HF 2949

CCR--HF2949 - 87th Legislature (2011 - 2012)

Posted on 04/20/2012 04:40 p.m.

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 2949 1.2A bill for an act 1.3relating to education; modifying certain early childhood and kindergarten through 1.4grade 12 policy and finance provisions; requiring reports; appropriating money; 1.5amending Minnesota Statutes 2010, sections 120B.13, subdivision 4; 124D.09, 1.6subdivisions 9, 10, 12, 24; 135A.101, subdivision 1; 471.975; Minnesota Statutes 1.72011 Supplement, sections 120B.07; 120B.08; 120B.09; 120B.36, subdivision 1; 1.8124D.09, subdivision 5; 126C.126; 126C.40, subdivision 1; Laws 2011, First 1.9Special Session chapter 11, article 5, section 11; article 7, section 2, subdivision 1.108; repealing Minnesota Statutes 2010, section 124D.09, subdivision 23. 1.11April 20, 2012 1.12The Honorable Kurt Zellers 1.13Speaker of the House of Representatives 1.14The Honorable Michelle L. Fischbach 1.15President of the Senate 1.16We, the undersigned conferees for H. F. No. 2949 report that we have agreed upon 1.17the items in dispute and recommend as follows: 1.18That the Senate recede from its amendments and that H. F. No. 2949 be further 1.19amended as follows: 1.20Delete everything after the enacting clause and insert: 1.21"ARTICLE 1 1.22GENERAL EDUCATION 1.23    Section 1. Minnesota Statutes 2010, section 120A.20, subdivision 2, is amended to 1.24read: 1.25    Subd. 2. Education and new text begin , new text end residence new text begin , and transportation new text end of homeless. (a) 1.26Notwithstanding subdivision 1, a district must not deny free admission to a homeless 1.27person of school age new text begin pupil new text end solely because the district cannot determine that the person new text begin new text end 1.28 new text begin pupil new text end is a resident of the district. 1.29(b) The school district of residence for a homeless person of school age new text begin pupil new text end 1.30shall be the school district in which the homeless shelter or other program, center, or 2.1facility assisting the homeless person is located. The educational services a school 2.2district provides to a homeless person must allow the person to work toward meeting the 2.3graduation standards under section . new text begin parent or legal guardian resides, unless: (1) new text end 2.4 new text begin parental rights have been terminated by court order; (2) the parent or guardian is not new text end 2.5 new text begin living within the state; or (3) the parent or guardian having legal custody of the child is new text end 2.6 new text begin an inmate of a Minnesota correctional facility or is a resident of a halfway house under new text end 2.7 new text begin the supervision of the commissioner of corrections. If any of clauses (1) to (3) apply, the new text end 2.8 new text begin school district of residence shall be the school district in which the pupil resided when the new text end 2.9 new text begin qualifying event occurred. If no other district of residence can be established, the school new text end 2.10 new text begin district of residence shall be the school district in which the pupil currently resides. If new text end 2.11 new text begin there is a dispute between school districts regarding residency, the district of residence is new text end 2.12 new text begin the district designated by the commissioner of education. new text end 2.13 new text begin (c) The serving district is responsible for transporting a homeless pupil to and from new text end 2.14 new text begin the pupil's district of residence. The district may transport from a permanent home in new text end 2.15 new text begin another district but only through the end of the academic school year. When a pupil is new text end 2.16 new text begin enrolled in a charter school, the district or school that provides transportation for other new text end 2.17 new text begin pupils enrolled in the charter school is responsible for providing transportation. When a new text end 2.18 new text begin homeless student with or without an individualized education program attends a public new text end 2.19 new text begin school other than an independent or special school district or charter school, the district of new text end 2.20 new text begin residence is responsible for transportation. new text end 2.21    Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read: 2.22    Subd. 11. Assessment of performance. (a) Each year the performance of every 2.23child new text begin ages seven through 16 new text end who is not enrolled in a public school must be assessed using 2.24a nationally norm-referenced standardized achievement examination. The superintendent 2.25of the district in which the child receives instruction and the person in charge of the child's 2.26instruction must agree about the specific examination to be used and the administration 2.27and location of the examination. 2.28(b) To the extent the examination in paragraph (a) does not provide assessment in 2.29all of the subject areas in subdivision 9, the parent must assess the child's performance 2.30in the applicable subject area. This requirement applies only to a parent who provides 2.31instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3). 2.32(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 2.33child's performance on the total battery score is at or below the 30th percentile or one 2.34grade level below the performance level for children of the same age, the parent must 3.1obtain additional evaluation of the child's abilities and performance for the purpose of 3.2determining whether the child has learning problems. 3.3(d) A child receiving instruction from a nonpublic school, person, or institution that 3.4is accredited by an accrediting agency, recognized according to section 123B.445, or 3.5recognized by the commissioner, is exempt from the requirements of this subdivision. 3.6    Sec. 3. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 1, is 3.7amended to read: 3.8    Subdivision 1. Reports to superintendent. (a) The person new text begin or nonpublic school new text end in 3.9charge of providing instruction to a child must submit to the superintendent of the district 3.10in which the child resides the name, birth date, and address of the child; the annual tests 3.11intended to be used under section 120A.22, subdivision 11, if required; the name of each 3.12instructor; and evidence of compliance with one of the requirements specified in section 3.13120A.22, subdivision 10 : 3.14(1) by October 1 of the first school year the child receives instruction after reaching 3.15the age of seven; 3.16(2) within 15 days of when a parent withdraws a child from public school after age 3.17seven to homeschool new text begin provide instruction in a nonpublic school that is not accredited new text end 3.18 new text begin by a state-recognized accredited agency new text end ; 3.19(3) within 15 days of moving out of a district; and 3.20(4) by October 1 after a new resident district is established. 3.21(b) The person new text begin or nonpublic school new text end in charge of providing instruction to a child 3.22between the ages of seven and 16 must submit, by October 1 of each school year, a letter 3.23of intent to continue to provide instruction under this section for all students under the 3.24person's new text begin or school's new text end supervision and any changes to the information required in paragraph 3.25(a) for each student. 3.26(c) The superintendent may collect the required information under this section 3.27through an electronic or Web-based format, but must not require electronic submission 3.28of information under this section from the person in charge of reporting under this 3.29subdivision. 3.30    Sec. 4. Minnesota Statutes 2011 Supplement, section 120A.24, subdivision 2, is 3.31amended to read: 3.32    Subd. 2. Availability of documentation. (a) The person new text begin or nonpublic school new text end in 3.33charge of providing instruction to a child must maintain documentation indicating that the 3.34subjects required in section 120A.22, subdivision 9, are being taught and proof that the 4.1tests under section 120A.22, subdivision 11, have been administered. This documentation 4.2must include class schedules, copies of materials used for instruction, and descriptions of 4.3methods used to assess student achievement. 4.4(b) The parent of a child who enrolls full time in public school after having been 4.5enrolled in a home school under section 120A.22, subdivision 6 new text begin nonpublic school that new text end 4.6 new text begin is not accredited by a state-recognized accrediting agency new text end , must provide the enrolling 4.7public school or school district with the child's scores on any tests administered to the 4.8child under section 120A.22, subdivision 11, and other education-related documents the 4.9enrolling school or district requires to determine where the child is placed in school and 4.10what course requirements apply. This paragraph does not apply to a shared time student 4.11who does not seek a public school diploma. 4.12(c) The person new text begin or nonpublic school new text end in charge of providing instruction to a child must 4.13make the documentation in this subdivision available to the county attorney when a case 4.14is commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted 4.15under chapter 260A. 4.16    Sec. 5. Minnesota Statutes 2011 Supplement, section 120B.023, subdivision 2, is 4.17amended to read: 4.18    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 4.19revise and appropriately embed technology and information literacy standards consistent 4.20with recommendations from school media specialists into the state's academic standards 4.21and graduation requirements and implement a review cycle for state academic standards 4.22and related benchmarks, consistent with this subdivision. During each review cycle, the 4.23commissioner also must examine the alignment of each required academic standard and 4.24related benchmark with the knowledge and skills students need for college readiness and 4.25advanced work in the particular subject area. 4.26(b) The commissioner in the 2006-2007 school year must revise and align the state's 4.27academic standards and high school graduation requirements in mathematics to require 4.28that students satisfactorily complete the revised mathematics standards, beginning in the 4.292010-2011 school year. Under the revised standards: 4.30(1) students must satisfactorily complete an algebra I credit by the end of eighth 4.31grade; and 4.32(2) students scheduled to graduate in the 2014-2015 school year or later must 4.33satisfactorily complete an algebra II credit or its equivalent. 4.34The commissioner also must ensure that the statewide mathematics assessments 4.35administered to students in grades 3 through 8 and 11 are aligned with the state academic 5.1standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 5.2(b). The commissioner must implement a review of the academic standards and related 5.3benchmarks in mathematics beginning in the 2015-2016 school year. 5.4(c) The commissioner in the 2007-2008 school year must revise and align the state's 5.5academic standards and high school graduation requirements in the arts to require that 5.6students satisfactorily complete the revised arts standards beginning in the 2010-2011 5.7school year. The commissioner must implement a review of the academic standards and 5.8related benchmarks in arts beginning in the 2016-2017 school year. 5.9(d) The commissioner in the 2008-2009 school year must revise and align the state's 5.10academic standards and high school graduation requirements in science to require that 5.11students satisfactorily complete the revised science standards, beginning in the 2011-2012 5.12school year. Under the revised standards, students scheduled to graduate in the 2014-2015 5.13school year or later must satisfactorily complete a chemistry, new text begin or new text end physics, new text begin credit new text end or new text begin a new text end career 5.14and technical education credit that meets the standards underlying either the chemistry or new text begin , new text end 5.15physics new text begin , or biology new text end credit new text begin or a combination of those standards approved by the district new text end . 5.16The commissioner must implement a review of the academic standards and related 5.17benchmarks in science beginning in the 2017-2018 school year. 5.18(e) The commissioner in the 2009-2010 school year must revise and align the state's 5.19academic standards and high school graduation requirements in language arts to require 5.20that students satisfactorily complete the revised language arts standards beginning in the 5.212012-2013 school year. The commissioner must implement a review of the academic 5.22standards and related benchmarks in language arts beginning in the 2018-2019 school year. 5.23(f) The commissioner in the 2010-2011 school year must revise and align the state's 5.24academic standards and high school graduation requirements in social studies to require 5.25that students satisfactorily complete the revised social studies standards beginning in the 5.262013-2014 school year. The commissioner must implement a review of the academic 5.27standards and related benchmarks in social studies beginning in the 2019-2020 school year. 5.28(g) School districts and charter schools must revise and align local academic 5.29standards and high school graduation requirements in health, world languages, and career 5.30and technical education to require students to complete the revised standards beginning 5.31in a school year determined by the school district or charter school. School districts and 5.32charter schools must formally establish a periodic review cycle for the academic standards 5.33and related benchmarks in health, world languages, and career and technical education. 5.34    Sec. 6. Minnesota Statutes 2010, section 120B.024, is amended to read: 5.35120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS. 6.1    (a) Students beginning 9th grade in the 2004-2005 new text begin 2011-2012 new text end school year and later 6.2must successfully complete the following high school level course credits for graduation: 6.3    (1) four credits of language arts; 6.4    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 6.5and probability sufficient to satisfy the academic standard; 6.6    (3) three credits of science, including at least new text begin : (i) new text end one credit in biology; new text begin and (ii) one new text end 6.7 new text begin chemistry or physics credit or a career and technical education credit that meets standards new text end 6.8 new text begin underlying the chemistry, physics, or biology credit or a combination of those standards new text end 6.9 new text begin approved by the district, but meeting biology standards under this item does not meet the new text end 6.10 new text begin biology requirement under item (i); new text end 6.11    (4) three and one-half credits of social studies, encompassing at least United 6.12States history, geography, government and citizenship, world history, and economics or 6.13three credits of social studies encompassing at least United States history, geography, 6.14government and citizenship, and world history, and one-half credit of economics taught in 6.15a school's social studies, agriculture education, or business department; 6.16    (5) one credit in the arts; and 6.17    (6) a minimum of seven elective course credits. 6.18    A course credit is equivalent to a student successfully completing an academic 6.19year of study or a student mastering the applicable subject matter, as determined by the 6.20local school district. 6.21    (b) An agriculture science course may fulfill a science credit requirement in addition 6.22to new text begin other than new text end the specified science credits new text begin credit new text end in biology and chemistry or physics 6.23under paragraph (a), clause (3). 6.24    (c) A career and technical education course may fulfill a science, mathematics, or 6.25arts credit requirement in addition to the specified science, mathematics, or arts credits new text begin new text end 6.26 new text begin or a science credit requirement other than the specified science credit in biology new text end under 6.27paragraph (a), clause (2), (3), or (5). 6.28    Sec. 7. Minnesota Statutes 2011 Supplement, section 120B.07, is amended to read: 6.29120B.07 EARLY GRADUATION. 6.30(a) Notwithstanding any law to the contrary, any secondary school student who has 6.31completed all required courses or standards may, with the approval of the student, the 6.32student's parent or guardian, and local school officials, graduate before the completion 6.33of the school year. 6.34(b) General education revenue attributable to the student must be paid as though 6.35the student was in attendance for the entire year unless the student participates in the 7.1early graduation achievement scholarship program under section or the early 7.2graduation military service award program under section . 7.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal year 2012 and later. new text end 7.4    Sec. 8. Minnesota Statutes 2011 Supplement, section 120B.08, is amended to read: 7.5120B.08 EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP 7.6PROGRAM. 7.7    Subdivision 1. Participation. A student who qualifies for early graduation under 7.8section 120B.07 new text begin , who meets the criteria in subdivision 1a and who has not participated in new text end 7.9 new text begin the early graduation military service award program under section 120B.09, new text end is eligible to 7.10participate in the early graduation achievement scholarship program. 7.11     new text begin Subd. 1a. new text end new text begin Eligible student. new text end new text begin For purposes of this section, an eligible student is a new text end 7.12 new text begin secondary student enrolled in a Minnesota public school who, at the time of graduation, new text end 7.13 new text begin generated Minnesota general education revenue and who graduates prior to the end of the new text end 7.14 new text begin fourth school year after first enrolling in ninth grade. new text end 7.15    Subd. 2. Scholarship amounts. A student who participates in the early graduation 7.16achievement scholarship program is eligible for a scholarship of $2,500 if the student 7.17qualifies for graduation new text begin graduates new text end one semester or two trimesters early, $5,000 if the 7.18student qualifies for graduation new text begin graduates new text end two semesters or three or four trimesters early, 7.19or $7,500 if the student qualifies for graduation new text begin graduates new text end three or more semesters or five 7.20or more trimesters early. new text begin Participation in the optional summer term, extended day sessions, new text end 7.21 new text begin and intersessions of a state-approved learning year program under section 124D.128 are new text end 7.22 new text begin considered a quarter for purposes of computing scholarship amounts. new text end 7.23    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be 7.24used at any accredited institution of higher education new text begin accredited by an accrediting agency new text end 7.25 new text begin recognized by the United States Department of Education new text end . 7.26    Subd. 4. Application. A qualifying student may apply to the commissioner of 7.27education for an early graduation achievement scholarship. The application must be in the 7.28form and manner specified by the commissioner new text begin and must be received at the department new text end 7.29 new text begin within two calendar years of the date of graduation new text end . Upon verification of the qualifying 7.30student's course completion necessary for graduation, the department must issue the 7.31student a certificate showing the student's scholarship amount. 7.32    Subd. 5. Enrollment verification. A student who qualifies under this section 7.33and enrolls in an accredited higher education institution must submit a form to the 7.34commissioner verifying the student's enrollment in the higher education institution and the 8.1tuition charges for that semester. Within 15 new text begin 45 new text end days of receipt of a student's enrollment 8.2and tuition verification form, the commissioner must issue a scholarship check to the 8.3student new text begin higher education institution new text end in the lesser of the tuition amount for that semester 8.4or the maximum amount of the student's early graduation achievement scholarship. A 8.5student may continue to submit enrollment verification forms to the commissioner until 8.6the student has used the full amount of the student's graduation achievement scholarship new text begin or new text end 8.7 new text begin six years from the date of the student's graduation, whichever occurs first. The scholarship new text end 8.8 new text begin cannot be renewed new text end . 8.9    Subd. 6. General education money transferred. The commissioner must transfer 8.10the amounts necessary to fund the early graduation achievement scholarships from the 8.11general education aid appropriation for that year. 8.12 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal year 2012 and later. new text end 8.13    Sec. 9. Minnesota Statutes 2011 Supplement, section 120B.09, is amended to read: 8.14120B.09 EARLY GRADUATION MILITARY SERVICE AWARD PROGRAM. 8.15    Subdivision 1. Eligibility. For purposes of this section, "eligible person" means a 8.16secondary student enrolled in any Minnesota public school new text begin who, at the time of graduation, new text end 8.17 new text begin generated Minnesota general education revenue, new text end who qualifies for early graduation under 8.18section 120B.07 new text begin , who graduated prior to the end of the fourth school year after first new text end 8.19 new text begin enrolling in ninth grade, who has not participated in the early graduation achievement new text end 8.20 new text begin scholarship program under section 120B.08, new text end and who, before the end of the calendar 8.21year of the student's graduation, enters into active service in either the active or reserve 8.22component of the United States armed forces and deploys for 60 days or longer to a 8.23military base or installation outside Minnesota for the purpose of attending basic military 8.24training or military school and, if required by the military, performing other military duty. 8.25The active service may be in accordance with United States Code, title 10 or title 32. 8.26    Subd. 2. Application. An eligible person may apply to the commissioner of 8.27education for an early graduation military service bonus. The application must be in the 8.28form and manner specified by the commissioner new text begin and must be received at the department new text end 8.29 new text begin within two calendar years of the date of graduation new text end . 8.30    Subd. 3. Verification and award. new text begin The request for payment must be received at new text end 8.31 new text begin the department by the end of the second fiscal year following the fiscal year in which new text end 8.32 new text begin the student graduated. new text end Upon verification of the qualifying student's course completion 8.33necessary for graduation and eligibility for the military service bonus, the commissioner 8.34must issue payment to that person. Payment amounts must be determined according to 9.1section 120B.08, subdivision 2. new text begin Once the original amount of the award has been paid, it new text end 9.2 new text begin cannot be renewed. new text end 9.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for fiscal year 2012 and later. new text end 9.4    Sec. 10. Minnesota Statutes 2010, section 120B.13, subdivision 4, is amended to read: 9.5    Subd. 4. new text begin Rigorous course taking new text end information new text begin ; AP, IB, and PSEO new text end . The 9.6commissioner shall submit the following information new text begin on rigorous course taking new text end to the 9.7education committees of the legislature each year by February 1: 9.8(1) the number of pupils enrolled in new text begin postsecondary enrollment options under new text end 9.9 new text begin section 124D.09, including concurrent enrollment, new text end advanced placement new text begin , new text end and international 9.10baccalaureate courses in each school district; 9.11(2) the number of teachers in each district attending training programs offered by 9.12the college board or new text begin , new text end International Baccalaureate North America, Inc. new text begin , or Minnesota new text end 9.13 new text begin concurrent enrollment programs new text end ; 9.14(3) the number of teachers in each district participating in support programs; 9.15(4) recent trends in the field of new text begin postsecondary enrollment options under section new text end 9.16 new text begin 124D.09, including concurrent enrollment, new text end advanced placement new text begin , new text end and international 9.17baccalaureate programs; 9.18(5) expenditures for each category in this section new text begin and under sections 124D.09 and new text end 9.19 new text begin 124D.091 new text end ; and 9.20(6) other recommendations for the state program new text begin or the postsecondary enrollment new text end 9.21 new text begin options under section 124D.09, including concurrent enrollment new text end . 9.22 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2012-2013 school year and new text end 9.23 new text begin later. new text end 9.24    Sec. 11. Minnesota Statutes 2010, section 122A.415, subdivision 3, is amended to read: 9.25    Subd. 3. Revenue timing. (a) Districts, intermediate school districts, school sites, 9.26or charter schools with approved applications must receive alternative compensation 9.27revenue for each school year that the district, intermediate school district, school site, 9.28or charter school implements an alternative teacher professional pay system under this 9.29subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 9.30intermediate school district, school site, or charter school that received alternative teacher 9.31compensation aid for the previous fiscal year must receive at least an amount of alternative 9.32teacher compensation revenue equal to the lesser of the amount it received for the previous 9.33fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 10.1the district, intermediate school district, school site, or charter school submits a timely 10.2application and the commissioner determines that the district, intermediate school district, 10.3school site, or charter school continues to implement an alternative teacher professional 10.4pay system, consistent with its application under this section. 10.5(b) The commissioner shall approve applications that comply with subdivision 1, 10.6and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 10.7school, in the order in which they are received, select applicants that qualify for this 10.8program, notify school districts, intermediate school districts, school sites, and charter 10.9schools about the program, develop and disseminate application materials, and carry out 10.10other activities needed to implement this section. 10.11(c) For applications approved under this section before August 1 of the fiscal year for 10.12which the aid is paid, the portion of the state total basic alternative teacher compensation 10.13aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006 10.14and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state 10.15total basic alternative teacher compensation aid entitlement allocated to charter schools 10.16must not exceed the product of $3,374,000 times the ratio of the state total charter school 10.17enrollment for the previous fiscal year to the state total charter school enrollment for the 10.18second previous new text begin fiscal new text end year new text begin 2007 new text end . Additional basic alternative teacher compensation aid 10.19may be approved for charter schools after August 1, not to exceed the charter school limit 10.20for the following fiscal year, if the basic alternative teacher compensation aid entitlement 10.21for school districts based on applications approved by August 1 does not expend the 10.22remaining amount under the limit. 10.23    Sec. 12. Minnesota Statutes 2010, section 123B.92, subdivision 3, is amended to read: 10.24    Subd. 3. Alternative attendance programs. (a) A district that enrolls nonresident 10.25pupils in programs under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68, 10.26must provide authorized transportation to the pupil within the attendance area for the 10.27school that the pupil attends at the same level of service that is provided to resident pupils 10.28within the attendance area. The resident district need not provide or pay for transportation 10.29between the pupil's residence and the district's border. 10.30    (b) A district may provide transportation to allow a student who attends a high-need 10.31English language learner program and who resides within the transportation attendance 10.32area of the program to continue in the program until the student completes the highest 10.33grade level offered by the program. 11.1 new text begin (c) A homeless nonresident pupil enrolled under section 124D.08, subdivision 2a, new text end 11.2 new text begin must be provided transportation from the pupil's district of residence to and from the new text end 11.3 new text begin school of enrollment. new text end 11.4    Sec. 13. Minnesota Statutes 2010, section 124D.08, is amended by adding a 11.5subdivision to read: 11.6     new text begin Subd. 2a. new text end new text begin Continued enrollment for homeless students. new text end new text begin Notwithstanding new text end 11.7 new text begin subdivision 2, a pupil who has been enrolled in a district, who is identified as homeless, new text end 11.8 new text begin and whose parent or legal guardian moves to another district, may continue to enroll in new text end 11.9 new text begin the nonresident district without the approval of the board of the nonresident district. The new text end 11.10 new text begin approval of the board of the pupil's resident district is not required. new text end 11.11    Sec. 14. Minnesota Statutes 2010, section 124D.09, is amended by adding a 11.12subdivision to read: 11.13     new text begin Subd. 5a. new text end new text begin Authorization; career or technical education. new text end new text begin A 10th, 11th, or 12th new text end 11.14 new text begin grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant new text end 11.15 new text begin school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in new text end 11.16 new text begin a district under a cultural exchange program, may enroll in a career or technical education new text end 11.17 new text begin course offered by a Minnesota state college or university. A 10th grade pupil applying new text end 11.18 new text begin for enrollment in a career or technical education course under this subdivision must new text end 11.19 new text begin have received a passing score on the 8th grade Minnesota Comprehensive Assessment new text end 11.20 new text begin in reading as a condition of enrollment. A secondary pupil may enroll in their first new text end 11.21 new text begin postsecondary options enrollment course under this subdivision. A student who is refused new text end 11.22 new text begin enrollment by a Minnesota state college or university under this subdivision, may apply to new text end 11.23 new text begin an eligible institution offering a career or technical education course. The postsecondary new text end 11.24 new text begin institution must give priority to its students according to subdivision 9. If a secondary new text end 11.25 new text begin student receives a grade of "C" or better in the career or technical education course new text end 11.26 new text begin taken under this subdivision, the postsecondary institution must allow the student to take new text end 11.27 new text begin additional postsecondary courses for secondary credit at that institution, not to exceed the new text end 11.28 new text begin limits in subdivision 8. A "career or technical course" is a course that is part of a career new text end 11.29 new text begin and technical education program that provides individuals with coherent, rigorous content new text end 11.30 new text begin aligned with academic standards and relevant technical knowledge and skills needed new text end 11.31 new text begin to prepare for further education and careers in current and emerging professions and new text end 11.32 new text begin provide technical skill proficiency, an industry recognized credential, and a certificate, new text end 11.33 new text begin diploma, or an associate degree. new text end 12.1    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.09, subdivision 7, is 12.2amended to read: 12.3    Subd. 7. Dissemination of information; notification of intent to enroll. By March 12.41 of each year, a district must provide general information about the program to all pupils 12.5in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district 12.6by March new text begin May new text end 30 of each year of the pupil's intent to enroll in postsecondary courses 12.7during the following school year. A pupil is not bound by notifying or not notifying the 12.8district by March new text begin May new text end 30. 12.9    Sec. 16. Minnesota Statutes 2010, section 124D.09, subdivision 9, is amended to read: 12.10    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its 12.11postsecondary students when enrolling new text begin 10th, new text end 11th new text begin , new text end and 12th grade pupils in its courses. 12.12A postsecondary institution may provide information about its programs to a secondary 12.13school or to a pupil or parent, but it may not advertise or otherwise recruit or solicit the 12.14participation of secondary pupils to enroll in its programs on financial grounds new text begin and it may new text end 12.15 new text begin advertise or otherwise recruit or solicit a secondary pupil to enroll in its programs on new text end 12.16 new text begin educational and programmatic grounds only new text end . An institution must not enroll secondary 12.17pupils, for postsecondary enrollment options purposes, in remedial, developmental, or 12.18other courses that are not college level. Once a pupil has been enrolled in a postsecondary 12.19course under this section, the pupil shall not be displaced by another student. 12.20    Sec. 17. Minnesota Statutes 2010, section 124D.09, subdivision 12, is amended to read: 12.21    Subd. 12. Credits. A pupil may enroll in a course under this section for either 12.22secondary credit or postsecondary credit. At the time a pupil enrolls in a course, the pupil 12.23shall designate whether the course is for secondary or postsecondary credit. A pupil taking 12.24several courses may designate some for secondary credit and some for postsecondary 12.25credit. A pupil must not audit a course under this section. 12.26A district shall grant academic credit to a pupil enrolled in a course for secondary 12.27credit if the pupil successfully completes the course. Seven quarter or four semester 12.28college credits equal at least one full year of high school credit. Fewer college credits may 12.29be prorated. A district must also grant academic credit to a pupil enrolled in a course for 12.30postsecondary credit if secondary credit is requested by a pupil. If no comparable course is 12.31offered by the district, the district must, as soon as possible, notify the commissioner, who 12.32shall determine the number of credits that shall be granted to a pupil who successfully 12.33completes a course. If a comparable course is offered by the district, the school board 12.34shall grant a comparable number of credits to the pupil. If there is a dispute between the 13.1district and the pupil regarding the number of credits granted for a particular course, the 13.2pupil may appeal the board's decision to the commissioner. The commissioner's decision 13.3regarding the number of credits shall be final. 13.4The secondary credits granted to a pupil must be counted toward the graduation 13.5requirements and subject area requirements of the district. Evidence of successful 13.6completion of each course and secondary credits granted must be included in the pupil's 13.7secondary school record. A pupil shall provide the school with a copy of the pupil's grade 13.8in each course taken for secondary credit under this section. Upon the request of a pupil, 13.9the pupil's secondary school record must also include evidence of successful completion 13.10and credits granted for a course taken for postsecondary credit. In either case, the record 13.11must indicate that the credits were earned at a postsecondary institution. 13.12If a pupil enrolls in a postsecondary institution after leaving secondary school, the 13.13postsecondary institution must award postsecondary credit for any course successfully 13.14completed for secondary credit at that institution. Other postsecondary institutions may 13.15award, after a pupil leaves secondary school, postsecondary credit for any courses 13.16successfully completed under this section. An institution may not charge a pupil for 13.17the award of credit. 13.18The Board of Trustees of the Minnesota State Colleges and Universities and 13.19the Board of Regents of the University of Minnesota must, and private nonprofit and 13.20proprietary postsecondary institutions should, award postsecondary credit for any 13.21successfully completed courses in a program certified by the National Alliance of 13.22Concurrent Enrollment Partnerships offered according to an agreement under subdivision 13.2310. 13.24    Sec. 18. Minnesota Statutes 2010, section 124D.09, subdivision 22, is amended to read: 13.25    Subd. 22. Transportation. new text begin (a) new text end A parent or guardian of a pupil enrolled in a course 13.26for secondary credit may apply to the pupil's district of residence for reimbursement for 13.27transporting the pupil between the secondary school in which the pupil is enrolled or the 13.28pupil's home and the postsecondary institution that the pupil attends. The state shall 13.29provide state aid to a district in an amount sufficient to reimburse the parent or guardian 13.30for the necessary transportation costs when the family's or guardian's income is at or 13.31below the poverty level, as determined by the federal government. The reimbursement 13.32shall be the pupil's actual cost of transportation or 15 cents per mile traveled, whichever 13.33is less. Reimbursement may not be paid for more than 250 miles per week. However, 13.34if the nearest postsecondary institution is more than 25 miles from the pupil's resident 13.35secondary school, the weekly reimbursement may not exceed the reimbursement rate per 14.1mile times the actual distance between the secondary school or the pupil's home and the 14.2nearest postsecondary institution times ten. The state must pay aid to the district according 14.3to this subdivision. 14.4 new text begin (b) A parent or guardian of an alternative pupil enrolled in a course for secondary new text end 14.5 new text begin credit may apply to the pupil's postsecondary institution for reimbursement for new text end 14.6 new text begin transporting the pupil between the secondary school in which the pupil is enrolled or the new text end 14.7 new text begin pupil's home and the postsecondary institution in an amount sufficient to reimburse the new text end 14.8 new text begin parent or guardian for the necessary transportation costs when the family's or guardian's new text end 14.9 new text begin income is at or below the poverty level, as determined by the federal government. The new text end 14.10 new text begin amount of the reimbursement shall be determined as in paragraph (a). The state must pay new text end 14.11 new text begin aid to the postsecondary institution according to this subdivision. new text end 14.12    Sec. 19. Minnesota Statutes 2010, section 124D.09, subdivision 24, is amended to read: 14.13    Subd. 24. Limit; state obligation. The provisions of subdivisions 13, 19, new text begin and new text end 14.1422, and 23 shall not apply for any postsecondary courses in which a pupil is enrolled in 14.15addition to being enrolled full time in that pupil's district or for any postsecondary course 14.16in which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if 14.17the pupil attends credit-bearing classes in the high school or high school program for 14.18all of the available hours of instruction. 14.19 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2012-2013 school year and new text end 14.20 new text begin later. new text end 14.21    Sec. 20. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 8, is 14.22amended to read: 14.23    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all 14.24federal, state, and local health and safety requirements applicable to school districts. 14.25    (b) A school must comply with statewide accountability requirements governing 14.26standards and assessments in chapter 120B. 14.27    (c) A school authorized by a school board may be located in any district, unless the 14.28school board of the district of the proposed location disapproves by written resolution. 14.29    (d) A charter school must be nonsectarian in its programs, admission policies, 14.30employment practices, and all other operations. An authorizer may not authorize a charter 14.31school or program that is affiliated with a nonpublic sectarian school or a religious 14.32institution. A charter school student must be released for religious instruction, consistent 14.33with section 120A.22, subdivision 12, clause (3). 15.1    (e) Charter schools must not be used as a method of providing education or 15.2generating revenue for students who are being home-schooled. new text begin This paragraph does not new text end 15.3 new text begin apply to shared time aid, under section 126C.19. new text end 15.4    (f) The primary focus of a charter school must be to provide a comprehensive 15.5program of instruction for at least one grade or age group from five through 18 years 15.6of age. Instruction may be provided to people younger than five years and older than 15.718 years of age. 15.8    (g) A charter school may not charge tuition. 15.9    (h) A charter school is subject to and must comply with chapter 363A and section 15.10121A.04 . 15.11    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal 15.12Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 15.13123B.34 to 123B.39. 15.14    (j) A charter school is subject to the same financial audits, audit procedures, and 15.15audit requirements as a district. Audits must be conducted in compliance with generally 15.16accepted governmental auditing standards, the federal Single Audit Act, if applicable, 15.17and section 6.65. A charter school is subject to and must comply with sections 15.054; 15.18118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 471.38; 471.391; 471.392; and 15.19471.425 . The audit must comply with the requirements of sections 123B.75 to 123B.83, 15.20except to the extent deviations are necessary because of the program at the school. 15.21Deviations must be approved by the commissioner and authorizer. The Department of 15.22Education, state auditor, legislative auditor, or authorizer may conduct financial, program, 15.23or compliance audits. A charter school determined to be in statutory operating debt under 15.24sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4. 15.25    (k) A charter school is a district for the purposes of tort liability under chapter 466. 15.26    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 15.27subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5. 15.28    (m) A charter school is subject to the Pledge of Allegiance requirement under 15.29section 121A.11, subdivision 3. 15.30    (n) A charter school offering online courses or programs must comply with section 15.31124D.095 . 15.32    (o) A charter school and charter school board of directors are subject to chapter 181. 15.33    (p) A charter school must comply with section 120A.22, subdivision 7, governing 15.34the transfer of students' educational records and sections 138.163 and 138.17 governing 15.35the management of local records. 16.1    (q) A charter school that provides early childhood health and developmental 16.2screening must comply with sections 121A.16 to 121A.19. 16.3(r) A charter school that provides school-sponsored youth athletic activities must 16.4comply with section 121A.38. 16.5    Sec. 21. Minnesota Statutes 2011 Supplement, section 124D.4531, subdivision 1, 16.6is amended to read: 16.7    Subdivision 1. Career and technical levy. (a) A district with a career and technical 16.8program approved under this section for the fiscal year in which the levy is certified 16.9may levy an amount equal to the greater of: 16.10(1) $80 times the district's average daily membership in grades 9 through 12 for the 16.11fiscal year in which the levy is certified; or 16.12(2) 35 percent of approved expenditures in the fiscal year in which the levy is 16.13certified for the following: 16.14(i) new text begin (1) new text end salaries paid to essential, licensed personnel providing direct instructional 16.15services to students in that fiscal year, including extended contracts, for services rendered 16.16in the district's approved career and technical education programs; 16.17(ii) new text begin (2) new text end contracted services provided by a public or private agency other than a 16.18Minnesota school district or cooperative center under subdivision 7; 16.19(iii) new text begin (3) new text end necessary travel between instructional sites by licensed career and technical 16.20education personnel; 16.21(iv) new text begin (4) new text end necessary travel by licensed career and technical education personnel for 16.22vocational student organization activities held within the state for instructional purposes; 16.23(v) new text begin (5) new text end curriculum development activities that are part of a five-year plan for 16.24improvement based on program assessment; 16.25(vi) new text begin (6) new text end necessary travel by licensed career and technical education personnel for 16.26noncollegiate credit-bearing professional development; and 16.27(vii) new text begin (7) new text end specialized vocational instructional supplies. 16.28(b) Up to ten percent of a district's career and technical levy may be spent on 16.29equipment purchases. Districts using the career and technical levy for equipment 16.30purchases must report to the department on the improved learning opportunities for 16.31students that result from the investment in equipment. 16.32(c) The district must recognize the full amount of this levy as revenue for the fiscal 16.33year in which it is certified. 17.1(d) The amount of the levy certified under this subdivision may not exceed 17.2$17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, and 17.3$15,545,000 new text begin $15,393,000 new text end for taxes payable in 2014. 17.4(e) If the estimated levy exceeds the amount in paragraph (d), the commissioner 17.5must reduce the percentage in paragraph (a), clause (2), until the estimated levy no longer 17.6exceeds the limit in paragraph (d). 17.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 17.8    Sec. 22. Minnesota Statutes 2010, section 124D.4531, subdivision 3, is amended to 17.9read: 17.10    Subd. 3. Levy guarantee. Notwithstanding subdivision 1, new text begin paragraph (a), new text end the career 17.11and technical education levy for a district is not less than the lesser of: 17.12(1) the district's career and technical education levy authority for the previous 17.13fiscal year; or 17.14(2) 100 percent of the approved expenditures for career and technical programs 17.15included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified. 17.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 17.17    Sec. 23. Minnesota Statutes 2010, section 124D.4531, is amended by adding a 17.18subdivision to read: 17.19     new text begin Subd. 3a. new text end new text begin Levy, pay 2012-2014. new text end new text begin Notwithstanding subdivisions 1 and 3, for taxes new text end 17.20 new text begin payable in 2012 to 2014 only, the department must calculate the career and technical levy new text end 17.21 new text begin authority for each district according to Minnesota Statutes 2010, section 124D.4531, and new text end 17.22 new text begin adjust the levy authority for each district proportionately to meet the statewide levy target new text end 17.23 new text begin under subdivision 1, paragraph (d). For purposes of calculating the levy guarantee under new text end 17.24 new text begin subdivision 3, the career and technical education levy authority for the previous fiscal year new text end 17.25 new text begin is the levy authority according to Minnesota Statutes 2010, section 124D.4531, before new text end 17.26 new text begin adjustments to meet the statewide levy target. new text end 17.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 17.28    Sec. 24. Minnesota Statutes 2010, section 126C.10, subdivision 28, is amended to read: 17.29    Subd. 28. Equity region. For the purposes of computing equity revenue under 17.30subdivision 24, a district whose new text begin with its new text end administrative offices on July 1, 1999, is new text begin office new text end 17.31located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County new text begin on new text end 17.32 new text begin January 1, 2012, new text end is part of the metro equity region. Districts whose administrative offices 18.1on July 1, 1999, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or 18.2Washington County new text begin All other districts new text end are part of the rural equity region. 18.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal years 2013 new text end 18.4 new text begin and later. new text end 18.5    Sec. 25. Minnesota Statutes 2011 Supplement, section 126C.126, is amended to read: 18.6126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 18.7ALL-DAY KINDERGARTEN AND PREKINDERGARTEN. 18.8    (a) In order to provide additional revenue for an optional all-day kindergarten 18.9program, a district may reallocate general education revenue attributable to 12th grade 18.10students who have graduated early under section and who do not participate in 18.11the early graduation achievement scholarship program under section or the early 18.12graduation military service award program under section . 18.13    (b) A school district may spend general education revenue on extended time 18.14kindergarten and prekindergarten programs. 18.15    Sec. 26. Minnesota Statutes 2010, section 126C.19, subdivision 2, is amended to read: 18.16    Subd. 2. Exception. Notwithstanding subdivision 1, the resident district of a shared 18.17time pupil attending shared time classes in another district may new text begin or a charter school must new text end 18.18 grant the district new text begin or charter school new text end of attendance, upon its request, permission to claim 18.19the pupil as a resident for state aid purposes. In this case, state aid must be paid to the 18.20district new text begin or charter school new text end of attendance and, upon agreement new text begin . If the resident district agrees new text end , 18.21the district of attendance may bill the resident district for any unreimbursed education 18.22costs, but not for unreimbursed transportation costs. The agreement may, however, 18.23provide new text begin resident district and the district or charter school of attendance may negotiate an new text end 18.24 new text begin agreement new text end for the resident district to pay the cost of any of the particular transportation 18.25categories specified in section 123B.92, subdivision 1, and in this case, aid for those 18.26categories must be paid to the district of residence rather than to the district of attendance. 18.27 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for revenue for fiscal year 2014 new text end 18.28 new text begin and later. new text end 18.29    Sec. 27. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 6a, 18.30is amended to read: 18.31    Subd. 6a. Cash flow adjustment. The board of directors of any charter school 18.32serving fewer than 150 new text begin 200 new text end students where the percent of students eligible for special 19.1education services equals at least 90 percent of the charter school's total enrollment may 19.2request that the commissioner of education accelerate the school's cash flow under this 19.3section. The commissioner must approve a properly submitted request within 30 days of 19.4its receipt. The commissioner must accelerate the school's regular special education aid 19.5payments according to the schedule in the school's request and modify the payments to the 19.6school under subdivision 3 accordingly. A school must not receive current payments of 19.7regular special education aid exceeding 90 percent of its estimated aid entitlement for the 19.8fiscal year. The commissioner must delay the special education aid payments to all other 19.9school districts and charter schools in proportion to each district or charter school's total 19.10share of regular special education aid such that the overall aid payment savings from the 19.11aid payment shift remains unchanged for any fiscal year. 19.12    Sec. 28. Minnesota Statutes 2010, section 127A.47, subdivision 1, is amended to read: 19.13    Subdivision 1. Aid to serving district. (a) Unless otherwise specifically provided 19.14by law, general education aid must be paid according to this subdivision. 19.15(b) Except as provided in paragraph (c), general education aid must be paid to the 19.16serving district. 19.17(c) If the resident district pays tuition for a pupil under section 123A.18, 123A.22, 19.18123A.30 , 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 19.19125A.03 to 125A.24, 125A.51, or 125A.65, general education aid, excluding basic skills 19.20revenue under section 126C.10, subdivision 4, must be paid to the resident district. new text begin For new text end 19.21 new text begin a student enrolled under section 124D.08, subdivision 2a, that is enrolled in other than new text end 19.22 new text begin an independent or special school district or charter school, the general education revenue new text end 19.23 new text begin shall be paid to the resident district. new text end 19.24    Sec. 29. Minnesota Statutes 2010, section 135A.101, subdivision 1, is amended to read: 19.25    Subdivision 1. Requirements for participation. To participate in the postsecondary 19.26enrollment options program, a college or university must abide by the provisions in this 19.27section. The institution may provide information about its programs to a secondary school 19.28or to a pupil or parent, but may not recruit or solicit participation on financial grounds new text begin and new text end 19.29 new text begin may recruit or solicit participation on educational and programmatic grounds new text end . 19.30    Sec. 30. Minnesota Statutes 2010, section 471.975, is amended to read: 19.31471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY. 19.32(a) Except as provided in paragraph (b), a statutory or home rule charter city, county, 19.33town, or other political subdivision may pay to each eligible member of the National 20.1Guard or other reserve component of the armed forces of the United States an amount 20.2equal to the difference between the member's base active duty military salary and the 20.3salary the member would be paid as an active political subdivision employee, including 20.4any adjustments the member would have received if not on leave of absence. This 20.5payment may be made only to a person whose base active duty military salary is less than 20.6the salary the person would be paid as an active political subdivision employee. Back pay 20.7authorized by this section may be paid in a lump sum. Payment under this section must 20.8not extend beyond four years from the date the employee reported for active service, plus 20.9any additional time the employee may be legally required to serve. 20.10(b) Subject to the limits under paragraph (g), Each school district shall pay to each 20.11eligible member of the National Guard or other reserve component of the armed forces 20.12of the United States an amount equal to the difference between the member's base active 20.13duty military salary and the salary the member would be paid as an active school district 20.14employee, including any adjustments the member would have received if not on leave 20.15of absence. The pay differential must be based on a comparison between the member's 20.16daily base rate of active duty pay, calculated by dividing the member's base military 20.17monthly salary by the number of paid days in the month, and the member's daily rate of 20.18pay for the member's school district salary, calculated by dividing the member's total 20.19school district salary by the number of contract days. The member's salary as a school 20.20district employee must include the member's basic salary and any additional salary the 20.21member earns from the school district for cocurricular and extracurricular activities. The 20.22differential payment under this paragraph must be the difference between the daily base 20.23rates of military pay times the number of school district contract days the member misses 20.24because of military active duty. This payment may be made only to a person whose daily 20.25base rate of active duty pay is less than the person's daily rate of pay as an active school 20.26district employee. Payments may be made at the intervals at which the member received 20.27pay as a school district employee. Payment under this section must not extend beyond 20.28four years from the date the employee reported for active service, plus any additional time 20.29the employee may be legally required to serve. 20.30(c) An eligible member of the reserve components of the armed forces of the United 20.31States is a reservist or National Guard member who was an employee of a political 20.32subdivision at the time the member reported for active service on or after May 29, 2003, 20.33or who is on active service on May 29, 2003. 20.34(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a 20.35statutory or home rule charter city, county, town, or other political subdivision has total 21.1discretion regarding employee benefit continuation for a member who reports for active 21.2service and the terms and conditions of any benefit. 21.3(e) A school district must continue the employee's enrollment in health and dental 21.4coverage, and the employer contribution toward that coverage, until the employee is 21.5covered by health and dental coverage provided by the armed forces. If the employee had 21.6elected dependent coverage for health or dental coverage as of the time that the employee 21.7reported for active service, a school district must offer the employee the option to continue 21.8the dependent coverage at the employee's own expense. A school district must permit 21.9the employee to continue participating in any pretax account in which the employee 21.10participated when the employee reported for active service, to the extent of employee pay 21.11available for that purpose. 21.12(f) For purposes of this section, "active service" has the meaning given in section 21.13190.05, subdivision 5 , but excludes service performed exclusively for purposes of: 21.14(1) basic combat training, advanced individual training, annual training, and periodic 21.15inactive duty training; 21.16(2) special training periodically made available to reserve members; and 21.17(3) service performed in accordance with section 190.08, subdivision 3. 21.18(g) A school district making payments under paragraph (b) shall place a sum equal 21.19to any difference between the amount of salary that would have been paid to the employee 21.20who is receiving the payments and the amount of salary being paid to substitutes for 21.21that employee into a special fund that must be used to pay or partially pay the deployed 21.22employee's payments under paragraph (b). A school district is required to pay only this 21.23amount to the deployed school district employee. new text begin When an employee of a school district new text end 21.24 new text begin who as a member of the National Guard or any other reserve unit of the United States new text end 21.25 new text begin armed forces, reports for active service as defined in section 190.05, subdivision 5, the new text end 21.26 new text begin district must place into a special service members' aggregate salary savings account the new text end 21.27 new text begin amount of salary the district would have paid to the employee during the employee's leave new text end 21.28 new text begin for military service. The district must use the combined proceeds in the account only to new text end 21.29 new text begin fully pay the salary differentials of all eligible deployed employees in the district, as new text end 21.30 new text begin determined under paragraph (b). Funds remaining in the account at the end of the fiscal new text end 21.31 new text begin year after all obligations to employees under this statute have been satisfied may be used new text end 21.32 new text begin to pay for substitutes for the deployed employees, and then for any other purpose. new text end 21.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2012, for school district new text end 21.34 new text begin employees serving in active military duty on or after that date. new text end 22.1    Sec. 31. Laws 2011, First Special Session chapter 11, article 5, section 11, is amended 22.2to read: 22.3    Sec. 11. FUND TRANSFER; FISCAL YEARS 2012 AND 2013 new text begin THROUGH new text end 22.4 new text begin 2015 new text end ONLY. 22.5(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal 22.6years 2012 and 2013 new text begin through 2015 new text end only, the commissioner must approve a request for a 22.7fund transfer if the transfer does not increase state aid obligations to the district or result in 22.8additional property tax authority for the district. This section does not permit transfers 22.9from the community service fund or the food service fund. 22.10(b) A school board may approve a fund transfer under paragraph (a) only after 22.11adopting a resolution stating the fund transfer will not diminish instructional opportunities 22.12for students. 22.13 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.14    Sec. 32. new text begin APPROPRIATION. new text end 22.15     new text begin Subdivision 1. new text end new text begin Department of Education. new text end new text begin The sums shown are added to or, if new text end 22.16 new text begin shown in parentheses, subtracted from, the appropriations in Laws 2011, First Special new text end 22.17 new text begin Session chapter 11, or any appropriation that replaces those appropriations, to the new text end 22.18 new text begin Department of Education for the purposes specified. The appropriations are from the new text end 22.19 new text begin general fund, or another named fund, and are available for the fiscal years indicated for new text end 22.20 new text begin each purpose. new text end 22.21     new text begin Subd. 2. new text end new text begin General education aid. new text end new text begin For general education aid under Minnesota new text end 22.22 new text begin Statutes, section 126C.13, subdivision 4: new text end 22.23 new text begin $ new text end new text begin (311,000) new text end new text begin ..... new text end new text begin 2012 new text end 22.24 new text begin $ new text end new text begin (678,000) new text end new text begin ..... new text end new text begin 2013 new text end 22.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.26    Sec. 33. new text begin REVISOR'S INSTRUCTION. new text end 22.27 new text begin In Minnesota Statutes and Rules, the revisor of statutes shall substitute the terms new text end 22.28 new text begin "English learner," "EL," or similar term for "limited English proficient," "English language new text end 22.29 new text begin learner," "LEP," "ELL," or similar term when referring to early childhood through grade 12 new text end 22.30 new text begin education. The revisor shall also make grammatical changes related to the changes in term. new text end 22.31    Sec. 34. new text begin REPEALER. new text end 23.1 new text begin (a) Minnesota Statutes 2010, section 124D.09, subdivision 23, new text end new text begin is repealed effective new text end 23.2 new text begin for the 2012-2013 school year and later. new text end 23.3 new text begin (b) Minnesota Statutes 2010, section 127A.47, subdivision 2, new text end new text begin is repealed. new text end 23.4ARTICLE 2 23.5EDUCATION EXCELLENCE 23.6    Section 1. Minnesota Statutes 2010, section 120A.22, subdivision 2, is amended to 23.7read: 23.8    Subd. 2. Applicability. This section and sections 120A.24; 120A.26; ; 23.9120A.30 ; 120A.32; and 120A.34 apply only to a child required to receive instruction 23.10according to subdivision 5 and to instruction that is intended to fulfill that requirement. 23.11    Sec. 2. Minnesota Statutes 2011 Supplement, section 120B.12, subdivision 2, is 23.12amended to read: 23.13    Subd. 2. Identification; report. For the 2011-2012 school year and later, each 23.14school district shall identify before the end of kindergarten, grade 1, and grade 2 students 23.15who are not reading at grade level before the end of the current school year. Reading 23.16assessments must identify and evaluate students' areas of academic need related to 23.17literacy. The district must use a locally adopted assessment and annually report summary 23.18assessment results to the commissioner by June new text begin July new text end 1. 23.19    Sec. 3. Minnesota Statutes 2010, section 120B.13, subdivision 1, is amended to read: 23.20    Subdivision 1. Program structure; training programs for teachers. (a) The 23.21advanced placement and international baccalaureate programs are well-established 23.22academic programs for mature, academically directed high school students. These 23.23programs, in addition to providing academic rigor, offer sound curricular design, 23.24accountability, comprehensive external assessment, feedback to students and teachers, 23.25and the opportunity for high school students to compete academically on a global level. 23.26Advanced placement and international baccalaureate programs allow students to leave 23.27high school with the academic skills and self-confidence to succeed in college and 23.28beyond. The advanced placement and international baccalaureate programs help provide 23.29Minnesota students with world-class educational opportunity. 23.30(b) Critical to schools' educational success is ongoing advanced 23.31placement/international baccalaureate-approved teacher training. A secondary teacher 23.32assigned by a district to teach an advanced placement or international baccalaureate course 23.33or other interested educator may participate in a training program offered by The College 24.1Board or International Baccalaureate North America, Inc. The state may pay a portion 24.2of the tuition, room, board, and out-of-state travel costs a teacher or other interested 24.3educator incurs in participating in a training program. The commissioner shall determine 24.4application procedures and deadlines, select teachers and other interested educators to 24.5participate in the training program, and determine the payment process and amount of the 24.6subsidy. The procedures determined by the commissioner shall, to the extent possible, 24.7ensure that advanced placement and international baccalaureate courses become available 24.8in all parts of the state and that a variety of course offerings are available in school districts. 24.9This subdivision does not prevent teacher or other interested educator participation in 24.10training programs offered by The College Board or International Baccalaureate North 24.11America, Inc., when tuition is paid by a source other than the state. 24.12    Sec. 4. Minnesota Statutes 2011 Supplement, section 120B.30, subdivision 1, is 24.13amended to read: 24.14    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts 24.15with appropriate technical qualifications and experience and stakeholders, consistent with 24.16subdivision 1a, shall include in the comprehensive assessment system, for each grade 24.17level to be tested, state-constructed tests developed from and aligned with the state's 24.18required academic standards under section 120B.021, include multiple choice questions, 24.19and be administered annually to all students in grades 3 through 8. State-developed high 24.20school tests aligned with the state's required academic standards under section 120B.021 24.21and administered to all high school students in a subject other than writing must include 24.22multiple choice questions. The commissioner shall establish one or more months during 24.23which schools shall administer the tests to students each school year. For students enrolled 24.24in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 24.25mathematics, and writing shall fulfill students' basic skills testing requirements for a 24.26passing state notation. The passing scores of basic skills tests in reading and mathematics 24.27are the equivalent of 75 percent correct for students entering grade 9 based on the 24.28first uniform test administered in February 1998. Students who have not successfully 24.29passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass 24.30the graduation-required assessments for diploma under paragraph (c) new text begin , except that for new text end 24.31 new text begin the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's new text end 24.32 new text begin graduation test requirement for math by complying with paragraph (d), clauses (1) and (3) new text end . 24.33(b) The state assessment system must be aligned to the most recent revision of 24.34academic standards as described in section 120B.023 in the following manner: 24.35(1) mathematics; 25.1(i) grades 3 through 8 beginning in the 2010-2011 school year; and 25.2(ii) high school level beginning in the 2013-2014 school year; 25.3(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 25.4school year; and 25.5(3) language arts and reading; grades 3 through 8 and high school level beginning in 25.6the 2012-2013 school year. 25.7    (c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 25.8following options shall fulfill students' state graduation test requirements: 25.9    (1) for reading and mathematics: 25.10    (i) obtaining an achievement level equivalent to or greater than proficient as 25.11determined through a standard setting process on the Minnesota comprehensive 25.12assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 25.13score as determined through a standard setting process on the graduation-required 25.14assessment for diploma in grade 10 for reading and grade 11 for mathematics or 25.15subsequent retests; 25.16    (ii) achieving a passing score as determined through a standard setting process on the 25.17state-identified language proficiency test in reading and the mathematics test for English 25.18language learners or the graduation-required assessment for diploma equivalent of those 25.19assessments for students designated as English language learners; 25.20    (iii) achieving an individual passing score on the graduation-required assessment for 25.21diploma as determined by appropriate state guidelines for students with an individualized 25.22education program or 504 plan; 25.23    (iv) obtaining achievement level equivalent to or greater than proficient as 25.24determined through a standard setting process on the state-identified alternate assessment 25.25or assessments in grade 10 for reading and grade 11 for mathematics for students with 25.26an individualized education program; or 25.27    (v) achieving an individual passing score on the state-identified alternate assessment 25.28or assessments as determined by appropriate state guidelines for students with an 25.29individualized education program; and 25.30    (2) for writing: 25.31    (i) achieving a passing score on the graduation-required assessment for diploma; 25.32    (ii) achieving a passing score as determined through a standard setting process on 25.33the state-identified language proficiency test in writing for students designated as English 25.34language learners; 26.1    (iii) achieving an individual passing score on the graduation-required assessment for 26.2diploma as determined by appropriate state guidelines for students with an individualized 26.3education program or 504 plan; or 26.4    (iv) achieving an individual passing score on the state-identified alternate assessment 26.5or assessments as determined by appropriate state guidelines for students with an 26.6individualized education program. 26.7    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school 26.8year to the 2009-2010 school year who do not pass the mathematics graduation-required 26.9assessment for diploma under paragraph (c) are eligible to receive a high school diploma 26.10if they: 26.11(1) complete with a passing score or grade all state and local coursework and credits 26.12required for graduation by the school board granting the students their diploma; 26.13(2) participate in district-prescribed academic remediation in mathematics; and 26.14    (3) fully participate in at least two retests of the mathematics GRAD test or until 26.15they pass the mathematics GRAD test, whichever comes first. A school, district, or charter 26.16school must place on the high school transcript a student's current pass status for each 26.17subject that has a required graduation assessment. 26.18In addition, the school board granting the students their diplomas may formally 26.19decide to include a notation of high achievement on the high school diplomas of those 26.20graduating seniors who, according to established school board criteria, demonstrate 26.21exemplary academic achievement during high school. 26.22(e) The 3rd through 8th grade and high school test results shall be available to 26.23districts for diagnostic purposes affecting student learning and district instruction and 26.24curriculum, and for establishing educational accountability. The commissioner must 26.25disseminate to the public the high school test results upon receiving those results. 26.26    (f) The 3rd through 8th grade and high school tests must be aligned with state 26.27academic standards. The commissioner shall determine the testing process and the order 26.28of administration. The statewide results shall be aggregated at the site and district level, 26.29consistent with subdivision 1a. 26.30    (g) In addition to the testing and reporting requirements under this section, the 26.31commissioner shall include the following components in the statewide public reporting 26.32system: 26.33    (1) uniform statewide testing of all students in grades 3 through 8 and at the high 26.34school level that provides appropriate, technically sound accommodations or alternate 26.35assessments; 27.1    (2) educational indicators that can be aggregated and compared across school 27.2districts and across time on a statewide basis, including average daily attendance, high 27.3school graduation rates, and high school drop-out rates by age and grade level; 27.4    (3) state results on the American College Test; and 27.5    (4) state results from participation in the National Assessment of Educational 27.6Progress so that the state can benchmark its performance against the nation and other 27.7states, and, where possible, against other countries, and contribute to the national effort 27.8to monitor achievement. 27.9    Sec. 5. Minnesota Statutes 2011 Supplement, section 122A.40, subdivision 5, is 27.10amended to read: 27.11    Subd. 5. Probationary period. (a) The first three consecutive years of a teacher's 27.12first teaching experience in Minnesota in a single district is deemed to be a probationary 27.13period of employment, and, the probationary period in each district in which the teacher is 27.14thereafter employed shall be one year. The school board must adopt a plan for written 27.15evaluation of teachers during the probationary period that is consistent with subdivision 27.168. Evaluation must occur at least three times periodically throughout each school year 27.17for a teacher performing services during that school year; the first evaluation must occur 27.18within the first 90 days of teaching service. Days devoted to parent-teacher conferences, 27.19teachers' workshops, and other staff development opportunities and days on which a 27.20teacher is absent from school must not be included in determining the number of school 27.21days on which a teacher performs services. Except as otherwise provided in paragraph (b), 27.22during the probationary period any annual contract with any teacher may or may not be 27.23renewed as the school board shall see fit. However, the board must give any such teacher 27.24whose contract it declines to renew for the following school year written notice to that 27.25effect before June new text begin July new text end 1. If the teacher requests reasons for any nonrenewal of a teaching 27.26contract, the board must give the teacher its reason in writing, including a statement 27.27that appropriate supervision was furnished describing the nature and the extent of such 27.28supervision furnished the teacher during the employment by the board, within ten days 27.29after receiving such request. The school board may, after a hearing held upon due notice, 27.30discharge a teacher during the probationary period for cause, effective immediately, 27.31under section 122A.44. 27.32(b) A board must discharge a probationary teacher, effective immediately, upon 27.33receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the teacher's 27.34license has been revoked due to a conviction for child abuse or sexual abuse. 28.1(c) A probationary teacher whose first three years of consecutive employment are 28.2interrupted for active military service and who promptly resumes teaching consistent with 28.3federal reemployment timelines for uniformed service personnel under United States 28.4Code, title 38, section 4312(e), is considered to have a consecutive teaching experience 28.5for purposes of paragraph (a). 28.6(d) A probationary teacher must complete at least 120 days of teaching service each 28.7year during the probationary period. Days devoted to parent-teacher conferences, teachers' 28.8workshops, and other staff development opportunities and days on which a teacher is 28.9absent from school do not count as days of teaching service under this paragraph. 28.10 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2012-2013 school year and new text end 28.11 new text begin later. new text end 28.12    Sec. 6. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read: 28.13    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph 28.14(b), a board may discharge a continuing-contract teacher, effective immediately, upon any 28.15of the following grounds: 28.16(1) immoral conduct, insubordination, or conviction of a felony; 28.17(2) conduct unbecoming a teacher which requires the immediate removal of the 28.18teacher from classroom or other duties; 28.19(3) failure without justifiable cause to teach without first securing the written release 28.20of the school board; 28.21(4) gross inefficiency which the teacher has failed to correct after reasonable written 28.22notice; 28.23(5) willful neglect of duty; or 28.24(6) continuing physical or mental disability subsequent to a 12 months leave of 28.25absence and inability to qualify for reinstatement in accordance with subdivision 12. 28.26For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 28.27discriminatory practice described in section 363A.13. 28.28Prior to discharging a teacher under this paragraph, the board must notify the 28.29teacher in writing and state its ground for the proposed discharge in reasonable detail. 28.30Within ten days after receipt of this notification the teacher may make a written request 28.31for a hearing before the board and it shall be granted before final action is taken. The 28.32board may, however, suspend a teacher with pay pending the conclusion of such new text begin the new text end 28.33hearing and determination of the issues raised in the hearing after charges have been 28.34filed which constitute ground for discharge. new text begin If a teacher has been charged with a felony new text end 28.35 new text begin and the underlying conduct that is the subject of the felony charge is a ground for a new text end 29.1 new text begin proposed immediate discharge, the suspension pending the conclusion of the hearing and new text end 29.2 new text begin determination of the issues may be without pay. If a hearing under this paragraph is held, new text end 29.3 new text begin the board must reimburse the teacher for any salary or compensation withheld if the new text end 29.4 new text begin final decision of the board or the arbitrator does not result in a penalty to or suspension, new text end 29.5 new text begin termination, or discharge of the teacher. new text end 29.6(b) A board must discharge a continuing-contract teacher, effective immediately, 29.7upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 29.8teacher's license has been revoked due to a conviction for child abuse or sexual abuse. 29.9 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 29.10    Sec. 7. Minnesota Statutes 2010, section 123B.04, is amended to read: 29.11123B.04 SITE DECISION-MAKING new text begin ; INDIVIDUALIZED LEARNING new text end 29.12AGREEMENT new text begin ; OTHER AGREEMENTS new text end . 29.13    Subdivision 1. Definition. "Education site" means a separate facility. A program 29.14within a facility or within a district is an education site if the school board recognizes it 29.15as a site. 29.16     new text begin Subd. 1a. new text end new text begin Individualized learning and instruction; improved student new text end 29.17 new text begin achievement. new text end new text begin To promote individualized learning and instruction and improve student new text end 29.18 new text begin achievement under subdivisions 4 and 4a, a participating school board under this section new text end 29.19 new text begin may consider how to: new text end 29.20 new text begin (1) assist a school site to adapt instruction to the needs and aptitudes of individual new text end 29.21 new text begin students, and establish goals and standards for individual students in addition to the state new text end 29.22 new text begin academic standards applicable to all students; new text end 29.23 new text begin (2) coordinate the pace of instruction and learning with the needs and aptitudes of new text end 29.24 new text begin individual students at a school site; new text end 29.25 new text begin (3) provide useful data and assist with research in developing and improving new text end 29.26 new text begin innovative, cost-effective, research-based individualized learning, instruction, and new text end 29.27 new text begin assessment under this section and section 124D.10; new text end 29.28 new text begin (4) demonstrate and help evaluate instructional alternatives to age-based grade new text end 29.29 new text begin progression; new text end 29.30 new text begin (5) more effectively motivate students and teachers; and new text end 29.31 new text begin (6) expand use of learning technology to support individualized learning, instruction, new text end 29.32 new text begin assessment, and achievement. new text end 30.1    Subd. 2. Agreement. new text begin (a) The school board and a school site may enter into an new text end 30.2 new text begin agreement under this section solely to develop and implement an individualized learning new text end 30.3 new text begin and achievement contract under subdivision 4. new text end 30.4(a) new text begin (b) new text end Upon the request of 60 percent of the licensed employees of a site or a school 30.5site decision-making team, the school board shall enter into discussions to reach an 30.6agreement concerning the governance, management, or control of the school. A school 30.7site decision-making team may include the school principal, teachers in the school or 30.8their designee, other employees in the school, representatives of pupils in the school, or 30.9other members in the community. A school site decision-making team must include at 30.10least one parent of a pupil in the school. For purposes of formation of a new site, a school 30.11site decision-making team may be a team of teachers that is recognized by the board as 30.12a site. The school site decision-making team shall include the school principal or other 30.13person having general control and supervision of the school. The site decision-making 30.14team must reflect the diversity of the education site. At least one-half of the members 30.15shall be employees of the district, unless an employee is the parent of a student enrolled 30.16in the school site, in which case the employee may elect to serve as a parent member of 30.17the site team. 30.18(b) new text begin (c) new text end School site decision-making agreements must delegate powers, duties, and 30.19broad management responsibilities to site teams and involve staff members, students as 30.20appropriate, and parents in decision making. 30.21(c) new text begin (d) new text end An agreement shall include a statement of powers, duties, responsibilities, 30.22and authority to be delegated to and within the site. 30.23(d) new text begin (e) new text end An agreement may include: 30.24(1) an achievement contract according to subdivision 4; 30.25(2) a mechanism to allow principals, a site leadership team, or other persons having 30.26general control and supervision of the school, to make decisions regarding how financial 30.27and personnel resources are best allocated at the site and from whom goods or services 30.28are purchased; 30.29(3) a mechanism to implement parental involvement programs under section 30.30124D.895 and to provide for effective parental communication and feedback on this 30.31involvement at the site level; 30.32(4) a provision that would allow the team to determine who is hired into licensed 30.33and nonlicensed positions; 30.34(5) a provision that would allow teachers to choose the principal or other person 30.35having general control; 30.36(6) an amount of revenue allocated to the site under subdivision 3; and 31.1(7) any other powers and duties determined appropriate by the board. 31.2The school board of the district remains the legal employer under clauses (4) and (5). 31.3(e) new text begin (f) new text end Any powers or duties not delegated to the school site management team in the 31.4school site management agreement shall remain with the school board. 31.5(f) new text begin (g) new text end Approved agreements shall be filed with the commissioner. If a school board 31.6denies a request or the school site and school board fail to reach an agreement to enter 31.7into a school site management agreement, the school board shall provide a copy of the 31.8request and the reasons for its denial to the commissioner. 31.9(g) new text begin (h) new text end A site decision-making grant program is established, consistent with this 31.10subdivision, to allow sites to implement an agreement that at least: 31.11(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 31.12to the students at that site; 31.13(2) includes a provision, consistent with current law and the collective bargaining 31.14agreement in effect, that allows the site team to decide who is selected from within the 31.15district for licensed and nonlicensed positions at the site and to make staff assignments 31.16in the site; and 31.17(3) includes a completed performance agreement under subdivision 4. 31.18The commissioner shall establish the form and manner of the application for a grant 31.19and annually, at the end of each fiscal year, report to the house of representatives and 31.20senate committees having jurisdiction over education on the progress of the program. 31.21    Subd. 3. Revenue and cost allocation. Revenue for a fiscal year received or 31.22receivable by the district shall be allocated to education sites based on the agreement 31.23between the school board and the site decision-making team. Revenue shall remain 31.24allocated to each site until used by the site. The site teams and the board may enter an 31.25agreement that permits the district to provide services and retain the revenue required to 31.26pay for the services provided. The district remains responsible for legally entering into 31.27contracts and expending funds. For the purposes of this subdivision, "allocation" means 31.28that the determination of the use of the revenue shall be under the control of the site. The 31.29district may charge the accounts of each site the actual costs of goods and services from 31.30the general or capital funds attributable to the site. 31.31    Subd. 4. Achievement contract. A school board may enter a written education 31.32site achievement contract with each site decision-making team for the purpose of new text begin : (1) new text end 31.33setting new text begin individualized new text end learning performance expectations new text begin and achievement measures and new text end 31.34 new text begin short- and long-term educational goals new text end for new text begin each student at new text end that site, including the goals 31.35for improvement in each area of new text begin ; (2) recognizing each student's educational needs and new text end 31.36 new text begin aptitudes and levels of academic attainment, whether on grade level or above or below new text end 32.1 new text begin grade level, so as to improve new text end student performance new text begin through such means as a cost-effective, new text end 32.2 new text begin research-based formative assessment system designed to promote individualized learning new text end 32.3 new text begin and assessment; (3) using student performance data to diagnose a student's academic new text end 32.4 new text begin strengths and weaknesses and indicate to the student's teachers the specific skills and new text end 32.5 new text begin concepts that need to be introduced to the student and developed through academic new text end 32.6 new text begin instruction or applied learning, organized by strands within subject areas and linked to new text end 32.7 new text begin state and local academic standards new text end during the next year, a plan to assist new text begin consistent with new text end 32.8 new text begin the student's short- and long-term educational goals; and (4) assisting new text end the education site 32.9if their new text begin progress in achieving student or contract new text end goals are not achieved, and new text begin or new text end other 32.10performance expectations and new text begin or new text end measures determined new text begin agreed to new text end by the board and the site 32.11decision-making team new text begin are not realized or implemented new text end . 32.12     new text begin Subd. 4a. new text end new text begin Additional site agreements premised on successful achievement new text end 32.13 new text begin contracts. new text end new text begin A school board that enters into a written education achievement contract with a new text end 32.14 new text begin school site under subdivision 4 where the student performance data at the site demonstrate new text end 32.15 new text begin at least three consecutive school years of improved student achievement consistent with new text end 32.16 new text begin the terms of the achievement contract may seek to establish a similar achievement contract new text end 32.17 new text begin with other school sites in the district. new text end 32.18    Subd. 5. Commissioner's role. The commissioner of education, in consultation 32.19with appropriate educational organizations, shall: 32.20(1) upon request, provide technical support for districts and sites with agreements 32.21under this section; 32.22(2) conduct and compile research on the effectiveness of site decision making; and 32.23(3) periodically report on and evaluate the effectiveness of site management 32.24agreements on a statewide basis. 32.25 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 32.26    Sec. 8. Minnesota Statutes 2011 Supplement, section 123B.147, subdivision 3, is 32.27amended to read: 32.28    Subd. 3. Duties; evaluation. (a) The principal shall provide administrative, 32.29supervisory, and instructional leadership services, under the supervision of the 32.30superintendent of schools of the district and according to the policies, rules, and 32.31regulations of the school board, for the planning, management, operation, and evaluation 32.32of the education program of the building or buildings to which the principal is assigned. 32.33(b) To enhance a principal's leadership skills and support and improve teaching 32.34practices, school performance, and student achievement, a district must develop and 32.35implement a performance-based system for annually evaluating school principals assigned 33.1to supervise a school building within the district. The evaluation must be designed 33.2to improve teaching and learning by supporting the principal in shaping the school's 33.3professional environment and developing teacher quality, performance, and effectiveness. 33.4The annual evaluation must: 33.5(1) support and improve a principal's instructional leadership, organizational 33.6management, and professional development, and strengthen the principal's capacity in the 33.7areas of instruction, supervision, evaluation, and teacher development; 33.8(2) include formative and summative evaluations; 33.9(3) be consistent with a principal's job description, a district's long-term plans and 33.10goals, and the principal's own professional multiyear growth plans and goals, all of which 33.11must support the principal's leadership behaviors and practices, rigorous curriculum, 33.12school performance, and high-quality instruction; 33.13(4) include on-the-job observations and previous evaluations; 33.14(5) allow surveys to help identify a principal's effectiveness, leadership skills and 33.15processes, and strengths and weaknesses in exercising leadership in pursuit of school 33.16success; 33.17(6) use longitudinal data on student academic growth as an new text begin 35 percent of the new text end 33.18evaluation component and incorporate district achievement goals and targets; 33.19(7) be linked to professional development that emphasizes improved teaching and 33.20learning, curriculum and instruction, student learning, and a collaborative professional 33.21culture; and 33.22(8) for principals not meeting standards of professional practice or other criteria 33.23under this subdivision, implement a plan to improve the principal's performance and 33.24specify the procedure and consequence if the principal's performance is not improved. 33.25The provisions of this paragraph are intended to provide districts with sufficient 33.26flexibility to accommodate district needs and goals related to developing, supporting, 33.27and evaluating principals. 33.28 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for the 2013-2014 school year and new text end 33.29 new text begin later. new text end 33.30    Sec. 9. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 3, is 33.31amended to read: 33.32    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this 33.33subdivision have the meanings given them. 34.1    "Application" to receive approval as an authorizer means the proposal an eligible 34.2authorizer submits to the commissioner under paragraph (c) before that authorizer is able 34.3to submit any affidavit to charter to a school. 34.4    "Application" under subdivision 4 means the charter school business plan a 34.5school developer submits to an authorizer for approval to establish a charter school that 34.6documents the school developer's mission statement, school purposes, program design, 34.7financial plan, governance and management structure, and background and experience, 34.8plus any other information the authorizer requests. The application also shall include a 34.9"statement of assurances" of legal compliance prescribed by the commissioner. 34.10    "Affidavit" means a written statement the authorizer submits to the commissioner 34.11for approval to establish a charter school under subdivision 4 attesting to its review and 34.12approval process before chartering a school. 34.13    (b) The following organizations may authorize one or more charter schools: 34.14    (1) a school board; intermediate school district school board; education district 34.15organized under sections 123A.15 to 123A.19; 34.16    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 34.17of 1986, excluding a nonpublic sectarian or religious institution, any person other than a 34.18natural person that directly or indirectly, through one or more intermediaries, controls, 34.19is controlled by, or is under common control with the nonpublic sectarian or religious 34.20institution, and any other charitable organization under this clause that in the federal IRS 34.21Form 1023, Part IV, describes activities indicating a religious purpose, that: 34.22    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 34.23Foundations; 34.24    (ii) is registered with the attorney general's office; and 34.25    (iii) is incorporated in the state of Minnesota and has been operating continuously 34.26for at least five years but does not operate a charter school; 34.27    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or 34.28four-year degrees and is registered with the Minnesota Office of Higher Education under 34.29chapter 136A; community college, state university, or technical college governed by the 34.30Board of Trustees of the Minnesota State Colleges and Universities; or the University 34.31of Minnesota; 34.32    (4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 34.33and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 34.34of 1986, may authorize one or more charter schools if the charter school has operated 34.35for at least three years under a different authorizer and if the nonprofit corporation has 34.36existed for at least 25 years; or 35.1    (5) single-purpose authorizers that are charitable, nonsectarian organizations formed 35.2under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state 35.3of Minnesota whose sole purpose is to charter schools. Eligible organizations interested 35.4in being approved as an authorizer under this paragraph must submit a proposal to the 35.5commissioner that includes the provisions of paragraph (c) and a five-year financial plan. 35.6Such authorizers shall consider and approve applications using the criteria provided in 35.7subdivision 4 and shall not limit the applications it solicits, considers, or approves to any 35.8single curriculum, learning program, or method. 35.9    (c) An eligible authorizer under this subdivision must apply to the commissioner for 35.10approval as an authorizer before submitting any affidavit to the commissioner to charter 35.11a school. The application for approval as a charter school authorizer must demonstrate 35.12the applicant's ability to implement the procedures and satisfy the criteria for chartering a 35.13school under this section. The commissioner must approve or disapprove an application 35.14within 45 business days of the application deadline. If the commissioner disapproves 35.15the application, the commissioner must notify the applicant of the specific deficiencies 35.16in writing and the applicant then has 20 business days to address the deficiencies to the 35.17commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 35.18business days to make a final decision to approve or disapprove the application. Failing to 35.19address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 35.20be an authorizer. The commissioner, in establishing criteria for approval, must consider 35.21the applicant's: 35.22    (1) capacity and infrastructure; 35.23    (2) application criteria and process; 35.24    (3) contracting process; 35.25    (4) ongoing oversight and evaluation processes; and 35.26    (5) renewal criteria and processes. 35.27    (d) An applicant must include in its application to the commissioner to be an 35.28approved authorizer at least the following: 35.29    (1) how chartering schools is a way for the organization to carry out its mission; 35.30    (2) a description of the capacity of the organization to serve as an authorizer, 35.31including the personnel who will perform the authorizing duties, their qualifications, the 35.32amount of time they will be assigned to this responsibility, and the financial resources 35.33allocated by the organization to this responsibility; 35.34    (3) a description of the application and review process the authorizer will use to 35.35make decisions regarding the granting of charters; 36.1    (4) a description of the type of contract it will arrange with the schools it charters 36.2that meets the provisions of subdivision 6; 36.3    (5) the process to be used for providing ongoing oversight of the school consistent 36.4with the contract expectations specified in clause (4) that assures that the schools chartered 36.5are complying with both the provisions of applicable law and rules, and with the contract; 36.6    (6) a description of the criteria and process the authorizer will use to grant expanded 36.7applications under subdivision 4, paragraph (j); 36.8    (7) the process for making decisions regarding the renewal or termination of 36.9the school's charter based on evidence that demonstrates the academic, organizational, 36.10and financial competency of the school, including its success in increasing student 36.11achievement and meeting the goals of the charter school agreement; and 36.12    (8) an assurance specifying that the organization is committed to serving as an 36.13authorizer for the full five-year term. 36.14    (e) A disapproved applicant under this section may resubmit an application during a 36.15future application period. 36.16    (f) If the governing board of an approved authorizer that has chartered multiple 36.17schools votes to withdraw as an approved authorizer for a reason unrelated to any 36.18cause under subdivision 23, the authorizer must notify all its chartered schools and the 36.19commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 in 36.20the next calendar year. The commissioner may approve the transfer of a charter school 36.21to a new authorizer under this paragraph after the new authorizer submits an affidavit to 36.22the commissioner. 36.23    (g) The authorizer must participate in department-approved training. 36.24    (h) An authorizer that chartered a school before August 1, 2009, must apply by 36.25June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an 36.26authorizer under this section. For purposes of this paragraph, an authorizer that fails to 36.27submit a timely application is ineligible to charter a school. 36.28    (i) The commissioner shall review an authorizer's performance every five years in 36.29a manner and form determined by the commissioner and may review an authorizer's 36.30performance more frequently at the commissioner's own initiative or at the request of a 36.31charter school operator, charter school board member, or other interested party. The 36.32commissioner, after completing the review, shall transmit a report with findings to the 36.33authorizer. If, consistent with this section, the commissioner finds that an authorizer has 36.34not fulfilled the requirements of this section, the commissioner may subject the authorizer 36.35to corrective action, which may include terminating the contract with the charter school 36.36board of directors of a school it chartered. The commissioner must notify the authorizer 37.1in writing of any findings that may subject the authorizer to corrective action and 37.2the authorizer then has 15 business days to request an informal hearing before the 37.3commissioner takes corrective action. If the commissioner terminates a contract between 37.4an authorizer and a charter school under this paragraph, the commissioner may assist the 37.5charter school in acquiring a new authorizer. 37.6    (j) The commissioner may at any time take corrective action against an authorizer, 37.7including terminating an authorizer's ability to charter a school for: 37.8    (1) failing to demonstrate the criteria under paragraph (c) under which the 37.9commissioner approved the authorizer; 37.10    (2) violating a term of the chartering contract between the authorizer and the charter 37.11school board of directors; 37.12    (3) unsatisfactory performance as an approved authorizer; or 37.13    (4) any good cause shown that provides the commissioner a legally sufficient reason 37.14to take corrective action against an authorizer. 37.15    Sec. 10. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 4, is 37.16amended to read: 37.17    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from 37.18a school developer, may charter a licensed teacher under section 122A.18, subdivision 37.191 , or a group of individuals that includes one or more licensed teachers under section 37.20122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the 37.21authorizer's affidavit under paragraph (b). The school must be organized and operated as a 37.22nonprofit corporation under chapter 317A and the provisions under the applicable chapter 37.23shall apply to the school except as provided in this section. 37.24    Notwithstanding sections 465.717 and 465.719, a school district, subject to this 37.25section and section 124D.11, may create a corporation for the purpose of establishing a 37.26charter school. 37.27    (b) Before the operators may establish and operate a school, the authorizer must file 37.28an affidavit with the commissioner stating its intent to charter a school. An authorizer 37.29must file a separate affidavit for each school it intends to charter. The affidavit must 37.30state the terms and conditions under which the authorizer would charter a school and 37.31how the authorizer intends to oversee the fiscal and student performance of the charter 37.32school and to comply with the terms of the written contract between the authorizer 37.33and the charter school board of directors under subdivision 6. The commissioner must 37.34approve or disapprove the authorizer's affidavit within 60 business days of receipt of the 37.35affidavit. If the commissioner disapproves the affidavit, the commissioner shall notify 38.1the authorizer of the deficiencies in the affidavit and the authorizer then has 20 business 38.2days to address the deficiencies. If the authorizer does not address deficiencies to the 38.3commissioner's satisfaction, the commissioner's disapproval is final. Failure to obtain 38.4commissioner approval precludes an authorizer from chartering the school that is the 38.5subject of this affidavit. 38.6    (c) The authorizer may prevent an approved charter school from opening for 38.7operation if, among other grounds, the charter school violates this section or does not meet 38.8the ready-to-open standards that are part of the authorizer's oversight and evaluation 38.9process or are stipulated in the charter school contract. 38.10    (d) The operators authorized to organize and operate a school, before entering into a 38.11contract or other agreement for professional or other services, goods, or facilities, must 38.12incorporate as a nonprofit corporation under chapter 317A and must establish a board of 38.13directors composed of at least five members who are not related parties until a timely 38.14election for members of the ongoing charter school board of directors is held according to 38.15the school's articles and bylaws under paragraph (f). A charter school board of directors 38.16must be composed of at least five members who are not related parties. Staff members 38.17employed at the school, including teachers providing instruction under a contract with a 38.18cooperative, and all parents or legal guardians of children enrolled in the school are the 38.19voters eligible to elect the members of the school's board of directors. A charter school 38.20must notify eligible voters of the school board election dates at least 30 days before the 38.21election. Board of director meetings must comply with chapter 13D. 38.22    (e) Upon the request of an individual, the charter school must make available 38.23in a timely fashion new text begin A charter school shall publish and maintain on the school's official new text end 38.24 new text begin Web site: (1) new text end the minutes of meetings of the board of directors, and of members and 38.25committees having any board-delegated authority; new text begin , for at least one calendar year from the new text end 38.26 new text begin date of publication; (2) directory information for members of the board of directors and new text end 38.27 new text begin committees having board-delegated authority; and (3) identifying and contact information new text end 38.28 new text begin for the school's authorizer. Identifying and contact information for the school's authorizer new text end 38.29 new text begin must be included in other school materials made available to the public. Upon request of new text end 38.30 new text begin an individual, the charter school must also make available in a timely fashion new text end financial 38.31statements showing all operations and transactions affecting income, surplus, and deficit 38.32during the school's last annual accounting period; and a balance sheet summarizing assets 38.33and liabilities on the closing date of the accounting period. A charter school also must post 38.34on its official Web site information identifying its authorizer and indicate how to contact 38.35that authorizer and include that same information about its authorizer in other school 38.36materials that it makes available to the public. 39.1    (f) Every charter school board member shall attend department-approved ongoing 39.2training throughout the member's term on board governance, including training on 39.3the board's role and responsibilities, employment policies and practices, and financial 39.4management. A board member who does not begin the required initial training within six 39.5months after being seated and complete that training within 12 months of being seated on 39.6the board is ineligible to continue to serve as a board member. new text begin The school shall include in new text end 39.7 new text begin its annual report the training attended by each board member during the previous year. new text end 39.8    (g) The ongoing board must be elected before the school completes its third year of 39.9operation. Board elections must be held during the school year but may not be conducted 39.10on days when the school is closed for holidays or vacations. The charter school board of 39.11directors shall be composed of at least five nonrelated members and include: (i) at least one 39.12licensed teacher employed at the school or a licensed teacher providing instruction under 39.13contract between the charter school and a cooperative; (ii) the parent or legal guardian 39.14of a student enrolled in the charter school who is not an employee of the charter school; 39.15and (iii) an interested community member who is not employed by the charter school and 39.16does not have a child enrolled in the school. The board may be a teacher majority board 39.17composed of teachers described in this paragraph. The chief financial officer and the chief 39.18administrator may only serve as ex-officio nonvoting board members and may not serve 39.19as a voting member of the board. Charter school employees shall not serve on the board 39.20unless item (i) applies. Contractors providing facilities, goods, or services to a charter 39.21school shall not serve on the board of directors of the charter school. Board bylaws shall 39.22outline the process and procedures for changing the board's governance model, consistent 39.23with chapter 317A. A board may change its governance model only: 39.24    (1) by a majority vote of the board of directors and the licensed teachers employed 39.25by the school, including licensed teachers providing instruction under a contract between 39.26the school and a cooperative; and 39.27    (2) with the authorizer's approval. 39.28    Any change in board governance must conform with the board structure established 39.29under this paragraph. 39.30    (h) The granting or renewal of a charter by an authorizer must not be conditioned 39.31upon the bargaining unit status of the employees of the school. 39.32    (i) The granting or renewal of a charter school by an authorizer must not be 39.33contingent on the charter school being required to contract, lease, or purchase services 39.34from the authorizer. Any potential contract, lease, or purchase of service from an 39.35authorizer must be disclosed to the commissioner, accepted through an open bidding 39.36process, and be a separate contract from the charter contract. The school must document 40.1the open bidding process. An authorizer must not enter into a contract to provide 40.2management and financial services for a school that it authorizes, unless the school 40.3documents that it received at least two competitive bids. 40.4    (j) An authorizer may permit the board of directors of a charter school to expand 40.5the operation of the charter school to additional sites or to add additional grades at the 40.6school beyond those described in the authorizer's original affidavit as approved by 40.7the commissioner only after submitting a supplemental affidavit for approval to the 40.8commissioner in a form and manner prescribed by the commissioner. The supplemental 40.9affidavit must document that: 40.10    (1) the proposed expansion plan demonstrates need and projected enrollment; 40.11    (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating 40.12students' improved academic performance and growth on statewide assessments under 40.13chapter 120B; 40.14    (3) the charter school is financially sound and the financing it needs to implement 40.15the proposed expansion exists; and 40.16    (4) the charter school has the governance structure and management capacity to 40.17carry out its expansion. 40.18    (k) The commissioner shall have 30 business days to review and comment on the 40.19supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 40.20the supplemental affidavit and the authorizer then has 20 business days to address, to the 40.21commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 40.22may not expand grades or add sites until the commissioner has approved the supplemental 40.23affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final. 40.24    Sec. 11. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 6, is 40.25amended to read: 40.26    Subd. 6. Charter contract. The authorization for a charter school must be in the 40.27form of a written contract signed by the authorizer and the board of directors of the charter 40.28school. The contract must be completed within 45 business days of the commissioner's 40.29approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 40.30copy of the signed charter contract within ten business days of its execution. The contract 40.31for a charter school must be in writing and contain at least the following: 40.32    (1) a declaration of the purposes in subdivision 1 that the school intends to carry out 40.33and how the school will report its implementation of those purposes; 40.34    (2) a description of the school program and the specific academic and nonacademic 40.35outcomes that pupils must achieve; 41.1    (3) a statement of admission policies and procedures; 41.2    (4) a governance, management, and administration plan for the school; 41.3    (5) signed agreements from charter school board members to comply with all 41.4federal and state laws governing organizational, programmatic, and financial requirements 41.5applicable to charter schools; 41.6    (6) the criteria, processes, and procedures that the authorizer will use for ongoing 41.7oversight of operational, financial, and academic performance; 41.8    (7) the performance evaluation that is a prerequisite for reviewing a charter contract 41.9under subdivision 15; 41.10    (8) types and amounts of insurance liability coverage to be obtained by the charter 41.11school; 41.12    (9) consistent with subdivision 25, paragraph (d), a provision to indemnify and hold 41.13harmless the authorizer and its officers, agents, and employees from any suit, claim, 41.14or liability arising from any operation of the charter school, and the commissioner and 41.15department officers, agents, and employees notwithstanding section 3.736; 41.16    (10) the term of the initial contract, which may be up to three new text begin five new text end years plus an 41.17additional preoperational planning year, and up to five years for a renewed contract or a 41.18contract with a new authorizer after a transfer of authorizers, if warranted by the school's 41.19academic, financial, and operational performance; 41.20    (11) how the board of directors or the operators of the charter school will provide 41.21special instruction and services for children with a disability under sections 125A.03 41.22to 125A.24, and 125A.65, a description of the financial parameters within which the 41.23charter school will operate to provide the special instruction and services to children 41.24with a disability; 41.25    (12) the process and criteria the authorizer intends to use to monitor and evaluate the 41.26fiscal and student performance of the charter school, consistent with subdivision 15; and 41.27    (13) the plan for an orderly closing of the school under chapter 317A, if the closure 41.28is a termination for cause, a voluntary termination, or a nonrenewal of the contract, and 41.29that includes establishing the responsibilities of the school board of directors and the 41.30authorizer and notifying the commissioner, authorizer, school district in which the charter 41.31school is located, and parents of enrolled students about the closure, the transfer of student 41.32records to students' resident districts, and procedures for closing financial operations. 41.33    Sec. 12. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 13, 41.34is amended to read: 42.1    Subd. 13. Length of school year. A charter school must provide instruction each 42.2year for at least the number of days new text begin hours new text end required by section 120A.41. It may provide 42.3instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128. 42.4    Sec. 13. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 15, 42.5is amended to read: 42.6    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written 42.7evaluation of the school's performance before the authorizer renews the charter contract. 42.8The department must review and comment on the authorizer's evaluation process at the 42.9time the authorizer submits its application for approval and each time the authorizer 42.10undergoes its five-year review under subdivision 3, paragraph (e). 42.11    (b) An authorizer shall monitor and evaluate the fiscal, operational, and student 42.12performance of the school, and may for this purpose annually assess a charter school 42.13a fee according to paragraph (c). The agreed-upon fee structure must be stated in the 42.14charter school contract. 42.15    (c) The fee that each charter school pays to an authorizer each year is the greater of: 42.16    (1) the basic formula allowance for that year; or 42.17    (2) the lesser of: 42.18    (i) the maximum fee factor times the basic formula allowance for that year; or 42.19    (ii) the fee factor times the basic formula allowance for that year times the charter 42.20school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 42.21year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 42.22and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 42.233.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later. 42.24    (d) The department and any charter school it charters must not assess or pay a fee 42.25under paragraphs (b) and (c) new text begin An authorizer may not assess a fee for any required services new text end 42.26 new text begin other than as provided in this subdivision new text end . 42.27    (e) For the preoperational planning period, the authorizer may assess a charter school 42.28a fee equal to the basic formula allowance. 42.29    (f) By September 30 of each year, an authorizer shall submit to the commissioner 42.30a statement of expenditures related to chartering activities during the previous school 42.31year ending June 30. A copy of the statement shall be given to all schools chartered by 42.32the authorizer. 42.33    Sec. 14. Minnesota Statutes 2011 Supplement, section 124D.10, subdivision 17a, 42.34is amended to read: 43.1    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school 43.2may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 43.3existing facility to serve as a school or (ii) to construct a new school facility, an authorizer 43.4must submit an affidavit to the commissioner for approval in the form and manner the 43.5commissioner prescribes, and consistent with paragraphs (b) and (c) or (d). 43.6    (b) An affiliated nonprofit building corporation under this subdivision must: 43.7    (1) be incorporated under section 317A and comply with applicable Internal 43.8Revenue Service regulations; 43.9 new text begin (2) comply with applicable Internal Revenue Service regulations, including new text end 43.10 new text begin regulations for "supporting organizations" as defined by the Internal Revenue Service; new text end 43.11    (2) new text begin (3) new text end submit to the commissioner each fiscal year a list of current board members 43.12and a copy of its annual audit; and 43.13    (3) new text begin (4) new text end comply with government data practices law under chapter 13. 43.14An affiliated nonprofit building corporation must not serve as the leasing agent for 43.15property or facilities it does not own. A charter school that leases a facility from an 43.16affiliated nonprofit building corporation that does not own the leased facility is ineligible 43.17to receive charter school lease aid. The state is immune from liability resulting from a 43.18contract between a charter school and an affiliated nonprofit building corporation. 43.19    (c) A charter school may organize an affiliated nonprofit building corporation to 43.20renovate or purchase an existing facility to serve as a school if the charter school: 43.21    (1) has been operating for at least five consecutive school years; 43.22    (2) has had a net positive unreserved general fund balance as of June 30 in the 43.23preceding five fiscal years; 43.24    (3) has a long-range strategic and financial plan; 43.25    (4) completes a feasibility study of available buildings; and 43.26    (5) documents enrollment projections and the need to use an affiliated building 43.27corporation to renovate or purchase an existing facility to serve as a school new text begin ; and new text end 43.28 new text begin (6) has a plan for the renovation or purchase, which describes the parameters and new text end 43.29 new text begin budget for the project new text end . 43.30    (d) A charter school may organize an affiliated nonprofit building corporation to 43.31 new text begin expand an existing school facility or new text end construct a new school facility if the charter school: 43.32    (1) demonstrates the lack of facilities available to serve as a school; 43.33    (2) has been operating for at least eight consecutive school years; 43.34    (3) has had a net positive unreserved general fund balance as of June 30 in the 43.35preceding eight new text begin five new text end fiscal years; 43.36    (4) completes a feasibility study of facility options; 44.1    (5) has a long-range strategic and financial plan that includes enrollment projections 44.2and demonstrates the need for constructing a new school facility; and 44.3    (6) has a new text begin plan for the expansion or new school facility, which describes the new text end 44.4 new text begin parameters and budget for the project. new text end 44.5 new text begin (e) A charter school or an affiliated nonprofit building corporation organized by a new text end 44.6 new text begin charter school must not initiate an installment contract for purchase, or a lease agreement, new text end 44.7 new text begin or solicit bids for new construction, expansion, or remodeling of an educational facility new text end 44.8 new text begin that requires an expenditure in excess of $1,400,000, unless it meets the criteria in new text end 44.9 new text begin paragraph (b) and paragraph (c) or (d), as applicable, and receives a new text end positive review and 44.10comment from the commissioner under section 123B.71. 44.11    Sec. 15. Minnesota Statutes 2011 Supplement, section 124D.10, is amended by adding 44.12a subdivision to read: 44.13     new text begin Subd. 27. new text end new text begin Collaboration between charter school and school district. new text end new text begin (a) A charter new text end 44.14 new text begin school board may voluntarily enter into a two-year, renewable agreement for collaboration new text end 44.15 new text begin to enhance student achievement with a school district within whose geographic boundary new text end 44.16 new text begin it operates. new text end 44.17 new text begin (b) A school district need not be an approved authorizer to enter into a collaboration new text end 44.18 new text begin agreement with a charter school. A charter school need not be authorized by the school new text end 44.19 new text begin district with which it seeks to collaborate. new text end 44.20 new text begin (c) A charter school authorizer is prohibited from requiring a collaboration agreement new text end 44.21 new text begin as a condition of entering into or renewing a charter contract as defined in subdivision 6. new text end 44.22 new text begin (d) Nothing in this subdivision or in the collaboration agreement may impact in any new text end 44.23 new text begin way, the authority or autonomy of the charter school. new text end 44.24 new text begin (e) Nothing in this subdivision or in the collaboration agreement shall cause the state new text end 44.25 new text begin to pay twice for the same student, service or facility or otherwise impact state funding, or new text end 44.26 new text begin the flow thereof, to the school district or the charter school. new text end 44.27 new text begin (f) The collaboration agreement may include, but need not be limited to, new text end 44.28 new text begin collaboration regarding facilities, transportation, training, student achievement, new text end 44.29 new text begin assessments, mutual performance standards and other areas of mutual agreement. new text end 44.30 new text begin (g) The school district may include the academic performance of the students of a new text end 44.31 new text begin collaborative charter school site operating within the geographic boundaries of the school new text end 44.32 new text begin district, for purposes of student assessment and reporting to the state. new text end 44.33 new text begin (h) Districts, authorizers, or charter schools entering into a collaborative agreement new text end 44.34 new text begin are equally and collectively subject to the same state and federal accountability measures new text end 44.35 new text begin for student achievement, school performance outcomes, and school improvement new text end 45.1 new text begin strategies. The collaborative agreement and all accountability measures must be posted on new text end 45.2 new text begin the district, charter school, and authorizer Web site. new text end 45.3    Sec. 16. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 2, is 45.4amended to read: 45.5    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for each 45.6school is equal to the product of the school's proficiency allowance times the number 45.7of new text begin third grade new text end pupils at the school on October 1 of the previous fiscal year. A school's 45.8proficiency allowance is equal to the percentage of students in each building that meet 45.9or exceed proficiency on the third grade reading Minnesota Comprehensive Assessment, 45.10averaged across the previous three test administrations, times $85 new text begin $530 new text end . 45.11    Sec. 17. Minnesota Statutes 2011 Supplement, section 124D.98, subdivision 3, is 45.12amended to read: 45.13    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is 45.14equal to the product of the school's growth allowance times the number of new text begin fourth grade new text end 45.15pupils enrolled at the school on October 1 of the previous fiscal year. A school's growth 45.16allowance is equal to the percentage of students at that school making medium or high 45.17growth, under section 120B.299, on the fourth grade reading Minnesota Comprehensive 45.18Assessment, averaged across the previous three test administrations, times $85 new text begin $530 new text end . 45.19    Sec. 18. Minnesota Statutes 2011 Supplement, section 126C.40, subdivision 1, is 45.20amended to read: 45.21    Subdivision 1. To lease building or land. (a) When an independent or a special 45.22school district or a group of independent or special school districts finds it economically 45.23advantageous to rent or lease a building or land for any instructional purposes or for 45.24school storage or furniture repair, and it determines that the operating capital revenue 45.25authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 45.26apply to the commissioner for permission to make an additional capital expenditure levy 45.27for this purpose. An application for permission to levy under this subdivision must contain 45.28financial justification for the proposed levy, the terms and conditions of the proposed 45.29lease, and a description of the space to be leased and its proposed use. 45.30    (b) The criteria for approval of applications to levy under this subdivision must 45.31include: the reasonableness of the price, the appropriateness of the space to the proposed 45.32activity, the feasibility of transporting pupils to the leased building or land, conformity 45.33of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 46.1the proposed lease to the space needs and the financial condition of the district. The 46.2commissioner must not authorize a levy under this subdivision in an amount greater than 46.3the cost to the district of renting or leasing a building or land for approved purposes. 46.4The proceeds of this levy must not be used for custodial or other maintenance services. 46.5A district may not levy under this subdivision for the purpose of leasing or renting a 46.6district-owned building or site to itself. 46.7    (c) For agreements finalized after July 1, 1997, a district may not levy under this 46.8subdivision for the purpose of leasing: (1) a newly constructed building used primarily 46.9for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 46.10building addition or additions used primarily for regular kindergarten, elementary, or 46.11secondary instruction that contains more than 20 percent of the square footage of the 46.12previously existing building. 46.13    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 46.14purpose of leasing or renting a district-owned building or site to itself only if the amount 46.15is needed by the district to make payments required by a lease purchase agreement, 46.16installment purchase agreement, or other deferred payments agreement authorized by law, 46.17and the levy meets the requirements of paragraph (c). A levy authorized for a district by 46.18the commissioner under this paragraph may be in the amount needed by the district to 46.19make payments required by a lease purchase agreement, installment purchase agreement, 46.20or other deferred payments agreement authorized by law, provided that any agreement 46.21include a provision giving the school districts the right to terminate the agreement 46.22annually without penalty. 46.23    (e) The total levy under this subdivision for a district for any year must not exceed 46.24$150 times the resident pupil units for the fiscal year to which the levy is attributable. 46.25    (f) For agreements for which a review and comment have been submitted to the 46.26Department of Education after April 1, 1998, the term "instructional purpose" as used in 46.27this subdivision excludes expenditures on stadiums. 46.28    (g) The commissioner of education may authorize a school district to exceed the 46.29limit in paragraph (e) if the school district petitions the commissioner for approval. The 46.30commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 46.31for not more than five years if the district meets the following criteria: 46.32    (1) the school district has been experiencing pupil enrollment growth in the 46.33preceding five years; 46.34    (2) the purpose of the increased levy is in the long-term public interest; 46.35    (3) the purpose of the increased levy promotes colocation of government services; 46.36and 47.1    (4) the purpose of the increased levy is in the long-term interest of the district by 47.2avoiding over construction of school facilities. 47.3    (h) A school district that is a member of an intermediate school district may include 47.4in its authority under this section the costs associated with leases of administrative and 47.5classroom space for intermediate school district programs. This authority must not exceed 47.6$43 times the adjusted marginal cost pupil units of the member districts. This authority is 47.7in addition to any other authority authorized under this section. 47.8    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 47.92012 new text begin to 2023 new text end , a district that is a member of the "Technology and Information Education 47.10Systems" data processing joint board, that finds it economically advantageous to enter into 47.11a lease agreement to finance improvements to a building new text begin and land new text end for a group of school 47.12districts or special school districts for staff development purposes, may levy for its portion 47.13of lease costs attributed to the district within the total levy limit in paragraph (e). The total 47.14levy authority under this paragraph shall not exceed $632,000. 47.15 new text begin (j) Notwithstanding paragraph (a), a district may levy under this subdivision for the new text end 47.16 new text begin purpose of leasing administrative space if the district can demonstrate to the satisfaction of new text end 47.17 new text begin the commissioner that the lease cost for the administrative space is no greater than the new text end 47.18 new text begin lease cost for instructional space that the district would otherwise lease. The commissioner new text end 47.19 new text begin must deny this levy authority unless the district passes a resolution stating its intent to new text end 47.20 new text begin lease instructional space under this section if the commissioner does not grant authority new text end 47.21 new text begin under this paragraph. The resolution must also certify that the lease cost for administrative new text end 47.22 new text begin space under this paragraph is no greater than the lease cost for the district's proposed new text end 47.23 new text begin instructional lease. new text end 47.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for taxes payable in 2013 and later. new text end 47.25    Sec. 19. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 47.2616, is amended to read: 47.27    Subd. 16. Student organizations. For student organizations: 47.28 $ 725,000 ..... 2012 47.29 $ 725,000 ..... 2013 47.30$49,000 each year is for student organizations serving health occupations (HUSA) new text begin new text end 47.31 new text begin (HOSA) new text end . 47.32$46,000 each year is for student organizations serving service occupations (HERO). 47.33$106,000 each year is for student organizations serving trade and industry 47.34occupations (SkillsUSA, secondary and postsecondary). 48.1$101,000 each year is for student organizations serving business occupations 48.2(DECA, BPA, secondary and postsecondary). 48.3$158,000 each year is for student organizations serving agriculture occupations 48.4(FFA, PAS). 48.5$150,000 each year is for student organizations serving family and consumer science 48.6occupations (FCCLA). 48.7$115,000 each year is for student organizations serving marketing occupations 48.8(DEX) new text begin (DECA, DECA Collegiate) new text end . 48.9Any balance in the first year does not cancel but is available in the second year. 48.10    Sec. 20. new text begin ONE-YEAR LICENSES. new text end 48.11 new text begin Notwithstanding Minnesota Statutes 2010, section 122A.18, subdivision 2, as new text end 48.12 new text begin amended by Laws 2012, chapter 122, section 2, a person who has: new text end 48.13 new text begin (1) obtained a one-year license to teach; and new text end 48.14 new text begin (2) taught during the 2011-2012 school year; new text end 48.15 new text begin may be approved by the Board of Teaching to continue to teach through the end of the new text end 48.16 new text begin 2012-2013 school year. new text end 48.17 new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively from February 22, 2012. new text end 48.18    Sec. 21. new text begin REPEALER. new text end 48.19 new text begin Minnesota Statutes 2010, sections 120A.28; 120B.019; 120B.31, subdivision 3; new text end 48.20 new text begin 121A.60, subdivisions 3 and 4; 121A.62; 121A.63; and 122A.18, subdivision 9, new text end new text begin are new text end 48.21 new text begin repealed. new text end 48.22ARTICLE 3 48.23SPECIAL EDUCATION AND OTHER PROGRAMS 48.24    Section 1. Minnesota Statutes 2010, section 125A.14, is amended to read: 48.25125A.14 EXTENDED SCHOOL YEAR. 48.26    A district may provide extended school year services for children with a disability 48.27living within the district and nonresident children temporarily placed in the district 48.28pursuant to section 125A.15 or . Prior to March 31 or 30 days after the child 48.29with a disability is placed in the district, whichever is later, the providing district shall 48.30give notice to the district of residence of any nonresident children temporarily placed in 48.31the district pursuant to section 125A.15 or , of its intention to provide these 48.32programs. Notwithstanding any contrary provisions in sections new text begin section new text end 125A.15 and 48.33, the district providing the special instruction and services must apply for special 49.1education aid for the extended school year services. The unreimbursed actual cost of 49.2providing the program for nonresident children with a disability, including the cost of 49.3board and lodging, may be billed to the district of the child's residence and must be paid 49.4by the resident district. Transportation costs must be paid by the district responsible 49.5for providing transportation pursuant to section 125A.15 or and transportation 49.6aid must be paid to that district. 49.7    Sec. 2. Minnesota Statutes 2010, section 125A.19, is amended to read: 49.8125A.19 NONRESIDENT EDUCATION; BILLING. 49.9All tuition billing for the education of nonresident children pursuant to sections 49.10125A.03 to 125A.24 new text begin , 125A.51, 125A.515, new text end and 125A.65 must be done on uniform forms 49.11prescribed by the commissioner. The billing shall contain an itemized statement of costs 49.12that are being charged to the district of residence. One copy of each billing must be filed 49.13with the commissioner. 49.14    Sec. 3. Minnesota Statutes 2010, section 125A.515, subdivision 1, is amended to read: 49.15    Subdivision 1. Approval of education programs. The commissioner shall approve 49.16 new text begin on-site new text end education programs for placement of children and youth in residential facilities 49.17including detention centers, before being licensed by the Department of Human Services 49.18or the Department of Corrections. Education programs in these facilities shall conform to 49.19state and federal education laws including the Individuals with Disabilities Education Act 49.20(IDEA). This section applies only to placements in facilities licensed by the Department of 49.21Human Services or the Department of Corrections. new text begin For purposes of this section, "on-site new text end 49.22 new text begin education program" means the educational services provided directly on the grounds of new text end 49.23 new text begin the care and treatment facility to children and youth placed for care and treatment. new text end 49.24    Sec. 4. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 8, 49.25is amended to read: 49.26    Subd. 8. Early childhood education scholarships. For grants to early childhood 49.27education scholarships for public or private early childhood preschool programs for 49.28children ages 3 to 5: 49.29 $ 4,000,000 new text begin 2,000,000 new text end ..... 2013 49.30(a) All children whose parents or legal guardians meet the eligibility requirements 49.31of paragraph (b) established by the commissioner are eligible to receive early childhood 49.32education scholarships under this section. 50.1(b) A parent or legal guardian is eligible for an early childhood education scholarship 50.2if the parent or legal guardian: 50.3(1) has a child three or four years of age on September 1, beginning in calendar 50.4year 2012; and 50.5(2)(i) has income equal to or less than 47 percent of the state median income in the 50.6current calendar year; or 50.7(ii) can document their child's identification through another public funding 50.8eligibility process, including the Free and Reduced Price Lunch Program, National School 50.9Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 50.10Improving Head Start for School Readiness Act of 2007; Minnesota family investment 50.11program under chapter 256J; and child care assistance programs under chapter 119B. 50.12Each year, if this appropriation is insufficient to provide early childhood education 50.13scholarships to all eligible children, the Department of Education shall make scholarships 50.14available on a first-come, first-served basis. 50.15The commissioner of education shall submit a written report to the education 50.16committees of the legislature by January 15, 2012, describing its plan for implementation 50.17of scholarships under this subdivision for the 2012-2013 school year. 50.18Any balance in the first year does not cancel but is available in the second year. 50.19The base for this program is $2,000,000 new text begin $3,000,000 new text end each year. 50.20    Sec. 5. new text begin APPROPRIATIONS. new text end 50.21     new text begin Subdivision 1. new text end new text begin Department of Education. new text end new text begin The sums indicated in this section are new text end 50.22 new text begin appropriated from the general fund to the Department of Education for the fiscal years new text end 50.23 new text begin designated. new text end 50.24     new text begin Subd. 2. new text end new text begin Parent-child home program. new text end new text begin For a grant to the evidence-based early new text end 50.25 new text begin literacy parent-child home program: new text end 50.26 new text begin $ new text end new text begin 250,000 new text end new text begin ..... new text end new text begin 2013 new text end 50.27 new text begin This is a onetime appropriation. new text end 50.28    Sec. 6. new text begin REPEALER. new text end 50.29 new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 125A.16; 125A.80; and 475.53, subdivision new text end 50.30 new text begin 5, new text end new text begin are repealed. new text end 50.31 new text begin (b) new text end new text begin Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; 124D.16, new text end 50.32 new text begin subdivisions 6 and 7; and 124D.20, subdivisions 11 and 12, new text end new text begin are repealed for revenue for new text end 50.33 new text begin fiscal year 2014 and later. new text end " 51.1Delete the title and insert: 51.2"A bill for an act 51.3relating to education; providing for general education, education excellence, 51.4special education, and other programs; appropriating money;amending 51.5Minnesota Statutes 2010, sections 120A.20, subdivision 2; 120A.22, subdivisions 51.62, 11; 120B.024; 120B.13, subdivisions 1, 4; 122A.40, subdivision 13; 51.7122A.415, subdivision 3; 123B.04; 123B.92, subdivision 3; 124D.08, by adding 51.8a subdivision; 124D.09, subdivisions 9, 12, 22, 24, by adding a subdivision; 51.9124D.4531, subdivision 3, by adding a subdivision; 125A.14; 125A.19; 51.10125A.515, subdivision 1; 126C.10, subdivision 28; 126C.19, subdivision 2; 51.11127A.47, subdivision 1; 135A.101, subdivision 1; 471.975; Minnesota Statutes 51.122011 Supplement, sections 120A.24, subdivisions 1, 2; 120B.023, subdivision 51.132; 120B.07; 120B.08; 120B.09; 120B.12, subdivision 2; 120B.30, subdivision 51.141; 122A.40, subdivision 5; 123B.147, subdivision 3; 124D.09, subdivision 51.157; 124D.10, subdivisions 3, 4, 6, 8, 13, 15, 17a, by adding a subdivision; 51.16124D.4531, subdivision 1; 124D.98, subdivisions 2, 3; 126C.126; 126C.40, 51.17subdivision 1; 127A.45, subdivision 6a; Laws 2011, First Special Session chapter 51.1811, article 2, section 50, subdivision 16; article 5, section 11; article 7, section 2, 51.19subdivision 8; repealing Minnesota Statutes 2010, sections 120A.28; 120B.019; 51.20120B.31, subdivision 3; 121A.60, subdivisions 3, 4; 121A.62; 121A.63; 51.21122A.18, subdivision 9; 124D.09, subdivision 23; 124D.135, subdivisions 8, 9; 51.22124D.16, subdivisions 6, 7; 124D.20, subdivisions 11, 12; 125A.16; 125A.80; 51.23127A.47, subdivision 2; 475.53, subdivision 5." 52.1 We request the adoption of this report and repassage of the bill. 52.2 House Conferees: 52.3 ..... ..... 52.4 Pat Garofalo Paul Anderson 52.5 ..... ..... 52.6 Sondra Erickson Jenifer Loon 52.7 ..... 52.8 Denise Dittrich 52.9 Senate Conferees: 52.10 ..... ..... 52.11 Gen Olson David W. Hann 52.12 ..... ..... 52.13 Roger C. Chamberlain LeRoy A. Stumpf 52.14 ..... 52.15 Terri E. Bonoff