1.1.................... moves to amend H.F. No. 2949 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read:
1.4120B.07 EARLY GRADUATION.
1.5(a) Notwithstanding any law to the contrary, any secondary school student who has
1.6completed all required courses or standards may, with the approval of the student, the
1.7student's parent or guardian, and local school officials, graduate before the completion
1.8of the school year.
1.9(b) General education revenue attributable to the student must be paid as though
1.10the student was in attendance for the entire year unless the student participates in the
1.11early graduation achievement scholarship program under section 120B.08 or the early
1.12graduation military service award program under section 120B.09.
1.13EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

1.14    Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read:
1.15120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
1.16PROGRAM.
1.17    Subdivision 1. Participation. A student who qualifies for early graduation under
1.18section 120B.07, who meets the criteria in subdivision 1a and who has not participated in
1.19the early graduation military service award program under section 120B.09, is eligible to
1.20participate in the early graduation achievement scholarship program.
1.21    Subd. la. Eligible student. For purposes of this section, an eligible student is a
1.22secondary student enrolled in a Minnesota public school who, at the time of graduation,
1.23generated Minnesota general education revenue and who graduates prior to the end of the
1.24fourth school year after first enrolling in ninth grade.
2.1    Subd. 2. Scholarship amounts. A student who participates in the early graduation
2.2achievement scholarship program is eligible for a scholarship of $2,500 if the student
2.3qualifies for graduation graduates one semester or two trimesters early, $5,000 if the
2.4student qualifies for graduation graduates two semesters or three or four trimesters early,
2.5or $7,500 if the student qualifies for graduation graduates three or more semesters or five
2.6or more trimesters early. Participation in the optional summer term, extended day sessions,
2.7and intersessions of a state-approved learning year program under section 124D.128 are
2.8considered a quarter for purposes of computing scholarship amounts.
2.9    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
2.10used at any accredited institution of higher education accredited by an accrediting agency
2.11recognized by the United States Department of Education.
2.12    Subd. 4. Application. A qualifying student may apply to the commissioner of
2.13education for an early graduation achievement scholarship. The application must be in the
2.14form and manner specified by the commissioner and must be received at the department
2.15within two calendar years of the date of graduation. Upon verification of the qualifying
2.16student's course completion necessary for graduation, the department must issue the
2.17student a certificate showing the student's scholarship amount.
2.18    Subd. 5. Enrollment verification. A student who qualifies under this section
2.19and enrolls in an accredited higher education institution must submit a form to the
2.20commissioner verifying the student's enrollment in the higher education institution and the
2.21tuition charges for that semester. Within 15 45 days of receipt of a student's enrollment
2.22and tuition verification form, the commissioner must issue a scholarship check to the
2.23student higher education institution in the lesser of the tuition amount for that semester
2.24or the maximum amount of the student's early graduation achievement scholarship. A
2.25student may continue to submit enrollment verification forms to the commissioner until
2.26the student has used the full amount of the student's graduation achievement scholarship or
2.27six years from the date of the student's graduation, whichever occurs first. The scholarship
2.28cannot be renewed.
2.29    Subd. 6. General education money transferred. The commissioner must transfer
2.30the amounts necessary to fund the early graduation achievement scholarships from the
2.31general education aid appropriation for that year.
2.32EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

2.33    Sec. 3. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read:
2.34120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM.
3.1    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means a
3.2secondary student enrolled in any Minnesota public school who, at the time of graduation,
3.3generated Minnesota general education revenue, who qualifies for early graduation under
3.4section 120B.07, who graduated prior to the end of the fourth school year after first
3.5enrolling in ninth grade, who has not participated in the early graduation achievement
3.6scholarship program under section 120B.08, and who, before the end of the calendar
3.7year of the student's graduation, enters into active service in either the active or reserve
3.8component of the United States armed forces and deploys for 60 days or longer to a
3.9military base or installation outside Minnesota for the purpose of attending basic military
3.10training or military school and, if required by the military, performing other military duty.
3.11The active service may be in accordance with United States Code, title 10 or title 32.
3.12    Subd. 2. Application. An eligible person may apply to the commissioner of
3.13education for an early graduation military service bonus. The application must be in the
3.14form and manner specified by the commissioner and must be received at the department
3.15within one calendar year of the date of graduation.
3.16    Subd. 3. Verification and award. The request for payment must be received at
3.17the department by the end of the fiscal year following the fiscal year in which the student
3.18graduated. Upon verification of the qualifying student's course completion necessary for
3.19graduation and eligibility for the military service bonus, the commissioner must issue
3.20payment to that person. Payment amounts must be determined according to section
3.21120B.08, subdivision 2 . Once the original amount of the award has been paid, it cannot be
3.22renewed.
3.23EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

3.24    Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.36, subdivision 1, is
3.25amended to read:
3.26    Subdivision 1. School performance report cards. (a) The commissioner
3.27shall report student academic performance under section 120B.35, subdivision 2; the
3.28percentages of students showing low, medium, and high growth under section 120B.35,
3.29subdivision 3 , paragraph (b); school safety and student engagement and connection
3.30under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
3.31120B.35, subdivision 3 , paragraph (c); two separate student-to-teacher ratios that clearly
3.32indicate the definition of teacher consistent with sections 122A.06 and 122A.15 for
3.33purposes of determining these ratios; staff characteristics excluding salaries; student
3.34enrollment demographics; district mobility; and extracurricular activities. The report also
3.35must indicate a school's adequate yearly progress status, and must not set any designations
4.1applicable to high- and low-performing schools due solely to adequate yearly progress
4.2status.
4.3    (b) The commissioner shall develop, annually update, and post on the department
4.4Web site school performance report cards as described in paragraph (f).
4.5    (c) The commissioner must make available performance report cards by the
4.6beginning of each school year.
4.7    (d) A school or district may appeal its adequate yearly progress status in writing to
4.8the commissioner within 30 days of receiving the notice of its status. The commissioner's
4.9decision to uphold or deny an appeal is final.
4.10    (e) School performance report card data are nonpublic data under section 13.02,
4.11subdivision 9 , until the commissioner publicly releases the data. The commissioner shall
4.12annually post school performance report cards to the department's public Web site no later
4.13than September 1, except that in years when the report card reflects new performance
4.14standards, the commissioner shall post the school performance report cards no later than
4.15October 1.
4.16(f) The commissioner, for each school district and each school required to report
4.17under this subdivision, must at least:
4.18(1) title the commissioner's report "School Performance Report Card";
4.19(2) display all required information on a single, easily accessible and understood
4.20Web page;
4.21(3) using longitudinal data to display results over time, compare and display
4.22corresponding state and local indicators on student proficiency in reading and math by
4.23grade, school and district value-added ratings, the number and percentage of schools and
4.24districts making or not making adequate yearly progress by student categories, a state and
4.25local growth-based performance index, a school or district identified for improvement
4.26and years in improvement status, and state and local attendance and graduation rates
4.27by student categories; and
4.28(4) display any accountability measures or ratings required by federal law or a
4.29federally-approved waiver of that law.
4.30EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
4.31later.

4.32    Sec. 5. Minnesota Statutes 2010, section 122A.61, subdivision 1, is amended to read:
4.33    Subdivision 1. Staff development revenue. A district is required to reserve
4.34an amount equal to at least two percent of the basic revenue under section 126C.10,
4.35subdivision 2 , for in-service education for programs under section 120B.22, subdivision
5.12 , for staff development plans, including plans for challenging instructional activities
5.2and experiences under section 122A.60, and for curriculum development and programs,
5.3other in-service education, teachers' workshops, teacher conferences, the cost of
5.4substitute teachers staff development purposes, preservice and in-service education for
5.5special education professionals and paraprofessionals, and other related costs for staff
5.6development efforts. A district may annually waive the requirement to reserve their basic
5.7revenue under this section if a majority vote of the licensed teachers in the district and
5.8a majority vote of the school board agree to a resolution to waive the requirement. A
5.9district in statutory operating debt is exempt from reserving basic revenue according to
5.10this section. Districts may expend an additional amount of unreserved revenue for staff
5.11development based on their needs. With the exception of amounts reserved for staff
5.12development from revenues allocated directly to school sites, the board must initially
5.13allocate 50 percent of the reserved revenue to each school site in the district on a per
5.14teacher basis, which must be retained by the school site until used. The board may
5.15retain 25 percent to be used for district wide staff development efforts. The remaining
5.1625 percent of the revenue must be used to make grants to school sites for best practices
5.17methods. A grant may be used for any purpose authorized under section 120B.22,
5.18subdivision 2 , 122A.60, or for the costs of curriculum development and programs, other
5.19in-service education, teachers' workshops, teacher conferences, substitute teachers for
5.20staff development purposes, and other staff development efforts, and determined by
5.21the site professional development team. The site professional development team must
5.22demonstrate to the school board the extent to which staff at the site have met the outcomes
5.23of the program. The board may withhold a portion of initial allocation of revenue if the
5.24staff development outcomes are not being met.
5.25EFFECTIVE DATE.This section is effective July 1, 2012.

5.26    Sec. 6. [123B.022] PROHIBITIONS ON POLITICAL ACTIVITIES BY PUBLIC
5.27SCHOOL EMPLOYEES.
5.28Local school boards shall develop and implement policies to ensure that publicly
5.29funded resources, including but not limited to time, materials, equipment, facilities, and
5.30e-mail and other forms of technology used to communicate are not used or authorized
5.31for use by public employees to:
5.32(1) advocate the election or defeat of any candidate for elective office;
5.33(2) advocate the passage or defeat of any referendum question; or
5.34(3) solicit funds for political purposes.
6.1Such policies shall not prohibit public employees from engaging in political activities
6.2except when they are performing duties assigned to them under their employment contract
6.3with the district or representing their employer in an official capacity.
6.4Such policies shall not prohibit the use of public funds for disseminating factual
6.5information about a proposition appearing on a local ballot, if such information is factual
6.6and does not advocate for or against the proposition.
6.7All school districts must make these policies readily accessible to the public in paper
6.8copy at the district office or on the district Web site.
6.9EFFECTIVE DATE.This section is effective the day following final enactment.

6.10    Sec. 7. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 5, is
6.11amended to read:
6.12    Subd. 5. Authorization; notification. (a) Notwithstanding any other law to the
6.13contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled
6.14tribal contract or grant school eligible for aid under section 124D.83, except a foreign
6.15exchange pupil enrolled in a district under a cultural exchange program, may apply to an
6.16eligible institution, as defined in subdivision 3, to enroll in nonsectarian academic and
6.17career and technical courses offered by that postsecondary institution.
6.18(b) Notwithstanding any other law to the contrary, a 9th or 10th grade pupil enrolled
6.19in a district or an American Indian-controlled tribal contract or grant school eligible for
6.20aid under section 124D.83, except a foreign exchange pupil enrolled in a district under a
6.21cultural exchange program, may apply to enroll in nonsectarian academic and career and
6.22technical courses offered under subdivision 10, if after all 11th and 12th grade students
6.23have applied for a course, additional students are necessary to offer the course.
6.24(c) If an institution accepts a secondary pupil for enrollment under this section, the
6.25institution shall send written notice to the pupil, the pupil's school or school district, and
6.26the commissioner within ten days of acceptance. The notice must indicate the course
6.27and hours of enrollment of that pupil. If the pupil enrolls in a course for postsecondary
6.28credit, the institution must notify the pupil about payment in the customary manner used
6.29by the institution.
6.30EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
6.31later.

6.32    Sec. 8. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read:
7.1    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to
7.2its postsecondary students when enrolling 11th and 12th grade pupils in its courses. A
7.3postsecondary institution may provide information about its programs to a secondary
7.4school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit
7.5the participation of secondary pupils to enroll in its programs on financial grounds.
7.6An institution must not enroll secondary pupils, for postsecondary enrollment options
7.7purposes, in remedial, developmental, or other courses that are not college level. Once a
7.8pupil has been enrolled in a postsecondary course under this section, the pupil shall not
7.9be displaced by another student.

7.10    Sec. 9. Minnesota Statutes 2010, section 124D.09, subdivision 10, is amended to read:
7.11    Subd. 10. Courses according to agreements. (a) An eligible pupil, according to
7.12subdivision 5, may enroll in a nonsectarian academic or career and technical course taught
7.13by a secondary teacher or a postsecondary faculty member and offered at a secondary
7.14school, or another location, according to an agreement between a public school board and
7.15the governing body of an eligible public postsecondary system or an eligible private
7.16postsecondary institution, as defined in subdivision 3. All provisions of this section shall
7.17apply to a pupil, public school board, district, and the governing body of a postsecondary
7.18institution, except as otherwise provided.
7.19(b) Participating public school boards, districts, and eligible institutions may enter
7.20into an academic and career and technical education joint partnership with local or regional
7.21businesses or other entrepreneurs to help interested students pursue both academic and
7.22career and technical courses leading to an industry credential and a successful transition to
7.23postsecondary career and college education.
7.24EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
7.25later.

7.26    Sec. 10. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read:
7.27    Subd. 12. Credits. A pupil may enroll in a course under this section for either
7.28secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil
7.29shall designate whether the course is for secondary or postsecondary credit. A pupil taking
7.30several courses may designate some for secondary credit and some for postsecondary
7.31credit. A pupil must not audit a course under this section.
7.32A district shall grant academic credit to a pupil enrolled in a course for secondary
7.33credit if the pupil successfully completes the course. Seven quarter or four semester
7.34college credits equal at least one full year of high school credit. Fewer college credits may
8.1be prorated. A district must also grant academic credit to a pupil enrolled in a course for
8.2postsecondary credit if secondary credit is requested by a pupil. If no comparable course is
8.3offered by the district, the district must, as soon as possible, notify the commissioner, who
8.4shall determine the number of credits that shall be granted to a pupil who successfully
8.5completes a course. If a comparable course is offered by the district, the school board
8.6shall grant a comparable number of credits to the pupil. If there is a dispute between the
8.7district and the pupil regarding the number of credits granted for a particular course, the
8.8pupil may appeal the board's decision to the commissioner. The commissioner's decision
8.9regarding the number of credits shall be final.
8.10The secondary credits granted to a pupil must be counted toward the graduation
8.11requirements and subject area requirements of the district. Evidence of successful
8.12completion of each course and secondary credits granted must be included in the pupil's
8.13secondary school record. A pupil shall provide the school with a copy of the pupil's grade
8.14in each course taken for secondary credit under this section. Upon the request of a pupil,
8.15the pupil's secondary school record must also include evidence of successful completion
8.16and credits granted for a course taken for postsecondary credit. In either case, the record
8.17must indicate that the credits were earned at a postsecondary institution.
8.18If a pupil enrolls in a postsecondary institution after leaving secondary school, the
8.19postsecondary institution must award postsecondary credit for any course successfully
8.20completed for secondary credit at that institution. Other postsecondary institutions may
8.21award, after a pupil leaves secondary school, postsecondary credit for any courses
8.22successfully completed under this section. An institution may not charge a pupil for
8.23the award of credit.
8.24The Board of Trustees of the Minnesota State Colleges and Universities and
8.25the Board of Regents of the University of Minnesota must, and private nonprofit and
8.26proprietary postsecondary institutions should, award postsecondary credit for any
8.27successfully completed courses in a program certified by the National Alliance of
8.28Concurrent Enrollment Partnerships offered according to an agreement under subdivision
8.2910.

8.30    Sec. 11. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read:
8.31    Subd. 24. Limit; state obligation. The provisions of subdivisions 13, 19, and
8.3222, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in
8.33addition to being enrolled full time in that pupil's district or for any postsecondary course
8.34in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if
9.1the pupil attends credit-bearing classes in the high school or high school program for
9.2all of the available hours of instruction.
9.3EFFECTIVE DATE.This section is effective for the 2012-2013 school year and
9.4later.

9.5    Sec. 12. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read:
9.6126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
9.7ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
9.8    (a) In order to provide additional revenue for an optional all-day kindergarten
9.9program, a district may reallocate general education revenue attributable to 12th grade
9.10students who have graduated early under section 120B.07 and who do not participate in
9.11the early graduation achievement scholarship program under section 120B.08 or the early
9.12graduation military service award program under section 120B.09.
9.13    (b) A school district may spend general education revenue on extended time
9.14kindergarten and prekindergarten programs.

9.15    Sec. 13. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is
9.16amended to read:
9.17    Subdivision 1. To lease building or land. (a) When an independent or a special
9.18school district or a group of independent or special school districts finds it economically
9.19advantageous to rent or lease a building or land for any instructional purposes or for
9.20school storage or furniture repair, and it determines that the operating capital revenue
9.21authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
9.22apply to the commissioner for permission to make an additional capital expenditure levy
9.23for this purpose. An application for permission to levy under this subdivision must contain
9.24financial justification for the proposed levy, the terms and conditions of the proposed
9.25lease, and a description of the space to be leased and its proposed use.
9.26    (b) The criteria for approval of applications to levy under this subdivision must
9.27include: the reasonableness of the price, the appropriateness of the space to the proposed
9.28activity, the feasibility of transporting pupils to the leased building or land, conformity
9.29of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
9.30the proposed lease to the space needs and the financial condition of the district. The
9.31commissioner must not authorize a levy under this subdivision in an amount greater than
9.32the cost to the district of renting or leasing a building or land for approved purposes.
9.33The proceeds of this levy must not be used for custodial or other maintenance services.
10.1A district may not levy under this subdivision for the purpose of leasing or renting a
10.2district-owned building or site to itself.
10.3    (c) For agreements finalized after July 1, 1997, a district may not levy under this
10.4subdivision for the purpose of leasing: (1) a newly constructed building used primarily
10.5for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
10.6building addition or additions used primarily for regular kindergarten, elementary, or
10.7secondary instruction that contains more than 20 percent of the square footage of the
10.8previously existing building.
10.9    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
10.10purpose of leasing or renting a district-owned building or site to itself only if the amount
10.11is needed by the district to make payments required by a lease purchase agreement,
10.12installment purchase agreement, or other deferred payments agreement authorized by law,
10.13and the levy meets the requirements of paragraph (c). A levy authorized for a district by
10.14the commissioner under this paragraph may be in the amount needed by the district to
10.15make payments required by a lease purchase agreement, installment purchase agreement,
10.16or other deferred payments agreement authorized by law, provided that any agreement
10.17include a provision giving the school districts the right to terminate the agreement
10.18annually without penalty.
10.19    (e) The total levy under this subdivision for a district for any year must not exceed
10.20$150 times the resident pupil units for the fiscal year to which the levy is attributable.
10.21    (f) For agreements for which a review and comment have been submitted to the
10.22Department of Education after April 1, 1998, the term "instructional purpose" as used in
10.23this subdivision excludes expenditures on stadiums.
10.24    (g) The commissioner of education may authorize a school district to exceed the
10.25limit in paragraph (e) if the school district petitions the commissioner for approval. The
10.26commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
10.27for not more than five years if the district meets the following criteria:
10.28    (1) the school district has been experiencing pupil enrollment growth in the
10.29preceding five years;
10.30    (2) the purpose of the increased levy is in the long-term public interest;
10.31    (3) the purpose of the increased levy promotes colocation of government services;
10.32and
10.33    (4) the purpose of the increased levy is in the long-term interest of the district by
10.34avoiding over construction of school facilities.
10.35    (h) A school district that is a member of an intermediate school district may include
10.36in its authority under this section the costs associated with leases of administrative and
11.1classroom space for intermediate school district programs. This authority must not exceed
11.2$43 times the adjusted marginal cost pupil units of the member districts. This authority is
11.3in addition to any other authority authorized under this section.
11.4    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
11.52012, a district that is a member of the "Technology and Information Education Systems"
11.6data processing joint board, that finds it economically advantageous to enter into a lease
11.7agreement to finance improvements to a building for a group of school districts or special
11.8school districts for staff development purposes, may levy for its portion of lease costs
11.9attributed to the district within the total levy limit in paragraph (e). The total levy authority
11.10under this paragraph shall not exceed $632,000.
11.11(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
11.12purpose of leasing administrative space if the district can demonstrate to the satisfaction of
11.13the commissioner that the lease cost for the administrative space is no greater than the
11.14lease cost for instructional space that the district would otherwise lease. The commissioner
11.15must deny this levy authority unless the district passes a resolution stating its intent to
11.16lease instructional space under this section if the commissioner does not grant authority
11.17under this paragraph. The resolution must also certify that the lease cost for administrative
11.18space under this paragraph is no greater than the lease cost for the district's proposed
11.19instructional lease.

11.20    Sec. 14. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read:
11.21    Subdivision 1. Requirements for participation. To participate in the postsecondary
11.22enrollment options program, a college or university must abide by the provisions in this
11.23section. The institution may provide information about its programs to a secondary school
11.24or to a pupil or parent, but may not recruit or solicit participation on financial grounds.

11.25    Sec. 15. Minnesota Statutes 2010, section 471.975, is amended to read:
11.26471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.
11.27(a) Except as provided in paragraph (b), a statutory or home rule charter city, county,
11.28town, or other political subdivision may pay to each eligible member of the National
11.29Guard or other reserve component of the armed forces of the United States an amount
11.30equal to the difference between the member's base active duty military salary and the
11.31salary the member would be paid as an active political subdivision employee, including
11.32any adjustments the member would have received if not on leave of absence. This
11.33payment may be made only to a person whose base active duty military salary is less than
11.34the salary the person would be paid as an active political subdivision employee. Back pay
12.1authorized by this section may be paid in a lump sum. Payment under this section must
12.2not extend beyond four years from the date the employee reported for active service, plus
12.3any additional time the employee may be legally required to serve.
12.4(b) Subject to the limits under paragraph (g), each school district shall pay to each
12.5eligible member of the National Guard or other reserve component of the armed forces
12.6of the United States an amount equal to the difference between the member's base active
12.7duty military salary and the salary the member would be paid as an active school district
12.8employee, including any adjustments the member would have received if not on leave
12.9of absence. The pay differential must be based on a comparison between the member's
12.10daily base rate of active duty pay, calculated by dividing the member's base military
12.11monthly salary by the number of paid days in the month, and the member's daily rate of
12.12pay for the member's school district salary, calculated by dividing the member's total
12.13school district salary by the number of contract days. The member's salary as a school
12.14district employee must include the member's basic salary and any additional salary the
12.15member earns from the school district for cocurricular and extracurricular activities. The
12.16differential payment under this paragraph must be the difference between the daily base
12.17rates of military pay times the number of school district contract days the member misses
12.18because of military active duty. This payment may be made only to a person whose daily
12.19base rate of active duty pay is less than the person's daily rate of pay as an active school
12.20district employee. Payments may be made at the intervals at which the member received
12.21pay as a school district employee. Payment under this section must not extend beyond
12.22four years from the date the employee reported for active service, plus any additional time
12.23the employee may be legally required to serve.
12.24(c) An eligible member of the reserve components of the armed forces of the United
12.25States is a reservist or National Guard member who was an employee of a political
12.26subdivision at the time the member reported for active service on or after May 29, 2003,
12.27or who is on active service on May 29, 2003.
12.28(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a
12.29statutory or home rule charter city, county, town, or other political subdivision has total
12.30discretion regarding employee benefit continuation for a member who reports for active
12.31service and the terms and conditions of any benefit.
12.32(e) A school district must continue the employee's enrollment in health and dental
12.33coverage, and the employer contribution toward that coverage, until the employee is
12.34covered by health and dental coverage provided by the armed forces. If the employee had
12.35elected dependent coverage for health or dental coverage as of the time that the employee
12.36reported for active service, a school district must offer the employee the option to continue
13.1the dependent coverage at the employee's own expense. A school district must permit
13.2the employee to continue participating in any pretax account in which the employee
13.3participated when the employee reported for active service, to the extent of employee pay
13.4available for that purpose.
13.5(f) For purposes of this section, "active service" has the meaning given in section
13.6190.05, subdivision 5 , but excludes service performed exclusively for purposes of:
13.7(1) basic combat training, advanced individual training, annual training, and periodic
13.8inactive duty training;
13.9(2) special training periodically made available to reserve members; and
13.10(3) service performed in accordance with section 190.08, subdivision 3.
13.11(g) A school district making payments under paragraph (b) shall place a sum equal
13.12to any difference between the amount of salary that would have been paid to the employee
13.13who is receiving the payments and the amount of salary being paid to substitutes for
13.14that employee into a special fund that must be used to pay or partially pay the deployed
13.15employee's payments under paragraph (b). A school district is required to pay only this
13.16amount to the deployed school district employee. When an employee of a school district
13.17who as a member of the National Guard or any other reserve unit of the United States
13.18armed forces, reports for active service as defined in section 190.05, subdivision 5, the
13.19district must place into a special service members' aggregate salary savings account a sum
13.20equal to the positive difference between the amount of salary the district would have paid
13.21to the employee and the amount of salary paid to any substitute for the employee's position
13.22during the employee's leave for military service. The district must use the combined
13.23proceeds in the account only to fully pay, or partially pay in proportionate amounts, the
13.24salary differentials of all eligible deployed employees in the district, as determined under
13.25paragraph (b). A school district's obligation to make payments under this section is limited
13.26to the amount of money in the account.
13.27EFFECTIVE DATE.This section is effective July 1, 2012, for school district
13.28employees serving in active military duty on or after that date.

13.29    Sec. 16. Laws 2011, First Special Session chapter 11, article 5, section 11, is amended
13.30to read:
13.31    Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 THROUGH
13.322015 ONLY.
13.33(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal
13.34years 2012 and 2013 through 2015 only, the commissioner must approve a request for a
13.35fund transfer if the transfer does not increase state aid obligations to the district or result in
14.1additional property tax authority for the district. This section does not permit transfers
14.2from the community service fund or the food service fund.
14.3(b) A school board may approve a fund transfer under paragraph (a) only after
14.4adopting a resolution stating the fund transfer will not diminish instructional opportunities
14.5for students.
14.6EFFECTIVE DATE.This section is effective the day following final enactment.

14.7    Sec. 17. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
14.88, is amended to read:
14.9    Subd. 8. Early childhood education scholarships. For grants to early childhood
14.10education scholarships for public or private early childhood preschool programs for
14.11children ages 3 to 5:

14.12

$

4,000,000

.....

2013

14.13(a) All children whose parents or legal guardians meet the eligibility requirements
14.14of paragraph (b) established by the commissioner are eligible to receive early childhood
14.15education scholarships under this section.
14.16(b) A parent or legal guardian is eligible for an early childhood education
14.17scholarship, to be used for a program provider of the parents' or legal guardians' choice, if
14.18the parent or legal guardian:
14.19(1) has a child three or four years of age on September 1, beginning in calendar
14.20year 2012; and
14.21(2)(i) has income equal to or less than 47 percent of the state median income in the
14.22current calendar year; or
14.23(ii) can document their child's identification through another public funding
14.24eligibility process, including the Free and Reduced Price Lunch Program, National School
14.25Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal
14.26Improving Head Start for School Readiness Act of 2007; Minnesota family investment
14.27program under chapter 256J; and child care assistance programs under chapter 119B.
14.28(c) Of the amount appropriated under this section, $250,000 is for a grant to the
14.29parent-child home program.
14.30(d) Each year, the Department of Education must award one-half of the early
14.31childhood education scholarship money to parents and legal guardians who reside in the
14.32seven-county metropolitan area and the other half to parents and legal guardians who live
14.33in greater Minnesota. If any money remains from either half after the initial applications,
14.34the commissioner may use that money to make early education scholarships in the
15.1other region. If this appropriation is insufficient to provide early childhood education
15.2scholarships to all eligible children, the Department of Education shall make scholarships
15.3available on a first-come, first-served basis within each of the two geographic regions of
15.4the state.
15.5(e) The commissioner of education shall submit a written report to the education
15.6committees of the legislature by January 15, 2012, describing its plan for implementation
15.7of scholarships under this subdivision for the 2012-2013 school year.
15.8(f) Any balance in the first year does not cancel but is available in the second year.
15.9(g) The base for this program is $2,000,000 each year.
15.10EFFECTIVE DATE.This section is effective the day following final enactment.

15.11    Sec. 18. BEMIDJI PUPIL TRANSPORTATION GRANT.
15.12$250,000 is appropriated in fiscal year 2013 from the general fund to the
15.13commissioner of education for a pupil transportation grant to Independent School District
15.14No. 31, Bemidji. This is an one time appropriation.

15.15    Sec. 19. CAREER AND TECHNICAL EDUCATION ADVISORY TASK
15.16FORCE.
15.17(a) A career and technical education advisory task force is established to develop
15.18recommendations for better integrating career and technical education into kindergarten
15.19through grade 12 curriculum and instruction, improving teachers' ability to help students
15.20prepare for college and careers by measures that include increasing the number of
15.21teachers with a master's degree in a content area directly related to the teachers'
15.22teaching assignment, and successfully meeting 21st century challenges through a more
15.23comprehensive approach to kindergarten through grade 12 education that includes
15.24expanded work-based learning opportunities and opportunities for 9th and 10th grade
15.25students to participate in postsecondary enrollment options under Minnesota Statutes,
15.26section 124D.09. The advisory task force must at least examine the role of school
15.27administrators, teachers, policy makers, and others in:
15.28(1) expecting career and technical education to provide students with high levels of
15.29skills and academic proficiency;
15.30(2) using career and technical education to improve students' mathematics scores;
15.31(3) understanding how the federal No Child Left Behind Act limits students' ability
15.32to pursue career and technical education; and
15.33(4) remedying the absence of and need for access to tools and equipment to provide
15.34students with hands-on learning.
16.1(b) Advisory task force members must include representatives of the following
16.2entities selected by that entity: the Minnesota Association of Career and Technical
16.3Administrators; the Minnesota Association for Career and Technical Education; University
16.4of Minnesota and Minnesota State Colleges and Universities faculty working to develop
16.5career and technical educators in Minnesota; the National Research Center for Career and
16.6Technical Education; the Minnesota Department of Education; the Minnesota Board of
16.7Teaching; the Minnesota Association of Colleges for Teacher Education; and any other
16.8representatives selected by the task force members. The education commissioner, or
16.9the commissioner's designee, must convene the task force. Task force members are not
16.10eligible for compensation or reimbursement for expenses related to task force activities.
16.11(c) The commissioner, upon request, must provide technical assistance to the task
16.12force.
16.13(d) The task force must submit its recommendations under this section to the
16.14legislative committees with jurisdiction over kindergarten through grade 12 education by
16.15February 15, 2013.
16.16EFFECTIVE DATE.This section is effective the day following final enactment.

16.17    Sec. 20. REPORT; NO CHILD LEFT BEHIND ACT 2012 WAIVER
16.18IMPLEMENTATION COST.
16.19The commissioner of education must submit to the K-12 education committees of
16.20the legislature by February 15, 2013, a written report containing an up-to-date plan for
16.21fully implementing the federally-approved 2012 No Child Left Behind Act waiver, a
16.22summary of state and local costs and all public and nonpublic expenditures to-date related
16.23to that implementation, and a projected estimate of all remaining future costs related
16.24to fully implementing the federal waiver.
16.25EFFECTIVE DATE.This section is effective the day following final enactment.

16.26    Sec. 21. APPROPRIATION.
16.27    Subdivision 1. Department of Education. The sums shown are added to or, if
16.28shown in parentheses, subtracted from, the appropriations in Laws 2011, First Special
16.29Session chapter 11, or any appropriation that replaces those appropriations, to the
16.30Department of Education for the purposes specified. The appropriations are from the
16.31general fund, or another named fund, and are available for the fiscal years indicated for
16.32each purpose.
17.1    Subd. 2. General education aid. For general education aid under Minnesota
17.2Statutes, section 126C.13, subdivision 4:

17.3		$	(340,000)	.....	2012
17.4		$	(669,000)	.....	2013

17.5EFFECTIVE DATE.This section is effective the day following final enactment.

17.6    Sec. 22. REPEALER.
17.7(a) Minnesota Statutes 2010, section 127A.095, subdivision 3, is repealed.
17.8(b) Minnesota Statutes 2010, section 124D.09, subdivision 23, is repealed effective
17.9for the 2012-2013 school year and later.
17.10EFFECTIVE DATE.This section is effective the day following final enactment."
17.11Amend the title accordingly