34to the site each year shall be consistent with this subdivision and incorporated in the site
60.35budget annually following a timeline and process that is included in the agreement with
61.1the school board. The site is responsible for allocating revenue for all staff at the site and
61.2for the other provisions of the agreement with the district board.
61.3(d) All unspent revenue shall be carried over to following years for the sole use
61.4of the site.
61.5    Subd. 4. Exemption from statutes and rules. Except as outlined in this section,
61.6site-governed schools established under this section are exempt from and subject to the
61.7same laws and rules as are chartered schools under section 124D.10, except that the
61.8schools shall be subject to chapters 13, 13D, and 179A, and sections 122A.40, 122A.41,
61.9122A.50, and 122A.51.
61.10    Subd. 5. Performance standards. (a) The school board and the site council shall
61.11include in the agreement performance standards and expectations that shall include at
61.12least the following:
61.13(1) student achievement targets on multiple indicators including either a growth
61.14model or value-added growth model;
61.15(2) the criteria and process to be followed if it is determined that the site failed
61.16to comply with district oversight and accountability requirements as outlined in the
61.17agreement; and
61.18(3) other performance provisions as agreed to.
61.19(b) All agreements shall be filed with the commissioner. The initial agreement shall
61.20be for up to three years, shall be reviewed annually, and may be renewed by the district
61.21board for additional terms of up to five years based on the performance of the school.
61.22    Subd. 6. Board termination of self-governed school authority. (a) The district
61.23board may terminate the agreement for one or more of the following reasons:
61.24(1) failure of the site to meet the provisions specified in the agreement in subdivision
61.255;
61.26(2) violations of law; or
61.27(3) other good cause shown.
61.28(b) Site-governed schools that are terminated or not renewed for reasons other than
61.29cause may request to convert to charter school status as provided for in section 124D.10
61.30and, if chartered by the board, shall become the owner of all materials, supplies, and
61.31equipment purchased during the period the school was a site-governed school.

61.32    Sec. 33. Minnesota Statutes 2008, section 123B.143, subdivision 1, is amended to read:
61.33    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
61.34school must employ a superintendent who shall be an ex officio nonvoting member of the
61.35school board. The authority for selection and employment of a superintendent must be
62.1vested in the board in all cases. An individual employed by a board as a superintendent
62.2shall have an initial employment contract for a period of time no longer than three years
62.3from the date of employment. Any subsequent employment contract must not exceed a
62.4period of three years. A board, at its discretion, may or may not renew an employment
62.5contract. A board must not, by action or inaction, extend the duration of an existing
62.6employment contract. Beginning 365 days prior to the expiration date of an existing
62.7employment contract, a board may negotiate and enter into a subsequent employment
62.8contract to take effect upon the expiration of the existing contract. A subsequent contract
62.9must be contingent upon the employee completing the terms of an existing contract. If a
62.10contract between a board and a superintendent is terminated prior to the date specified in
62.11the contract, the board may not enter into another superintendent contract with that same
62.12individual that has a term that extends beyond the date specified in the terminated contract.
62.13A board may terminate a superintendent during the term of an employment contract for any
62.14of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
62.15not rely upon an employment contract with a board to assert any other continuing contract
62.16rights in the position of superintendent under section 122A.40. Notwithstanding the
62.17provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
62.18to the contrary, no individual shall have a right to employment as a superintendent based
62.19on order of employment in any district. If two or more districts enter into an agreement for
62.20the purchase or sharing of the services of a superintendent, the contracting districts have
62.21the absolute right to select one of the individuals employed to serve as superintendent
62.22in one of the contracting districts and no individual has a right to employment as the
62.23superintendent to provide all or part of the services based on order of employment in a
62.24contracting district. The superintendent of a district shall perform the following:
62.25    (1) visit and supervise the schools in the district, report and make recommendations
62.26about their condition when advisable or on request by the board;
62.27    (2) recommend to the board employment and dismissal of teachers;
62.28    (3) superintend school grading practices and examinations for promotions;
62.29    (4) make reports required by the commissioner; and
62.30    (5) by January 10, submit an annual report to the commissioner in a manner
62.31prescribed by the commissioner, in consultation with school districts, identifying the
62.32expenditures that the district requires to ensure an 80 percent student passage rate on
62.33the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
62.34district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
62.35expenditures that the district requires to attain the targeted student passage rate; and
62.36    (6) perform other duties prescribed by the board.
63.1EFFECTIVE DATE.This section is effective the day following final enactment
63.2and applies to the 2009-2010 school year and later.

63.3    Sec. 34. Minnesota Statutes 2008, section 123B.51, is amended by adding a
63.4subdivision to read:
63.5    Subd. 5a. Temporary closing. A school district that proposes to temporarily close a
63.6schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse
63.7for three or fewer years is not subject to subdivision 5 if the school board holds a public
63.8meeting and allows public comment on the schoolhouse's future.
63.9EFFECTIVE DATE.This section is effective the day following final enactment.

63.10    Sec. 35. Minnesota Statutes 2008, section 124D.095, subdivision 2, is amended to read:
63.11    Subd. 2. Definitions. For purposes of this section, the following terms have the
63.12meanings given them.
63.13    (a) "Online learning" is an interactive course or program that delivers instruction
63.14from a teacher to a student by computer; is combined with other traditional delivery
63.15methods that include frequent student assessment and may include actual teacher contact
63.16time; and meets or exceeds state academic standards.
63.17    (b) "Online learning provider" is a school district, an intermediate school district, an
63.18organization of two or more school districts operating under a joint powers agreement, or
63.19a charter school located in Minnesota that provides online learning to students.
63.20    (c) "Student" is a Minnesota resident enrolled in a school under section 120A.22,
63.21subdivision 4 , in kindergarten through grade 12.
63.22    (d) "Online learning student" is a student enrolled in an online learning course or
63.23program delivered by an online provider under paragraph (b).
63.24    (e) "Enrolling district" means the school district or charter school in which a student
63.25is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.
63.26    (f) "Supplemental online learning" means an online course taken in place of a course
63.27period during the regular school day at a local district school.
63.28    (g) "Full-time online provider" means an enrolling school authorized by the
63.29department to deliver comprehensive public education at any or all of the elementary,
63.30middle, or high school levels.
63.31(h) "Online course syllabus" is a written document that an online learning provider
63.32makes available to the enrolling district using a format prescribed by the commissioner to
63.33identify the state academic standards embedded in an online course, the course content
63.34outline, required course assessments, expectations for actual teacher contact time and
64.1other student-to-teacher communications, and academic support available to the online
64.2learning student.

64.3    Sec. 36. Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:
64.4    Subd. 3. Authorization; notice; limitations on enrollment. (a) A student may
64.5apply for full-time enrollment in an approved online learning program under section
64.6124D.03 , 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding
64.7sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online
64.8learning shall be as provided in this subdivision. A student age 17 or younger must
64.9have the written consent of a parent or guardian to apply. No school district or charter
64.10school may prohibit a student from applying to enroll in online learning. In order that a
64.11student may enroll in online learning, the student and the student's parents must submit an
64.12application to the online learning provider and identify the reason for enrolling in online
64.13learning. The online learning provider that accepts a student under this section must within
64.14ten days notify the student and the enrolling district in writing if the enrolling district is
64.15not the online learning provider. The student and family must notify the online learning
64.16provider of their intent to enroll in online learning within ten days of acceptance, at which
64.17time the student and parent must sign a statement of assurance that they have reviewed the
64.18online course or program and understand the expectations of online learning enrollment.
64.19The online learning provider must notify the enrolling district of the student's enrollment
64.20application to enroll in online learning in writing on a form provided by the department.
64.21    (b) Supplemental online learning notification to the enrolling district upon student
64.22enrollment in application to the online learning program provider will include the
64.23courses or program, credits to be awarded, and the start date of online enrollment, and
64.24confirmation that the courses will meet the student's graduation plan. An online learning
64.25provider must provide the enrolling district with an online course syllabus. Within 15 days
64.26after the online learning provider makes the supplemental online course syllabus available
64.27to the enrolling district, the enrolling district must notify the online provider whether or
64.28not the student, parent or guardian, and enrolling district agree that the course meets
64.29the enrolling district's graduation requirements. A student may enroll in supplemental
64.30online learning courses up to the midpoint of the enrolling district's term. The enrolling
64.31district may waive this requirement for special circumstances and upon acceptance by the
64.32online provider. An online learning course or program that meets or exceeds a graduation
64.33standard or grade progression requirements at the enrolling district as demonstrated on
64.34the online provider's syllabus must be considered to meet the corresponding graduation
65.1requirements of the student in the enrolling district. If the enrolling district decides that
65.2the course does not meet its graduation requirements, then:
65.3(1) the district shall provide a written explanation of its decision upon request by the
65.4student, parent or guardian, or online provider;
65.5(2) the district shall allow the online provider the opportunity to respond in writing
65.6to the district's written explanation of its decision for the purpose of describing how the
65.7course may meet the district's graduation requirement; and
65.8(3) the student, parent or guardian, or online provider may request that the
65.9Department of Education review the district's decision to determine whether it is consistent
65.10with this section.
65.11    (c) An online learning provider must notify the commissioner that it is delivering
65.12online learning and report the number of online learning students it is accepting and the
65.13online learning courses and programs it is delivering.
65.14    (d) An online learning provider may limit enrollment if the provider's school board
65.15or board of directors adopts by resolution specific standards for accepting and rejecting
65.16students' applications.
65.17    (e) An enrolling district may reduce an online learning student's regular classroom
65.18instructional membership in proportion to the student's membership in online learning
65.19courses.
65.20    (f) The online provider must report or provide access to information on an individual
65.21student's progress and accumulated credit to the student, parent or guardian, and enrolling
65.22district in a manner specified by the commissioner unless another manner is agreed upon
65.23by the enrolling district and the online provider and submitted to the commissioner. The
65.24enrolling district must designate a contact person to assist in facilitating and monitoring
65.25the student's progress and accumulated credit towards graduation.

65.26    Sec. 37. Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:
65.27    Subd. 4. Online learning parameters. (a) An online learning student must receive
65.28academic credit for completing the requirements of an online learning course or program.
65.29Secondary credits granted to an online learning student must be counted toward the
65.30graduation and credit requirements of the enrolling district. An online learning provider
65.31must make available to the enrolling district the course syllabus, standard alignment,
65.32content outline, assessment requirements, and contact information for supplemental online
65.33courses taken by students in the enrolling district. The enrolling district must apply the
65.34same graduation requirements to all students, including online learning students, and
65.35must continue to provide nonacademic services to online learning students. If a student
66.1completes an online learning course or program that meets or exceeds a graduation
66.2standard or grade progression requirement at the enrolling district, that standard or
66.3requirement is met. The enrolling district must use the same criteria for accepting online
66.4learning credits or courses as it does for accepting credits or courses for transfer students
66.5under section 124D.03, subdivision 9. The enrolling district may reduce the course
66.6schedule of an online learning student in proportion to the number of online learning
66.7courses the student takes from an online learning provider that is not the enrolling district.
66.8    (b) An online learning student may:
66.9    (1) enroll in supplemental online learning courses during a single school year to a
66.10maximum of 50 percent of the student's full schedule of courses per term. A student may
66.11exceed the supplemental online learning registration limit if the enrolling district grants
66.12permission for supplemental online learning enrollment above the limit, or if an agreement
66.13is made between the enrolling district and the online learning provider for instructional
66.14services;
66.15    (2) complete course work at a grade level that is different from the student's current
66.16grade level; and
66.17    (3) enroll in additional courses with the online learning provider under a separate
66.18agreement that includes terms for payment of any tuition or course fees.
66.19    (c) An online learning student has the same access to the computer hardware and
66.20education software available in a school as all other students in the enrolling district. An
66.21online learning provider must assist an online learning student whose family qualifies
66.22for the education tax credit under section 290.0674 to acquire computer hardware and
66.23educational software for online learning purposes.
66.24    (d) An enrolling district may offer online learning to its enrolled students. Such
66.25online learning does not generate online learning funds under this section. An enrolling
66.26district that offers online learning only to its enrolled students is not subject to the
66.27reporting requirements or review criteria under subdivision 7, unless the enrolling district
66.28is a full-time online provider. A teacher with a Minnesota license must assemble and
66.29deliver instruction to enrolled students receiving online learning from an enrolling district.
66.30The delivery of instruction occurs when the student interacts with the computer or the
66.31teacher and receives ongoing assistance and assessment of learning. The instruction may
66.32include curriculum developed by persons other than a teacher with a Minnesota license.
66.33    (e) An Both full-time and supplemental online learning provider that is not the
66.34enrolling district is providers are subject to the reporting requirements and review criteria
66.35under subdivision 7. A teacher with a Minnesota license must assemble and deliver
66.36instruction to online learning students. The delivery of instruction occurs when the student
67.1interacts with the computer or the teacher and receives ongoing assistance and assessment
67.2of learning. The instruction may include curriculum developed by persons other than a
67.3teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher
67.4providing online learning instruction must not instruct more than 40 students in any one
67.5online learning course or program.
67.6    (f) To enroll in more than 50 percent of the student's full schedule of courses per term
67.7in online learning, the student must qualify to exceed the supplemental online learning
67.8registration limit under paragraph (b) or apply for enrollment to an approved full-time
67.9online learning program following appropriate procedures in subdivision 3, paragraph (a).
67.10Full-time online learning students may enroll in classes at a local school per contract for
67.11instructional services between the online learning provider and the school district.

67.12    Sec. 38. Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:
67.13    Subd. 7. Department of Education. (a) The department must review and
67.14certify online learning providers. The online learning courses and programs must be
67.15rigorous, aligned with state academic standards, and contribute to grade progression
67.16in a single subject. Online learning providers must demonstrate to the commissioner
67.17that online learning courses have equivalent standards or instruction, curriculum, and
67.18assessment requirements as other courses offered to enrolled students. The online
67.19learning provider must also demonstrate expectations for actual teacher contact time
67.20or other student-to-teacher communication The online provider must provide a written
67.21statement that: (1) all courses meet state academic standards; and (2) the online learning
67.22curriculum, instruction, and assessment, expectations for actual teacher-contact time or
67.23other student-to-teacher communication, and academic support meet nationally recognized
67.24professional standards and are demonstrated as such in a syllabus provided according to
67.25the commissioner's requirements. Once an online learning provider is approved under
67.26this paragraph, all of its online learning course offerings are eligible for payment under
67.27this section unless a course is successfully challenged by an enrolling district or the
67.28department under paragraph (b).
67.29    (b) An enrolling district may challenge the validity of a course offered by an online
67.30learning provider. The department must review such challenges based on the certification
67.31procedures under paragraph (a). The department may initiate its own review of the validity
67.32of an online learning course offered by an online learning provider.
67.33    (c) The department may collect a fee not to exceed $250 for certifying online
67.34learning providers or $50 per course for reviewing a challenge by an enrolling district.
68.1    (d) The department must develop, publish, and maintain a list of approved online
68.2learning providers and online learning courses and programs that it has reviewed and
68.3certified.

68.4    Sec. 39. Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to
68.5read:
68.6    Subd. 10. Online Learning Advisory Council. (a) An Online Learning Advisory
68.7Council is established under section 15.059, except that. The term for each council
68.8member shall be three years. The advisory council is composed of 12 members from
68.9throughout the state who have demonstrated experience with or interest in online learning.
68.10The members of the council shall be appointed by the commissioner. The advisory council
68.11shall bring to the attention of the commissioner any matters related to online learning and
68.12provide input to the department in matters related, but not restricted, to:
68.13(1) quality assurance;
68.14(2) teacher qualifications;
68.15(3) program approval;
68.16(4) special education;
68.17(5) attendance;
68.18(6) program design and requirements; and
68.19(7) fair and equal access to programs.
68.20(b) The Online Learning Advisory Council under this subdivision expires June
68.2130, 2008 2013.
68.22EFFECTIVE DATE.This section is effective the day following final enactment.

68.23    Sec. 40. Minnesota Statutes 2008, section 124D.10, is amended to read:
68.24124D.10 CHARTER SCHOOLS.
68.25    Subdivision 1. Purposes. (a) The purpose of this section is to:
68.26(1) improve pupil learning and achievement;
68.27(2) increase learning opportunities for pupils;
68.28(3) encourage the use of different and innovative teaching methods;
68.29(4) require the measurement of measure learning outcomes and create through the
68.30creation and use of different and innovative forms of measuring outcomes;
68.31(5) establish new forms of accountability for schools; or
68.32(6) create new professional opportunities for teachers, including the opportunity to
68.33be responsible for the learning program at the school site.
69.1(b) This section does not provide a means to keep open a school that otherwise
69.2would be closed. Applicants in these circumstances bear the burden of proving that
69.3conversion to a charter school fulfills a purpose specified in this subdivision, independent
69.4of the school's closing.
69.5    Subd. 2. Applicability. This section applies only to charter schools formed and
69.6operated under this section.
69.7    Subd. 2a. Charter School Advisory Council. (a) A Charter School Advisory
69.8Council is established under section 15.059 except that the term for each council member
69.9shall be three years. The advisory council is composed of seven members from throughout
69.10the state who have demonstrated experience with or interest in charter schools. The
69.11members of the council shall be appointed by the commissioner. The advisory council
69.12shall bring to the attention of the commissioner any matters related to charter schools
69.13that the council deems necessary and shall:
69.14(1) encourage school boards to make full use of charter school opportunities;
69.15(2) encourage the creation of innovative schools;
69.16(3) provide leadership and support for charter school sponsors to increase the
69.17innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
69.18(4) serve an ombudsman function in facilitating the operations of new and existing
69.19charter schools;
69.20(5) promote timely financial management training for newly elected members of
69.21a charter school board of directors and ongoing training for other members of a charter
69.22school board of directors; and
69.23(6) facilitate compliance with auditing and other reporting requirements. The
69.24advisory council shall refer all its proposals to the commissioner who shall provide time
69.25for reports from the council.
69.26(b) The Charter School Advisory Council under this subdivision expires June 30,
69.272007.
69.28    Subd. 3. Sponsor Authorizer. (a) For purposes of this section, the terms defined in
69.29this subdivision have the meanings given them.
69.30"Application" to receive approval as an authorizer means the proposal an eligible
69.31authorizer submits to the commissioner under paragraph (c) before that authorizer is able
69.32to submit any affidavit to charter to a school.
69.33"Application" under subdivision 4 means the charter school business plan a
69.34school developer submits to an authorizer for approval to establish a charter school that
69.35documents the school developer's mission statement, school purposes, program design,
69.36financial plan, governance and management structure, and background and experience,
70.1plus any other information the authorizer requests. The application also shall include a
70.2"statement of assurances" of legal compliance prescribed by the commissioner.
70.3"Affidavit" means a written statement the authorizer submits to the commissioner
70.4for approval to establish a charter school under subdivision 4 attesting to its review and
70.5approval process before chartering a school.
70.6(b) The following organizations may authorize one or more charter schools:
70.7(1) a school board; intermediate school district school board; education district
70.8organized under sections 123A.15 to 123A.19;
70.9(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
70.10of 1986, excluding a nonpublic sectarian or religious institution, any person other than a
70.11natural person that directly or indirectly, through one or more intermediaries, controls,
70.12is controlled by, or is under common control with the nonpublic sectarian or religious
70.13institution, and any other charitable organization under this clause that in the federal IRS
70.14Form 1023, Part IV, describes activities indicating a religious purpose, that:
70.15(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
70.16Foundations,;
70.17(ii) is registered with the attorney general's office, and;
70.18(iii) reports an end-of-year fund balance of at least $2,000,000; and
70.19(iv) is incorporated in the state of Minnesota;
70.20(3) a Minnesota private college, notwithstanding clause (2), that grants two- or
70.21four-year degrees and is registered with the Minnesota Office of Higher Education under
70.22chapter 136A; community college, state university, or technical college, governed by the
70.23Board of Trustees of the Minnesota State Colleges and Universities; or the University of
70.24Minnesota may sponsor one or more charter schools.; or
70.25(b) (4) a nonprofit corporation subject to chapter 317A, described in section
70.26317A.905 , and exempt from federal income tax under section 501(c)(6) of the Internal
70.27Revenue Code of 1986, may sponsor authorize one or more charter schools if the charter
70.28school has operated for at least three years under a different sponsor authorizer and if the
70.29nonprofit corporation has existed for at least 25 years.
70.30(c) An eligible authorizer under this subdivision must apply to the commissioner for
70.31approval as an authorizer before submitting any affidavit to the commissioner to charter
70.32a school. The application for approval as a charter school authorizer must demonstrate
70.33the applicant's ability to implement the procedures and satisfy the criteria for chartering a
70.34school under this section. The commissioner must approve or disapprove an application
70.35within 60 business days of the application deadline. If the commissioner disapproves
70.36the application, the commissioner must notify the applicant of the deficiencies and the
71.1applicant then has 20 business days to address the deficiencies to the commissioner's
71.2satisfaction. Failing to address the deficiencies to the commissioner's satisfaction makes
71.3an applicant ineligible to be an authorizer. The commissioner, in establishing criteria for
71.4approval, must consider the applicant's:
71.5(1) capacity and infrastructure;
71.6(2) application criteria and process;
71.7(3) contracting process;
71.8(4) ongoing oversight and evaluation processes; and
71.9(5) renewal criteria and processes.
71.10A disapproved applicant under this paragraph may resubmit an application during a
71.11future application period.
71.12(d) The authorizer must participate in ongoing department-approved training.
71.13(e) An authorizer that chartered a school before August 1, 2009, must apply by
71.14June 30, 2012, to the commissioner for approval under paragraph (c) to continue as an
71.15authorizer under this section. For purposes of this paragraph, an authorizer that fails to
71.16submit a timely application is ineligible to charter a school.
71.17(f) The commissioner shall review an authorizer's performance at least once every
71.18five years in a manner and form determined by the commissioner, and may review an
71.19authorizer's performance more frequently at the commissioner's own initiative or at the
71.20request of a charter school developer, operator, board member, or other interested party.
71.21The commissioner, after completing the review, shall transmit a report with findings to the
71.22authorizer. If, consistent with this section, the commissioner finds that an authorizer has
71.23not performed satisfactorily, the commissioner may subject the authorizer to corrective
71.24action, which may include terminating the contract with the board of a school it chartered.
71.25The commissioner must notify the authorizer in writing of any findings that may subject
71.26the authorizer to corrective action and the authorizer then has 15 business days to request
71.27an informal hearing before the commissioner takes corrective action.
71.28(g) The commissioner may take corrective action against an authorizer, including
71.29terminating an authorizer's eligibility to charter a school for:
71.30(1) failing to satisfy the criteria under which the commissioner approved the
71.31authorizer;
71.32(2) failing to perform satisfactorily as an approved authorizer; or
71.33(3) violating a term of the chartering contract between the authorizer and charter
71.34school board.
71.35    Subd. 4. Formation of school. (a) A sponsor An authorizer, after receiving an
71.36application from a school developer, may authorize charter a licensed teacher under
72.1section 122A.18, subdivision 1, or a group of individuals that includes one or more
72.2licensed teachers under section 122A.18, subdivision 1, to operate a charter school subject
72.3to the commissioner's approval by the commissioner of the authorizer's affidavit under
72.4paragraph (b). A board must vote on charter school application for sponsorship no later
72.5than 90 days after receiving the application. The school must be organized and operated
72.6as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and
72.7the provisions under the applicable chapter shall apply to the school except as provided
72.8in this section.
72.9Notwithstanding sections 465.717 and 465.719, a school district, subject to this
72.10section and section 124D.11, may create a corporation for the purpose of creating
72.11establishing a charter school.
72.12    (b) Before the operators may form establish and operate a school, the sponsor
72.13authorizer must file an affidavit with the commissioner stating its intent to authorize a
72.14charter a school. An authorizer must file a separate affidavit for each school it intends
72.15to charter. The affidavit must state the terms and conditions under which the sponsor
72.16authorizer would authorize a charter a school and how the sponsor authorizer intends
72.17to oversee the fiscal and student performance of the charter school and to comply with
72.18the terms of the written contract between the sponsor authorizer and the charter school
72.19board of directors under subdivision 6. The commissioner must approve or disapprove
72.20the sponsor's proposed authorization authorizer's affidavit within 90 60 business days of
72.21receipt of the affidavit. If the commissioner disapproves the affidavit, the commissioner
72.22shall notify the authorizer of the deficiencies in the affidavit and the authorizer then has 20
72.23business days to address the deficiencies. If the authorizer does not address deficiencies to
72.24the commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain
72.25commissioner approval precludes a sponsor an authorizer from authorizing chartering the
72.26charter school that was is the subject of the this affidavit.
72.27    (c) The authorizer may prevent an approved charter school from opening for
72.28operation if, among other grounds, the charter school violates this section or does not meet
72.29the ready-to-open standards that are part of the authorizer's oversight and evaluation
72.30process or are stipulated in the charter school contract.
72.31(d) The operators authorized to organize and operate a school, before entering into
72.32a contract or other agreement for professional or other services, goods, or facilities,
72.33must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
72.34under chapter 317A and must establish a board of directors composed of at least five
72.35members who are not related parties until a timely election for members of the ongoing
72.36charter school board of directors is held according to the school's articles and bylaws
73.1under paragraph (f). A charter school board of directors must be composed of at least
73.2five members who are not related parties. Any Staff members who are employed at the
73.3school, including teachers providing instruction under a contract with a cooperative, and
73.4all parents or legal guardians of children enrolled in the school may participate in the
73.5election for are the voters eligible to elect the members of the school's board of directors.
73.6Licensed teachers employed at the school, including teachers providing instruction under
73.7a contract with a cooperative, must be a majority of the members of the board of directors
73.8before the school completes its third year of operation, unless the commissioner waives
73.9the requirement for a majority of licensed teachers on the board. A charter school must
73.10notify eligible voters of the school board election dates at least 30 days before the election.
73.11Board of director meetings must comply with chapter 13D.
73.12    (d) (e) Upon the request of an individual, the charter school must make available
73.13in a timely fashion the minutes of meetings of the board of directors, and of members
73.14and committees having any board-delegated authority; financial statements showing all
73.15operations and transactions affecting income, surplus, and deficit during the school's last
73.16annual accounting period; and a balance sheet summarizing assets and liabilities on the
73.17closing date of the accounting period. A charter school also must post on its official Web
73.18site information identifying its authorizer and indicate how to contact that authorizer and
73.19include that same information about its authorizer in other school materials that it makes
73.20available to the public.
73.21(f) Every charter school board member shall attend department-approved training
73.22on board governance, the board's role and responsibilities, employment policies and
73.23practices, and financial management. A board member who does not complete the
73.24required training within 12 months of being seated on the board is ineligible to continue to
73.25serve as a board member.
73.26    (g) The ongoing board must be elected before the school completes its third year of
73.27operation. The board of directors shall be (i) a teacher majority board made up of licensed
73.28teachers employed at the school or (ii) a board having at least 20 percent of its members
73.29as licensed teachers employed at the school and must include charter school parents or
73.30guardians and interested community members. Licensed teachers employed by the school,
73.31or those providing instruction under a contract with a cooperative, may be members of the
73.32board of directors. The chief financial officer and chief administrator are nonvoting board
73.33members. Board bylaws shall outline the internal process and procedures for changing
73.34the board's governance model. A board may change between the governance models
73.35established in this paragraph only with approval from the authorizer and a voting majority
74.1of the board of directors and the licensed teachers employed at the school, including
74.2teachers providing instruction under a contract with a cooperative.
74.3(h) The granting or renewal of a charter by a sponsoring entity an authorizer must
74.4not be conditioned upon the bargaining unit status of the employees of the school.
74.5(e) A sponsor (i) The granting or renewal of a charter school by an authorizer must
74.6not be contingent on the charter school being required to contract, lease, or purchase
74.7services from the authorizer. Any potential contract, lease, or purchase of service from
74.8an authorizer must be disclosed to the commissioner, accepted through an open bidding
74.9process, and be a separate contract from the charter contract. The school must document
74.10the open bidding process. An authorizer must not enter into a contract to provide
74.11management and financial services for a school that it authorizes, unless the school
74.12documents that it received at least two competitive bids.
74.13(j) The charter school shall not offer any services or goods of value to students,
74.14parents, or guardians as an inducement, term, or condition of enrolling a student in a
74.15charter school.
74.16    (k) An authorizer may authorize permit the operators board of directors of a charter
74.17school to expand the operation of the charter school to additional sites or to add additional
74.18grades at the school beyond those described in the sponsor's application authorizer's
74.19original affidavit as approved by the commissioner only after submitting a supplemental
74.20application affidavit for approval to the commissioner in a form and manner prescribed by
74.21the commissioner. The supplemental application affidavit must provide evidence show
74.22that:
74.23    (1) the expansion of proposed by the charter school is supported by need and
74.24projected enrollment;
74.25(2) the charter school expansion is warranted, at a minimum, by longitudinal data
74.26demonstrating students' improved academic performance and growth on statewide
74.27assessments under chapter 120B;
74.28    (2) (3) the charter school is fiscally sound and has the financial capacity to implement
74.29the proposed expansion; and
74.30    (3) (4) the sponsor supports the authorizer finds that the charter school has the
74.31management capacity to carry out its expansion; and.
74.32    (4) the building of the additional site meets all health and safety requirements to
74.33be eligible for lease aid.
74.34    (f) The commissioner annually must provide timely financial management training
74.35to newly elected members of a charter school board of directors and ongoing training to
74.36other members of a charter school board of directors. Training must address ways to:
75.1    (1) proactively assess opportunities for a charter school to maximize all available
75.2revenue sources;
75.3    (2) establish and maintain complete, auditable records for the charter school;
75.4    (3) establish proper filing techniques;
75.5    (4) document formal actions of the charter school, including meetings of the charter
75.6school board of directors;
75.7    (5) properly manage and retain charter school and student records;
75.8    (6) comply with state and federal payroll record-keeping requirements; and
75.9    (7) address other similar factors that facilitate establishing and maintaining complete
75.10records on the charter school's operations.
75.11    (l) The commissioner shall have 30 business days to review and comment on the
75.12supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies
75.13in the supplemental affidavit and the authorizer then has 30 business days to address,
75.14to the commissioner's satisfaction, any deficiencies in the supplemental affidavit. The
75.15school may not expand grades or add sites until the commissioner has reviewed and
75.16commented on the supplemental affidavit. The commissioner's approval or disapproval of
75.17a supplemental affidavit is final.
75.18    Subd. 4a. Conflict of interest. (a) A member of a charter school board of directors
75.19An individual is prohibited from serving as a member of the charter school board of
75.20directors or as if the individual, an immediate family member, or the individual's partner is
75.21an owner, employee or agent of or a contractor with a for-profit or nonprofit entity with
75.22whom the charter school contracts, directly or indirectly, for professional services, goods,
75.23or facilities. A violation of this prohibition renders a contract voidable at the option of
75.24the commissioner or the charter school board of directors. A member of a charter school
75.25board of directors who violates this prohibition shall be is individually liable to the charter
75.26school for any damage caused by the violation.
75.27(b) No member of the board of directors, employee, officer, or agent of a charter
75.28school shall participate in selecting, awarding, or administering a contract if a conflict
75.29of interest exists. A conflict exists when:
75.30(1) the board member, employee, officer, or agent;
75.31(2) the immediate family of the board member, employee, officer, or agent;
75.32(3) the partner of the board member, employee, officer, or agent; or
75.33(4) an organization that employs, or is about to employ any individual in clauses
75.34(1) to (3),
75.35has a financial or other interest in the entity with which the charter school is contracting.
75.36A violation of this prohibition renders the contract void.
76.1(c) Any employee, agent, or board member of the authorizer who participates
76.2in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
76.3nonrenewal process or decision is ineligible to serve on the board of directors of a school
76.4chartered by that authorizer.
76.5(b) (d) An individual may serve as a member of the board of directors if no conflict
76.6of interest under paragraph (a) exists.
76.7(c) A member of a charter school board of directors that serves as a member of the
76.8board of directors or as an employee or agent of or a contractor with a nonprofit entity
76.9with whom the charter school contracts, directly or indirectly, for professional services,
76.10goods, or facilities, must disclose all potential conflicts to the commissioner.
76.11(d) (e) The conflict of interest provisions under this subdivision do not apply to
76.12compensation paid to a teacher employed by the charter school who also serves as a
76.13member of the board of directors.
76.14(e) (f) The conflict of interest provisions under this subdivision do not apply to a
76.15teacher who provides services to a charter school through a cooperative formed under
76.16chapter 308A when the teacher also serves on the charter school board of directors.
76.17    Subd. 5. Conversion of existing schools. A board of an independent or special
76.18school district may convert one or more of its existing schools to charter schools under
76.19this section if 60 percent of the full-time teachers at the school sign a petition seeking
76.20conversion. The conversion must occur at the beginning of an academic year.
76.21    Subd. 6. Charter contract. The sponsor's authorization for a charter school must
76.22be in the form of a written contract signed by the sponsor authorizer and the board of
76.23directors of the charter school. The contract must be completed within 90 45 business
76.24days of the commissioner's approval of the sponsor's proposed authorization. authorizer's
76.25affidavit. The authorizer shall submit to the commissioner a copy of the signed charter
76.26contract within ten business days of its execution. The contract for a charter school must
76.27be in writing and contain at least the following:
76.28(1) a description of a program that carries out one or more of the purposes
76.29declaration of the purposes in subdivision 1 that the school intends to carry out and how
76.30the school will report its implementation of those purposes;
76.31(2) a description of the school program and the specific academic and nonacademic
76.32outcomes that pupils are to must achieve under subdivision 10;
76.33(3) a statement of admission policies and procedures;
76.34(4) a governance, management, and administration of plan for the school;
77.1(5) signed agreements from charter school board members to comply with all federal
77.2and state laws governing organizational, programmatic, and financial requirements and
77.3procedures for program and financial audits applicable to charter schools;
77.4(6) how the school will comply with subdivisions 8, 13, 16, and 23 the criteria,
77.5processes, and procedures that the authorizer will use for ongoing oversight of operational,
77.6financial, and academic performance;
77.7(7) assumption of liability by the charter school the performance evaluation that is a
77.8prerequisite for reviewing a charter contract under subdivision 15;
77.9(8) types and amounts of insurance liability coverage to be obtained by the charter
77.10school;
77.11(9) the term of the contract, which may be up to three years for an initial contract
77.12plus an additional preoperational planning year, and up to five years for a renewed contract
77.13if warranted by the school's academic, financial, and operational performance;
77.14(10) if how the board of directors or the operators of the charter school will provide
77.15special instruction and services for children with a disability under sections 125A.03
77.16to 125A.24, and 125A.65, a description of the financial parameters within which the
77.17charter school will operate to provide the special instruction and services to children
77.18with a disability; and
77.19(11) the process and criteria the sponsor authorizer intends to use to monitor
77.20and evaluate the fiscal and student performance of the charter school, consistent with
77.21subdivision 15.; and
77.22(12) the plan for an orderly closing of the school under chapter 308A or 317A, if the
77.23closure is a termination for cause, a voluntary termination, or a nonrenewal of the contract,
77.24and that includes establishing the responsibilities of the school board of directors and the
77.25authorizer and notifying the commissioner, authorizer, school district in which the charter
77.26school is located, and parents of enrolled students about the closure, the transfer of student
77.27records to students' resident districts, and procedures for closing financial operations.
77.28    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
77.29commissioner and its authorizer by December 31 each year. The commissioner may
77.30withhold the charter school's state aid if the charter school does not submit an audit by
77.31January 31.
77.32(b) The charter school, with the assistance of the auditor conducting the audit, must
77.33include with the report a copy of all charter school agreements for corporate management
77.34services. If the entity that provides the professional services to the charter school is
77.35exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
78.1must file with the commissioner by February 15 a copy of the annual return required under
78.2section 6033 of the Internal Revenue Code of 1986.
78.3(c) If the commissioner receives as part of the an audit report a management letter
78.4indicating that a material weakness exists in the financial reporting systems of a charter
78.5school, the charter school must submit a written report to the commissioner explaining
78.6how the material weakness will be resolved.
78.7 Upon the request of an individual, the charter school must make available in a timely
78.8fashion the minutes of meetings of members, the board of directors, and committees
78.9having any of the authority of the board of directors, and statements showing the financial
78.10result of all operations and transactions affecting income and surplus during the school's
78.11last annual accounting period and a balance sheet containing a summary of its assets and
78.12liabilities as of the closing date of the accounting period.
78.13    Subd. 7. Public status; exemption from statutes and rules. A charter school is a
78.14public school and is part of the state's system of public education. Except as provided in
78.15this section, a charter school is exempt from all statutes and rules applicable to a school, a
78.16board, or a district, although it may elect to comply with one or more provisions of statutes
78.17or rules. A charter school is exempt from all statutes and rules applicable to a school,
78.18school board, or school district unless a statute or rule is made specifically applicable to a
78.19charter school or is included in this section.
78.20    Subd. 8. State and local requirements. (a) A charter school shall meet all
78.21applicable federal, state, and local health and safety requirements applicable to school
78.22districts.
78.23(b) A school must comply with statewide education accountability requirements
78.24governing standards and assessments in chapter 120B and must work with the Department
78.25of Education to make available to the public valid and highly reliable comparisons
78.26of student academic growth and achievement across schools consistent with school
78.27performance report card information under section 120B.36.
78.28(c) A school sponsored authorized by a school board may be located in any district,
78.29unless the school board of the district of the proposed location disapproves by written
78.30resolution.
78.31(c) (d) A charter school must be nonsectarian in its programs, admission policies,
78.32employment practices, and all other operations. A sponsor An authorizer may not
78.33authorize a charter a school or program that is affiliated with a nonpublic sectarian
78.34school or a religious institution. A charter school student must be released for religious
78.35instruction, consistent with section 120A.22, subdivision 12, clause (3).
79.1(d) (e) Charter schools must not be used as a method of providing education or
79.2generating revenue for students who are being home-schooled.
79.3(e) (f) The primary focus of a charter school must be to provide a comprehensive
79.4program of instruction for at least one grade or age group from five through 18 years
79.5of age. Instruction may be provided to people younger than five years and older than
79.618 years of age.
79.7(f) (g) A charter school may not charge tuition to students who reside in Minnesota.
79.8(g) (h) A charter school is subject to and must comply with chapter 363A and
79.9section 121A.04.
79.10(h) (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
79.11Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
79.12123B.34 to 123B.39.
79.13(i) (j) A charter school is subject to the same financial audits, audit procedures, and
79.14audit requirements as a district. Audits must be conducted in compliance with generally
79.15accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
79.16and section 6.65. A charter school is subject to and must comply with sections 15.054;
79.17118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
79.18471.38 ; 471.391; 471.392; and 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6,
79.1912, 13, and 15 ; 471.881; and 471.89. The audit must comply with the requirements of
79.20sections 123B.75 to 123B.83, except to the extent deviations are necessary because of the
79.21program at the school. Deviations must be approved by the commissioner and authorizer.
79.22The Department of Education, state auditor, or legislative auditor, or authorizer may
79.23conduct financial, program, or compliance audits. A charter school determined to be in
79.24statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under
79.25section 123B.81, subdivision 4.
79.26(j) (k) A charter school is a district for the purposes of tort liability under chapter 466.
79.27(k) (l) A charter school must comply with chapters 13 and 13D; and sections 13.32;
79.28120A.22, subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5.
79.29(l) (m) A charter school is subject to the Pledge of Allegiance requirement under
79.30section 121A.11, subdivision 3.
79.31(n) A charter school is subject to chapter 181.
79.32    Subd. 8a. Aid reduction. The commissioner may reduce a charter school's state aid
79.33under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
79.34under this section.
80.1    Subd. 8b. Aid reduction for violations. The commissioner may reduce a charter
80.2school's state aid by an amount not to exceed 60 percent of the charter school's basic
80.3revenue for the period of time that a violation of law occurs.
80.4    Subd. 9. Admission requirements. A charter school may limit admission to:
80.5(1) pupils within an age group or grade level; or
80.6(2) people who are eligible to participate in the graduation incentives program
80.7under section 124D.68; or.
80.8(3) residents of a specific geographic area where the percentage of the population
80.9of non-Caucasian people of that area is greater than the percentage of the non-Caucasian
80.10population in the congressional district in which the geographic area is located, and as
80.11long as the school reflects the racial and ethnic diversity of the specific area.
80.12A charter school shall enroll an eligible pupil who submits a timely application,
80.13unless the number of applications exceeds the capacity of a program, class, grade level,
80.14or building. In this case, pupils must be accepted by lot. If a charter school is the only
80.15school located in a town serving pupils within a particular grade level, then pupils that
80.16are residents of the town must be given preference for enrollment before accepting pupils
80.17by lot. If a pupil lives within two miles of a charter school and the next closest public
80.18school is more than five miles away, the charter school must give those pupils preference
80.19for enrollment before accepting other pupils by lot. The charter school must develop and
80.20publish a lottery policy and process that it must use when accepting pupils by lot.
80.21A charter school shall give preference for enrollment to a sibling of an enrolled pupil
80.22and to a foster child of that pupil's parents and may give preference for enrolling children
80.23of the school's employees before accepting other pupils by lot.
80.24A charter school may not limit admission to pupils on the basis of intellectual ability,
80.25measures of achievement or aptitude, or athletic ability and may not establish any criteria
80.26or requirements for admission that are inconsistent with this subdivision.
80.27    Subd. 10. Pupil performance. A charter school must design its programs to at
80.28least meet the outcomes adopted by the commissioner for public school students. In the
80.29absence of the commissioner's requirements, the school must meet the outcomes contained
80.30in the contract with the sponsor authorizer. The achievement levels of the outcomes
80.31contained in the contract may exceed the achievement levels of any outcomes adopted by
80.32the commissioner for public school students.
80.33    Subd. 11. Employment and other operating matters. A charter school must
80.34employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
80.35who hold valid licenses to perform the particular service for which they are employed in
80.36the school. The charter school's state aid may be reduced under section 127A.42 127A.43
81.1if the school employs a teacher who is not appropriately licensed or approved by the
81.2board of teaching. The school may employ necessary employees who are not required to
81.3hold teaching licenses to perform duties other than teaching and may contract for other
81.4services. The school may discharge teachers and nonlicensed employees. The charter
81.5school board is subject to section 181.932. When offering employment to a prospective
81.6employee, a charter school must give that employee a written description of the terms and
81.7conditions of employment and the school's personnel policies. A person, without holding
81.8a valid administrator's license, may perform administrative, supervisory, or instructional
81.9leadership duties.
81.10The board of directors also shall decide matters related to the operation of the school,
81.11including budgeting, curriculum and operating procedures.
81.12    Subd. 12. Pupils with a disability. A charter school must comply with sections
81.13125A.02 , 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
81.14with a disability as though it were a district.
81.15    Subd. 13. Length of school year. A charter school must provide instruction
81.16each year for at least the number of days required by section 120A.41. It may provide
81.17instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
81.18    Subd. 14. Annual public reports. A charter school must publish an annual report at
81.19least annually to its sponsor and the commissioner the information required by the sponsor
81.20or the commissioner approved by the charter school board of directors. The annual report
81.21must at least include information on school enrollment, governance and management,
81.22staffing, finances, academic performance, operational performance, innovative practices
81.23and implementation, and future plans. A charter school must distribute the annual
81.24report by publication, mail, or electronic means to the commissioner, authorizer, school
81.25employees, and parents and legal guardians of students enrolled in the charter school and
81.26also must post the report on the charter school's official Web site. The reports are public
81.27data under chapter 13.
81.28    Subd. 15. Review and comment. (a) The department must review and comment on
81.29the evaluation, by the sponsor, of the performance of a charter school before the charter
81.30school's contract is renewed for another contract term. The sponsor must submit to
81.31the commissioner timely information for the review and comment. The commissioner
81.32must review and comment on the authorizer's performance evaluation process at the
81.33time the authorizer submits its application for approval as an authorizer and each time
81.34the authorizer undergoes its five-year review under subdivision 3, paragraph (f). Before
81.35renewing a charter contract, the authorizer shall provide the commissioner with a formal,
81.36written evaluation of the school's performance.
82.1(b) A sponsor An authorizer shall monitor and evaluate the fiscal and student
82.2performance of the school, and may for this purpose annually assess a charter school: (1)
82.3in its first, second, or third year of operation up to $30 per student up to a maximum of
82.4$10,000; and (2) in its fourth or a subsequent year of operation up to $10 $20 per student
82.5up to a maximum of $3,500 $7,000.
82.6(c) The minimum fee that each charter school pays to an authorizer is the basic
82.7formula allowance for that year. Beginning in fiscal year 2013, the maximum fee is four
82.8times the formula allowance for that year. Beginning in fiscal year 2013, each charter
82.9school's fee, subject to the minimum and maximum fees, equals the product of .015, the
82.10formula allowance for that year, and the charter school's adjusted marginal cost pupil
82.11units for that year.
82.12(d) Notwithstanding paragraph (c), the following charter school fees apply, subject
82.13to the minimum and maximum fee in paragraph (c):
82.14(1) for fiscal year 2010 only, each charter school's fee equals the product of .01, the
82.15formula allowance for that year, and the charter school's adjusted marginal cost pupil units
82.16for that year and the maximum fee is two times the basic formula allowance for that year;
82.17(2) for fiscal year 2011 only, each charter school's fee equals the product of .01, the
82.18formula allowance for that year, and the charter school's adjusted marginal cost pupil
82.19units for that year and the maximum fee is three times the basic formula allowance for
82.20that year; and
82.21(3) for fiscal year 2012 only, each charter school's fee equals the product of .013, the
82.22formula allowance for that year, and the charter school's adjusted marginal cost pupil units
82.23for that year and the maximum fee is four times the basic formula allowance for that year.
82.24(e) For the preoperational planning period, the authorizer may assess a charter school
82.25the formula allowance for one pupil unit.
82.26(f) Each year by September 30, an authorizer shall submit to the commissioner a
82.27statement of expenditures related to authorizing activities during the previous school year
82.28ending on June 30. The authorizer must transmit a copy of the statement to all schools
82.29chartered by the authorizer.
82.30    Subd. 16. Transportation. (a) A charter school after its first fiscal year of operation
82.31by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
82.32operation must notify the district in which the school is located and the Department of
82.33Education if it will provide its own transportation or use the transportation services of the
82.34district in which it is located for the fiscal year.
82.35(b) If a charter school elects to provide transportation for pupils, the transportation
82.36must be provided by the charter school within the district in which the charter school is
83.1located. The state must pay transportation aid to the charter school according to section
83.2124D.11, subdivision 2 .
83.3For pupils who reside outside the district in which the charter school is located, the
83.4charter school is not required to provide or pay for transportation between the pupil's
83.5residence and the border of the district in which the charter school is located. A parent
83.6may be reimbursed by the charter school for costs of transportation from the pupil's
83.7residence to the border of the district in which the charter school is located if the pupil is
83.8from a family whose income is at or below the poverty level, as determined by the federal
83.9government. The reimbursement may not exceed the pupil's actual cost of transportation
83.10or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
83.11more than 250 miles per week.
83.12At the time a pupil enrolls in a charter school, the charter school must provide the
83.13parent or guardian with information regarding the transportation.
83.14(c) If a charter school does not elect to provide transportation, transportation for
83.15pupils enrolled at the school must be provided by the district in which the school is
83.16located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
83.17pupil residing in the same district in which the charter school is located. Transportation
83.18may be provided by the district in which the school is located, according to sections
83.19123B.88, subdivision 6 , and 124D.03, subdivision 8, for a pupil residing in a different
83.20district. If the district provides the transportation, the scheduling of routes, manner and
83.21method of transportation, control and discipline of the pupils, and any other matter relating
83.22to the transportation of pupils under this paragraph shall be within the sole discretion,
83.23control, and management of the district.
83.24    Subd. 17. Leased space. (a) A charter school may lease space from a an
83.25independent or special school board eligible to be a sponsor or an authorizer, other public
83.26or organization, private, nonprofit nonsectarian organization, private property owner,
83.27or a sectarian organization if the leased space is constructed as a school facility. The
83.28department must review and approve or disapprove leases in a timely manner. If a charter
83.29school is unable to lease appropriate space from an eligible board or other public or private
83.30nonprofit nonsectarian organization, the school may lease space from another nonsectarian
83.31organization if the Department of Education, in consultation with the Department of
83.32Administration, approves the lease. If the school is unable to lease appropriate space from
83.33public or private nonsectarian organizations, the school may lease space from a sectarian
83.34organization if the leased space is constructed as a school facility and the Department of
83.35Education, in consultation with the Department of Administration, approves the lease.
83.36The lease aid payments for charter schools that lease a facility from a school district or
84.1other government entity is limited to the same level of lease aid as defined in Minnesota
84.2Statutes 2008, section 124D.11, subdivision 4.
84.3(b) Upon approval of the authorizer, a charter school that has operated at least five
84.4consecutive years may form a separate affiliated nonprofit building company to provide a
84.5school facility. The authorizer shall submit a supplemental affidavit to the commissioner
84.6stating that the authorizer has reviewed:
84.7(1) the school's feasibility study on facility options;
84.8(2) documents showing the school's need and projected enrollment for such a
84.9facility; and
84.10(3) the school's financial plan and financial status.
84.11The school is prohibited from organizing the nonprofit building company until the
84.12authorizer files a supplementary affidavit with the commissioner and receives approval
84.13from the commissioner.
84.14(c) A charter school that leases a facility from a building company under paragraph
84.15(b) must include in its lease agreement a clause that recognizes the reductions in lease aid
84.16applicable under section 124D.11, subdivision 4, when the bonds or mortgage to cover the
84.17original purchase and renovation or construction of the facility have been retired.
84.18    Subd. 18. Authority to raise initial working capital. A sponsor may authorize
84.19a charter school before the applicant has secured its space, equipment, facilities, and
84.20personnel if the applicant indicates the authority is necessary for it to raise working
84.21capital. A sponsor may not authorize a school before the commissioner has approved the
84.22authorization.
84.23    Subd. 19. Disseminate information. (a) The sponsor authorizer, the operators, and
84.24the Department of Education department must disseminate information to the public
84.25on how to form and operate a charter school and. Charter schools must disseminate
84.26information about how to utilize use the offerings of a charter school. Particular Targeted
84.27groups to be targeted include low-income families and communities, and students of
84.28color, and students who are at risk of academic failure.
84.29(b) Authorizers, operators, and the department also may disseminate information
84.30about the successful best practices in teaching and learning demonstrated by charter
84.31schools.
84.32    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
84.33makes a written request for an extended leave of absence to teach at a charter school,
84.34the district must grant the leave. The district must grant a leave not to exceed a total of
84.35five years. Any request to extend the leave shall be granted only at the discretion of the
84.36school board. The district may require that the request for a leave or extension of leave
85.1be made up to 90 days before the teacher would otherwise have to report for duty before
85.2February 1 in the school year preceding the school year in which the teacher intends
85.3to leave, or February 1 of the calendar year in which the teacher's leave is scheduled
85.4to terminate. Except as otherwise provided in this subdivision and except for section
85.5122A.46, subdivision 7 , the leave is governed by section 122A.46, including, but not
85.6limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
85.7During a leave, the teacher may continue to aggregate benefits and credits in the
85.8Teachers' Retirement Association account by paying both the employer and employee
85.9contributions based upon the annual salary of the teacher for the last full pay period before
85.10the leave began. The retirement association may impose reasonable requirements to
85.11efficiently administer this subdivision under chapters 354 and 354A, consistent with
85.12subdivision 22.
85.13    Subd. 21. Collective bargaining. Employees of the board of directors of a charter
85.14school may, if otherwise eligible, organize under chapter 179A and comply with its
85.15provisions. The board of directors of a charter school is a public employer, for the
85.16purposes of chapter 179A, upon formation of one or more bargaining units at the school.
85.17Bargaining units at the school must be separate from any other units within the sponsoring
85.18an authorizing district, except that bargaining units may remain part of the appropriate
85.19unit within the sponsoring an authorizing district, if the employees of the school, the
85.20board of directors of the school, the exclusive representative of the appropriate unit in the
85.21sponsoring authorizing district, and the board of the sponsoring authorizing district agree
85.22to include the employees in the appropriate unit of the sponsoring authorizing district.
85.23    Subd. 22. Teacher and other employee retirement. (a) Teachers in a charter
85.24school must be public school teachers for the purposes of chapters 354 and 354a.
85.25(b) Except for teachers under paragraph (a), employees in a charter school must be
85.26public employees for the purposes of chapter 353.
85.27    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
85.28The duration of the contract with a sponsor authorizer must be for the term contained in
85.29the contract according to subdivision 6. The sponsor authorizer may or may not renew a
85.30contract at the end of the term for any ground listed in paragraph (b). A sponsor authorizer
85.31may unilaterally terminate a contract during the term of the contract for any ground
85.32listed in paragraph (b). At least 60 days before not renewing or terminating a contract,
85.33the sponsor authorizer shall notify the board of directors of the charter school of the
85.34proposed action in writing. The notice shall state the grounds for the proposed action in
85.35reasonable detail and that the charter school's board of directors may request in writing an
85.36informal hearing before the sponsor authorizer within 14 15 business days of receiving
86.1notice of nonrenewal or termination of the contract. Failure by the board of directors to
86.2make a written request for a hearing within the 14-day 15-business-day period shall be
86.3treated as acquiescence to the proposed action. Upon receiving a timely written request
86.4for a hearing, the sponsor authorizer shall give reasonable ten business days' notice to
86.5the charter school's board of directors of the hearing date. The sponsor authorizer shall
86.6conduct an informal hearing before taking final action. The sponsor authorizer shall take
86.7final action to renew or not renew a contract by the last day of classes in the school year.
86.8If the sponsor is a local board, the school's board of directors may appeal the sponsor's
86.9decision to the commissioner no later than 20 business days before the proposed date for
86.10terminating the contract or the end date of the contract.
86.11(b) A contract may be terminated or not renewed upon any of the following grounds:
86.12(1) failure to meet the requirements for pupil performance contained in the contract;
86.13(2) failure to meet generally accepted standards of fiscal management;
86.14(3) violations of law; or
86.15(4) other good cause shown.
86.16If a contract is terminated or not renewed under this paragraph, the school must be
86.17dissolved according to the applicable provisions of chapter 308A or 317A, except when
86.18the commissioner approves the decision of a different eligible sponsor to authorize the
86.19charter school.
86.20(c) If at the end of a contract term, either the sponsor or authorizer and the charter
86.21school board of directors wants mutually agree to voluntarily terminate or not renew
86.22the contract, a change in sponsors authorizers is allowed if the commissioner approves
86.23the decision of transfer to a different eligible sponsor approved authorizer to authorize
86.24charter the charter school. The party intending to terminate the contract must notify the
86.25other party and the commissioner of its intent at least 90 days before the date on which the
86.26contract ends. Both parties jointly must submit their intent in writing to the commissioner
86.27to mutually terminate the contract. The sponsor authorizer that is a party to the existing
86.28contract at least must inform the approved different eligible sponsor new authorizer about
86.29the fiscal and operational status, and student performance of the school. If no different
86.30eligible sponsor transfer of authorizer is approved, the school must be dissolved according
86.31to applicable law and the terms of the contract.
86.32(d) The commissioner, after providing reasonable notice to the board of directors of
86.33a charter school and the existing sponsor authorizer, and after providing an opportunity for
86.34a public hearing, may terminate the existing sponsorial relationship contract between the
86.35authorizer and the charter school board if the charter school has a history of:
86.36(1) failure to meet pupil performance requirements contained in the contract;
87.1(2) financial mismanagement or failure to meet generally accepted standards of
87.2fiscal management; or
87.3(2) (3) repeated or major violations of the law.
87.4    (e) If the commissioner terminates a charter school contract because the authorizer
87.5fails to comply with subdivision 3, paragraph (g), the commissioner shall provide the
87.6charter school with information about other eligible authorizers.
87.7    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
87.8entering a lease of real property with a related party as defined in subdivision 26, unless
87.9the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
87.10308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).
87.11    (b) For purposes of this section and section 124D.11:
87.12(1) "related party" means an affiliate or immediate relative of the other party in
87.13question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
87.14(2) "affiliate" means a person that directly or indirectly, through one or more
87.15intermediaries, controls, is controlled by, or is under common control with another person;
87.16(3) "immediate family" means an individual whose relationship by blood, marriage,
87.17adoption, or partnering is no more remote than first cousin;
87.18(4) "person" means an individual or entity of any kind; and
87.19(5) "control" means the ability to affect the management, operations, or policy
87.20actions or decisions of a person, whether through ownership of voting securities, by
87.21contract, or otherwise.
87.22(c) A lease of real property to be used for a charter school, not excluded in paragraph
87.23(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
87.24section 124D.10, subdivision 23a."
87.25    (c) (d) If a charter school enters into as lessee a lease with a related party and the
87.26charter school subsequently closes, the commissioner has the right to recover from the
87.27lessor any lease payments in excess of those that are reasonable under section 124D.11,
87.28subdivision 4 , clause (1).
87.29    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
87.30contract. If a contract is not renewed or is terminated according to subdivision 23, a
87.31pupil who attended the school, siblings of the pupil, or another pupil who resides in the
87.32same place as the pupil may enroll in the resident district or may submit an application
87.33to a nonresident district according to section 124D.03 at any time. Applications and
87.34notices required by section 124D.03 must be processed and provided in a prompt manner.
87.35The application and notice deadlines in section 124D.03 do not apply under these
87.36circumstances. The closed charter school must transfer the student's educational records
88.1within ten business days of closure to the student's school district of residence where the
88.2records must be retained or transferred under section 120A.22, subdivision 7.
88.3    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
88.4school may sue and be sued.
88.5(b) The board may not levy taxes or issue bonds.
88.6(c) The commissioner, a sponsor an authorizer, members of the board of a sponsor
88.7an authorizer in their official capacity, and employees of a sponsor an authorizer are
88.8immune from civil or criminal liability with respect to all activities related to a charter
88.9school they approve or sponsor authorize. The board of directors shall obtain at least
88.10the amount of and types of insurance required by the contract, according to subdivision
88.116. up to the applicable tort liability limits under chapter 466. The charter school board
88.12must submit a copy of the insurance policy to its authorizer before starting operations.
88.13The charter school board must submit changes in its insurance carrier or policy to its
88.14authorizer within 20 business days of the change.
88.15    Subd. 26. Definitions. For purposes of this section and section 124D.11:
88.16    (1) A "Related party" is an affiliate or close relative of the other party in question, an
88.17affiliate of a close relative, or a close relative of an affiliate.
88.18    (2) "Affiliate" means a person that directly, or indirectly through one or more
88.19intermediaries, controls, or is controlled by, or is under common control with, another
88.20person.
88.21    (3) "Close relative" means an individual whose relationship by blood, marriage, or
88.22adoption to another individual is no more remote than first cousin.
88.23    (4) "Person" means an individual or entity of any kind.
88.24    (5) "Control" includes the terms "controlling," "controlled by," and "under common
88.25control with" and means the possession, direct or indirect, of the power to direct or cause
88.26the direction of the management, operations, or policies of a person, whether through the
88.27ownership of voting securities, by contract, or otherwise.
88.28EFFECTIVE DATE.(a) This section is effective the day following final enactment
88.29and applies beginning August 1, 2009, unless otherwise specified in this effective date.
88.30    (b) Subdivision 3, paragraph (b), clause (2), applies to an authorizer seeking
88.31approval to charter a school after the effective date of this act. The changes in subdivision
88.323, paragraph (b), clause (2), shall not apply to a sponsor under Minnesota Statutes 2008,
88.33section 124D.10, that is a party to a charter contract on the effective date of this act
88.34except that subdivision 3, paragraph (b), clause (2), item (iv), applies to such sponsors
88.35beginning July 1, 2012.

89.1    Sec. 41. Minnesota Statutes 2008, section 124D.11, subdivision 4, is amended to read:
89.2    Subd. 4. Building lease aid. (a) When a charter school finds it economically
89.3advantageous to rent or lease a building or land for any instructional purposes and it
89.4determines that the total operating capital revenue under section 126C.10, subdivision 13,
89.5is insufficient for this purpose, it may apply to the commissioner for building lease aid
89.6for this purpose. The commissioner must review and either approve or deny a lease aid
89.7application using the following criteria:
89.8(1) the reasonableness of the price based on current market values;
89.9(2) the extent to which the lease conforms to applicable state laws and rules; and
89.10(3) the appropriateness of the proposed lease in the context of the space needs and
89.11financial circumstances of the charter school.
89.12A charter school must not use the building lease aid it receives for custodial, maintenance
89.13service, utility, or other operating costs. The amount of building lease aid per pupil unit
89.14served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
89.15the approved cost or (b) the product of the pupil units served for the current school year
89.16times the greater of the charter school's building lease aid per pupil unit served for fiscal
89.17year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
89.18or $1,200.
89.19(b) A charter school using lease aid to make payments to a building corporation,
89.20school district, or other governmental entity for the purpose of retiring the debt on that
89.21building is eligible for the amount of lease aid calculated under paragraph (a) until
89.22such time as the bonds or mortgage to cover the original purchase and renovation or
89.23construction are retired. For each subsequent year, the charter school is eligible for lease
89.24aid equal to 50 percent of the maximum lease aid amount in paragraph (a) unless the
89.25commissioner approves an expansion of the charter school facility, in which case the
89.26charter school is eligible for the full amount of lease aid under paragraph (a) until the
89.27additional debt is retired.
89.28EFFECTIVE DATE.This section is effective the day following final enactment
89.29and applies beginning August 1, 2009.

89.30    Sec. 42. Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:
89.31    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
89.32127A.45, subdivision 3 , aid payments for the current fiscal year to a charter school not in
89.33its first year of operation shall be of an equal amount on each of the 23 24 payment dates.
89.34A charter school in its first year of operation shall receive, on its first payment date, ten
89.35percent of its cumulative amount guaranteed for the year and 22 payments of an equal
90.1amount thereafter the sum of which shall equal the current year aid payment percentage
90.2multiplied by the cumulative amount guaranteed.
90.3(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
90.4operation on or prior to the end of a school year, the current year aid payment percentage
90.5multiplied by the amount due for the school year may be paid to the school after audit
90.6of prior fiscal year and current fiscal year pupil counts. June 30 of a school year, for the
90.7payment periods occurring after the school ceases serving students, the commissioner shall
90.8withhold the estimated state aid owed the school. The charter school board of directors
90.9and authorizer must submit to the commissioner a closure plan under chapter 308A or
90.10317A, and financial information about the school's liabilities and assets. After receiving
90.11the closure plan, financial information, an audit of pupil counts, documentation of lease
90.12expenditures, and monitoring of special education expenditures, the commissioner may
90.13release cash withheld and may continue regular payments up to the current year payment
90.14percentages if further amounts are owed. If, based on audits and monitoring, the school
90.15received state aid in excess of the amount owed, the commissioner shall retain aid withheld
90.16sufficient to eliminate the aid overpayment. For a charter school ceasing operations
90.17prior to, or at the end of, a school year, notwithstanding section 127A.45, subdivision
90.183, preliminary final payments may be made after receiving the closure plan, audit of
90.19pupil counts, monitoring of special education expenditures, and documentation of lease
90.20expenditures, and school submission of Uniform Financial Accounting and Reporting
90.21Standards (UFARS) financial data for the final year of operation. Final payment may be
90.22made upon receipt of audited financial statements under section 123B.77, subdivision 3.
90.23(c) If a charter school fails to comply with the commissioner's directive to return,
90.24for cause, federal or state funds administered by the department, the commissioner may
90.25withhold an amount of state aid sufficient to satisfy the directive.
90.26(d) If, within the timeline under section 471.425, a charter school fails to pay the state
90.27of Minnesota, a school district, intermediate school district, or service cooperative after
90.28receiving an undisputed invoice for goods and services, the commissioner may withhold
90.29an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
90.30aid to the interested state agency, school district, intermediate school district, or service
90.31cooperative. An interested state agency, school district, intermediate school district, or
90.32education cooperative shall notify the commissioner when a charter school fails to pay an
90.33undisputed invoice within 75 business days of when it received the original invoice.
90.34(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
90.35of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
90.36of student attendance for that school year.
91.1(d) (f) In order to receive state aid payments under this subdivision, a charter school
91.2in its first three years of operation must submit a school calendar in the form and manner
91.3requested by the department and a quarterly report to the Department of Education. The
91.4report must list each student by grade, show the student's start and end dates, if any,
91.5with the charter school, and for any student participating in a learning year program,
91.6the report must list the hours and times of learning year activities. The report must be
91.7submitted not more than two weeks after the end of the calendar quarter to the department.
91.8The department must develop a Web-based reporting form for charter schools to use
91.9when submitting enrollment reports. A charter school in its fourth and subsequent year of
91.10operation must submit a school calendar and enrollment information to the department in
91.11the form and manner requested by the department.
91.12(e) (g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
91.13school and satisfaction of creditors, cash and investment balances remaining shall be
91.14returned to the state.

91.15    Sec. 43. Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:
91.16    Subd. 2. Commissioner designation. (a) An area learning center A state-approved
91.17alternative program designated by the state must be a site. An area learning center A
91.18state-approved alternative program must provide services to students who meet the criteria
91.19in section 124D.68 and who are enrolled in:
91.20    (1) a district that is served by the center state-approved alternative program; or
91.21    (2) a charter school located within the geographic boundaries of a district that is
91.22served by the center state-approved alternative program.
91.23    (b) A school district or charter school may be approved biennially by the state to
91.24provide additional instructional programming that results in grade level acceleration. The
91.25program must be designed so that students make grade progress during the school year
91.26and graduate prior to the students' peers.
91.27    (c) To be designated, a district, charter school, or center state-approved alternative
91.28program must demonstrate to the commissioner that it will:
91.29    (1) provide a program of instruction that permits pupils to receive instruction
91.30throughout the entire year; and
91.31    (2) develop and maintain a separate record system that, for purposes of section
91.32126C.05 , permits identification of membership attributable to pupils participating in the
91.33program. The record system and identification must ensure that the program will not have
91.34the effect of increasing the total average daily membership attributable to an individual
91.35pupil as a result of a learning year program. The record system must include the date the
92.1pupil originally enrolled in a learning year program, the pupil's grade level, the date of
92.2each grade promotion, the average daily membership generated in each grade level, the
92.3number of credits or standards earned, and the number needed to graduate.
92.4    (d) A student who has not completed a school district's graduation requirements
92.5may continue to enroll in courses the student must complete in order to graduate until
92.6the student satisfies the district's graduation requirements or the student is 21 years old,
92.7whichever comes first.

92.8    Sec. 44. Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:
92.9    Subd. 3. Student planning. A district, charter school, or area learning center
92.10state-approved alternative program must inform all pupils and their parents about the
92.11learning year program and that participation in the program is optional. A continual
92.12learning plan must be developed at least annually for each pupil with the participation
92.13of the pupil, parent or guardian, teachers, and other staff; each participant must sign and
92.14date the plan. The plan must specify the learning experiences that must occur during the
92.15entire fiscal year and are necessary for grade progression or, for secondary students,
92.16graduation. The plan must include:
92.17    (1) the pupil's learning objectives and experiences, including courses or credits the
92.18pupil plans to complete each year and, for a secondary pupil, the graduation requirements
92.19the student must complete;
92.20    (2) the assessment measurements used to evaluate a pupil's objectives;
92.21    (3) requirements for grade level or other appropriate progression; and
92.22    (4) for pupils generating more than one average daily membership in a given grade,
92.23an indication of which objectives were unmet.
92.24The plan may be modified to conform to district schedule changes. The district may
92.25not modify the plan if the modification would result in delaying the student's time of
92.26graduation.

92.27    Sec. 45. Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:
92.28    Subd. 2. Eligible pupils. A pupil under the age of 21 or who meets the requirements
92.29of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation
92.30incentives program, if the pupil:
92.31(1) performs substantially below the performance level for pupils of the same age
92.32in a locally determined achievement test;
92.33(2) is at least one year behind in satisfactorily completing coursework or obtaining
92.34credits for graduation;
92.35(3) is pregnant or is a parent;
93.1(4) has been assessed as chemically dependent;
93.2(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
93.3(6) has been referred by a school district for enrollment in an eligible program or
93.4a program pursuant to section 124D.69;
93.5(7) is a victim of physical or sexual abuse;
93.6(8) has experienced mental health problems;
93.7(9) has experienced homelessness sometime within six months before requesting a
93.8transfer to an eligible program;
93.9(10) speaks English as a second language or has limited English proficiency; or
93.10(11) has withdrawn from school or has been chronically truant; or
93.11(12) is being treated in a hospital in the seven-county metropolitan area for cancer or
93.12other life threatening illness or is the sibling of an eligible pupil who is being currently
93.13treated, and resides with the pupil's family at least 60 miles beyond the outside boundary
93.14of the seven-county metropolitan area.

93.15    Sec. 46. Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:
93.16    Subd. 3. Eligible programs. (a) A pupil who is eligible according to subdivision 2
93.17may enroll in area learning centers a state-approved alternative program under sections
93.18123A.05 to 123A.08.
93.19(b) A pupil who is eligible according to subdivision 2 and who is between the ages
93.20of 16 and 21 a high school junior or senior may enroll in postsecondary courses under
93.21section 124D.09.
93.22(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary
93.23or secondary education program.
93.24(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic,
93.25nonsectarian school that has contracted with the serving school district to provide
93.26educational services. However, notwithstanding other provisions of this section, only a
93.27pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative
93.28school that is specifically structured to provide educational services to such a pupil.
93.29(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic
93.30education programs approved under section 124D.52 and operated under the community
93.31education program contained in section 124D.19.

93.32    Sec. 47. Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:
93.33    Subd. 4. Additional eligible program. A pupil who is at least 16 years of age,
93.34who is eligible under subdivision 2, clause (a), and who has been enrolled only in a
93.35public school, if the pupil has been enrolled in any school, during the year immediately
94.1before transferring under this subdivision, may transfer to any nonpublic school that has
94.2contracted with the serving school district to provide nonsectarian educational services.
94.3The school must enroll every eligible pupil who seeks to transfer to the school under
94.4this program subject to available space.

94.5    Sec. 48. Minnesota Statutes 2008, section 124D.68, subdivision 5, is amended to read:
94.6    Subd. 5. Pupil enrollment. (a) Any eligible pupil may apply to enroll in an eligible
94.7program. Approval of the resident district is not required for:
94.8(1) an eligible pupil to enroll in any eligible program in a nonresident district
94.9under subdivision 3 or 4 or an area learning center a state-approved alternative program
94.10established under section 123A.05; or
94.11(2) an eligible pupil under subdivision 2, to enroll in an adult basic education
94.12program approved under section 124D.52.
94.13(b) Notwithstanding paragraph (a), a nonresident district must first approve the
94.14enrollment application of any eligible pupil who was expelled under section 121A.45 for a
94.15reason stated in section 124D.03, subdivision 1, paragraph (b).
94.16EFFECTIVE DATE.This section is effective for the 2009-2010 school year and
94.17later.

94.18    Sec. 49. Minnesota Statutes 2008, section 124D.83, subdivision 4, is amended to read:
94.19    Subd. 4. Early childhood family education revenue. A school receiving aid
94.20under this section is eligible may apply annually to the commissioner to receive an early
94.21childhood family education revenue grant to provide early childhood family education
94.22programs for parents and children who are enrolled or eligible for enrollment in a federally
94.23recognized tribe. The revenue equals 1.5 times the statewide average expenditure per
94.24participant under section 124D.135, times the number of children and parents participating
94.25full time in the program. The program must grant must be used for programs and services
94.26that comply with section 124D.13, except that the school is not required to provide a
94.27community education program or establish a community education advisory council. The
94.28program must be designed to improve the skills of parents and promote American Indian
94.29history, language, and culture. The school must make affirmative efforts to encourage
94.30participation by fathers. Admission may not be limited to those enrolled in or eligible for
94.31enrollment in a federally recognized tribe.

94.32    Sec. 50. Minnesota Statutes 2008, section 124D.86, subdivision 1, is amended to read:
94.33    Subdivision 1. Use of revenue. Districts must use integration revenue under this
94.34section must be used for programs established under a desegregation plan filed with the
95.1Department of Education according to Minnesota Rules, parts 3535.0100 to 3535.0180, or
95.2under court order. The revenue must be used to create or enhance learning opportunities
95.3which are designed to provide opportunities for students to have increased and sustained
95.4interracial contacts and improved educational opportunities and outcomes designed to
95.5close the academic achievement gap between white students and protected students as
95.6defined in Minnesota Rules, part 3535.0110, subpart 4, through classroom experiences,
95.7staff initiatives, and other educationally related programs, consistent with subdivision 1b.
95.8EFFECTIVE DATE.This section is effective the day following final enactment.

95.9    Sec. 51. Minnesota Statutes 2008, section 124D.86, subdivision 1a, is amended to read:
95.10    Subd. 1a. Budget approval process. Each year before a district receives any
95.11revenue under subdivision 3, clause (4), (5), or (6), the district must submit to the
95.12Department of Education, for its review and approval a budget detailing the costs of
95.13the desegregation/integration plan filed under Minnesota Rules, parts 3535.0100 to
95.143535.0180. Notwithstanding chapter 14, the department may develop criteria for budget
95.15approval. The department shall consult with the Desegregation Advisory Board in
95.16developing these criteria. The criteria developed by the department should address, at a
95.17minimum, the following:
95.18(1) budget items cannot be approved unless they are part of any overall desegregation
95.19plan approved by the district for isolated sites or by the Multidistrict Collaboration
95.20Council and participation participating individual members;
95.21(2) the budget must indicate how revenue expenditures will be used specifically to
95.22support increased opportunities for and sustained interracial contact contacts and improved
95.23educational opportunities and outcomes designed to close the academic achievement
95.24gap between white students and protected students as defined in Minnesota Rules, part
95.253535.0110, subpart 4, consistent with subdivision 1b;
95.26(3) components of the budget to be considered by the department, including staffing,
95.27curriculum, transportation, facilities, materials, and equipment and reasonable planning
95.28costs, as determined by the department; and
95.29(4) if plans are proposed to enhance existing programs, the total budget being
95.30appropriated to the program must be included, indicating what part is to be funded using
95.31integration revenue and what part is to be funded using other revenues.
95.32EFFECTIVE DATE.This section is effective the day following final enactment.

95.33    Sec. 52. Minnesota Statutes 2008, section 124D.86, subdivision 1b, is amended to read:
96.1    Subd. 1b. Plan components. Each year a district's board must approve the plans
96.2submitted by each district under Minnesota Rules, parts 3535.0160 and 3535.0170,
96.3must be approved by the district's board each year before integration revenue will be is
96.4awarded. If a district is applying for revenue for a plan that is part of a multidistrict
96.5council, the individual district shall not receive revenue unless it ratifies the plan adopted
96.6by its multidistrict council or approves a modified plan with a written explanation of
96.7any modifications. Each plan shall contain:
96.8(1) an identification of identify the integration issues at the sites or districts covered
96.9by Minnesota Rules, parts 3535.0100 to 3535.0180;
96.10(2) a description of describe the community outreach that preceded the integration
96.11plan, such that the commissioner can determine whether the membership of the planning
96.12councils complied with the requirements of Minnesota Rules, parts 3535.0100 to
96.133535.0180; and
96.14(3) the identify specific goals of the integration plan that is premised on valid and
96.15reliable measures, effective and efficient use of resources, and continuous adaptation of
96.16best practices;
96.17(4) provide for implementing innovative and practical strategies and programs such
96.18as magnet schools, transportation, research-based programs to improve the performance of
96.19protected students with lower measured achievement on state or local assessments, staff
96.20development for teachers in cultural competency, formative assessments, and increased
96.21numbers of teachers of color that enable the district to achieve annual progress in realizing
96.22the goals in its plan; and
96.23(5) establish valid and reliable longitudinal measures for the district to use in
96.24demonstrating to the commissioner the amount of progress it has achieved in realizing
96.25the goals in its plan.
96.26By June 30 of the subsequent fiscal year, each district shall report to the commissioner in
96.27writing about the extent to which the integration goals identified in the plan were met.
96.28EFFECTIVE DATE.This section is effective the day following final enactment.

96.29    Sec. 53. Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:
96.30    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
96.31year program under section 124D.128, an area learning center or an alternative learning
96.32program approved by the commissioner under sections 123A.05 and 123A.06, an
96.33alternative program approved by the commissioner, or a contract alternative program
96.34under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than
96.351,020 hours in a school year for a secondary student, more than 935 hours in a school year
97.1for an elementary student, or more than 425 hours in a school year for a kindergarten
97.2student without a disability, that pupil may be counted as more than one pupil in average
97.3daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess
97.4of one pupil must be determined by the ratio of the number of hours of instruction
97.5provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours
97.6required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii)
97.7the greater of 935 hours or the number of hours required for a full-time elementary pupil
97.8in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of
97.9425 hours or the number of hours required for a full-time kindergarten student without a
97.10disability in the district to 425 for a kindergarten student without a disability. Hours that
97.11occur after the close of the instructional year in June shall be attributable to the following
97.12fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average
97.13daily membership under this subdivision. A student in grades 1 through 12 must not be
97.14counted as more than 1.2 pupils in average daily membership under this subdivision.
97.15(b)(i) To receive general education revenue for a pupil in an area learning center
97.16or alternative learning program that has an independent study component, a district
97.17must meet the requirements in this paragraph. The district must develop, for the pupil,
97.18a continual learning plan consistent with section 124D.128, subdivision 3. Each school
97.19district that has a state-approved public an area learning center or alternative learning
97.20program must reserve revenue in an amount equal to at least 90 percent of the district
97.21average general education revenue per pupil unit less compensatory revenue per pupil
97.22unit, minus an amount equal to the product of the formula allowance according to section
97.23126C.10, subdivision 2, times .0485, calculated without basic skills and transportation
97.24sparsity revenue, times the number of pupil units generated by students attending a
97.25state-approved public an area learning center or alternative learning program. The amount
97.26of reserved revenue available under this subdivision may only be spent for program costs
97.27associated with the state-approved public area learning center or alternative learning
97.28program. Compensatory revenue must be allocated according to section 126C.15,
97.29subdivision 2 . Basic skills revenue generated according to section 126C.10, subdivision 4,
97.30by pupils attending the eligible program must be allocated to the program.
97.31(ii) General education revenue for a pupil in an approved a state-approved
97.32alternative program without an independent study component must be prorated for a
97.33pupil participating for less than a full year, or its equivalent. The district must develop a
97.34continual learning plan for the pupil, consistent with section 124D.128, subdivision 3.
97.35Each school district that has a state-approved public an area learning center or alternative
97.36learning program must reserve revenue in an amount equal to at least 90 percent of the
98.1district average general education revenue per pupil unit less compensatory revenue per
98.2pupil unit, minus an amount equal to the product of the formula allowance according
98.3to section 126C.10, subdivision 2, times .0485, calculated without basic skills and
98.4transportation sparsity revenue, times the number of pupil units generated by students
98.5attending a state-approved public an area learning center or alternative learning program.
98.6The amount of reserved revenue available under this subdivision may only be spent for
98.7program costs associated with the state-approved public area learning center or alternative
98.8learning program. Compensatory revenue must be allocated according to section 126C.15,
98.9subdivision 2 . Basic skills revenue generated according to section 126C.10, subdivision 4,
98.10by pupils attending the eligible program must be allocated to the program.
98.11(iii) General education revenue for a pupil in an approved a state-approved
98.12alternative program that has an independent study component must be paid for each hour
98.13of teacher contact time and each hour of independent study time completed toward a
98.14credit or graduation standards necessary for graduation. Average daily membership for a
98.15pupil shall equal the number of hours of teacher contact time and independent study
98.16time divided by 1,020.
98.17(iv) For an a state-approved alternative program having an independent study
98.18component, the commissioner shall require a description of the courses in the program, the
98.19kinds of independent study involved, the expected learning outcomes of the courses, and
98.20the means of measuring student performance against the expected outcomes.

98.21    Sec. 54. Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:
98.22    Subd. 20. Project-based average daily membership. (a) Project-based is an
98.23instructional program where students complete coursework for credit at an individual pace
98.24that is primarily student-led and may be completed on site, in the community, or online. A
98.25project-based program may be made available to all or designated students and grades
98.26in a school. To receive general education revenue for a pupil enrolled in a public school
98.27with a project-based program, a school must meet the requirements in this paragraph.
98.28The school must:
98.29(1) register with the commissioner as a project-based program by May 30 of the
98.30preceding fiscal year apply and receive approval from the commissioner as a project-based
98.31program at least 90 days prior to starting the program;
98.32(2) provide a minimum teacher contact of no less than one hour per week per
98.33project-based credit for each pupil;
99.1(3) ensure that the program will not increase the total average daily membership
99.2generated by the student and that there will be the expectation that the students will be
99.3making typical progression towards high school graduation;
99.4(3) (4) maintain a record system that shows when each credit or portion thereof was
99.5reported for membership for each pupil; and
99.6(4) (5) report pupil membership consistent with paragraph (b).
99.7(b) The commissioner must develop a formula for reporting pupil membership to
99.8compute average daily membership for each registered approved project-based school
99.9program. Average daily membership for a pupil in a registered an approved project-based
99.10program is the lesser of:
99.11(1) 1.0; or
99.12(2) the ratio of (i) the number of membership hours generated by project-based
99.13credits completed during the school year plus membership hours generated by credits
99.14completed in a seat-based setting to (ii) the annual required instructional hours at that
99.15grade level. Membership hours for a partially completed project-based credit must be
99.16prorated. General education revenue for a pupil in a project-based program must be
99.17prorated for a pupil participating for less than a full year, or its equivalent.
99.18(c) For a program that has not been approved by the commissioner for project-based
99.19learning but an auditor or other site visit deems that any portion or credits awarded
99.20by the school are project-based, student membership must be computed according to
99.21paragraph (b).

99.22    Sec. 55. Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:
99.23    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years
99.242007 and later, 2008, and 2009, the basic alternative teacher compensation aid for a
99.25school district with a plan approved under section 122A.414, subdivision 2b, equals 65
99.2673.1 percent of the alternative teacher compensation revenue under section 122A.415,
99.27subdivision 1 . The basic alternative teacher compensation aid for an intermediate school
99.28district or charter school with a plan approved under section 122A.414, subdivisions 2a
99.29and 2b , if the recipient is a charter school, equals $260 times the number of pupils enrolled
99.30in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
99.31year for a charter school in the first year of operation, times the ratio of the sum of the
99.32alternative teacher compensation aid and alternative teacher compensation levy for all
99.33participating school districts to the maximum alternative teacher compensation revenue
99.34for those districts under section 122A.415, subdivision 1.
100.1    (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid for
100.2a school with a plan approved under section 122A.414, subdivision 2b, equals 65 percent
100.3of the alternative teacher compensation revenue under section 122A.415, subdivision 1.
100.4The basic alternative teacher compensation aid for an intermediate school district or
100.5charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
100.6the recipient is a charter school, equals $260 times the number of pupils enrolled in the
100.7school on October 1 of the previous year, or on October 1 of the current year for a charter
100.8school in the first year of operation, times the ratio of the sum of the alternative teacher
100.9compensation aid and alternative teacher compensation levy for all participating school
100.10districts to the maximum alternative teacher compensation revenue for those districts
100.11under section 122A.415, subdivision 1.
100.12(b) (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
100.131 , the state total basic alternative teacher compensation aid entitlement must not exceed
100.14$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
100.15of alternative teacher compensation aid approved under section 122A.415 so as not to
100.16exceed these limits.
100.17EFFECTIVE DATE.This section is effective the day following final enactment.

100.18    Sec. 56. [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
100.19    Subdivision 1. Establishment; membership. A P-20 education partnership is
100.20established to create a seamless system of education that maximizes achievements of
100.21all students, from early childhood through elementary, secondary, and postsecondary
100.22education, while promoting the efficient use of financial and human resources. The
100.23partnership shall consist of major statewide educational groups or constituencies or
100.24noneducational statewide organizations with a stated interest in P-20 education. The initial
100.25membership of the partnership includes the members serving on the Minnesota P-16
100.26Education Partnership and four legislators appointed as follows:
100.27    (1) one senator from the majority party and one senator from the minority party,
100.28appointed by the Subcommittee on Committees of the Committee on Rules and
100.29Administration; and
100.30    (2) one member of the house of representatives appointed by the speaker of the
100.31house and one member appointed by the minority leader of the house of representatives.
100.32    The chair of the P-16 education partnership must convene the first meeting of the
100.33P-20 partnership. Prospective members may be nominated by any partnership member and
100.34new members will be added with the approval of a two-thirds majority of the partnership.
101.1The partnership will also seek input from nonmember organizations whose expertise can
101.2help inform the partnership's work.
101.3    Partnership members shall be represented by the chief executives, presidents, or
101.4other formally designated leaders of their respective organizations, or their designees. The
101.5partnership shall meet at least three times during each calendar year.
101.6    Subd. 2. Powers and duties; report. The partnership shall develop
101.7recommendations to the governor and the legislature designed to maximize the
101.8achievement of all P-20 students while promoting the efficient use of state resources,
101.9thereby helping the state realize the maximum value for its investment. These
101.10recommendations may include, but are not limited to, strategies, policies, or other actions
101.11focused on:
101.12    (1) improving the quality of and access to education at all points from preschool
101.13through graduate education;
101.14    (2) improving preparation for, and transitions to, postsecondary education and
101.15work; and
101.16    (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
101.17teacher preparation, induction and mentoring of beginning teachers, and continuous
101.18professional development for career teachers.
101.19    By January 15 of each year, the partnership shall submit a report to the governor
101.20and to the chairs and ranking minority members of the legislative committees and
101.21divisions with jurisdiction over P-20 education policy and finance that summarizes the
101.22partnership's progress in meeting its goals and identifies the need for any draft legislation
101.23when necessary to further the goals of the partnership to maximize student achievement
101.24while promoting efficient use of resources.
101.25    Subd. 3. Expiration. Notwithstanding section 15.059, subdivision 5, the partnership
101.26is permanent and does not expire.

101.27    Sec. 57. Minnesota Statutes 2008, section 171.05, subdivision 2, is amended to read:
101.28    Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision
101.29in subdivision 1 to the contrary, the department may issue an instruction permit to an
101.30applicant who is 15, 16, or 17 years of age and who:
101.31(1) has completed a course of driver education in another state, has a previously
101.32issued valid license from another state, or is enrolled in either:
101.33(i) a public, private, or commercial driver education program that is approved by
101.34the commissioner of public safety and that includes classroom and behind-the-wheel
101.35training; or
102.1(ii) an approved behind-the-wheel driver education program when the student is
102.2receiving full-time instruction in a home school within the meaning of sections 120A.22
102.3and 120A.24, the student is working toward a homeschool diploma, the student's status
102.4as a homeschool student has been certified by the superintendent of the school district in
102.5which the student resides, and the student is taking home-classroom driver training with
102.6classroom materials approved by the commissioner of public safety, and the student's
102.7parent or guardian has certified the student's homeschool and home-classroom driver
102.8training status on the form approved by the commissioner;
102.9(2) has completed the classroom phase of instruction in the driver education program;
102.10(3) has passed a test of the applicant's eyesight;
102.11(4) has passed a department-administered test of the applicant's knowledge of traffic
102.12laws;
102.13(5) has completed the required application, which must be approved by (i) either
102.14parent when both reside in the same household as the minor applicant or, if otherwise, then
102.15(ii) the parent or spouse of the parent having custody or, in the event there is no court order
102.16for custody, then (iii) the parent or spouse of the parent with whom the minor is living
102.17or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or,
102.18in the event a person under the age of 18 has no living father, mother, or guardian, or is
102.19married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close
102.20family member, or adult employer; provided, that the approval required by this clause
102.21contains a verification of the age of the applicant and the identity of the parent, guardian,
102.22adult spouse, adult close family member, or adult employer; and
102.23(6) has paid the fee required in section 171.06, subdivision 2.
102.24(b) For the purposes of determining compliance with the certification of paragraph
102.25(a), clause (1), item (ii), the commissioner may request verification of a student's
102.26homeschool status from the superintendent of the school district in which the student
102.27resides and the superintendent shall provide that verification.
102.28(c) The instruction permit is valid for two years from the date of application and
102.29may be renewed upon payment of a fee equal to the fee for issuance of an instruction
102.30permit under section 171.06, subdivision 2.

102.31    Sec. 58. Minnesota Statutes 2008, section 171.17, subdivision 1, is amended to read:
102.32    Subdivision 1. Offenses. (a) The department shall immediately revoke the license
102.33of a driver upon receiving a record of the driver's conviction of:
102.34(1) manslaughter resulting from the operation of a motor vehicle or criminal
102.35vehicular homicide or injury under section 609.21;
103.1(2) a violation of section 169A.20 or 609.487;
103.2(3) a felony in the commission of which a motor vehicle was used;
103.3(4) failure to stop and disclose identity and render aid, as required under section
103.4169.09 , in the event of a motor vehicle accident, resulting in the death or personal injury
103.5of another;
103.6(5) perjury or the making of a false affidavit or statement to the department under
103.7any law relating to the application, ownership or operation of a motor vehicle, including
103.8on the certification required under section 171.05, subdivision 2, clause (1), item (ii), to
103.9issue an instruction permit to a homeschool student;
103.10(6) except as this section otherwise provides, three charges of violating within a
103.11period of 12 months any of the provisions of chapter 169 or of the rules or municipal
103.12ordinances enacted in conformance with chapter 169, for which the accused may be
103.13punished upon conviction by imprisonment;
103.14(7) two or more violations, within five years, of the misdemeanor offense described
103.15in section 169.444, subdivision 2, paragraph (a);
103.16(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
103.17paragraph (b);
103.18(9) an offense in another state that, if committed in this state, would be grounds for
103.19revoking the driver's license; or
103.20(10) a violation of an applicable speed limit by a person driving in excess of 100
103.21miles per hour. The person's license must be revoked for six months for a violation of
103.22this clause, or for a longer minimum period of time applicable under section 169A.53,
103.23169A.54 , or 171.174.
103.24(b) The department shall immediately revoke the school bus endorsement of a driver
103.25upon receiving a record of the driver's conviction of the misdemeanor offense described in
103.26section 169.443, subdivision 7.

103.27    Sec. 59. Minnesota Statutes 2008, section 171.22, subdivision 1, is amended to read:
103.28    Subdivision 1. Violations. With regard to any driver's license, including a
103.29commercial driver's license, it shall be unlawful for any person:
103.30(1) to display, cause or permit to be displayed, or have in possession, any fictitious
103.31or fraudulently altered driver's license or Minnesota identification card;
103.32(2) to lend the person's driver's license or Minnesota identification card to any other
103.33person or knowingly permit the use thereof by another;
103.34(3) to display or represent as one's own any driver's license or Minnesota
103.35identification card not issued to that person;
104.1(4) to use a fictitious name or date of birth to any police officer or in any application
104.2for a driver's license or Minnesota identification card, or to knowingly make a false
104.3statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any
104.4such application;
104.5(5) to alter any driver's license or Minnesota identification card;
104.6(6) to take any part of the driver's license examination for another or to permit
104.7another to take the examination for that person;
104.8(7) to make a counterfeit driver's license or Minnesota identification card;
104.9(8) to use the name and date of birth of another person to any police officer for the
104.10purpose of falsely identifying oneself to the police officer; or
104.11(9) to display as a valid driver's license any canceled, revoked, or suspended driver's
104.12license. A person whose driving privileges have been withdrawn may display a driver's
104.13license only for identification purposes; or
104.14(10) to submit a false affidavit or statement to the department on the certification
104.15required under section 171.05, subdivision 2, clause (1), item (ii), to issue an instruction
104.16permit to a homeschool student.

104.17    Sec. 60. Minnesota Statutes 2008, section 181A.05, subdivision 1, is amended to read:
104.18    Subdivision 1. When issued. Any minor 14 or 15 years of age who wishes to work
104.19on school days during school hours shall first secure an employment certificate. The
104.20certificate shall be issued only by the school district superintendent, the superintendent's
104.21agent, or some other person designated by the Board of Education, or by the person in
104.22charge of providing instruction for students enrolled in nonpublic schools as defined in
104.23section 120A.22, subdivision 4. The employment certificate shall be issued only for
104.24a specific position with a designated employer and shall be issued only in the following
104.25circumstances:
104.26(1) if a minor is to be employed in an occupation not prohibited by rules promulgated
104.27under section 181A.09 and as evidence thereof presents a signed statement from the
104.28prospective employer; and
104.29(2) if the parent or guardian of the minor consents to the employment; and
104.30(3) if the issuing officer believes the minor is physically capable of handling the job
104.31in question and further believes the best interests of the minor will be served by permitting
104.32the minor to work.

104.33    Sec. 61. IMPLEMENTING RIGOROUS COURSEWORK MEASURES
104.34RELATED TO STUDENT PERFORMANCE.
105.1    To implement the requirements of Minnesota Statutes, section 120B.35, subdivision
105.23, paragraph (c), clauses (1) and (2), and to help parents and members of the public better
105.3understand the reported data, the commissioner of education must convene a group
105.4of recognized and qualified experts and interested stakeholders, including parents and
105.5teachers among other stakeholders, to develop a model projecting anticipated performance
105.6of each high school on preparation and rigorous coursework measures that compares the
105.7school with similar schools. The model must use information about entering high school
105.8students based on particular background characteristics that are predictive of differing
105.9rates of college readiness. These characteristics include grade 8 achievement levels, high
105.10school student mobility, high school student attendance, and the size of each entering ninth
105.11grade class. The group of experts and stakeholders may examine other characteristics not
105.12part of the prediction model including the nine student categories identified under the
105.13federal 2001 No Child Left Behind Act, and two student gender categories of male and
105.14female, respectively. The commissioner annually must use the predicted level of entering
105.15students' performance to provide a context for interpreting graduating students' actual
105.16performance. The group convened under this section expires June 30, 2011.
105.17EFFECTIVE DATE.This section is effective the day following final enactment
105.18and applies to school report cards beginning July 1, 2011.

105.19    Sec. 62. IMPLEMENTING MEASURES FOR ASSESSING SCHOOL SAFETY
105.20AND STUDENTS' ENGAGEMENT AND CONNECTION AT SCHOOL .
105.21    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
105.22subdivision 3, paragraph (d), the commissioner of education, in consultation with
105.23interested stakeholders, including parents and teachers among other stakeholders,
105.24must convene a group of recognized and qualified experts on student engagement and
105.25connection and classroom teachers currently teaching in Minnesota schools to:
105.26    (1) identify highly reliable variables of student engagement and connection that
105.27may include student attendance, home support for learning, and student participation in
105.28out-of-school activities, among other variables; and
105.29    (2) determine how to report "safety" in order to comply with federal law.
105.30    (b) The commissioner must submit a written report and all the group's working
105.31papers to the education committees of the house of representatives and senate by February
105.3215, 2010, presenting the group's responses to paragraph (a), clauses (1) and (2). The
105.33commissioner must submit a second, related report to the education committees of the
105.34legislature by February 15, 2013, indicating the content and analysis of and the format
105.35for reporting the data collected in the 2010-2011 and 2011-2012 school years under
106.1Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d). The group convened
106.2under this section expires December 31, 2013.
106.3EFFECTIVE DATE.This section is effective the day following final enactment
106.4and applies to school report cards beginning July 1, 2013.

106.5    Sec. 63. EXAMINING THE CHARACTERISTICS AND IMPACT OF HIGH
106.6STAKES MATH AND SCIENCE TESTS IN THE CONTEXT OF AWARDING
106.7HIGH SCHOOL DIPLOMAS.
106.8(a) To carefully and responsibly determine the state policy of administering high
106.9stakes math and science tests in the context of awarding high school diplomas, the
106.10Independent Office of Educational Accountability under Minnesota Statutes, section
106.11120B.31, subdivision 3, must convene and facilitate an advisory group that includes
106.12measurement experts selected by the State Council on Measurement in Education,
106.13three regionally diverse school district research and evaluation directors selected by the
106.14Minnesota Assessment Group, one school superintendent selected by the Minnesota
106.15Association of School Administrators, one high school principal selected by the Minnesota
106.16Board of School Administrators, one University of Minnesota faculty member selected
106.17by the dean of the College of Education and Human Development, one licensed math
106.18teacher and one licensed science teacher selected by Education Minnesota, the director of
106.19evaluation and testing at the Minnesota Department of Education, two parents of currently
106.20enrolled high school students selected by the Minnesota Parent Teacher Association,
106.21one representative of the business community selected by the Minnesota Chamber of
106.22Commerce, one representative of the business community selected by the Minnesota
106.23Business Partnership, one representative of Minnesota's two-year postsecondary
106.24institutions selected by Minnesota State Colleges and Universities, one representative of
106.25Minnesota's four-year postsecondary institutions selected by the University of Minnesota,
106.26an interested member of the public, and mathematicians, scientists, and workforce
106.27development experts that the Office of Educational Accountability selects to consider and
106.28recommend how best to motivate students and improve students' academic achievement in
106.29the context of high stakes math and science exams required for high school graduation.
106.30The advisory group at least must evaluate and make recommendations on:
106.31(1) particular kinds of math and science exams that Minnesota might use as high
106.32stakes exams to award or deny students a high school diploma;
106.33(2) appropriate levels of high school math and science proficiency and the
106.34educational support to help students achieve those proficiency levels;
107.1(3) the relationship between math and science proficiency levels and state definitions
107.2of college and career readiness;
107.3(4) the interrelationship between requiring students to demonstrate math and science
107.4proficiency and college or career readiness, and awarding or denying students a high
107.5school diploma;
107.6(5) the interrelationship between high stakes testing and other coursework and
107.7credits required for graduation or college and career readiness; and
107.8(6) appropriate accommodations for students with individualized education plans
107.9and students with limited English proficiency in some circumstances.
107.10(b) The advisory group under paragraph (a) is not subject to Minnesota Statutes,
107.11section 15.059. The Office of Educational Accountability must present the advisory
107.12group's evaluation and recommendations under paragraph (a) to the education policy
107.13and finance committees of the legislature by February 15, 2010. The advisory group
107.14expires on June 1, 2010.
107.15EFFECTIVE DATE.This section is effective the day following final enactment.

107.16    Sec. 64. LEGISLATIVE REPORT ON DISTRICTS' USE OF AND NEED FOR
107.17INTEGRATION REVENUE.
107.18The commissioner must analyze the substance of school district integration plans
107.19under Minnesota Statutes, section 124D.86, subdivision 1b, to identify the elements of
107.20and trends in district strategies and programs, the amount of success districts achieved in
107.21realizing the specific goals contained in their plans, and the estimated funds districts need
107.22to fully implement those plans. The commissioner must submit a report on the substance
107.23of the analysis and any resulting recommendations to the K-12 education policy and
107.24finance committees of the legislature by February 1, 2011.
107.25EFFECTIVE DATE.This section is effective the day following final enactment.

107.26    Sec. 65. LABOR DAY SCHOOL START; 2009-2010 AND 2010-2011 SCHOOL
107.27YEARS.
107.28Notwithstanding Minnesota Statutes, section 120A.40, a school district may begin
107.29the school year on any day before Labor Day only for the 2009-2010 and 2010-2011
107.30school years.
107.31EFFECTIVE DATE.This section is effective the day following final enactment.

107.32    Sec. 66. APPROPRIATIONS.
108.1    Subdivision 1. Department of Education. The sums indicated in this section are
108.2appropriated from the general fund to the Department of Education for the fiscal years
108.3designated.
108.4    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
108.5Statutes, section 124D.11, subdivision 4:

108.6		$	33,512,000	.....	2010
108.7		$	44,030,000	.....	2011

108.8The 2010 appropriation includes $3,704,000 for 2009 and $29,808,000 for 2010.
108.9The 2011 appropriation includes $11,024,000 for 2010 and $33,006,000 for 2011.
108.10    Subd. 3. Charter school startup aid. For charter school startup cost aid under
108.11Minnesota Statutes, section 124D.11:

108.12		$	1,245,000	.....	2010
108.13		$	1,133,000	.....	2011

108.14The 2010 appropriation includes $202,000 for 2009 and $1,043,000 for 2010.
108.15The 2011 appropriation includes $385,000 for 2010 and $748,000 for 2011.
108.16    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
108.17124D.86, subdivision 5:

108.18		$	54,167,000	.....	2010
108.19		$	65,549,000	.....	2011

108.20The 2010 appropriation includes $6,110,000 for 2009 and $48,057,000 for 2010.
108.21The 2011 appropriation includes $17,774,000 for 2010 and $47,775,000 for 2011.
108.22    Subd. 5. Magnet school grants. For magnet school and program grants under
108.23Minnesota Statutes, section 124D.88:

108.24		$	750,000	.....	2010
108.25		$	750,000	.....	2011

108.26    Subd. 6. Interdistrict desegregation or integration transportation grants. For
108.27interdistrict desegregation or integration transportation grants under Minnesota Statutes,
108.28section 124D.87:

108.29		$	14,468,000	.....	2010
108.30		$	17,582,000	.....	2011

108.31    Subd. 7. Success for the future. For American Indian success for the future grants
108.32under Minnesota Statutes, section 124D.81:

108.33		$	1,774,000	.....	2010
108.34		$	2,137,000	.....	2011

108.35The 2010 appropriation includes $213,000 for 2009 and $1,561,000 for 2010.
109.1The 2011 appropriation includes $576,000 for 2010 and $1,561,000 for 2011.
109.2    Subd. 8. American Indian teacher preparation grants. For joint grants to assist
109.3American Indian people to become teachers under Minnesota Statutes, section 122A.63:

109.4		$	190,000	.....	2010
109.5		$	190,000	.....	2011

109.6    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
109.7Statutes, section 124D.83:

109.8		$	1,683,000	.....	2010
109.9		$	2,179,000	.....	2011

109.10The 2010 appropriation includes $191,000 for 2009 and $1,492,000 for 2010.
109.11The 2011 appropriation includes $551,000 for 2010 and $1,628,000 for 2011.
109.12    Subd. 10. Early childhood programs at tribal schools. For early childhood
109.13family education programs at tribal contract schools under Minnesota Statutes, section
109.14124D.83, subdivision 4:

109.15		$	68,000	.....	2010
109.16		$	68,000	.....	2011

109.17    Subd. 11. Statewide testing and reporting system. For the statewide testing and
109.18reporting system under Minnesota Statutes, section 120B.30:

109.19		$	15,150,000	.....	2010
109.20		$	15,150,000	.....	2011

109.21$1,150,000 each year is for the value-added index assessment model.
109.22Any balance in the first year does not cancel but is available in the second year.
109.23    Subd. 12. Examination fees; teacher training and support programs. (a) For
109.24students' advanced placement and international baccalaureate examination fees under
109.25Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
109.26for teachers and other interested educators under Minnesota Statutes, section 120B.13,
109.27subdivision 1:

109.28		$	4,500,000	.....	2010
109.29		$	4,500,000	.....	2011

109.30(b) The advanced placement program shall receive 75 percent of the appropriation
109.31each year and the international baccalaureate program shall receive 25 percent of the
109.32appropriation each year. The department, in consultation with representatives of the
109.33advanced placement and international baccalaureate programs selected by the Advanced
109.34Placement Advisory Council and IBMN, respectively, shall determine the amounts of
110.1the expenditures each year for examination fees and training and support programs for
110.2each program.
110.3(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
110.4$500,000 each year is for teachers to attend subject matter summer training programs
110.5and follow-up support workshops approved by the advanced placement or international
110.6baccalaureate programs. The commissioner shall determine the payment process and
110.7the amount of the subsidy.
110.8(d) The commissioner shall pay all examination fees for all students of low-income
110.9families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
110.10of available appropriations shall also pay examination fees for students sitting for an
110.11advanced placement examination, international baccalaureate examination, or both.
110.12Any balance in the first year does not cancel but is available in the second year.
110.13    Subd. 13. Concurrent enrollment programs. For concurrent enrollment programs
110.14under Minnesota Statutes, section 120B.132, and concurrent enrollment teacher training
110.15under Minnesota Statutes, section 120B.13, subdivision 1:

110.16		$	2,000,000	.....	2010
110.17		$	2,000,000	.....	2011

110.18Any balance in the first year does not cancel but is available in the second year.
110.19    Subd. 14. Collaborative urban educator. For the collaborative urban educator
110.20grant program:

110.21		$	528,000	.....	2010
110.22		$	528,000	.....	2011

110.23Any balance in the first year does not cancel but is available in the second year.
110.24    Subd. 15. Youth works program. For funding youth works programs under
110.25Minnesota Statutes, sections 124D.37 to 124D.45:

110.26		$	900,000	.....	2010
110.27		$	900,000	.....	2011

110.28A grantee organization may provide health and child care coverage to the dependents
110.29of each participant enrolled in a full-time youth works program to the extent such coverage
110.30is not otherwise available.
110.31    Subd. 16. Student organizations. For student organizations:

110.32		$	725,000	.....	2010
110.33		$	725,000	.....	2011

110.34$40,000 each year is for student organizations serving health occupations.
110.35$38,000 each year is for student organizations serving service occupations.
111.1$88,000 each year is for student organizations serving trade and industry occupations.
111.2$84,000 each year is for student organizations serving business occupations.
111.3$131,000 each year is for student organizations serving agriculture occupations.
111.4$125,000 each year is for student organizations serving family and consumer science
111.5occupations.
111.6$95,000 each year is for student organizations serving marketing occupations.
111.7Any balance in the first year does not cancel but is available in the second year.
111.8    Subd. 17. Education Planning and Assessment System (EPAS) program. For
111.9the Educational Planning and Assessment System (EPAS) program under Minnesota
111.10Statutes, section 120B.128:

111.11		$	829,000	.....	2010
111.12		$	829,000	.....	2011

111.13Any balance in the first year does not cancel but is available in the second year.
111.14    Subd. 18. Early childhood literacy programs. For early childhood literacy
111.15programs under Minnesota Statutes, section 119A.50, subdivision 3:

111.16		$	1,000,000	.....	2010
111.17		$	1,000,000	.....	2011

111.18$1,000,000 each year is for leveraging federal and private funding to support
111.19AmeriCorps members serving in the Minnesota Reading Corps program established by
111.20Serve Minnesota, including costs associated with the training and teaching of early literacy
111.21skills to children age three to grade 3 and the evaluation of the impact of the program
111.22under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
111.23Any balance in the first year does not cancel but is available in the second year.

111.24    Sec. 67. REPEALER.
111.25Minnesota Statutes 2008, sections 120B.362; 120B.39; 122A.628; 122A.75; and
111.26124D.091, are repealed.


111.29    Section 1. Minnesota Statutes 2008, section 121A.41, subdivision 7, is amended to
111.30read:
111.31    Subd. 7. Pupil. (a) "Pupil" means any student:
111.32(1) without a disability under 21 years of age old; or
111.33(2) with a disability until September 1 after the child with a disability becomes 22
111.34years of age under 21 years old who has not received a regular high school diploma or
112.1for a child with a disability who becomes 21 years old during the school year but has not
112.2received a regular high school diploma, until the end of that school year;
112.3(3) and who remains eligible to attend a public elementary or secondary school.
112.4(b) A "student with a disability" or a "pupil with a disability" has the same meaning
112.5as a "child with a disability" under section 125A.02.

112.6    Sec. 2. Minnesota Statutes 2008, section 121A.41, subdivision 10, is amended to read:
112.7    Subd. 10. Suspension. "Suspension" means an action by the school administration,
112.8under rules promulgated by the school board, prohibiting a pupil from attending school
112.9for a period of no more than ten school days. If a suspension is longer than five days,
112.10the suspending administrator must provide the superintendent with a reason for the
112.11longer suspension. This definition does not apply to dismissal from school for one school
112.12day or less, except as provided in federal law for a student with a disability. Each
112.13suspension action may include a readmission plan. The readmission plan shall include,
112.14where appropriate, a provision for implementing alternative educational services upon
112.15readmission and may not be used to extend the current suspension. Consistent with section
112.16125A.091, subdivision 5 , the readmission plan must not obligate a parent to provide a
112.17sympathomimetic medication for the parent's child as a condition of readmission. The
112.18school administration may not impose consecutive suspensions against the same pupil
112.19for the same course of conduct, or incident of misconduct, except where the pupil will
112.20create an immediate and substantial danger to self or to surrounding persons or property,
112.21or where the district is in the process of initiating an expulsion, in which case the school
112.22administration may extend the suspension to a total of 15 school days. In the case
112.23of a student with a disability, the student's individual education plan team must meet
112.24immediately but not more than ten school days after the date on which the decision to
112.25remove the student from the student's current education placement is made. The individual
112.26education plan team and other qualified personnel shall at that meeting: conduct a review
112.27of the relationship between the child's disability and the behavior subject to disciplinary
112.28action; and determine the appropriateness of the child's education plan.
112.29The requirements of the individual education plan team meeting apply when:
112.30(1) the parent requests a meeting;
112.31(2) the student is removed from the student's current placement for five or more
112.32consecutive days; or
112.33(3) the student's total days of removal from the student's placement during the
112.34school year exceed ten cumulative days in a school year. The school administration shall
113.1implement alternative educational services when the suspension exceeds five days. A
113.2separate administrative conference is required for each period of suspension.

113.3    Sec. 3. Minnesota Statutes 2008, section 121A.43, is amended to read:
113.4121A.43 EXCLUSION AND EXPULSION OF PUPILS WITH A DISABILITY.
113.5(a) Consistent with federal law governing days of removal and section 121A.46,
113.6school personnel may suspend a child with a disability. When a child with a disability
113.7has been suspended for more than five consecutive school days or ten cumulative school
113.8days in the same school year, and that suspension does not involve a recommendation
113.9for expulsion or exclusion or other change of placement under federal law, relevant
113.10members of the child's individualized education program team, including at least one of
113.11the child's teachers, shall meet and determine the extent the child needs services in order
113.12to continue to participate in the general education curriculum, although in another setting,
113.13and to progress toward meeting the goals in the child's individualized education program.
113.14That meeting must occur as soon as possible, but no more than ten days after the sixth
113.15consecutive day of suspension or the tenth cumulative day of suspension has elapsed.
113.16(b) A dismissal for one school day or less is a day of suspension if the child with a
113.17disability does not receive regular or special education instruction during that dismissal
113.18period. The notice requirements under section 121A.46 do not apply to a dismissal
113.19of one day or less.
113.20(c) A child with a disability shall be provided alternative educational services to the
113.21extent a suspension exceeds five consecutive school days.
113.22(d) Before initiating an expulsion or exclusion under sections 121A.40 to 121A.56,
113.23the district, relevant members of the child's individualized education program team,
113.24and the child's parent shall, consistent with federal law, determine whether the child's
113.25behavior was caused by or had a direct and substantial relationship to the child's disability
113.26and whether the child's conduct was a direct result of a failure to implement the child's
113.27individualized education program. When a pupil child with a disability who has an
113.28individual individualized education plan program is excluded or expelled under sections
113.29121A.40 to 121A.56 for misbehavior that is not a manifestation of the pupil's child's
113.30disability, the district shall continue to provide special education and related services after
113.31a period of suspension, if suspension is imposed. The district shall initiate a review of
113.32the pupil's individual education plan and conduct a review of the relationship between
113.33the pupil's disability and the behavior subject to disciplinary action and determine
113.34the appropriateness of the pupil's education plan before commencing an expulsion or
113.35exclusion during the exclusion or expulsion.

114.1    Sec. 4. Minnesota Statutes 2008, section 122A.31, subdivision 4, is amended to read:
114.2    Subd. 4. Reimbursement. (a) For purposes of revenue under section 125A.78
114.3125A.76, the Department of Education must only reimburse school districts for the
114.4services of those interpreters/transliterators who satisfy the standards of competency
114.5under this section.
114.6(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services
114.7of interpreters with a nonrenewable provisional certificate, interpreters/transliterators
114.8employed to mentor the provisional certified interpreters, and persons for whom a
114.9time-limited extension has been granted under subdivision 1, paragraph (d), or subdivision
114.102, paragraph (c).

114.11    Sec. 5. Minnesota Statutes 2008, section 125A.02, is amended to read:
114.12125A.02 CHILD WITH A DISABILITY DEFINED.
114.13    Subdivision 1. Child with a disability. Every child who has "Child with a
114.14disability" means a child identified under federal and state special education law as
114.15having a hearing impairment, blindness, visual disability, speech or language impairment,
114.16physical disability, other health impairment, mental disability, emotional/behavioral
114.17disorder, specific learning disability, autism, traumatic brain injury, multiple disabilities, or
114.18deaf/blind disability and who needs special instruction and education and related services,
114.19as determined by the standards rules of the commissioner, is a child with a disability. A
114.20licensed physician, an advanced practice nurse, or a licensed psychologist is qualified
114.21to make a diagnosis and determination of attention deficit disorder or attention deficit
114.22hyperactivity disorder for purposes of identifying a child with a disability.
114.23    Subd. 1a. Children ages three through seven experiencing developmental
114.24delays. In addition, every child under age three, and at local district discretion from age
114.25three to age seven, who needs special instruction and services, as determined by the
114.26standards rules of the commissioner, because the child has a substantial delay or has
114.27an identifiable physical or mental condition known to hinder normal development is
114.28a child with a disability.
114.29    Subd. 2. Not a child with a disability. A child with a short-term or temporary
114.30physical or emotional illness or disability, as determined by the standards rules of the
114.31commissioner, is not a child with a disability.

114.32    Sec. 6. [125A.031] GENERAL SCHOOL DISTRICT OBLIGATIONS TO
114.33CHILDREN WITH DISABILITIES.
115.1(a) Except as specifically provided in other law, the following requirements
115.2governing school district obligations to children with disabilities apply.
115.3(b) A resident school district must identify, locate, and evaluate every child with
115.4a disability who is in need of special education and related services, including a child
115.5from birth to age 3.
115.6(c) A resident school district must make available a free appropriate public education
115.7to:
115.8(1) a child with a disability under 21 years old who has not received a regular high
115.9school diploma; and
115.10(2) for the duration of the school year, a child with a disability who becomes 21
115.11years old during that school year but has not received a regular high school diploma.
115.12(d) The resident school district must ensure that a child with a disability who is
115.13enrolled in a nonpublic school or facility receives special education and related services,
115.14consistent with the child's individualized education program, at no cost to the child's parent
115.15if the district places the child in the nonpublic school or facility to meet the requirements
115.16of this section or applicable federal law.
115.17(e) Consistent with the number of children with disabilities who are enrolled by their
115.18parents in a nonpublic school or facility located within a district, the district in which the
115.19nonpublic school or facility is located must ensure that those children have an opportunity
115.20to participate in special education and related services and that the amount the district
115.21spends to provide such services must be at least equal to the proportionate amount of
115.22federal funds made available under this chapter.
115.23EFFECTIVE DATE.This section is effective the day following final enactment.

115.24    Sec. 7. Minnesota Statutes 2008, section 125A.07, is amended to read:
115.25125A.07 RULES OF COMMISSIONER RULEMAKING.
115.26(a) As defined in Consistent with this paragraph section, the commissioner must
115.27shall adopt new rules and amend existing rules relative to qualifications of essential
115.28personnel, courses of study, methods of instruction, pupil eligibility, size of classes, rooms,
115.29equipment, supervision, parent consultation, and other necessary rules for instruction of
115.30children with a disability. These rules must provide standards and procedures appropriate
115.31for the implementation of and within the limitations of sections 125A.08 and 125A.091.
115.32These rules must also provide standards for the discipline, control, management, and
115.33protection of children with a disability. The commissioner must not adopt rules for pupils
115.34served primarily in the regular classroom establishing either case loads or the maximum
115.35number of pupils that may be assigned to special education teachers. The commissioner, in
116.1consultation with the Departments of Health and Human Services, must adopt permanent
116.2rules for instruction and services for children under age five and their families. These
116.3rules are binding on state and local education, health, and human services agencies. The
116.4commissioner must adopt rules to determine eligibility for special education services. The
116.5rules must include procedures and standards by which to grant variances for experimental
116.6eligibility criteria. The commissioner must, according to section 14.05, subdivision 4,
116.7notify a district applying for a variance from the rules within 45 calendar days of receiving
116.8the request whether the request for the variance has been granted or denied. If a request is
116.9denied, the commissioner must specify the program standards used to evaluate the request
116.10and the reasons for denying the request related to children with disabilities only under
116.11specific authority and consistent with the requirements of chapter 14 and paragraph (c).
116.12(b) As provided in this paragraph, the state's regulatory scheme should support
116.13schools by assuring that all state special education rules adopted by the commissioner
116.14result in one or more of the following outcomes:
116.15(1) increased time available to teachers and, where appropriate, to support staff
116.16including school nurses for educating students through direct and indirect instruction;
116.17(2) consistent and uniform access to effective education programs for students with
116.18disabilities throughout the state;
116.19(3) reduced inequalities and conflict, appropriate due process hearing procedures
116.20and reduced court actions related to the delivery of special education instruction and
116.21services for students with disabilities;
116.22(4) clear expectations for service providers and for students with disabilities;
116.23(5) increased accountability for all individuals and agencies that provide instruction
116.24and other services to students with disabilities;
116.25(6) greater focus for the state and local resources dedicated to educating students
116.26with disabilities; and
116.27(7) clearer standards for evaluating the effectiveness of education and support
116.28services for students with disabilities.
116.29(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule
116.30related to children with disabilities if such action is specifically required by federal law.

116.31    Sec. 8. Minnesota Statutes 2008, section 125A.08, is amended to read:
116.32125A.08 SCHOOL DISTRICT OBLIGATIONS INDIVIDUALIZED
116.33EDUCATION PROGRAMS.
116.34(a) At the beginning of each school year, each school district shall have in effect, for
116.35each child with a disability, an individualized education program.
117.1(b) As defined in this section, every district must ensure the following:
117.2(1) all students with disabilities are provided the special instruction and services
117.3which are appropriate to their needs. Where the individual education plan team has
117.4determined appropriate goals and objectives based on the student's needs, including the
117.5extent to which the student can be included in the least restrictive environment, and Where
117.6there are essentially equivalent and effective instruction, related services, or assistive
117.7technology devices available to meet the student's needs, cost to the district may be among
117.8the factors considered by the team in choosing how to provide the appropriate services,
117.9instruction, or devices that are to be made part of the student's individual education plan.
117.10The individual education plan team shall consider and may authorize services covered
117.11by medical assistance according to section 256B.0625, subdivision 26. The student's
117.12needs and the special education instruction and services to be provided must be agreed
117.13upon through the development of an individual education plan. The plan must address
117.14the student's need to develop skills to live and work as independently as possible within
117.15the community. The individual education plan team must consider positive behavioral
117.16interventions, strategies, and supports that address behavior for children with attention
117.17deficit disorder or attention deficit hyperactivity disorder. By During grade 9 or age 14,
117.18the plan must address the student's needs for transition from secondary services to
117.19postsecondary education and training, employment, community participation, recreation,
117.20and leisure and home living. In developing the plan, districts must inform parents of the
117.21full range of transitional goals and related services that should be considered. The plan
117.22must include a statement of the needed transition services, including a statement of the
117.23interagency responsibilities or linkages or both before secondary services are concluded;
117.24(2) children with a disability under age five and their families are provided special
117.25instruction and services appropriate to the child's level of functioning and needs;
117.26(3) children with a disability and their parents or guardians are guaranteed procedural
117.27safeguards and the right to participate in decisions involving identification, assessment
117.28including assistive technology assessment, and educational placement of children with a
117.29disability;
117.30(4) eligibility and needs of children with a disability are determined by an initial
117.31assessment or reassessment, which may be completed using existing data under United
117.32States Code, title 20, section 33, et seq.;
117.33(5) to the maximum extent appropriate, children with a disability, including those
117.34in public or private institutions or other care facilities, are educated with children who
117.35are not disabled, and that special classes, separate schooling, or other removal of children
117.36with a disability from the regular educational environment occurs only when and to the
118.1extent that the nature or severity of the disability is such that education in regular classes
118.2with the use of supplementary services cannot be achieved satisfactorily;
118.3(6) in accordance with recognized professional standards, testing and evaluation
118.4materials, and procedures used for the purposes of classification and placement of children
118.5with a disability are selected and administered so as not to be racially or culturally
118.6discriminatory; and
118.7(7) the rights of the child are protected when the parents or guardians are not known
118.8or not available, or the child is a ward of the state.
118.9(b) (c) For paraprofessionals employed to work in programs for students with
118.10disabilities, the school board in each district shall ensure that:
118.11(1) before or immediately upon employment, each paraprofessional develops
118.12sufficient knowledge and skills in emergency procedures, building orientation, roles and
118.13responsibilities, confidentiality, vulnerability, and reportability, among other things, to
118.14begin meeting the needs of the students with whom the paraprofessional works;
118.15(2) annual training opportunities are available to enable the paraprofessional to
118.16continue to further develop the knowledge and skills that are specific to the students with
118.17whom the paraprofessional works, including understanding disabilities, following lesson
118.18plans, and implementing follow-up instructional procedures and activities; and
118.19(3) a districtwide process obligates each paraprofessional to work under the ongoing
118.20direction of a licensed teacher and, where appropriate and possible, the supervision of a
118.21school nurse.

118.22    Sec. 9. Minnesota Statutes 2008, section 125A.091, is amended to read:
118.23125A.091 ALTERNATIVE DISPUTE RESOLUTION AND DUE PROCESS
118.24HEARINGS.
118.25    Subdivision 1. District obligation. A school district must use the procedures in
118.26federal law and state law and rule to reach decisions about the identification, evaluation,
118.27educational placement, manifestation determination, interim alternative educational
118.28placement, or the provision of a free appropriate public education to a child with a
118.29disability.
118.30    Subd. 2. Prior written notice. A parent must receive prior written notice
118.31a reasonable time before the district proposes or refuses to initiate or change the
118.32identification, evaluation, educational placement, or the provision of a free appropriate
118.33public education to a child with a disability.
118.34    Subd. 3. Content of notice. The notice under subdivision 2 must:
118.35(1) describe the action the district proposes or refuses;
119.1(2) explain why the district proposes or refuses to take the action;
119.2(3) describe any other option the district considered and the reason why it rejected
119.3the option;
119.4(4) describe each evaluation procedure, test, record, or report the district used as a
119.5basis for the proposed or refused action;
119.6(5) describe any other factor affecting the proposal or refusal of the district to take
119.7the action;
119.8(6) state that the parent of a child with a disability is protected by procedural
119.9safeguards and, if this notice is not an initial referral for evaluation, how a parent can get a
119.10description of the procedural safeguards; and
119.11(7) identify where a parent can get help in understanding this law.
119.12    Subd. 3a. Additional requirements for prior written notice. In addition to federal
119.13law requirements, a prior written notice shall:
119.14(1) inform the parent that except for the initial placement of a child in special
119.15education, the school district will proceed with its proposal for the child's placement or
119.16for providing special education services unless the child's parent notifies the district of
119.17an objection within 14 days of when the district sends the prior written notice to the
119.18parent; and
119.19(2) state that a parent who objects to a proposal or refusal in the prior written notice
119.20may request a conciliation conference under subdivision 7 or another alternative dispute
119.21resolution procedure under subdivision 8 or 9.
119.22    Subd. 4. Understandable notice. (a) The written notice under subdivision 2 must
119.23be understandable to the general public and available in the parent's native language or by
119.24another communication form, unless it is clearly not feasible to do so.
119.25(b) If the parent's native language or other communication form is not written,
119.26the district must take steps to ensure that:
119.27(1) the notice is translated orally or by other means to the parent in the parent's
119.28native language or other communication form;
119.29(2) the parent understands the notice; and
119.30(3) written evidence indicates the requirements in subdivision 2 are met.
119.31    Subd. 5. Initial action; parent consent. (a) The district must not proceed with the
119.32initial evaluation of a child, the initial placement of a child in a special education program,
119.33or the initial provision of special education services for a child without the prior written
119.34consent of the child's parent. A district may not override the written refusal of a parent to
119.35consent to an initial evaluation or reevaluation.
120.1(b) A parent, after consulting with health care, education, or other professional
120.2providers, may agree or disagree to provide the parent's child with sympathomimetic
120.3medications unless section 144.344 applies.
120.4    Subd. 6. Dispute resolution processes; generally. Parties are encouraged to
120.5resolve disputes over the identification, evaluation, educational placement, manifestation
120.6determination, interim alternative educational placement, or the provision of a free
120.7appropriate public education to a child with a disability through conciliation, mediation,
120.8facilitated team meetings, or other alternative process. All dispute resolution options are
120.9voluntary on the part of the parent and must not be used to deny or delay the right to a
120.10due process hearing. All dispute resolution processes under this section are provided
120.11at no cost to the parent.
120.12    Subd. 7. Conciliation conference. A parent must have an opportunity to meet
120.13with appropriate district staff in at least one conciliation conference if the parent objects
120.14to any proposal of which the parent receives notice under subdivision 2 3a. If the parent
120.15refuses district efforts to conciliate the dispute, the conciliation requirement is satisfied.
120.16Following a conciliation conference A district must hold a conciliation conference within
120.17ten calendar days from the date the district receives a parent's objection to a proposal or
120.18refusal in the prior written notice. Except as provided in this section, all discussions held
120.19during a conciliation conference are confidential and are not admissible in a due process
120.20hearing. Within five school days after the final conciliation conference, the district must
120.21prepare and provide to the parent a conciliation conference memorandum that describes
120.22the district's final proposed offer of service. This memorandum is admissible in evidence
120.23in any subsequent proceeding.
120.24    Subd. 8. Voluntary dispute resolution options. In addition to offering at least
120.25one conciliation conference, a district must inform a parent of other dispute resolution
120.26processes, including at least mediation and facilitated team meetings. The fact that
120.27an alternative dispute resolution process was used is admissible in evidence at any
120.28subsequent proceeding. State-provided mediators and team meeting facilitators shall not
120.29be subpoenaed to testify at a due process hearing or civil action under federal special
120.30education law nor are any records of mediators or state-provided team meeting facilitators
120.31accessible to the parties.
120.32    Subd. 9. Mediation. Mediation is a dispute resolution process that involves a
120.33neutral party provided by the state to assist a parent and a district in resolving disputes
120.34over the identification, evaluation, educational placement, manifestation determination,
120.35interim alternative educational placement, or the provision of a free appropriate public
120.36education to a child with a disability. A mediation process is available as an informal
121.1alternative to a due process hearing but must not be used to deny or postpone the
121.2opportunity of a parent or district to obtain a due process hearing. Mediation is voluntary
121.3for all parties. All mediation discussions are confidential and inadmissible in evidence
121.4in any subsequent proceeding, unless the:
121.5(1) parties expressly agree otherwise;
121.6(2) evidence is otherwise available; or
121.7(3) evidence is offered to prove bias or prejudice of a witness.
121.8    Subd. 10. Mediated agreements. Mediated agreements are not admissible unless
121.9the parties agree otherwise or a party to the agreement believes the agreement is not being
121.10implemented, in which case the aggrieved party may enter the agreement into evidence at
121.11a due process hearing. The parties may request another mediation to resolve a dispute over
121.12implementing the mediated agreement. After a due process hearing is requested, a party
121.13may request mediation and the commissioner must provide a mediator who conducts a
121.14mediation session no later than the third business day after the mediation request is made
121.15to the commissioner. If the parties resolve all or a portion of the dispute, or agree to use
121.16another procedure to resolve the dispute, the mediator shall ensure that the resolution
121.17or agreement is in writing and signed by the parties and each party is given a copy of
121.18the document. The written resolution or agreement shall state that all discussions that
121.19occurred during mediation are confidential and may not be used as evidence in any hearing
121.20or civil proceeding. The resolution or agreement is legally binding upon the parties and is
121.21enforceable in the state or federal district court. A party may request another mediation to
121.22resolve a dispute over implementing the mediated agreement.
121.23    Subd. 11. Facilitated team meeting. A facilitated team meeting is an IEP, IFSP,
121.24or IIIP team meeting led by an impartial state-provided facilitator to promote effective
121.25communication and assist a team in developing an individualized education plan.
121.26    Subd. 12. Impartial due process hearing. (a) A parent or a district is entitled to
121.27an impartial due process hearing conducted by the state when a dispute arises over the
121.28identification, evaluation, educational placement, manifestation determination, interim
121.29alternative educational placement, or the provision of a free appropriate public education
121.30to a child with a disability. The hearing must be held in the district responsible for
121.31ensuring that a free appropriate public education is provided according to state and federal
121.32law. The proceedings must be recorded and preserved, at state expense, pending ultimate
121.33disposition of the action. The parent and the district shall receive, at state expense, a copy
121.34of the hearing transcript or recording and the hearing officer's findings of fact, conclusion
121.35of law, and decisions.
122.1(b) The due process hearing must be conducted according to the rules of the
122.2commissioner and federal law.
122.3    Subd. 13. Hearing officer qualifications. The commissioner must appoint an
122.4individual who is qualified under this subdivision to serve as a hearing officer. The
122.5commissioner shall maintain a list of qualified hearing officers who are not employees of
122.6or otherwise under contract with the department or the school district except when under
122.7contract with the department as a hearing officer, and who do not have a personal or
122.8professional interest that conflicts with their objectivity when serving as hearing officers
122.9in hearings under this section. The list shall include a statement of the qualifications of
122.10each person listed. A hearing officer must know and understand state and federal special
122.11education laws, rules, and regulations, and legal interpretations by federal and state courts.
122.12A hearing officer also must have the knowledge and ability to conduct hearings and render
122.13and write decisions according to appropriate, standard legal practice. Upon receipt of a
122.14written request for a hearing, the commissioner shall appoint a hearing officer from the
122.15list. The hearing officer must:
122.16(1) be knowledgeable and impartial;
122.17(2) have no personal interest in or specific involvement with the student who is a
122.18party to the hearing;
122.19(3) not have been employed as an administrator by the district that is a party to
122.20the hearing;
122.21(4) not have been involved in selecting the district administrator who is a party
122.22to the hearing;
122.23(5) have no personal, economic, or professional interest in the outcome of the
122.24hearing other than properly administering federal and state laws, rules, and policies;
122.25(6) have no substantial involvement in developing state or local policies or
122.26procedures challenged in the hearing;
122.27(7) not be a current employee or board member of a Minnesota public school district,
122.28education district, intermediate unit or regional education agency, or the department if
122.29the department is the service provider; and
122.30(8) not be a current employee or board member of a disability advocacy organization
122.31or group.
122.32    Subd. 14. Request for hearing. A request for a due process hearing must:
122.33(1) be in writing;
122.34(2) describe the nature of the dispute about providing special education services to
122.35the student including facts relating to the dispute; and
122.36(3) state, to the extent known, the relief sought.
123.1Any school district administrator receiving a request for a due process hearing
123.2must immediately forward the request to the commissioner. Within two business days of
123.3receiving a request for a due process hearing, the commissioner must appoint a hearing
123.4officer. The commissioner must not deny a request for hearing because the request
123.5is incomplete. A party may disqualify a hearing officer only by affirmatively showing
123.6prejudice or bias to the commissioner or to the chief administrative law judge if the hearing
123.7officer is an administrative law judge. If a party affirmatively shows prejudice against a
123.8hearing officer, the commissioner must assign another hearing officer to hear the matter. (a)
123.9A parent or a school district may file a written request for a due process hearing regarding
123.10a proposal or refusal to initiate or change that child's evaluation, individualized education
123.11program, or educational placement, or to provide a free appropriate public education.
123.12(b) The parent shall include in the hearing request the name of the child, the address
123.13of the child's residence, the name of the school the child attends, a description of the
123.14child's problem relating to the proposed or refused initiation or change, including facts
123.15relating to the problem, and a proposed resolution of the problem to the extent known
123.16and available to the parents at the time.
123.17(c) A parent or a school district may file a written request for a hearing under United
123.18States Code, title 20, section 1415, paragraph (k).
123.19(d) A parent or school district filing a request for a hearing under this subdivision
123.20must provide the request to the other party and a copy of the request to the department.
123.21Upon receiving a request for a hearing, the department shall give to the child's parent a
123.22copy of the procedural safeguards notice available to a parent under federal regulations.
123.23(e)(1) If the parent of a child with a disability files a written request for a hearing,
123.24and the school district has not previously sent a written notice to the parent under
123.25subdivision 3a, regarding the subject matter of the hearing request, the school district
123.26shall, within ten days of receiving the hearing request, send to the child's parent a written
123.27explanation of why the school district proposed or refused to take the action raised in the
123.28hearing request, a description of other options that the individualized education program
123.29team considered and the reason why those options were rejected, a description of each
123.30evaluation procedure, assessment, record, or report that the school district used as the
123.31basis for the proposed or refused action, and a description of the factors that are relevant
123.32to the school district's proposal or refusal. A response by a school district under this
123.33subdivision does not preclude the school district from asserting that the parent's request
123.34for a hearing is insufficient under clause (2).
123.35(2) A hearing may not occur until the party requesting the hearing files a request that
123.36meets the requirements of paragraph (b). The request under paragraph (b) is considered
124.1sufficient unless the party receiving the request notifies the hearing officer and the other
124.2party in writing within 15 days of receiving the request that the receiving party believes
124.3the request does not meet the requirements of paragraph (b). Within five days of receiving
124.4a notice under this subdivision, the hearing officer shall determine whether the request
124.5meets the requirements under paragraph (b) and notify the parties.
124.6(f) Except as provided in paragraph (e), clause (1), the party receiving a request for a
124.7hearing shall send to the party requesting the hearing a written response that addresses the
124.8issues raised in the hearing request within ten days of receiving the request.
124.9    Subd. 15. Prehearing conference. A prehearing conference must be held within
124.10five business days of the date the commissioner appoints the hearing officer. The hearing
124.11officer must initiate the prehearing conference which may be conducted in person, at a
124.12location within the district, or by telephone. The hearing officer must create a written
124.13verbatim record of the prehearing conference which is available to either party upon
124.14request. At the prehearing conference, the hearing officer must:
124.15(1) identify the questions that must be answered to resolve the dispute and eliminate
124.16claims and complaints that are without merit;
124.17(2) set a scheduling order for the hearing and additional prehearing activities;
124.18(3) determine if the hearing can be disposed of without an evidentiary hearing and, if
124.19so, establish the schedule and procedure for doing so; and
124.20(4) establish the management, control, and location of the hearing to ensure its fair,
124.21efficient, and effective disposition.
124.22    Subd. 16. Burden of proof. The burden of proof at a due process hearing is on the
124.23district to demonstrate, by a preponderance of the evidence, that it is complying with the
124.24law and offered or provided a free appropriate public education to the child in the least
124.25restrictive environment. If the district has not offered or provided a free appropriate public
124.26education in the least restrictive environment and the parent wants the district to pay for a
124.27private placement, the burden of proof is on the parent to demonstrate, by a preponderance
124.28of the evidence, that the private placement is appropriate party seeking relief.
124.29    Subd. 17. Admissible evidence. The hearing officer may admit all evidence
124.30that possesses probative value, including hearsay, if it is the type of evidence on which
124.31reasonable, prudent persons are accustomed to rely in conducting their serious affairs. The
124.32hearing officer must give effect to the rules of privilege recognized by law and exclude
124.33evidence that is incompetent, irrelevant, immaterial, or unduly repetitious.
124.34    Subd. 18. Hearing officer authority. (a) A hearing officer must limit an impartial
124.35due process hearing to the time sufficient for each party to present its case.
125.1(b) A hearing officer must establish and maintain control and manage the hearing.
125.2This authority includes, but is not limited to:
125.3(1) requiring attorneys representing parties at the hearing, after notice and an
125.4opportunity to be heard, to pay court reporting and hearing officer costs, or fines payable
125.5to the state, for failing to: (i) obey scheduling or prehearing orders, (ii) appear, (iii) be
125.6prepared, or (iv) participate in the hearing process in good faith;
125.7(2) administering oaths and affirmations;
125.8(3) issuing subpoenas;
125.9(4) determining the responsible and providing districts and joining those districts, if
125.10not already notified, in the proceedings;
125.11(5) making decisions involving identification, evaluation, educational placement,
125.12manifestation determination, interim alternative educational placement, or the provision of
125.13a free appropriate public education to a child with a disability; and
125.14(6) ordering an independent educational evaluation of a child at district expense; and
125.15(7) extending the hearing decision timeline for good cause shown.
125.16(c) Good cause includes, but is not limited to, the time required for mediation or
125.17other settlement discussions, independent educational evaluation, complexity and volume
125.18of issues, or finding or changing counsel.
125.19    Subd. 19. Expedited due process hearings. Consistent with federal law, a parent
125.20has the right to or a school district may file a written request for an expedited due process
125.21hearing when there is a dispute over a manifestation determination or a proposed or actual
125.22placement in an interim alternative educational setting. A district has the right to an
125.23expedited due process hearing when proposing or seeking to maintain placement in an
125.24interim alternative educational setting. A hearing officer must hold an expedited due
125.25process hearing within 20 school days of the date the expedited due process request is
125.26filed and must issue a decision within ten calendar school days of after the request for a
125.27hearing. A hearing officer may extend by up to five additional calendar days the time for
125.28issuing a decision in an expedited due process hearing. All policies in this section apply
125.29to expedited due process hearings to the extent they do not conflict with federal law. A
125.30resolution meeting must occur within seven days of receiving the request for an expedited
125.31due process hearing unless the parent and the school district agree in writing either to
125.32waive the resolution meeting or use the mediation process. The expedited due process
125.33hearing may proceed unless the matter has been resolved to the satisfaction of both parties
125.34within 15 days of receiving the expedited due process hearing request.
125.35    Subd. 20. Hearing officer's decision; time period. (a) The hearing officer must
125.36issue a decision within 45 calendar days of the date on which the commissioner receives
126.1the request for a due process hearing ensure that not later than 45 days after the 30-day
126.2period or the adjusted time periods under federal regulations expire, the hearing officer
126.3reaches a final decision in the due process hearing and transmits a copy of the decision to
126.4each party. A hearing officer, at the request of either party, may grant specific extensions
126.5of time beyond the 45-day period under subdivision 18. The hearing officer must conduct
126.6the oral arguments in a hearing at a time and place that is reasonably convenient to the
126.7parents and child involved. A hearing officer is encouraged to accelerate the time line to
126.830 days for a child under the age of three whose needs change rapidly and who requires
126.9quick resolution of a dispute. A hearing officer may not extend the time beyond the 45-day
126.10period unless requested by either party for good cause shown on the record. Extensions
126.11of time must not exceed a total of 30 calendar days unless both parties and the hearing
126.12officer agree or time is needed to complete an independent educational evaluation. Good
126.13cause includes, but is not limited to, the time required for mediation or other settlement
126.14discussions, independent educational evaluation, complexity and volume of issues, or
126.15finding or changing counsel.
126.16(b) The hearing officer's decision must:
126.17(1) be in writing;
126.18(2) state the controlling and material facts upon which the decision is made in order
126.19to apprise the reader of the basis and reason for the decision; and
126.20(3) be based on local standards, state statute, the rules of the commissioner, and
126.21federal law.
126.22(b) Once the hearing officer has issued a final decision, the hearing officer lacks
126.23authority to amend the decision except for clerical or mathematical errors.
126.24(c) Nothing in this subdivision precludes a hearing officer from ordering a school
126.25district to comply with federal procedural safeguards under the federal Individuals with
126.26Disabilities Education Act.
126.27    Subd. 21. Compensatory educational services. The hearing officer may require
126.28the resident or responsible district to provide compensatory educational services to the
126.29child if the hearing officer finds that the district has not offered or made available to
126.30the child a free appropriate public education in the least restrictive environment and the
126.31child suffered a loss of educational benefit. Such services take the form of direct and
126.32indirect special education and related services designed to address any loss of educational
126.33benefit that may have occurred. The hearing officer's finding must be based on a present
126.34determination of whether the child has suffered a loss of educational benefit.
126.35    Subd. 22. Child's educational placement during due process hearing. (a) Until a
126.36due process hearing under this section is completed or the district and the parent agree
127.1otherwise, the child must remain in the child's current educational placement and must
127.2not be denied initial admission to school.
127.3(b) Until an expedited due process hearing challenging an interim alternative
127.4educational placement is completed, the child must remain in the interim alternative
127.5educational setting until the decision of the hearing officer or the expiration of the 45 days
127.6permitted for an interim alternative educational setting, whichever occurs first, unless the
127.7parent and district agree otherwise.
127.8    Subd. 23. Implementation of hearing officer order. (a) That portion of a hearing
127.9officer's decision granting relief requested by the parent must be implemented upon
127.10issuance.
127.11(b) Except as provided under paragraph (a) or the district and parent agree otherwise,
127.12following a hearing officer's decision granting relief requested by the district, the child
127.13must remain in the current educational placement until the time to request judicial review
127.14under subdivision 24 expires or, if judicial review is requested, at the time the Minnesota
127.15Court of Appeals or the federal district court issues its decision, whichever is later.
127.16    Subd. 24. Review of hearing officer decisions. The parent or district may seek
127.17review of the hearing officer's decision in the Minnesota Court of Appeals or in the federal
127.18district court, consistent with federal law. A party must appeal to the Minnesota Court
127.19of Appeals within 60 days of receiving the hearing officer's decision and must appeal to
127.20federal district court within 90 days of receiving the hearing officer's decision.
127.21    Subd. 25. Enforcement of orders. The commissioner must monitor final hearing
127.22officer decisions and ensure enforcement of hearing officer orders decisions.
127.23    Subd. 26. Hearing officer and person conducting alternative dispute resolution
127.24are state employees. A hearing officer or person conducting alternative dispute resolution
127.25under this section is an employee of the state under section 3.732 for purposes of section
127.263.736 only.
127.27    Subd. 27. Hearing officer training. A hearing officer must participate in training
127.28and follow procedures established offered by the commissioner.
127.29    Subd. 28. District liability. A district is not liable for harmless technical violations
127.30of this section or rules implementing this section federal or state laws, rules, or regulations
127.31governing special education if the school district can demonstrate on a case-by-case basis
127.32that the violations did not harm a student's educational progress or the parent's right to
127.33notice, participation, or due process. This subdivision is applicable to due process hearings
127.34and special education complaints filed with the department.

128.1    Sec. 10. [125A.094] RESTRICTIVE PROCEDURES FOR CHILDREN WITH
128.2DISABILITIES.
128.3The use of restrictive procedures for children with disabilities is governed by
128.4sections 125A.0941 and 125A.0942.
128.5EFFECTIVE DATE.This section is effective August 1, 2011.

128.6    Sec. 11. [125A.0941] DEFINITIONS.
128.7(a) The following terms have the meanings given them.
128.8(b) "Emergency" means a situation where immediate intervention is needed to protect
128.9a child or other individual from physical injury or to prevent serious property damage.
128.10(c) "Physical holding" means physical intervention intended to hold a child immobile
128.11or limit a child's movement and where body contact is the only source of physical restraint.
128.12The term physical holding does not mean physical contact that:
128.13(1) helps a child respond or complete a task;
128.14(2) assists a child without restricting the child's movement;
128.15(3) is needed to administer an authorized health-related service or procedure; or
128.16(4) is needed to physically escort a child when the child does not resist or the child's
128.17resistance is minimal.
128.18(d) "Positive behavioral interventions and supports" means interventions and
128.19strategies to improve the school environment and teach children the skills to behave
128.20appropriately.
128.21(e) "Restrictive procedures" means the use of physical holding or seclusion in an
128.22emergency.
128.23(f) "Seclusion" means confining a child alone in a room from which egress is barred.
128.24Removing a child from an activity to a location where the child cannot participate in or
128.25observe the activity is not seclusion.
128.26EFFECTIVE DATE.This section is effective August 1, 2011.

128.27    Sec. 12. [125A.0942] STANDARDS FOR RESTRICTIVE PROCEDURES.
128.28    Subdivision 1. Restrictive procedures plan. Schools that intend to use restrictive
128.29procedures shall maintain and make publicly accessible a restrictive procedures plan for
128.30children that includes at least the following:
128.31(1) the list of restrictive procedures the school intends to use;
128.32(2) how the school will monitor and review the use of restrictive procedures,
128.33including conducting post-use debriefings and convening an oversight committee; and
129.1(3) a written description and documentation of the training staff completed under
129.2subdivision 5.
129.3    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
129.4by a licensed special education teacher, school social worker, school psychologist,
129.5behavior analyst certified by the National Behavior Analyst Certification Board, a person
129.6with a master's degree in behavior analysis, other licensed education professional,
129.7paraprofessional under section 120B.363, or mental health professional under section
129.8245.4871, subdivision 27, who has completed the training program under subdivision 5.
129.9(b) A school shall make reasonable efforts to notify the parent on the same day a
129.10restrictive procedure is used on the child, or if the school is unable to provide same-day
129.11notice, notice is sent within two days by written or electronic means or as otherwise
129.12indicated by the child's parent under paragraph (d).
129.13(c) When restrictive procedures are used twice in 30 days or when a pattern emerges
129.14and restrictive procedures are not included in a child's individualized education program or
129.15behavior intervention plan, the district must hold a meeting of the individualized education
129.16plan team, conduct or review a functional behavioral analysis, review data, consider
129.17developing additional or revised positive behavioral interventions and supports, consider
129.18actions to reduce the use of restrictive procedures, and modify the individualized education
129.19plan or behavior intervention plan as appropriate. At the meeting, the team must review
129.20any known medical or psychological limitations that contraindicate the use of a restrictive
129.21procedure, consider whether to prohibit that restrictive procedure, and document any
129.22prohibition in the individualized education program or behavior intervention plan.
129.23(d) An individualized education plan team may plan for using restrictive procedures
129.24and may include these procedures in a child's individualized education program or
129.25behavior intervention plan; however, the restrictive procedures may be used only in
129.26response to behavior that constitutes an emergency, consistent with this section. The
129.27individualized education program or behavior intervention plan shall indicate how the
129.28parent wants to be notified when a restrictive procedure is used.
129.29    Subd. 3. Physical holding or seclusion. Physical holding or seclusion may be used
129.30only in an emergency. A school that uses physical holding or seclusion shall meet the
129.31following requirements:
129.32(1) the physical holding or seclusion must be the least intrusive intervention that
129.33effectively responds to the emergency;
129.34(2) physical holding or seclusion must end when the threat of harm ends and the
129.35staff determines that the child can safely return to the classroom or activity;
130.1(3) staff must directly observe the child while physical holding or seclusion is being
130.2used;
130.3(4) each time physical holding or seclusion is used, the staff person who implements
130.4or oversees the physical holding or seclusion shall document, as soon as possible after the
130.5incident concludes, the following information:
130.6(i) a description of the incident that led to the physical holding or seclusion;
130.7(ii) why a less restrictive measure failed or was determined by staff to be
130.8inappropriate or impractical;
130.9(iii) the time the physical holding or seclusion began and the time the child was
130.10released; and
130.11(iv) a brief record of the child's behavioral and physical status;
130.12(5) the room used for seclusion must:
130.13(i) be at least six feet by five feet;
130.14(ii) be well lit, well ventilated, adequately heated, and clean;
130.15(iii) have a window that allows staff to directly observe a child in seclusion;
130.16(iv) have tamperproof fixtures, electrical switches located immediately outside the
130.17door, and secure ceilings;
130.18(v) have doors that open out and are unlocked, locked with keyless locks that
130.19have immediate release mechanisms, or locked with locks that have immediate release
130.20mechanisms connected with a fire and emergency system; and
130.21(vi) not contain objects that a child may use to injure the child or others; and
130.22(6) before using a room for seclusion, a school must:
130.23(i) receive written notice from local authorities that the room and the locking
130.24mechanisms comply with applicable building, fire, and safety codes; and
130.25(ii) register the room with the commissioner, who may view that room.
130.26    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
130.27(1) engaging in conduct prohibited under section 121A.58;
130.28(2) requiring a child to assume and maintain a specified physical position, activity,
130.29or posture that induces physical pain;
130.30(3) totally or partially restricting a child's senses as punishment;
130.31(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
130.32substance, or spray as punishment;
130.33(5) denying or restricting a child's access to equipment and devices such as walkers,
130.34wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
130.35except when temporarily removing the equipment or device is needed to prevent injury
131.1to the child or others or serious damage to the equipment or device, in which case the
131.2equipment or device shall be returned to the child as soon as possible;
131.3(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
131.4physical abuse under section 626.556;
131.5(7) withholding regularly scheduled meals or water;
131.6(8) denying access to bathroom facilities; and
131.7(9) physical holding that restricts or impairs a child's ability to breathe.
131.8    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1,
131.9staff who use restrictive procedures shall complete training in the following skills and
131.10knowledge areas:
131.11(1) positive behavioral interventions;
131.12(2) communicative intent of behaviors;
131.13(3) relationship building;
131.14(4) alternatives to restrictive procedures, including techniques to identify events and
131.15environmental factors that may escalate behavior;
131.16(5) de-escalation methods;
131.17(6) standards for using restrictive procedures;
131.18(7) obtaining emergency medical assistance;
131.19(8) the physiological and psychological impact of physical holding and seclusion;
131.20(9) monitoring and responding to a child's physical signs of distress when physical
131.21holding is being used; and
131.22(10) recognizing the symptoms of and interventions that may cause positional
131.23asphyxia when physical holding is used.
131.24(b) The commissioner, after consulting with the commissioner of human services,
131.25must develop and maintain a list of training programs that satisfy the requirements of
131.26paragraph (a). The district shall maintain records of staff who have been trained and the
131.27organization or professional that conducted the training. The district may collaborate with
131.28children's community mental health providers to coordinate trainings.
131.29    Subd. 6. Behavior supports. School districts are encouraged to establish effective
131.30schoolwide systems of positive behavior interventions and supports. Nothing in this
131.31section or section 125A.0941 precludes the use of reasonable force under sections
131.32121A.582; 609.06, subdivision 1; and 609.379.
131.33EFFECTIVE DATE.This section is effective August 1, 2011.

131.34    Sec. 13. Minnesota Statutes 2008, section 125A.15, is amended to read:
131.35125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
132.1The responsibility for special instruction and services for a child with a disability
132.2temporarily placed in another district for care and treatment shall be determined in the
132.3following manner:
132.4(a) The district of residence of a child shall be the district in which the child's parent
132.5resides, if living, or the child's guardian, or the district designated by the commissioner if
132.6neither parent nor guardian is living within the state.
132.7(b) If a district other than the resident district places a pupil for care and treatment,
132.8the district placing the pupil must notify and give the resident district an opportunity to
132.9participate in the placement decision. When an immediate emergency placement of a
132.10pupil is necessary and time constraints foreclose a resident district from participating in
132.11the emergency placement decision, the district in which the pupil is temporarily placed
132.12must notify the resident district of the emergency placement within 15 days. The resident
132.13district has up to five business days after receiving notice of the emergency placement
132.14to request an opportunity to participate in the placement decision, which the placing
132.15district must then provide.
132.16(c) When a child is temporarily placed for care and treatment in a day program
132.17located in another district and the child continues to live within the district of residence
132.18during the care and treatment, the district of residence is responsible for providing
132.19transportation to and from the care and treatment facility program and an appropriate
132.20educational program for the child. The resident district may establish reasonable
132.21restrictions on transportation, except if a Minnesota court or agency orders the child
132.22placed at a day care and treatment program and the resident district receives a copy of
132.23the order, then the resident district must provide transportation to and from the program
132.24unless the court or agency orders otherwise. Transportation shall only be provided by the
132.25resident district during regular operating hours of the resident district. The resident district
132.26may provide the educational program at a school within the district of residence, at the
132.27child's residence, or in the district in which the day treatment center is located by paying
132.28tuition to that district.
132.29(c) (d) When a child is temporarily placed in a residential program for care and
132.30treatment, the nonresident district in which the child is placed is responsible for providing
132.31an appropriate educational program for the child and necessary transportation while the
132.32child is attending the educational program; and must bill the district of the child's residence
132.33for the actual cost of providing the program, as outlined in section 125A.11, except as
132.34provided in paragraph (d) (e). However, the board, lodging, and treatment costs incurred
132.35in behalf of a child with a disability placed outside of the school district of residence by
132.36the commissioner of human services or the commissioner of corrections or their agents,
133.1for reasons other than providing for the child's special educational needs must not become
133.2the responsibility of either the district providing the instruction or the district of the child's
133.3residence. For the purposes of this section, the state correctional facilities operated on a
133.4fee-for-service basis are considered to be residential programs for care and treatment.
133.5(d) (e) A privately owned and operated residential facility may enter into a contract
133.6to obtain appropriate educational programs for special education children and services
133.7with a joint powers entity. The entity with which the private facility contracts for special
133.8education services shall be the district responsible for providing students placed in that
133.9facility an appropriate educational program in place of the district in which the facility is
133.10located. If a privately owned and operated residential facility does not enter into a contract
133.11under this paragraph, then paragraph (c) (d) applies.
133.12(e) (f) The district of residence shall pay tuition and other program costs, not
133.13including transportation costs, to the district providing the instruction and services.
133.14The district of residence may claim general education aid for the child as provided by
133.15law. Transportation costs must be paid by the district responsible for providing the
133.16transportation and the state must pay transportation aid to that district.
133.17EFFECTIVE DATE.This section is effective the day following final enactment.

133.18    Sec. 14. Minnesota Statutes 2008, section 125A.28, is amended to read:
133.19125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
133.20An Interagency Coordinating Council of at least 17, but not more than 25 members
133.21is established, in compliance with Public Law 108-446, section 641. The members
133.22must be appointed by the governor. Council members must elect the council chair. The
133.23representative of the commissioner may not serve as the chair. The council must be
133.24composed of at least five parents, including persons of color, of children with disabilities
133.25under age 12, including at least three parents of a child with a disability under age seven,
133.26five representatives of public or private providers of services for children with disabilities
133.27under age five, including a special education director, county social service director,
133.28local Head Start director, and a community health services or public health nursing
133.29administrator, one member of the senate, one member of the house of representatives, one
133.30representative of teacher preparation programs in early childhood-special education or
133.31other preparation programs in early childhood intervention, at least one representative of
133.32advocacy organizations for children with disabilities under age five, one physician who
133.33cares for young children with special health care needs, one representative each from the
133.34commissioners of commerce, education, health, human services, a representative from the
133.35state agency responsible for child care, foster care, mental health, homeless coordinator
134.1of education of homeless children and youth, and a representative from Indian health
134.2services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council.
134.3The council must meet at least quarterly.
134.4The council must address methods of implementing the state policy of developing
134.5and implementing comprehensive, coordinated, multidisciplinary interagency programs of
134.6early intervention services for children with disabilities and their families.
134.7The duties of the council include recommending policies to ensure a comprehensive
134.8and coordinated system of all state and local agency services for children under age five
134.9with disabilities and their families. The policies must address how to incorporate each
134.10agency's services into a unified state and local system of multidisciplinary assessment
134.11practices, individual intervention plans, comprehensive systems to find children in need of
134.12services, methods to improve public awareness, and assistance in determining the role of
134.13interagency early intervention committees.
134.14On the date that Minnesota Part C Annual Performance Report is submitted to the
134.15federal Office of Special Education, the council must recommend to the governor and the
134.16commissioners of education, health, human services, commerce, and employment and
134.17economic development policies for a comprehensive and coordinated system.
134.18Notwithstanding any other law to the contrary, the State Interagency Coordinating
134.19Council expires on June 30, 2009 2014.

134.20    Sec. 15. Minnesota Statutes 2008, section 125A.51, is amended to read:
134.21125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
134.22EDUCATION AND TRANSPORTATION.
134.23The responsibility for providing instruction and transportation for a pupil without a
134.24disability who has a short-term or temporary physical or emotional illness or disability, as
134.25determined by the standards of the commissioner, and who is temporarily placed for care
134.26and treatment for that illness or disability, must be determined as provided in this section.
134.27(a) The school district of residence of the pupil is the district in which the pupil's
134.28parent or guardian resides.
134.29(b) When parental rights have been terminated by court order, the legal residence
134.30of a child placed in a residential or foster facility for care and treatment is the district in
134.31which the child resides.
134.32(c) Before the placement of a pupil for care and treatment, the district of residence
134.33must be notified and provided an opportunity to participate in the placement decision.
134.34When an immediate emergency placement is necessary and time does not permit
134.35resident district participation in the placement decision, the district in which the pupil is
135.1temporarily placed, if different from the district of residence, must notify the district
135.2of residence of the emergency placement within 15 days of the placement. When a
135.3nonresident district makes an emergency placement without first consulting with the
135.4resident district, the resident district has up to five business days after receiving notice
135.5of the emergency placement to request an opportunity to participate in the placement
135.6decision, which the placing district must then provide.
135.7(d) When a pupil without a disability is temporarily placed for care and treatment
135.8in a day program and the pupil continues to live within the district of residence during
135.9the care and treatment, the district of residence must provide instruction and necessary
135.10transportation to and from the care and treatment facility program for the pupil. The
135.11resident district may establish reasonable restrictions on transportation, except if a
135.12Minnesota court or agency orders the child placed at a day care and treatment program
135.13and the resident district receives a copy of the order, then the resident district must provide
135.14transportation to and from the program unless the court or agency orders otherwise.
135.15Transportation shall only be provided by the resident district during regular operating
135.16hours of the resident district. The resident district may provide the instruction at a school
135.17within the district of residence, at the pupil's residence, or in the case of a placement
135.18outside of the resident district, in the district in which the day treatment program is located
135.19by paying tuition to that district. The district of placement may contract with a facility to
135.20provide instruction by teachers licensed by the state Board of Teaching.
135.21(e) When a pupil without a disability is temporarily placed in a residential program
135.22for care and treatment, the district in which the pupil is placed must provide instruction
135.23for the pupil and necessary transportation while the pupil is receiving instruction, and in
135.24the case of a placement outside of the district of residence, the nonresident district must
135.25bill the district of residence for the actual cost of providing the instruction for the regular
135.26school year and for summer school, excluding transportation costs.
135.27(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or
135.28private homeless shelter, then the district that enrolls the pupil under section 127A.47,
135.29subdivision 2 , shall provide the transportation, unless the district that enrolls the pupil
135.30and the district in which the pupil is temporarily placed agree that the district in which
135.31the pupil is temporarily placed shall provide transportation. When a pupil without a
135.32disability is temporarily placed in a residential program outside the district of residence,
135.33the administrator of the court placing the pupil must send timely written notice of the
135.34placement to the district of residence. The district of placement may contract with a
135.35residential facility to provide instruction by teachers licensed by the state Board of
136.1Teaching. For purposes of this section, the state correctional facilities operated on a
136.2fee-for-service basis are considered to be residential programs for care and treatment.
136.3(g) The district of residence must include the pupil in its residence count of pupil
136.4units and pay tuition as provided in section 123A.488 to the district providing the
136.5instruction. Transportation costs must be paid by the district providing the transportation
136.6and the state must pay transportation aid to that district. For purposes of computing state
136.7transportation aid, pupils governed by this subdivision must be included in the disabled
136.8transportation category if the pupils cannot be transported on a regular school bus route
136.9without special accommodations.
136.10EFFECTIVE DATE.This section is effective the day following final enactment.

136.11    Sec. 16. Minnesota Statutes 2008, section 125A.56, is amended to read:
136.12125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT
136.13REFERRAL.
136.14    Subdivision 1. Requirement. (a) Before a pupil is referred for a special education
136.15evaluation, the district must conduct and document at least two scientific, research-based
136.16 instructional strategies, alternatives, or interventions using a system of scientific,
136.17research-based instruction and intervention in academics or behavior, based on the pupil's
136.18needs, while the pupil is in the regular classroom. The pupil's teacher must and document
136.19the results. A special education evaluation team may waive this requirement when it
136.20determines the pupil's need for the evaluation is urgent. A district may not use this section
136.21may not be used to deny a pupil's right to a special education evaluation.
136.22    (b) A school district shall use alternative intervention services, including the
136.23assurance of mastery program under section 124D.66, the supplemental early education
136.24program under section 124D.081, or an early intervening services program under
136.25subdivision 2 to serve at-risk pupils who demonstrate a need for alternative instructional
136.26strategies, alternatives, or interventions.
136.27    Subd. 1a. Definitions. (a) For purposes of this section, the terms defined in this
136.28subdivision have the meaning given them.
136.29(b) "Benchmark assessments" means screening that is administered at least three
136.30times per year to pupils in kindergarten through grade 8 who are at-risk or in need of early
136.31intervening services and may be administered to pupils in grades 9 through 12.
136.32(c) "Early intervening services" means providing additional academic and behavioral
136.33support in a general education environment to pupils who have not been identified as
136.34needing special education or related services.
137.1(d) "General outcome measures" means valid and reliable measures based on
137.2monitoring of pupils' progress, including both general screening of all pupils and more
137.3frequent progress monitoring of pupil responses to specific interventions.
137.4(e) "Incidental benefit" means the benefit received by a nondisabled pupil (i) who
137.5receives academic or behavioral instruction provided by a special education teacher to
137.6a small group of primarily pupils with disabilities to implement their individualized
137.7education programs, (ii) who needs the support to succeed in the general education
137.8environment, and (iii) for whom no special education staff are added to meet that
137.9nondisabled pupil's needs.
137.10(f) "Progress monitoring" means a standardized, scientifically based practice using
137.11ongoing assessments that compare expected and actual rates of learning to measure pupils'
137.12progress towards meeting a particular goal.
137.13(g) "Scientific, research-based instructional strategies, alternatives, and
137.14interventions" means instruction and intervention derived from systematically applying
137.15rigorous and objective procedures to obtain valid and reliable knowledge about educational
137.16activities and programs.
137.17    Subd. 2. Early intervening services program. (a) A district may meet the
137.18requirement under subdivision 1 by establishing An early intervening services program
137.19that includes:
137.20    (1) a system of valid and reliable screening and general outcome measures aligned
137.21to state academic standards that is administered at least three times per year to pupils
137.22in kindergarten through grade 8 who need additional academic or behavioral support
137.23to succeed in the general education environment. The school must provide interim
137.24assessments that measure pupils' performance three times per year and implement that use
137.25valid and reliable benchmark assessments;
137.26(2) progress monitoring appropriate to the pupil. For purposes of this section,
137.27"progress monitoring" means the frequent and continuous measurement of a pupil's
137.28performance that includes these three interim assessments and other pupil assessments
137.29during the school year. A school, at its discretion, may allow pupils in grades 9 through
137.3012 to participate in interim assessments data that document the effectiveness of specific
137.31interventions for each pupil and compare a pupil's performance against general outcome
137.32measures;
137.33    (2) (3) a system of scientific, research-based instruction and intervention
137.34instructional strategies, alternatives, and interventions; and
137.35    (3) (4) an organizational plan that allows teachers, paraprofessionals, and volunteers
137.36funded through various sources to deliver instruction, work collaboratively as a grade-level
138.1team or use another configuration across grades and settings to deliver instruction. The
138.2team must be trained, and receive training in scientific, research-based instruction and
138.3intervention. Teachers and paraprofessionals at a site operating under this paragraph
138.4must work collaboratively with those pupils who need additional academic or behavioral
138.5support to succeed in a general education environment.
138.6    Subd. 3. Incidental benefit. (b) (a) As an intervention under paragraph (a)
138.7subdivision 2, clause (2) (3), staff generating special education aid under section 125A.76
138.8may provide small group instruction to pupils who need additional academic or behavioral
138.9support to succeed in the general education environment. Small group instruction that
138.10includes pupils with a disability may be provided in the general education environment if:
138.11(1) the needs of the pupils with a disability are met, consistent with their individual
138.12education plans, and;
138.13(2) all pupils in the group receive the same level of instruction and make the same
138.14progress in the instruction or intervention; and
138.15(3) during each 60-day period that a nondisabled pupil participates in small group
138.16instruction under this paragraph, the pupil's progress monitoring data are examined to
138.17determine whether the pupil is making progress and, if the pupil is not making progress,
138.18the pupil's intervention strategies must be changed or the pupil must be referred for
138.19a special education evaluation.
138.20Teachers and paraprofessionals must ensure that the needs of pupils with a disability
138.21participating in small group instruction under this paragraph remain the focus of the
138.22instruction. Expenditures attributable to the time special education staff spends providing
138.23instruction to nondisabled pupils in this circumstance is eligible for special education aid
138.24under section 125A.76 as an incidental benefit if:
138.25    (1) the group consists primarily of disabled pupils;
138.26    (2) no special education staff are added to meet nondisabled pupils' needs; and
138.27    (3) the primary purpose of the instruction is to implement the individual education
138.28plans of pupils with a disability in this group.
138.29    (b) Expenditures attributable to the time special education staff spends providing
138.30small group instruction to nondisabled pupils that affords more than an incidental benefit
138.31to such pupils is not eligible for special education aid under section 125A.76, except
138.32that such expenditures may be included in the alternative delivery initial aid adjustment
138.33under section 125A.78 if the district has an approved program under section 125A.50.
138.34During each 60-day period that a nondisabled pupil participates in small group instruction
138.35under this paragraph, the pupil's progress monitoring data must be examined to determine
138.36whether the pupil is making progress and, if the pupil is not making progress, the pupil's
139.1intervention strategies must be changed or the pupil must be referred for a special
139.2education evaluation.

139.3    Sec. 17. Minnesota Statutes 2008, section 125A.57, subdivision 2, is amended to read:
139.4    Subd. 2. Assistive technology device. "Assistive technology device" means any
139.5item, piece of equipment, software, or product system, whether acquired commercially
139.6off the shelf, modified, or customized, that is used to increase, maintain, or improve
139.7functional capabilities of children with disabilities a child with a disability. The term does
139.8not include a surgically implanted medical device or a replacement of that device.
139.9EFFECTIVE DATE.This section is effective the day following final enactment.

139.10    Sec. 18. Minnesota Statutes 2008, section 125A.63, subdivision 2, is amended to read:
139.11    Subd. 2. Programs. The resource centers must offer summer institutes and like
139.12programs or other training programs throughout the state for deaf or hard of hearing, blind
139.13or visually impaired, and multiply disabled pupils. The resource centers must also offer
139.14workshops for teachers, and leadership development for teachers.
139.15A program offered through the resource centers must promote and develop education
139.16programs offered by school districts or other organizations. The program must assist
139.17school districts or other organizations to develop innovative programs.

139.18    Sec. 19. Minnesota Statutes 2008, section 125A.63, subdivision 4, is amended to read:
139.19    Subd. 4. Advisory committees. The commissioner shall establish an
139.20advisory committee for each resource center. The advisory committees shall develop
139.21recommendations regarding the resource centers and submit an annual report to the
139.22commissioner on the form and in the manner prescribed by the commissioner. The
139.23advisory committee for the Resource Center for the Deaf and Hard of Hearing shall meet
139.24at least four times a year and submit an annual report to the commissioner, the legislature,
139.25and the Commission of Deaf, DeafBlind and Hard of Hearing Minnesotans.
139.26The recommendations must include:
139.27(1) aggregate data-based education outcomes over time for deaf and hard-of-hearing
139.28children, consistent with state academic standards and assessments under chapter 120B;
139.29and
139.30(2) a data-based plan that includes evidence-based best practices known to improve
139.31the educational outcomes of deaf and hard-of-hearing children.

139.32    Sec. 20. Minnesota Statutes 2008, section 125A.76, subdivision 1, is amended to read:
140.1    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
140.2subdivision apply.
140.3    (a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
140.4For the purposes of computing basic revenue pursuant to this section, each child with a
140.5disability shall be counted as prescribed in section 126C.05, subdivision 1.
140.6    (b) "Essential personnel" means teachers, cultural liaisons, related services, and
140.7support services staff providing direct services to students. Essential personnel may also
140.8include special education paraprofessionals or clericals providing support to teachers and
140.9students by preparing paperwork and making arrangements related to special education
140.10compliance requirements, including parent meetings and individual education plans.
140.11Essential personnel does not include administrators and supervisors.
140.12    (c) "Average daily membership" has the meaning given it in section 126C.05.
140.13    (d) "Program growth factor" means 1.046 for fiscal year 2012 and later.

140.14    Sec. 21. APPROPRIATIONS.
140.15    Subdivision 1. Department of Education. The sums indicated in this section are
140.16appropriated from the general fund to the Department of Education for the fiscal years
140.17designated.
140.18    Subd. 2. Special education; regular. For special education aid under Minnesota
140.19Statutes, section 125A.75:

140.20		$	609,003,000	.....	2010
140.21		$	772,845,000	.....	2011

140.22The 2010 appropriation includes $71,947,000 for 2009 and $537,056,000 for 2010.
140.23The 2011 appropriation includes $198,637,000 for 2010 and $574,208,000 for 2011.
140.24    Subd. 3. Special education; excess costs. For excess cost aid under Minnesota
140.25Statutes, section 125A.79, subdivision 7:

140.26		$	96,926,000	.....	2010
140.27		$	110,871,000	.....	2011

140.28The 2010 appropriation includes $37,046,000 for 2009 and $59,880,000 for 2010.
140.29The 2011 appropriation includes $50,967,000 for 2010 and $59,904,000 for 2011.
140.30    Subd. 4. Aid for children with disabilities. For aid under Minnesota Statutes,
140.31section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
140.32within the district boundaries for whom no district of residence can be determined:

140.33		$	1,717,000	.....	2010
140.34		$	1,895,000	.....	2011

141.1If the appropriation for either year is insufficient, the appropriation for the other
141.2year is available.
141.3    Subd. 5. Travel for home-based services. For aid for teacher travel for home-based
141.4services under Minnesota Statutes, section 125A.75, subdivision 1:

141.5		$	214,000	.....	2010
141.6		$	278,000	.....	2011

141.7The 2010 appropriation includes $24,000 for 2009 and $190,000 for 2010.
141.8The 2011 appropriation includes $70,000 for 2010 and $208,000 for 2011.
141.9    Subd. 6. Court-placed special education revenue. For reimbursing serving
141.10school districts for unreimbursed eligible expenditures attributable to children placed in
141.11the serving school district by court action under Minnesota Statutes, section 125A.79,
141.12subdivision 4:

141.13		$	76,000	.....	2010
141.14		$	78,000	.....	2011

141.15    Subd. 7. Special education out-of-state tuition. For special education out-of-state
141.16tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

141.17		$	250,000	.....	2010
141.18		$	250,000	.....	2011

141.19    Sec. 22. REPEALER.
141.20(a) Minnesota Statutes 2008, sections 125A.03; 125A.05; and 125A.18, are repealed.
141.21(b) Minnesota Statutes 2008, sections 121A.66; and 121A.67, subdivision 1, are
141.22repealed effective July 1, 2011.
141.23(c) Minnesota Rules, parts 3525.0210, subparts 5, 6, 9, 13, 17, 29, 30, 34, 43, 46,
141.24and 47; 3525.0400; 3525.1100, subpart 2, item F; 3525.2445; 3525.2900, subpart 5; and
141.253525.4220, are repealed effective July 1, 2011.


141.28    Section 1. Minnesota Statutes 2008, section 123B.02, subdivision 21, is amended to
141.29read:
141.30    Subd. 21. Wind energy conversion system. The board, or more than one board
141.31acting jointly under the authority granted by section 471.59, may construct, acquire,
141.32own in whole or in part, operate, and sell and retain and spend the payment received
141.33from selling energy from a wind energy conversion system, as defined in section
141.34216C.06, subdivision 19 . The An individual school board's share of the installed
142.1capacity of the wind energy conversion systems authorized by this subdivision must not
142.2exceed 3.3 megawatts of nameplate capacity, provided that if more than one board is
142.3acting jointly, each board may have a separate share of no more than 3.3 megawatts of
142.4nameplate capacity. A board owning, operating, or selling energy from a wind energy
142.5conversion system must integrate information about wind energy conversion systems in its
142.6educational programming. The board, or more than one board acting jointly under the
142.7authority granted by section 471.59, may be a limited partner in a partnership, a member
142.8of a limited liability company, or a shareholder in a corporation, established for the sole
142.9purpose of constructing, acquiring, owning in whole or in part, financing, or operating a
142.10wind energy conversion system for the benefit of the district or districts in accordance
142.11with this section. A board individually, or acting jointly, or an entity of which a board is a
142.12limited partner, member, or shareholder, may not sell, transmit, or distribute the electrical
142.13energy at retail or provide for end use of the electrical energy at an off-site facility of the
142.14board or entity. Nothing in this subdivision modifies the exclusive service territories or
142.15exclusive right to serve as provided in sections 216B.37 to 216B.43.
142.16EFFECTIVE DATE.This section is effective the day following final enactment.

142.17    Sec. 2. Minnesota Statutes 2008, section 123B.57, subdivision 1, is amended to read:
142.18    Subdivision 1. Health and safety program. (a) To receive health and safety
142.19revenue for any fiscal year a district must submit to the commissioner an application for
142.20aid and levy by the date determined by the commissioner. The application may be for
142.21hazardous substance removal, fire and life safety code repairs, labor and industry regulated
142.22facility and equipment violations, and health, safety, and environmental management,
142.23including indoor air quality management. The application must include a health and safety
142.24program adopted by the school district board. The program must include the estimated
142.25cost, per building, of the program by fiscal year. Upon approval through the adoption of
142.26a resolution by each of an intermediate district's member school district boards and the
142.27approval of the Department of Education, a school district may include its proportionate
142.28share of the costs of health and safety projects for an intermediate district in its application.
142.29(b) Health and safety projects with an estimated cost of $500,000 or more per site,
142.30approved after February 1, 2003, are not eligible for health and safety revenue. Health
142.31and safety projects with an estimated cost of $500,000 or more per site, approved after
142.32February 1, 2003, that meet all other requirements for health and safety funding, are
142.33eligible for alternative facilities bonding and levy revenue according to section 123B.59.
142.34A school board shall not separate portions of a single project into components to qualify
143.1for health and safety revenue, and shall not combine unrelated projects into a single project
143.2to qualify for alternative facilities bonding and levy revenue.
143.3EFFECTIVE DATE.This section is effective July 1, 2009.

143.4    Sec. 3. Minnesota Statutes 2008, section 123B.59, subdivision 2, is amended to read:
143.5    Subd. 2. Facility plan. (a) A district qualifying under subdivision 1, paragraph
143.6(a), must have a ten-year facility plan approved by the commissioner that includes an
143.7inventory of projects and costs that would be eligible for:
143.8(1) health and safety revenue, without restriction as to project size;
143.9(2) disabled access levy; and
143.10(3) deferred capital expenditures and maintenance projects necessary to prevent
143.11further erosion of facilities.
143.12(b) A district qualifying under subdivision 1, paragraph (b), must have a five-year
143.13plan approved by the commissioner that includes an inventory of projects and costs for
143.14health and safety projects with an estimated cost of $500,000 or more per site that would
143.15qualify for health and safety revenue except for the project size limitation in section
143.16123B.57, subdivision 1 , paragraph (b).
143.17(c) The school district must:
143.18(1) annually update the plans;
143.19(2) biennially submit a facility maintenance plan; and
143.20(3) indicate whether the district will issue bonds to finance the plan or levy for
143.21the costs.
143.22EFFECTIVE DATE.This section is effective July 1, 2009.

143.23    Sec. 4. Minnesota Statutes 2008, section 123B.59, subdivision 3, is amended to read:
143.24    Subd. 3. Bond authorization. (a) A school district may issue general obligation
143.25bonds under this section to finance facilities plans approved by its board and the
143.26commissioner. Chapter 475, except sections 475.58 and 475.59, must be complied with.
143.27The district may levy under subdivision 5 for the debt service revenue. The authority to
143.28issue bonds under this section is in addition to any bonding authority authorized by this
143.29chapter, or other law. The amount of bonding authority authorized under this section must
143.30be disregarded in calculating the bonding or net debt limits of this chapter, or any other
143.31law other than section 475.53, subdivision 4.
143.32(b) At least 20 days before the earliest of solicitation of bids, the issuance of bonds,
143.33or the final certification of levies under subdivision 5, the district must publish notice
144.1of the intended projects, the amount of the bond issue, and the total amount of district
144.2indebtedness, and the commissioner's review and comment, if applicable.
144.3EFFECTIVE DATE.This section is effective July 1, 2009.

144.4    Sec. 5. Minnesota Statutes 2008, section 123B.59, subdivision 3a, is amended to read:
144.5    Subd. 3a. Levy authorization. (a) A school district may levy under this section to
144.6finance the portion of facilities plans approved by its board and the commissioner that are
144.7not financed through bond issues according to subdivision 3.
144.8(b) At least 20 days before a final district certification of levies under subdivision
144.95, the district must publish notice of the intended projects, including the total estimated
144.10project cost, and the commissioner's review and comment, if applicable.
144.11EFFECTIVE DATE.This section is effective July 1, 2009.

144.12    Sec. 6. Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read:
144.13    Subdivision 1. Commissioner approval. (a) In determining whether to give a
144.14school facility a positive, negative, or unfavorable review and comment, the commissioner
144.15must evaluate the proposals for facilities using the information provided under section
144.16123B.71, subdivision 9 .
144.17    (b) In the case of a proposal for a new school, the local school board retains the
144.18authority to determine the minimum acreage needed to accommodate the school and
144.19related facilities. The commissioner may evaluate the proposals but must not issue a
144.20negative or unfavorable review and comment under this section for a school facility solely
144.21based on too little acreage of the proposed school site.
144.22    (c) In the case of a proposal to renovate an existing school, the local school board
144.23retains the authority to determine whether to renovate an existing school or to build a new
144.24school regardless of the acreage of the current school site or the cost of the renovation
144.25relative to the cost of building a new school. The commissioner's evaluation of whether
144.26to replace a facility must not be solely based upon the ratio of renovation costs to
144.27replacement costs.
144.28EFFECTIVE DATE.This section is effective for review and comments issued
144.29after July 1, 2009.

144.30    Sec. 7. Minnesota Statutes 2008, section 123B.71, subdivision 8, is amended to read:
144.31    Subd. 8. Review and comment. A school district, a special education cooperative,
144.32or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
144.33initiate an installment contract for purchase or a lease agreement, hold a referendum for
145.1bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
145.2facility that requires an expenditure in excess of $500,000 per school site if the district has
145.3an outstanding capital loan or $1,400,000 for all other school districts, special education
145.4cooperatives, or cooperative units of government per school site prior to review and
145.5comment by the commissioner. The commissioner may exempt a facility maintenance
145.6project funded with general education aid and levy, alternative facilities bonding and levy
145.7program, or health and safety revenue from this provision after reviewing a written request
145.8from a school district describing the scope of work. A school board shall not separate
145.9portions of a single project into components to avoid the requirements of this subdivision.
145.10The commissioner must exempt a facility maintenance project funded with capital facilities
145.11bonding, alternative facilities bonding, or health and safety revenue from this provision.
145.12EFFECTIVE DATE.This section is effective July 1, 2009.

145.13    Sec. 8. Minnesota Statutes 2008, section 123B.71, subdivision 9, is amended to read:
145.14    Subd. 9. Information required. A school board proposing to construct a facility
145.15described in subdivision 8 shall submit to the commissioner a proposal containing
145.16information including at least the following:
145.17(1) the geographic area and population to be served, preschool through grade 12
145.18student enrollments for the past five years, and student enrollment projections for the
145.19next five years;
145.20(2) a list of existing facilities by year constructed, their uses, and an assessment of
145.21the extent to which alternate facilities are available within the school district boundaries
145.22and in adjacent school districts;
145.23(3) a list of the specific deficiencies of the facility that demonstrate the need for a
145.24new or renovated facility to be provided, and a list of the specific benefits that the new
145.25or renovated facility will provide to the students, teachers, and community users served
145.26by the facility;
145.27(4) the relationship of the project to any priorities established by the school district,
145.28educational cooperatives that provide support services, or other public bodies in the
145.29service area;
145.30(5) a description of the pedestrian, bicycle, and transit connections between the
145.31school and nearby residential areas that make it easier for children, teachers, and parents
145.32to get to the school by walking, bicycling, and taking transit;
145.33(5) (6) a specification of how the project will increase community use of the facility
145.34maximizes the opportunity for cooperative use of existing park, recreation, and other
146.1public facilities and whether and how the project will increase collaboration with other
146.2governmental or nonprofit entities;
146.3(6) (7) a description of the project, including the specification of site and outdoor
146.4space acreage and square footage allocations for classrooms, laboratories, and support
146.5spaces; estimated expenditures for the major portions of the project; and the dates the
146.6project will begin and be completed;
146.7(7) (8) a specification of the source of financing the project; the scheduled date
146.8for a bond issue or school board action; a schedule of payments, including debt service
146.9equalization aid; and the effect of a bond issue on local property taxes by the property
146.10class and valuation;
146.11(8) (9) an analysis of how the proposed new or remodeled facility will affect school
146.12district operational or administrative staffing costs, and how the district's operating budget
146.13will cover any increased operational or administrative staffing costs;
146.14(9) (10) a description of the consultation with local or state road and transportation
146.15officials on multimodal school site access and safety issues, and the ways that the project
146.16will address those issues;
146.17(10) (11) a description of how indoor air quality issues have been considered and a
146.18certification that the architects and engineers designing the facility will have professional
146.19liability insurance;
146.20(11) (12) as required under section 123B.72, for buildings coming into service
146.21after July 1, 2002, a certification that the plans and designs for the extensively renovated
146.22or new facility's heating, ventilation, and air conditioning systems will meet or exceed
146.23code standards; will provide for the monitoring of outdoor airflow and total airflow of
146.24ventilation systems; and will provide an indoor air quality filtration system that meets
146.25ASHRAE standard 52.1;
146.26(12) (13) a specification of any desegregation requirements that cannot be met
146.27by any other reasonable means;
146.28(13) (14) a specification, if applicable, of how the facility will utilize environmentally
146.29sustainable school facility design concepts; and
146.30(14) (15) a description of how the architects and engineers have considered
146.31the American National Standards Institute Acoustical Performance Criteria, Design
146.32Requirements and Guidelines for Schools of the maximum background noise level and
146.33reverberation times.; and
146.34    (16) any existing information from the relevant local unit of government about the
146.35cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
146.36roads, and sidewalks.

147.1    Sec. 9. Minnesota Statutes 2008, section 123B.71, subdivision 12, is amended to read:
147.2    Subd. 12. Publication. (a) At least 20 days but not more than 60 days before a
147.3referendum for bonds or solicitation of bids for a project that has received a positive or
147.4unfavorable review and comment under section 123B.70, the school board shall publish
147.5the commissioner's review and comment of that project in the legal newspaper of the
147.6district. Supplementary information shall be available to the public.
147.7(b) The publication requirement in paragraph (a) does not apply to alternative
147.8facilities projects approved under section 123B.59. Publication for alternative facilities
147.9projects shall be as specified in section 123B.59, subdivisions 3 and 3a.
147.10EFFECTIVE DATE.This section is effective July 1, 2009.

147.11    Sec. 10. Minnesota Statutes 2008, section 125B.26, is amended to read:
147.12125B.26 TELECOMMUNICATIONS/INTERNET ACCESS EQUITY AID.
147.13    Subdivision 1. Costs to be submitted. (a) A district or, charter school, or
147.14intermediate school district shall submit its actual telecommunications/Internet access
147.15costs for the previous fiscal year, adjusted for any e-rate revenue received, to the
147.16department by August 15 of each year as prescribed by the commissioner. Costs eligible
147.17for reimbursement under this program are limited to the following:
147.18(1) ongoing or recurring telecommunications/Internet access costs associated with
147.19Internet access, data lines, and video links providing:
147.20(i) the equivalent of one data line, video link, or integrated data/video link that relies
147.21on a transport medium that operates at a minimum speed of 1.544 megabytes per second
147.22(T1) for each elementary school, middle school, or high school under section 120A.05,
147.23subdivisions 9, 11, and 13 , including the recurring telecommunications line lease costs
147.24and ongoing Internet access service fees; or
147.25(ii) the equivalent of one data line or video circuit, or integrated data/video link that
147.26relies on a transport medium that operates at a minimum speed of 1.544 megabytes per
147.27second (T1) for each district, including recurring telecommunications line lease costs
147.28and ongoing Internet access service fees;
147.29(2) recurring costs of contractual or vendor-provided maintenance on the school
147.30district's wide area network to the point of presence at the school building up to the router,
147.31codec, or other service delivery equipment located at the point of presence termination
147.32at the school or school district;
147.33(3) recurring costs of cooperative, shared arrangements for regional delivery of
147.34telecommunications/Internet access between school districts, postsecondary institutions,
148.1and public libraries including network gateways, peering points, regional network
148.2infrastructure, Internet2 access, and network support, maintenance, and coordination; and
148.3(4) service provider installation fees for installation of new telecommunications lines
148.4or increased bandwidth.
148.5(b) Costs not eligible for reimbursement under this program include:
148.6(1) recurring costs of school district staff providing network infrastructure support;
148.7(2) recurring costs associated with voice and standard telephone service;
148.8(3) costs associated with purchase of network hardware, telephones, computers, or
148.9other peripheral equipment needed to deliver telecommunications access to the school or
148.10school district;
148.11(4) costs associated with laying fiber for telecommunications access;
148.12(5) costs associated with wiring school or school district buildings;
148.13(6) costs associated with purchase, installation, or purchase and installation of
148.14Internet filtering; and
148.15(7) costs associated with digital content, including online learning or distance
148.16learning programming, and information databases.
148.17    Subd. 2. E-rates. To be eligible for aid under this section, a district or, charter
148.18school, or intermediate school district is required to file an e-rate application either
148.19separately or through its telecommunications access cluster and have a current technology
148.20plan on file with the department. Discounts received on telecommunications expenditures
148.21shall be reflected in the costs submitted to the department for aid under this section.
148.22    Subd. 3. Reimbursement criteria. The commissioner shall develop criteria
148.23for approving costs submitted by organized school districts and, charter schools, and
148.24intermediate school districts under subdivision 1.
148.25    Subd. 4. District aid. For fiscal year 2006 and later, a district or, charter school's
148.26school, or intermediate school district's Internet access equity aid equals the district or,
148.27charter school's school, or intermediate school district's approved cost for the previous
148.28fiscal year according to subdivision 1 exceeding $15 times the district's adjusted marginal
148.29cost pupil units for the previous fiscal year or no reduction if the district is part of an
148.30organized telecommunications access cluster. Equity aid must be distributed to the
148.31telecommunications access cluster for districts, charter schools, or intermediate school
148.32districts that are members of the cluster or to individual districts and, charter schools, or
148.33intermediate school districts not part of a telecommunications access cluster.
148.34    Subd. 5. Telecommunications/Internet access services for nonpublic schools.
148.35(a) Districts shall provide each year upon formal request by or on behalf of a nonpublic
148.36school, not including home schools, located in that district or area, ongoing or recurring
149.1telecommunications access services to the nonpublic school either through existing district
149.2providers or through separate providers.
149.3(b) The amount of district aid for telecommunications access services for each
149.4nonpublic school under this subdivision equals the lesser of:
149.5(1) 90 percent of the nonpublic school's approved cost for the previous fiscal year
149.6according to subdivision 1 exceeding $10 for fiscal year 2006 and later times the number
149.7of weighted pupils enrolled at the nonpublic school as of October 1 of the previous
149.8school year; or
149.9(2) the product of the district's aid per pupil unit according to subdivision 4 times
149.10the number of weighted pupils enrolled at the nonpublic school as of October 1 of the
149.11previous school year.
149.12(c) For purposes of this subdivision, nonpublic school pupils shall be weighted by
149.13grade level using the weighting factors defined in section 126C.05, subdivision 1.
149.14(d) Each year, a district providing services under paragraph (a) may claim up to five
149.15percent of the aid determined in paragraph (b) for costs of administering this subdivision.
149.16No district may expend an amount for these telecommunications access services which
149.17exceeds the amount allocated under this subdivision. The nonpublic school is responsible
149.18for the Internet access costs not covered by this section.
149.19(e) At the request of a nonpublic school, districts may allocate the amount
149.20determined in paragraph (b) directly to the nonpublic school to pay for or offset the
149.21nonpublic school's costs for telecommunications access services; however, the amount
149.22allocated directly to the nonpublic school may not exceed the actual amount of the school's
149.23ongoing or recurring telecommunications access costs.
149.24    Subd. 6. Severability. If any portion of this section is found by a court to be
149.25unconstitutional, the remaining portions of the section shall remain in effect.
149.26EFFECTIVE DATE.This section is effective the day following final enactment.

149.27    Sec. 11. APPROPRIATIONS.
149.28    Subdivision 1. Department of Education. The sums indicated in this section are
149.29appropriated from the general fund to the Department of Education for the fiscal years
149.30designated.
149.31    Subd. 2. Health and safety revenue. For health and safety aid according to
149.32Minnesota Statutes, section 123B.57, subdivision 5:

149.33		$	132,000	.....	2010
149.34		$	162,000	.....	2011

149.35The 2010 appropriation includes $10,000 for 2009 and $122,000 for 2010.
150.1The 2011 appropriation includes $45,000 for 2010 and $117,000 for 2011.
150.2    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
150.3Statutes, section 123B.53, subdivision 6:

150.4		$	6,608,000	.....	2010
150.5		$	9,012,000	.....	2011

150.6The 2010 appropriation includes $851,000 for 2009 and $5,757,000 for 2010.
150.7The 2011 appropriation includes $2,128,000 for 2010 and $6,884,000 for 2011.
150.8    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
150.9according to Minnesota Statutes, section 123B.59, subdivision 1:

150.10		$	16,008,000	.....	2010
150.11		$	19,287,000	.....	2011

150.12The 2010 appropriation includes $1,928,000 for 2009 and $14,080,000 for 2010.
150.13The 2011 appropriation includes $5,207,000 for 2010 and $14,080,000 for 2011.
150.14    Subd. 5. Equity in telecommunications access. For equity in telecommunications
150.15access:

150.16		$	3,750,000	.....	2010
150.17		$	3,750,000	.....	2011

150.18If the appropriation amount is insufficient, the commissioner shall reduce the
150.19reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
150.20revenue for fiscal years 2010 and 2011 shall be prorated.
150.21Any balance in the first year does not cancel but is available in the second year.
150.22    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
150.23Minnesota Statutes, section 123B.591, subdivision 4:

150.24		$	1,916,000	.....	2010
150.25		$	2,110,000	.....	2011

150.26The 2010 appropriation includes $260,000 for 2009 and $1,656,000 for 2010.
150.27The 2011 appropriation includes $612,000 for 2010 and $1,498,000 for 2011.


150.30    Section 1. Minnesota Statutes 2008, section 123B.10, subdivision 1, is amended to read:
150.31    Subdivision 1. Budgets; form of notification. (a) Every board must publish revenue
150.32and expenditure budgets for the current year and the actual revenues, expenditures, fund
150.33balances for the prior year and projected fund balances for the current year in a form
150.34prescribed by the commissioner within one week of the acceptance of the final audit by
151.1the board, or November 30, whichever is earlier. The forms prescribed must be designed
151.2so that year to year comparisons of revenue, expenditures and fund balances can be made.
151.3    (b) A school board annually must notify the public of its revenue, expenditures, fund
151.4balances, and other relevant budget information. The board must include the budget
151.5information required by this section in the materials provided as a part of its truth in
151.6taxation hearing, post the materials in a conspicuous place on the district's official Web
151.7site, including a link to the district's school report card on the Department of Education's
151.8Web site, and publish a summary of the information and the address of the district's
151.9official Web site where the information can be found in a qualified newspaper of general
151.10circulation in the district.
151.11EFFECTIVE DATE.This section is effective the day following final enactment.

151.12    Sec. 2. Minnesota Statutes 2008, section 123B.14, subdivision 7, is amended to read:
151.13    Subd. 7. Clerk records. The clerk shall keep a record of all meetings of the
151.14district and the board in books provided by the district for that purpose. The clerk shall,
151.15within three days after an election, notify all persons elected of their election. By August
151.16September 15 of each year the clerk shall file with the board a report of the revenues,
151.17expenditures and balances in each fund for the preceding fiscal year. The report together
151.18with vouchers and supporting documents shall subsequently be examined by a public
151.19accountant or the state auditor, either of whom shall be paid by the district, as provided
151.20in section 123B.77, subdivision 3. The board shall by resolution approve the report or
151.21require a further or amended report. By August September 15 of each year, the clerk shall
151.22make and transmit to the commissioner certified reports, showing:
151.23(1) The condition and value of school property;
151.24(2) the revenues and expenditures in detail, and such other financial information
151.25required by law, rule, or as may be called for by the commissioner;
151.26(3) (2) the length of school term and the enrollment and attendance by grades; and
151.27(4) (3) such other items of information as may be called for by the commissioner.
151.28The clerk shall enter in the clerk's record book copies of all reports and of the
151.29teachers' term reports, as they appear in the registers, and of the proceedings of any
151.30meeting as furnished by the clerk pro tem, and keep an itemized account of all the
151.31expenses of the district. The clerk shall furnish to the auditor of the proper county, by
151.32October 10 September 30 of each year, an attested copy of the clerk's record, showing
151.33the amount of money proposed property tax voted by the district or the board for school
151.34purposes; draw and sign all orders upon the treasurer for the payment of money for bills
151.35allowed by the board for salaries of officers and for teachers' wages and all claims, to be
152.1countersigned by the chair. Such orders must state the consideration, payee, and the
152.2fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
152.3the order in which they become due, and no money applicable for teachers' wages shall
152.4be used for any other purpose, nor shall teachers' wages be paid from any fund except
152.5that raised or apportioned for that purpose.

152.6    Sec. 3. Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:
152.7    Subd. 5. Levy recognition. (a) "School district tax settlement revenue" means the
152.8current, delinquent, and manufactured home property tax receipts collected by the county
152.9and distributed to the school district.
152.10(b) For fiscal year 2004 and later years, in June of each year In June of 2009, the
152.11school district must recognize as revenue, in the fund for which the levy was made, the
152.12lesser of:
152.13(1) the sum of May, June, and July school district tax settlement revenue received in
152.14that calendar year, plus general education aid according to section 126C.13, subdivision
152.154 , received in July and August of that calendar year; or
152.16(2) the sum of:
152.17(i) 31 percent of the referendum levy certified according to section 126C.17, in
152.18calendar year 2000; and
152.19(ii) the entire amount of the levy certified in the prior calendar year according to
152.20section 124D.86, subdivision 4, for school districts receiving revenue under sections
152.21124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
152.22paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
152.236 .
152.24(c) For fiscal year 2010 and later years, in June of each year, the school district must
152.25recognize as revenue, in the fund for which the levy was made, the lesser of:
152.26(1) the sum of May, June, and July school district tax settlement revenue received in
152.27that calendar year, plus general education aid according to section 126C.13, subdivision
152.284, received in July and August of that calendar year; or
152.29(2) the sum of:
152.30(i) the greater of 49.1 percent of the referendum levy certified according to section
152.31126C.17, in the prior calendar year or 31 percent of the referendum levy certified
152.32according to section 126C.17, in calendar year 2000; plus
152.33(ii) the entire amount of the levy certified in the prior calendar year according to
152.34section 124D.86, subdivision 4, for school districts receiving revenue under sections
152.35124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3,
153.1paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision
153.26; plus
153.3(iii) 49.1 percent of the amount of the levy certified in the prior calendar year for the
153.4school district's general and community service funds, plus or minus auditor's adjustments,
153.5not including the levy portions that are assumed by the state, that remains after subtracting
153.6the referendum levy certified according to section 126C.17 and the amount recognized
153.7according to clause (ii).
153.8EFFECTIVE DATE.This section is effective the day following final enactment.

153.9    Sec. 4. Minnesota Statutes 2008, section 123B.76, subdivision 3, is amended to read:
153.10    Subd. 3. Expenditures by building. (a) For the purposes of this section, "building"
153.11means education site as defined in section 123B.04, subdivision 1.
153.12(b) Each district shall maintain separate accounts to identify general fund
153.13expenditures for each building to the extent provided by the uniform financial accounting
153.14and reporting standards for school units. All expenditures for regular instruction,
153.15secondary vocational instruction, and school administration must be reported to
153.16the department separately for each building. All expenditures for special education
153.17instruction, instructional support services, and pupil support services provided within a
153.18specific building must be reported to the department separately for each building. Salary
153.19expenditures reported by building must reflect actual salaries for staff at the building and
153.20must not be based on districtwide averages. All other General fund expenditures not
153.21available at the building level through the uniform financial accounting and reporting
153.22standards may be reported by building or on a districtwide basis.
153.23(c) The department must annually report information showing school district general
153.24fund expenditures per pupil by program category for each building and estimated school
153.25district general fund revenue generated by pupils attending each building on its Web
153.26site. For purposes of this report:
153.27(1) expenditures not reported by building shall be allocated among buildings on a
153.28uniform per pupil basis;
153.29(2) basic skills revenue shall be allocated according to section 126C.10, subdivision
153.304 ;
153.31(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated
153.32according to section 126C.10, subdivisions 7 and 8;
153.33(4) alternative teacher compensation revenue shall be allocated according to section
153.34122A.415 , subdivision 1;
154.1(5) other general education revenue shall be allocated on a uniform per pupil unit
154.2basis;
154.3(6) first grade preparedness aid shall be allocated according to section 124D.081;
154.4(7) state and federal special education aid and Title I aid shall be allocated in
154.5proportion to district expenditures for these programs by building; and
154.6(8) other general fund revenues shall be allocated on a uniform per pupil basis,
154.7except that the department may allocate other revenues attributable to specific buildings
154.8directly to those buildings.
154.9EFFECTIVE DATE.This section is effective for fiscal years 2010 and later.

154.10    Sec. 5. Minnesota Statutes 2008, section 123B.81, subdivision 3, is amended to read:
154.11    Subd. 3. Debt verification. The commissioner shall establish a uniform auditing or
154.12other verification procedure for districts to determine whether a statutory operating debt
154.13exists in any Minnesota school district as of June 30, 1977. This procedure must identify
154.14all interfund transfers made during fiscal year 1977 from a fund included in computing
154.15statutory operating debt to a fund not included in computing statutory operating debt. The
154.16standards for this uniform auditing or verification procedure must be promulgated by the
154.17state board pursuant to chapter 14 commissioner. If a district applies to the commissioner
154.18for a statutory operating debt verification or if the unaudited financial statement for the
154.19school year ending June 30, 1977 reveals that a statutory operating debt might exist, the
154.20commissioner shall require a verification of the amount of the statutory operating debt
154.21which actually does exist.

154.22    Sec. 6. Minnesota Statutes 2008, section 123B.81, subdivision 4, is amended to read:
154.23    Subd. 4. Debt elimination. If an audit or other verification procedure conducted
154.24pursuant to subdivision 3 determines that a statutory operating debt exists, a district
154.25must follow the procedures set forth in this section 123B.83 to eliminate this statutory
154.26operating debt.

154.27    Sec. 7. Minnesota Statutes 2008, section 123B.81, subdivision 5, is amended to read:
154.28    Subd. 5. Certification of debt. The commissioner shall certify the amount of
154.29statutory operating debt for each district. Prior to June 30, 1979, the commissioner may,
154.30on the basis of corrected figures, adjust the total amount of statutory operating debt
154.31certified for any district.

154.32    Sec. 8. Minnesota Statutes 2008, section 124D.111, subdivision 3, is amended to read:
155.1    Subd. 3. School food service fund. (a) The expenses described in this subdivision
155.2must be recorded as provided in this subdivision.
155.3(b) In each district, the expenses for a school food service program for pupils must
155.4be attributed to a school food service fund. Under a food service program, the school
155.5food service may prepare or serve milk, meals, or snacks in connection with school or
155.6community service activities.
155.7(c) Revenues and expenditures for food service activities must be recorded in the
155.8food service fund. The costs of processing applications, accounting for meals, preparing
155.9and serving food, providing kitchen custodial services, and other expenses involving the
155.10preparing of meals or the kitchen section of the lunchroom may be charged to the food
155.11service fund or to the general fund of the district. The costs of lunchroom supervision,
155.12lunchroom custodial services, lunchroom utilities, and other administrative costs of the
155.13food service program must be charged to the general fund.
155.14That portion of superintendent and fiscal manager costs that can be documented as
155.15attributable to the food service program may be charged to the food service fund provided
155.16that the school district does not employ or contract with a food service director or other
155.17individual who manages the food service program, or food service management company.
155.18If the cost of the superintendent or fiscal manager is charged to the food service fund,
155.19the charge must be at a wage rate not to exceed the statewide average for food service
155.20directors as determined by the department.
155.21(d) Capital expenditures for the purchase of food service equipment must be made
155.22from the general fund and not the food service fund, unless two conditions apply:
155.23(1) the unreserved balance in the food service fund at the end of the last fiscal year is
155.24greater than the cost of the equipment to be purchased; and
155.25(2) the department has approved the purchase of the equipment.
155.26(e) If the two conditions set out in paragraph (d) apply, the equipment may be
155.27purchased from the food service fund.
155.28(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
155.29is not eliminated by revenues from food service operations in the next fiscal year, then the
155.30deficit must be eliminated by a permanent fund transfer from the general fund at the end of
155.31that the second fiscal year following the year in which the deficit occurred. However, if a
155.32district contracts with a food service management company during the period in which
155.33the deficit has accrued, the deficit must be eliminated by a payment from attributed to the
155.34food service management company or the district or both.
155.35The amount of the deficit attributable to the district shall be the revenue shortfall
155.36caused by the difference between the contractually agreed upon prices for meals, a la
156.1carte, vending and catering and the actual prices charged by the district plus the amount of
156.2expenditures charged to the food service fund by the district in excess of the contractually
156.3agreed upon budget. The remaining amount of the deficit shall be attributable to the food
156.4service management company.
156.5 The amount of the deficit attributable to the food service management company
156.6must be eliminated by a payment to the district by the end of the fiscal year following the
156.7year in which the deficit occurred. If the payment is not made by the end of the fiscal year
156.8following the year in which the deficit occurred, the food service management company
156.9may not bid on any food service management contracts throughout the state until such
156.10payment has been made.
156.11(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
156.12fund for up to three years without making the permanent transfer if the district submits
156.13to the commissioner by January 1 of the second fiscal year a plan for eliminating that
156.14deficit at the end of the third fiscal year.
156.15(h) If a surplus in the food service fund exists at the end of a fiscal year for three
156.16successive years, a district may recode for that fiscal year the costs of lunchroom
156.17supervision, lunchroom custodial services, lunchroom utilities, and other administrative
156.18costs of the food service program charged to the general fund according to paragraph (c)
156.19and charge those costs to the food service fund in a total amount not to exceed the amount
156.20of surplus in the food service fund.
156.21EFFECTIVE DATE.This section is effective the day following final enactment.

156.22    Sec. 9. Minnesota Statutes 2008, section 127A.441, is amended to read:
156.23127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
156.24    Each year, the state aids payable to any school district for that fiscal year that are
156.25recognized as revenue in the school district's general and community service funds shall
156.26be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
156.27prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) or (c), minus (2)
156.28the amount the district recognized as revenue for the current fiscal year pursuant to section
156.29123B.75, subdivision 5 , paragraph (b) or (c). For purposes of making the aid adjustments
156.30under this section, the amount the district recognizes as revenue for either the prior fiscal
156.31year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
156.32shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
156.33districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
156.34126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2;
156.35126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
157.1be adjusted pursuant to this section. The school district shall be notified of the amount of
157.2the adjustment made to each payment pursuant to this section.
157.3EFFECTIVE DATE.This section is effective the day following final enactment.

157.4    Sec. 10. Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:
157.5    Subd. 2. Definitions. (a) The term "Other district receipts" means payments by
157.6county treasurers pursuant to section 276.10, apportionments from the school endowment
157.7fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
157.8section 127A.34, subdivision 2, and payments to school districts by the commissioner of
157.9revenue pursuant to chapter 298.
157.10(b) The term "Cumulative amount guaranteed" means the product of
157.11(1) the cumulative disbursement percentage shown in subdivision 3; times
157.12(2) the sum of
157.13(i) the current year aid payment percentage of the estimated aid and credit
157.14entitlements paid according to subdivision 13; plus
157.15(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
157.16(iii) the other district receipts.
157.17(c) The term "Payment date" means the date on which state payments to districts
157.18are made by the electronic funds transfer method. If a payment date falls on a Saturday,
157.19a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
157.20immediately preceding business day. The commissioner may make payments on dates
157.21other than those listed in subdivision 3, but only for portions of payments from any
157.22preceding payment dates which could not be processed by the electronic funds transfer
157.23method due to documented extenuating circumstances.
157.24(d) The current year aid payment percentage equals 90 73.
157.25EFFECTIVE DATE.This section is effective for revenue for fiscal years 2010
157.26and later.

157.27    Sec. 11. Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:
157.28    Subd. 3. Payment dates and percentages. (a) For fiscal year 2004 and later,
157.29The commissioner shall pay to a district on the dates indicated an amount computed
157.30as follows: the cumulative amount guaranteed minus the sum of (a) the district's other
157.31district receipts through the current payment, and (b) the aid and credit payments through
157.32the immediately preceding payment. For purposes of this computation, the payment dates
157.33and the cumulative disbursement percentages are as follows:

158.1		Payment date	Percentage
158.2	Payment 1	July 15:	5.5
158.3	Payment 2	July 30:	8.0
158.4	Payment 3	August 15:	17.5
158.5	Payment 4	August 30:	20.0
158.6	Payment 5	September 15:	22.5
158.7	Payment 6	September 30:	25.0
158.8	Payment 7	October 15:	27.0
158.9	Payment 8	October 30:	30.0
158.10	Payment 9	November 15:	32.5
158.11	Payment 10	November 30:	36.5
158.12	Payment 11	December 15:	42.0
158.13	Payment 12	December 30:	45.0
158.14	Payment 13	January 15:	50.0
158.15	Payment 14	January 30:	54.0
158.16	Payment 15	February 15:	58.0
158.17	Payment 16	February 28:	63.0
158.18	Payment 17	March 15:	68.0
158.19	Payment 18	March 30:	74.0
158.20	Payment 19	April 15:	78.0
158.21	Payment 20	April 30:	85.0
158.22	Payment 21	May 15:	90.0
158.23	Payment 22	May 30:	95.0
158.24	Payment 23	June 20:	100.0

158.25(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
158.26commissioner shall pay to a district on the dates indicated an amount computed as follows:

158.27 158.28	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
158.29 158.30	Payment 4	August 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
158.31 158.32	Payment 6	September 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
158.33 158.34	Payment 8	October 30: one-third of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

158.35(c) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and
158.36later, the commissioner shall pay to a district on the dates indicated an amount computed
158.37as follows:

158.38 158.39	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
158.40 158.41	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
159.1 159.2	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
159.3 159.4	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

159.5    Sec. 12. Minnesota Statutes 2008, section 127A.45, is amended by adding a
159.6subdivision to read:
159.7    Subd. 7b. Advance final payment. (a) Notwithstanding subdivisions 3 and 7,
159.8a school district or charter school exceeding its expenditure limitations under section
159.9123B.83 as of June 30 of the prior fiscal year may receive a portion of its final payment
159.10for the current fiscal year on June 20, if requested by the district or charter school. The
159.11amount paid under this subdivision must not exceed the lesser of:
159.12(1) the difference between 90 percent and the current year payment percentage in
159.13subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
159.14charter school's general education aid plus the aid adjustment in section 127A.50 for
159.15the current fiscal year; or
159.16(2) the amount by which the district's or charter school's net negative unreserved
159.17general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
159.18district or charter school's expenditures for that fiscal year.
159.19(b) The state total advance final payment under this subdivision for any year must
159.20not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
159.21payment for each eligible district must be reduced proportionately.
159.22EFFECTIVE DATE.This section is effective for revenue for fiscal years 2010
159.23and later.

159.24    Sec. 13. Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:
159.25    Subd. 13. Aid payment percentage. Except as provided in subdivisions 11, 12, 12a,
159.26and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
159.27120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
159.28shall be paid at the current year aid payment percentage of the estimated entitlement during
159.29the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
159.30entitlement for special education excess cost aid under section 125A.79 for fiscal year
159.312005 equals 70 percent of the district's entitlement for the second prior fiscal year. For the
159.32purposes of this subdivision, a district's estimated entitlement for special education excess
159.33cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
159.34district's entitlement for the current fiscal year. The final adjustment payment, according
160.1to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
160.2data, minus the payments made during the fiscal year of the entitlement.

160.3    Sec. 14. Minnesota Statutes 2008, section 127A.47, subdivision 5, is amended to read:
160.4    Subd. 5. Notification of resident district. A district educating a pupil who is
160.5a resident of another district must notify the district of residence within 60 days of the
160.6date the pupil is determined by the district to be a nonresident, but not later than August
160.71 following the end of the school year in which the pupil is educated. If the district of
160.8residence does not receive a notification from the providing district pursuant to this
160.9subdivision, it is not liable to that district for any tuition billing received after August 1
160.10of the next school year.

160.11    Sec. 15. Minnesota Statutes 2008, section 134.31, subdivision 4a, is amended to read:
160.12    Subd. 4a. Services to the blind and physically handicapped people with visual
160.13and physical disabilities. The Minnesota Department of Education shall provide
160.14specialized services to the blind and physically handicapped people with visual and
160.15physical disabilities through the Minnesota Braille and Talking Book Library for the Blind
160.16and Physically Handicapped under a cooperative plan with the National Library Services
160.17for the Blind and Physically Handicapped of the Library of Congress.
160.18EFFECTIVE DATE.This section is effective the day following final enactment.

160.19    Sec. 16. Minnesota Statutes 2008, section 134.31, is amended by adding a subdivision
160.20to read:
160.21    Subd. 7. Telephone or electronic meetings. (a) Notwithstanding section 13D.01,
160.22the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
160.23a meeting of its members by telephone or other electronic means so long as the following
160.24conditions are met:
160.25(1) all members of the committee participating in the meeting, wherever their
160.26physical locations, can hear one another and can hear all discussion and testimony;
160.27(2) members of the public present at the regular meeting location of the committee
160.28can hear all discussion, testimony, and votes of the members of the committee;
160.29(3) at least one member of the committee is physically present at the regular meeting
160.30location; and
160.31(4) all votes are conducted by roll call, so each member's vote on each issue can be
160.32identified and recorded.
161.1(b) Each member of the committee participating in a meeting by telephone or other
161.2electronic means is considered present at the meeting for purposes of determining quorum
161.3and participating in all proceedings.
161.4(c) If telephone or other electronic means is used to conduct a meeting, to the extent
161.5practical, the committee shall allow a person to monitor the meeting electronically from a
161.6remote location. The committee may require the person making the connection to pay
161.7for the documented additional costs that the committee incurs as a result of the additional
161.8connection.
161.9(d) If telephone or other electronic means is used to conduct a regular, special, or
161.10emergency meeting, the committee shall provide notice of the regular meeting location,
161.11the fact that some members may participate by telephone or other electronic means, and
161.12the provisions of paragraph (c). The timing and method of providing notice is governed
161.13by section 13D.04.
161.14EFFECTIVE DATE.This section is effective the day following final enactment.

161.15    Sec. 17. Minnesota Statutes 2008, section 275.065, subdivision 3, is amended to read:
161.16    Subd. 3. Notice of proposed property taxes. (a) The county auditor shall prepare
161.17and the county treasurer shall deliver after November 10 and on or before November 24
161.18each year, by first class mail to each taxpayer at the address listed on the county's current
161.19year's assessment roll, a notice of proposed property taxes. Upon written request by
161.20the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
161.21instead of on paper or by ordinary mail.
161.22    (b) The commissioner of revenue shall prescribe the form of the notice.
161.23    (c) The notice must inform taxpayers that it contains the amount of property taxes
161.24each taxing authority proposes to collect for taxes payable the following year. In the
161.25case of a town, or in the case of the state general tax, the final tax amount will be its
161.26proposed tax. In the case of taxing authorities required to hold a public meeting under
161.27subdivision 6, the notice must clearly state that each taxing authority, including regional
161.28library districts established under section 134.201, and including the metropolitan taxing
161.29districts as defined in paragraph (i), but excluding all other special taxing districts and
161.30towns, will hold a public meeting to receive public testimony on the proposed budget and
161.31proposed or final property tax levy, or, in case of a school district, on the current budget
161.32and proposed property tax levy. The notice must clearly state for each city, county, school
161.33district, regional library authority established under section 134.201, and metropolitan
161.34taxing districts as defined in paragraph (i), the time and place of the taxing authority's
161.35regularly scheduled meetings in which the budget and levy will be discussed and the final
162.1budget and levy determined. The taxing authorities must provide the county auditor with
162.2the information to be included in the notice. It must clearly state the time and place of
162.3each taxing authority's meeting, provide a telephone number for the taxing authority that
162.4taxpayers may call if they have questions related to the notice, and an address where
162.5comments will be received by mail.
162.6    (d) The notice must state for each parcel:
162.7    (1) the market value of the property as determined under section 273.11, and used
162.8for computing property taxes payable in the following year and for taxes payable in the
162.9current year as each appears in the records of the county assessor on November 1 of the
162.10current year; and, in the case of residential property, whether the property is classified as
162.11homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
162.12which the market values apply and that the values are final values;
162.13    (2) the items listed below, shown separately by county, city or town, and state general
162.14tax, net of the residential and agricultural homestead credit under section 273.1384, voter
162.15approved school levy, other local school levy, and the sum of the special taxing districts,
162.16and as a total of all taxing authorities:
162.17    (i) the actual tax for taxes payable in the current year; and
162.18    (ii) the proposed tax amount.
162.19    If the county levy under clause (2) includes an amount for a lake improvement
162.20district as defined under sections 103B.501 to 103B.581, the amount attributable for that
162.21purpose must be separately stated from the remaining county levy amount.
162.22    In the case of a town or the state general tax, the final tax shall also be its proposed
162.23tax unless the town changes its levy at a special town meeting under section 365.52. If a
162.24school district has certified under section 126C.17, subdivision 9, that a referendum will
162.25be held in the school district at the November general election, the county auditor must
162.26note next to the school district's proposed amount that a referendum is pending and that, if
162.27approved by the voters, the tax amount may be higher than shown on the notice. In the
162.28case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
162.29listed separately from the remaining amount of the city's levy. In the case of the city of
162.30St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
162.31remaining amount of the city's levy. In the case of Ramsey County, any amount levied
162.32under section 134.07 may be listed separately from the remaining amount of the county's
162.33levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
162.34under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
162.35proposed tax levy on the tax capacity subject to the areawide tax must each be stated
162.36separately and not included in the sum of the special taxing districts; and
163.1    (3) the increase or decrease between the total taxes payable in the current year and
163.2the total proposed taxes, expressed as a percentage.
163.3    For purposes of this section, the amount of the tax on homesteads qualifying under
163.4the senior citizens' property tax deferral program under chapter 290B is the total amount
163.5of property tax before subtraction of the deferred property tax amount.
163.6    (e) The notice must clearly state that the proposed or final taxes do not include
163.7the following:
163.8    (1) special assessments;
163.9    (2) levies approved by the voters after the date the proposed taxes are certified,
163.10including bond referenda and school district levy referenda;
163.11    (3) a levy limit increase approved by the voters by the first Tuesday after the first
163.12Monday in November of the levy year as provided under section 275.73;
163.13    (4) amounts necessary to pay cleanup or other costs due to a natural disaster
163.14occurring after the date the proposed taxes are certified;
163.15    (5) amounts necessary to pay tort judgments against the taxing authority that become
163.16final after the date the proposed taxes are certified; and
163.17    (6) the contamination tax imposed on properties which received market value
163.18reductions for contamination.
163.19    (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
163.20the county treasurer to deliver the notice as required in this section does not invalidate the
163.21proposed or final tax levy or the taxes payable pursuant to the tax levy.
163.22    (g) If the notice the taxpayer receives under this section lists the property as
163.23nonhomestead, and satisfactory documentation is provided to the county assessor by the
163.24applicable deadline, and the property qualifies for the homestead classification in that
163.25assessment year, the assessor shall reclassify the property to homestead for taxes payable
163.26in the following year.
163.27    (h) In the case of class 4 residential property used as a residence for lease or rental
163.28periods of 30 days or more, the taxpayer must either:
163.29    (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
163.30renter, or lessee; or
163.31    (2) post a copy of the notice in a conspicuous place on the premises of the property.
163.32    The notice must be mailed or posted by the taxpayer by November 27 or within
163.33three days of receipt of the notice, whichever is later. A taxpayer may notify the county
163.34treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
163.35which the notice must be mailed in order to fulfill the requirements of this paragraph.
164.1    (i) For purposes of this subdivision, subdivisions and subdivision 5a and 6,
164.2"metropolitan special taxing districts" means the following taxing districts in the
164.3seven-county metropolitan area that levy a property tax for any of the specified purposes
164.4listed below:
164.5    (1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
164.6473.446 , 473.521, 473.547, or 473.834;
164.7    (2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
164.8and
164.9    (3) Metropolitan Mosquito Control Commission under section 473.711.
164.10    For purposes of this section, any levies made by the regional rail authorities in the
164.11county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
164.12398A shall be included with the appropriate county's levy and shall be discussed at that
164.13county's public hearing.
164.14    (j) The governing body of a county, city, or school district may, with the consent
164.15of the county board, include supplemental information with the statement of proposed
164.16property taxes about the impact of state aid increases or decreases on property tax
164.17increases or decreases and on the level of services provided in the affected jurisdiction.
164.18This supplemental information may include information for the following year, the current
164.19year, and for as many consecutive preceding years as deemed appropriate by the governing
164.20body of the county, city, or school district. It may include only information regarding:
164.21    (1) the impact of inflation as measured by the implicit price deflator for state and
164.22local government purchases;
164.23    (2) population growth and decline;
164.24    (3) state or federal government action; and
164.25    (4) other financial factors that affect the level of property taxation and local services
164.26that the governing body of the county, city, or school district may deem appropriate to
164.27include.
164.28    The information may be presented using tables, written narrative, and graphic
164.29representations and may contain instruction toward further sources of information or
164.30opportunity for comment.
164.31EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
164.32thereafter.

164.33    Sec. 18. Minnesota Statutes 2008, section 275.065, subdivision 6, is amended to read:
164.34    Subd. 6. Public hearing; Adoption of budget and levy. (a) For purposes of this
164.35section, the following terms shall have the meanings given:
165.1(1) "Initial hearing" means the first and primary hearing held to discuss the taxing
165.2authority's proposed budget and proposed property tax levy for taxes payable in the
165.3following year, or, for school districts, the current budget and the proposed property tax
165.4levy for taxes payable in the following year.
165.5(2) "Continuation hearing" means a hearing held to complete the initial hearing, if
165.6the initial hearing is not completed on its scheduled date.
165.7(3) "Subsequent hearing" means the hearing held to adopt the taxing authority's final
165.8property tax levy, and, in the case of taxing authorities other than school districts, the final
165.9budget, for taxes payable in the following year.
165.10(b) Between November 29 and December 20, the governing bodies of a city that has a
165.11population over 500, county, metropolitan special taxing districts as defined in subdivision
165.123, paragraph (i), and regional library districts shall each hold an initial public hearing
165.13to discuss and seek public comment on its final budget and property tax levy for taxes
165.14payable in the following year, and the governing body of the school district shall hold an
165.15initial public hearing to review its current budget and proposed property tax levy for taxes
165.16payable in the following year. The metropolitan special taxing districts shall be required to
165.17hold only a single joint initial public hearing, the location of which will be determined by
165.18the affected metropolitan agencies. A city, county, metropolitan special taxing district as
165.19defined in subdivision 3, paragraph (i), regional library district established under section
165.20134.201, or school district is not required to hold a public hearing under this subdivision
165.21unless its proposed property tax levy for taxes payable in the following year, as certified
165.22under subdivision 1, has increased over its final property tax levy for taxes payable in the
165.23current year by a percentage that is greater than the percentage increase in the implicit
165.24price deflator for government consumption expenditures and gross investment for state
165.25and local governments prepared by the Bureau of Economic Analysts of the United States
165.26Department of Commerce for the 12-month period ending March 31 of the current year.
165.27(c) The initial hearing must be held after 5:00 p.m. if scheduled on a day other than
165.28Saturday. No initial hearing may be held on a Sunday.
165.29(d) At the initial hearing under this subdivision, the percentage increase in property
165.30taxes proposed by the taxing authority, if any, and the specific purposes for which property
165.31tax revenues are being increased must be discussed. During the discussion, the governing
165.32body shall hear comments regarding a proposed increase and explain the reasons for the
165.33proposed increase. The public shall be allowed to speak and to ask questions. At the public
165.34hearing, the school district must also provide and discuss information on the distribution
165.35of its revenues by revenue source, and the distribution of its spending by program area.
166.1(e) If the initial hearing is not completed on its scheduled date, the taxing authority
166.2must announce, prior to adjournment of the hearing, the date, time, and place for the
166.3continuation of the hearing. The continuation hearing must be held at least five business
166.4days but no more than 14 business days after the initial hearing. A continuation hearing
166.5may not be held later than December 20 except as provided in paragraphs (f) and (g).
166.6A continuation hearing must be held after 5:00 p.m. if scheduled on a day other than
166.7Saturday. No continuation hearing may be held on a Sunday.
166.8(f) The governing body of a county shall hold its initial hearing on the first Thursday
166.9in December each year, and may hold additional initial hearings on other dates before
166.10December 20 if necessary for the convenience of county residents. If the county needs a
166.11continuation of its hearing, the continuation hearing shall be held on the third Tuesday
166.12in December. If the third Tuesday in December falls on December 21, the county's
166.13continuation hearing shall be held on Monday, December 20.
166.14(g) The metropolitan special taxing districts shall hold a joint initial public hearing
166.15on the first Wednesday of December. A continuation hearing, if necessary, shall be held on
166.16the second Wednesday of December even if that second Wednesday is after December 10.
166.17(h) The county auditor shall provide for the coordination of initial and continuation
166.18hearing dates for all school districts and cities within the county to prevent conflicts under
166.19clauses (i) and (j).
166.20(i) By August 10, each school board and the board of the regional library district
166.21shall certify to the county auditors of the counties in which the school district or regional
166.22library district is located the dates on which it elects to hold its initial hearing and any
166.23continuation hearing. If a school board or regional library district does not certify these
166.24dates by August 10, the auditor will assign the initial and continuation hearing dates. The
166.25dates elected or assigned must not conflict with the initial and continuation hearing dates
166.26of the county or the metropolitan special taxing districts.
166.27(j) By August 20, the county auditor shall notify the clerks of the cities within the
166.28county of the dates on which school districts and regional library districts have elected to
166.29hold their initial and continuation hearings. At the time a city certifies its proposed levy
166.30under subdivision 1 it shall certify the dates on which it elects to hold its initial hearing and
166.31any continuation hearing. Until September 15, the first and second Mondays of December
166.32are reserved for the use of the cities. If a city does not certify its hearing dates by
166.33September 15, the auditor shall assign the initial and continuation hearing dates. The dates
166.34elected or assigned for the initial hearing must not conflict with the initial hearing dates
166.35of the county, metropolitan special taxing districts, regional library districts, or school
166.36districts within which the city is located. To the extent possible, the dates of the city's
167.1continuation hearing should not conflict with the continuation hearing dates of the county,
167.2metropolitan special taxing districts, regional library districts, or school districts within
167.3which the city is located. This paragraph does not apply to cities of 500 population or less.
167.4(k) The county initial hearing date and the city, metropolitan special taxing district,
167.5regional library district, and school district initial hearing dates must be designated on
167.6the notices required under subdivision 3. The continuation hearing dates need not be
167.7stated on the notices.
167.8(l) At a subsequent hearing, each county, school district, city over 500 population,
167.9and metropolitan special taxing district may amend its proposed property tax levy
167.10and must adopt a final property tax levy. Each county, city over 500 population, and
167.11metropolitan special taxing district may also amend its proposed budget and must adopt a
167.12final budget at the subsequent hearing. The final property tax levy must be adopted prior
167.13to adopting the final budget. A school district is not required to adopt its final budget at the
167.14subsequent hearing. The subsequent hearing of a taxing authority must be held on a date
167.15subsequent to the date of the taxing authority's initial public hearing. If a continuation
167.16hearing is held, the subsequent hearing must be held either immediately following the
167.17continuation hearing or on a date subsequent to the continuation hearing. The subsequent
167.18hearing may be held at a regularly scheduled board or council meeting or at a special
167.19meeting scheduled for the purposes of the subsequent hearing. The subsequent hearing
167.20of a taxing authority does not have to be coordinated by the county auditor to prevent a
167.21conflict with an initial hearing, a continuation hearing, or a subsequent hearing of any
167.22other taxing authority. All subsequent hearings must be held prior to five working days
167.23after December 20 of the levy year. The date, time, and place of the subsequent hearing
167.24must be announced at the initial public hearing or at the continuation hearing.
167.25(m) (a) The property tax levy certified under section 275.07 by a city of any
167.26population, county, metropolitan special taxing district, regional library district, or school
167.27district must not exceed the proposed levy determined under subdivision 1, except by an
167.28amount up to the sum of the following amounts:
167.29(1) the amount of a school district levy whose voters approved a referendum to
167.30increase taxes under section 123B.63, subdivision 3, or 126C.17, subdivision 9, after
167.31the proposed levy was certified;
167.32(2) the amount of a city or county levy approved by the voters after the proposed
167.33levy was certified;
167.34(3) the amount of a levy to pay principal and interest on bonds approved by the
167.35voters under section 475.58 after the proposed levy was certified;
168.1(4) the amount of a levy to pay costs due to a natural disaster occurring after the
168.2proposed levy was certified, if that amount is approved by the commissioner of revenue
168.3under subdivision 6a;
168.4(5) the amount of a levy to pay tort judgments against a taxing authority that become
168.5final after the proposed levy was certified, if the amount is approved by the commissioner
168.6of revenue under subdivision 6a;
168.7(6) the amount of an increase in levy limits certified to the taxing authority by the
168.8commissioner of education or the commissioner of revenue after the proposed levy was
168.9certified; and
168.10(7) the amount required under section 126C.55.
168.11(n) (b) This subdivision does not apply to towns and special taxing districts other
168.12than regional library districts and metropolitan special taxing districts.
168.13(o) (c) Notwithstanding the requirements of this section, the employer is required to
168.14meet and negotiate over employee compensation as provided for in chapter 179A.
168.15EFFECTIVE DATE.This section is effective for taxes payable in 2010 and
168.16thereafter.

168.17    Sec. 19. Laws 2008, chapter 363, article 2, section 46, subdivision 1, is amended to
168.18read:
168.19    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
168.20on June 30, of 2008, 2009, and 2010, a school district may transfer money from its
168.21reserved for operating capital account to its undesignated balance in the general fund. The
168.22amount transferred by any school district must not exceed $51 times the district's adjusted
168.23marginal cost pupil units for the second preceding fiscal year 2007. This transfer annually
168.24may occur only after the school board has adopted a written resolution stating the amount
168.25of the transfer and declaring that the school district's operating capital needs are being met.
168.26EFFECTIVE DATE.This section is effective the day following final enactment.

168.27    Sec. 20. FUND TRANSFER; ST. ANTHONY-NEW BRIGHTON.
168.28Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2009,
168.29Independent School District No. 282, St. Anthony-New Brighton, may permanently
168.30transfer up to $400,000 from its reserved for operating capital account to its undesignated
168.31general fund balance.
168.32EFFECTIVE DATE.This section is effective the day following final enactment.

168.33    Sec. 21. APPROPRIATIONS.
169.1    Subdivision 1. Department of Education. The sums indicated in this section are
169.2appropriated from the general fund to the Department of Education for the fiscal years
169.3designated.
169.4    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
169.5section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

169.6		$	12,688,000	.....	2010
169.7		$	13,069,000	.....	2011

169.8    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
169.9Statutes, section 124D.1158:

169.10		$	4,978,000	.....	2010
169.11		$	5,147,000	.....	2011

169.12    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
169.13section 124D.118:

169.14		$	1,098,000	.....	2010
169.15		$	1,120,000	.....	2011

169.16    Subd. 5. Summer school food service replacement aid. For summer food service
169.17replacement aid under Minnesota Statutes, section 124D.119:

169.18		$	150,000	.....	2010
169.19		$	150,000	.....	2011

169.20    Sec. 22. REPEALER.
169.21Minnesota Statutes 2008, section 275.065, subdivisions 5a, 6b, 6c, 8, 9, and 10, are
169.22repealed.
169.23EFFECTIVE DATE. This section is effective for taxes payable in 2010 and
169.24thereafter.


169.27    Section 1. Minnesota Statutes 2008, section 299A.297, is amended to read:
169.28299A.297 OTHER DUTIES.
169.29The commissioner of public safety, in consultation with the Chemical Abuse and
169.30Violence Prevention Council, shall:
169.31(1) provide information and assistance upon request to school preassessment teams
169.32established under section 121A.26 and school and community advisory teams established
169.33under section 121A.27;
170.1(2) provide information and assistance upon request to the State Board of Pharmacy
170.2with respect to the board's enforcement of chapter 152;
170.3(3) cooperate with and provide information and assistance upon request to the
170.4Alcohol and Other Drug Abuse Section in the Department of Human Services;
170.5(4) coordinate the policy of the office with that of the Narcotic Enforcement Unit in
170.6the Bureau of Criminal Apprehension; and
170.7(5) coordinate the activities of the regional drug task forces, provide assistance and
170.8information to them upon request, and assist in the formation of task forces in areas of
170.9the state in which no task force operates.

170.10    Sec. 2. REPEALER.
170.11Minnesota Statutes 2008, section 121A.27, is repealed.


170.14    Section 1. Minnesota Statutes 2008, section 125A.62, subdivision 8, is amended to
170.15read:
170.16    Subd. 8. Grants and gifts. The board, through the chief administrators of the
170.17academies, may apply for all competitive grants administered by agencies of the state
170.18and other government or nongovernment sources. Application may not be made for
170.19grants over which the board has discretion. Any funds received under this subdivision is
170.20appropriated and dedicated for the purpose for which it is granted.

170.21    Sec. 2. Minnesota Statutes 2008, section 127A.08, is amended by adding a subdivision
170.22to read:
170.23    Subd. 5. Grants and gifts. The commissioner may apply for and receive grants
170.24and gifts administered by agencies of the state and other government or nongovernment
170.25sources. Any money received is hereby appropriated and dedicated for the purpose for
170.26which it is granted. The commissioner annually by February 1 must report to the education
170.27policy and finance committees of the legislature the amount of money it received under
170.28this subdivision and the purpose for which it was granted.

170.29    Sec. 3. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
170.30    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
170.31indicated in this section are appropriated from the general fund to the Department of
170.32Education for the fiscal years designated.
170.33    Subd. 2. Department. (a) For the Department of Education:

171.1		$	21,383,000	.....	2010
171.2		$	21,383,000	.....	2011

171.3Any balance in the first year does not cancel but is available in the second year.
171.4(b) $41,000 each year is for the Minnesota Academy of Science.
171.5(c) $632,000 in fiscal year 2010 and $632,000 in fiscal year 2011 are for the Board
171.6of Teaching.
171.7(d) $171,000 in fiscal year 2010 and $171,000 in fiscal year 2011 are for the Board
171.8of School Administrators.
171.9(e) $40,000 each year is for an early hearing loss intervention coordinator under
171.10Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
171.11funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
171.12subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
171.13employing a world languages coordinator.
171.14(f) The expenditures of federal grants and aids as shown in the biennial budget
171.15document and its supplements are approved and appropriated and shall be spent as
171.16indicated, with the exception of state incentive grants, education technology state grants,
171.17teacher incentive funds, and statewide data system funds as outlined in the supplemental
171.18federal funds submission dated March 25, 2009.
171.19    Subd. 3. Board of Teaching; licensure by portfolio. For the Board of Teaching
171.20for licensure by portfolio:

171.21		$	30,000	.....	2010
171.22		$	30,000	.....	2011

171.23This appropriation is from the educator licensure portfolio account of the special
171.24revenue fund.

171.25    Sec. 4. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
171.26The sums indicated in this section are appropriated from the general fund to the
171.27Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

171.28		$	11,912,000	.....	2010
171.29		$	11,912,000	.....	2011

171.30Any balance in the first year does not cancel but is available in the second year.

171.31    Sec. 5. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
171.32The sums in this section are appropriated from the general fund to the Perpich
171.33Center for Arts Education for the fiscal years designated:

172.1		$	7,087,000	.....	2010
172.2		$	7,087,000	.....	2011

172.3Any balance in the first year does not cancel but is available in the second year.


172.6    Section 1. Minnesota Statutes 2008, section 123B.92, subdivision 1, is amended to read:
172.7    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
172.8terms defined in this subdivision have the meanings given to them.
172.9    (a) "Actual expenditure per pupil transported in the regular and excess transportation
172.10categories" means the quotient obtained by dividing:
172.11    (1) the sum of:
172.12    (i) all expenditures for transportation in the regular category, as defined in paragraph
172.13(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
172.14    (ii) an amount equal to one year's depreciation on the district's school bus fleet
172.15and mobile units computed on a straight line basis at the rate of 15 percent per year for
172.16districts operating a program under section 124D.128 for grades 1 to 12 for all students in
172.17the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
172.18    (iii) an amount equal to one year's depreciation on the district's type three school
172.19buses III vehicles, as defined in section 169.011, subdivision 71, clause (5), which must be
172.20used a majority of the time for pupil transportation purposes, computed on a straight line
172.21basis at the rate of 20 percent per year of the cost of the type three school buses by:
172.22    (2) the number of pupils eligible for transportation in the regular category, as defined
172.23in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
172.24    (b) "Transportation category" means a category of transportation service provided to
172.25pupils as follows:
172.26    (1) Regular transportation is:
172.27    (i) transportation to and from school during the regular school year for resident
172.28elementary pupils residing one mile or more from the public or nonpublic school they
172.29attend, and resident secondary pupils residing two miles or more from the public
172.30or nonpublic school they attend, excluding desegregation transportation and noon
172.31kindergarten transportation; but with respect to transportation of pupils to and from
172.32nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
172.33    (ii) transportation of resident pupils to and from language immersion programs;
173.1    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
173.2the pupil's home and the child care provider and between the provider and the school, if
173.3the home and provider are within the attendance area of the school;
173.4    (iv) transportation to and from or board and lodging in another district, of resident
173.5pupils of a district without a secondary school; and
173.6    (v) transportation to and from school during the regular school year required under
173.7subdivision 3 for nonresident elementary pupils when the distance from the attendance
173.8area border to the public school is one mile or more, and for nonresident secondary pupils
173.9when the distance from the attendance area border to the public school is two miles or
173.10more, excluding desegregation transportation and noon kindergarten transportation.
173.11    For the purposes of this paragraph, a district may designate a licensed day care
173.12facility, school day care facility, respite care facility, the residence of a relative, or the
173.13residence of a person chosen by the pupil's parent or guardian as the home of a pupil for
173.14part or all of the day, if requested by the pupil's parent or guardian, and if that facility or
173.15residence is within the attendance area of the school the pupil attends.
173.16    (2) Excess transportation is:
173.17    (i) transportation to and from school during the regular school year for resident
173.18secondary pupils residing at least one mile but less than two miles from the public or
173.19nonpublic school they attend, and transportation to and from school for resident pupils
173.20residing less than one mile from school who are transported because of extraordinary
173.21traffic, drug, or crime hazards; and
173.22    (ii) transportation to and from school during the regular school year required under
173.23subdivision 3 for nonresident secondary pupils when the distance from the attendance area
173.24border to the school is at least one mile but less than two miles from the public school
173.25they attend, and for nonresident pupils when the distance from the attendance area border
173.26to the school is less than one mile from the school and who are transported because of
173.27extraordinary traffic, drug, or crime hazards.
173.28    (3) Desegregation transportation is transportation within and outside of the district
173.29during the regular school year of pupils to and from schools located outside their normal
173.30attendance areas under a plan for desegregation mandated by the commissioner or under
173.31court order.
173.32    (4) "Transportation services for pupils with disabilities" is:
173.33    (i) transportation of pupils with disabilities who cannot be transported on a regular
173.34school bus between home or a respite care facility and school;
173.35    (ii) necessary transportation of pupils with disabilities from home or from school to
173.36other buildings, including centers such as developmental achievement centers, hospitals,
174.1and treatment centers where special instruction or services required by sections 125A.03
174.2to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
174.3where services are provided;
174.4    (iii) necessary transportation for resident pupils with disabilities required by sections
174.5125A.12 , and 125A.26 to 125A.48;
174.6    (iv) board and lodging for pupils with disabilities in a district maintaining special
174.7classes;
174.8    (v) transportation from one educational facility to another within the district for
174.9resident pupils enrolled on a shared-time basis in educational programs, and necessary
174.10transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
174.11with disabilities who are provided special instruction and services on a shared-time basis
174.12or if resident pupils are not transported, the costs of necessary travel between public
174.13and private schools or neutral instructional sites by essential personnel employed by the
174.14district's program for children with a disability;
174.15    (vi) transportation for resident pupils with disabilities to and from board and lodging
174.16facilities when the pupil is boarded and lodged for educational purposes; and
174.17    (vii) transportation of pupils for a curricular field trip activity on a school bus
174.18equipped with a power lift when the power lift is required by a student's disability or
174.19section 504 plan; and
174.20(viii) services described in clauses (i) to (vi) (vii), when provided for pupils with
174.21disabilities in conjunction with a summer instructional program that relates to the pupil's
174.22individual education plan or in conjunction with a learning year program established
174.23under section 124D.128.
174.24    For purposes of computing special education initial aid under section 125A.76,
174.25subdivision 2 , the cost of providing transportation for children with disabilities includes
174.26(A) the additional cost of transporting a homeless student from a temporary nonshelter
174.27home in another district to the school of origin, or a formerly homeless student from a
174.28permanent home in another district to the school of origin but only through the end of the
174.29academic year; and (B) depreciation on district-owned school buses purchased after July 1,
174.302005, and used primarily for transportation of pupils with disabilities, calculated according
174.31to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled
174.32transportation category must be excluded in calculating the actual expenditure per pupil
174.33transported in the regular and excess transportation categories according to paragraph (a).
174.34    (5) "Nonpublic nonregular transportation" is:
175.1    (i) transportation from one educational facility to another within the district for
175.2resident pupils enrolled on a shared-time basis in educational programs, excluding
175.3transportation for nonpublic pupils with disabilities under clause (4);
175.4    (ii) transportation within district boundaries between a nonpublic school and a
175.5public school or a neutral site for nonpublic school pupils who are provided pupil support
175.6services pursuant to section 123B.44; and
175.7    (iii) late transportation home from school or between schools within a district for
175.8nonpublic school pupils involved in after-school activities.
175.9    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
175.10educational programs and services, including diagnostic testing, guidance and counseling
175.11services, and health services. A mobile unit located off nonpublic school premises is a
175.12neutral site as defined in section 123B.41, subdivision 13.
175.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

175.14    Sec. 2. Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read:
175.15    Subd. 5. District reports. (a) Each district must report data to the department as
175.16required by the department to account for transportation expenditures.
175.17(b) Salaries and fringe benefits of district employees whose primary duties are
175.18other than transportation, including central office administrators and staff, building
175.19administrators and staff, teachers, social workers, school nurses, and instructional aides,
175.20must not be included in a district's transportation expenditures, except that a district may
175.21include salaries and benefits according to paragraph (c) for (1) an employee designated
175.22as the district transportation director, (2) an employee providing direct support to the
175.23transportation director, or (3) an employee providing direct transportation services such as
175.24a bus driver or bus aide.
175.25(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
175.26clauses (1), (2), and (3), who work part time in transportation and part time in other areas
175.27must not be included in a district's transportation expenditures unless the district maintains
175.28documentation of the employee's time spent on pupil transportation matters in the form
175.29and manner prescribed by the department.
175.30(d) Pupil transportation expenditures, excluding expenditures for capital outlay,
175.31leased buses, student board and lodging, crossing guards, and aides on buses, must
175.32be allocated among transportation categories based on cost-per-mile, cost-per-student,
175.33cost-per-hour, or cost-per-route, regardless of whether the transportation services are
175.34provided on district-owned or contractor-owned school buses. Expenditures for school
175.35bus driver salaries and fringe benefits may either be directly charged to the appropriate
176.1transportation category or may be allocated among transportation categories based
176.2on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures
176.3by private contractors or individuals who provide transportation exclusively in one
176.4transportation category must be charged directly to the appropriate transportation category.
176.5Transportation services provided by contractor-owned school bus companies incorporated
176.6under different names but owned by the same individual or group of individuals must be
176.7treated as the same company for cost allocation purposes.
176.8(e) Notwithstanding paragraph (d), districts contracting for transportation services
176.9are exempt from the standard cost allocation method for authorized and nonauthorized
176.10transportation categories if the district: (1) bids its contracts separately for authorized
176.11and nonauthorized transportation categories and for special transportation separate from
176.12regular and excess transportation; (2) receives bids or quotes from more than one vendor
176.13for these transportation categories; and (3) the district's cost-per-mile, cost-per-hour, or
176.14cost-per-route does not vary more than ten percent among categories, excluding salaries
176.15and fringe benefits of bus aides. If the costs reported by the district for contractor-owned
176.16operations vary by more than ten percent among categories, the department shall require
176.17the district to reallocate its transportation costs, excluding salaries and fringe benefits of
176.18bus aides, among all categories.
176.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

176.20    Sec. 3. Minnesota Statutes 2008, section 169.011, subdivision 71, is amended to read:
176.21    Subd. 71. School bus. (a) "School bus" means a motor vehicle used to transport
176.22pupils to or from a school defined in section 120A.22, or to or from school-related
176.23activities, by the school or a school district, or by someone under an agreement with the
176.24school or a school district. A school bus does not include a motor vehicle transporting
176.25children to or from school for which parents or guardians receive direct compensation
176.26from a school district, a motor coach operating under charter carrier authority, a transit
176.27bus providing services as defined in section 174.22, subdivision 7, a multifunction school
176.28activity bus as defined by federal motor vehicle safety standards, or a vehicle otherwise
176.29qualifying as a type III vehicle under paragraph (5) clause (6), when the vehicle is properly
176.30registered and insured and being driven by an employee or agent of a school district for
176.31nonscheduled or nonregular transportation.
176.32(b) A school bus may be type A, type B, type C, or type D, multifunction school
176.33activity bus, or type III as follows: provided in paragraphs (c) to (h).
176.34(1) (c) A "type A school bus" is a van conversion or bus constructed utilizing a
176.35cutaway front section vehicle with a left-side driver's door. The entrance door is behind the
177.1front wheels. This definition includes two classifications: type A-I, with a gross vehicle
177.2weight rating (GVWR) less than or equal to 10,000 14,500 pounds; and type A-II, with a
177.3GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
177.4(2) (d) A "type B school bus" is constructed utilizing a stripped chassis. The
177.5entrance door is behind the front wheels. This definition includes two classifications: type
177.6B-I, with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR
177.7greater than 10,000 pounds.
177.8(3) (e) A "type C school bus" is constructed utilizing a chassis with a hood and front
177.9fender assembly. The entrance door is behind the front wheels. A "type C school bus" also
177.10includes a cutaway truck chassis or truck chassis with cab, with or without a left side door,
177.11and with a GVWR greater than 21,500 pounds.
177.12(4) (f) A "type D school bus" is constructed utilizing a stripped chassis. The entrance
177.13door is ahead of the front wheels.
177.14(5) (g) A "multifunction school activity bus" is a school bus that meets the definition
177.15of a multifunction school activity bus in Code of Federal Regulations, title 49, section
177.16571.3. A vehicle that meets the definition of a type III vehicle is not a multifunction
177.17school activity bus.
177.18(h) A "Type III vehicles are vehicle" is restricted to passenger cars, station wagons,
177.19vans, and buses having a maximum manufacturer's rated seating capacity of ten or fewer
177.20people, including the driver, and a gross vehicle weight rating of 10,000 pounds or
177.21less. In this subdivision, "gross vehicle weight rating" means the value specified by the
177.22manufacturer as the loaded weight of a single vehicle. A "type III vehicle" must not be
177.23outwardly equipped and identified as a type A, B, C, or D school bus or type A, B, C, or D
177.24Head Start bus. A van or bus converted to a seating capacity of ten or fewer and placed in
177.25service on or after August 1, 1999, must have been originally manufactured to comply
177.26with the passenger safety standards.
177.27(i) In this subdivision, "gross vehicle weight rating" means the value specified by
177.28the manufacturer as the loaded weight of a single vehicle.
177.29EFFECTIVE DATE.This section is effective July 1, 2009.

177.30    Sec. 4. Minnesota Statutes 2008, section 169.443, subdivision 9, is amended to read:
177.31    Subd. 9. Personal cellular phone call prohibition. (a) As used in this subdivision,
177.32"school bus" has the meaning given in section 169.011, subdivision 71. In addition, the
177.33term includes type III vehicles as described defined in section 169.011, subdivision 71,
177.34clause (5), when driven by employees or agents of school districts.
178.1    (b) A school bus driver may not operate a school bus while communicating over, or
178.2otherwise operating, a cellular phone for personal reasons, whether handheld or hands
178.3free, when the vehicle is in motion.

178.4    Sec. 5. Minnesota Statutes 2008, section 169.4501, subdivision 1, is amended to read:
178.5    Subdivision 1. National standards adopted. Except as provided in sections
178.6169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
178.7D and multifunctional school buses and multifunction school activity bus school buses
178.8used for the transportation of school children shall meet the requirements of the "bus
178.9chassis standards" and "bus body standards" in the 2005 edition of the "National School
178.10Transportation Specifications and Procedures" adopted by the National Congress on
178.11School Transportation. Except as provided in section 169.4504, the construction, design,
178.12and equipment of types A, B, C, D and multifunctional school buses and multifunction
178.13school activity bus school buses used for the transportation of students with disabilities
178.14also shall meet the requirements of the "specially equipped school bus standards" in the
178.152005 National School Transportation Specifications and Procedures. The "bus chassis
178.16standards," "bus body standards," and "specially equipped school bus standards" sections
178.17of the 2005 edition of the "National School Transportation Specifications and Procedures"
178.18are incorporated by reference in this chapter.

178.19    Sec. 6. Minnesota Statutes 2008, section 169.4503, subdivision 20, is amended to read:
178.20    Subd. 20. Seat and crash barriers. (a) All restraining barriers and passenger seats
178.21shall be covered with a material that has fire retardant or fire block characteristics.
178.22    (b) All seats must have a minimum cushion depth of 15 inches and a seat back
178.23height of at least 20 inches above the seating reference point, and beginning October 21,
178.242009, must also conform to the Federal Motor Vehicle Safety Standard in Code of Federal
178.25Regulations, title 49, section 571.222.

178.26    Sec. 7. Minnesota Statutes 2008, section 169.4503, is amended by adding a subdivision
178.27to read:
178.28    Subd. 27. Tailpipe. (a) The tailpipe must not extend more than two inches beyond
178.29the perimeter of the body for a side-exit pipe or beyond the bumper for a rear-exit pipe.
178.30(b) The tailpipe must exit either in the rear of the vehicle or to the left side of the bus
178.31in front of or behind the rear drive axle. The tailpipe exit location on all type A-I or B-I
178.32buses must be in accordance with the manufacturer's standards. The tailpipe must not exit
178.33beneath any fuel filler location or beneath any emergency door.
179.1EFFECTIVE DATE.This section is effective the day following final enactment
179.2retroactive to December 31, 2007.

179.3    Sec. 8. Minnesota Statutes 2008, section 169.454, subdivision 13, is amended to read:
179.4    Subd. 13. Exemption. When a vehicle otherwise qualifying as a type III vehicle
179.5under section 169.011, subdivision 71, clause (5), whether owned and operated by a
179.6school district or privately owned and operated, is used to transport school children in a
179.7nonscheduled situation, it shall be exempt from the vehicle requirements of this section
179.8and the licensing requirements of section 171.321, if the vehicle is properly registered
179.9and insured and operated by an employee or agent of a school district with a valid driver's
179.10license.

179.11    Sec. 9. Minnesota Statutes 2008, section 169A.03, subdivision 23, is amended to read:
179.12    Subd. 23. School bus. "School bus" has the meaning given in section 169.011,
179.13subdivision 71 . In addition, the term includes type III vehicles as described defined in
179.14section 169.011, subdivision 71, clause (5), when driven by employees or agents of school
179.15districts.

179.16    Sec. 10. Minnesota Statutes 2008, section 171.01, subdivision 22, is amended to read:
179.17    Subd. 22. Commercial motor vehicle. "Commercial motor vehicle" means a motor
179.18vehicle or combination of motor vehicles used to transport passengers or property if
179.19the motor vehicle:
179.20(1) has a gross vehicle weight of more than 26,000 pounds;
179.21(2) has a towed unit with a gross vehicle weight of more than 10,000 pounds and the
179.22combination of vehicles has a combined gross vehicle weight of more than 26,000 pounds;
179.23(3) is a bus;
179.24(4) is of any size and is used in the transportation of hazardous materials that are
179.25required to be placarded under Code of Federal Regulations, title 49, parts 100-185; or
179.26(5) is outwardly equipped and identified as a school bus, except for type III vehicles
179.27defined in section 169.011, subdivision 71, clause (5).

179.28    Sec. 11. Minnesota Statutes 2008, section 171.02, subdivision 2, is amended to read:
179.29    Subd. 2. Driver's license classifications, endorsements, exemptions. (a) Drivers'
179.30licenses are classified according to the types of vehicles that may be driven by the holder
179.31of each type or class of license. The commissioner may, as appropriate, subdivide the
179.32classes listed in this subdivision and issue licenses classified accordingly.
180.1    (b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no
180.2class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer
180.3or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless
180.4so endorsed. There are four general classes of licenses as described in paragraphs (c)
180.5through (f).
180.6    (c) Class D drivers' licenses are valid for:
180.7    (1) operating all farm trucks if the farm truck is:
180.8    (i) controlled and operated by a farmer, including operation by an immediate family
180.9member or an employee of the farmer;
180.10    (ii) used to transport agricultural products, farm machinery, or farm supplies,
180.11including hazardous materials, to or from a farm;
180.12    (iii) not used in the operations of a common or contract motor carrier as governed by
180.13Code of Federal Regulations, title 49, part 365; and
180.14    (iv) used within 150 miles of the farm;
180.15    (2) notwithstanding paragraph (b), operating an authorized emergency vehicle, as
180.16defined in section 169.011, subdivision 3, whether or not in excess of 26,000 pounds
180.17gross vehicle weight;
180.18    (3) operating a recreational vehicle as defined in section 168.002, subdivision 27,
180.19that is operated for personal use;
180.20    (4) operating all single-unit vehicles except vehicles with a gross vehicle weight of
180.21more than 26,000 pounds, vehicles designed to carry more than 15 passengers including
180.22the driver, and vehicles that carry hazardous materials;
180.23    (5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional
180.24multifunction school activity bus without a school bus endorsement if:
180.25    (i) the bus has a gross vehicle weight of 10,000 pounds or less;
180.26    (ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
180.27    (iii) the requirements of subdivision 2a are satisfied, as determined by the
180.28commissioner;
180.29    (6) operating any vehicle or combination of vehicles when operated by a licensed
180.30peace officer while on duty; and
180.31    (7) towing vehicles if:
180.32    (i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or
180.33    (ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and
180.34the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.
180.35    (d) Class C drivers' licenses are valid for:
180.36    (1) operating class D motor vehicles;
181.1    (2) with a hazardous materials endorsement, operating class D vehicles to transport
181.2hazardous materials;
181.3    (3) with a passenger endorsement, operating buses; and
181.4    (4) with a passenger endorsement and school bus endorsement, operating school
181.5buses.
181.6    (e) Class B drivers' licenses are valid for:
181.7    (1) operating all class C motor vehicles, class D motor vehicles, and all other
181.8single-unit motor vehicles including, with a passenger endorsement, buses; and
181.9    (2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.
181.10    (f) Class A drivers' licenses are valid for operating any vehicle or combination of
181.11vehicles.

181.12    Sec. 12. Minnesota Statutes 2008, section 171.02, subdivision 2a, is amended to read:
181.13    Subd. 2a. Exception for certain school bus drivers. Notwithstanding subdivision
181.142, paragraph (c) (b), the holder of a class D driver's license, without a school bus
181.15endorsement, may operate a type A school bus described in subdivision 2, paragraph (b),
181.16or a multifunction school activity bus under the following conditions:
181.17    (a) The operator is an employee of the entity that owns, leases, or contracts for the
181.18school bus and is not solely hired to provide transportation services under this subdivision.
181.19    (b) The operator drives the school bus only from points of origin to points of
181.20destination, not including home-to-school trips to pick up or drop off students.
181.21    (c) The operator is prohibited from using the eight-light system. Violation of this
181.22paragraph is a misdemeanor.
181.23    (d) The operator's employer has adopted and implemented a policy that provides for
181.24annual training and certification of the operator in:
181.25    (1) safe operation of the type of school bus the operator will be driving;
181.26    (2) understanding student behavior, including issues relating to students with
181.27disabilities;
181.28    (3) encouraging orderly conduct of students on the bus and handling incidents of
181.29misconduct appropriately;
181.30    (4) knowing and understanding relevant laws, rules of the road, and local school
181.31bus safety policies;
181.32    (5) handling emergency situations; and
181.33    (6) safe loading and unloading of students.
181.34    (e) A background check or background investigation of the operator has been
181.35conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
182.1for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321,
182.2subdivision 3 , for all other persons operating a type A school bus under this subdivision.
182.3    (f) Operators shall submit to a physical examination as required by section 171.321,
182.4subdivision 2 .
182.5    (g) The operator's driver's license is verified annually by the entity that owns, leases,
182.6or contracts for the school bus.
182.7    (h) A person who sustains a conviction, as defined under section 609.02, of violating
182.8section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute
182.9or ordinance of another state is precluded from operating a school bus for five years
182.10from the date of conviction.
182.11    (i) A person who has ever been convicted of a disqualifying offense as defined in
182.12section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this
182.13subdivision.
182.14    (j) A person who sustains a conviction, as defined under section 609.02, of a fourth
182.15moving offense in violation of chapter 169 is precluded from operating a school bus for
182.16one year from the date of the last conviction.
182.17    (k) Students riding the school bus must have training required under section
182.18123B.90, subdivision 2 .
182.19    (l) An operator must be trained in the proper use of child safety restraints as set
182.20forth in the National Highway Traffic Safety Administration's "Guideline for the Safe
182.21Transportation of Pre-school Age Children in School Buses," if child safety restraints are
182.22used by the passengers.
182.23    (m) Annual certification of the requirements listed in this subdivision must be
182.24maintained under separate file at the business location for each operator licensed under
182.25this subdivision and subdivision 2, paragraph (b), clause (5). The business manager,
182.26school board, governing body of a nonpublic school, or any other entity that owns,
182.27leases, or contracts for the school bus operating under this subdivision is responsible
182.28for maintaining these files for inspection.
182.29    (n) The school bus must bear a current certificate of inspection issued under section
182.30169.451 .
182.31    (o) If the word "School" appears on the front and rear of the bus, the word "School"
182.32must be covered by a sign that reads "Activities" when the bus is being operated under
182.33authority of this subdivision.
182.34(p) The type A-I school bus or multifunction school activity bus is designed to
182.35transport 15 or fewer passengers, including the driver.
182.36(q) The school bus has a gross vehicle weight rating of 14,500 pounds or less.
183.1EFFECTIVE DATE.This section is effective July 1, 2010.

183.2    Sec. 13. Minnesota Statutes 2008, section 171.02, subdivision 2b, is amended to read:
183.3    Subd. 2b. Exception for type III vehicle drivers. (a) Notwithstanding subdivision
183.42, paragraph (c), the holder of a class A, B, C, or D driver's license, without a school bus
183.5endorsement, may operate a type III vehicle described in section 169.011, subdivision 71,
183.6clause (5), under the conditions in paragraphs (b) through (n) (o).
183.7    (b) The operator is an employee of the entity that owns, leases, or contracts for
183.8the school bus.
183.9    (c) The operator's employer has adopted and implemented a policy that provides for
183.10annual training and certification of the operator in:
183.11    (1) safe operation of a type III vehicle;
183.12    (2) understanding student behavior, including issues relating to students with
183.13disabilities;
183.14    (3) encouraging orderly conduct of students on the bus and handling incidents of
183.15misconduct appropriately;
183.16    (4) knowing and understanding relevant laws, rules of the road, and local school
183.17bus safety policies;
183.18    (5) handling emergency situations;
183.19    (6) proper use of seat belts and child safety restraints;
183.20    (7) performance of pretrip vehicle inspections; and
183.21    (8) safe loading and unloading of students, including, but not limited to:
183.22    (i) utilizing a safe location for loading and unloading students at the curb, on the
183.23nontraffic side of the roadway, or at off-street loading areas, driveways, yards, and other
183.24areas to enable the student to avoid hazardous conditions;
183.25    (ii) refraining from loading and unloading students in a vehicular traffic lane, on the
183.26shoulder, in a designated turn lane, or a lane adjacent to a designated turn lane;
183.27    (iii) avoiding a loading or unloading location that would require a pupil to cross a
183.28road, or ensuring that the driver or an aide personally escort the pupil across the road if
183.29it is not reasonably feasible to avoid such a location; and
183.30    (iv) placing the type III vehicle in "park" during loading and unloading; and
183.31(9) compliance with paragraph (k), concerning reporting certain convictions to the
183.32employer within ten days of the date of conviction.
183.33    (d) A background check or background investigation of the operator has been
183.34conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
183.35for school district employees; section 144.057 or chapter 245C for day care employees;
184.1or section 171.321, subdivision 3, for all other persons operating a type A or type III
184.2vehicle under this subdivision.
184.3    (e) Operators shall submit to a physical examination as required by section 171.321,
184.4subdivision 2 .
184.5    (f) The operator's employer has adopted and implemented a policy that provides for
184.6mandatory requires preemployment drug and alcohol testing of applicants for operator
184.7positions and. Current operators, in accordance must comply with the employer's policy
184.8under section 181.951, subdivisions 2, 4, and 5.
184.9    (g) The operator's driver's license is verified annually by the entity that owns, leases,
184.10or contracts for the school bus.
184.11    (h) A person who sustains a conviction, as defined under section 609.02, of violating
184.12section 169A.25, 169A.26, 169A.27, or 169A.31, or whose driver's license is revoked
184.13under sections 169A.50 to 169A.53 of the implied consent law, or who is convicted of
184.14violating or has their whose driver's license is revoked under a similar statute or ordinance
184.15of another state, is precluded from operating a type III vehicle for five years from the
184.16date of conviction.
184.17    (i) A person who has ever been convicted of a disqualifying offense as defined in
184.18section 171.3215, subdivision 1, paragraph (c), may not operate a type III vehicle under
184.19this subdivision.
184.20    (j) A person who sustains a conviction, as defined under section 609.02, of a moving
184.21offense in violation of chapter 169 within three years of the first of three other moving
184.22offenses is precluded from operating a type III vehicle for one year from the date of
184.23the last conviction.
184.24    (k) An operator who sustains a conviction as described in paragraph (h), (i), or (j)
184.25while employed by the entity that owns, leases, or contracts for the school bus, shall report
184.26the conviction to the employer within ten days of the date of the conviction.
184.27    (l) Students riding the type III vehicle must have training required under section
184.28123B.90, subdivision 2 .
184.29    (m) Documentation of meeting the requirements listed in this subdivision must be
184.30maintained under separate file at the business location for each type III vehicle operator.
184.31The business manager, school board, governing body of a nonpublic school, or any
184.32other entity that owns, leases, or contracts for the type III vehicle operating under this
184.33subdivision is responsible for maintaining these files for inspection.
184.34    (n) The type III vehicle must bear a current certificate of inspection issued under
184.35section 169.451.
185.1    (o) An operator employed by a school or school district, whose normal duties do not
185.2include operating a type III vehicle, who holds a class D driver's license without a school
185.3bus endorsement, may operate a type III vehicle and is exempt from paragraphs (d), (e),
185.4(f), (g), and (k) An employee of a school or of a school district, who is not employed for
185.5the sole purpose of operating a type III vehicle, is exempt from paragraphs (e) and (f).
185.6EFFECTIVE DATE.This section is effective the day following final enactment.

185.7    Sec. 14. Minnesota Statutes 2008, section 171.321, subdivision 1, is amended to read:
185.8    Subdivision 1. Endorsement. No person shall drive a school bus when transporting
185.9school children to or from school or upon a school-related trip or activity without having a
185.10valid class A, class B, or class C driver's license with a school bus endorsement except
185.11that a person possessing a valid driver's license but not a school bus endorsement may
185.12drive a type III vehicle or a school bus, subject to the requirements of section 171.02,
185.13subdivisions 2, 2a, and 2b.

185.14    Sec. 15. Minnesota Statutes 2008, section 171.321, subdivision 4, is amended to read:
185.15    Subd. 4. Training. (a) No person shall drive a class A, B, C, or D school bus when
185.16transporting school children to or from school or upon a school-related trip or activity
185.17without having demonstrated sufficient skills and knowledge to transport students in
185.18a safe and legal manner.
185.19    (b) A bus driver must have training or experience that allows the driver to meet at
185.20least the following competencies:
185.21    (1) safely operate the type of school bus the driver will be driving;
185.22    (2) understand student behavior, including issues relating to students with
185.23disabilities;
185.24    (3) encourage orderly conduct of students on the bus and handle incidents of
185.25misconduct appropriately;
185.26    (4) know and understand relevant laws, rules of the road, and local school bus
185.27safety policies;
185.28    (5) handle emergency situations; and
185.29    (6) safely load and unload students.
185.30    (c) The commissioner of public safety shall develop a comprehensive model
185.31school bus driver training program and model assessments for school bus driver training
185.32competencies, which are not subject to chapter 14. A school district, nonpublic school, or
185.33private contractor may use alternative assessments for bus driver training competencies
185.34with the approval of the commissioner of public safety. A driver may receive at least eight
186.1hours of school bus in-service training any year, as an alternative to being assessed for bus
186.2driver competencies after the initial year of being assessed for bus driver competencies.
186.3The employer shall keep the assessment or a record of the in-service training for the
186.4current period available for inspection by representatives of the commissioner.
186.5(d) A school district, nonpublic school, or private contractor shall provide in-service
186.6training annually to each school bus driver.

186.7    Sec. 16. Minnesota Statutes 2008, section 171.321, subdivision 5, is amended to read:
186.8    Subd. 5. Annual evaluation and license verification. (a) A school district,
186.9nonpublic school, or private contractor shall provide in-service training annually to each
186.10school bus driver. For purposes of this section, "annually" means at least once every
186.11380 days from the initial or previous evaluation and at least once every 380 days from
186.12the initial or previous license verification.
186.13(b) A school district, nonpublic school, or private contractor shall annually verify
186.14with the National Driver Register or with the Department of Public Safety the validity of
186.15the driver's license of each employee who regularly transports students for the district in:
186.16(1) a type A school bus, a type B school bus, a type C school bus, or type D school bus,; (2)
186.17a multifunction school activity bus; or regularly transports students for the district in (3) a
186.18type III vehicle with the National Driver Register or with the Department of Public Safety.
186.19EFFECTIVE DATE.This section is effective July 1, 2010.


186.22    Section 1. Minnesota Statutes 2008, section 123B.53, subdivision 5, is amended to read:
186.23    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
186.24district equals the sum of the first tier equalized debt service levy and the second tier
186.25equalized debt service levy.
186.26(b) A district's first tier equalized debt service levy equals the district's first tier debt
186.27service equalization revenue times the lesser of one or the ratio of:
186.28(1) the quotient derived by dividing the adjusted net tax capacity of the district for
186.29the year before the year the levy is certified by the adjusted pupil units in the district for
186.30the school year ending in the year prior to the year the levy is certified; to
186.31(2) $3,200 100 percent of the statewide adjusted net tax capacity equalizing factor.
186.32(c) A district's second tier equalized debt service levy equals the district's second tier
186.33debt service equalization revenue times the lesser of one or the ratio of:
187.1(1) the quotient derived by dividing the adjusted net tax capacity of the district for
187.2the year before the year the levy is certified by the adjusted pupil units in the district for
187.3the school year ending in the year prior to the year the levy is certified; to
187.4(2) $8,000 200 percent of the statewide adjusted net tax capacity equalizing factor.
187.5EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

187.6    Sec. 2. [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
187.7    Subdivision 1. Eligibility. All class 2a, 2b, and 2c property under section 273.13,
187.8subdivision 23, except for property consisting of the house, garage, and immediately
187.9surrounding one acre of land of an agricultural homestead, is eligible to receive the credit
187.10under this section.
187.11    Subd. 2. Credit amount. For each qualifying property, the school bond agricultural
187.12credit is equal to 66 percent of the property's eligible net tax capacity multiplied by the
187.13school debt tax rate determined under section 275.08, subdivision 1b.
187.14    Subd. 3. Credit reimbursements. The county auditor shall determine the tax
187.15reductions allowed under this section within the county for each taxes payable year and
187.16shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
187.17lists submitted under section 275.29. Any prior year adjustments shall also be certified on
187.18the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
187.19and may make such changes as are deemed necessary, or return the certification to the
187.20county auditor for correction. The credit under this section must be used to reduce the
187.21school district net tax capacity-based property tax as provided in section 273.1393.
187.22    Subd. 4. Payment. The commissioner of revenue shall certify the total of the tax
187.23reductions granted under this section for each taxes payable year within each school
187.24district to the commissioner of education, who shall pay the reimbursement amounts to
187.25each school district as provided in section 273.1392.
187.26EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

187.27    Sec. 3. Minnesota Statutes 2008, section 124D.4531, is amended to read:
187.28124D.4531 CAREER AND TECHNICAL LEVY AID.
187.29    Subdivision 1. Career and technical levy aid. (a) A district with a career and
187.30technical program approved under this section for the fiscal year in which the levy is
187.31certified may levy an amount is eligible for aid equal to the lesser of:
187.32(1) $80 $240 times the district's average daily membership in grades 10 through 12
187.33for the fiscal year in which the levy is certified; or
188.1(2) 25 percent of approved expenditures in the previous fiscal year in which the
188.2levy is certified for the following:
188.3(i) salaries paid to essential, licensed personnel providing direct instructional
188.4services to students in that fiscal year for services rendered in the district's approved
188.5career and technical education programs;
188.6(ii) contracted services provided by a public or private agency other than a Minnesota
188.7school district or cooperative center under subdivision 7;
188.8(iii) necessary travel between instructional sites by licensed career and technical
188.9education personnel;
188.10(iv) necessary travel by licensed career and technical education personnel for
188.11vocational student organization activities held within the state for instructional purposes;
188.12(v) curriculum development activities that are part of a five-year plan for
188.13improvement based on program assessment;
188.14(vi) necessary travel by licensed career and technical education personnel for
188.15noncollegiate credit-bearing professional development; and
188.16(vii) specialized vocational instructional supplies.
188.17(b) Up to ten percent of a district's career and technical levy aid may be spent on
188.18equipment purchases. Districts using the career and technical levy aid for equipment
188.19purchases must report to the department on the improved learning opportunities for
188.20students that result from the investment in equipment.
188.21(c) The district must recognize the full amount of this levy as revenue for the fiscal
188.22year in which it is certified.
188.23    Subd. 2. Allocation from cooperative centers and intermediate districts. For
188.24purposes of this section, a cooperative center or an intermediate district must allocate its
188.25approved expenditures for career and technical education programs among participating
188.26districts.
188.27    Subd. 3. Levy Aid guarantee. Notwithstanding subdivision 1, the career and
188.28technical education levy aid for a district is not less than the lesser of:
188.29(1) the district's career and technical education levy authority revenue for the
188.30previous fiscal year; or
188.31(2) 100 percent of the approved expenditures for career and technical programs
188.32included in subdivision 1, paragraph (b), for the prior fiscal year in which the levy is
188.33certified.
188.34    Subd. 4. District reports. Each district or cooperative center must report data to the
188.35department for all career and technical education programs as required by the department
188.36to implement the career and technical levy formula.
189.1EFFECTIVE DATE.This section is effective for aid payments for fiscal year
189.22014 and thereafter.

189.3    Sec. 4. Minnesota Statutes 2008, section 124D.59, subdivision 2, is amended to read:
189.4    Subd. 2. Pupil of limited English proficiency. (a) "Pupil of limited English
189.5proficiency" means a pupil in kindergarten through grade 12 who meets the following
189.6requirements:
189.7(1) the pupil, as declared by a parent or guardian first learned a language other than
189.8English, comes from a home where the language usually spoken is other than English, or
189.9usually speaks a language other than English; and
189.10(2) the pupil is determined by developmentally appropriate measures, which might
189.11include observations, teacher judgment, parent recommendations, or developmentally
189.12appropriate assessment instruments, to lack the necessary English skills to participate
189.13fully in classes taught in English.
189.14(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
189.15in a Minnesota public school on the dates during the previous school year when a
189.16commissioner provided assessment that measures the pupil's emerging academic English
189.17was administered, shall not be counted as a pupil of limited English proficiency in
189.18calculating limited English proficiency pupil units under section 126C.05, subdivision
189.1917 , and shall not generate state limited English proficiency aid under section 124D.65,
189.20subdivision 5 , unless the pupil scored below the state cutoff score on an assessment
189.21measuring emerging academic English provided by the commissioner during the previous
189.22school year.
189.23(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
189.24shall not be counted as a pupil of limited English proficiency in calculating limited English
189.25proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
189.26limited English proficiency aid under section 124D.65, subdivision 5, if:
189.27(1) the pupil is not enrolled during the current fiscal year in an educational program
189.28for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64;
189.29or.
189.30(2) the pupil has generated five or more years of average daily membership in
189.31Minnesota public schools since July 1, 1996.
189.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
189.33and later.

189.34    Sec. 5. Minnesota Statutes 2008, section 124D.65, subdivision 5, is amended to read:
190.1    Subd. 5. School district LEP revenue. (a) A district's limited English proficiency
190.2programs revenue equals the product of: (1) $700 in fiscal year 2004 and later times .2;
190.3(2) the basic formula allowance for that year; and (3) the greater of 20 or the adjusted
190.4marginal cost average daily membership of eligible pupils of limited English proficiency
190.5enrolled in the district during the current fiscal year.
190.6(b) A pupil ceases to generate state limited English proficiency aid in the school
190.7year following the school year in which the pupil attains the state cutoff score on a
190.8commissioner-provided assessment that measures the pupil's emerging academic English.
190.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
190.10and later.

190.11    Sec. 6. Minnesota Statutes 2008, section 125A.76, subdivision 5, is amended to read:
190.12    Subd. 5. School district special education aid. A school district's special education
190.13aid for fiscal year 2008 and later equals the state total special education aid times the ratio
190.14of the district's its initial special education aid to the state total initial special education aid.
190.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
190.16and later.

190.17    Sec. 7. Minnesota Statutes 2008, section 125A.79, subdivision 7, is amended to read:
190.18    Subd. 7. District special education excess cost aid. A district's special education
190.19excess cost aid for fiscal year 2002 and later equals the state total special education excess
190.20cost aid times the ratio of the district's its initial excess cost aid to the state total initial
190.21excess cost aid.
190.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
190.23and later.

190.24    Sec. 8. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision
190.25to read:
190.26    Subd. 2a. Adjusted net tax capacity equalizing factor. The adjusted net tax
190.27capacity equalizing factor equals the quotient derived by dividing the total adjusted net tax
190.28capacity of all school districts in the state for the year before the year the levy is certified
190.29by the total number of adjusted pupil units in the state for the current school year.
190.30EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

190.31    Sec. 9. Minnesota Statutes 2008, section 126C.01, is amended by adding a subdivision
190.32to read:
191.1    Subd. 3a. Referendum market value equalizing factor. The referendum market
191.2value equalizing factor equals the quotient derived by dividing the total referendum
191.3market value of all school districts in the state for the year before the year the levy is
191.4certified by the total number of resident pupil units in the state for the current school year.
191.5EFFECTIVE DATE.This section is effective for taxes payable in 2013.

191.6    Sec. 10. Minnesota Statutes 2008, section 126C.01, is amended by adding a
191.7subdivision to read:
191.8    Subd. 5a. Location equity index. (a) A school district's location equity index
191.9equals each district's composite wage level divided by the statewide average wage for the
191.10same period. The composite wage level for a school district equals the sum of 50 percent
191.11of the district's county wage level and 50 percent of the district's economic development
191.12region composite wage level. The composite wage level is computed by using the most
191.13recent three-year weighted wage data.
191.14(b) A school district's location equity index must not be less than .9 or greater than
191.151.05.
191.16(c) The commissioner of education annually must recalculate the indexes in this
191.17section. For purposes of this subdivision, the commissioner must locate a school district
191.18with boundaries that cross county borders in the county that generates the highest location
191.19equity index for that district.
191.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
191.21and later.

191.22    Sec. 11. Minnesota Statutes 2008, section 126C.05, subdivision 1, is amended to read:
191.23    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
191.24age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
191.25in average daily membership enrolled in the district of residence, in another district under
191.26sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
191.27section 124D.10; or for whom the resident district pays tuition under section 123A.18,
191.28123A.22 , 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
191.29124D.05 , 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
191.30subdivision.
191.31    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
191.32by the commissioner and has an individual education plan is counted as the ratio of the
191.33number of hours of assessment and education service to 825 times 1.25 with a minimum
191.34average daily membership of 0.28, but not more than 1.25 pupil units.
192.1    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
192.2counted as the ratio of the number of hours of assessment service to 825 times 1.25.
192.3    (c) A kindergarten pupil with a disability who is enrolled in a program approved
192.4by the commissioner is counted as the ratio of the number of hours of assessment and
192.5education services required in the fiscal year by the pupil's individual education program
192.6plan to 875, but not more than one.
192.7    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 1.0
192.8pupil units.
192.9    (e) A pupil who is in any of grades 1 to 3 is counted as 1.115 1.0 pupil units for
192.10fiscal year 2000 and thereafter.
192.11    (f) A pupil who is any of grades 4 to 6 is counted as 1.06 1.0 pupil units for fiscal
192.12year 1995 and thereafter.
192.13    (g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.0 pupil units.
192.14    (h) A pupil who is in the postsecondary enrollment options program is counted as
192.151.3 1.0 pupil units.
192.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
192.17and later.

192.18    Sec. 12. Minnesota Statutes 2008, section 126C.05, subdivision 3, is amended to read:
192.19    Subd. 3. Compensation revenue pupil units. Compensation revenue pupil units
192.20for fiscal year 1998 and thereafter must be computed according to this subdivision.
192.21(a) The compensation revenue concentration percentage for each building in a
192.22district equals the product of 100 times the ratio of:
192.23(1) the sum of the number of pupils enrolled in the building district eligible to receive
192.24free lunch plus one-half of the pupils eligible to receive reduced priced or reduced-price
192.25lunch on October 1 of the previous fiscal year; to
192.26(2) the number of pupils enrolled in the building district on October 1 of the
192.27previous fiscal year.
192.28(b) The compensation revenue pupil weighting factor for a building equals the
192.29lesser of one or the quotient obtained by dividing the building's compensation revenue
192.30concentration percentage by 80.0.
192.31(c) The compensation revenue pupil units for a building district equals the product of:
192.32(1) the sum of the number of pupils enrolled in the building district eligible to receive
192.33free lunch and one-half of the pupils eligible to receive reduced priced or reduced-price
192.34lunch on October 1 of the previous fiscal year; times
192.35(2) the compensation revenue pupil weighting factor for the building; times
193.1(3) .60 district.
193.2(d) Notwithstanding paragraphs (a) to (c), for charter schools and contracted
193.3alternative programs in the first year of operation, compensation revenue pupil units shall
193.4be computed using data for the current fiscal year. If the charter school or contracted
193.5alternative program begins operation after October 1, compensatory revenue pupil units
193.6shall be computed based on pupils enrolled on an alternate date determined by the
193.7commissioner, and the compensation revenue pupil units shall be prorated based on the
193.8ratio of the number of days of student instruction to 170 days.
193.9(e) The percentages in this subdivision must be based on the count of individual
193.10pupils and not on a building average or minimum.
193.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
193.12and later.

193.13    Sec. 13. Minnesota Statutes 2008, section 126C.05, subdivision 5, is amended to read:
193.14    Subd. 5. Adjusted pupil units. (a) Adjusted pupil units for a district or charter
193.15school means the sum of:
193.16(1) the number of pupil units served, according to subdivision 7, plus
193.17(2) pupil units according to subdivision 1 for whom the district or charter school
193.18pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
193.19123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65,
193.20minus
193.21(3) pupil units according to subdivision 1 for whom the district or charter school
193.22receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
193.23123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
193.24(b) Adjusted marginal cost pupil units means the greater of:
193.25(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
193.26year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
193.27(2) the number of adjusted pupil units defined in paragraph (a) for the current school
193.28year.
193.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
193.30and later.

193.31    Sec. 14. Minnesota Statutes 2008, section 126C.05, subdivision 6, is amended to read:
193.32    Subd. 6. Resident pupil units. (a) Resident pupil units for a district means the
193.33number of pupil units according to subdivision 1 residing in the district.
193.34(b) Resident marginal cost pupil units means the greater of:
194.1(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
194.2and .23 times the pupil units defined in paragraph (a) for the previous school year; or
194.3(2) the number of resident pupil units defined in paragraph (a) for the current school
194.4year.
194.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
194.6and later.

194.7    Sec. 15. Minnesota Statutes 2008, section 126C.05, subdivision 8, is amended to read:
194.8    Subd. 8. Average daily membership. (a) Membership for pupils in grades
194.9kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the
194.10number of pupils on the current roll of the school, counted from the date of entry until
194.11withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves
194.12the school or the date it is officially known that the pupil has left or has been legally
194.13excused. However, a pupil, regardless of age, who has been absent from school for 15
194.14consecutive school days during the regular school year or for five consecutive school days
194.15during summer school or intersession classes of flexible school year programs without
194.16receiving instruction in the home or hospital shall be dropped from the roll and classified
194.17as withdrawn. Nothing in this section shall be construed as waiving the compulsory
194.18attendance provisions cited in section 120A.22. Average daily membership equals the
194.19sum for all pupils of the number of days of the school year each pupil is enrolled in the
194.20district's schools divided by the number of days the schools are in session. Days of
194.21summer school or intersession classes of flexible school year programs are only included
194.22in the computation of membership for pupils with a disability not appropriately served
194.23primarily in the regular classroom. A student must not be counted as more than 1.2 pupils
194.24in average daily membership under this section. When the initial total average daily
194.25membership exceeds 1.2 for a pupil enrolled in more than one school district during the
194.26fiscal year, each district's average daily membership must be reduced proportionately.
194.27(b) A student must not be counted as more than one pupil in average daily
194.28membership except for purposes of section 126C.10, subdivision 2a.
194.29(c) For purposes of section 126C.10, subdivision 2a, only, a pupil's average daily
194.30membership is counted as 1.0 once a kindergarten or elementary pupil has received 960
194.31hours of instruction during the school year and as 1.0 once a secondary student has
194.32received 1,050 hours of instruction during the school year.
194.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
194.34and later.

195.1    Sec. 16. Minnesota Statutes 2008, section 126C.05, subdivision 16, is amended to read:
195.2    Subd. 16. Free and reduced-price lunches. The commissioner shall determine the
195.3number of children eligible to receive either a free or reduced-price lunch on October 1
195.4each year. Children enrolled in a building on October 1 and determined to be eligible to
195.5receive free or reduced-price lunch by December 15 of that school year shall be counted
195.6as eligible on October 1 for purposes of subdivision 3. The commissioner may use
195.7federal definitions for these purposes and may adjust these definitions as appropriate.
195.8The commissioner may adopt reporting guidelines to assure accuracy of data counts and
195.9eligibility. Districts shall use any guidelines adopted by the commissioner.
195.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
195.11and later.

195.12    Sec. 17. Minnesota Statutes 2008, section 126C.05, subdivision 17, is amended to read:
195.13    Subd. 17. LEP pupil units. (a) Limited English proficiency pupil units for fiscal
195.14year 2004 and thereafter shall be determined according to this subdivision.
195.15(b) The limited English proficiency concentration percentage for a district equals the
195.16product of 100 times the ratio of:
195.17(1) means the number of eligible pupils of limited English proficiency in average
195.18daily membership enrolled in the district during the current fiscal year; to.
195.19(2) the number of pupils in average daily membership enrolled in the district.
195.20(c) The limited English proficiency pupil units for each eligible pupil of limited
195.21English proficiency in average daily membership equals the lesser of one or the quotient
195.22obtained by dividing the limited English proficiency concentration percentage for the
195.23pupil's district of enrollment by 11.5.
195.24(d) (b) Limited English proficiency pupil units shall be counted by the district of
195.25enrollment.
195.26(e) (c) Notwithstanding paragraph (d) (b), for the purposes of this subdivision,
195.27pupils enrolled in a cooperative or intermediate school district shall be counted by the
195.28district of residence.
195.29(f) (d) For the purposes of this subdivision, the terms defined in section 124D.59
195.30have the same meaning.
195.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
195.32and later.

195.33    Sec. 18. [126C.09] EDUCATION FUNDING FRAMEWORK.
196.1    Subdivision 1. Basic formula framework; general classroom funding. The
196.2general classroom funding for each school district equals the sum of the district's general
196.3education basic revenue, extended time revenue, compensatory revenue, LEP revenue,
196.4referendum replacement revenue, and special education revenue.
196.5    Subd. 2. District instructional services. A school district's instructional services
196.6revenue equals the sum of its operating sparsity revenue, location equity revenue, and
196.7declining enrollment revenue.
196.8    Subd. 3. District support services. A school district's support services revenue
196.9equals the sum of its operating capital revenue, alternative facilities revenue, integration
196.10revenue, and transportation revenue.
196.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
196.12and later.

196.13    Sec. 19. Minnesota Statutes 2008, section 126C.10, subdivision 1, is amended to read:
196.14    Subdivision 1. General education revenue. (a) For fiscal year 2006 and later
196.15through 2013, the general education revenue for each district equals the sum of the
196.16district's basic revenue, extended time revenue, gifted and talented revenue, basic skills
196.17revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
196.18revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
196.19alternative teacher compensation revenue, and transition revenue.
196.20(b) For fiscal years 2014 and later, a school district's general education revenue
196.21equals the sum of its basic revenue, extended time revenue, declining enrollment revenue,
196.22basic skills revenue, location equity revenue, referendum replacement revenue, secondary
196.23sparsity revenue, elementary sparsity revenue, transportation revenue, and total operating
196.24capital revenue.
196.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
196.26and later.

196.27    Sec. 20. Minnesota Statutes 2008, section 126C.10, subdivision 2, is amended to read:
196.28    Subd. 2. Basic revenue. (a) The basic revenue for each district equals the formula
196.29allowance times the adjusted marginal cost pupil units for the school year.
196.30(b) The formula allowance for fiscal year 2007 is $4,974. The formula allowance for
196.31fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 and subsequent
196.32years is $5,124.
196.33(c) The formula allowance for fiscal year 2014 is $7,500. The formula allowance
196.34for fiscal year 2015 and later equals the formula allowance for the previous year times
197.1the sum of 1.0 and the greater of zero or the ratio of implicit price deflator, as defined in
197.2section 275.70, subdivision 2, for the most recent year to the implicit price deflator for
197.3the previous year.
197.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
197.5and later.

197.6    Sec. 21. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:
197.7    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue
197.8is equal to the product of $4,601 the formula allowance for that year and the sum of
197.9the adjusted marginal cost pupil units of the district for each pupil in average daily
197.10membership in excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
197.11(b) A school district's extended time revenue may be used for extended day
197.12programs, extended week programs, summer school, and other programming authorized
197.13under the learning year program.
197.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
197.15and later.

197.16    Sec. 22. Minnesota Statutes 2008, section 126C.10, is amended by adding a
197.17subdivision to read:
197.18    Subd. 2c. Declining enrollment revenue. A school district's declining enrollment
197.19revenue equals the greater of zero or the product of: (1) the basic formula allowance for
197.20that year; and (2) the difference between the mean average adjusted pupil units for the
197.21three preceding years and the adjusted pupil units for the current year.
197.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
197.23and later.

197.24    Sec. 23. Minnesota Statutes 2008, section 126C.10, is amended by adding a
197.25subdivision to read:
197.26    Subd. 2d. Location equity revenue. A school district's location equity revenue
197.27equals the product of:
197.28(1) .50;
197.29(2) the basic formula allowance for that year;
197.30(3) the district's adjusted pupil units for that year; and
197.31(4) the district's location equity index minus .9.
197.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
197.33and later.

198.1    Sec. 24. Minnesota Statutes 2008, section 126C.10, is amended by adding a
198.2subdivision to read:
198.3    Subd. 2e. Referendum replacement revenue. A school district's referendum
198.4replacement revenue equals $500 times the district's adjusted pupil units for that year.
198.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
198.6and later.

198.7    Sec. 25. Minnesota Statutes 2008, section 126C.10, subdivision 3, is amended to read:
198.8    Subd. 3. Compensatory education revenue. (a) The compensatory education
198.9revenue for each building in the district equals the greater of: (1) $2,500 times the district's
198.10enrollment of students eligible for free or reduced-price meals under section 126C.05,
198.11subdivision 3, paragraph (a), clause (1); or (2) 40 percent of the formula allowance minus
198.12$415 times the compensation revenue pupil units computed according to section 126C.05,
198.13subdivision 3 . Revenue shall be paid to the district and must be allocated according to
198.14section 126C.15, subdivision 2.
198.15(b) When the district contracting with an alternative program under section 124D.69
198.16changes prior to the start of a school year, the compensatory revenue generated by pupils
198.17attending the program shall be paid to the district contracting with the alternative program
198.18for the current school year, and shall not be paid to the district contracting with the
198.19alternative program for the prior school year.
198.20(c) When the fiscal agent district for an area learning center changes prior to the start
198.21of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
198.22current school year, and shall not be paid to the fiscal agent district for the prior school year.
198.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
198.24and later.

198.25    Sec. 26. Minnesota Statutes 2008, section 126C.10, subdivision 4, is amended to read:
198.26    Subd. 4. Basic skills revenue. A school district's basic skills revenue equals the
198.27sum of:
198.28(1) compensatory revenue under subdivision 3; plus
198.29(2) limited English proficiency revenue under section 124D.65, subdivision 5; plus.
198.30(3) $250 times the limited English proficiency pupil units under section 126C.05,
198.31subdivision 17 .
198.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
198.33and later.

199.1    Sec. 27. Minnesota Statutes 2008, section 126C.10, subdivision 6, is amended to read:
199.2    Subd. 6. Definitions. The definitions in this subdivision apply only to subdivisions
199.37 and 8.
199.4(a) "High school" means a public secondary school, except a charter school under
199.5section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If
199.6there is no high school in the district and the school is at least 19 15 miles from the next
199.7nearest school, the commissioner must designate one school in the district as a high school
199.8for the purposes of this section.
199.9(b) "Secondary average daily membership" means, for a district that has only one
199.10high school, the average daily membership of pupils served in grades 7 through 12. For a
199.11district that has more than one high school, "secondary average daily membership" for
199.12each high school means the product of the average daily membership of pupils served in
199.13grades 7 through 12 in the high school, times the ratio of six to the number of grades
199.14in the high school.
199.15(c) "Attendance area" means the total surface area of the district, in square miles,
199.16divided by the number of high schools in the district. For a district that does not operate
199.17a high school and is less than 19 15 miles from the nearest operating high school, the
199.18attendance area equals zero.
199.19(d) "Isolation index" for a high school means the square root of 55 percent of the
199.20attendance area plus the distance in miles, according to the usually traveled routes,
199.21between the high school and the nearest high school. For a district in which there is located
199.22land defined in section 84A.01, 84A.20, or 84A.31, the distance in miles is the sum of:
199.23(1) the square root of one-half of the attendance area; and
199.24(2) the distance from the border of the district to the nearest high school.
199.25(e) "Qualifying high school" means a high school that has an isolation index greater
199.26than 23 and that has secondary average daily membership of less than 400.
199.27(f) "Qualifying elementary school" means a public elementary school, except a
199.28charter school under section 124D.10, that is located 19 15 miles or more from the nearest
199.29elementary school or from the nearest elementary school within the district and, in either
199.30case, has an elementary average daily membership of an average of 20 or fewer per grade.
199.31(g) "Elementary average daily membership" means, for a district that has only
199.32one elementary school, the average daily membership of pupils served in kindergarten
199.33through grade 6. For a district that has more than one elementary school, "average daily
199.34membership" for each school means the average daily membership of pupils served in
199.35kindergarten through grade 6 multiplied by the ratio of seven to the number of grades
199.36in the elementary school.
200.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
200.2and later.

200.3    Sec. 28. Minnesota Statutes 2008, section 126C.10, subdivision 13, is amended to read:
200.4    Subd. 13. Total operating capital and technology revenue. (a) Total operating
200.5capital revenue for a district equals: (1) $50 times the adjusted pupil units for the school
200.6year for technology purposes; (2) for any district not participating in the alternative
200.7facilities program under section 123B.59, $600 times the adjusted pupil units for deferred
200.8maintenance and health and safety purposes under sections 123B.57 and 123B.59; (3) the
200.9amount determined under paragraph (b) or (c), plus $73; and (4) $100 times the adjusted
200.10marginal cost pupil units for the school year. The revenue must be placed in a reserved
200.11account in the general fund and may only be used according to subdivision 14.
200.12(b) Capital revenue for a district equals $100 times the district's maintenance cost
200.13index times its adjusted marginal cost pupil units for the school year.
200.14(c) The revenue for a district that operates a program under section 124D.128, is
200.15increased by an amount equal to $30 times the number of marginal cost adjusted pupil
200.16units served at the site where the program is implemented.
200.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
200.18and later.

200.19    Sec. 29. Minnesota Statutes 2008, section 126C.10, subdivision 14, is amended to read:
200.20    Subd. 14. Uses of total operating capital revenue. Technology revenue may only
200.21be used for purposes in clauses (18), (19), (21), (23), and (24). Total operating capital
200.22revenue may be used only for the following purposes:
200.23(1) to acquire land for school purposes;
200.24(2) to acquire or construct buildings for school purposes;
200.25(3) to rent or lease buildings, including the costs of building repair or improvement
200.26that are part of a lease agreement;
200.27(4) to improve and repair school sites and buildings, and equip or reequip school
200.28buildings with permanent attached fixtures, including library media centers;
200.29(5) for a surplus school building that is used substantially for a public nonschool
200.30purpose;
200.31(6) to eliminate barriers or increase access to school buildings by individuals with a
200.32disability;
200.33(7) to bring school buildings into compliance with the State Fire Code adopted
200.34according to chapter 299F;
201.1(8) to remove asbestos from school buildings, encapsulate asbestos, or make
201.2asbestos-related repairs;
201.3(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
201.4(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
201.5or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
201.6in section 296A.01;
201.7(11) for energy audits for school buildings and to modify buildings if the audit
201.8indicates the cost of the modification can be recovered within ten years;
201.9(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
201.10(13) to pay special assessments levied against school property but not to pay
201.11assessments for service charges;
201.12(14) to pay principal and interest on state loans for energy conservation according to
201.13section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
201.14Fund Act according to sections 298.292 to 298.298;
201.15(15) to purchase or lease interactive telecommunications equipment;
201.16(16) by board resolution, to transfer money into the debt redemption fund to: (i)
201.17pay the amounts needed to meet, when due, principal and interest payments on certain
201.18obligations issued according to chapter 475; or (ii) pay principal and interest on debt
201.19service loans or capital loans according to section 126C.70;
201.20(17) to pay operating capital-related assessments of any entity formed under a
201.21cooperative agreement between two or more districts;
201.22(18) to purchase or lease computers and related materials, copying machines,
201.23telecommunications equipment, and other noninstructional equipment;
201.24(19) to purchase or lease assistive technology or equipment for instructional
201.25programs;
201.26(20) to purchase textbooks;
201.27(21) to purchase new and replacement library media resources or technology;
201.28(22) to purchase vehicles;
201.29(23) to purchase or lease telecommunications equipment, computers, and related
201.30equipment for integrated information management systems for:
201.31(i) managing and reporting learner outcome information for all students under a
201.32results-oriented graduation rule;
201.33(ii) managing student assessment, services, and achievement information required
201.34for students with individual education plans; and
201.35(iii) other classroom information management needs; and
202.1(24) to pay personnel costs directly related to the acquisition, operation, and
202.2maintenance of telecommunications systems, computers, related equipment, and network
202.3and applications software.
202.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014.

202.5    Sec. 30. Minnesota Statutes 2008, section 126C.10, subdivision 18, is amended to read:
202.6    Subd. 18. Transportation sparsity revenue allowance. (a) A district's
202.7transportation sparsity allowance equals the greater of zero or the result of the following
202.8computation:
202.9(i) Multiply the formula allowance according to subdivision 2, by .1469.
202.10(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
202.1126/100 power.
202.12(iii) Multiply the result in clause (ii) by the district's density index raised to the
202.1313/100 power.
202.14(iv) Multiply the formula allowance according to subdivision 2, by .0485.
202.15(v) Subtract the result in clause (iv) from the result in clause (iii).
202.16(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
202.17times the adjusted marginal cost pupil units.
202.18EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

202.19    Sec. 31. Minnesota Statutes 2008, section 126C.10, is amended by adding a
202.20subdivision to read:
202.21    Subd. 18a. Transportation revenue. (a) A school district's transportation revenue
202.22equals the sum of its transportation sparsity revenue, hazardous transportation revenue,
202.23and bus purchase revenue.
202.24(b) A school district's transportation sparsity revenue equals its transportation
202.25sparsity allowance times its adjusted pupil units for that year.
202.26(c) A school district's hazardous transportation aid equals the amount necessary to
202.27provide transportation services to students facing hazardous transportation conditions. A
202.28district's hazardous transportation aid must not exceed 20 percent of the district's total
202.29regular to and from school transportation costs for that year. For any year, a school
202.30district may receive aid under this paragraph only after the school board has considered
202.31the comprehensive plan for hazardous transportation submitted by the district's pupil
202.32transportation safety committee at a regularly scheduled meeting of the school board. The
202.33comprehensive plan may not be adopted until after the board has allowed the public
202.34reasonable time to testify on the plan.
203.1(d) A school district's bus purchase revenue equals five percent of the district's
203.2spending on transportation services for the previous fiscal year.
203.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
203.4and later.

203.5    Sec. 32. [126C.115] INNOVATION REVENUE.
203.6    (a) A school district must use its innovation revenue to implement evidence-based
203.7innovation premised on research-based curriculum and instruction and other education
203.8programs and practices, including best teaching practices, that are known to improve
203.9academic performance for diverse groups of students. If a school district's growth in
203.10academic performance, as measured by a growth-based value-added system, is below the
203.11established progress levels, the school district must submit a plan to the commissioner,
203.12developed in consultation with interested parents, that describes how the district proposes
203.13to use its innovation revenue to supplement state reading requirements under section
203.14120B.12, subdivision 1, and state math and science requirements under section 120B.023,
203.15subdivision 2, paragraphs (b) and (d), and improve student outcomes. The plan must:
203.16    (1) identify specific education goals, consistent with this section, and the indicators
203.17to demonstrate progress toward achieving those goals, which may include a value-added
203.18assessment model under sections 120B.35 and 120B.362;
203.19    (2) supplement current district initiatives that may transform district programs and
203.20practices sufficient to significantly improve student outcomes; and
203.21    (3) demonstrate how innovation revenue helps narrow and eliminate differences in
203.22student academic achievement in reading, math, and science based on student measures of
203.23mobility, attendance, race and ethnicity, gender, English language learner status, eligibility
203.24for free or reduced price lunch, and special education, among other outcomes.
203.25    (b) After transmitting its plan to the commissioner, a district must spend its
203.26innovation revenue effectively and efficiently, consistent with its plan. A school district
203.27that submits an innovation revenue plan under paragraph (a) must report annually by June
203.2830 to the commissioner and post on the district's official Web site reliable and accessible
203.29information and supporting longitudinal data showing the amount of progress the district
203.30made in the immediately preceding school year and previous school years in realizing its
203.31innovation revenue goals. The commissioner must analyze the data from the annual
203.32district reports and post the analysis on the department's official Web site.
203.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
203.34and later.

204.1    Sec. 33. Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read:
204.2    Subd. 4. General education aid. For fiscal years 2007 and later, A district's general
204.3education aid is the sum of the following amounts equals its:
204.4    (1) general education revenue, excluding equity revenue, total operating capital
204.5revenue, alternative teacher compensation revenue, and transition revenue;
204.6    (2) operating capital aid under section 126C.10, subdivision 13b;
204.7    (3) equity aid under section 126C.10, subdivision 30;
204.8    (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
204.9    (5) transition aid under section 126C.10, subdivision 33 for that year;
204.10    (6) (2) shared time aid under section 126C.01, subdivision 7;
204.11    (7) (3) referendum aid under section 126C.17, subdivisions 7 and 7a; and
204.12    (8) (4) online learning aid according to section 124D.096.
204.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
204.14and later.

204.15    Sec. 34. Minnesota Statutes 2008, section 126C.13, subdivision 5, is amended to read:
204.16    Subd. 5. Uses of revenue. Except as provided in sections 126C.10, subdivision
204.1714 ; 126C.12; and 126C.15, (a) General education revenue may be used during the
204.18regular school year and the summer for general and special school purposes and for
204.19prekindergarten programs except as limited by paragraph (b).
204.20(b) General education revenue set-asides include:
204.21(1) 1.0 percent of basic revenue must be used only for gifted and talented activities
204.22consistent with section 120B.15;
204.23(2) 5.0 percent of basic revenue must be used only to implement a district's
204.24innovative revenue program activities under section 126C.115;
204.25(3) basic skills revenue must be used according to section 126C.15; and
204.26(4) operating capital revenue must be spent according to section 126C.10,
204.27subdivision 14.
204.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
204.29and later.

204.30    Sec. 35. Minnesota Statutes 2008, section 126C.17, subdivision 1, is amended to read:
204.31    Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
204.32initial referendum revenue allowance equals the sum of the allowance under section
204.33126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
204.34unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
205.1plus the referendum conversion allowance approved under subdivision 13, minus $415.
205.2For districts with more than one referendum authority, the reduction must be computed
205.3separately for each authority. The reduction must be applied first to the referendum
205.4conversion allowance and next to the authority with the earliest expiration date. A
205.5district's initial referendum revenue allowance may not be less than zero.
205.6(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
205.7referendum allowance plus any additional allowance per resident marginal cost pupil unit
205.8authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
205.9fiscal year 2003 and later.
205.10(c) For fiscal year 2004 and later, A district's referendum revenue allowance equals
205.11the sum of:
205.12(1) the product of (i) the ratio of the resident marginal cost pupil units the district
205.13would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
205.14to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the greater
205.15of zero or the district's initial referendum allowance plus any additional allowance per
205.16resident marginal cost pupil unit authorized under subdivision 9 between April 30, 2001,
205.17and May 30, 2003, for fiscal year 2003 and later 2014 less $500, plus
205.18(2) any additional allowance per resident marginal cost pupil unit authorized under
205.19subdivision 9 after May 30, 2003 2012, for fiscal year 2005 2014 and later.
205.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
205.21and later.

205.22    Sec. 36. Minnesota Statutes 2008, section 126C.17, subdivision 5, is amended to read:
205.23    Subd. 5. Referendum equalization revenue. (a) For fiscal year 2003 and later,
205.24A district's referendum equalization revenue equals the sum of the first tier referendum
205.25equalization revenue and the second tier referendum equalization revenue.
205.26(b) A district's first tier referendum equalization revenue equals the district's first
205.27tier referendum equalization allowance times the district's resident marginal cost pupil
205.28units for that year.
205.29(c) For fiscal year 2006, a district's first tier referendum equalization allowance
205.30equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
205.31fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
205.32of the district's referendum allowance under subdivision 1 or $600.
205.33For fiscal year 2008 and later, (b) A district's first tier referendum equalization
205.34allowance equals the lesser of the district's referendum allowance under subdivision 1
205.35or $700.
206.1(d) (c) A district's second tier referendum equalization revenue equals the district's
206.2second tier referendum equalization allowance times the district's resident marginal cost
206.3pupil units for that year.
206.4(e) For fiscal year 2006, a district's second tier referendum equalization allowance
206.5equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
206.6of the formula allowance, minus the district's first tier referendum equalization allowance.
206.7For fiscal year 2007 and later, (d) A district's second tier referendum equalization
206.8allowance equals the lesser of the district's referendum allowance under subdivision 1 or
206.926 percent of the formula allowance, minus the district's first tier referendum equalization
206.10allowance.
206.11(f) (e) Notwithstanding paragraph (e) (d), the second tier referendum allowance for a
206.12district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
206.13elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
206.14referendum allowance under subdivision 1 minus the district's first tier referendum
206.15equalization allowance.
206.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014.

206.17    Sec. 37. Minnesota Statutes 2008, section 126C.17, subdivision 6, is amended to read:
206.18    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
206.19A district's referendum equalization levy equals the sum of the first tier referendum
206.20equalization levy and the second tier referendum equalization levy.
206.21(b) A district's first tier referendum equalization levy equals the district's first tier
206.22referendum equalization revenue times the lesser of one or the ratio of the district's
206.23referendum market value per resident marginal cost pupil unit to $476,000 100 percent of
206.24the statewide referendum market value equalizing factor.
206.25(c) A district's second tier referendum equalization levy equals the district's second
206.26tier referendum equalization revenue times the lesser of one or the ratio of the district's
206.27referendum market value per resident marginal cost pupil unit to $270,000 60 percent of
206.28the statewide referendum market value equalizing factor.
206.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014.

206.30    Sec. 38. Minnesota Statutes 2008, section 126C.20, is amended to read:
206.31126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
206.32There is annually appropriated from the general fund to the department the amount
206.33amounts necessary for: (1) general education aid; (2) special education aid; (3) debt
206.34service aid; and (4) the school bond agricultural credit. This amount These amounts must
207.1be reduced by the amount of any money specifically appropriated for the same purpose
207.2in any year from any state fund.
207.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
207.4and later.

207.5    Sec. 39. Minnesota Statutes 2008, section 126C.40, subdivision 1, is amended to read:
207.6    Subdivision 1. To lease building or land. (a) When an independent or a special
207.7school district or a group of independent or special school districts finds it economically
207.8advantageous to rent or lease a building or land for any instructional purposes or
207.9administrative purpose, or for school storage or furniture repair, and it determines that
207.10the operating capital revenue authorized under section 126C.10, subdivision 13, is
207.11insufficient for this purpose, it may apply to the commissioner for permission to make
207.12an additional capital expenditure levy for this purpose. An application for permission to
207.13levy under this subdivision must contain financial justification for the proposed levy, the
207.14terms and conditions of the proposed lease, and a description of the space to be leased
207.15and its proposed use.
207.16    (b) The criteria for approval of applications to levy under this subdivision must
207.17include: the reasonableness of the price, the appropriateness of the space to the proposed
207.18activity, the feasibility of transporting pupils to the leased building or land, conformity
207.19of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
207.20the proposed lease to the space needs and the financial condition of the district. The
207.21commissioner must not authorize a levy under this subdivision in an amount greater than
207.22the cost to the district of renting or leasing a building or land for approved purposes.
207.23The proceeds of this levy must not be used for custodial or other maintenance services.
207.24A district may not levy under this subdivision for the purpose of leasing or renting a
207.25district-owned building or site to itself.
207.26    (c) For agreements finalized after July 1, 1997, a district may not levy under this
207.27subdivision for the purpose of leasing: (1) a newly constructed building used primarily
207.28for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
207.29building addition or additions used primarily for regular kindergarten, elementary, or
207.30secondary instruction that contains more than 20 percent of the square footage of the
207.31previously existing building.
207.32    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
207.33purpose of leasing or renting a district-owned building or site to itself only if the amount
207.34is needed by the district to make payments required by a lease purchase agreement,
207.35installment purchase agreement, or other deferred payments agreement authorized by law,
208.1and the levy meets the requirements of paragraph (c). A levy authorized for a district by
208.2the commissioner under this paragraph may be in the amount needed by the district to
208.3make payments required by a lease purchase agreement, installment purchase agreement,
208.4or other deferred payments agreement authorized by law, provided that any agreement
208.5include a provision giving the school districts the right to terminate the agreement
208.6annually without penalty.
208.7    (e) The total levy under this subdivision for a district for any year must not exceed
208.8$150 times the resident pupil units for the fiscal year to which the levy is attributable.
208.9    (f) For agreements for which a review and comment have been submitted to the
208.10Department of Education after April 1, 1998, the term "instructional purpose" as used in
208.11this subdivision excludes expenditures on stadiums.
208.12    (g) The commissioner of education may authorize a school district to exceed the
208.13limit in paragraph (e) if the school district petitions the commissioner for approval. The
208.14commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
208.15for not more than five years if the district meets the following criteria:
208.16    (1) the school district has been experiencing pupil enrollment growth in the
208.17preceding five years;
208.18    (2) the purpose of the increased levy is in the long-term public interest;
208.19    (3) the purpose of the increased levy promotes colocation of government services;
208.20and
208.21    (4) the purpose of the increased levy is in the long-term interest of the district by
208.22avoiding over construction of school facilities.
208.23    (h) A school district that is a member of an intermediate school district may include
208.24in its authority under this section the costs associated with leases of administrative and
208.25classroom space for intermediate school district programs. This authority must not
208.26exceed $43 $50 times the adjusted marginal cost pupil units of the member districts. This
208.27authority is in addition to any other authority authorized under this section.
208.28    (i) In addition to the allowable capital levies in paragraph (a), a district that is a
208.29member of the "Technology and Information Education Systems" data processing joint
208.30board, that finds it economically advantageous to enter into a lease purchase agreement for
208.31a building for a group of school districts or special school districts for staff development
208.32purposes, may levy for its portion of lease costs attributed to the district within the total
208.33levy limit in paragraph (e).
208.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
208.35and later.

209.1    Sec. 40. Minnesota Statutes 2008, section 127A.51, is amended to read:
209.2127A.51 STATEWIDE AVERAGE REVENUE.
209.3By October 1 of each year the commissioner must estimate the statewide average
209.4adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted
209.5general revenue among pupils and districts by computing the ratio of the 95th percentile
209.6to the fifth percentile of adjusted general revenue. The commissioner must provide that
209.7information to all districts.
209.8If the disparity in adjusted general revenue as measured by the ratio of the 95th
209.9percentile to the fifth percentile increases in any year, the commissioner shall recommend
209.10to the legislature options for change in the general education formula that will limit the
209.11disparity in adjusted general revenue to no more than the disparity for the previous
209.12school year. The commissioner must submit the recommended options to the education
209.13committees of the legislature by January 15.
209.14For purposes of this section and section 126C.10, adjusted general revenue means:
209.15(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
209.162 ; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
209.17under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
209.18equity revenue under section 126C.10, subdivisions 24a and 24b; and
209.19(2) for fiscal year 2003 and later through 2013, the sum of basic revenue under
209.20section 126C.10, subdivision 2; referendum revenue under section 126C.17; and equity
209.21revenue under section 126C.10, subdivisions 24a and 24b.; and
209.22(3) for fiscal year 2014 and later, the sum of basic revenue under section 126C.10,
209.23subdivision 2, and referendum revenue under section 126C.17.
209.24EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

209.25    Sec. 41. PHASE-IN.
209.26    Subdivision 1. Baseline revenue. A school district's baseline revenue equals the
209.27revenue amounts for the aid appropriations calculated under Minnesota Statutes, section
209.28126C.20, calculated using the current year's data and the revenue formulas in place in
209.29Minnesota Statutes 2008.
209.30    Subd. 2. New revenue. A school district's new revenue equals the revenue amounts
209.31for the aid appropriations calculated under Minnesota Statutes, section 126C.20, calculated
209.32using the current year's data and the revenue formulas in place under this act.
209.33    Subd. 3. Phase-in schedule. A school district's revenue amounts for the revenue
209.34formulas listed in subdivisions 1 and 2 equals the district's baseline revenue plus the
210.1percent of the difference specified in subdivision 6 multiplied by the number of years
210.2of the phase in specified in subdivision 7.
210.3    Subd. 4. Aid. A school district's aid entitlement for the formulas listed under
210.4this act equals the district's baseline aid plus the phase-in percentage times the new aid
210.5amounts calculated under this act.
210.6    Subd. 5. Levy. A school district levy for the formulas listed in this act equals the
210.7levy for the same formulas calculated under Minnesota Statutes 2008, and the phase-in
210.8percentage times the new revenue amounts for the levy calculated under this act.
210.9    Subd. 6. Percentage. The phase-in percentage equals 25 percent.
210.10    Subd. 7. Years of phase-in. The new revenue under this section is phased in over
210.11four years.
210.12EFFECTIVE DATE.This section is effective July 1, 2013.

210.13    Sec. 42. REVISOR'S INSTRUCTION.
210.14In the year 2014 and subsequent editions of Minnesota Statutes, the revisor of statutes
210.15shall change all references to "adjusted marginal cost pupil units" to "adjusted pupil units"
210.16and all references to "resident marginal cost pupil units" to "resident pupil units."
210.17EFFECTIVE DATE.This section is effective July 1, 2013.

210.18    Sec. 43. REPEALER.
210.19Minnesota Statutes 2008, sections 123B.54; 123B.57, subdivisions 3, 4, and 5;
210.20123B.591; 125A.76, subdivision 4; 125A.79, subdivision 6; 126C.10, subdivisions 2b,
210.2113a, 13b, 24, 25, 26, 27, 28, 29, 30, 31, 31a, 31b, 32, 33, 34, 35, and 36; 126C.12;
210.22126C.126; and 127A.50, are repealed.
210.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014.


210.26    Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, as amended by
210.27Laws 2008, chapter 363, article 3, section 1, is amended to read:
210.28    Subd. 2. General education aid. For general education aid under Minnesota
210.29Statutes, section 126C.13, subdivision 4:

210.30		$	5,600,647,000	.....	2008
210.31 210.32		$	5,649,098,000 5,644,263,000	.....	2009

211.1    The 2008 appropriation includes $536,251,000 for 2007 and $5,064,396,000 for
211.22008.
211.3    The 2009 appropriation includes $543,752,000 $533,760,000 for 2008 and
211.4$5,105,346,000 $5,110,503,000 for 2009.

211.5    Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 6, as amended by
211.6Laws 2008, chapter 363, article 3, section 5, is amended to read:
211.7    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
211.8Statutes, section 123A.485:

211.9		$	240,000	.....	2008
211.10		$	339,00021,000	.....	2009

211.11    The 2008 appropriation includes $43,000 for 2007 and $197,000 for 2008.
211.12    The 2009 appropriation includes $21,000 for 2008 and $318,000 $0 for 2009.

211.13    Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 8, as amended by
211.14Laws 2008, chapter 363, article 3, section 7, is amended to read:
211.15    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
211.16under Minnesota Statutes, section 123B.92, subdivision 9:

211.17		$	20,755,000	.....	2008
211.18 211.19		$	21,007,000 20,739,000	.....	2009

211.20    The 2008 appropriation includes $2,124,000 for 2007 and $18,631,000 for 2008.
211.21    The 2009 appropriation includes $2,070,000 $2,037,000 for 2008 and $18,937,000
211.22$18,702,000 for 2009.

211.23    Sec. 4. Laws 2007, chapter 146, article 2, section 46, subdivision 6, as amended by
211.24Laws 2008, chapter 363, article 3, section 11, is amended to read:
211.25    Subd. 6. Interdistrict desegregation or integration transportation grants. For
211.26interdistrict desegregation or integration transportation grants under Minnesota Statutes,
211.27section 124D.87:

211.28		$	9,901,000	.....	2008
211.29 211.30		$	11,881,000 11,947,000	.....	2009

211.31    Sec. 5. Laws 2007, chapter 146, article 3, section 24, subdivision 4, as amended by
211.32Laws 2008, chapter 363, article 3, section 14, is amended to read:
211.33    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
211.34services under Minnesota Statutes, section 125A.75, subdivision 1:

212.1		$	207,000	.....	2008
212.2		$	227,000237,000	.....	2009

212.3    The 2008 appropriation includes $22,000 for 2007 and $185,000 for 2008.
212.4    The 2009 appropriation includes $20,000 $21,000 for 2008 and $207,000 $216,000
212.5for 2009.

212.6    Sec. 6. Laws 2007, chapter 146, article 4, section 16, subdivision 2, as amended by
212.7Laws 2008, chapter 363, article 3, section 15, is amended to read:
212.8    Subd. 2. Health and safety revenue. For health and safety aid according to
212.9Minnesota Statutes, section 123B.57, subdivision 5:

212.10		$	254,000	.....	2008
212.11		$	103,000119,000	.....	2009

212.12    The 2008 appropriation includes $20,000 for 2007 and $234,000 for 2008.
212.13    The 2009 appropriation includes $26,000 $23,000 for 2008 and $77,000 $96,000
212.14for 2009.

212.15    Sec. 7. Laws 2007, chapter 146, article 4, section 16, subdivision 6, as amended by
212.16Laws 2008, chapter 363, article 3, section 17, is amended to read:
212.17    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
212.18Minnesota Statutes, section 123B.591, subdivision 4:

212.19		$	3,232,000	.....	2008
212.20 212.21		$	2,627,000 2,720,000	.....	2009

212.22    The 2008 appropriation includes $0 for 2007 and $3,232,000 for 2008.
212.23    The 2009 appropriation includes $359,000 $371,000 for 2008 and $2,268,000
212.24$2,349,000 for 2009.

212.25    Sec. 8. Laws 2007, chapter 146, article 5, section 13, subdivision 2, as amended by
212.26Laws 2008, chapter 363, article 3, section 19, is amended to read:
212.27    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
212.28section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

212.29		$	12,094,000	.....	2008
212.30 212.31		$	12,394,000 12,298,000	.....	2009

212.32    Sec. 9. Laws 2007, chapter 146, article 5, section 13, subdivision 3, as amended by
212.33Laws 2008, chapter 363, article 2, section 40, is amended to read:
213.1    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
213.2breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
213.3124D.118 :

213.4		$	5,583,000	.....	2008
213.5		$	6,396,000	.....	2009

213.6The 2009 appropriation includes $4,825,000 for traditional school breakfast and
213.7$1,076,000 for kindergarten milk.

213.8    Sec. 10. Laws 2007, chapter 146, article 9, section 17, subdivision 2, as amended by
213.9Laws 2008, chapter 363, article 3, section 21, is amended to read:
213.10    Subd. 2. Early childhood family education aid. For early childhood family
213.11education aid under Minnesota Statutes, section 124D.135:

213.12		$	21,092,000	.....	2008
213.13 213.14		$	29,324,000 29,326,000	.....	2009

213.15    The 2008 appropriation includes $1,796,000 for 2007 and $19,296,000 for 2008.
213.16    The 2009 appropriation includes $2,144,000 for 2008 and $27,180,000 $27,182,000
213.17for 2009.

213.18    Sec. 11. Laws 2007, chapter 146, article 9, section 17, subdivision 13, as amended by
213.19Laws 2008, chapter 363, article 3, section 25, is amended to read:
213.20    Subd. 13. Adult basic education aid. For adult basic education aid under
213.21Minnesota Statutes, section 124D.531:

213.22		$	40,344,000	.....	2008
213.23 213.24		$	41,712,000 41,749,000	.....	2009

213.25    The 2008 appropriation includes $3,759,000 for 2007 and $36,585,000 for 2008.
213.26    The 2009 appropriation includes $4,065,000 for 2008 and $37,647,000 $37,684,000
213.27for 2009.


213.30    Section 1. Minnesota Statutes 2008, section 126C.10, subdivision 24, is amended to
213.31read:
213.32    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
213.33    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
213.34supplemental revenue, transition revenue, and referendum revenue is less than the value of
214.1the school district at or immediately above the 95th percentile of school districts in its
214.2equity region for those revenue categories; and
214.3    (2) the school district's administrative offices are not located in a city of the first
214.4class on July 1, 1999.
214.5    (b) Equity revenue for a qualifying district that receives referendum revenue under
214.6section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal
214.7cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school
214.8district's equity index computed under subdivision 27.
214.9    (c) Equity revenue for a qualifying district that does not receive referendum revenue
214.10under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
214.11cost pupil units for that year times $13.
214.12    (d) A school district's equity revenue is increased by the greater of zero or an amount
214.13equal to the district's resident marginal cost pupil units times the difference between ten
214.14percent of the statewide average amount of referendum revenue per resident marginal cost
214.15pupil unit for that year and the district's referendum revenue per resident marginal cost
214.16pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
214.17that year.
214.18    (e) A school district's equity revenue for a school district located in the metro equity
214.19region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
214.20    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
214.21district that has per pupil referendum revenue below the 95th percentile qualifies for
214.22additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
214.23    (g) A district that does not qualify for revenue under paragraph (f) qualifies for
214.24equity revenue equal to $46 times its adjusted marginal cost pupil units."
214.25Renumber the sections in sequence and correct the internal references
214.26Amend the title accordingly