1.1.................... moves to amend H.F. No. 934 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2010, section 93.22, subdivision 1, is amended to read:
1.6    Subdivision 1. Generally. (a) All payments under sections 93.14 to 93.285 shall
1.7be made to the Department of Natural Resources and shall be credited according to this
1.8section.
1.9    (b) Twenty percent of all payments, except for those payments received for school
1.10trust lands, under sections 93.14 to 93.285 shall be credited to the minerals management
1.11account in the natural resources fund as costs for the administration and management of
1.12state mineral resources by the commissioner of natural resources.
1.13    (c) The remainder of the payments shall be credited as follows:
1.14    (1) if the lands or minerals and mineral rights covered by a lease are held by the state
1.15by virtue of an act of Congress, payments made under the lease shall be credited to the
1.16permanent fund of the class of land to which the leased premises belong;
1.17    (2) if a lease covers the bed of navigable waters, payments made under the lease
1.18shall be credited to the permanent school fund of the state;
1.19    (3) if the lands or minerals and mineral rights covered by a lease are held by the state
1.20in trust for the taxing districts, payments made under the lease shall be distributed annually
1.21on the first day of September to the respective counties in which the lands lie, to be
1.22apportioned among the taxing districts interested therein as follows: county, three-ninths;
1.23town or city, two-ninths; and school district, four-ninths;
1.24    (4) if the lands or mineral rights covered by a lease became the absolute property of
1.25the state under the provisions of chapter 84A, payments made under the lease shall be
2.1distributed as follows: county containing the land from which the income was derived,
2.2five-eighths; and general fund of the state, three-eighths; and
2.3    (5) except as provided under this section and except where the disposition of
2.4payments may be otherwise directed by law, payments made under a lease shall be paid
2.5into the general fund of the state.
2.6EFFECTIVE DATE.This section is effective July 1, 2012.

2.7    Sec. 2. Minnesota Statutes 2010, section 93.2236, is amended to read:
2.893.2236 MINERALS MANAGEMENT ACCOUNT.
2.9(a) The minerals management account is created as an account in the natural
2.10resources fund. Interest earned on money in the account accrues to the account. Money in
2.11the account may be spent or distributed only as provided in paragraphs (b) and (c).
2.12(b) If the balance in the minerals management account exceeds $3,000,000 on June
2.1330, the amount exceeding $3,000,000 must be distributed to the permanent school fund
2.14and the permanent university fund. The amount distributed to each fund must be in the
2.15same proportion as the total mineral lease revenue received in the previous biennium
2.16from school trust lands and university lands.
2.17(c) Subject to appropriation by the legislature, money in the minerals management
2.18account may be spent by the commissioner of natural resources for mineral resource
2.19management and projects to enhance future mineral income and promote new mineral
2.20resource opportunities.
2.21EFFECTIVE DATE.This section is effective July 1, 2012.

2.22    Sec. 3. Minnesota Statutes 2010, section 120A.41, is amended to read:
2.23120A.41 LENGTH OF SCHOOL YEAR; DAYS HOURS OF INSTRUCTION.
2.24A school board's annual school calendar must include at least the number of days of
2.25student instruction the board formally adopted as its school calendar at the beginning of
2.26the 1996-1997 school year 425 hours of instruction for a kindergarten student without a
2.27disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of
2.28instruction for a student in grades 7 though 12, not including summer school.

2.29    Sec. 4. Minnesota Statutes 2010, section 120B.07, is amended to read:
2.30120B.07 EARLY GRADUATION.
3.1(a) Notwithstanding any law to the contrary, any secondary school student who has
3.2completed all required courses or standards may, with the approval of the student, the
3.3student's parent or guardian, and local school officials, graduate before the completion
3.4of the school year.
3.5(b) General education revenue attributable to the student must be paid as though
3.6the student was in attendance for the entire year unless the student participates in the
3.7early graduation achievement scholarship program under section 120B.08 or the early
3.8graduation military service award program under section 120B.081.
3.9EFFECTIVE DATE.This section is effective July 1, 2011.

3.10    Sec. 5. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
3.11PROGRAM.
3.12    Subdivision 1. Participation. A student who qualifies for early graduation under
3.13section 120B.07 is eligible to participate in the early graduation achievement scholarship
3.14program.
3.15    Subd. 2. Scholarship amounts. A student who participates in the early graduation
3.16achievement scholarship program is eligible for a scholarship of $2,500 if the student
3.17qualifies for graduation one semester or two trimesters early, $5,000 if the student qualifies
3.18for graduation two semesters or three or four trimesters early, or $7,500 if the student
3.19qualifies for graduation three or more semesters or five or more trimesters early.
3.20    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
3.21used at any accredited institution of higher education.
3.22    Subd. 4. Application. A qualifying student may apply to the commissioner of
3.23education for an early graduation achievement scholarship. The application must be in
3.24the form and manner specified by the commissioner. Upon verification of the qualifying
3.25student's course completion necessary for graduation, the department must issue the
3.26student a certificate showing the student's scholarship amount.
3.27    Subd. 5. Enrollment verification. A student who qualifies under this section
3.28and enrolls in an accredited higher education institution must submit a form to the
3.29commissioner verifying the student's enrollment in the higher education institution and the
3.30tuition charges for that semester. Within 15 days of receipt of a student's enrollment and
3.31tuition verification form, the commissioner must issue a scholarship check to the student in
3.32the lesser of the tuition amount for that semester or the maximum amount of the student's
3.33early graduation achievement scholarship. A student may continue to submit enrollment
3.34verification forms to the commissioner until the student has used the full amount of the
3.35student's graduation achievement scholarship.
4.1    Subd. 6. General education money transferred. The commissioner must transfer
4.2the amounts necessary to fund the early graduation achievement scholarships from the
4.3general education aid appropriation for that year.
4.4EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

4.5    Sec. 6. [120B.081] EARLY GRADUATION MILITARY SERVICE AWARD
4.6PROGRAM.
4.7    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means
4.8a secondary student enrolled in any Minnesota public school who qualifies for early
4.9graduation under section 120B.07 and who, before the end of the calendar year of the
4.10student's graduation, enters into active service in either the active or reserve component
4.11of the United States armed forces and deploys for 60 days or longer to a military base or
4.12installation outside Minnesota for the purpose of attending basic military training or
4.13military school and, if required by the military, performing other military duty. The active
4.14service may be in accordance with United States Code, title 10 or title 32.
4.15    Subd. 2. Application. An eligible person may apply to the commissioner of
4.16education for an early graduation military service bonus. The application must be in the
4.17form and manner specified by the commissioner.
4.18    Subd. 3. Verification and award. Upon verification of the qualifying student's
4.19course completion necessary for graduation and eligibility for the military service
4.20bonus, the commissioner must issue payment to that person. Payment amounts must be
4.21determined according to section 120B.08, subdivision 2.
4.22EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

4.23    Sec. 7. Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to read:
4.24    Subd. 1a. Transitional planning year. (a) To be eligible to participate in an
4.25alternative teacher professional pay system, a school district, intermediate school district,
4.26or site, at least one school year before it expects to fully implement an alternative pay
4.27system, must:
4.28(1) submit to the department a letter of intent executed by the school district or
4.29intermediate school district and the exclusive representative of the teachers to complete a
4.30plan preparing for full implementation, consistent with subdivision 2, that may include,
4.31among other activities, training to evaluate teacher performance, a restructured school
4.32day to develop integrated ongoing site-based professional development activities, release
5.1time to develop an alternative pay system agreement, and teacher and staff training on
5.2using multiple data sources; and
5.3(2) agree to use up to two percent of basic revenue for staff development purposes,
5.4consistent with sections section 122A.60 and 122A.61, to develop the alternative teacher
5.5professional pay system agreement under this section.
5.6(b) To be eligible to participate in an alternative teacher professional pay system, a
5.7charter school, at least one school year before it expects to fully implement an alternative
5.8pay system, must:
5.9(1) submit to the department a letter of intent executed by the charter school and the
5.10charter school board of directors;
5.11(2) submit the record of a formal vote by the teachers employed at the charter
5.12school indicating at least 70 percent of all teachers agree to implement the alternative
5.13pay system; and
5.14(3) agree to use up to two percent of basic revenue for staff development purposes,
5.15consistent with sections section 122A.60 and 122A.61, to develop the alternative teacher
5.16professional pay system.
5.17(c) The commissioner may waive the planning year if the commissioner determines,
5.18based on the criteria under subdivision 2, that the school district, intermediate school
5.19district, site or charter school is ready to fully implement an alternative pay system.
5.20EFFECTIVE DATE.This section is effective July 1, 2011.

5.21    Sec. 8. Minnesota Statutes 2010, section 122A.414, subdivision 4, is amended to read:
5.22    Subd. 4. Planning and staff development. A school district that qualifies to
5.23participate in the alternative teacher professional pay system transitional planning year
5.24under subdivision 1a may use up to two percent of its general education basic revenue
5.25that would otherwise be reserved under section 122A.61 for complying with the planning
5.26and staff development activities under this section.
5.27EFFECTIVE DATE.This section is effective July 1, 2011.

5.28    Sec. 9. Minnesota Statutes 2010, section 122A.60, subdivision 1, is amended to read:
5.29    Subdivision 1. Staff development committee. A school board must use the revenue
5.30authorized in section 122A.61 for in-service education for programs under section
5.31120B.22, subdivision 2, or for staff development plans may implement a staff development
5.32plan under this section. If a school board implements a plan under this section, the board
5.33must establish an advisory staff development committee to develop the plan, assist site
6.1professional development teams in developing a site plan consistent with the goals of the
6.2plan, and evaluate staff development efforts at the site level. A majority of the advisory
6.3committee and the site professional development team must be teachers representing
6.4various grade levels, subject areas, and special education. The advisory committee must
6.5also include nonteaching staff, parents, and administrators.
6.6EFFECTIVE DATE.This section is effective July 1, 2011.

6.7    Sec. 10. Minnesota Statutes 2010, section 122A.60, subdivision 1a, is amended to read:
6.8    Subd. 1a. Effective staff development activities. (a) Staff development activities
6.9implemented under this section must:
6.10(1) focus on the school classroom and research-based strategies that improve student
6.11learning;
6.12(2) provide opportunities for teachers to practice and improve their instructional
6.13skills over time;
6.14(3) provide opportunities for teachers to use student data as part of their daily work
6.15to increase student achievement;
6.16(4) enhance teacher content knowledge and instructional skills;
6.17(5) align with state and local academic standards;
6.18(6) provide opportunities to build professional relationships, foster collaboration
6.19among principals and staff who provide instruction, and provide opportunities for
6.20teacher-to-teacher mentoring; and
6.21(7) align with the plan of the district or site for an alternative teacher professional
6.22pay system.
6.23Staff development activities may include curriculum development and curriculum training
6.24programs, and activities that provide teachers and other members of site-based teams
6.25training to enhance team performance. The school district also may implement other
6.26staff development activities required by law and activities associated with professional
6.27teacher compensation models.
6.28(b) Release time provided for teachers to supervise students on field trips and school
6.29activities, or independent tasks not associated with enhancing the teacher's knowledge
6.30and instructional skills, such as preparing report cards, calculating grades, or organizing
6.31classroom materials, may not be counted as staff development time that is financed with
6.32staff development reserved revenue under section 122A.61.
6.33EFFECTIVE DATE.This section is effective July 1, 2011.

7.1    Sec. 11. Minnesota Statutes 2010, section 122A.60, subdivision 4, is amended to read:
7.2    Subd. 4. Staff development report. (a) By October 15 of each year, the a district
7.3and implementing a staff development plan under this section, in conjunction with its
7.4site staff development committees, shall write and submit a report of staff development
7.5activities and expenditures for the previous year, in the form and manner determined by
7.6the commissioner. The report, signed by the district superintendent and staff development
7.7chair, must include assessment and evaluation data indicating progress toward district and
7.8site staff development goals based on teaching and learning outcomes, including the
7.9percentage of teachers and other staff involved in instruction who participate in effective
7.10staff development activities under subdivision 3.
7.11(b) The report must break down expenditures for:
7.12(1) curriculum development and curriculum training programs; and
7.13(2) staff development training models, workshops, and conferences, and the cost of
7.14releasing teachers or providing substitute teachers for staff development purposes.
7.15The report also must indicate whether the expenditures were incurred at the district
7.16level or the school site level, and whether the school site expenditures were made possible
7.17by grants to school sites that demonstrate exemplary use of allocated staff development
7.18revenue. These expenditures must be reported using the uniform financial and accounting
7.19and reporting standards.
7.20(c) The commissioner shall report the staff development progress and expenditure
7.21data to the house of representatives and senate committees having jurisdiction over
7.22education by February 15 each year.
7.23EFFECTIVE DATE.This section is effective July 1, 2011.

7.24    Sec. 12. Minnesota Statutes 2010, section 123A.55, is amended to read:
7.25123A.55 CLASSES, NUMBER.
7.26Districts shall be classified as common, independent, or special, or charter districts,.
7.27Each of which common, independent, and special district is a public corporation. Each
7.28district shall be known by its classification and assigned a number by the commissioner so
7.29that its title will be .......... School District No. ......
7.30EFFECTIVE DATE.This section is effective July 1, 2011.

7.31    Sec. 13. Minnesota Statutes 2010, section 126C.10, subdivision 1, is amended to read:
7.32    Subdivision 1. General education revenue. For fiscal year 2006 and later, The
7.33general education revenue for each district equals the sum of the district's basic revenue,
8.1extended time revenue, gifted and talented revenue, small schools revenue, basic skills
8.2revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
8.3revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
8.4alternative teacher compensation revenue, and transition revenue.
8.5EFFECTIVE DATE.This section is effective for fiscal year 2013 and later.

8.6    Sec. 14. Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:
8.7    Subd. 2. Basic revenue. The basic revenue for each district equals the formula
8.8allowance times the adjusted marginal cost pupil units for the school year. The formula
8.9allowance for fiscal year 2007 is $4,974. The formula allowance for fiscal year 2008 is
8.10$5,074 and the formula allowance for fiscal year years 2009 through 2011 is $5,124. The
8.11formula allowance is $5,155 for fiscal year 2012 and $5,210 for fiscal year 2013. The
8.12formula allowance for fiscal year 2014 and subsequent years is $5,124 $5,250.

8.13    Sec. 15. Minnesota Statutes 2010, section 126C.10, subdivision 2a, is amended to read:
8.14    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue
8.15is equal to the product of $4,601 $5,124 and the sum of the adjusted marginal cost pupil
8.16units of the district for each pupil in average daily membership in excess of 1.0 and less
8.17than 1.2 according to section 126C.05, subdivision 8.
8.18(b) A school district's extended time revenue may be used for extended day
8.19programs, extended week programs, summer school, and other programming authorized
8.20under the learning year program.
8.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
8.22and later.

8.23    Sec. 16. Minnesota Statutes 2010, section 126C.10, is amended by adding a
8.24subdivision to read:
8.25    Subd. 2c. Small schools revenue. A school district's small schools revenue equals
8.26the product of:
8.27(1) $5,124;
8.28(2) the district's adjusted marginal cost pupil units for that year;
8.29(3) the greater of zero or the ratio of (i) 1,000 less the district's adjusted marginal
8.30cost pupil units for that year, to (ii) 1,000; and
8.31(4) 0.08.
9.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
9.2and later.

9.3    Sec. 17. Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:
9.4    Subd. 3. Compensatory education revenue. (a) The compensatory education
9.5revenue for each building in the district equals the formula allowance minus $415 $4,709
9.6times the compensation revenue pupil units computed according to section 126C.05,
9.7subdivision 3 . Revenue shall be paid to the district and must be allocated according to
9.8section 126C.15, subdivision 2.
9.9(b) When the district contracting with an alternative program under section 124D.69
9.10changes prior to the start of a school year, the compensatory revenue generated by pupils
9.11attending the program shall be paid to the district contracting with the alternative program
9.12for the current school year, and shall not be paid to the district contracting with the
9.13alternative program for the prior school year.
9.14(c) When the fiscal agent district for an area learning center changes prior to the start
9.15of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
9.16current school year, and shall not be paid to the fiscal agent district for the prior school year.

9.17    Sec. 18. Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:
9.18    Subd. 7. Secondary sparsity revenue. (a) A district's secondary sparsity revenue
9.19for a school year equals the sum of the results of the following calculation for each
9.20qualifying high school in the district:
9.21(1) the formula allowance for the school year $5,124, multiplied by
9.22(2) the secondary average daily membership of pupils served in the high school,
9.23multiplied by
9.24(3) the quotient obtained by dividing 400 minus the secondary average daily
9.25membership by 400 plus the secondary daily membership, multiplied by
9.26(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
9.2723 by ten.
9.28(b) A newly formed district that is the result of districts combining under the
9.29cooperation and combination program or consolidating under section 123A.48 must
9.30receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
9.31under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
9.32sparsity revenue the former districts had in the year prior to consolidation, increased for
9.33any subsequent changes in the secondary sparsity formula.
10.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
10.2and later.

10.3    Sec. 19. Minnesota Statutes 2010, section 126C.10, subdivision 8, is amended to read:
10.4    Subd. 8. Elementary sparsity revenue. A district's elementary sparsity revenue
10.5equals the sum of the following amounts for each qualifying elementary school in the
10.6district:
10.7(1) the formula allowance for the year $5,124, multiplied by
10.8(2) the elementary average daily membership of pupils served in the school,
10.9multiplied by
10.10(3) the quotient obtained by dividing 140 minus the elementary average daily
10.11membership by 140 plus the average daily membership.
10.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
10.13and later.

10.14    Sec. 20. Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:
10.15    Subd. 8a. Sparsity revenue for school districts that close facilities. A school
10.16district that closes a school facility or whose sparsity revenue is reduced by a school
10.17closure in another district is eligible for elementary and secondary sparsity revenue equal
10.18to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount
10.19of sparsity revenue for the previous fiscal year if the school board of the district has
10.20adopted a written resolution stating that the district intends to close the school facility, but
10.21cannot proceed with the closure without the adjustment to sparsity revenue authorized by
10.22this subdivision. The written resolution must be filed with the commissioner of education
10.23at least 60 days prior to the start of the fiscal year for which aid under this subdivision is
10.24first requested. A school district whose sparsity revenue is affected by a closure in another
10.25district is not required to adopt a written resolution under this section.
10.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
10.27and later.

10.28    Sec. 21. Minnesota Statutes 2010, section 126C.10, subdivision 13a, is amended to
10.29read:
10.30    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
10.31year 2007 and later, a district may levy an amount not more than the product of its
10.32operating capital revenue for the fiscal year times the lesser of one or the ratio of its
11.1adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
11.2equalizing factor. The operating capital equalizing factor equals $22,222 $10,700 for
11.3fiscal year 2006 2012, and $10,700 $12,790 for fiscal year 2007 2013 and later.
11.4EFFECTIVE DATE.This section is effective July 1, 2011.

11.5    Sec. 22. Minnesota Statutes 2010, section 126C.10, subdivision 14, is amended to read:
11.6    Subd. 14. Uses of total operating capital revenue. Total operating capital revenue
11.7may be used only for the following purposes:
11.8(1) to acquire land for school purposes;
11.9(2) to acquire or construct buildings for school purposes;
11.10(3) to rent or lease buildings, including the costs of building repair or improvement
11.11that are part of a lease agreement;
11.12(4) to improve and repair school sites and buildings, and equip or reequip school
11.13buildings with permanent attached fixtures, including library media centers;
11.14(5) for a surplus school building that is used substantially for a public nonschool
11.15purpose;
11.16(6) to eliminate barriers or increase access to school buildings by individuals with a
11.17disability;
11.18(7) to bring school buildings into compliance with the State Fire Code adopted
11.19according to chapter 299F;
11.20(8) to remove asbestos from school buildings, encapsulate asbestos, or make
11.21asbestos-related repairs;
11.22(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
11.23(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel
11.24or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined
11.25in section 296A.01;
11.26(11) for energy audits for school buildings and to modify buildings if the audit
11.27indicates the cost of the modification can be recovered within ten years;
11.28(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
11.29(13) to pay special assessments levied against school property but not to pay
11.30assessments for service charges;
11.31(14) to pay principal and interest on state loans for energy conservation according to
11.32section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
11.33Fund Act according to sections 298.292 to 298.298;
11.34(15) to purchase or lease interactive telecommunications equipment;
12.1(16) by board resolution, to transfer money into the debt redemption fund to: (i)
12.2pay the amounts needed to meet, when due, principal and interest payments on certain
12.3obligations issued according to chapter 475; or (ii) pay principal and interest on debt
12.4service loans or capital loans according to section 126C.70;
12.5(17) to pay operating capital-related assessments of any entity formed under a
12.6cooperative agreement between two or more districts;
12.7(18) to purchase or lease computers and related materials, copying machines,
12.8telecommunications equipment, and other noninstructional equipment;
12.9(19) to purchase or lease assistive technology or equipment for instructional
12.10programs;
12.11(20) to purchase textbooks;
12.12(21) to purchase new and replacement library media resources or technology;
12.13(22) to lease or purchase vehicles;
12.14(23) to purchase or lease telecommunications equipment, computers, and related
12.15equipment for integrated information management systems for:
12.16(i) managing and reporting learner outcome information for all students under a
12.17results-oriented graduation rule;
12.18(ii) managing student assessment, services, and achievement information required
12.19for students with individual education plans; and
12.20(iii) other classroom information management needs; and
12.21(24) to pay personnel costs directly related to the acquisition, operation, and
12.22maintenance of telecommunications systems, computers, related equipment, and network
12.23and applications software; and
12.24(25) to pay the costs directly associated with closing a school facility, including
12.25moving and storage costs.
12.26EFFECTIVE DATE.This section is effective the day following final enactment.

12.27    Sec. 23. Minnesota Statutes 2010, section 126C.126, is amended to read:
12.28126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
12.29ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
12.30    (a) In order to provide additional revenue for an optional all-day kindergarten
12.31program, a district may reallocate general education revenue attributable to 12th grade
12.32students who have graduated early under section 120B.07 and who do not participate in
12.33the early graduation achievement scholarship program under section 120B.08 or the early
12.34graduation military service award program under section 120B.081.
13.1    (b) A school district may spend general education revenue on extended time
13.2kindergarten and prekindergarten programs.
13.3EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

13.4    Sec. 24. Minnesota Statutes 2010, section 126C.20, is amended to read:
13.5126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
13.6There is annually appropriated from the general fund to the department the
13.7amount necessary for general education aid under section 126C.13, the early graduation
13.8achievement scholarship program under section 120B.08, and the early graduation
13.9military service award program under section 120B.081. This amount must be reduced
13.10by the amount of any money specifically appropriated for the same purpose in any year
13.11from any state fund.
13.12EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

13.13    Sec. 25. Minnesota Statutes 2010, section 126C.44, is amended to read:
13.14126C.44 SAFE SCHOOLS LEVY.
13.15    (a) Each district may make a levy on all taxable property located within the district
13.16for the purposes specified in this section. The maximum amount which may be levied
13.17for all costs under this section shall be equal to $30 multiplied by the district's adjusted
13.18marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
13.19used for directly funding the following purposes or for reimbursing the cities and counties
13.20who contract with the district for the following purposes: (1) to pay the costs incurred for
13.21the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
13.22services in the district's schools; (2) to pay the costs for a drug abuse prevention program
13.23as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
13.24(3) to pay the costs for a gang resistance education training curriculum in the district's
13.25schools; (4) to pay the costs for security in the district's schools and on school property; (5)
13.26to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
13.27opt-in suicide prevention tools, and violence prevention measures taken by the school
13.28district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
13.29school social workers, licensed school psychologists, and licensed alcohol and chemical
13.30dependency counselors to help provide early responses to problems. For expenditures
13.31under clause (1), the district must initially attempt to contract for services to be provided
13.32by peace officers or sheriffs with the police department of each city or the sheriff's
13.33department of the county within the district containing the school receiving the services. If
14.1a local police department or a county sheriff's department does not wish to provide the
14.2necessary services, the district may contract for these services with any other police or
14.3sheriff's department located entirely or partially within the school district's boundaries.
14.4    (b) A school district that is a member of an intermediate school district may
14.5include in its authority under this section the costs associated with safe schools activities
14.6authorized under paragraph (a) for intermediate school district programs. This authority
14.7must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
14.8This authority is in addition to any other authority authorized under this section. Revenue
14.9raised under this paragraph must be transferred to the intermediate school district.
14.10    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
14.11unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
14.12clause (6). The district must annually certify either that: (1) its total spending on services
14.13provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
14.14its expenditures for these purposes, excluding amounts spent under this section, in the
14.15previous year plus the amount spent under this section; or (2) that the district's full-time
14.16equivalent number of employees listed in paragraph (a), clause (6), is not less than the
14.17number for the previous year.

14.18    Sec. 26. Minnesota Statutes 2010, section 127A.33, is amended to read:
14.19127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.
14.20The commissioner shall apportion the school endowment fund semiannually on the
14.21first Monday in March and September in each year, to districts whose schools have been
14.22in session at least nine months. The apportionment shall be in proportion to the number
14.23of pupils in each district's adjusted average daily membership during the preceding year.
14.24The apportionment shall not be paid to a district for pupils for whom tuition is received
14.25by the district.
14.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
14.27and later.

14.28    Sec. 27. Minnesota Statutes 2010, section 298.28, subdivision 2, is amended to read:
14.29    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
14.30merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount
14.31provided in paragraph (c), must be allocated to the city or town in the county in which
14.32the lands from which taconite was mined or quarried were located or within which the
14.33concentrate was produced. If the mining, quarrying, and concentration, or different steps
15.1in either thereof are carried on in more than one taxing district, the commissioner shall
15.2apportion equitably the proceeds of the part of the tax going to cities and towns among
15.3such subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to
15.4the operation of mining or quarrying the taconite, and the remainder to the concentrating
15.5plant and to the processes of concentration, and with respect to each thereof giving due
15.6consideration to the relative extent of such operations performed in each such taxing
15.7district. The commissioner's order making such apportionment shall be subject to review
15.8by the Tax Court at the instance of any of the interested taxing districts, in the same
15.9manner as other orders of the commissioner.
15.10(b) Four cents per taxable ton shall be allocated to cities and organized townships
15.11affected by mining because their boundaries are within three miles of a taconite mine pit
15.12that has been actively mined in at least one of the prior three years. If a city or town is
15.13located near more than one mine meeting these criteria, the city or town is eligible to
15.14receive aid calculated from only the mine producing the largest taxable tonnage. When
15.15more than one municipality qualifies for aid based on one company's production, the aid
15.16must be apportioned among the municipalities in proportion to their populations. Of the
15.17amounts distributed under this paragraph to each municipality, one-half must be used for
15.18infrastructure improvement projects, and one-half must be used for projects in which two
15.19or more municipalities cooperate. Each municipality that receives a distribution under this
15.20paragraph must report annually to the Iron Range Resources and Rehabilitation Board and
15.21the commissioner of Iron Range resources and rehabilitation on the projects involving
15.22cooperation with other municipalities.
15.23(c) The amount that would have been computed for the current year under Minnesota
15.24Statutes 2008, section 126C.21, subdivision 4, for a school district within which the
15.25taconite was mined or quarried or within which the concentrate is produced is added to
15.26the amount to be distributed to the cities and towns located within that school district as
15.27provided in paragraph (a).
15.28EFFECTIVE DATE.This section is effective for distributions in 2012 and
15.29thereafter.

15.30    Sec. 28. Minnesota Statutes 2010, section 298.28, subdivision 4, is amended to read:
15.31    Subd. 4. School districts. (a) 23.15 cents per taxable ton, plus the increase provided
15.32in paragraph (d), less the amount that would have been computed under Minnesota
15.33Statutes 2008, section 126C.21, subdivision 4, for the current year for that district, must be
15.34allocated to qualifying school districts to be distributed, based upon the certification of the
15.35commissioner of revenue, under paragraphs (b), (c), and (f).
16.1    (b) (i) 3.43 cents per taxable ton must be distributed to the school districts in which
16.2the lands from which taconite was mined or quarried were located or within which the
16.3concentrate was produced. The distribution must be based on the apportionment formula
16.4prescribed in subdivision 2.
16.5    (ii) Four cents per taxable ton from each taconite facility must be distributed to
16.6each affected school district for deposit in a fund dedicated to building maintenance
16.7and repairs, as follows:
16.8    (1) proceeds from Keewatin Taconite or its successor are distributed to Independent
16.9School Districts Nos. 316, Coleraine, and 319, Nashwauk-Keewatin, or their successor
16.10districts;
16.11    (2) proceeds from the Hibbing Taconite Company or its successor are distributed to
16.12Independent School Districts Nos. 695, Chisholm, and 701, Hibbing, or their successor
16.13districts;
16.14    (3) proceeds from the Mittal Steel Company and Minntac or their successors are
16.15distributed to Independent School Districts Nos. 712, Mountain Iron-Buhl, 706, Virginia,
16.162711, Mesabi East, and 2154, Eveleth-Gilbert, or their successor districts;
16.17    (4) proceeds from the Northshore Mining Company or its successor are distributed
16.18to Independent School Districts Nos. 2142, St. Louis County, and 381, Lake Superior,
16.19or their successor districts; and
16.20    (5) proceeds from United Taconite or its successor are distributed to Independent
16.21School Districts Nos. 2142, St. Louis County, and 2154, Eveleth-Gilbert, or their
16.22successor districts.
16.23    Revenues that are required to be distributed to more than one district shall be
16.24apportioned according to the number of pupil units identified in section 126C.05,
16.25subdivision 1 , enrolled in the second previous year.
16.26    (c)(i) 15.72 cents per taxable ton, less any amount distributed under paragraph (e),
16.27shall be distributed to a group of school districts comprised of those school districts which
16.28qualify as a tax relief area under section 273.134, paragraph (b), or in which there is a
16.29qualifying municipality as defined by section 273.134, paragraph (a), in direct proportion
16.30to school district indexes as follows: for each school district, its pupil units determined
16.31under section 126C.05 for the prior school year shall be multiplied by the ratio of the
16.32average adjusted net tax capacity per pupil unit for school districts receiving aid under
16.33this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year
16.34ending prior to distribution to the adjusted net tax capacity per pupil unit of the district.
16.35Each district shall receive that portion of the distribution which its index bears to the sum
16.36of the indices for all school districts that receive the distributions.
17.1    (ii) Notwithstanding clause (i), each school district that receives a distribution
17.2under sections 298.018; 298.23 to 298.28, exclusive of any amount received under this
17.3clause; 298.34 to 298.39; 298.391 to 298.396; 298.405; or any law imposing a tax on
17.4severed mineral values after reduction for any portion distributed to cities and towns
17.5under section 126C.48, subdivision 8, paragraph (5), that is less than the amount of its
17.6levy reduction under section 126C.48, subdivision 8, for the second year prior to the
17.7year of the distribution shall receive a distribution equal to the difference; the amount
17.8necessary to make this payment shall be derived from proportionate reductions in the
17.9initial distribution to other school districts under clause (i). If there are insufficient tax
17.10proceeds to make the distribution provided under this paragraph in any year, money must
17.11be transferred from the taconite property tax relief account in subdivision 6, to the extent
17.12of the shortfall in the distribution.
17.13    (d) Any school district described in paragraph (c) where a levy increase pursuant to
17.14section 126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001,
17.15shall receive a distribution of 21.3 cents per ton. Each district shall receive $175 times the
17.16pupil units identified in section 126C.05, subdivision 1, enrolled in the second previous
17.17year or the 1983-1984 school year, whichever is greater, less the product of 1.8 percent
17.18times the district's taxable net tax capacity in the second previous year.
17.19    If the total amount provided by paragraph (d) is insufficient to make the payments
17.20herein required then the entitlement of $175 per pupil unit shall be reduced uniformly
17.21so as not to exceed the funds available. Any amounts received by a qualifying school
17.22district in any fiscal year pursuant to paragraph (d) shall not be applied to reduce general
17.23education aid which the district receives pursuant to section 126C.13 or the permissible
17.24levies of the district. Any amount remaining after the payments provided in this paragraph
17.25shall be paid to the commissioner of Iron Range resources and rehabilitation who shall
17.26deposit the same in the taconite environmental protection fund and the Douglas J. Johnson
17.27economic protection trust fund as provided in subdivision 11.
17.28    Each district receiving money according to this paragraph shall reserve the lesser of
17.29the amount received under this paragraph or $25 times the number of pupil units served
17.30in the district. It may use the money for early childhood programs or for outcome-based
17.31learning programs that enhance the academic quality of the district's curriculum. The
17.32outcome-based learning programs must be approved by the commissioner of education.
17.33    (e) There shall be distributed to any school district the amount which the school
17.34district was entitled to receive under section 298.32 in 1975.
17.35    (f) Four cents per taxable ton must be distributed to qualifying school districts
17.36according to the distribution specified in paragraph (b), clause (ii), and two cents per
18.1taxable ton must be distributed according to the distribution specified in paragraph
18.2(c). These amounts are not subject to sections 126C.21, subdivision 4, and 126C.48,
18.3subdivision 8 .
18.4EFFECTIVE DATE.This section is effective for distributions in 2012 and
18.5thereafter.

18.6    Sec. 29. KITTSON CENTRAL SCHOOL CLOSING.
18.7Independent School District No. 356, Lancaster, is eligible for sparsity revenue
18.8calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012
18.9and later, if the board has adopted a written resolution at any time prior to the start of
18.10the 2011-2012 school year to notify the commissioner and request aid under Minnesota
18.11Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school
18.12district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision
18.138a, as a result of the closure of the Kennedy Elementary School in Independent School
18.14District No. 2171, Kittson Central.
18.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
18.16and later.

18.17    Sec. 30. NORTHLAND COMMUNITY SCHOOL CLOSING.
18.18(a) Independent School District No. 118, Northland Community Schools, is eligible
18.19for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a,
18.20for fiscal year 2012 and later, if the board has adopted the required written resolution at
18.21least 60 days prior to the start of fiscal year 2012.
18.22(b) If the school district adopts a written resolution under paragraph (a), in fiscal
18.23year 2012, the commissioner must provide sparsity aid to the district in an amount equal
18.24to the amount that the district would have received under Minnesota Statutes, section
18.25126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in
18.26effect. The school district must recognize the sparsity aid provided under this paragraph as
18.27revenue in fiscal year 2011.
18.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012.

18.29    Sec. 31. APPROPRIATIONS.
19.1    Subdivision 1. Department of Education. The sums indicated in this section are
19.2appropriated from the general fund to the Department of Education for the fiscal years
19.3designated.
19.4    Subd. 2. General education aid. For general education aid under Minnesota
19.5Statutes, section 126C.13, subdivision 4:

19.6		$	5,678,733,000	.....	2012
19.7		$	5,855,795,000	.....	2013

19.8The 2012 appropriation includes $1,678,539,000 for 2011 and $4,000,194,000
19.9for 2012.
19.10The 2013 appropriation includes $1,710,242,000 for 2012 and $4,145,553,000
19.11for 2013.
19.12    Subd. 3. Enrollment options transportation. For transportation of pupils attending
19.13postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
19.14of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

19.15		$	31,000	.....	2012
19.16		$	32,000	.....	2013

19.17    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
19.18127A.49:

19.19		$	1,452,000	.....	2012
19.20		$	1,635,000	.....	2013

19.21The 2012 appropriation includes $346,000 for 2011 and $1,106,000 for 2012.
19.22The 2013 appropriation includes $473,000 for 2012 and $1,162,000 for 2013.
19.23    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
19.24Statutes, section 123A.485:

19.25		$	145,000	.....	2012
19.26		$	210,000	.....	2013

19.27The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
19.28The 2013 appropriation includes $0 for 2012 and $210,000 for 2013.
19.29    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
19.30Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

19.31		$	16,101,000	.....	2012
19.32		$	16,023,000	.....	2013

19.33The 2012 appropriation includes $5,078,000 for 2011 and $11,023,000 for 2012.
20.1The 2013 appropriation includes $4,724,000 for 2012 and $11,299,000 for 2013.
20.2    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
20.3under Minnesota Statutes, section 123B.92, subdivision 9:

20.4		$	19,007,000	.....	2012
20.5		$	19,033,000	.....	2013

20.6The 2012 appropriation includes $5,895,000 for 2011 and $13,112,000 for 2012.
20.7The 2013 appropriation includes $5,619,000 for 2012 and $13,414,000 for 2013.
20.8    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
20.9690, Warroad, to operate the Angle Inlet School:

20.10		$	65,000	.....	2012
20.11		$	65,000	.....	2013

20.12    Subd. 9. Compensatory revenue pilot project. For grants for participation in the
20.13compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
20.14article 1, section 50:

20.15		$	2,175,000	.....	2012
20.16		$	2,175,000	.....	2013

20.17Of this amount, $1,500,000 in each year is for a grant to Independent School District
20.18No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School
20.19District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent
20.20School District No. 279, Osseo; $160,000 in each year is for a grant to Independent
20.21School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent
20.22School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
20.23School District No. 833, South Washington.
20.24If a grant to a specific school district is not awarded, the commissioner may increase
20.25the aid amounts to any of the remaining participating school districts.
20.26This appropriation is part of the base budget for subsequent fiscal years.
20.27    Subd. 10. Compensatory formula pilot project aid. For grants for compensatory
20.28pilot project aid as calculated under this subdivision:

20.29		$	11,957,000	.....	2012
20.30		$	5,124,000	.....	2013

20.31For fiscal year 2012 only, a district which has a pupil unit count that is in the top ten
20.32largest pupil unit counts is eligible for the greater of zero or $1,500 times the number of
20.33compensatory pupil units, minus the amount of compensatory education revenue received
20.34by the district under Minnesota Statutes, section 126C.10, subdivision 3. A district which
21.1has a pupil unit count that is between the 11th and 20th largest pupil unit counts is eligible
21.2for the greater of zero or $1,200 times the number of compensatory pupil units, minus
21.3the amount of compensatory education revenue received by the district under Minnesota
21.4Statutes, section 126C.10, subdivision 3.
21.5The 2012 appropriation includes $0 for 2011 and $11,957,000 for 2012.
21.6The 2013 appropriation includes $5,124,000 for 2012 and $0 for 2013.
21.7This is a onetime appropriation.

21.8    Sec. 32. APPROPRIATIONS; MINNESOTA DEPARTMENT OF NATURAL
21.9RESOURCES.
21.10The sums indicated in this section are appropriated from the general fund to the
21.11Minnesota Department of Natural Resources for the fiscal years designated:

21.12		$	0	.....	2012
21.13		$	2,072,000	.....	2013

21.14This appropriation must only be used for minerals management activities for school
21.15trust lands.

21.16    Sec. 33. REPEALER AND REENACTMENT.
21.17(a) Laws 2009, chapter 88, article 12, section 23, paragraph (c), is repealed and
21.18Minnesota Statutes 2008, section 126C.21, subdivision 4, is reenacted for revenue for
21.19fiscal year 2012 and thereafter.
21.20(b) Minnesota Statutes 2010, sections 122A.61; 123B.05; and 126C.10, subdivision
21.215, are repealed.


21.24    Section 1. Minnesota Statutes 2010, section 13D.02, is amended by adding a
21.25subdivision to read:
21.26    Subd. 5. School boards; interactive technology with an audio and visual link.
21.27A school board conducting a meeting under this section may use interactive technology
21.28with an audio and visual link to conduct the meeting if the school board complies with
21.29all other requirements under this section.

21.30    Sec. 2. Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to read:
21.31    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
21.32revise and appropriately embed technology and information literacy standards consistent
22.1with recommendations from school media specialists into the state's academic standards
22.2and graduation requirements and implement a review cycle for state academic standards
22.3and related benchmarks, consistent with this subdivision. The commissioner must revise
22.4and align the state's academic standards and graduation requirements, consistent with the
22.5review cycle established in this subdivision and the requirements of chapter 14, but must
22.6not proceed to finally adopt revised and realigned academic standards and graduation
22.7requirements in rule without first receiving specific legislative authority to do so. During
22.8each review cycle, the commissioner also must examine the alignment of each required
22.9academic standard and related benchmark with the knowledge and skills students need for
22.10college readiness and advanced work in the particular subject area.
22.11(b) The commissioner in the 2006-2007 school year must revise and align the state's
22.12academic standards and high school graduation requirements in mathematics to require
22.13that students satisfactorily complete the revised mathematics standards, beginning in the
22.142010-2011 school year. Under the revised standards:
22.15(1) students must satisfactorily complete an algebra I credit by the end of eighth
22.16grade; and
22.17(2) students scheduled to graduate in the 2014-2015 school year or later must
22.18satisfactorily complete an algebra II credit or its equivalent.
22.19The commissioner also must ensure that the statewide mathematics assessments
22.20administered to students in grades 3 through 8 and 11 are aligned with the state academic
22.21standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
22.22(b). The commissioner must implement a review of the academic standards and related
22.23benchmarks in mathematics beginning in the 2015-2016 school year.
22.24(c) The commissioner in the 2007-2008 school year must revise and align the state's
22.25academic standards and high school graduation requirements in the arts to require that
22.26students satisfactorily complete the revised arts standards beginning in the 2010-2011
22.27school year. The commissioner must implement a review of the academic standards and
22.28related benchmarks in arts beginning in the 2016-2017 school year.
22.29(d) The commissioner in the 2008-2009 school year must revise and align the state's
22.30academic standards and high school graduation requirements in science to require that
22.31students satisfactorily complete the revised science standards, beginning in the 2011-2012
22.32school year. Under the revised standards, students scheduled to graduate in the 2014-2015
22.33school year or later must satisfactorily complete a chemistry or physics credit. The
22.34commissioner must implement a review of the academic standards and related benchmarks
22.35in science beginning in the 2017-2018 school year.
23.1(e) The commissioner in the 2009-2010 school year must revise and align the state's
23.2academic standards and high school graduation requirements in language arts to require
23.3that students satisfactorily complete the revised language arts standards beginning in the
23.42012-2013 school year. The commissioner must implement a review of the academic
23.5standards and related benchmarks in language arts beginning in the 2018-2019 school year.
23.6(f) The commissioner in the 2010-2011 school year must revise and align review
23.7the state's academic standards and high school graduation requirements in social studies
23.8to require that students must satisfactorily complete the revised social studies standards
23.9beginning in the 2013-2014 2014-2015 school year. The commissioner must again
23.10implement a review of the academic standards and related benchmarks in social studies
23.11beginning in the 2019-2020 2020-2021 school year.
23.12(g) School districts and charter schools must revise and align local academic
23.13standards and high school graduation requirements in health, world languages, and career
23.14and technical education to require students to complete the revised standards beginning
23.15in a school year determined by the school district or charter school. School districts and
23.16charter schools must formally establish a periodic review cycle for the academic standards
23.17and related benchmarks in health, world languages, and career and technical education.
23.18EFFECTIVE DATE.This section is effective the day following final enactment.

23.19    Sec. 3. Minnesota Statutes 2010, section 120B.30, subdivision 1, is amended to read:
23.20    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
23.21with appropriate technical qualifications and experience and stakeholders, consistent with
23.22subdivision 1a, shall include in the comprehensive assessment system, for each grade
23.23level to be tested, state-constructed tests developed from and aligned with the state's
23.24required academic standards under section 120B.021, include multiple choice questions,
23.25and be administered annually to all students in grades 3 through 8. State-developed high
23.26school tests aligned with the state's required academic standards under section 120B.021
23.27and administered to all high school students in a subject other than writing must include
23.28multiple choice questions. The commissioner shall establish one or more months during
23.29which schools shall administer the tests to students each school year. For students enrolled
23.30in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
23.31mathematics, and writing shall fulfill students' basic skills testing requirements for a
23.32passing state notation. The passing scores of basic skills tests in reading and mathematics
23.33are the equivalent of 75 percent correct for students entering grade 9 based on the first
23.34uniform test administered in February 1998. Students who have not successfully passed
24.1a Minnesota basic skills test by the end of the 2011-2012 school year must pass the
24.2graduation-required assessments for diploma under paragraph (c).
24.3(b) The state assessment system must be aligned to the most recent revision of
24.4academic standards as described in section 120B.023 in the following manner:
24.5(1) mathematics;
24.6(i) grades 3 through 8 beginning in the 2010-2011 school year; and
24.7(ii) high school level beginning in the 2013-2014 school year;
24.8(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
24.9school year; and
24.10(3) language arts and reading; grades 3 through 8 and high school level beginning in
24.11the 2012-2013 school year.
24.12    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
24.13following options shall fulfill students' state graduation test requirements:
24.14    (1) for reading and mathematics:
24.15    (i) obtaining an achievement level equivalent to or greater than proficient as
24.16determined through a standard setting process on the Minnesota comprehensive
24.17assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
24.18score as determined through a standard setting process on the graduation-required
24.19assessment for diploma in grade 10 for reading and grade 11 for mathematics or
24.20subsequent retests;
24.21    (ii) achieving a passing score as determined through a standard setting process on the
24.22state-identified language proficiency test in reading and the mathematics test for English
24.23language learners or the graduation-required assessment for diploma equivalent of those
24.24assessments for students designated as English language learners;
24.25    (iii) achieving an individual passing score on the graduation-required assessment
24.26for diploma as determined by appropriate state guidelines for students with an individual
24.27education plan or 504 plan;
24.28    (iv) obtaining achievement level equivalent to or greater than proficient as
24.29determined through a standard setting process on the state-identified alternate assessment
24.30or assessments in grade 10 for reading and grade 11 for mathematics for students with
24.31an individual education plan; or
24.32    (v) achieving an individual passing score on the state-identified alternate assessment
24.33or assessments as determined by appropriate state guidelines for students with an
24.34individual education plan; and
24.35    (2) for writing:
24.36    (i) achieving a passing score on the graduation-required assessment for diploma;
25.1    (ii) achieving a passing score as determined through a standard setting process on
25.2the state-identified language proficiency test in writing for students designated as English
25.3language learners;
25.4    (iii) achieving an individual passing score on the graduation-required assessment
25.5for diploma as determined by appropriate state guidelines for students with an individual
25.6education plan or 504 plan; or
25.7    (iv) achieving an individual passing score on the state-identified alternate assessment
25.8or assessments as determined by appropriate state guidelines for students with an
25.9individual education plan.
25.10    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
25.11year to the 2009-2010 2008-2009 school year who do not pass the mathematics
25.12graduation-required assessment for diploma under paragraph (c) are eligible to receive a
25.13high school diploma if they:
25.14(1) complete with a passing score or grade all state and local coursework and credits
25.15required for graduation by the school board granting the students their diploma;
25.16(2) participate in district-prescribed academic remediation in mathematics; and
25.17    (3) fully participate in at least two retests of the mathematics GRAD test or until
25.18they pass the mathematics GRAD test, whichever comes first. A school, district, or
25.19charter school must place a student's highest assessment score for each of the following
25.20assessments on the student's high school transcript: the mathematics Minnesota
25.21Comprehensive Assessment, reading Minnesota Comprehensive Assessment, and writing
25.22Graduation-Required Assessment for Diploma, and when applicable, the mathematics
25.23Graduation-Required Assessment for Diploma and reading Graduation-Required
25.24Assessment for Diploma.
25.25In addition, the school board granting the students their diplomas may formally
25.26decide to include a notation of high achievement on the high school diplomas of those
25.27graduating seniors who, according to established school board criteria, demonstrate
25.28exemplary academic achievement during high school.
25.29(e) The 3rd through 8th grade and high school test results shall be available to
25.30districts for diagnostic purposes affecting student learning and district instruction and
25.31curriculum, and for establishing educational accountability. The commissioner must
25.32disseminate to the public the high school test results upon receiving those results.
25.33    (f) The 3rd through 8th grade and high school tests must be aligned with state
25.34academic standards. The commissioner shall determine the testing process and the order
25.35of administration. The statewide results shall be aggregated at the site and district level,
25.36consistent with subdivision 1a.
26.1    (g) In addition to the testing and reporting requirements under this section, the
26.2commissioner shall include the following components in the statewide public reporting
26.3system:
26.4    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
26.5school level that provides appropriate, technically sound accommodations or alternate
26.6assessments;
26.7    (2) educational indicators that can be aggregated and compared across school
26.8districts and across time on a statewide basis, including average daily attendance, high
26.9school graduation rates, and high school drop-out rates by age and grade level;
26.10    (3) state results on the American College Test; and
26.11    (4) state results from participation in the National Assessment of Educational
26.12Progress so that the state can benchmark its performance against the nation and other
26.13states, and, where possible, against other countries, and contribute to the national effort
26.14to monitor achievement.
26.15EFFECTIVE DATE.This section is effective July 1, 2011.

26.16    Sec. 4. Minnesota Statutes 2010, section 120B.30, is amended by adding a subdivision
26.17to read:
26.18    Subd. 1b. High school assessments. (a) Notwithstanding any other law to the
26.19contrary, the commissioner shall establish a system of high school assessments for students
26.20entering grade 8 in the 2012-2013 school year and later that provides information on the
26.21college and career readiness of Minnesota students and fulfills federal accountability
26.22requirements, consistent with this subdivision and related rules. For purposes of this
26.23subdivision, "college and career readiness" means the knowledge and skills that a high
26.24school graduate needs to undertake either credit-bearing coursework at a two-year or
26.25four-year college or university or career-track employment.
26.26(b) The commissioner shall establish and administer a high school reading and
26.27writing exam at the end of grade 10. The reading and writing exam must conform with
26.28the following:
26.29(1) align with the most recently revised academic content standards under section
26.30120B.023, subdivision 2;
26.31(2) produce independent scores for each content area;
26.32(3) include both multiple-choice and open-ended items on the reading portion of the
26.33exam to assess skills defined in the state's academic content standards;
26.34(4) be designed for computer administration and scoring so that, beginning the
26.35second year a computerized test is administered and as soon as practicable during the
27.1first year a computerized test is administered, the exam results of students who take
27.2computerized tests are available to the school or district within five full school days after
27.3the exam is administered, among other design characteristics;
27.4(5) allow for remediation and computer retests not sooner than six weeks after the
27.5previous administration of the reading and writing portions of the exam;
27.6(6) use achievement-level descriptors in reading and writing that define a student's
27.7readiness for college or a career;
27.8(7) require all general education students, as a condition of graduating, to achieve
27.9passing scores that indicate that students' performance meets or exceeds grade-level
27.10standards in reading and writing and that are established through a professionally
27.11recognized methodology, consistent with this paragraph;
27.12(8) require general education students to participate in a locally developed
27.13remediation plan if they do not achieve a passing score;
27.14(9) provide a state-level student appeals process that accommodates alternative
27.15measures to demonstrate students' college and career readiness and is available only to
27.16those limited number of students in the second semester of their senior year, not exceeding
27.17two percent of students in the graduating class, who are unable to demonstrate reading or
27.18writing proficiency on the assessment but can demonstrate equivalent levels of knowledge
27.19and skill based on the alternative measures; and
27.20(10) allow an eligible student to meet this exam requirement through an alternative
27.21method:
27.22(i) for high school students who transfer into Minnesota from another state where
27.23the high school reading and writing course and graduation requirements are of equal
27.24or greater rigor, meet that state's federal accountability exams requirements in reading
27.25or writing, as applicable;
27.26(ii) allow a student who has an active individualized education program to achieve a
27.27passing status at an individual level as prescribed by the commissioner; or
27.28(iii) waive the required exam for a high school student who is an English language
27.29learner under section 124D.59 and who has been enrolled for four or fewer school years in
27.30a school in which English is the primary language of instruction.
27.31(c) All general education students must receive a passing score in both reading
27.32and writing to graduate, consistent with paragraphs (b) and (e). The commissioner must
27.33establish the passing score that indicates a student's performance meets grade-level
27.34standards.
28.1(d) The commissioner shall establish statewide end-of-course exams in subjects
28.2equivalent to high school algebra and biology. These exams must conform with the
28.3following:
28.4(1) align with the most recently revised academic content standards under section
28.5120B.023, subdivision 2;
28.6(2) include both multiple-choice and open-ended items that assess the appropriate
28.7algebra and biology knowledge and skills contained in the state's academic content
28.8standards;
28.9(3) be designed for computer administration and scoring so that, beginning the
28.10second year a computerized test is administered and as soon as practicable during the
28.11first year a computerized test is administered, the exam results of students who take
28.12computerized tests are available to the school or district within five full school days after
28.13the exam is administered, among other design characteristics;
28.14(4) be administered at regular intervals that align with the most common high school
28.15schedules in Minnesota;
28.16(5) generate achievement levels established through a professionally recognized
28.17methodology;
28.18(6) use achievement-level descriptors that define a student's college and career
28.19readiness;
28.20(7) require all general education students, as a condition of graduating, to achieve
28.21passing scores that indicate that students' performance meets or exceeds grade-level
28.22standards in algebra and biology and that are established through a professionally
28.23recognized methodology, consistent with this paragraph;
28.24(8) require a student who does not pass a high school algebra or biology course to:
28.25(i) retake the course or complete a district-authorized credit recovery class; and
28.26(ii) retake the end-of-course assessment within a regularly scheduled administration
28.27window;
28.28(9) allow an eligible student to meet this requirement through an alternative method
28.29that demonstrates the student's college and career readiness:
28.30(i) for high school students who transfer into Minnesota from another state where
28.31the algebra or biology course content, as applicable, is of equal or greater rigor, pass that
28.32state's high school course and graduation requirements in algebra or biology, as applicable;
28.33(ii) allow a student who has an active individualized education program to achieve a
28.34passing status at an individual level as prescribed by the commissioner; or
29.1(iii) waive the required exam for a high school student who is an English language
29.2learner under section 124D.59 and who has been enrolled for four or fewer years in a
29.3school in which English is the primary language of instruction;
29.4(10) use three consecutive school years of research and analysis through the
29.52015-2016 school year, as prescribed by the commissioner, to calculate and report
29.6an alignment index that compares students' final grades in these courses with their
29.7end-of-course exam scores;
29.8(11) subsequent to calculating and reporting the alignment index under clause (10),
29.9require schools that are highly misaligned for two or more consecutive school years to
29.10transmit written notice of the misalignment to all parents of students enrolled in the school,
29.11as prescribed by the commissioner; and
29.12(12) when schools are highly misaligned for two or more consecutive years under
29.13clause (11), use school district funds under section 122A.60, subdivision 1a, paragraph
29.14(a), to correct the misalignment.
29.15(e) The requirements of this subdivision apply to students in public schools,
29.16including charter schools, who enter grade 8 in the 2012-2013 school year or later. The
29.17commissioner may establish a transition period where students who enter grade 8 in
29.18the 2012-2013 or 2013-2014 school year graduate either under the graduation-required
29.19assessment for diploma requirements under section 120B.30, subdivision 1, or through a
29.20staggered implementation of this subdivision. During the transition period, the proficiency
29.21level of any federally required or state-required interim passing score in reading or writing
29.22must be comparable to the passing scores currently required for reading and writing under
29.23the graduation-required assessment for diploma. The commissioner may seek authority
29.24from the legislature to adjust the timeline under this paragraph if circumstances such as
29.25changes in federal law governing educational accountability and assessment warrant
29.26such an adjustment.
29.27(f) To fully implement this subdivision and enable school districts to provide
29.28intervention and support to struggling students and improve instruction for all students,
29.29the commissioner must provide districts with:
29.30(1) benchmark assessments that are aligned with the high school reading and writing
29.31assessment and algebra and biology end-of-course exams; and
29.32(2) an item bank available to teachers for creating formative assessments to help
29.33students prepare for the high school reading and writing assessment and algebra and
29.34biology end-of-course exams.
29.35(g) The commissioner shall expand the membership and purpose of the Assessment
29.36Advisory Committee established under section 120B.365 to include assessment experts
30.1and practitioners from both secondary and postsecondary education systems and other
30.2appropriate stakeholders to monitor the implementation of and student outcomes based on
30.3the end-of-course exams and policies and the state support available to districts, including
30.4small or rural districts, under this subdivision. This committee shall report annually by
30.5February 15 to the commissioner and the legislature on the implementation of and student
30.6outcomes based on the exams and policies under this subdivision. Notwithstanding
30.7section 15.059, subdivision 3, committee members shall not receive compensation, per
30.8diem payments, or reimbursement for expenses.
30.9(h) The commissioner may not begin to develop additional statewide end-of-course
30.10exams in geometry, chemistry, or physics until specifically authorized in law to do so.
30.11(i) A district or charter school must indicate on a student's transcript the student's
30.12level of college and career readiness in reading, writing, algebra, and biology under this
30.13subdivision after the levels have been established through a professionally recognized
30.14methodology.
30.15EFFECTIVE DATE.This section is effective the day following final enactment.

30.16    Sec. 5. [120B.361] DISTRICT AND CHARTER SCHOOL AND SCHOOL
30.17DISTRICT GRADING SYSTEM AND SCHOOL RECOGNITION PROGRAM.
30.18    Subdivision 1. District and charter school and school district grades. (a)
30.19Consistent with the state growth targets established under sections 120B.299 and 120B.35,
30.20subdivision 3, paragraphs (a) and (b), and the school performance report cards under
30.21section 120B.36, subdivision 1, an "A to F" grading system for district and charter schools
30.22and school districts is established to help identify those schools and districts where
30.23students are achieving low, medium, or high growth and achieving or not achieving
30.24proficiency on statewide assessments under section 120B.30. For purposes of this section,
30.25and using the state growth target, the commissioner annually must assign each district
30.26and charter school and school district an "A to F" grade and then report that grade under
30.27section 120B.36, subdivision 1, based on the following calculations:
30.28(1) 50 percent of a school's grade must be determined based on the numbers and
30.29percentages of students in each applicable student category for which assessment data
30.30is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
30.31paragraph (c), who achieved proficiency on the statewide reading and mathematics
30.32assessments under section 120B.30 in the previous school year;
30.33(2) 25 percent of a school's grade must be determined based on the numbers and
30.34percentages of students in each applicable student category for which assessment data
30.35is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
31.1paragraph (c), who achieved low growth, medium growth, or high growth on the statewide
31.2reading and mathematics assessments under section 120B.30 in the previous school year;
31.3(3) 15 percent of a school's grade must be determined based on the numbers and
31.4percentages of students in each applicable student category for which assessment data
31.5is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
31.6paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
31.7reading assessments under section 120B.30 in the previous school year;
31.8(4) ten percent of a school's grade must be determined based on the numbers and
31.9percentages of students in each applicable student category for which assessment data
31.10is disaggregated under section 120B.35, subdivision 3, paragraph (b), clause (2), and
31.11paragraph (c), who achieved low growth and did not achieve proficiency on the statewide
31.12mathematics assessments under section 120B.30 in the previous school year; and
31.13(5) using the calculations in clauses (1) to (4), a school district's grade must be
31.14determined based on the combined average scores of all district schools.
31.15(b) The grade a school or district receives under this subdivision must accurately
31.16reflect the differences in schools' performances based on students' proficiency and growth
31.17and the calculations required under this subdivision. A school or district may appeal its
31.18grade in writing to the commissioner within 30 days of receiving notice of its grade. The
31.19commissioner's decision regarding the grade is final. Grades given under this section are
31.20nonpublic data under section 13.02, subdivision 9, until not later than ten days after the
31.21appeal under this paragraph is complete.
31.22    Subd. 2. District and charter school recognition. (a) A school that received a
31.23letter grade of "A" in the previous school year, improved at least one letter grade in the
31.24previous school year, or improved two or more letter grades in the two previous school
31.25years is eligible to receive a school recognition award.
31.26(b) A school recognition award under this subdivision equals $100 per enrollee for
31.27each eligible school. The commissioner must distribute the award to each eligible school.
31.28(c) An eligible school that receives a school recognition award may use the award to:
31.29(1) pay onetime bonuses for licensed staff employed at the school;
31.30(2) pay onetime expenditures for educational equipment or materials to help
31.31maintain or improve student academic achievement; or
31.32(3) temporarily employ licensed or otherwise qualified staff to help maintain or
31.33improve student academic achievement.
31.34Notwithstanding any other law to the contrary, an award a school receives under this
31.35subdivision is not subject to a collective bargaining agreement.
32.1(d) To distribute the award at the school, and consistent with paragraph (c), an
32.2eligible school may select a site team that includes at least the school principal or other
32.3person having administrative control of the school, teachers employed at the school, the
32.4parent of a student enrolled in the school, and a community representative to decide how
32.5best to use the award. Alternatively, if by November 1 in the year in which the award
32.6is made the site team cannot reach agreement or if no site team is selected, the school
32.7principal or other person having administrative control of the school must distribute the
32.8award.
32.9EFFECTIVE DATE.This section is effective the day following final enactment
32.10and requires the education commissioner to use student performance data beginning in the
32.112011-2012 school year, determine and report a letter grade for each school and district,
32.12and distribute school recognition awards beginning in the 2012-2013 school year and later.

32.13    Sec. 6. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
32.14to read:
32.15    Subd. 3a. Qualified economic offer. (a) Notwithstanding any law to the contrary,
32.16if a school board offers teachers a biennial contract that includes a percentage increase
32.17in total compensation at least equal to the district's biennial percentage increase in
32.18basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the
32.19most recent estimate of district basic revenue for the biennium that corresponds to the
32.20prospective contract term to (2) district basic revenue for the previous biennium; teachers
32.21may not strike for any issue relating to total compensation for the years covered by that
32.22contract or submit any total compensation issue to interest arbitration under section
32.23179A.16. However, teachers may strike for noneconomic issues, consistent with section
32.24179A.18, subdivision 2, or submit noneconomic issues to interest arbitration under section
32.25179A.16. District fund balances or other revenue sources or allocations are not to be
32.26included in any calculation of compensation under this subdivision.
32.27(b) If a school board and teachers do not agree on the allocation of the total
32.28compensation offered by the board under paragraph (a) by January 15 of an even-numbered
32.29calendar year as required for collective bargaining agreements under section 123B.05,
32.30subdivision 2, unless section 123B.05, subdivision 2, clauses (1) and (2), apply and the
32.31arbitration panel issues its decision within 60 days, the allocation of total compensation
32.32among teachers shall be as follows:
32.33(1) existing employee benefits must continue at the same percentage of the total
32.34compensation and in the same manner as provided in the teachers' immediately preceding
32.35employment contract; and
33.1(2) based on the percentage increase in the general education formula allowance
33.2for the biennium for which the contract is in effect, any remaining percentage of the total
33.3compensation for the contract period being negotiated, after subtracting the value of
33.4clause (1), is for increases in teacher salary based on first, alternative teacher pay plans
33.5under section 122A.414; second, the number of years of service; and third, promotion
33.6and advanced education.
33.7(c) For purposes of this subdivision, the following terms have the meanings given
33.8them.
33.9"Teachers" means classroom teachers licensed under section 122A.18. At a school
33.10board's election, teachers also means school administrators licensed under section
33.11122A.14, subdivision 1. A school board that elects to offer school administrators an
33.12employment contract under this subdivision must make the offer consistent with section
33.13179A.20 and the provisions of this subdivision. A school board, at its discretion, also
33.14may elect to offer any of its nonlicensed employees an employment contract under the
33.15terms of this subdivision.
33.16"Total compensation" means the sum of the following cost components: (i) a school
33.17district's total salary schedule costs excluding alternative teacher compensation under
33.18sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
33.19teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
33.20health insurance costs paid by the school district for its teachers, excluding any district
33.21contributions to health reimbursement arrangements (HRA) or health savings accounts
33.22(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
33.23(v) total long-term disability costs paid by the school district for its teachers; (vi) total
33.24dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
33.25costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
33.26salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
33.27for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
33.28the school district for its teachers; and (xi) other miscellaneous costs identified by the
33.29school district as payment for teachers' services or benefits such as special school events,
33.30extra service duty, summer school instruction, drivers' education outside the regular school
33.31day and school year, and other direct salary payments to teachers or fringe benefit costs
33.32paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
33.33EFFECTIVE DATE.This section is effective for contracts ratified beginning
33.34July 1, 2011.

34.1    Sec. 7. Minnesota Statutes 2010, section 122A.41, is amended by adding a subdivision
34.2to read:
34.3    Subd. 2a. Qualified economic offer. (a) Notwithstanding any law to the contrary,
34.4if a school board offers teachers a biennial contract that includes a percentage increase
34.5in total compensation at least equal to the district's biennial percentage increase in
34.6basic revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the
34.7most recent estimate of district basic revenue for the biennium that corresponds to the
34.8prospective contract term to (2) district basic revenue for the previous biennium; teachers
34.9may not strike for any issue relating to total compensation for the years covered by that
34.10contract or submit any total compensation issue to interest arbitration under section
34.11179A.16. However, teachers may strike for noneconomic issues, consistent with section
34.12179A.18, subdivision 2, or submit noneconomic issues to interest arbitration under section
34.13179A.16. District fund balances or other revenue sources or allocations are not to be
34.14included in any calculation of compensation under this subdivision.
34.15(b) If a school board and teachers do not agree on the allocation of the total
34.16compensation offered by the board under paragraph (a) by January 15 of an even-numbered
34.17calendar year as required for collective bargaining agreements under section 123B.05,
34.18subdivision 2, unless section 123B.05, subdivision 2, clauses (1) and (2), apply and the
34.19arbitration panel issues its decision within 60 days, the allocation of total compensation
34.20among teachers shall be as follows:
34.21(1) existing employee benefits must continue at the same percentage of the total
34.22compensation and in the same manner as provided in the teachers' immediately preceding
34.23employment contract; and
34.24(2) based on the percentage increase in the general education formula allowance
34.25for the biennium for which the contract is in effect, any remaining percentage of the total
34.26compensation for the contract period being negotiated, after subtracting the value of
34.27clause (1), is for increases in teacher salary based on first, alternative teacher pay plans
34.28under section 122A.414; second, the number of years of service; and third, promotion
34.29and advanced education.
34.30(c) For the purposes of this subdivision, the following terms have the meanings
34.31given them.
34.32"Teachers" means classroom teachers licensed under section 122A.18. At a school
34.33board's election, teachers also means school administrators licensed under section
34.34122A.14, subdivision 1. A school board that elects to offer school administrators an
34.35employment contract under this subdivision must make the offer consistent with section
34.36179A.20 and the provisions of this subdivision. A school board, at its discretion, also
35.1may elect to offer any of its nonlicensed employees an employment contract under the
35.2terms of this subdivision.
35.3"Total compensation" means the sum of the following cost components: (i) a school
35.4district's total salary schedule costs excluding alternative teacher compensation under
35.5sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
35.6teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
35.7health insurance costs paid by the school district for its teachers, excluding any district
35.8contributions to health reimbursement arrangements (HRA) or health savings accounts
35.9(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
35.10(v) total long-term disability costs paid by the school district for its teachers; (vi) total
35.11dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
35.12costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
35.13salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
35.14for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
35.15the school district for its teachers; and (xi) other miscellaneous costs identified by the
35.16school district as payment for teachers' services or benefits such as special school events,
35.17extra service duty, summer school instruction, drivers' education outside the regular school
35.18day and school year, and other direct salary payments to teachers or fringe benefit costs
35.19paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
35.20EFFECTIVE DATE.This section is effective for contracts ratified beginning
35.21July 1, 2011.

35.22    Sec. 8. Minnesota Statutes 2010, section 122A.414, subdivision 1a, is amended to read:
35.23    Subd. 1a. Transitional planning year. (a) To be eligible to participate in an
35.24alternative teacher professional pay system, a school district, intermediate school district,
35.25or site, charter school must, at least one school year before it expects to fully implement
35.26an alternative pay system, must:
35.27(1) submit to the department a letter of intent executed by the school district or
35.28intermediate school district and the exclusive representative of the teachers to complete
35.29a plan preparing for full implementation, begin to develop an alternative teacher pay
35.30plan, consistent with subdivision 2, that may include, among other activities, training to
35.31evaluate teacher performance, a restructured school day to develop integrated ongoing
35.32site-based professional development activities, release time to develop an alternative pay
35.33system agreement, and teacher and staff training on using multiple data sources; and.
36.1(2) agree to use up to two percent of basic revenue for staff development purposes,
36.2consistent with sections 122A.60 and 122A.61, to develop the alternative teacher
36.3professional pay system agreement under this section.
36.4(b) To be eligible to participate in an alternative teacher professional pay system, a
36.5charter school, at least one school year before it expects to fully implement an alternative
36.6pay system, must:
36.7(1) submit to the department a letter of intent executed by the charter school and the
36.8charter school board of directors;
36.9(2) submit the record of a formal vote by the teachers employed at the charter
36.10school indicating at least 70 percent of all teachers agree to implement the alternative
36.11pay system; and
36.12(3) agree to use up to two percent of basic revenue for staff development purposes,
36.13consistent with sections 122A.60 and 122A.61, to develop the alternative teacher
36.14professional pay system.
36.15(c) The commissioner may waive the planning year if the commissioner determines,
36.16based on the criteria under subdivision 2, that the school district, intermediate school
36.17district, site or charter school is ready to fully implement an alternative pay system.
36.18EFFECTIVE DATE.This section is effective the day following final enactment,
36.19and applies to any new plan that the commissioner approves or any approved plan that is
36.20modified after that date.

36.21    Sec. 9. Minnesota Statutes 2010, section 122A.414, subdivision 2, is amended to read:
36.22    Subd. 2. Alternative teacher professional pay system. (a) To participate in this
36.23program, a school district, intermediate school district, school site, or charter school must
36.24have an educational improvement plan under section 122A.413 and an alternative teacher
36.25professional pay system agreement under paragraph (b). A charter school participant also
36.26must comply with subdivision 2a.
36.27(b) The alternative teacher professional pay system agreement must:
36.28(1) describe how teachers can achieve career advancement and additional
36.29compensation;
36.30(2) describe how the school district, intermediate school district, school site, or
36.31charter school will provide teachers with career advancement options that allow teachers
36.32to retain primary roles in student instruction and facilitate site-focused professional
36.33development that helps other teachers improve their skills;
36.34(3) reform the "steps and lanes" salary schedule by establishing an alternative
36.35salary schedule that uses measures other than seniority to award compensation increases
37.1based on the requirements in this clause, prevent any teacher's compensation paid before
37.2implementing the pay system from being reduced as a result of participating in this
37.3system, and base at least 60 percent of award any compensation increase on teacher
37.4performance using based on:
37.5(i) schoolwide student achievement gains under section 120B.35 or locally selected
37.6standardized assessment outcomes, or both;
37.7(ii) districtwide measures of student achievement that use longitudinal data on
37.8student academic growth, student attendance, student engagement and connection,
37.9other outcome measures under section 120B.35, and other locally selected measures of
37.10student learning explicitly aligned with the elements of curriculum for which teachers are
37.11responsible, which must constitute 50 percent of any compensation increase; and
37.12(ii) data from parent surveys, an annual evaluation performed by a trained school
37.13administrator, and other performance measures such as student surveys, peer observations
37.14and review, teacher performance portfolios, video classroom observations combined with
37.15teacher reflection, and other highly reliable research-based measures; and
37.16(iii) an objective evaluation program that includes:
37.17(A) individual teacher evaluations aligned with the educational improvement plan
37.18under section 122A.413 and the staff development plan under section 122A.60; and
37.19(B) objective evaluations using multiple criteria conducted by a locally selected and
37.20periodically trained evaluation team that understands teaching and learning consistent
37.21with items (i) and (ii);
37.22(4) provide integrated ongoing site-based professional development activities to
37.23improve instructional skills and learning that are aligned with student needs under section
37.24122A.413 , consistent with the staff development plan under section 122A.60 and led
37.25during the school day by trained teacher leaders such as master or mentor teachers;
37.26(5) allow any teacher in a participating school district, intermediate school district,
37.27school site, or charter school that implements an alternative pay system to participate in
37.28that system without any quota or other limit; and
37.29(6) encourage collaboration rather than competition among teachers.
37.30EFFECTIVE DATE.This section is effective June 1, 2013, and applies to any new
37.31plan that the commissioner approves or any approved plan that is modified after that date.

37.32    Sec. 10. Minnesota Statutes 2010, section 122A.414, subdivision 2a, is amended to
37.33read:
38.1    Subd. 2a. Charter school applications. For charter school applications, the board
38.2of directors of a charter school that satisfies the conditions under subdivisions 2 and 2b
38.3must submit to the commissioner an application that contains:
38.4(1) an agreement to implement an alternative teacher professional pay system under
38.5this section; and
38.6(2) a resolution by the charter school board of directors adopting the agreement; and.
38.7(3) the record of a formal vote by the teachers employed at the charter school
38.8indicating that at least 70 percent of all teachers agree to implement the alternative
38.9teacher professional pay system, unless the charter school submits an alternative teacher
38.10professional pay system agreement under this section before the first year of operation.
38.11Alternative compensation revenue for a qualifying charter school must be calculated
38.12under section 126C.10, subdivision 34, paragraphs (a) and (b).
38.13EFFECTIVE DATE.This section is effective June 1, 2013, and applies to any new
38.14plan that the commissioner approves or any approved plan that is modified after that date.

38.15    Sec. 11. Minnesota Statutes 2010, section 122A.414, subdivision 2b, is amended to
38.16read:
38.17    Subd. 2b. Approval process. (a) Consistent with the requirements of this section
38.18and sections 122A.413 and 122A.415, the department must prepare and transmit to
38.19interested school districts, intermediate school districts, school sites, and charter schools
38.20a standard form for applying to participate in the alternative teacher professional pay
38.21system. The commissioner annually must establish at least three dates as deadlines by
38.22which interested applicants must submit an application to the commissioner under this
38.23section. An interested school district, intermediate school district, school site, or charter
38.24school must submit to the commissioner a completed application executed by the district
38.25superintendent and the exclusive bargaining representative of the teachers if the applicant
38.26is a school district, or intermediate school district, or school site, or executed by the charter
38.27school board of directors if the applicant is a charter school. The application must include
38.28the proposed alternative teacher professional pay system agreement under subdivision 2.
38.29The department must review a completed application within 30 business days of the most
38.30recent application deadline and recommend to the commissioner whether to approve or
38.31disapprove the application. The commissioner must approve applications on a first-come,
38.32first-served basis. The applicant's alternative teacher professional pay system agreement
38.33must be legally binding on the applicant and the collective bargaining representative before
38.34the applicant receives alternative compensation revenue. The commissioner must approve
38.35or disapprove an application based on the requirements under subdivisions 2 and 2a.
39.1(b) If the commissioner disapproves an application, the commissioner must
39.2give the applicant timely notice of the specific reasons in detail for disapproving the
39.3application. The applicant may revise and resubmit its application and related documents
39.4to the commissioner within 30 business days of receiving notice of the commissioner's
39.5disapproval and the commissioner must approve or disapprove the revised application,
39.6consistent with this subdivision. Applications that are revised and then approved are
39.7considered submitted on the date the applicant initially submitted the application.
39.8EFFECTIVE DATE.This section is effective June 1, 2013, and applies to any new
39.9plan that the commissioner approves or any approved plan that is modified after that date.

39.10    Sec. 12. Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to read:
39.11    Subd. 15. Annuity contract; payroll allocation. (a) At the request of an employee
39.12and as part of the employee's compensation arrangement, the board may purchase an
39.13individual annuity contract for an employee for retirement or other purposes and may
39.14make payroll allocations in accordance with such arrangement for the purpose of paying
39.15the entire premium due and to become due under such contract. The allocation must be
39.16made in a manner which will qualify the annuity premiums, or a portion thereof, for
39.17the benefit afforded under section 403(b) of the current Federal Internal Revenue Code
39.18or any equivalent provision of subsequent federal income tax law. The employee shall
39.19own such contract and the employee's rights under the contract shall be nonforfeitable
39.20except for failure to pay premiums. Section 122A.40 shall not be applicable hereto and the
39.21board shall have no liability thereunder because of its purchase of any individual annuity
39.22contracts. This statute shall be applied in a nondiscriminatory manner to employees of
39.23the school district. The school board of a school district shall determine the identity and
39.24number of the available vendors under federal Internal Revenue Code, section 403(b) is a
39.25term and condition of employment under section 179A.03.
39.26    (b) When considering vendors under paragraph (a), the school district and the
39.27exclusive representative of the employees shall consider all of the following:
39.28    (1) the vendor's ability to comply with all employer requirements imposed by
39.29section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments,
39.30other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the
39.31Internal Revenue Code, and any regulation adopted in relation to these laws;
39.32    (2) the vendor's experience in providing 403(b) plans;
39.33    (3) the vendor's potential effectiveness in providing client services attendant to
39.34its plan and in relation to cost;
39.35    (4) the nature and extent of rights and benefits offered under the vendor's plan;
40.1    (5) the suitability of the rights and benefits offered under the vendor's plan;
40.2    (6) the vendor's ability to provide the rights and benefits offered under its plan; and
40.3    (7) the vendor's financial stability.
40.4EFFECTIVE DATE.This section is effective July 1, 2011.

40.5    Sec. 13. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
40.6    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
40.7school must employ a superintendent who shall be an ex officio nonvoting member of the
40.8school board. The authority for selection and employment of a superintendent must be
40.9vested in the board in all cases. An individual employed by a board as a superintendent
40.10shall have an initial employment contract for a period of time no longer than three years
40.11from the date of employment. Any subsequent employment contract must not exceed a
40.12period of three years. A board, at its discretion, may or may not renew an employment
40.13contract. A board must not, by action or inaction, extend the duration of an existing
40.14employment contract. Beginning 365 days prior to the expiration date of an existing
40.15employment contract, a board may negotiate and enter into a subsequent employment
40.16contract to take effect upon the expiration of the existing contract. A subsequent contract
40.17must be contingent upon the employee completing the terms of an existing contract. If a
40.18contract between a board and a superintendent is terminated prior to the date specified in
40.19the contract, the board may not enter into another superintendent contract with that same
40.20individual that has a term that extends beyond the date specified in the terminated contract.
40.21A board may terminate a superintendent during the term of an employment contract for any
40.22of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
40.23not rely upon an employment contract with a board to assert any other continuing contract
40.24rights in the position of superintendent under section 122A.40. Notwithstanding the
40.25provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
40.26to the contrary, no individual shall have a right to employment as a superintendent based
40.27on order of employment in any district. If two or more districts enter into an agreement for
40.28the purchase or sharing of the services of a superintendent, the contracting districts have
40.29the absolute right to select one of the individuals employed to serve as superintendent
40.30in one of the contracting districts and no individual has a right to employment as the
40.31superintendent to provide all or part of the services based on order of employment in a
40.32contracting district. The superintendent of a district shall perform the following:
40.33    (1) visit and supervise the schools in the district, report and make recommendations
40.34about their condition when advisable or on request by the board;
40.35    (2) recommend to the board employment and dismissal of teachers;
41.1    (3) annually evaluate each school principal assigned responsibility for supervising a
41.2school building within the district, consistent with section 122A.73;
41.3(4) superintend school grading practices and examinations for promotions;
41.4    (4) (5) make reports required by the commissioner; and
41.5    (5) (6) perform other duties prescribed by the board.
41.6EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
41.7later.

41.8    Sec. 14. [124D.031] ENROLLMENT OPTIONS FOR STUDENTS AT
41.9LOW-PERFORMING PUBLIC SCHOOLS.
41.10    Subdivision 1. Student enrollment options. (a) A student who attends a persistently
41.11low-performing school located in a city of the first class for at least one school year and
41.12whose family income is equal to or less than 175 percent of the federal poverty level is
41.13eligible to enroll in a nonpublic school under this section or in a nonresident district
41.14school or program under section 124D.03.
41.15(b) For the purposes of this section, "persistently low-performing school" means a
41.16public school located in a city of the first class that has student performance levels for at
41.17least three consecutive school years immediately preceding the school year in which a
41.18student enrolls in a nonpublic school under this section or in a nonresident district school
41.19or program under section 124D.03, as follows:
41.20(1) the combined total percentage of students scoring at the "does not meet
41.21standards" level for either the reading or mathematics Minnesota Comprehensive
41.22Assessment exceeds 40 percent for all grades tested;
41.23(2) the combined percentage of students demonstrating "proficient, low growth,"
41.24"not proficient, low growth," and "not proficient, medium growth" for either the reading or
41.25mathematics Minnesota Comprehensive Assessment exceeds 50 percent; or
41.26(3) 50 percent or more students in secondary school do not receive a passing
41.27score when first tested on the graduation required assessment for diploma in reading,
41.28mathematics, or writing.
41.29    Subd. 2. Eligible nonpublic schools. (a) To be eligible to participate under this
41.30section, a nonpublic school must comply with section 121A.04 and chapter 363A;
41.31make reasonable accommodations for students and meet the requirements under the
41.32Americans with Disabilities Act, Public Law 101-336; adopt an antidiscrimination and
41.33harassment and violence prevention policy that complies with section 121A.03 and an
41.34anti-intimidation and bullying policy that complies with section 121A.0695; submit
41.35data to the commissioner in the form and manner required by the commissioner so that
42.1the school may be included in the state's annual school performance report cards under
42.2section 120B.36; accept students on a random basis, except that the nonpublic school may
42.3give preference to the siblings of students already enrolled in the nonpublic school; and
42.4notify the commissioner of its intent to participate under this section. The nonpublic
42.5school must administer the statewide reading and math tests under section 120B.30 to its
42.6students enrolled under this section.
42.7(b) The commissioner shall ensure that the nonpublic school complies with the
42.8requirements of this subdivision.
42.9    Subd. 3. Tuition funding for students transferring to nonpublic schools. (a) If a
42.10student transfers to a nonpublic school under this section, and upon receiving proof that
42.11the student is enrolled in the nonpublic school, the commissioner shall make quarterly
42.12payments to the student's parent or guardian in an amount equal to the lesser of the
42.13state average general education revenue per pupil unit, calculated without transportation
42.14sparsity revenue or the nonpublic school's operating and debt service cost per pupil
42.15that is related to educational programming, as determined by the commissioner. The
42.16commissioner shall send the check to the nonpublic school and the parent or guardian shall
42.17restrictively endorse the check for the nonpublic school's use.
42.18(b) Notwithstanding other law to the contrary, if a student who is eligible to transfer
42.19to a nonpublic school under this section instead elects to remain enrolled in a persistently
42.20low performing school, then the student's parent may select a qualified tutor to assist the
42.21student in meeting state and local academic standards and the district must pay the actual
42.22cost of the tutor's services in an amount up to $400 per school year. The commissioner
42.23must reimburse the district for the cost of the tutor's services paid by the district, consistent
42.24with standard accounting procedures. The scholarship payments must be made by the
42.25commissioner to the recipients in four equal payments on September 15, December 15,
42.26March 15, and July 1.
42.27    Subd. 4. Student transportation. A resident school district must provide for
42.28transportation within the district's borders for a student who enrolls in a nonpublic school
42.29under this section and shall receive transportation funding equal to the actual costs in the
42.30current school year for those transportation services.
42.31    Subd. 5. Funding for student testing. The state shall pay the nonpublic school the
42.32costs of administering tests under section 120B.30.
42.33    Subd. 6. Curriculum review; exemption from instruction. A nonpublic school
42.34must provide a procedure for a parent, guardian, or an adult student, 18 years or older, to
42.35review the content of instructional materials and, if the materials are found objectionable,
42.36exempt the student from the instruction upon request.
43.1    Subd. 7. Financial audit. A nonpublic school enrolling students under this section
43.2must submit to the commissioner by November 15 of each year a summary of audited
43.3financial data for the preceding fiscal year.
43.4    Subd. 8. List of nonpublic schools. The commissioner shall publish a list of
43.5participating nonpublic schools.
43.6EFFECTIVE DATE.This section is effective the day following final enactment
43.7and applies to the 2011-2012 school year and later.

43.8    Sec. 15. Minnesota Statutes 2010, section 124D.86, subdivision 3, is amended to read:
43.9    Subd. 3. Integration Innovation revenue. Integration revenue (a) A district's
43.10innovation revenue equals the following amounts:
43.11(1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil
43.12units for the school year;
43.13(2) for Independent School District No. 625, St. Paul, 30 percent of $445 times the
43.14adjusted pupil units for the school year;
43.15(3) (2) for Special School District No. 1, Minneapolis, the sum of 30 percent of $445
43.16times the adjusted pupil units for the school year and an additional $35 times the adjusted
43.17pupil units for the school year that is provided entirely through a local levy; and
43.18(4) (3) for a district not listed in clause (1), or (2), or (3), that must implement a plan
43.19under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of
43.20protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent,
43.21the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the
43.22aid received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school
43.23year; a district's innovation revenue allowance equals its integration revenue allowance
43.24for fiscal year 2011, except that a district's revenue allowance under this clause may not
43.25exceed $129 per adjusted pupil unit for that year.
43.26(5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement
43.27a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180,
43.28the lesser of
43.29(i) the actual cost of implementing the plan during the fiscal year minus the aid
43.30received under subdivision 6, or
43.31(ii) $92 times the adjusted pupil units for the school year.
43.32Any money received by districts in clauses (1) to (3) which exceeds the amount
43.33received in fiscal year 2000 shall be subject to the budget requirements in subdivision
43.341a; and
44.1(6) for a member district of a multidistrict integration collaborative that files a plan
44.2with the commissioner, but is not contiguous to a racially isolated district, integration
44.3revenue equals the amount defined in clause (5).
44.4(b) A district's innovation levy equals 100 percent of the district's innovation revenue
44.5under paragraph (a), clauses (1) and (2), and 30 percent of the district's innovation revenue
44.6under paragraph (a), clause (3).
44.7(c) A district's innovation aid equals its innovation revenue minus its innovation levy.
44.8(d) Innovation revenue received under this section must be spent on research-based
44.9activities designed to close the achievement gap.
44.10EFFECTIVE DATE.This section is effective for state aid recognized by school
44.11districts in fiscal year 2012 and later and for levies payable in 2012 and later.

44.12    Sec. 16. Minnesota Statutes 2010, section 179A.16, subdivision 1, is amended to read:
44.13    Subdivision 1. Nonessential employees. An exclusive representative or an
44.14employer of a unit of employees other than essential employees or teachers may request
44.15interest arbitration by providing written notice of the request to the other party and the
44.16commissioner. The written request for arbitration must specify the items to be submitted to
44.17arbitration and whether conventional, final-offer total-package, or final-offer item-by-item
44.18arbitration is contemplated by the request.
44.19The items to be submitted to arbitration and the form of arbitration to be used are
44.20subject to mutual agreement. If an agreement to arbitrate is reached, it must be reduced to
44.21writing and a copy of the agreement filed with the commissioner. A failure to respond, or
44.22to reach agreement on the items or form of arbitration, within 15 days of receipt of the
44.23request to arbitrate constitutes a rejection of the request.
44.24EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
44.25to all teacher collective bargaining agreements entered into or modified after that date.

44.26    Sec. 17. [179A.175] TEACHER CONTRACTS.
44.27Notwithstanding section 179A.16 and any other law to the contrary, a school board
44.28and the exclusive representative of the teachers may meet and negotiate and enter into an
44.29employment contract only during the three-month period preceding September 1 when
44.30school is not in session. If the school board and the exclusive representative fail to reach a
44.31certified written agreement by September 1 in the odd-numbered year, the negotiations
44.32must be suspended until the next even-numbered calendar year and resume during the
44.33three-month period preceding September 1 when school is again not in session. During
45.1the time the negotiations are suspended, employee compensation must be according to
45.2the terms of the collective bargaining agreement in effect in the preceding collective
45.3bargaining cycle. If agreement is not reached during the three-month period in the
45.4even-numbered year, the school board must submit the matter to an arbitrator selected
45.5by the Bureau of Mediation Services who must determine the matter based on a final
45.6offer total package from each party.
45.7EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
45.8to all teacher collective bargaining agreements entered into or modified after that date.

45.9    Sec. 18. Minnesota Statutes 2010, section 179A.18, subdivision 1, is amended to read:
45.10    Subdivision 1. When authorized. Essential employees and teachers may not strike.
45.11Except as otherwise provided by subdivision 2 and section 179A.17, subdivision 2, other
45.12public employees may strike only under the following circumstances:
45.13(1)(i) the collective bargaining agreement between their exclusive representative and
45.14their employer has expired or, if there is no agreement, impasse under section 179A.17,
45.15subdivision 2 , has occurred; and
45.16(ii) the exclusive representative and the employer have participated in mediation
45.17over a period of at least 45 days, provided that the mediation period established by section
45.18179A.17, subdivision 2 , governs negotiations under that section, and provided that for the
45.19purposes of this subclause the mediation period commences on the day following receipt
45.20by the commissioner of a request for mediation; or
45.21(2) the employer violates section 179A.13, subdivision 2, clause (9); or
45.22(3) in the case of state employees, (i) the Legislative Coordinating Commission has
45.23rejected a negotiated agreement or arbitration decision during a legislative interim; or (ii)
45.24the entire legislature rejects or fails to ratify a negotiated agreement or arbitration decision,
45.25which has been approved during a legislative interim by the Legislative Coordinating
45.26Commission, at a special legislative session called to consider it, or at its next regular
45.27legislative session, whichever occurs first.
45.28EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
45.29to all teacher collective bargaining agreements entered into or modified after that date.

45.30    Sec. 19. Minnesota Statutes 2010, section 179A.18, subdivision 3, is amended to read:
45.31    Subd. 3. Notice. In addition to the other requirements of this section, no employee
45.32may strike unless written notification of intent to strike is served on the employer and the
45.33commissioner by the exclusive representative at least ten days prior to the commencement
46.1of the strike. For all employees other than teachers, if more than 30 days have expired
46.2after service of a notification of intent to strike, no strike may commence until ten days
46.3after service of a new written notification. For teachers, no strike may commence more
46.4than 25 days after service of notification of intent to strike unless, before the end of the
46.525-day period, the exclusive representative and the employer agree that the period during
46.6which a strike may commence shall be extended for an additional period not to exceed five
46.7days. Teachers are limited to one notice of intent to strike for each contract negotiation
46.8period, provided, however, that a strike notice may be renewed for an additional ten days,
46.9the first five of which shall be a notice period during which no strike may occur, if the
46.10following conditions have been satisfied:
46.11(1) an original notice was provided pursuant to this section; and
46.12(2) a tentative agreement to resolve the dispute was reached during the original
46.13strike notice period; and
46.14(3) such tentative agreement was rejected by either party during or after the original
46.15strike notice period.
46.16The first day of the renewed strike notice period shall commence on the day following
46.17the expiration of the previous strike notice period or the day following the rejection
46.18of the tentative agreement, whichever is later. Notification of intent to strike under
46.19subdivisions 1, clause (1); and 2, clause (1), may not be served until the collective
46.20bargaining agreement has expired, or if there is no agreement, on or after the date impasse
46.21under section 179A.17 has occurred.
46.22EFFECTIVE DATE.This section is effective beginning July 1, 2013, and applies
46.23to all teacher collective bargaining agreements entered into or modified after that date.

46.24    Sec. 20. IMPLEMENTING A PERFORMANCE-BASED EVALUATION
46.25SYSTEM FOR PRINCIPALS.
46.26(a) To implement the requirements of Minnesota Statutes, sections 123B.143,
46.27subdivision 1, clause (3), and 122A.73, the commissioner of education, the Minnesota
46.28Association of Secondary School Principals, and the Minnesota Association of Elementary
46.29School Principals must convene a group of recognized and qualified experts and interested
46.30stakeholders, including principals, superintendents, teachers, school board members, and
46.31parents, among other stakeholders, to develop a performance-based system model for
46.32annually evaluating school principals. In developing the system model, the group must at
46.33least consider how principals develop and maintain:
46.34(1) high standards for student performance;
46.35(2) rigorous curriculum;
47.1(3) quality instruction;
47.2(4) a culture of learning and professional behavior;
47.3(5) connections to external communities;
47.4(6) systemic performance accountability; and
47.5(7) leadership behaviors that create effective schools and improve school
47.6performance, including how to plan for, implement, support, advocate for, communicate
47.7about, and monitor continuous and improved learning.
47.8The group also may consider whether to establish a multitiered evaluation system
47.9that supports newly licensed principals in becoming highly skilled school leaders and
47.10provides opportunities for advanced learning for more experienced school leaders.
47.11(b) The commissioner, the Minnesota Association of Secondary School Principals,
47.12and the Minnesota Association of Elementary School Principals must submit a
47.13written report and all the group's working papers to the education committees of the
47.14legislature by February 1, 2012, discussing the group's responses to paragraph (a) and its
47.15recommendations for a performance-based system model for annually evaluating school
47.16principals. The group convened under this section expires June 1, 2012.
47.17EFFECTIVE DATE.This section is effective the day following final enactment
47.18and applies to principal evaluations beginning in the 2013-2014 school year and later.

47.19    Sec. 21. REPORT; PLAN FOR IMPLEMENTING SCHOOL AND DISTRICT
47.20GRADING SYSTEM.
47.21The commissioner of education must convene a stakeholder group that includes
47.22assessment and evaluation directors, educators, researchers, and parents to advise the
47.23commissioner on developing a plan to implement the school and district grading system
47.24under Minnesota Statutes, section 120B.361. The commissioner must present the plan
47.25in writing to the education policy and finance committees of the legislature by February
47.2615, 2012, and include any recommendations for further clarifying Minnesota Statutes,
47.27section 120B.361.
47.28EFFECTIVE DATE.This section is effective the day following final enactment.

47.29    Sec. 22. REPORT; RECOMMENDATIONS FOR INCREASING SCHOOLS'
47.30FINANCIAL FLEXIBILITY.
47.31The commissioner of education must submit to the education policy and finance
47.32committees of the legislature by February 1, 2013, written recommendations that identify
47.33fiscal mandates the legislature might waive to give greater financial flexibility to schools
48.1that received a letter grade of "A," improved at least one letter grade in the preceding
48.2school year, or improved two or more letter grades in the two preceding school years
48.3under Minnesota Statutes, section 120B.361, subdivision 1.
48.4EFFECTIVE DATE.This section is effective the day following final enactment.

48.5    Sec. 23. ASSESSMENT ADVISORY COMMITTEE; RECOMMENDATIONS.
48.6(a) The Assessment Advisory Committee under Minnesota Statutes, section
48.7120B.365, must develop recommendations for alternative methods by which students meet
48.8the reading and writing exam requirement under Minnesota Statutes, section 120B.30,
48.9subdivision 1b, paragraph (b), clause (10). The Assessment Advisory Committee, among
48.10other alternative methods and if consistent with federal educational accountability law,
48.11must consider allowing students to:
48.12(1) achieve a college-credit score on a college-level examination program (CLEP)
48.13for reading and writing; or
48.14(2) achieve a college readiness score in the relevant subject area on the American
48.15college test (ACT) or scholastic aptitude test (SAT) exam.
48.16(b) The Assessment Advisory Committee must develop recommendations for
48.17alternative methods by which students satisfy the high school algebra and biology
48.18requirements under Minnesota Statutes, section 120B.30, subdivision 1b, paragraph (d),
48.19clause (8), and demonstrate their college and career readiness. The Assessment Advisory
48.20Committee, among other alternative methods and if consistent with federal educational
48.21accountability law, must consider allowing students to:
48.22(1) achieve the mathematics or science college readiness score on the American
48.23college test (ACT) or scholastic aptitude test (SAT) exam;
48.24(2) achieve a college-credit score on a college-level examination program (CLEP)
48.25for algebra or biology; or
48.26(3) achieve a score on an equivalent advanced placement or international
48.27baccalaureate exam that would earn credit at a four-year college or university.
48.28(c) The Assessment Advisory Committee, for purposes of fully implementing the
48.29high school assessment system under Minnesota Statutes, section 120B.30, subdivision
48.301b, also must develop recommendations for the administrative structure, criteria,
48.31and processes for implementing the state-level student appeals process. Finally, the
48.32Assessment Advisory Committee must develop recommendations for calculating the
48.33alignment index, including how questions about validity and reliability are resolved,
48.34defining "misaligned" and "highly misaligned," and when and under what specific
48.35circumstances misalignments occur.
49.1(d) By February 15, 2013, the Assessment Advisory Committee must submit its
49.2recommendations under this section to the education commissioner and the education
49.3policy and finance committees of the legislature.
49.4EFFECTIVE DATE.This section is effective the day following final enactment.

49.5    Sec. 24. ALTERNATIVE COMPENSATION REAPPLICATION.
49.6Any school district, intermediate school district, or charter school that has an
49.7approved alternative teacher compensation plan under Minnesota Statutes, section
49.8122A.414, must submit a new application to the commissioner of education by June
49.91, 2013, that complies with the changes to Minnesota Statutes, section 122A.414,
49.10subdivision 2, paragraph (b).
49.11EFFECTIVE DATE.This section is effective the day following final enactment.

49.12    Sec. 25. APPROPRIATIONS.
49.13    Subdivision 1. Department of Education. The sums indicated in this section are
49.14appropriated from the general fund to the Department of Education for the fiscal years
49.15designated.
49.16    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
49.17Statutes, section 124D.11, subdivision 4:

49.18		$	48,180,000	.....	2012
49.19		$	53,772,000	.....	2013

49.20The 2012 appropriation includes $13,336,000 for 2011 and $34,844,000 for 2012.
49.21The 2013 appropriation includes $14,933,000 for 2012 and $38,839,000 for 2013.
49.22    Subd. 3. Charter school startup cost aid. For charter school startup cost aid under
49.23Minnesota Statutes, section 124D.11, subdivision 8:

49.24		$	600,000	.....	2012
49.25		$	1,278,000	.....	2013

49.26The 2012 appropriation includes $119,000 for 2011 and $481,000 for 2012.
49.27The 2013 appropriation includes $205,000 for 2012 and $1,073,000 for 2013.
49.28    Subd. 4. Innovation aid. For innovation aid under Minnesota Statutes, section
49.29124D.86:

49.30		$	53,088,000	.....	2012
49.31		$	36,559,000	.....	2013

50.1The 2012 appropriation includes $27,497,000 for 2011 and $25,592,000 for 2012.
50.2The 2013 appropriation includes $10,967,000 for 2012 and $25,592,000 for 2013.
50.3    Subd. 5. Interdistrict desegregation or integration transportation grants. For
50.4interdistrict desegregation or integration transportation grants under Minnesota Statutes,
50.5section 124D.87:

50.6		$	14,917,000	.....	2012
50.7		$	16,612,000	.....	2013

50.8    Subd. 6. Success for the future. For American Indian success for the future grants
50.9under Minnesota Statutes, section 124D.81:

50.10		$	2,137,000	.....	2012
50.11		$	2,137,000	.....	2013

50.12The 2012 appropriation includes $641,000 for 2011 and $1,496,000 for 2012.
50.13The 2013 appropriation includes $641,000 for 2012 and $1,496,000 for 2013.
50.14    Subd. 7. American Indian teacher preparation grants. For joint grants to assist
50.15American Indian people to become teachers under Minnesota Statutes, section 122A.63:

50.16		$	190,000	.....	2012
50.17		$	190,000	.....	2013

50.18    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
50.19Statutes, section 124D.83:

50.20		$	2,091,000	.....	2012
50.21		$	2,207,000	.....	2013

50.22The 2012 appropriation includes $600,000 for 2011 and $1,491,000 for 2012.
50.23The 2013 appropriation includes $638,000 for 2012 and $1,569,000 for 2013.
50.24    Subd. 9. Early childhood programs at tribal schools. For early childhood family
50.25education programs at tribal contract schools under Minnesota Statutes, section 124D.83,
50.26subdivision 4:

50.27		$	68,000	.....	2012
50.28		$	68,000	.....	2013

50.29    Subd. 10. Statewide testing and reporting system. For the statewide testing and
50.30reporting system under Minnesota Statutes, section 120B.30:

50.31		$	15,150,000	.....	2012
50.32		$	15,150,000	.....	2013

51.1Any balance in the first year does not cancel but is available in the second year.
51.2    Subd. 11. Examination fees; teacher training and support programs. (a) For
51.3students' advanced placement and international baccalaureate examination fees under
51.4Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
51.5for teachers and other interested educators under Minnesota Statutes, section 120B.13,
51.6subdivision 1:

51.7		$	4,500,000	.....	2012
51.8		$	4,500,000	.....	2013

51.9(b) The advanced placement program shall receive 75 percent of the appropriation
51.10each year and the international baccalaureate program shall receive 25 percent of the
51.11appropriation each year. The department, in consultation with representatives of the
51.12advanced placement and international baccalaureate programs selected by the Advanced
51.13Placement Advisory Council and IBMN, respectively, shall determine the amounts of
51.14the expenditures each year for examination fees and training and support programs for
51.15each program.
51.16(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
51.17$500,000 each year is for teachers to attend subject matter summer training programs
51.18and follow-up support workshops approved by the advanced placement or international
51.19baccalaureate programs. The amount of the subsidy for each teacher attending an
51.20advanced placement or international baccalaureate summer training program or workshop
51.21shall be the same. The commissioner shall determine the payment process and the amount
51.22of the subsidy.
51.23(d) The commissioner shall pay all examination fees for all students of low-income
51.24families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
51.25of available appropriations shall also pay examination fees for students sitting for an
51.26advanced placement examination, international baccalaureate examination, or both.
51.27Any balance in the first year does not cancel but is available in the second year.
51.28    Subd. 12. Concurrent enrollment programs. For concurrent enrollment programs
51.29under Minnesota Statutes, section 124D.091:

51.30		$	2,000,000	.....	2012
51.31		$	2,000,000	.....	2013

51.32If the appropriation is insufficient, the commissioner must proportionately reduce
51.33the aid payment to each district.
51.34Any balance in the first year does not cancel but is available in the second year.
52.1    Subd. 13. Collaborative urban educator. For the collaborative urban educator
52.2grant program:

52.3		$	528,000	.....	2012
52.4		$	528,000	.....	2013

52.5Any balance in the first year does not cancel but is available in the second year.
52.6Each institution shall prepare for the legislature, by January 15 of each year, a
52.7detailed report regarding the funds used. The report must include the number of teachers
52.8prepared as well as the diversity for each cohort of teachers produced.
52.9    Subd. 14. Youth works program. For funding youth works programs under
52.10Minnesota Statutes, sections 124D.37 to 124D.45:

52.11		$	900,000	.....	2012
52.12		$	900,000	.....	2013

52.13A grantee organization may provide health and child care coverage to the dependents
52.14of each participant enrolled in a full-time youth works program to the extent such coverage
52.15is not otherwise available.
52.16    Subd. 15. Student organizations. For student organizations:

52.17		$	725,000	.....	2012
52.18		$	725,000	.....	2013

52.19$40,000 each year is for student organizations serving health occupations.
52.20$38,000 each year is for student organizations serving service occupations.
52.21$88,000 each year is for student organizations serving trade and industry occupations.
52.22$84,000 each year is for student organizations serving business occupations.
52.23$131,000 each year is for student organizations serving agriculture occupations.
52.24$125,000 each year is for student organizations serving family and consumer science
52.25occupations.
52.26$95,000 each year is for student organizations serving marketing occupations.
52.27Any balance in the first year does not cancel but is available in the second year.
52.28    Subd. 16. Early childhood literacy programs. For early childhood literacy
52.29programs under Minnesota Statutes, section 119A.50, subdivision 3:

52.30		$	1,375,000	.....	2012
52.31		$	1,375,000	.....	2013

52.32Up to $1,375,000 each year is for leveraging federal and private funding to support
52.33AmeriCorps members serving in the Minnesota Reading Corps program established by
52.34Serve Minnesota, including costs associated with the training and teaching of early literacy
53.1skills to children age three to grade 3 and the evaluation of the impact of the program
53.2under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
53.3    Subd. 17. Education planning and assessment system (EPAS) program. For the
53.4educational planning and assessment system (EPAS) program under Minnesota Statutes,
53.5section 120B.128:

53.6		$	829,000	.....	2012
53.7		$	829,000	.....	2013

53.8    Subd. 18. Principals' Leadership Institute. For principal leadership activities
53.9under Minnesota Statutes, section 122A.74:

53.10		$	150,000	.....	2012
53.11		$	150,000	.....	2013

53.12    Subd. 19. School recognition awards. For payments to school districts for the
53.13school recognition award program under Minnesota Statutes, section 120B.361:

53.14		$	0	.....	2012
53.15		$	3,455,000	.....	2013

53.16The 2013 appropriation includes $0 for 2012 and $3,455,000 for 2013.
53.17    Subd. 20. Enrollment options for students at low-performing schools. For the
53.18enrollment options for students at low-performing schools under Minnesota Statutes,
53.19section 124D.031:

53.20		$	5,616,000	.....	2012
53.21		$	13,131,000	.....	2013

53.22Of this appropriation, $400,000 in 2012 and $800,000 in 2013 are for payments to
53.23school districts for reimbursement for transportation expenses under Minnesota Statutes,
53.24section 124D.031, subdivision 4.

53.25    Sec. 26. REPEALER.
53.26(a) Minnesota Statutes 2010, sections 123B.05; and 179A.18, subdivision 2, are
53.27repealed.
53.28(b) Minnesota Statutes 2010, section 124D.86, subdivisions 1, 1a, 2, 4, 5, and 6;
53.29and Minnesota Rules, parts 3535.0100; 3535.0110; 3535.0120; 3535.0130; 3535.0140;
53.303535.0150; 3535.0160; 3535.0170; and 3535.0180, are repealed.
53.31EFFECTIVE DATE.Paragraph (a) is effective the day following final enactment.
53.32Paragraph (b) is effective July 1, 2011.


54.3    Section 1. Minnesota Statutes 2010, section 125A.07, is amended to read:
54.4125A.07 RULEMAKING.
54.5(a) Consistent with this section, the commissioner shall adopt new rules and
54.6amend existing rules related to children with disabilities only under after receiving
54.7specific legislative authority to do so, consistent with section 127A.05, subdivision 4, and
54.8consistent with the requirements of chapter 14 and paragraph (c). Technical changes and
54.9corrections are exempted from this paragraph.
54.10(b) As provided in this paragraph, the state's regulatory scheme should support
54.11schools by assuring that all state special education rules adopted by the commissioner
54.12result in one or more of the following outcomes:
54.13(1) increased time available to teachers and, where appropriate, to support staff
54.14including school nurses for educating students through direct and indirect instruction;
54.15(2) consistent and uniform access to effective education programs for students with
54.16disabilities throughout the state;
54.17(3) reduced inequalities and conflict, appropriate due process hearing procedures
54.18and reduced court actions related to the delivery of special education instruction and
54.19services for students with disabilities;
54.20(4) clear expectations for service providers and for students with disabilities;
54.21(5) increased accountability for all individuals and agencies that provide instruction
54.22and other services to students with disabilities;
54.23(6) greater focus for the state and local resources dedicated to educating students
54.24with disabilities; and
54.25(7) clearer standards for evaluating the effectiveness of education and support
54.26services for students with disabilities.
54.27(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule
54.28related to children with disabilities if such action is specifically required by federal law.
54.29EFFECTIVE DATE.This section is effective the day following final enactment.

54.30    Sec. 2. Minnesota Statutes 2010, section 125A.21, subdivision 2, is amended to read:
54.31    Subd. 2. Third-party reimbursement. (a) Beginning July 1, 2000, districts
54.32shall seek reimbursement from insurers and similar third parties for the cost of services
54.33provided by the district whenever the services provided by the district are otherwise
54.34covered by the child's health coverage. Districts shall request, but may not require, the
55.1child's family to provide information about the child's health coverage when a child with a
55.2disability begins to receive services from the district of a type that may be reimbursable,
55.3and shall request, but may not require, updated information after that as needed.
55.4(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
55.5under chapter 256L who have no other health coverage, a district shall provide an initial
55.6and annual written notice to the enrolled child's parent or legal representative of its intent
55.7to seek reimbursement from medical assistance or MinnesotaCare for the individual
55.8individualized education plan program health-related services provided by the district.
55.9The initial notice must give the child's parent or legal representative the right to:
55.10(1) request a copy of the child's education records on the health-related services that
55.11the district provided to the child and disclosed to a third-party payer;
55.12(2) withdraw consent for the district to disclose information in a child's education
55.13record at any time without affecting a parent's eligibility for MinnesotaCare or medical
55.14assistance under section 256B.08, subdivision 1, including consent that the parent or
55.15legal representative gave as part of the application process for MinnesotaCare or medical
55.16assistance; and
55.17(3) receive a statement, consistent with clause (2), indicating that a decision to
55.18withdraw consent for the district to disclose information in a child's education record does
55.19not affect a parent's eligibility for MinnesotaCare or medical assistance.
55.20(c) The district shall give the parent or legal representative annual written notice of:
55.21(1) the district's intent to seek reimbursement from medical assistance or
55.22MinnesotaCare for individual education plan health-related services provided by the
55.23district;
55.24(2) the right of the parent or legal representative to request a copy of all records
55.25concerning individual education plan health-related services disclosed by the district to
55.26any third party; and
55.27(3) the right of the parent or legal representative to withdraw consent for disclosure
55.28of a child's records at any time without consequence, including consent that the parent
55.29or legal representative gave as part of the application process for any public assistance
55.30program that may result in a parent's eligibility for MinnesotaCare or medical assistance
55.31under section 256B.08, subdivision 1.
55.32The written notice shall be provided as part of the written notice required by Code of
55.33Federal Regulations, title 34, section 300.504. The district must ensure that the parent of a
55.34child with a disability is given notice, in understandable language, of federal and state
55.35procedural safeguards available to the parent under this paragraph and paragraph (b).
56.1(d) In order to access the private health care coverage of a child who is covered by
56.2private health care coverage in whole or in part, a district must:
56.3(1) obtain annual written informed consent from the parent or legal representative, in
56.4compliance with subdivision 5; and
56.5(2) inform the parent or legal representative that a refusal to permit the district
56.6or state Medicaid agency to access their private health care coverage does not relieve
56.7the district of its responsibility to provide all services necessary to provide free and
56.8appropriate public education at no cost to the parent or legal representative.
56.9(e) If the commissioner of human services obtains federal approval to exempt
56.10covered individual education plan health-related services from the requirement that private
56.11health care coverage refuse payment before medical assistance may be billed, paragraphs
56.12(b), (c), and (d) shall also apply to students with a combination of private health care
56.13coverage and health care coverage through medical assistance or MinnesotaCare.
56.14(f) In the event that Congress or any federal agency or the Minnesota legislature
56.15or any state agency establishes lifetime limits, limits for any health care services,
56.16cost-sharing provisions, or otherwise provides that individual education plan health-related
56.17services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the
56.18amendments to this subdivision adopted in 2002 are repealed on the effective date of any
56.19federal or state law or regulation that imposes the limits. In that event, districts must
56.20obtain informed consent consistent with this subdivision as it existed prior to the 2002
56.21amendments and subdivision 5, before seeking reimbursement for children enrolled in
56.22medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have
56.23no other health care coverage.
56.24EFFECTIVE DATE.This section is effective the day following final enactment.

56.25    Sec. 3. Minnesota Statutes 2010, section 125A.21, subdivision 3, is amended to read:
56.26    Subd. 3. Use of reimbursements. Of the reimbursements received, districts may:
56.27(1) retain an amount sufficient to compensate the district for its administrative costs
56.28of obtaining reimbursements;
56.29(2) regularly obtain from education- and health-related entities training and other
56.30appropriate technical assistance designed to improve the district's ability to determine
56.31which services are reimbursable and to seek timely reimbursement in a cost-effective
56.32manner access third-party payments for individualized education program health-related
56.33services; or
56.34(3) reallocate reimbursements for the benefit of students with special needs
56.35individualized education programs or individual family service plans in the district.
57.1EFFECTIVE DATE.This section is effective the day following final enactment.

57.2    Sec. 4. Minnesota Statutes 2010, section 125A.21, subdivision 5, is amended to read:
57.3    Subd. 5. Informed consent. When obtaining informed consent, consistent with
57.4sections 13.05, subdivision 4a; and, 256B.77, subdivision 2, paragraph (p), and Code of
57.5Federal Regulations, title 34, parts 99 and 300, to bill health plans for covered services, the
57.6school district must notify the legal representative (1) that the cost of the person's private
57.7health insurance premium may increase due to providing the covered service in the school
57.8setting, (2) that the school district may pay certain enrollee health plan costs, including
57.9but not limited to, co-payments, coinsurance, deductibles, premium increases or other
57.10enrollee cost-sharing amounts for health and related services required by an individual
57.11service plan, or individual family service plan, and (3) that the school's billing for each
57.12type of covered service may affect service limits and prior authorization thresholds. The
57.13informed consent may be revoked in writing at any time by the person authorizing the
57.14billing of the health plan.
57.15EFFECTIVE DATE.This section is effective the day following final enactment.

57.16    Sec. 5. Minnesota Statutes 2010, section 125A.21, subdivision 7, is amended to read:
57.17    Subd. 7. District disclosure of information. A school district may disclose
57.18information contained in a student's individual individualized education plan program,
57.19consistent with section 13.32, subdivision 3, paragraph (a), and Code of Federal
57.20Regulations, title 34, parts 99 and 300; including records of the student's diagnosis and
57.21treatment, to a health plan company only with the signed and dated consent of the student's
57.22parent, or other legally authorized individual, including consent that the parent or legal
57.23representative gave as part of the application process for MinnesotaCare or medical
57.24assistance under section 256B.08, subdivision 1. The school district shall disclose only
57.25that information necessary for the health plan company to decide matters of coverage and
57.26payment. A health plan company may use the information only for making decisions
57.27regarding coverage and payment, and for any other use permitted by law.
57.28EFFECTIVE DATE.This section is effective the day following final enactment.

57.29    Sec. 6. Minnesota Statutes 2010, section 125A.515, is amended by adding a
57.30subdivision to read:
57.31    Subd. 3a. Students without a disability from other states. A school district is not
57.32required to provide education services under this section to a student who:
58.1(1) is not a resident of Minnesota;
58.2(2) does not have an individualized education program; and
58.3(3) does not have a tuition arrangement or agreement to pay the cost of education
58.4from the placing authority.
58.5EFFECTIVE DATE.This section is effective July 1, 2011, for fiscal year 2012
58.6and later.

58.7    Sec. 7. Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to read:
58.8    Subdivision 1. Two kinds Admissions. There are two kinds of Admission to the
58.9Minnesota State Academies is described in this section.
58.10(a) A pupil who is deaf, hard of hearing, or blind-deaf deafblind, may be admitted to
58.11the Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf deafblind,
58.12or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be
58.13admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65.
58.14(1) It must be decided by the individual education planning team that education in
58.15regular or special education classes in the pupil's district of residence cannot be achieved
58.16satisfactorily because of the nature and severity of the deafness or blindness or visual
58.17impairment respectively.
58.18(2) It must be decided by the individual education planning team that the academy
58.19provides the most appropriate placement within the least restrictive alternative for the
58.20pupil.
58.21(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to
58.22get socialization skills or on a short-term basis for skills development.
58.23(c) A parent of a child who resides in Minnesota and who meets the disability criteria
58.24for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may
58.25apply to place the child in the Minnesota State Academies. Academy staff must review
58.26the application to determine whether the Minnesota State Academies is an appropriate
58.27placement for the child. If academy staff determine that the Minnesota State Academies is
58.28an appropriate placement, the staff must invite the individualized education program team
58.29at the child's resident school district to participate in a meeting to arrange a trial placement
58.30of between 60 and 90 calendar days at the Minnesota State Academies. If the child's
58.31parent consents to the trial placement, the Minnesota State Academies is the responsible
58.32serving school district and incurs all due process obligations under law, and the child's
58.33resident school district is responsible for any transportation included in the child's
58.34individualized education program during the trial placement. Before the trial placement
58.35ends, academy staff must convene an individualized education program team meeting to
59.1determine whether to continue the child's placement at the Minnesota State Academies
59.2or that another placement is appropriate. If the academy members of the individualized
59.3education program team and the parent are unable to agree on the child's placement, the
59.4child's placement reverts to the placement in the child's individualized education program
59.5that immediately preceded the trial placement. If the parent and individualized education
59.6program team agree to continue the placement beyond the trial period, the transportation
59.7and due process responsibilities are the same as those described for the trial placement
59.8under this paragraph.
59.9EFFECTIVE DATE.This section is effective July 1, 2011.

59.10    Sec. 8. Minnesota Statutes 2010, section 125A.76, subdivision 1, is amended to read:
59.11    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
59.12subdivision apply.
59.13    (a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
59.14For the purposes of computing basic revenue pursuant to this section, each child with a
59.15disability shall be counted as prescribed in section 126C.05, subdivision 1.
59.16    (b) "Essential personnel" means teachers, cultural liaisons, related services, and
59.17support services staff providing services to students. Essential personnel may also include
59.18special education paraprofessionals or clericals providing support to teachers and students
59.19by preparing paperwork and making arrangements related to special education compliance
59.20requirements, including parent meetings and individual education plans. Essential
59.21personnel does not include administrators and supervisors.
59.22    (c) "Average daily membership" has the meaning given it in section 126C.05.
59.23    (d) "Program growth factor" means 1.046 1.0 for fiscal year 2012 and later.
59.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
59.25and later.

59.26    Sec. 9. Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:
59.27    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
59.28subdivision apply.
59.29    (a) "Unreimbursed special education cost" means the sum of the following:
59.30    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
59.31transportation services eligible for revenue under section 125A.76; plus
59.32    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
59.33125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
60.1    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and
60.2transportation services under section 125A.76; minus
60.3    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
60.4eligible for revenue under section 125A.76, subdivision 2.
60.5    (b) "General revenue" means the sum of the general education revenue according to
60.6section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
60.7the total qualifying referendum revenue specified in paragraph (e) minus transportation
60.8sparsity revenue minus total operating capital revenue.
60.9    (c) "Average daily membership" has the meaning given it in section 126C.05.
60.10    (d) "Program growth factor" means 1.02 1.0 for fiscal year 2012 and later.
60.11    (e) "Total qualifying referendum revenue" means two-thirds of the district's total
60.12referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
60.13(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
60.14year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.
60.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
60.16and later.

60.17    Sec. 10. Laws 2009, chapter 79, article 5, section 60, as amended by Laws 2009,
60.18chapter 173, article 1, section 37, is amended to read:
60.19    Sec. 60. Minnesota Statutes 2008, section 256L.05, is amended by adding a
60.20subdivision to read:
60.21    Subd. 1c. Open enrollment and streamlined application and enrollment
60.22process. (a) The commissioner and local agencies working in partnership must develop a
60.23streamlined and efficient application and enrollment process for medical assistance and
60.24MinnesotaCare enrollees that meets the criteria specified in this subdivision.
60.25(b) The commissioners of human services and education shall provide
60.26recommendations to the legislature by January 15, 2010, on the creation of an open
60.27enrollment process for medical assistance and MinnesotaCare that is coordinated with
60.28the public education system. The recommendations must:
60.29(1) be developed in consultation with medical assistance and MinnesotaCare
60.30enrollees and representatives from organizations that advocate on behalf of children and
60.31families, low-income persons and minority populations, counties, school administrators
60.32and nurses, health plans, and health care providers;
60.33(2) be based on enrollment and renewal procedures best practices;
60.34(3) simplify the enrollment and renewal processes wherever possible; and
60.35(4) establish a process:
61.1(i) to disseminate information on medical assistance and MinnesotaCare to all
61.2children in the public education system, including prekindergarten programs; and
61.3(ii) for the commissioner of human services to enroll children and other household
61.4members who are eligible.
61.5The commissioner of human services in coordination with the commissioner of
61.6education shall implement an open enrollment process by August 1, 2010, to be effective
61.7beginning with the 2010-2011 school year.
61.8(c) The commissioner and local agencies shall develop an online application process
61.9for medical assistance and MinnesotaCare.
61.10(d) The commissioner shall develop an application for children that is easily
61.11understandable and does not exceed four pages in length.
61.12(e) The commissioner of human services shall present to the legislature, by January
61.1315, 2010, an implementation plan for the open enrollment period and online application
61.14process.
61.15(f) The commissioner of human services, after consulting with the commissioner of
61.16education, shall include on new and revised Minnesota health care program application
61.17forms, including electronic application forms, an authorization for consent that, if signed
61.18by the parent or legal representative of a child receiving health-related services through
61.19an individualized education program or an individual family services plan, would allow
61.20the school district or other provider of covered services to release information from the
61.21child's education record to the commissioner to permit the provider to be reimbursed by
61.22MinnesotaCare or medical assistance. The authorization for consent under this paragraph
61.23must conform to federal data practices law governing access to nonpublic data in a child's
61.24education record and indicate that the parent or legal representative of the child may
61.25withdraw his or her consent at any time without any consequence to the parent or child.
61.26The commissioner must include this authorization for consent on an application form at
61.27the time the commissioner reviews, revises, or replaces the form.
61.28EFFECTIVE DATE.This section is effective July 1, 2011.

61.29    Sec. 11. THIRD-PARTY BILLING.
61.30(a) To allow cost-effective billing of medical assistance for covered services that are
61.31not reimbursed by legally liable third party private payers, the commissioner of human
61.32services must:
61.33(1) summarize and document school district efforts to secure reimbursement from
61.34legally liable third parties; and
62.1(2) request initial and continuing waivers of the requirement to seek payment from a
62.2child's private health plan, consistent with Code of Federal Regulations, title 42, section
62.3433.139, chapter IV, part 433, based on the determination by the Centers for Medicare and
62.4Medicaid Services that this requirement is not cost-effective. The waiver request must
62.5seek permission for the commissioner to allow school districts to bill Medicaid alone,
62.6without first billing private payers, when a child has both public and private coverage.
62.7(b) If the Centers for Medicare and Medicaid Services does not grant ongoing
62.8permission to implement paragraph (a), clause (2), the commissioner of human services
62.9shall seek permission to implement clause (2) on a time-limited basis, with the opportunity
62.10to renew this time-limited permission as needed.
62.11EFFECTIVE DATE.This section is effective the day following final enactment.

62.12    Sec. 12. APPROPRIATIONS.
62.13    Subdivision 1. Department of Education. The sums indicated in this section are
62.14appropriated from the general fund to the Department of Education for the fiscal years
62.15designated.
62.16    Subd. 2. Special education; regular. For special education aid under Minnesota
62.17Statutes, section 125A.75:

62.18		$	789,955,000	.....	2012
62.19		$	796,681,000	.....	2013

62.20The 2012 appropriation includes $235,975,000 for 2011 and $553,980,000 for 2012.
62.21The 2013 appropriation includes $237,419,000 for 2012 and $559,262,000 for 2013.
62.22    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
62.23section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
62.24within the district boundaries for whom no district of residence can be determined:

62.25		$	1,648,000	.....	2012
62.26		$	1,745,000	.....	2013

62.27If the appropriation for either year is insufficient, the appropriation for the other
62.28year is available.
62.29    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
62.30services under Minnesota Statutes, section 125A.75, subdivision 1:

62.31		$	357,000	.....	2012
62.32		$	359,000	.....	2013

62.33The 2012 appropriation includes $107,000 for 2011 and $250,000 for 2012.
63.1The 2013 appropriation includes $107,000 for 2012 and $252,000 for 2013.
63.2    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
63.3Statutes, section 125A.79, subdivision 7:

63.4		$	111,243,000	.....	2012
63.5		$	112,122,000	.....	2013

63.6The 2012 appropriation includes $53,449,000 for 2011 and $57,794,000 for 2012.
63.7The 2013 appropriation includes $53,777,000 for 2012 and $58,345,000 for 2013.
63.8    Subd. 6. Court-placed special education revenue. For reimbursing serving
63.9school districts for unreimbursed eligible expenditures attributable to children placed in
63.10the serving school district by court action under Minnesota Statutes, section 125A.79,
63.11subdivision 4:

63.12		$	80,000	.....	2012
63.13		$	82,000	.....	2013

63.14    Subd. 7. Special education out-of-state tuition. For special education out-of-state
63.15tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

63.16		$	250,000	.....	2012
63.17		$	250,000	.....	2013

63.18    Sec. 13. REVISOR'S INSTRUCTION.
63.19The revisor of statutes shall substitute the term "individualized education program"
63.20or similar terms for "individual education plan" or similar terms wherever they appear
63.21in Minnesota Statutes and Minnesota Rules referring to the requirements relating to
63.22the federal Individuals with Disabilities Education Act. The revisor shall also make
63.23grammatical changes related to the changes in terms.


63.26    Section 1. Minnesota Statutes 2010, section 123B.54, is amended to read:
63.27123B.54 DEBT SERVICE APPROPRIATION.
63.28    (a) $17,161,000 $12,425,000 in fiscal year 2012 and $19,175,000, $20,459,000 in
63.29fiscal year 2013, $28,558,000 in fiscal year 2014, and $24,095,000 in fiscal year 2015 and
63.30later are appropriated from the general fund to the commissioner of education for payment
63.31of debt service equalization aid under section 123B.53.
64.1    (b) The appropriations in paragraph (a) must be reduced by the amount of any
64.2money specifically appropriated for the same purpose in any year from any state fund.

64.3    Sec. 2. Minnesota Statutes 2010, section 123B.59, subdivision 5, is amended to read:
64.4    Subd. 5. Levy authorized. A district may levy for costs related to an approved
64.5facility plan as follows:
64.6(a) if the district has indicated to the commissioner that bonds will be issued, the
64.7district may levy for the principal and interest payments on outstanding bonds issued
64.8according to subdivision 3 after reduction for any alternative facilities aid receivable
64.9under subdivision 6; or
64.10(b) if the district has indicated to the commissioner that the plan will be funded
64.11through levy, the district may levy according to the schedule approved in the plan after
64.12reduction for any alternative facilities aid receivable under subdivision 6.
64.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
64.14and later.

64.15    Sec. 3. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
64.16    Subdivision 1. To lease building or land. (a) When an independent or a special
64.17school district or a group of independent or special school districts finds it economically
64.18advantageous to rent or lease a building or land for any instructional purposes or for
64.19school storage or furniture repair, and it determines that the operating capital revenue
64.20authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
64.21apply to the commissioner for permission to make an additional capital expenditure levy
64.22for this purpose. An application for permission to levy under this subdivision must contain
64.23financial justification for the proposed levy, the terms and conditions of the proposed
64.24lease, and a description of the space to be leased and its proposed use.
64.25    (b) The criteria for approval of applications to levy under this subdivision must
64.26include: the reasonableness of the price, the appropriateness of the space to the proposed
64.27activity, the feasibility of transporting pupils to the leased building or land, conformity
64.28of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
64.29the proposed lease to the space needs and the financial condition of the district. The
64.30commissioner must not authorize a levy under this subdivision in an amount greater than
64.31the cost to the district of renting or leasing a building or land for approved purposes.
64.32The proceeds of this levy must not be used for custodial or other maintenance services.
64.33A district may not levy under this subdivision for the purpose of leasing or renting a
64.34district-owned building or site to itself.
65.1    (c) For agreements finalized after July 1, 1997, a district may not levy under this
65.2subdivision for the purpose of leasing: (1) a newly constructed building used primarily
65.3for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
65.4building addition or additions used primarily for regular kindergarten, elementary, or
65.5secondary instruction that contains more than 20 percent of the square footage of the
65.6previously existing building.
65.7    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
65.8purpose of leasing or renting a district-owned building or site to itself only if the amount
65.9is needed by the district to make payments required by a lease purchase agreement,
65.10installment purchase agreement, or other deferred payments agreement authorized by law,
65.11and the levy meets the requirements of paragraph (c). A levy authorized for a district by
65.12the commissioner under this paragraph may be in the amount needed by the district to
65.13make payments required by a lease purchase agreement, installment purchase agreement,
65.14or other deferred payments agreement authorized by law, provided that any agreement
65.15include a provision giving the school districts the right to terminate the agreement
65.16annually without penalty.
65.17    (e) The total levy under this subdivision for a district for any year must not exceed
65.18$150 times the resident pupil units for the fiscal year to which the levy is attributable.
65.19    (f) For agreements for which a review and comment have been submitted to the
65.20Department of Education after April 1, 1998, the term "instructional purpose" as used in
65.21this subdivision excludes expenditures on stadiums.
65.22    (g) The commissioner of education may authorize a school district to exceed the
65.23limit in paragraph (e) if the school district petitions the commissioner for approval. The
65.24commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
65.25for not more than five years if the district meets the following criteria:
65.26    (1) the school district has been experiencing pupil enrollment growth in the
65.27preceding five years;
65.28    (2) the purpose of the increased levy is in the long-term public interest;
65.29    (3) the purpose of the increased levy promotes colocation of government services;
65.30and
65.31    (4) the purpose of the increased levy is in the long-term interest of the district by
65.32avoiding over construction of school facilities.
65.33    (h) A school district that is a member of an intermediate school district may include
65.34in its authority under this section the costs associated with leases of administrative and
65.35classroom space for intermediate school district programs. This authority must not exceed
66.1$43 times the adjusted marginal cost pupil units of the member districts. This authority is
66.2in addition to any other authority authorized under this section.
66.3    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
66.42012 to 2022, a district that is a member of the "Technology and Information Education
66.5Systems" data processing joint board, that finds it economically advantageous to enter
66.6into a lease purchase agreement for to finance improvements to a building for a group of
66.7school districts or special school districts for staff development purposes, may levy for
66.8its portion of lease costs attributed to the district within the total levy limit in paragraph
66.9(e). The total levy authority under this paragraph shall not exceed $632,000 each year.
66.10EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.

66.11    Sec. 4. EARLY REPAYMENT.
66.12A school district that received a maximum effort capital loan prior to January 1,
66.131997, may repay the full outstanding original principal on its capital loan prior to July 1,
66.142012, and the liability of the district on the loan is satisfied and discharged and interest
66.15on the loan ceases.
66.16EFFECTIVE DATE.This section is effective the day following final enactment.

66.17    Sec. 5. APPROPRIATIONS.
66.18    Subdivision 1. Department of Education. The sums indicated in this section are
66.19appropriated from the general fund to the Department of Education for the fiscal years
66.20designated.
66.21    Subd. 2. Health and safety revenue. For health and safety aid according to
66.22Minnesota Statutes, section 123B.57, subdivision 5:

66.23		$	123,000	.....	2012
66.24		$	113,000	.....	2013

66.25The 2012 appropriation includes $39,000 for 2011 and $84,000 for 2012.
66.26The 2013 appropriation includes $36,000 for 2012 and $77,000 for 2013.
66.27    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
66.28Statutes, section 123B.53, subdivision 6:

66.29		$	12,425,000	.....	2012
66.30		$	20,459,000	.....	2013

66.31The 2012 appropriation includes $2,604,000 for 2011 and $9,821,000 for 2012.
66.32The 2013 appropriation includes $4,208,000 for 2012 and $16,251,000 for 2013.
67.1    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
67.2according to Minnesota Statutes, section 123B.59, subdivision 1:

67.3		$	19,287,000	.....	2012
67.4		$	5,786,000	.....	2013

67.5The 2012 appropriation includes $5,786,000 for 2011 and $13,501,000 for 2012.
67.6The 2013 appropriation includes $5,786,000 for 2012 and $0 for 2013.
67.7    Subd. 5. Equity in telecommunications access. For equity in telecommunications
67.8access:

67.9		$	3,750,000	.....	2012
67.10		$	3,750,000	.....	2013

67.11If the appropriation amount is insufficient, the commissioner shall reduce the
67.12reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
67.13revenue for fiscal years 2012 and 2013 shall be prorated.
67.14Any balance in the first year does not cancel but is available in the second year.
67.15    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
67.16Minnesota Statutes, section 123B.591, subdivision 4:

67.17		$	2,494,000	.....	2012
67.18		$	3,035,000	.....	2013

67.19The 2012 appropriation includes $676,000 for 2011 and $1,818,000 for 2012.
67.20The 2013 appropriation includes $778,000 for 2012 and $2,257,000 for 2013.

67.21    Sec. 6. REPEALER.
67.22Minnesota Statutes 2010, section 123B.59, subdivisions 6 and 7, are repealed.
67.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
67.24and later.


67.27    Section 1. Minnesota Statutes 2010, section 16A.152, subdivision 2, is amended to
67.28read:
67.29    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
67.30fund revenues and expenditures, the commissioner of management and budget determines
67.31that there will be a positive unrestricted budgetary general fund balance at the close of
68.1the biennium, the commissioner of management and budget must allocate money to the
68.2following accounts and purposes in priority order:
68.3    (1) the cash flow account established in subdivision 1 until that account reaches
68.4$350,000,000;
68.5    (2) the budget reserve account established in subdivision 1a until that account
68.6reaches $653,000,000;
68.7    (3) the amount necessary to increase the aid payment schedule for school district
68.8aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
68.9nearest tenth of a percent without exceeding the amount available and with any remaining
68.10funds deposited in the budget reserve;
68.11    (4) the amount necessary to restore all or a portion of the net aid reductions under
68.12section 127A.441 and to reduce the property tax revenue recognition shift under section
68.13123B.75, subdivision 5 , paragraph (a), and Laws 2003, First Special Session chapter 9,
68.14article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
68.1520, by the same amount;
68.16(5) to the state airports fund, the amount necessary to restore the amount transferred
68.17from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
68.18subdivision 5; and
68.19(6) to the fire safety account in the special revenue fund, the amount necessary to
68.20restore transfers from the account to the general fund made in Laws 2010.
68.21    (b) The amounts necessary to meet the requirements of this section are appropriated
68.22from the general fund within two weeks after the forecast is released or, in the case of
68.23transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
68.24schedules otherwise established in statute.
68.25    (c) The commissioner of management and budget shall certify the total dollar
68.26amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
68.27education. The commissioner of education shall increase the aid payment percentage and
68.28reduce the property tax shift percentage by these amounts and apply those reductions to
68.29the current fiscal year and thereafter.
68.30EFFECTIVE DATE.This section is effective the day following final enactment.

68.31    Sec. 2. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
68.32    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
68.33year, the school district must recognize as revenue, in the fund for which the levy was
68.34made, the lesser of:
69.1(1) the sum of May, June, and July school district tax settlement revenue received in
69.2that calendar year, plus general education aid according to section 126C.13, subdivision
69.34 , received in July and August of that calendar year; or
69.4(2) the sum of:
69.5(i) 31 percent of the referendum levy certified according to section 126C.17, in
69.6calendar year 2000; and
69.7(ii) the entire amount of the levy certified in the prior calendar year according to
69.8section 124D.86, subdivision 4, for school districts receiving revenue under sections
69.9124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
69.10(a), and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
69.11subdivision 6 ; plus
69.12(iii) zero percent of the amount of the levy certified in the prior calendar year for the
69.13school district's general and community service funds, plus or minus auditor's adjustments,
69.14not including the levy portions that are assumed by the state, that remains after subtracting
69.15the referendum levy certified according to section 126C.17 and the amount recognized
69.16according to item (ii).
69.17(b) For fiscal year 2011 and later years, in June of each year, the school district must
69.18recognize as revenue, in the fund for which the levy was made, the lesser of:
69.19(1) the sum of May, June, and July school district tax settlement revenue received in
69.20that calendar year, plus general education aid according to section 126C.13, subdivision
69.214, received in July and August of that calendar year; or
69.22(2) the sum of:
69.23(i) the greater of 48.6 percent of the referendum levy certified according to section
69.24126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
69.25according to section 126C.17 in calendar year 2000; plus
69.26(ii) the entire amount of the levy certified in the prior calendar year according to
69.27section 124D.86, subdivision 4, for school districts receiving revenue under sections
69.28124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
69.29(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
69.30subdivision 6; plus
69.31(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
69.32school district's general and community service funds, plus or minus auditor's adjustments,
69.33not including the levy portions that are assumed by the state, that remains after subtracting
69.34the referendum levy certified according to section 126C.17 and the amount recognized
69.35according to item (ii).
69.36EFFECTIVE DATE.This section is effective for fiscal year 2011 and later.

70.1    Sec. 3. Minnesota Statutes 2010, section 127A.441, is amended to read:
70.2127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
70.3    (a) Each year, the state aids payable to any school district for that fiscal year that are
70.4recognized as revenue in the school district's general and community service funds shall
70.5be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
70.6prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
70.7the amount the district recognized as revenue for the current fiscal year pursuant to section
70.8123B.75, subdivision 5 , paragraph (a) or (b). For purposes of making the aid adjustments
70.9under this section, the amount the district recognizes as revenue for either the prior fiscal
70.10year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
70.11shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
70.12districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
70.13126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2;
70.14126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall
70.15not be adjusted pursuant to this section.
70.16(b) The commissioner shall schedule the timing of the adjustments under paragraph
70.17(a) as close to the end of the fiscal year as possible.
70.18The school district shall be notified of the amount of the adjustment made to each
70.19payment pursuant to this section.
70.20EFFECTIVE DATE.This section is effective for fiscal year 2011 and later.

70.21    Sec. 4. Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:
70.22    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
70.23treasurers pursuant to section 276.10, apportionments from the school endowment fund
70.24pursuant to section 127A.33, apportionments by the county auditor pursuant to section
70.25127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
70.26pursuant to chapter 298.
70.27(b) "Cumulative amount guaranteed" means the product of
70.28(1) the cumulative disbursement percentage shown in subdivision 3; times
70.29(2) the sum of
70.30(i) the current year aid payment percentage of the estimated aid and credit
70.31entitlements paid according to subdivision 13; plus
70.32(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
70.33(iii) the other district receipts.
71.1(c) "Payment date" means the date on which state payments to districts are made
71.2by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
71.3or a weekday which is a legal holiday, the payment shall be made on the immediately
71.4preceding business day. The commissioner may make payments on dates other than
71.5those listed in subdivision 3, but only for portions of payments from any preceding
71.6payment dates which could not be processed by the electronic funds transfer method due
71.7to documented extenuating circumstances.
71.8(d) The current year aid payment percentage equals 73 in fiscal year 2010, 70 in
71.9fiscal year years 2011, 2012, and 2013, and 90 in fiscal years 2012 year 2014 and later.
71.10EFFECTIVE DATE.This section is effective the day following final enactment.

71.11    Sec. 5. LEVY AID RECOGNITION TIMING.
71.12Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
71.13commissioner of education shall schedule the portion of the aid adjustment for fiscal year
71.142011 attributable to the exclusion of levy portions assumed by the state from the levy
71.15recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
71.16with the final payment for fiscal year 2011 made on October 30, 2011.
71.17EFFECTIVE DATE.This section is effective the day following final enactment.

71.18    Sec. 6. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 ONLY.
71.19(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
71.20years 2012 and 2013 only, the commissioner must approve a request for a fund transfer
71.21if the transfer does not increase state aid obligations to the district or result in additional
71.22property tax authority for the district. This section does not permit transfers from the
71.23community service fund or the food service fund.
71.24(b) A school board may approve a fund transfer under paragraph (a) only after
71.25adopting a resolution stating the fund transfer will not diminish instructional opportunities
71.26for students.
71.27EFFECTIVE DATE.This section is effective the day following final enactment.

71.28    Sec. 7. APPROPRIATIONS.
71.29    Subdivision 1. Department of Education. The sums indicated in this section are
71.30appropriated from the general fund to the Department of Education for the fiscal years
71.31designated.
72.1    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
72.2section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

72.3		$	12,626,000	.....	2012
72.4		$	12,878,000	.....	2013

72.5    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
72.6Statutes, section 124D.1158:

72.7		$	4,759,000	.....	2012
72.8		$	4,875,000	.....	2013

72.9    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
72.10section 124D.118:

72.11		$	1,084,000	.....	2012
72.12		$	1,105,000	.....	2013

72.13    Subd. 5. Summer food service replacement aid. For summer food service
72.14replacement aid under Minnesota Statutes, section 124D.119:

72.15		$	150,000	.....	2012
72.16		$	150,000	.....	2013

72.17    Sec. 8. REPEALER.
72.18Minnesota Statutes 2010, section 127A.46, is repealed.
72.19EFFECTIVE DATE.This section is effective the day following final enactment.


72.22    Section 1. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
72.23    Subdivision 1. Department of Education. The sums indicated in this section are
72.24appropriated from the general fund to the Department of Education for the fiscal years
72.25designated.
72.26    Subd. 2. Basic system support. For basic system support grants under Minnesota
72.27Statutes, section 134.355:

72.28		$	13,570,000	.....	2012
72.29		$	13,570,000	.....	2013

72.30The 2012 appropriation includes $4,071,000 for 2011 and $9,499,000 for 2012.
72.31The 2013 appropriation includes $4,071,000 for 2012 and $9,499,000 for 2013.
73.1    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
73.2Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

73.3		$	1,300,000	.....	2012
73.4		$	1,300,000	.....	2013

73.5The 2012 appropriation includes $390,000 for 2011 and $910,000 for 2012.
73.6The 2013 appropriation includes $390,000 for 2012 and $910,000 for 2013.
73.7    Subd. 4. Electronic library for Minnesota. For statewide licenses to online
73.8databases selected in cooperation with the Minnesota Office of Higher Education for
73.9school media centers, public libraries, state government agency libraries, and public
73.10or private college or university libraries:

73.11		$	900,000	.....	2012
73.12		$	900,000	.....	2013

73.13Any balance in the first year does not cancel but is available in the second year.
73.14    Subd. 5. Regional library telecommunications aid. For regional library
73.15telecommunications aid under Minnesota Statutes, section 134.355:

73.16		$	2,300,000	.....	2012
73.17		$	2,300,000	.....	2013

73.18The 2012 appropriation includes $690,000 for 2011 and $1,610,000 for 2012.
73.19The 2013 appropriation includes $690,000 for 2012 and $1,610,000 for 2013.


73.22    Section 1. [119C.01] DEFINITIONS.
73.23    Subdivision 1. Definitions. The terms defined in this section apply to this chapter.
73.24    Subd. 2. Commissioner. "Commissioner" means the commissioner of education.
73.25    Subd. 3. Eligible program. "Eligible program" means a Head Start program under
73.26section 119A.50, school readiness program under section 124D.15, licensed center-based
73.27child care program under chapter 245A, or licensed family child care program under
73.28chapter 245A.
73.29    Subd. 4. Income. "Income" has the meaning given in section 119B.011, subdivision
73.3015.
73.31    Subd. 5. Parent Aware. "Parent Aware" means the voluntary evidence-based quality
73.32rating and improvement system for early childhood education under section 119C.02.
73.33    Subd. 6. Parent Aware Plus regions. "Parent Aware Plus regions" means Parent
73.34Aware regions as designated by the commissioner under section 119C.03, subdivision 5.
74.1    Subd. 7. Parent Aware region. "Parent Aware region" means a geographic area
74.2approved by the commissioner under section 119C.03.
74.3    Subd. 8. Rated program. "Rated program" means an eligible program in a Parent
74.4Aware region that receives one, two, three, or four stars.
74.5EFFECTIVE DATE.This section is effective the day following final enactment.

74.6    Sec. 2. [119C.02] PARENT AWARE.
74.7    Subdivision 1. Department of Education; request for proposal. The Department
74.8of Education must develop a request for proposal for an organization to: (1) develop the
74.9methods used to verify, assess, and monitor program compliance with the standards,
74.10including review of and action on applications; (2) conduct on-site assessments; (3)
74.11develop and maintain a data quality management system for compiling all data used to
74.12calculate program ratings and related procedures for ensuring data quality and integrity;
74.13and (4) coordinate a system for sharing ratings and related quality information with the
74.14public. The commissioner must consult with the Minnesota Early Learning Foundation
74.15to design the request for proposal. Eligible responders include units of state and local
74.16governments, nonprofit organizations, research organizations, and educational institutions.
74.17The commissioner shall issue a request for proposal by July 30, 2011. The commissioner
74.18shall issue a contract by October 31, 2011. The contract is valid for three years. By
74.19July 30, 2014, and every three years thereafter, the commissioner must consult with the
74.20Minnesota Early Learning Foundation or its designated successor organization to review
74.21and update the request for proposal. The contract must be issued by October 31, 2014, and
74.22every three years thereafter. The Minnesota Early Learning Foundation and its designated
74.23successor organization are consultants to the commissioner on the request for proposal
74.24and are not eligible responders.
74.25    Subd. 2. Criteria; measure. (a) Parent Aware must use quality ratings shown to
74.26be linked to improving children's school readiness outcomes and must evaluate, at a
74.27minimum, how programs perform in the following areas:
74.28(1) family partnerships;
74.29(2) tracking learning;
74.30(3) teacher training and education; and
74.31(4) teaching materials and strategies.
74.32(b) The commissioner must establish and regularly update the standards and
74.33indicators that determine program quality for the quality rating system. In fiscal year
74.342012 and later, the commissioner must use the Minnesota quality rating system tool in
75.1use in fiscal year 2011, the results of the evaluations of that quality rating system, and the
75.2recommendations in the report required under section 124D.142.
75.3(c) Ratings must be indicated using stars. Four stars is the best possible rating. No
75.4stars means the program has not been rated.
75.5    Subd. 3. Rated programs. At least twice each year, beginning June 30, 2012, the
75.6contract entity awarded the contract in subdivision 1 must submit a list of rated programs
75.7to the commissioner. The list of rated programs serves as the commissioner's rating. The
75.8commissioner's decision is final.
75.9    Subd. 4. Evaluation. The commissioner shall contract with an independent private
75.10organization to use private funds to evaluate the Parent Aware quality rating system if
75.11sufficient private funding is available. The evaluation must incorporate rating levels and
75.12outcome-based data reflecting child progress toward school readiness. The evaluation
75.13must also include recommendations on continued monitoring and improvement of the
75.14correlation between rating levels and outcome-based child progress toward school
75.15readiness. The commissioner shall make available to the independent private organization
75.16any data requested by the organization consistent with chapter 13 and at no cost to the
75.17organization.

75.18    Sec. 3. [119C.03] SELECTION PROCESS FOR PARENT AWARE REGIONS.
75.19    Subdivision 1. Designation of Parent Aware regions. For the purposes of this
75.20section, Parent Aware regions are the economic development regions as designated by the
75.21governor under section 462.385.
75.22    Subd. 2. Application process. The commissioner of education, in consultation with
75.23the commissioner of human services, shall develop an application process to select new
75.24Parent Aware regions using the following criteria:
75.25(1) the percentage of preschool-aged children who are from families with income
75.26equal to or less than 47 percent of the state median income;
75.27(2) the region's demonstrated efforts to use existing public and private resources to
75.28improve program quality in alignment with Parent Aware quality standards;
75.29(3) the level of community support, especially support of the school districts, Head
75.30Start programs, counties, and local representatives of child care centers and licensed
75.31family child care homes; and
75.32(4) the demonstration of quality improvement support from local nonprofits and
75.33foundations.
75.34    Subd. 3. Application preparation. A resource and referral organization under
75.35section 119B.19, or other entities designated by the commissioner of education, must
76.1prepare and submit the application for their region for approval under subdivision 4 to
76.2become a Parent Aware region in coordination with local partners.
76.3    Subd. 4. Region approval. The commissioner shall develop an application process
76.4by December 1, 2011. A region may apply beginning February 1, 2012, to become a
76.5Parent Aware region. Economic development regions 9, 10, and 11 are automatically
76.6approved as Parent Aware regions beginning in fiscal year 2012. The commissioner shall
76.7approve the first Parent Aware region by June 30, 2012, and shall approve all regions as
76.8Parent Aware regions by June 30, 2015.
76.9    Subd. 5. Parent Aware Plus regions; commissioner approval. The commissioner
76.10of education must designate a Parent Aware region as a Parent Aware Plus region when
76.11there is a sufficient number of programs rated for each program type. The commissioner
76.12must also consider, at a minimum, the following criteria when designating Parent Aware
76.13Plus regions: (1) the distribution of rated programs by eligible program type within a
76.14region; (2) the amount of funding available for scholarships in the region; and (3) the
76.15distribution of the population of low-income preschool-aged children in the region. The
76.16commissioner must also designate Hennepin County, the city of St. Paul, Blue Earth
76.17County, and Nicollet County as Parent Aware Plus regions beginning in fiscal year 2012
76.18and allow those regions to continue using the existing model of the Parent Aware quality
76.19rating system in fiscal year 2012.

76.20    Sec. 4. [119C.04] EARLY CHILDHOOD EDUCATION SCHOLARSHIPS.
76.21    Subdivision 1. Early childhood education scholarship locations. In fiscal year
76.222012 and later, the commissioner shall make scholarships available in the Parent Aware
76.23Plus regions. In fiscal year 2013 and later, the commissioner shall establish additional
76.24locations where early childhood education scholarships may be used to pay for services
76.25provided by rated programs. The additional early childhood education scholarship
76.26locations must be located in Parent Aware Plus regions. The commissioner may assign
76.27duties as described in subdivisions 5 and 7 to approved Parent Aware Plus regions,
76.28as appropriate.
76.29    Subd. 2. Scholarship eligibility. (a) All children whose parents or legal guardians
76.30meet the eligibility requirements of paragraph (b) are eligible to receive early childhood
76.31education scholarships under this section.
76.32(b) A parent or legal guardian is eligible for an early childhood education scholarship
76.33if the parent or legal guardian:
76.34(1) has a child three or four years of age on September 1, beginning in calendar
76.35year 2011;
77.1(2) lives in one of the early childhood education scholarship locations according to
77.2subdivision 1; and
77.3(i) has income equal to or less than 47 percent of the state median income in the
77.4current calendar year; or
77.5(ii) can document their child's identification through another public funding
77.6eligibility process, including the Free and Reduced Price Lunch Program, National School
77.7Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal
77.8Improving Head Start for School Readiness Act of 2007; Minnesota family investment
77.9program under chapter 256J; and child care assistance programs under chapter 119B.
77.10    Subd. 3. Eligibility determination. The commissioner of education shall develop a
77.11simple application process that families may use to apply for early childhood education
77.12scholarships based on the criteria in subdivision 2.
77.13    Subd. 4. Scholarship value. For fiscal year 2012 and later, the early childhood
77.14education scholarship is equal to $4,000 each year for each eligible child according to
77.15subdivision 2.
77.16    Subd. 5. Scholarship use. (a) The early childhood education scholarship must be
77.17used during the 13 months after July 1, 2011, and each year thereafter by the parent or
77.18legal guardian on behalf of their child for services designed to promote school readiness at
77.19a rated program in a Parent Aware Plus region. A parent or legal guardian may use the
77.20early childhood education scholarship to pay fees or charges associated with their eligible
77.21child's education at a rated program, according to subdivision 6.
77.22(b) To maintain an eligible child's early childhood education scholarship, a parent or
77.23legal guardian must begin to use the scholarship within six months following the receipt
77.24of the scholarship or October 1.
77.25(c) For the purpose of dividing the early childhood education scholarship between
77.26two or more rated programs, a parent or legal guardian may reduce the early childhood
77.27education scholarship value paid to an individual rated program. The commissioner must
77.28determine a method to allow a parent or legal guardian to reduce or divide an early
77.29childhood education scholarship.
77.30    Subd. 6. Quality standard; transition. (a) A rated program is eligible to receive
77.31early childhood education scholarships if the program has received a three- or four-star
77.32rating under Parent Aware under section 119C.02 and is located in a Parent Aware Plus
77.33region. An eligible program must agree to accept early childhood education scholarships
77.34to pay for services.
77.35(b) Notwithstanding paragraph (a), for the first two fiscal years after a Parent
77.36Aware region has become a Parent Aware Plus region, a rated program located in the
78.1Parent Aware Plus region is eligible to receive early childhood education scholarships
78.2to pay for its services if the program has received a one-star or better rating under the
78.3Parent Aware rating system. An eligible program must agree to accept early childhood
78.4education scholarships to pay for services. This paragraph does not apply to the Parent
78.5Aware Plus regions located in the city of St. Paul, Hennepin County, Nicollet County,
78.6and Blue Earth County.
78.7    Subd. 7. Redeeming a scholarship. (a) A rated program that has received an early
78.8childhood education scholarship on behalf of an eligible child to pay for services must
78.9remit the scholarship in a manner determined by the commissioner.
78.10(b) The commissioner must pay rated programs the value of the early childhood
78.11education scholarship within 30 days of receiving the scholarship from a program.
78.12(c) The commissioner must determine a method for paying rated programs if a parent
78.13or legal guardian has divided or reduced a scholarship under subdivision 5, paragraph (b).
78.14    Subd. 8. Earned income calculation. Scholarships paid to providers on behalf
78.15of eligible parents must not be counted as earned income for the purposes of medical
78.16assistance, MinnesotaCare, MFIP, diversionary work program, child care assistance, or
78.17Head Start programs. Scholarships paid to providers on behalf of eligible parents must
78.18not be considered child care funds for the purposes of the child care assistance program
78.19under chapter 119B.
78.20EFFECTIVE DATE.This section is effective the day following final enactment.

78.21    Sec. 5. Minnesota Statutes 2010, section 124D.15, subdivision 3a, is amended to read:
78.22    Subd. 3a. Application and reporting requirements. (a) A school readiness
78.23program provider must submit a biennial plan for approval by the commissioner before
78.24receiving aid under section 124D.16. The plan must describe how the program meets the
78.25program requirements under subdivision 3. A school district by April 1 must submit
78.26the plan for approval by the commissioner in the form and manner prescribed by the
78.27commissioner. One-half the districts must first submit the plan by April 1, 2006, and
78.28one-half the districts must first submit the plan by April 1, 2007, as determined by the
78.29commissioner.
78.30(b) Programs receiving school readiness funds annually must submit a report to
78.31the department in the form and manner specified by the commissioner. The report must
78.32show how participants in the districts' school readiness programs performed on outcome
78.33measures as defined by the commissioner and display demographic information on
78.34program participants, including family income status, primary language spoken in the
78.35home, and presence of early childhood special education needs.
79.1(c) The commissioner must compile the information submitted by school districts
79.2under paragraph (b) and annually report that information to the education committees of
79.3the legislature by February 15.
79.4EFFECTIVE DATE.This section is effective for revenue in fiscal year 2012 and
79.5later.

79.6    Sec. 6. PROGRAMMATIC STREAMLINING.
79.7By January 15, 2013, the commissioner of education, in consultation with the
79.8commissioner of human services, shall report to the legislative committees having
79.9jurisdiction over early childhood education and child care on a framework for incorporating
79.10the existing state programs that provide access to early learning and care programming
79.11into a single scholarship program that funds access to high-quality early learning and care
79.12programs for low-income children in Minnesota. The report must also identify barriers
79.13and impediments to applying federal child care assistance and Head Start program funds
79.14in the form of a scholarship under Minnesota Statutes, section 119C.04. As part of the
79.15framework, the commissioner must also take into consideration efforts for simplifying the
79.16application and management procedures for participating families and providers.

79.17    Sec. 7. APPROPRIATIONS.
79.18    Subdivision 1. Department of Education. The sums indicated in this section are
79.19appropriated from the general fund to the Department of Education for the fiscal years
79.20designated.
79.21    Subd. 2. School readiness. For revenue for school readiness programs under
79.22Minnesota Statutes, sections 124D.15 and 124D.16:

79.23		$	10,095,000	.....	2012
79.24		$	10,095,000	.....	2013

79.25The 2012 appropriation includes $3,028,000 for 2011 and $7,067,000 for 2012.
79.26The 2013 appropriation includes $3,028,000 for 2012 and $7,067,000 for 2013.
79.27    Subd. 3. Early childhood family education aid. For early childhood family
79.28education aid under Minnesota Statutes, section 124D.135:

79.29		$	22,466,000	.....	2012
79.30		$	23,015,000	.....	2013

79.31The 2012 appropriation includes $6,542,000 for 2011 and $15,924,000 for 2012.
79.32The 2013 appropriation includes $6,824,000 for 2012 and $16,191,000 for 2013.
80.1    Subd. 4. Health and developmental screening aid. For health and developmental
80.2screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

80.3		$	3,568,000	.....	2012
80.4		$	3,547,000	.....	2013

80.5The 2012 appropriation includes $1,066,000 for 2011 and $2,502,000 for 2012.
80.6The 2013 appropriation includes $1,072,000 for 2012 and $2,475,000 for 2013.
80.7    Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
80.8section 119A.52:

80.9		$	20,100,000	.....	2012
80.10		$	20,100,000	.....	2013

80.11    Subd. 6. Educate parents partnership. For the educate parents partnership under
80.12Minnesota Statutes, section 124D.129:

80.13		$	49,000	.....	2012
80.14		$	49,000	.....	2013

80.15    Subd. 7. Kindergarten entrance assessment initiative and intervention
80.16program. For the kindergarten entrance assessment initiative and intervention program
80.17under Minnesota Statutes, section 124D.162:

80.18		$	281,000	.....	2012
80.19		$	281,000	.....	2013

80.20    Subd. 8. Quality rating and improvement system. For improving effectiveness of
80.21teacher-child interaction in the classroom under Minnesota Statutes, section 124D.142,
80.22paragraph (c):

80.23		$	1,750,000	.....	2012
80.24		$	0	.....	2013

80.25Any balance in the first year does not cancel but is available in the second year.
80.26The base funding for this program is $2,000,000 in fiscal year 2014 and $0 in fiscal
80.27year 2015.
80.28    Subd. 9. Early childhood education scholarships. For grants to early childhood
80.29education scholarships under Minnesota Statutes, section 119C.04:

80.30		$	2,000,000	.....	2012
80.31		$	4,000,000	.....	2013

80.32In fiscal year 2012, the appropriation is for grants to projects located in the Parent
80.33Aware Plus regions. In fiscal year 2013 and later, the appropriation is for scholarship
81.1grants to fund eligible early childhood care and education programs located in Parent
81.2Aware Plus regions that have received early childhood education scholarships from
81.3eligible parents or legal guardians under Minnesota Statutes, section 119C.04, subdivision
81.42. The appropriation is available until expended. The base funding for this program is
81.5$5,000,000 in fiscal year 2014 and later.
81.6Each year, if this appropriation is insufficient to provide early childhood education
81.7scholarships to all eligible children, the Department of Education shall make scholarships
81.8available on a first-come, first-served basis.


81.11    Section 1. Minnesota Statutes 2010, section 124D.19, subdivision 3, is amended to
81.12read:
81.13    Subd. 3. Community education director. (a) Except as provided under paragraphs
81.14(b) and (c), each board shall employ a licensed community education director. The board
81.15shall submit the name of the person who is serving as director of community education
81.16under this section on the district's annual community education report to the commissioner.
81.17(b) A board may apply to the Minnesota Board of School Administrators under
81.18Minnesota Rules, part 3512.3500, subpart 9, for authority to use an individual who is not
81.19licensed as a community education director.
81.20(c) A board of a district with a total population of 2,000 10,000 or less may identify
81.21an employee who holds a valid Minnesota principal or superintendent license under
81.22Minnesota Rules, chapter 3512, to serve as director of community education. To be
81.23eligible for an exception under this paragraph, the board shall certify in writing to the
81.24commissioner that the district has not placed a licensed director of community education
81.25on unrequested leave.
81.26EFFECTIVE DATE.This section is effective the day following final enactment.

81.27    Sec. 2. APPROPRIATION.
81.28    Subdivision 1. Department of Education. The sums indicated in this section are
81.29appropriated from the general fund to the Department of Education for the fiscal years
81.30designated.
81.31    Subd. 2. Community education aid. For community education aid under
81.32Minnesota Statutes, section 124D.20:

82.1		$	478,000	.....	2012
82.2		$	694,000	.....	2013

82.3The 2012 appropriation includes $134,000 for 2011 and $344,000 for 2012.
82.4The 2013 appropriation includes $147,000 for 2012 and $547,000 for 2013.
82.5    Subd. 3. Adults with disabilities program aid. For adults with disabilities
82.6programs under Minnesota Statutes, section 124D.56:

82.7		$	710,000	.....	2012
82.8		$	710,000	.....	2013

82.9The 2012 appropriation includes $213,000 for 2011 and $497,000 for 2012.
82.10The 2013 appropriation includes $213,000 for 2012 and $497,000 for 2013.
82.11    Subd. 4. Hearing-impaired adults. For programs for hearing-impaired adults
82.12under Minnesota Statutes, section 124D.57:

82.13		$	70,000	.....	2012
82.14		$	70,000	.....	2013

82.15    Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
82.16section 124D.22:

82.17		$	1,000	.....	2012
82.18		$	1,000	.....	2013

82.19The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
82.20The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.


82.23    Section 1. Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to
82.24read:
82.25    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
82.26education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
82.27aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
82.28the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a),
82.29or section 124D.52, subdivision 3. The state total adult basic education aid for fiscal
82.30year 2007 equals $37,673,000 plus any amount that is not paid for during the previous
82.31fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or section
82.32124D.52, subdivision 3. The state total adult basic education aid for fiscal year 2008 2012
82.33and later equals $40,650,000 $44,550,000, plus any amount that is not paid during the
83.1previous fiscal year as a result of adjustments under subdivision 4, paragraph (a), or
83.2section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal
83.3years equals:
83.4    (1) the state total adult basic education aid for the preceding fiscal year plus any
83.5amount that is not paid for during the previous fiscal year, as a result of adjustments under
83.6subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
83.7    (2) the lesser of:
83.8    (i) 1.03; or
83.9    (ii) the average growth in state total contact hours over the prior ten program years.
83.10    Beginning in fiscal year 2002, two percent of the state total adult basic education
83.11aid must be set aside for adult basic education supplemental service grants under section
83.12124D.522 .
83.13    (b) The state total adult basic education aid, excluding basic population aid, equals
83.14the difference between the amount computed in paragraph (a), and the state total basic
83.15population aid under subdivision 2.
83.16EFFECTIVE DATE.This section is effective for revenue for fiscal years 2012
83.17and later.

83.18    Sec. 2. APPROPRIATIONS.
83.19    Subdivision 1. Department of Education. The sums indicated in this section are
83.20appropriated from the general fund to the Department of Education for the fiscal years
83.21designated.
83.22    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
83.23Statutes, section 124D.531:

83.24		$	44,452,000	.....	2012
83.25		$	44,507,000	.....	2013

83.26The 2012 appropriation includes $13,365,000 for 2011 and $31,087,000 for 2012.
83.27The 2013 appropriation includes $13,322,000 for 2012 and $31,185,000 for 2013.
83.28    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests under
83.29Minnesota Statutes, section 124D.55:

83.30		$	125,000	.....	2012
83.31		$	125,000	.....	2013

84.3    Section 1. Minnesota Statutes 2010, section 120B.35, subdivision 1, is amended to read:
84.4    Subdivision 1. School and student indicators of growth and achievement.
84.5The commissioner must develop and implement a system for measuring and reporting
84.6academic achievement and individual student growth, consistent with the statewide
84.7educational accountability and reporting system. The system components must measure
84.8and separately report the adequate yearly progress of schools and the growth of individual
84.9students: students' current achievement in schools under subdivision 2; and individual
84.10students' educational growth over time under subdivision 3. The commissioner annually
84.11must report a student's growth and progress toward grade-level proficiency under section
84.12120B.299 as it relates to applicable state academic standards and the statewide assessments
84.13aligned with those standards. The system also must include statewide measures of student
84.14academic growth that identify schools with high levels of growth, and also schools with
84.15low levels of growth that need improvement. When determining a school's effect, the data
84.16must include both statewide measures of student achievement and, to the extent annual
84.17tests are administered, indicators of achievement growth that take into account a student's
84.18prior achievement. Indicators of achievement and prior achievement must be based on
84.19highly reliable statewide or districtwide assessments. Indicators that take into account a
84.20student's prior achievement must not be used to disregard a school's low achievement or to
84.21exclude a school from a program to improve low achievement levels.
84.22EFFECTIVE DATE.This section is effective July 1, 2012, and applies to growth
84.23data beginning in the 2012-2013 school year.

84.24    Sec. 2. Minnesota Statutes 2010, section 120B.36, subdivision 1, is amended to read:
84.25    Subdivision 1. School performance report cards. (a) The commissioner
84.26shall report student academic performance under section 120B.35, subdivision 2; the
84.27percentages of students showing low, medium, and high growth under section 120B.35,
84.28subdivision 3 , paragraph (b); school safety and student engagement and connection
84.29under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
84.30120B.35, subdivision 3 , paragraph (c); two separate student-to-teacher ratios that clearly
84.31indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for
84.32purposes of determining these ratios; staff characteristics excluding salaries; the number
84.33of teachers in each performance effectiveness rating category under section 122A.411,
84.34subdivision 3, by school site; student enrollment demographics; district mobility; and
85.1extracurricular activities. The report also must indicate a school's adequate yearly progress
85.2status, and must not set any designations applicable to high- and low-performing schools
85.3due solely to adequate yearly progress status.
85.4    (b) The commissioner shall develop, annually update, and post on the department
85.5Web site school performance report cards.
85.6    (c) The commissioner must make available performance report cards by the
85.7beginning of each school year.
85.8    (d) A school or district may appeal its adequate yearly progress status in writing to
85.9the commissioner within 30 days of receiving the notice of its status. The commissioner's
85.10decision to uphold or deny an appeal is final.
85.11    (e) School performance report card data are nonpublic data under section 13.02,
85.12subdivision 9 , until not later than ten days after the appeal procedure described in
85.13paragraph (d) concludes. The department shall annually post school performance report
85.14cards to its public Web site no later than September 1.
85.15EFFECTIVE DATE.This section is effective July 1, 2014.

85.16    Sec. 3. Minnesota Statutes 2010, section 122A.40, subdivision 5, is amended to read:
85.17    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's
85.18first teaching experience in Minnesota in a single district is deemed to be a probationary
85.19period of employment, and after completion thereof, the probationary period in each
85.20district in which the teacher is thereafter employed shall be one year. The school board
85.21must issue a three-year employment contract and adopt a plan for written evaluation of
85.22teachers during the probationary period that complies with section 122A.411. During the
85.23first 90 school days only of a probationary teacher's first year of employment, the board
85.24may terminate the teacher at will. Evaluation must occur at least three times each year for a
85.25teacher performing services on 120 or more school days, at least two times each year for a
85.26teacher performing services on 60 to 119 school days, and at least one time each year for a
85.27teacher performing services on fewer than 60 school days. Days devoted to parent-teacher
85.28conferences, teachers' workshops, and other staff development opportunities and days on
85.29which a teacher is absent from school must not be included in determining the number
85.30of school days on which a teacher performs services. Except as otherwise provided in
85.31paragraph (b), during the probationary period any annual contract with any teacher may or
85.32may not be renewed as the school board shall see fit. However, The board must give any
85.33such probationary teacher whose contract it declines to renew for the following school
85.34year written notice to that effect before July 1. If the teacher requests reasons for any
85.35nonrenewal of a teaching contract, the board must give the teacher its reason in writing,
86.1including a statement that appropriate supervision was furnished describing the nature and
86.2the extent of such supervision furnished the teacher during the employment by the board,
86.3within ten days after receiving such request. The school board may, after a hearing held
86.4upon due notice, discharge a teacher during the probationary period for cause, effective
86.5immediately, under section 122A.44.
86.6(b) A board must discharge a probationary teacher, effective immediately, upon
86.7receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's
86.8license has been revoked due to a conviction for child abuse or sexual abuse.
86.9(c) A probationary teacher whose first three years of consecutive employment are
86.10interrupted for active military service and who promptly resumes teaching consistent with
86.11federal reemployment timelines for uniformed service personnel under United States
86.12Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
86.13for purposes of paragraph (a).
86.14(d) A probationary teacher must complete at least 60 days of teaching service each
86.15year during the probationary period. Days devoted to parent-teacher conferences, teachers'
86.16workshops, and other staff development opportunities and days on which a teacher is
86.17absent from school do not count as days of teaching service under this paragraph.
86.18(e) A district must decide whether to issue a contract to a probationary classroom
86.19teacher at the end of the teacher's probationary period based on:
86.20(1) the teacher's professional growth plan based on standards of effective professional
86.21practice, student learning goals, and teacher evaluations under this subdivision that
86.22comply with section 122A.411;
86.23(2) the teacher's appraisal results and performance effectiveness rating under section
86.24122A.411; and
86.25(3) other locally selected criteria aligned to instructional practices in teaching and
86.26learning.
86.27EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
86.28later.

86.29    Sec. 4. Minnesota Statutes 2010, section 122A.40, subdivision 6, is amended to read:
86.30    Subd. 6. Professional development and mentoring for probationary teachers.
86.31(a) A school board and the exclusive representative of the teachers in the district must
86.32collaborate in establishing a professional development model for probationary teachers,
86.33consistent with subdivision 8, that uses a district's professional development resources and
86.34plans, including those under sections 122A.414, if applicable, 122A.60, and 122A.61, to
86.35improve teaching and learning.
87.1(b) A school board and an exclusive representative of the teachers in the district
87.2must develop a probationary teacher peer review process through joint agreement. The
87.3process may include having trained observers serve as mentors or coaches or having
87.4teachers participate in professional learning communities.
87.5EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
87.6later.

87.7    Sec. 5. Minnesota Statutes 2010, section 122A.40, subdivision 7, is amended to read:
87.8    Subd. 7. Termination of contract after probationary period. (a) A teacher who
87.9has completed a probationary period in any district, and who has not been discharged or
87.10advised of a refusal to renew the teacher's contract under subdivision 5, shall elect to have
87.11a continuing renewable five-year contract with such the district where contract terms and
87.12conditions, including salary and salary increases, are established based either on the length
87.13of the school calendar or an extended school calendar under section 120A.415. Thereafter,
87.14The teacher's contract must remain in full force and effect, except as modified by mutual
87.15consent of the board and the teacher, until terminated by a majority roll call vote of the full
87.16membership of the board prior to April 1 upon one of the grounds specified in subdivision
87.179 or July 1 upon one of the grounds specified in subdivision 10 or 11, or until the teacher
87.18is discharged pursuant to subdivision 13, or by the written resignation of the teacher
87.19submitted prior to April 1. If an agreement as to the terms and conditions of employment
87.20for the succeeding school year has not been adopted pursuant to the provisions of sections
87.21179A.01 to 179A.25 prior to March 1, the teacher's right of resignation is extended to the
87.2230th calendar day following the adoption of said the contract in compliance with under
87.23section 179A.20, subdivision 5. Such Written resignation by the teacher is effective as
87.24of on June 30 if submitted prior to before that date and the teachers' teacher's right of
87.25resignation for the next school year then beginning shall cease on July 15.
87.26(b) Before a teacher's contract is terminated by the board, the board must notify
87.27the teacher in writing and state its ground for the proposed termination in reasonable
87.28detail together with a statement that the teacher may make a written request for a hearing
87.29before the board within 14 days after receipt of such notification. If the grounds are those
87.30specified in subdivision 9 or 13, the notice must also state a teacher may request arbitration
87.31under subdivision 15. Within 14 days after receipt of this notification the teacher may
87.32make a written request for a hearing before the board or an arbitrator and it shall be
87.33granted upon reasonable notice to the teacher of the date set for hearing, before final action
87.34is taken. If no hearing is requested within such period, it shall be deemed acquiescence by
87.35the teacher to the board's action. Such The teacher's termination shall take effect at the
88.1close of the school year in which the contract is terminated in the manner aforesaid must
88.2comply with subdivision 9 or 13. Such A contract may be terminated at any time by mutual
88.3consent of the board and the teacher and this section does not affect the powers of a board
88.4to suspend, discharge, or demote a teacher under and pursuant to other provisions of law.
88.5(b) (c) A teacher electing to have a continuing contract based on the extended school
88.6calendar under section 120A.415 must participate in staff development training under
88.7subdivision 7a and shall receive an increased base salary.
88.8EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
88.9later.

88.10    Sec. 6. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
88.11to read:
88.12    Subd. 7b. Teacher employment. (a) A school district must use a teacher appraisal
88.13framework to make informed decisions about teacher development and performance.
88.14Teachers must participate in ongoing professional development to improve teaching and
88.15learning throughout a term of employment.
88.16(b) After completing the initial three-year probationary period without discharge, a
88.17teacher who is reemployed by a school board continues in service and holds that position
88.18during good behavior and efficient and competent service for a renewable five-year term.
88.19The terms and conditions of a teacher's employment contract, including salary and salary
88.20increases, must be based either on the length of the school year or an extended school
88.21calendar under section 120A.415.
88.22(c) At the end of every five-year term, the school board either must continue or
88.23terminate a teacher's employment based on:
88.24(1) a portfolio of the teacher's five-year professional growth plan based on standards
88.25of professional practice, student learning, and successful teacher evaluations, consistent
88.26with section 122A.411, that are conducted at least twice per year by a trained school
88.27administrator;
88.28(2) the teacher's appraisal results and performance effectiveness rating under section
88.29122A.411; and
88.30(3) other locally selected criteria aligned to instructional practices in teaching and
88.31learning.
88.32EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
88.33later.

89.1    Sec. 7. Minnesota Statutes 2010, section 122A.40, subdivision 8, is amended to read:
89.2    Subd. 8. Professional development and peer coaching for continuing contract
89.3teachers. (a) A school board and the exclusive representative of the teachers in the district
89.4must collaborate in establishing a professional development model for continuing contract
89.5teachers, consistent with subdivision 6, that uses a district's professional development
89.6resources and plans, including those under sections 122A.414, if applicable, 122A.60, and
89.7122A.61, to improve teaching and learning.
89.8(b) A school board and an exclusive representative of the teachers in the district shall
89.9develop a peer review process for continuing contract teachers through joint agreement.
89.10The process may include having trained observers serve as peer coaches or having
89.11teachers participate in professional learning communities.
89.12EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
89.13later.

89.14    Sec. 8. Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:
89.15    Subd. 9. Grounds for termination. (a) A continuing contract may be terminated,
89.16effective at the close of the school year, upon any of the following grounds:
89.17(a) (1) inefficiency;
89.18(b) (2) neglect of duty, or persistent violation of school laws, rules, regulations,
89.19or directives;
89.20(c) (3) conduct unbecoming a teacher which materially impairs the teacher's
89.21educational effectiveness;
89.22(d) (4) other good and sufficient grounds rendering the teacher unfit to perform the
89.23teacher's duties.; or
89.24(5) the teacher is ineffective under section 122A.411 and not recommended by the
89.25district for continued employment under this section.
89.26(b) A contract must not be terminated upon one of the grounds specified in clause
89.27under paragraph (a), (b), (c), or (d), clause (5), unless the teacher fails to correct the
89.28deficiency after being given written notice of the specific items of complaint and
89.29reasonable time within which 180 days after receiving the notice to remedy them.
89.30EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
89.31later.

89.32    Sec. 9. Minnesota Statutes 2010, section 122A.40, subdivision 10, is amended to read:
90.1    Subd. 10. Negotiated unrequested leave of absence. The school board and the
90.2exclusive bargaining representative of the teachers may negotiate a plan providing for
90.3unrequested leave of absence without pay or fringe benefits for as many teachers as may
90.4be necessary because of discontinuance of position, lack of pupils, financial limitations, or
90.5merger of classes caused by consolidation of districts. Failing to successfully negotiate
90.6such a plan, the provisions of subdivision 11 shall apply. The negotiated plan must not
90.7include provisions which would result in the exercise of seniority by a teacher holding a
90.8provisional license, other than a vocational education license, contrary to the provisions of
90.9subdivision 11, clause (c), or the reinstatement of a teacher holding a provisional license,
90.10other than a vocational education license, contrary to the provisions of subdivision 11,
90.11clause (e). The provisions of section 179A.16 do not apply for the purposes of this
90.12subdivision.
90.13EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
90.14later.

90.15    Sec. 10. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
90.16    Subd. 11. Unrequested leave of absence. (a) The board may place on unrequested
90.17leave of absence, without pay or fringe benefits, as many teachers as may be necessary
90.18because of discontinuance of position, lack of pupils, financial limitations, or merger of
90.19classes caused by consolidation of districts. The unrequested leave is effective at the close
90.20of the school year. In placing teachers on unrequested leave, the superintendent may
90.21exempt from the effects of paragraphs (b) to (f) those teachers who, in the superintendent's
90.22judgment, are able to provide instruction that similarly licensed teachers cannot provide or
90.23whose subject area license meets unmet district needs for student instruction. The board is
90.24governed by the following provisions: paragraphs (b) to (k).
90.25(a) The board may place probationary teachers on unrequested leave first in the
90.26inverse order of their employment. A teacher who has acquired continuing contract rights
90.27must not be placed on unrequested leave of absence while probationary teachers are
90.28retained in positions for which the teacher who has acquired continuing contract rights is
90.29licensed;
90.30(b) Teachers who have acquired continuing contract rights shall be placed on
90.31unrequested leave of absence in fields in which they are licensed in the following order:
90.32(1) teachers with a "needs improvement" or "ineffective" rating under section
90.33122A.411 in the inverse order in which they were employed by the school district.;
91.1(2) teachers with an "average" rating under section 122A.411 with four or more
91.2years of teaching experience in the inverse order in which they were employed by the
91.3school district;
91.4(3) teachers with an "effective" rating under section 122A.411 with fewer than
91.5four years of teaching experience in the inverse order in which they were employed by
91.6the school district;
91.7(4) teachers with a "highly effective" rating under section 122A.411 in the inverse
91.8order in which they were employed by the school district;
91.9(5) teachers with a "distinguished" rating under section 122A.411 in the inverse
91.10order in which they were employed by the school district; and
91.11(6) teachers with an "exemplary" rating under section 122A.411 in the inverse order
91.12in which they were employed by the school district.
91.13(c) In the case of equal seniority within a clause of paragraph (b), the order in which
91.14teachers who have acquired continuing contract rights shall be placed on unrequested
91.15leave of absence in fields in which they are licensed is negotiable;.
91.16(c) Notwithstanding the provisions of clause (b), a teacher is not entitled to exercise
91.17any seniority when that exercise results in that teacher being retained by the district in a
91.18field for which the teacher holds only a provisional license, as defined by the board of
91.19teaching, unless that exercise of seniority results in the placement on unrequested leave of
91.20absence of another teacher who also holds a provisional license in the same field. The
91.21provisions of this clause do not apply to vocational education licenses;
91.22(d) Notwithstanding clauses (a), paragraphs (b) and (c), if the placing of a
91.23probationary teacher on unrequested leave before a teacher who has acquired continuing
91.24rights, the placing of a teacher who has acquired continuing contract rights on unrequested
91.25leave before another teacher who has acquired continuing contract rights but who has
91.26greater seniority, or the restriction restrictions imposed by the provisions of clause
91.27paragraph (b) or (c) would place the district in violation of its affirmative action program,
91.28the district may retain the probationary teacher, the teacher with less seniority, or the
91.29provisionally licensed teacher; with a lower designated status or less seniority.
91.30(e) Teachers placed on unrequested leave of absence must be reinstated to the
91.31positions from which they have been given leaves of absence or, if not available, to
91.32other available positions in the school district in fields in which they are licensed.
91.33Reinstatement must be in the inverse order of placement on leave of absence. A teacher
91.34must not be reinstated to a position in a field in which the teacher holds only a provisional
91.35license, other than a vocational education license, while another teacher who holds a
91.36nonprovisional license in the same field remains on unrequested leave. The order of
92.1reinstatement of teachers who have equal seniority and who are placed on unrequested
92.2leave in the same school year is negotiable;.
92.3(f) Appointment of a new teacher must not be made while there is available, on
92.4unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
92.5teacher fails to advise the school board within 30 days of the date of notification that a
92.6position is available to that teacher who may return to employment and assume the duties
92.7of the position to which appointed on a future date determined by the board;.
92.8(g) A teacher placed on unrequested leave of absence may engage in teaching or any
92.9other occupation during the period of this leave;.
92.10(h) The unrequested leave of absence must not impair the continuing contract rights
92.11of a teacher or result in a loss of credit for previous years of service;.
92.12(i) The unrequested leave of absence of a teacher who is placed on unrequested leave
92.13of absence and who is not reinstated shall continue for a period of five years until that
92.14teacher's contract expires under subdivision 7b, after which the right to reinstatement shall
92.15terminate. The teacher's right to reinstatement shall also terminate if the teacher fails to
92.16file with the board by April 1 of any year a written statement requesting reinstatement;.
92.17(j) The same provisions applicable to terminations of probationary or continuing
92.18contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of
92.19absence;.
92.20(k) Nothing in this subdivision shall be construed to impair the rights of teachers
92.21placed on unrequested leave of absence to receive unemployment benefits if otherwise
92.22eligible.
92.23EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
92.24later.

92.25    Sec. 11. Minnesota Statutes 2010, section 122A.41, subdivision 2, is amended to read:
92.26    Subd. 2. Probationary period; discharge or demotion. (a) All teachers in
92.27the public schools in cities of the first class during the first three years of consecutive
92.28employment shall be deemed to be in a probationary period of employment during which
92.29period any annual contract with any teacher may, or may not, be renewed as the school
92.30board, after consulting with the peer review committee charged with evaluating the
92.31probationary teachers under subdivision 3, shall see fit. The school site management team
92.32or the school board if there is no school site management team, shall issue a three-year
92.33employment contract and adopt a plan for a written evaluation of teachers during the
92.34probationary period according to subdivision 3 that is consistent with section 122A.411.
92.35During the first 90 days only of a probationary teacher's first year of employment, the
93.1board may terminate the teacher at will. Evaluation by the peer review committee charged
93.2with evaluating of probationary teachers under subdivision 3 shall occur at least three
93.3times each year for a teacher performing services on 120 or more school days, at least
93.4two times each year for a teacher performing services on 60 to 119 school days, and
93.5at least one time each year for a teacher performing services on fewer than 60 school
93.6days. Days devoted to parent-teacher conferences, teachers' workshops, and other staff
93.7development opportunities and days on which a teacher is absent from school shall not be
93.8included in determining the number of school days on which a teacher performs services.
93.9The school board may, during such probationary period, discharge or demote a teacher
93.10for any of the causes as specified in this code. A written statement of the cause of such
93.11discharge or demotion shall be given to the teacher by the school board at least 30 days
93.12before such removal or demotion shall become effective, and the teacher so notified shall
93.13have no right of appeal therefrom.
93.14(b) A probationary teacher whose first three years of consecutive employment are
93.15interrupted for active military service and who promptly resumes teaching consistent with
93.16federal reemployment timelines for uniformed service personnel under United States
93.17Code, title 38, section 4312(e), is considered to have a consecutive teaching experience
93.18for purposes of paragraph (a).
93.19(c) A probationary teacher must complete at least 60 days of teaching service each
93.20year during the probationary period. Days devoted to parent-teacher conferences, teachers'
93.21workshops, and other staff development opportunities and days on which a teacher is
93.22absent from school do not count as days of teaching service under this paragraph.
93.23(d) A district must decide whether to issue a contract to a probationary classroom
93.24teacher at the end of the teacher's probationary period based on:
93.25(1) a portfolio of the teacher's professional growth plan based on standards of
93.26effective professional practice, student learning goals, and successful teacher evaluations,
93.27consistent with section 122A.411, that are conducted at least twice per year by a trained
93.28school administrator;
93.29(2) the teacher's appraisal results and performance effectiveness rating under section
93.30122A.411; and
93.31(3) other locally selected criteria aligned to instructional practices in teaching and
93.32learning.
93.33EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
93.34later.

93.35    Sec. 12. Minnesota Statutes 2010, section 122A.41, subdivision 3, is amended to read:
94.1    Subd. 3. Professional development and mentoring for probationary teachers.
94.2(a) A school board and the exclusive representative of the teachers in the district must
94.3collaborate in establishing a professional development model for probationary teachers,
94.4consistent with subdivision 5, that uses a district's professional development resources and
94.5plans, including those under sections 122A.414, if applicable, 122A.60, and 122A.61, to
94.6improve teaching and learning.
94.7(b) A board and an exclusive representative of the teachers in the district must
94.8develop a probationary teacher peer review process through joint agreement. The process
94.9may include having trained observers serve as mentors or coaches or having teachers
94.10participate in professional learning communities.
94.11EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
94.12later.

94.13    Sec. 13. Minnesota Statutes 2010, section 122A.41, subdivision 4, is amended to read:
94.14    Subd. 4. Period of service after probationary period; discharge or demotion
94.15Teacher employment. (a) A school district must use a teacher appraisal framework
94.16to make informed decisions about teacher development and performance. Teachers
94.17must participate in ongoing professional development to improve teaching and learning
94.18throughout a term of employment.
94.19(b) After the completion of such completing the initial three-year probationary
94.20period, without discharge, such teachers as are thereupon a teacher who is reemployed
94.21shall continue in service and hold their respective that position during good behavior and
94.22efficient and competent service for a renewable five-year term and must not be discharged
94.23or demoted except for cause after a hearing. The terms and conditions of a teacher's
94.24employment contract, including salary and salary increases, must be based either on the
94.25length of the school year or an extended school calendar under section 120A.415.
94.26(b) (c) A probationary teacher is deemed to have been reemployed for the ensuing
94.27school year, unless the school board in charge of such school gave such teacher notice in
94.28writing before July 1 of the termination of such employment.
94.29(c) (d) A teacher electing to have an employment contract based on the extended
94.30school calendar under section 120A.415 must participate in staff development training
94.31under subdivision 4a and shall receive an increased base salary.
94.32(e) At the end of every five-year term, the school board must either continue or
94.33terminate a teacher's employment based on:
94.34(1) a portfolio of the teacher's five-year professional growth plan based on standards
94.35of professional practice, student learning, and successful teacher evaluations, consistent
95.1with section 122A.411, that are conducted at least twice per year by a trained school
95.2administrator;
95.3(2) the teacher's appraisal results and performance effectiveness rating under section
95.4122A.411; and
95.5(3) other locally selected criteria aligned to instructional practices in teaching and
95.6learning.
95.7EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
95.8later.

95.9    Sec. 14. Minnesota Statutes 2010, section 122A.41, subdivision 5, is amended to read:
95.10    Subd. 5. Professional development and peer coaching for continuing contract
95.11teachers. (a) A school board and the exclusive representative of the teachers in the district
95.12must collaborate in establishing a professional development model for probationary
95.13teachers, consistent with subdivision 3, that uses a district's professional development
95.14resources and plans, including those under sections 122A.414, if applicable, 122A.60, and
95.15122A.61, to improve teaching and learning.
95.16(b) A school board and an exclusive representative of the teachers in the district must
95.17develop a peer review process for nonprobationary teachers through joint agreement. The
95.18process may include having trained observers serve as peer coaches or having teachers
95.19participate in professional learning communities.
95.20EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
95.21later.

95.22    Sec. 15. Minnesota Statutes 2010, section 122A.41, subdivision 6, is amended to read:
95.23    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
95.24in paragraph (b), causes for the discharge or demotion of a teacher either during or after
95.25the probationary period must be:
95.26(1) immoral character, conduct unbecoming a teacher, or insubordination;
95.27(2) failure without justifiable cause to teach without first securing the written release
95.28of the school board having the care, management, or control of the school in which the
95.29teacher is employed;
95.30(3) inefficiency in teaching or in the management of a school;
95.31(4) affliction with active tuberculosis or other communicable disease must be
95.32considered as cause for removal or suspension while the teacher is suffering from such
95.33disability; or
96.1(5) discontinuance of position or lack of pupils.; or
96.2(6) the teacher is ineffective under section 122A.411 and not recommended by the
96.3district for employment under this section.
96.4For purposes of this paragraph, the provision in clause (6) does not interfere with the
96.5effect of clause (3) and conduct unbecoming a teacher includes an unfair discriminatory
96.6practice described in section 363A.13. A teacher must not be discharged under clause (6)
96.7unless the teacher fails to correct the deficiency after being given written notice of the
96.8specific items of complaint and 180 days within which to remedy them.
96.9(b) A probationary or continuing-contract teacher must be discharged immediately
96.10upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
96.11teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
96.12EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
96.13later.

96.14    Sec. 16. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
96.15    Subd. 14. Services terminated by discontinuance or lack of pupils; preference
96.16given. (a) A teacher whose services are terminated on account of discontinuance of
96.17position or lack of pupils must receive first consideration for other positions in the district
96.18for which that teacher is qualified. In the event it becomes necessary to discontinue one
96.19or more positions, in making such discontinuance, teachers must be discontinued in any
96.20department in the following order:
96.21(1) teachers with a "needs improvement" or "ineffective" rating under section
96.22122A.411 in the inverse order in which they were employed, unless a board and the
96.23exclusive representative of teachers in the district negotiate a plan providing otherwise.;
96.24(2) teachers with an "average" rating under section 122A.411 with four or more
96.25years of teaching experience in the inverse order in which they were employed by the
96.26school district;
96.27(3) teachers with an "effective" rating under section 122A.411 with fewer than
96.28four years of teaching experience in the inverse order in which they were employed by
96.29the school district;
96.30(4) teachers with a "highly effective" rating under section 122A.411 in the inverse
96.31order in which they were employed by the school district;
96.32(5) teachers with a "distinguished" rating under section 122A.411 in the inverse
96.33order in which they were employed by the school district; and
96.34(6) teachers with an "exemplary" rating under section 122A.411 in the inverse order
96.35in which they were employed by the school district.
97.1The superintendent may exempt from the effects of this subdivision those teachers
97.2who, in the superintendent's judgment, are able to provide instruction that similarly
97.3licensed teachers cannot provide or whose subject area license meets unmet district needs
97.4for student instruction.
97.5(b) Notwithstanding the provisions of clause (a), a teacher is not entitled to exercise
97.6any seniority when that exercise results in that teacher being retained by the district in
97.7a field for which the teacher holds only a provisional license, as defined by the Board
97.8of Teaching, unless that exercise of seniority results in the termination of services, on
97.9account of discontinuance of position or lack of pupils, of another teacher who also
97.10holds a provisional license in the same field. The provisions of this clause do not apply
97.11to vocational education licenses.
97.12(c) Notwithstanding the provisions of clause (a), a teacher must not be reinstated
97.13to a position in a field in which the teacher holds only a provisional license, other than a
97.14vocational education license, while another teacher who holds a nonprovisional license in
97.15the same field is available for reinstatement.
97.16EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
97.17later.

97.18    Sec. 17. [122A.411] TEACHER EVALUATIONS.
97.19    Subdivision 1. Evaluation structure. A teacher evaluation structure is established
97.20to provide information about teacher effectiveness for teachers under section 122A.06,
97.21subdivision 2, school districts, and charter schools to use in developing and improving
97.22teacher performance and student learning. The three-part structure contains:
97.23(1) a teacher appraisal framework that identifies performance measures for
97.24determining teacher effectiveness;
97.25(2) a mechanism for translating the performance data into a five-part teacher
97.26effectiveness rating scale; and
97.27(3) a four-tier status designation that identifies teachers as standard, advanced,
97.28distinguished, or exemplary based on a teacher's effectiveness rating over time.
97.29    Subd. 2. Teacher appraisal framework. (a) Each school district and charter
97.30school must create and implement a teacher appraisal framework. The framework must
97.31translate performance measures and scores under this subdivision into five performance
97.32effectiveness rating scores where "5" is the highest rating and "1" is the lowest rating. The
97.33department, in collaboration with the Board of Teaching, must make available to districts
97.34and charter schools appraisal frameworks and other materials from evidence-based
98.1sources to assist districts and charter schools in implementing an appraisal framework,
98.2consistent with this section.
98.3(b) If statewide assessment results are available under section 120B.35, these results
98.4are the basis for 50 percent of a teacher's total appraisal.
98.5(c) If statewide assessment results are unavailable, 40 percent of a teacher's total
98.6appraisal must consist of results from districtwide assessments of state and local standards
98.7and another ten percent of the teacher's total appraisal must consist of results from
98.8teacher-developed assessments.
98.9(d) If no districtwide assessment results are available, 50 percent of a teacher's total
98.10appraisal must consist of teacher-developed and administrator-approved assessments of
98.11state and local standards. A school administrator shall meet with teachers at least annually
98.12under this paragraph to review, modify if needed, and approve local course and grade-level
98.13expectations for student achievement and growth.
98.14(e) A charter school board of directors or a school board, in consultation with
98.15its teachers, must identify the performance measures used as a basis for the other 50
98.16percent of a teacher's total appraisal under this subdivision. The appraisal must include
98.17data from parent surveys and at least two annual evaluations performed by a trained
98.18school administrator. Other performance measures may include student surveys, peer
98.19observations and review, teacher performance portfolios, video classroom observations
98.20with teacher reflection after viewing videos, measures that are part of an approved
98.21educational improvement plan under section 122A.413, and other highly reliable
98.22research-based measures.
98.23    Subd. 3. Teacher performance effectiveness ratings. (a) Beginning in the
98.242012-2013 school year and consistent with subdivision 2, a school district or charter
98.25school annually must use the following scale to determine a teacher performance
98.26effectiveness rating and corresponding status designation under subdivision 4 for each
98.27teacher who teaches a subject for which statewide assessment results are available under
98.28section 120B.35:
98.29(1) a teacher is "highly effective" if the teacher's appraisal shows that the teacher's
98.30students, on average, achieved 1-1/2 or more years of growth on statewide assessments
98.31and the teacher received a "5" performance rating under the district or charter school
98.32appraisal framework;
98.33(2) a teacher is "effective" if the teacher's appraisal shows that the teacher's students,
98.34on average, achieved at least one year of growth on statewide assessments and the teacher
98.35received a "4" performance rating under the district or charter school appraisal framework;
99.1(3) a teacher is "average" if the teacher's appraisal shows that the teacher's students,
99.2on average, achieved at least 0.9 years of growth on statewide student assessments and the
99.3teacher received a "3" performance rating under the district or charter school appraisal
99.4framework;
99.5(4) a teacher "needs improvement" if the teacher's appraisal shows that the teacher's
99.6students, on average, achieved between 0.5 and 0.9 years of growth on statewide
99.7assessments or the teacher received a "2" or lower performance rating under the district or
99.8charter school appraisal framework; and
99.9(5) a teacher is "ineffective" if the teacher's appraisal shows that the teacher's
99.10students, on average, achieved less than one-half year of growth on statewide assessments
99.11and the teacher received a "1" performance rating under the district or charter school
99.12appraisal framework.
99.13A teacher who does not meet both the growth and performance rating requirements
99.14in clauses (1) to (4) receives the next lower effectiveness rating that immediately follows
99.15the clause where the teacher met either the growth or the performance rating requirement.
99.16(b) Beginning in the 2012-2013 school year and consistent with subdivision 2, a
99.17school district or charter school annually must use the following teacher performance
99.18effectiveness rating scale and corresponding status designation under subdivision 4 for
99.19each teacher who teaches a subject for which no statewide assessment data exist:
99.20(1) a teacher is "highly effective" if the teacher receives a "5" performance rating
99.21under the district or charter school appraisal framework;
99.22(2) a teacher is "effective" if the teacher receives a "4" performance rating under the
99.23district or charter school appraisal framework;
99.24(3) a teacher is "average" if the teacher receives a "3" performance rating under the
99.25district or charter school appraisal framework;
99.26(4) a teacher "needs improvement" if the teacher receives a "2" performance rating
99.27under the district or charter school appraisal framework; and
99.28(5) a teacher is "ineffective" if the teacher receives a "1" performance rating under
99.29the district or charter school appraisal framework.
99.30    Subd. 4. Teacher status designations. (a) Beginning no later than the 2012-2013
99.31school year, a school district or charter school shall establish a four-tier status designation
99.32for identifying teacher effectiveness, consistent with this section, using measures of
99.33teacher performance and student learning as they relate to meeting state and local
99.34education standards.
99.35(b) To receive a "standard" designation, a probationary teacher during the three-year
99.36probationary period must receive at least one rating of "average," "effective," or "highly
100.1effective" under the district or charter school appraisal framework and meet applicable
100.2professional development requirements.
100.3(c) A licensed teacher who has a "standard" designation must receive a rating
100.4of "average," "effective," or "highly effective" in four years out of each five-year
100.5employment period and meet applicable professional development requirements to receive
100.6an "advanced" status designation.
100.7(d) A teacher who receives a "highly effective" rating in three years out of a five-year
100.8employment period and meets applicable professional development requirements receives
100.9a "distinguished" status designation.
100.10(e) A teacher who receives a "highly effective" rating in seven years during two
100.11consecutive five-year employment periods and meets applicable professional development
100.12requirements receives an "exemplary" status designation.
100.13(f) A teacher who receives a "distinguished" or "exemplary" status designation
100.14keeps that designation for the remainder of the five-year employment period in which the
100.15teacher received the designation.
100.16(g) A teacher who does not meet the requirements of a particular status designation
100.17under paragraph (c), (d), or (e) receives the next lower status designation under this
100.18subdivision. A teacher who does not meet the requirements of a standard designation
100.19under paragraph (b) has no status designation.
100.20    Subd. 5. Data gathering and analysis. Beginning in the 2012-2013 school
100.21year, the department, in consultation with the Board of Teaching, shall assist a school
100.22district or charter school in collecting and aggregating student data needed to implement
100.23subdivisions 2, 3, and 4. If the school district or charter school and the department agree
100.24that an ongoing need exists for department assistance, the district or charter school and the
100.25department shall enter into a data-sharing agreement. Any data on individual students or
100.26teachers received, collected, or created that are used to generate summary data under this
100.27section are nonpublic data under chapter 13.
100.28    Subd. 6. Reports. (a) Beginning in the 2012-2013 school year, each school district
100.29and charter school annually shall report to the department by August 31 the following
100.30information about the school year just completed:
100.31(1) each teacher's performance effectiveness rating determined under subdivision 2,
100.32paragraph (b), (c), or (d);
100.33(2) each teacher's performance effectiveness rating determined under subdivision 2,
100.34paragraph (e);
100.35(3) each teacher's status designation under subdivision 4;
100.36(4) each teacher's professional preparation program;
101.1(5) its appraisal framework; and
101.2(6) its graduation rate.
101.3(b) Beginning in 2014, the department annually by February 15 shall submit a
101.4report to the committees of the legislature with primary jurisdiction over kindergarten
101.5through grade 12 education policy and finance that analyzes and evaluates summary data
101.6generated under paragraph (a) to determine the effectiveness of teacher appraisal systems
101.7in improving teaching and learning.
101.8(c) Beginning in 2014, the department annually by June 30 shall submit summary
101.9data on teacher effectiveness under paragraph (a) to the Board of Teaching and the
101.10Minnesota teacher preparation program or institution that prepared the teachers covered in
101.11that year's district and charter school reports to the department.
101.12EFFECTIVE DATE.This section is effective the day following final enactment.

101.13    Sec. 18. Minnesota Statutes 2010, section 122A.416, is amended to read:
101.14122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE
101.15FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT
101.16INTEGRATION COLLABORATIVES.
101.17Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10,
101.18multidistrict integration collaboratives and the Perpich Center for Arts Education are
101.19eligible to receive alternative teacher compensation revenue as if they were intermediate
101.20school districts. To qualify for alternative teacher compensation revenue, a multidistrict
101.21integration collaborative or the Perpich Center for Arts Education must meet all of the
101.22requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate
101.23school districts, must report its enrollment as of October 1 of each year to the department,
101.24and must annually report its expenditures for the alternative teacher professional pay
101.25system consistent with the uniform financial accounting and reporting standards to the
101.26department by November 30 of each year.
101.27EFFECTIVE DATE.This section is effective July 1, 2012.

101.28    Sec. 19. [122A.418] TEACHER EFFECTIVENESS-BASED BONUSES.
101.29(a) A teacher with a "distinguished" rating under section 122A.411 shall receive
101.30an annual bonus equal to ten percent of the teacher's base salary as long as the teacher
101.31maintains a "distinguished" rating.
102.1(b) A teacher with an "exemplary" rating under section 122A.411 shall receive
102.2an annual bonus equal to 20 percent of the teacher's base salary as long as the teacher
102.3maintains an "exemplary" rating.
102.4EFFECTIVE DATE.This section is effective July 1, 2019.

102.5    Sec. 20. Minnesota Statutes 2010, section 122A.60, is amended to read:
102.6122A.60 STAFF DEVELOPMENT PROGRAM.
102.7    Subdivision 1. Staff development committee. A school board must use the revenue
102.8authorized in section 122A.61 for in-service education for programs under section
102.9120B.22, subdivision 2 , or for staff development and teacher training plans under this
102.10section. The board must establish an advisory staff development committee to develop the
102.11plan, assist site professional development teams in developing a site plan consistent with
102.12the goals of the plan, and evaluate staff development efforts at the site level. A majority
102.13of the advisory committee and the site professional development team must be teachers
102.14representing various grade levels, subject areas, and special education. The advisory
102.15committee must also include nonteaching staff, parents, and administrators.
102.16    Subd. 1a. Effective staff development activities. (a) Staff development activities
102.17must be aligned with district and school site staff development plans, based on student
102.18achievement and growth data, and focused on student learning goals. Activities must:
102.19(1) focus on the school classroom and research-based scientifically based research
102.20strategies that improve student learning;
102.21(2) provide opportunities for teachers to practice and improve their instructional
102.22skills over time and receive instructional-based observations using objective
102.23standards-based assessments to assist in the professional growth process;
102.24(3) provide regular opportunities for teachers to use student data as part of their
102.25daily work to increase student achievement;
102.26(4) enhance teacher content knowledge and instructional skills;
102.27(5) align with state and local academic standards;
102.28(6) provide job-embedded or integrated professional development opportunities
102.29during the teacher contract day to build professional relationships, foster collaboration
102.30among principals and staff who provide instruction to identify instructional strategies
102.31to meet student learning goals, plan instruction, practice new teaching strategies, and
102.32review the results of implementing those strategies, and provide opportunities for
102.33teacher-to-teacher coaching and mentoring; and
103.1(7) align with the plan of the district or site for those participating in an alternative
103.2teacher professional pay system under section 122A.414.
103.3    Staff development activities also may include curriculum development and
103.4curriculum training programs, and activities that provide teachers and other members of
103.5site-based teams training to enhance team performance. The school district also may
103.6implement other staff development activities required by law and activities associated with
103.7professional teacher compensation models.
103.8(b) Release time provided for teachers to supervise students on field trips and school
103.9activities, or independent tasks not associated with enhancing the teacher's knowledge
103.10and instructional skills, such as preparing report cards, calculating grades, or organizing
103.11classroom materials, may not be counted as staff development time that is financed with
103.12staff development reserved revenue under section 122A.61.
103.13    Subd. 2. Contents of plan. The plan must be based on student achievement
103.14and growth and include student learning goals, the staff development outcomes under
103.15subdivision 3, the means to achieve the outcomes, and procedures for evaluating progress
103.16at each school site toward meeting education outcomes, consistent with relicensure
103.17requirements under section 122A.18, subdivision 4. The plan also must:
103.18(1) support stable and productive professional communities achieved through
103.19ongoing and schoolwide progress and growth in teaching practice;
103.20(2) emphasize coaching, professional learning communities, classroom action
103.21research, and other job-embedded models;
103.22(3) maintain a strong subject matter focus premised on students' learning goals;
103.23(4) ensure specialized preparation and learning about issues related to teaching
103.24students with special needs and limited English proficiency; and
103.25(5) reinforce national and state standards of effective teaching practice.
103.26    Subd. 3. Staff development outcomes. The advisory staff development committee
103.27must adopt a staff development plan for increasing teacher effectiveness and student
103.28learning and for improving student achievement. The plan must be consistent with
103.29education outcomes that the school board determines. The plan must include ongoing staff
103.30development activities that contribute toward continuous improvement in achievement of
103.31the following goals:
103.32(1) improve student achievement of state and local education academic standards in
103.33all areas of the curriculum by using best practices methods and benchmark assessments
103.34aligned with academic standards;
104.1(2) effectively meet the needs of a diverse student population, including at-risk
104.2children, children with disabilities, and gifted children, within the regular classroom
104.3and other settings;
104.4(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
104.5student population that is consistent with the state education diversity rule and the district's
104.6education diversity plan;
104.7(4) improve staff collaboration and develop mentoring and peer coaching programs
104.8for teachers new to the school or district in their first five years of teaching;
104.9(5) effectively teach and model violence prevention policy and curriculum that
104.10address early intervention alternatives, issues of harassment, and teach nonviolent
104.11alternatives for conflict resolution; and
104.12(6) provide teachers and other members of site-based management teams with
104.13appropriate management and financial management skills.
104.14    Subd. 4. Staff development report. (a) By October 15 1 of each year, the district
104.15and site staff development committees shall write and submit a report of staff development
104.16activities and expenditures for the previous year, in the form and manner determined by
104.17the commissioner. The report, signed by the district superintendent and staff development
104.18chair, must include assessment and evaluation data indicating progress toward district and
104.19site staff development goals based on teaching and learning outcomes, including the
104.20percentage of teachers and other staff involved in instruction who participate in effective
104.21staff development activities under subdivision 3.
104.22(b) The report must break down expenditures for:
104.23(1) curriculum development and curriculum training programs; and
104.24(2) staff development training models, workshops, and conferences, and the cost of
104.25releasing teachers or providing substitute teachers for staff development purposes.
104.26The report also must indicate whether the expenditures were incurred at the district
104.27level or the school site level, and whether the school site expenditures were made possible
104.28by grants to school sites that demonstrate exemplary use of allocated staff development
104.29revenue. These expenditures must be reported using the uniform financial and accounting
104.30and reporting standards.
104.31(c) The commissioner shall report the staff development progress and expenditure
104.32data to the house of representatives and senate committees having jurisdiction over
104.33education by February 15 each year.
104.34EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
104.35later.

105.1    Sec. 21. Minnesota Statutes 2010, section 122A.61, subdivision 1, is amended to read:
105.2    Subdivision 1. Staff development revenue. A district is required to reserve
105.3an amount equal to at least two percent of the basic revenue under section 126C.10,
105.4subdivision 2 , for in-service education for programs under section 120B.22, subdivision 2,
105.5for with the primary purpose of creating and implementing district and school site staff
105.6development plans, including. Funds also may be used to support plans for challenging
105.7instructional activities and experiences under section 122A.60, and for curriculum
105.8development and programs, other in-service education, teachers' workshops, teacher
105.9conferences, the cost of substitute teachers staff development purposes, preservice and
105.10in-service education for special education professionals and paraprofessionals, and other
105.11related costs for staff development efforts. A district may annually waive the requirement
105.12to reserve their basic revenue under this section if a majority vote of the licensed teachers
105.13in the district and a majority vote of the school board agree to a resolution to waive the
105.14requirement. A district in statutory operating debt is exempt from reserving basic revenue
105.15according to this section. Districts may expend an additional amount of unreserved
105.16revenue for staff development based on their needs. With the exception of amounts
105.17reserved for staff development from revenues allocated directly to school sites, the board
105.18must initially allocate 50 percent of the reserved revenue to each school site in the district
105.19on a per teacher basis, which must be retained by the school site until used. The board may
105.20retain 25 percent to be used for district wide staff development efforts. The remaining
105.2125 percent of the revenue must be used to make grants to school sites for best practices
105.22methods. A grant may be used for any purpose authorized under section 120B.22,
105.23subdivision 2 , 122A.60, or for the costs of curriculum development and programs, other
105.24in-service education, teachers' workshops, teacher conferences, substitute teachers for
105.25staff development purposes, and other staff development efforts, and determined by
105.26the site professional development team. The site professional development team must
105.27demonstrate to the school board the extent to which staff at the site have met the outcomes
105.28of the program. The board may withhold a portion of initial allocation of revenue if the
105.29staff development outcomes are not being met.
105.30EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
105.31later.

105.32    Sec. 22. [122A.73] SCHOOL ADMINISTRATOR DEVELOPMENT.
105.33A school board and the school administrators in a district must collaboratively
105.34establish a professional development model for school administrators that uses the
105.35district's professional development resources and plans, including those under sections
106.1122A.414, if applicable, 122A.60, and 122A.61. The model must be designed to improve
106.2teaching and learning by supporting administrators in shaping the school's professional
106.3environment and developing teacher quality, performance, and effectiveness. The model
106.4must, at a minimum:
106.5(1) support and improve administrators' instructional leadership and organizational,
106.6management, and professional development; and strengthen their capacity in instruction
106.7and supervision and in teacher evaluation and development under section 122A.411;
106.8(2) provide professional development that emphasizes improved teaching and
106.9learning, curriculum and instruction, student learning, and a collaborative professional
106.10culture;
106.11(3) make appropriate recommendations for administrators to participate in
106.12development opportunities, including the Principals' Leadership Institute under section
106.13122A.74 and other statewide development programs that support administrators'
106.14leadership behaviors and practices, rigorous curriculum, school performance, and high
106.15quality instruction; and
106.16(4) use formative and summative assessments, on-the-job evaluations, surveys, and
106.17longitudinal data on student academic growth as evaluation components; and provide
106.18professional development opportunities targeted at identifying systemic strengths and
106.19weaknesses and administrators' strengths and weaknesses in exercising leadership in
106.20pursuit of school success.
106.21The provisions of this section are intended to provide districts with sufficient
106.22flexibility to accommodate district needs and goals, consistent with section 122A.411.
106.23EFFECTIVE DATE.This section is effective July 1, 2012.

106.24    Sec. 23. Minnesota Statutes 2010, section 123B.09, subdivision 8, is amended to read:
106.25    Subd. 8. Duties. The board must superintend and manage the schools of the
106.26district; adopt rules for their organization, government, and instruction; keep registers;
106.27and prescribe textbooks and courses of study. The board may enter into an agreement
106.28with a postsecondary institution for secondary or postsecondary nonsectarian courses
106.29to be taught at a secondary school, nonsectarian postsecondary institution, or another
106.30location. Consistent with section 122A.40, subdivision 10, or 122A.41, subdivision 14, as
106.31applicable, the board must not enter into an agreement that limits a district superintendent's
106.32ability to assign and reassign a teacher or administrator to a school to best meet student
106.33and school needs as determined by the superintendent.

106.34    Sec. 24. Minnesota Statutes 2010, section 123B.143, subdivision 1, is amended to read:
107.1    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
107.2school must employ a superintendent who shall be an ex officio nonvoting member of the
107.3school board. The authority for selection and employment of a superintendent must be
107.4vested in the board in all cases. An individual employed by a board as a superintendent
107.5shall have an initial employment contract for a period of time no longer than three years
107.6from the date of employment. Any subsequent employment contract must not exceed a
107.7period of three years. A board, at its discretion, may or may not renew an employment
107.8contract. A board must not, by action or inaction, extend the duration of an existing
107.9employment contract. Beginning 365 days prior to the expiration date of an existing
107.10employment contract, a board may negotiate and enter into a subsequent employment
107.11contract to take effect upon the expiration of the existing contract. A subsequent contract
107.12must be contingent upon the employee completing the terms of an existing contract. If a
107.13contract between a board and a superintendent is terminated prior to the date specified in
107.14the contract, the board may not enter into another superintendent contract with that same
107.15individual that has a term that extends beyond the date specified in the terminated contract.
107.16A board may terminate a superintendent during the term of an employment contract for any
107.17of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
107.18not rely upon an employment contract with a board to assert any other continuing contract
107.19rights in the position of superintendent under section 122A.40. Notwithstanding the
107.20provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
107.21to the contrary, no individual shall have a right to employment as a superintendent based
107.22on order of employment in any district. If two or more districts enter into an agreement for
107.23the purchase or sharing of the services of a superintendent, the contracting districts have
107.24the absolute right to select one of the individuals employed to serve as superintendent
107.25in one of the contracting districts and no individual has a right to employment as the
107.26superintendent to provide all or part of the services based on order of employment in a
107.27contracting district. The superintendent of a district shall perform the following:
107.28    (1) visit and supervise the schools in the district, report and make recommendations
107.29about their condition when advisable or on request by the board;
107.30    (2) recommend to the board employment and dismissal of teachers;
107.31    (3) before the start of the school year, and at other times as needed, assign highly
107.32effective, distinguished, and exemplary teachers, as defined in section 122A.411, to
107.33schools to best meet student and school needs as determined by the superintendent;
107.34(4) superintend school grading practices and examinations for promotions;
107.35    (4) (5) make reports required by the commissioner; and
107.36    (5) (6) perform other duties prescribed by the board.

108.1    Sec. 25. [124D.101] PERPICH CENTER FOR ARTS EDUCATION.
108.2    Subdivision 1. Charter school established. The Perpich Center for Arts Education
108.3may organize as a charter school consistent with section 124D.10.
108.4    Subd. 2. Sponsor. (a) Consistent with section 124D.10, subdivision 3, in order to
108.5organize as a charter school, the Perpich Center for Arts Education must attempt to find
108.6at least one qualified charter school authorizer that will authorize and serve as a charter
108.7school authorizer for the Perpich Center for Arts Education charter school.
108.8(b) If a qualified authorizer cannot be found, the Department of Education shall
108.9authorize the Perpich Center for Arts Education charter school. If a qualified authorizer
108.10is later found, the Department of Education may transfer authorization to the qualified
108.11authorizer under section 124D.10.
108.12    Subd. 3. State aid. The Perpich Center for Arts Education charter school is eligible
108.13for state charter school aid, including aid for start-up and operating costs, as provided
108.14in section 124D.11.
108.15EFFECTIVE DATE.This section is effective July 1, 2012.

108.16    Sec. 26. DISSOLUTION OF PERPICH CENTER FOR ARTS EDUCATION.
108.17(a) The Perpich Center for Arts Education is dissolved as a state agency.
108.18(b) Official state records held at the Perpich Center for Arts Education shall be
108.19transferred to the Department of Education.
108.20(c) Oversight of the facility occupied by the Perpich Center for Arts Education
108.21shall be transferred to the Department of Administration. If the Perpich Center for Arts
108.22Education organizes as a charter school under Minnesota Statutes, section 124D.10, the
108.23charter school shall have the right of first refusal to lease the building from the state.
108.24EFFECTIVE DATE.This section is effective July 1, 2012.

108.25    Sec. 27. APPRAISAL IMPLEMENTATION TIMELINE.
108.26Consistent with Minnesota Statutes, section 122A.411, districts and charter schools
108.27shall implement the teacher appraisal framework according to the following timeline:
108.28(1) in the 2011-2012 school year, develop an appraisal framework and a system
108.29to collect data;
108.30(2) in the 2012-2013 school year, implement the teacher appraisal framework and
108.31data collection system as a pilot program; and
108.32(3) beginning in the 2013-2014 school year, fully implement the teacher appraisal
108.33framework and data collection system.
109.1EFFECTIVE DATE.This section is effective the day following final enactment.

109.2    Sec. 28. EFFECT OF TEACHER DIVERSITY ON STUDENT ACHIEVEMENT.
109.3(a) The commissioner of education shall report on the impact that a culturally,
109.4racially, and ethnically diverse teaching faculty has on the educational outcomes of
109.5minority students, including academic performance, graduation rates, and participation in
109.6postsecondary programs. The study must control for the level of teacher effectiveness.
109.7(b) The commissioner of education also shall evaluate and report on school district
109.8practices for recruiting a culturally, racially, and ethnically diverse teaching faculty.
109.9(c) The commissioner must submit the reports under paragraphs (a) and (b) to the
109.10education policy and finance committees of the legislature by February 1, 2015.
109.11EFFECTIVE DATE.This section is effective July 1, 2013. The study in paragraph
109.12(a) may not begin until after the 2013-2014 school year.

109.13    Sec. 29. ADVISORY TASK FORCE ON IMPLEMENTING TEACHER
109.14EVALUATION STRUCTURE.
109.15Consistent with Minnesota Statutes, section 122A.411, and related sections, the
109.16commissioner of education shall convene an 11-member advisory task force to make
109.17recommendations related to implementing the state's teacher evaluation structure. Task
109.18force members shall include: one representative each from the Minnesota Chamber of
109.19Commerce, the Minnesota Business Partnership, the Minnesota Assessment Group,
109.20the Minnesota Association of School Administrators, the Minnesota Elementary and
109.21Secondary School Principals Association, the Minnesota School Boards Association, and
109.22the Minnesota Association of Charter Schools appointed by the respective organization;
109.23two representatives from Education Minnesota, one of whom must be a currently
109.24licensed classroom teacher teaching in a first class city school district, appointed by
109.25Education Minnesota; and two parents of students currently enrolled in Minnesota public
109.26schools, one of whom must be a parent of color, appointed by the Minnesota Parent
109.27Teacher Organization. The commissioner or the commissioner's designee shall serve as
109.28a nonvoting member of the task force and shall provide technical assistance to the task
109.29force upon request. The task force must review the statutory sections that compose this act
109.30and recommend to the commissioner any changes needed to fully implement the teacher
109.31evaluation structure, including statutory changes to accomplish the recommendations. The
109.32commissioner must report the task force recommendations to the education policy and
109.33finance committees of the legislature by February 15, 2012. The advisory task force
109.34expires June 1, 2012.
110.1EFFECTIVE DATE.This section is effective the day following final enactment.

110.2    Sec. 30. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
110.3    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
110.4indicated in this section are appropriated from the general fund to the Department of
110.5Education for the fiscal years designated.
110.6    Subd. 2. Department. (a) For the Department of Education:

110.7		$	14,185,000	.....	2012
110.8		$	14,185,000	.....	2013

110.9Any balance in the first year does not cancel but is available in the second year.
110.10(b) $260,000 each year is for the Minnesota Children's Museum.
110.11(c) $41,000 each year is for the Minnesota Academy of Science.
110.12(d) $600,000 each year is for the Board of Teaching. Any balance in the first year
110.13does not cancel but is available in the second year.
110.14(e) $162,000 each year is for the Board of School Administrators. Any balance in
110.15the first year does not cancel but is available in the second year.
110.16(f) The expenditures of federal grants and aids as shown in the biennial budget
110.17document and its supplements are approved and appropriated and shall be spent as
110.18indicated.
110.19(g) $38,000 each year is for an early hearing loss intervention coordinator under
110.20Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
110.21funds to employ a hearing loss coordinator under Minnesota Statutes, section 125A.63,
110.22subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
110.23employing a world languages coordinator.
110.24(h) $50,000 each year is for the Duluth Children's Museum.
110.25    Subd. 3. Board of Teaching. From the education licensure portfolio account in the
110.26special revenue fund to the Board of Teaching for licensure by portfolio:

110.27		$	30,000	.....	2012
110.28		$	30,000	.....	2013

110.29    Sec. 31. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
110.30The sums indicated in this section are appropriated from the general fund to the
110.31Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

110.32		$	11,603,000	.....	2012
110.33		$	11,603,000	.....	2013

111.1Any balance in the first year does not cancel but is available in the second year.

111.2    Sec. 32. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
111.3The sums in this section are appropriated from the general fund to the Perpich
111.4Center for Arts Education for the fiscal years designated:

111.5		$	7,087,000	.....	2012
111.6		$	2,721,000	.....	2013

111.7After the conclusion of the 2011-2012 school year, the fiscal year 2013 appropriation
111.8is available for immediate transfer to the Department of Administration or the Department
111.9of Management and Budget in order to administer severance payments and oversee
111.10the closing of the Perpich Center for Arts Education as a state agency. The fiscal year
111.112013 appropriation includes $2,275,000 for severance payments, $336,000 for facility
111.12maintenance, and $110,000 for the sale of the property, which is available until expended.

111.13    Sec. 33. REPEALER.
111.14Minnesota Statutes 2010, sections 129C.10, subdivisions 1, 2, 3, 3a, 4, 6, 7, and 8;
111.15129C.105; 129C.15; 129C.20; 129C.25; and 129C.26, are repealed July 1, 2012.


111.19    Section 1. Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by
111.20Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:
111.21    Subd. 2. General education aid. For general education aid under Minnesota
111.22Statutes, section 126C.13, subdivision 4:

111.23		$	4,291,422,000	.....	2010
111.24 111.25		$	4,776,884,000 4,832,264,000	.....	2011

111.26The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for
111.272010.
111.28The 2011 appropriation includes $1,363,306,000 for 2010 and $3,413,578,000
111.29$3,468,958,000 for 2011.

111.30    Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:
112.1    Subd. 3. Enrollment options transportation. For transportation of pupils attending
112.2postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
112.3of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

112.4		$	48,000	.....	2010
112.5 112.6		$	52,000 29,000	.....	2011

112.7    Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by
112.8Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:
112.9    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
112.10127A.49 :

112.11		$	1,000,000	.....	2010
112.12 112.13		$	1,132,000 1,127,000	.....	2011

112.14The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.
112.15The 2011 appropriation includes $317,000 for 2010 and $815,000 $810,000 for 2011.

112.16    Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by
112.17Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:
112.18    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
112.19Statutes, section 123A.485:

112.20		$	684,000	.....	2010
112.21 112.22		$	576,000 593,000	.....	2011

112.23The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.
112.24The 2011 appropriation includes $252,000 for 2010 and $324,000 $341,000 for 2011.

112.25    Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by
112.26Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:
112.27    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
112.28Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

112.29		$	12,861,000	.....	2010
112.30 112.31		$	16,157,000 16,213,000	.....	2011

112.32The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.
112.33The 2011 appropriation includes $4,362,000 for 2010 and $11,795,000 $11,851,000
112.34for 2011.

113.1    Sec. 6. Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by
113.2Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:
113.3    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
113.4under Minnesota Statutes, section 123B.92, subdivision 9:

113.5		$	17,297,000	.....	2010
113.6 113.7		$	19,729,000 19,387,000	.....	2011

113.8The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.
113.9The 2011 appropriation includes $5,629,000 for 2010 and $14,100,000 $13,758,000
113.10for 2011.

113.12    Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by
113.13Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:
113.14    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
113.15Statutes, section 124D.11, subdivision 4:

113.16		$	34,833,000	.....	2010
113.17 113.18		$	44,938,000 42,633,000	.....	2011

113.19The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.
113.20The 2011 appropriation includes $11,513,000 for 2010 and $33,425,000 $31,120,000
113.21for 2011.

113.22    Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by
113.23Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:
113.24    Subd. 3. Charter school startup aid. For charter school startup cost aid under
113.25Minnesota Statutes, section 124D.11:

113.26		$	1,218,000	.....	2010
113.27 113.28		$	743,000 654,000	.....	2011

113.29The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.
113.30The 2011 appropriation includes $375,000 for 2010 and $368,000 $279,000 for 2011.

113.31    Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by
113.32Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:
113.33    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
113.34124D.86, subdivision 5 :

114.1		$	50,812,000	.....	2010
114.2 114.3		$	61,782,000 61,604,000	.....	2011

114.4The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.
114.5The 2011 appropriation includes $16,636,000 for 2010 and $45,146,000 $44,968,000
114.6for 2011.

114.7    Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:
114.8    Subd. 6. Interdistrict desegregation or integration transportation grants. For
114.9interdistrict desegregation or integration transportation grants under Minnesota Statutes,
114.10section 124D.87:

114.11		$	14,468,000	.....	2010
114.12 114.13		$	17,582,000 13,393,000	.....	2011

114.14    Sec. 11. Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by
114.15Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:
114.16    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
114.17Statutes, section 124D.83:

114.18		$	1,702,000	.....	2010
114.19 114.20		$	2,119,000 1,958,000	.....	2011

114.21The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.
114.22The 2011 appropriation includes $558,000 for 2010 and $1,561,000 $1,400,000
114.23for 2011.

114.25    Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:
114.26    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
114.27section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
114.28within the district boundaries for whom no district of residence can be determined:

114.29		$	1,717,000	.....	2010
114.30 114.31		$	1,895,000 1,554,000	.....	2011

114.32If the appropriation for either year is insufficient, the appropriation for the other
114.33year is available.

115.1    Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by
115.2Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:
115.3    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
115.4services under Minnesota Statutes, section 125A.75, subdivision 1:

115.5		$	224,000	.....	2010
115.6 115.7		$	282,000 324,000	.....	2011

115.8The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.
115.9The 2011 appropriation includes $73,000 for 2010 and $209,000 $251,000 for 2011.

115.11    Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by
115.12Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:
115.13    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
115.14Minnesota Statutes, section 123B.591, subdivision 4:

115.15		$	1,918,000	.....	2010
115.16 115.17		$	2,146,000 2,191,000	.....	2011

115.18The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.
115.19The 2011 appropriation includes $613,000 for 2010 and $1,533,000 $1,578,000
115.20for 2011.

115.22    Sec. 15. Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:
115.23    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
115.24section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

115.25		$	12,688,000	.....	2010
115.26 115.27		$	13,069,000 12,378,000	.....	2011

115.28    Sec. 16. Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:
115.29    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
115.30Statutes, section 124D.1158:

115.31		$	4,978,000	.....	2010
115.32 115.33		$	5,147,000 4,646,000	.....	2011

116.1    Sec. 17. Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by
116.2Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:
116.3    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
116.4section 124D.118:

116.5		$	1,104,000	.....	2010
116.6 116.7		$	1,126,000 1,063,000	.....	2011

116.10    Sec. 18. Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by
116.11Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:
116.12    Subd. 3. Early childhood family education aid. For early childhood family
116.13education aid under Minnesota Statutes, section 124D.135:

116.14		$	19,005,000	.....	2010
116.15 116.16		$	21,460,000 21,177,000	.....	2011

116.17The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.
116.18The 2011 appropriation includes $5,911,000 for 2010 and $15,549,000 $15,266,000
116.19for 2011.

116.20    Sec. 19. Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by
116.21Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:
116.22    Subd. 4. Health and developmental screening aid. For health and developmental
116.23screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

116.24		$	2,922,000	.....	2010
116.25 116.26		$	3,425,000 3,434,000	.....	2011

116.27The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.
116.28The 2011 appropriation includes $945,000 for 2010 and $2,480,000 $2,489,000
116.29for 2011.

116.30    Sec. 20. Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by
116.31Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:
116.32    Subd. 8. Community education aid. For community education aid under
116.33Minnesota Statutes, section 124D.20:

117.1		$	476,000	.....	2010
117.2 117.3		$	473,000 463,000	.....	2011

117.4The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.
117.5The 2011 appropriation included $148,000 for 2010 and $325,000 $315,000 for
117.62011.

117.7    Sec. 21. Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by
117.8Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:
117.9    Subd. 12. Adult basic education aid. For adult basic education aid under
117.10Minnesota Statutes, section 124D.531:

117.11		$	35,671,000	.....	2010
117.12 117.13		$	42,732,000 42,829,000	.....	2011

117.14The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.
117.15The 2011 appropriation includes $11,644,000 for 2010 and $31,088,000 $31,185,000
117.16for 2011."
117.17Delete the title and insert:
117.19relating to education; providing for policy and funding for family, adult, and
117.20prekindergarten through grade 12 education including general education,
117.21academic excellence, special education, facilities and technology, nutrition and
117.22accounting, libraries, early childhood education, prevention, self-sufficiency and
117.23lifelong learning, state agencies, and forecast adjustments; requiring reports;
117.24requiring studies; appropriating money;amending Minnesota Statutes 2010,
117.25sections 13D.02, by adding a subdivision; 16A.152, subdivision 2; 93.22,
117.26subdivision 1; 93.2236; 120A.41; 120B.023, subdivision 2; 120B.07; 120B.30,
117.27subdivision 1, by adding a subdivision; 120B.35, subdivision 1; 120B.36,
117.28subdivision 1; 122A.40, subdivisions 5, 6, 7, 8, 9, 10, 11, by adding subdivisions;
117.29122A.41, subdivisions 2, 3, 4, 5, 6, 14, by adding a subdivision; 122A.414,
117.30subdivisions 1a, 2, 2a, 2b, 4; 122A.416; 122A.60; 122A.61, subdivision
117.311; 123A.55; 123B.02, subdivision 15; 123B.09, subdivision 8; 123B.143,
117.32subdivision 1; 123B.54; 123B.59, subdivision 5; 123B.75, subdivision 5;
117.33124D.15, subdivision 3a; 124D.19, subdivision 3; 124D.531, subdivision 1;
117.34124D.86, subdivision 3; 125A.07; 125A.21, subdivisions 2, 3, 5, 7; 125A.515,
117.35by adding a subdivision; 125A.69, subdivision 1; 125A.76, subdivision 1;
117.36125A.79, subdivision 1; 126C.10, subdivisions 1, 2, 2a, 3, 7, 8, 8a, 13a, 14, by
117.37adding a subdivision; 126C.126; 126C.20; 126C.40, subdivision 1; 126C.44;
117.38127A.33; 127A.441; 127A.45, subdivision 2; 179A.16, subdivision 1; 179A.18,
117.39subdivisions 1, 3; 298.28, subdivisions 2, 4; Laws 2009, chapter 79, article 5,
117.40section 60, as amended; Laws 2009, chapter 96, article 1, section 24, subdivisions
117.412, as amended, 3, 4, as amended, 5, as amended, 6, as amended, 7, as amended;
117.42article 2, section 67, subdivisions 2, as amended, 3, as amended, 4, as amended,
117.436, 9, as amended; article 3, section 21, subdivisions 3, 4, as amended; article 4,
117.44section 12, subdivision 6, as amended; article 5, section 13, subdivisions 2, 3, 4,
117.45as amended; article 6, section 11, subdivisions 3, as amended, 4, as amended,
117.468, as amended, 12, as amended; proposing coding for new law in Minnesota
117.47Statutes, chapters 120B; 122A; 124D; 179A; proposing coding for new law as
118.1Minnesota Statutes, chapter 119C; repealing Minnesota Statutes 2010, sections
118.2122A.61; 123B.05; 123B.59, subdivisions 6, 7; 124D.86, subdivisions 1, 1a,
118.32, 4, 5, 6; 126C.10, subdivision 5; 127A.46; 129C.10, subdivisions 1, 2, 3,
118.43a, 4, 6, 7, 8; 129C.105; 129C.15; 129C.20; 129C.25; 129C.26; 179A.18,
118.5subdivision 2; Laws 2009, chapter 88, article 12, section 23; Minnesota Rules,
118.6parts 3535.0100; 3535.0110; 3535.0120; 3535.0130; 3535.0140; 3535.0150;
118.73535.0160; 3535.0170; 3535.0180."