1.1 	A bill for an act
1.2 	relating to state government; conforming buyback level for the budget reserve 
1.3 	with the most recent forecast; eliminating obsolete language; providing policy 
1.4 	and finance for the Office of Higher Education, the Minnesota State Colleges 
1.5 	and Universities, and the University of Minnesota, including programs for 
1.6 	student loans, students with disabilities, fetal tissue research, psychiatric 
1.7 	drug trials, and collegiate recovery; providing funding and policy for early 
1.8 	childhood and family, prekindergarten through grade 12, and adult education, 
1.9 	including general education, education excellence, charter schools, special 
1.10 	education, early childhood education, self-sufficiency, lifelong learning, and 
1.11 	state agencies; appropriating money; requiring reports;amending Minnesota 
1.12 	Statutes 2014, sections 120A.22, subdivision 12; 120A.42; 120B.02, by adding 
1.13 	a subdivision; 120B.021, subdivisions 1, 3; 120B.11, subdivisions 1a, 2, 5; 
1.14 	120B.15; 120B.35; 120B.36, as amended; 121A.53; 121A.61, subdivision 
1.15 	1; 121A.64; 122A.07, subdivision 2; 122A.09, subdivision 10, by adding a 
1.16 	subdivision; 122A.14, subdivision 9; 122A.16; 122A.18, subdivisions 7c, 
1.17 	8; 122A.21, subdivision 1, by adding a subdivision; 122A.245, subdivision 
1.18 	8; 122A.31, subdivision 3; 122A.40, subdivision 10; 122A.41, by adding 
1.19 	a subdivision; 122A.4144; 122A.416; 122A.42; 122A.72, subdivision 5; 
1.20 	123A.24, subdivision 2; 123B.49, subdivision 4; 123B.571, subdivision 2; 
1.21 	123B.60, subdivision 1; 123B.71, subdivision 8; 123B.79, subdivisions 5, 8, 9; 
1.22 	124D.111, by adding a subdivision; 124D.13, subdivisions 1, 5, 9; 124D.135, 
1.23 	subdivisions 5, 7; 124D.15, subdivisions 1, 3a, 15; 124D.16, subdivisions 3, 
1.24 	5; 124D.165, as amended; 124D.52, subdivisions 1, 2; 124D.55; 124D.59, 
1.25 	by adding a subdivision; 124D.861, subdivision 1, by adding a subdivision; 
1.26 	124D.896; 125A.091, subdivision 11; 125A.0942, subdivision 4; 126C.10, 
1.27 	subdivision 24; 126C.15, subdivision 3; 126C.40, subdivision 5; 126C.63, 
1.28 	subdivision 7; 127A.095; 127A.353, subdivision 4; 127A.41, subdivision 2; 
1.29 	127A.45, subdivision 6a; 127A.51; 129C.10, subdivision 1; 136A.01, by adding 
1.30 	a subdivision; 136A.101, subdivision 10; 245.92; 245.94; 245.945; 245.95, 
1.31 	subdivision 1; 245.97, subdivision 5; Minnesota Statutes 2015 Supplement, 
1.32 	sections 16A.152, subdivision 2; 120B.021, subdivision 4; 120B.125; 120B.30, 
1.33 	subdivisions 1, 1a; 120B.31, subdivision 4; 122A.21, subdivision 2; 122A.30; 
1.34 	122A.414, subdivisions 1, 2, 2b; 122A.415, subdivision 3; 122A.60, subdivision 
1.35 	4; 123B.53, subdivision 1; 123B.595, subdivisions 4, 7, 8, 9, 10, 11, by 
1.36 	adding a subdivision; 124D.16, subdivision 2; 124D.231, subdivision 2; 
1.37 	124D.73, subdivision 4; 124E.05, subdivisions 4, 5, 7; 124E.10, subdivisions 
1.38 	1, 5; 124E.16, subdivision 2; 125A.08; 125A.083; 125A.0942, subdivision 
1.39 	3; 125A.11, subdivision 1; 125A.21, subdivision 3; 125A.63, subdivision 4; 
2.1 	125A.76, subdivision 2c; 125A.79, subdivision 1; 126C.10, subdivisions 1, 13a; 
2.2 	126C.15, subdivisions 1, 2; 126C.48, subdivision 8; 127A.05, subdivision 6; 
2.3 	127A.47, subdivision 7; 136A.121, subdivision 7a; 136A.125, subdivisions 2, 4; 
2.4 	136A.1791, subdivisions 4, 5, 6; 136A.87; 136F.302, subdivision 1; Laws 2010, 
2.5 	chapter 396, section 7; Laws 2011, First Special Session chapter 11, article 4, 
2.6 	section 8; Laws 2012, chapter 263, section 1, as amended; Laws 2013, chapter 
2.7 	116, article 7, section 19, as amended; Laws 2015, chapter 69, article 1, sections 
2.8 	3, subdivision 28; 5, subdivision 2; article 3, section 20, subdivision 15; Laws 
2.9 	2015, First Special Session chapter 3, article 1, section 27, subdivisions 2, 4, 
2.10 	5, 6, 7, 9; article 2, section 70, subdivisions 2, 3, 4, 5, 6, 7, 11, 12; article 3, 
2.11 	section 15, subdivision 3; article 4, sections 4; 9, subdivision 2; article 5, section 
2.12 	30, subdivisions 2, 3, 5; article 6, section 13, subdivisions 2, 3, 6, 7; article 7, 
2.13 	section 7, subdivisions 2, 3, 4; article 9, section 8, subdivisions 5, 6, 7, 9; article 
2.14 	10, section 3, subdivision 2; article 11, section 3, subdivisions 2, 3; article 12, 
2.15 	section 4; proposing coding for new law in Minnesota Statutes, chapters 119A; 
2.16 	122A; 124D; 127A; 129C; 136A; 136F; 137; 181; repealing Minnesota Statutes 
2.17 	2014, sections 120B.299, subdivision 5; 122A.40, subdivision 11; 122A.41, 
2.18 	subdivision 14; 122A.413, subdivision 3; 122A.74; 123B.60, subdivision 2; 
2.19 	123B.79, subdivisions 2, 6; Minnesota Statutes 2015 Supplement, section 
2.20 	122A.413, subdivisions 1, 2; Minnesota Rules, part 3535.0110, subparts 6, 7, 8.
2.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.22 	ARTICLE 1
2.23 	STATE FINANCES

2.24 	Section 1. Minnesota Statutes 2015 Supplement, section 16A.152, subdivision 2, 
2.25 	is amended to read:
2.26 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
2.27 	fund revenues and expenditures, the commissioner of management and budget determines 
2.28 	that there will be a positive unrestricted budgetary general fund balance at the close of 
2.29 	the biennium, the commissioner of management and budget must allocate money to the 
2.30 	following accounts and purposes in priority order:
2.31 	(1) the cash flow account established in subdivision 1 until that account reaches 
2.32 	$350,000,000;
2.33 	(2) the budget reserve account established in subdivision 1a until that account 
2.34 	reaches $810,992,000 $1,596,522,000;
2.35 	(3) the amount necessary to increase the aid payment schedule for school district 
2.36 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
2.37 	nearest tenth of a percent without exceeding the amount available and with any remaining 
2.38 	funds deposited in the budget reserve; and
2.39 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
2.40 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
2.41 	123B.75, subdivision 5, by the same amount;.
3.1 	(5) the closed landfill investment fund established in section 115B.421 until 
3.2 	$63,215,000 has been transferred into the account. This clause expires after the entire 
3.3 	amount of the transfer has been made; and
3.4 	(6) the metropolitan landfill contingency action trust account established in section 
3.5 	473.845 until $8,100,000 has been transferred into the account. This clause expires after 
3.6 	the entire amount of the transfer has been made.
3.7 	(b) The amounts necessary to meet the requirements of this section are appropriated 
3.8 	from the general fund within two weeks after the forecast is released or, in the case of 
3.9 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
3.10 	schedules otherwise established in statute.
3.11 	(c) The commissioner of management and budget shall certify the total dollar 
3.12 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
3.13 	education. The commissioner of education shall increase the aid payment percentage and 
3.14 	reduce the property tax shift percentage by these amounts and apply those reductions to 
3.15 	the current fiscal year and thereafter.

3.16 	ARTICLE 2
3.17 	OFFICE OF HIGHER EDUCATION

3.18 	Section 1. Minnesota Statutes 2014, section 136A.01, is amended by adding a 
3.19 	subdivision to read:
3.20 		Subd. 4.Management of programs. (a) The commissioner may retain up to five 
3.21 	percent of the amount appropriated to the office for a program or pass-through grant if:
3.22 	(1) the program or grant is first established on or after January 1, 2016; and
3.23 	(2) the appropriation does not specify an amount for administrative costs.
3.24 	(b) The amount retained under paragraph (a) is appropriated to the commissioner and 
3.25 	must be used for the costs of administering and monitoring programs and pass-through 
3.26 	grants established on or after January 1, 2016.

3.27 	Sec. 2. [136A.0412] RECEIPT OF DONATIONS; MONEY; GRANTS.
3.28 	The commissioner may accept donations, grants, bequests, and other funds to carry 
3.29 	out the purposes of section 136A.01. A donation, nonfederal grant, bequest, or other fund 
3.30 	received by the commissioner is deposited in an account in the special revenue fund. 
3.31 	Funds in the account are appropriated to the commissioner for the purpose for which they 
3.32 	were granted and are available until expended.

4.1 	Sec. 3. Minnesota Statutes 2015 Supplement, section 136A.121, subdivision 7a, 
4.2 	is amended to read:
4.3 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
4.4 	office to be more than sufficient to fund projected grant demand in the second year of the 
4.5 	biennium, the office may increase the living and miscellaneous expense allowance or the 
4.6 	tuition and fee maximums in the second year of the biennium by up to an amount that 
4.7 	retains sufficient appropriations to fund the projected grant demand. The adjustment may 
4.8 	be made one or more times. In making the determination that there are more than sufficient 
4.9 	funds, the office shall balance the need for sufficient resources to meet the projected 
4.10 	demand for grants with the goal of fully allocating the appropriation for state grants. An 
4.11 	increase in the living and miscellaneous expense allowance under this subdivision does 
4.12 	not carry forward into a subsequent biennium.

4.13 	Sec. 4. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 2, is 
4.14 	amended to read:
4.15 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
4.16 	the applicant:
4.17 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident 
4.18 	of the state of Minnesota;
4.19 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
4.20 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
4.21 	regular basis from a licensed or legal, nonlicensed caregiver;
4.22 	(3) is income eligible as determined by the office's policies and rules, but is not a 
4.23 	recipient of assistance from the Minnesota family investment program;
4.24 	(4) either has not earned a baccalaureate degree and has been enrolled full time less 
4.25 	than eight semesters or the equivalent, or has earned a baccalaureate degree and has been 
4.26 	enrolled full time less than eight semesters or the equivalent in a graduate or professional 
4.27 	degree program;
4.28 	(5) is pursuing a nonsectarian program or course of study that applies to an 
4.29 	undergraduate, graduate, or professional degree, diploma, or certificate;
4.30 	(6) is enrolled in at least half time six credits in an undergraduate program or one 
4.31 	credit in a graduate or professional program in an eligible institution; and
4.32 	(7) is in good academic standing and making satisfactory academic progress.
4.33 	(b) A student who withdraws from enrollment for active military service after 
4.34 	December 31, 2002, because the student was ordered to active military service as defined 
4.35 	in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a 
5.1 	medical professional, that substantially limits the student's ability to complete the term 
5.2 	is entitled to an additional semester or the equivalent of grant eligibility and will be 
5.3 	considered to be in continuing enrollment status upon return.

5.4 	Sec. 5. Minnesota Statutes 2015 Supplement, section 136A.125, subdivision 4, is 
5.5 	amended to read:
5.6 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant 
5.7 	must be based on:
5.8 	(1) the income of the applicant and the applicant's spouse;
5.9 	(2) the number in the applicant's family, as defined by the office; and
5.10 	(3) the number of eligible children in the applicant's family.
5.11 	(b) The maximum award to the applicant shall be $2,800 for each eligible child per 
5.12 	academic year, except that the campus financial aid officer may apply to the office for 
5.13 	approval to increase grants by up to ten percent to compensate for higher market charges 
5.14 	for infant care in a community. The office shall develop policies to determine community 
5.15 	market costs and review institutional requests for compensatory grant increases to ensure 
5.16 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
5.17 	that will be awarded per child based on the factors in this subdivision. The chart shall 
5.18 	include a range of income and family size.
5.19 	(c) Applicants with family incomes at or below a percentage of the federal poverty 
5.20 	level, as determined by the commissioner, will qualify for the maximum award. The 
5.21 	commissioner shall attempt to set the percentage at a level estimated to fully expend the 
5.22 	available appropriation for child care grants. Applicants with family incomes exceeding 
5.23 	that threshold will receive the maximum award minus ten percent of their income 
5.24 	exceeding that threshold. If the result is less than zero, the grant is zero.
5.25 	(d) The academic year award amount must be disbursed by academic term using the 
5.26 	following formula:
5.27 	(1) the academic year amount described in paragraph (b);
5.28 	(2) divided by the number of terms in the academic year;
5.29 	(3) divided by 15 for undergraduate students and six for graduate and professional 
5.30 	students; and
5.31 	(4) multiplied by the number of credits for which the student is enrolled that 
5.32 	academic term, up to 15 credits for undergraduate students and six for graduate and 
5.33 	professional students.
6.1 	(e) Payments shall be made each academic term to the student or to the child care 
6.2 	provider, as determined by the institution. Institutions may make payments more than 
6.3 	once within the academic term.

6.4 	Sec. 6. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 4, 
6.5 	is amended to read:
6.6 		Subd. 4.Application for loan forgiveness. Each applicant for loan forgiveness, 
6.7 	according to rules adopted by the commissioner, shall:
6.8 	(1) apply for teacher shortage loan forgiveness and promptly submit any additional 
6.9 	information required by the commissioner; and
6.10 	(2) annually reapply for up to five consecutive school years and submit information 
6.11 	the commissioner requires to determine the applicant's continued eligibility for loan 
6.12 	forgiveness; and
6.13 	(3) (2) submit to the commissioner a completed affidavit, prescribed by the 
6.14 	commissioner, affirming the teacher is teaching in: (i) a licensure field and in identified by 
6.15 	the commissioner as experiencing a teacher shortage; or (ii) an economic development 
6.16 	region identified by the commissioner as experiencing a teacher shortage.

6.17 	Sec. 7. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 5, 
6.18 	is amended to read:
6.19 		Subd. 5.Amount of loan forgiveness. (a) To the extent funding is available, the 
6.20 	annual amount of teacher shortage loan forgiveness for an approved applicant shall not 
6.21 	exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, 
6.22 	including principal and interest, whichever amount is less.
6.23 	(b) Recipients must secure their own qualified educational loans. Teachers who 
6.24 	graduate from an approved teacher preparation program or teachers who add a licensure 
6.25 	field, consistent with the teacher shortage requirements of this section, are eligible to 
6.26 	apply for the loan forgiveness program.
6.27 	(c) No teacher shall receive more than five annual awards.

6.28 	Sec. 8. Minnesota Statutes 2015 Supplement, section 136A.1791, subdivision 6, 
6.29 	is amended to read:
6.30 		Subd. 6.Disbursement. (a) The commissioner must make annual disbursements 
6.31 	directly to the participant of the amount for which a participant is eligible, for each year 
6.32 	that a participant is eligible.
7.1 	(b) Within 60 days of receipt of athe disbursement date, the participant must provide 
7.2 	the commissioner with verification that the full amount of loan repayment disbursement 
7.3 	has been applied toward the designated loans. A participant that previously received 
7.4 	funds under this section but has not provided the commissioner with such verification 
7.5 	is not eligible to receive additional funds.

7.6 	Sec. 9. [136A.1792] PROMOTION OF FEDERAL LOAN FORGIVENESS 
7.7 	PROGRAMS.
7.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
7.9 	have the meanings given.
7.10 	(b) "Federal loan forgiveness program" means a loan forgiveness program offered 
7.11 	under Code of Federal Regulations, title 34, part 685.
7.12 	(c) "Public service loan forgiveness program" means the loan forgiveness program 
7.13 	offered under Code of Federal Regulations, title 34, part 685, section 219.
7.14 	(d) "Public service organization" means a public service organization under Code of 
7.15 	Federal Regulations, title 34, part 685, section 219.
7.16 		Subd. 2.Promotion of federal loan forgiveness programs. (a) The commissioner 
7.17 	must develop and distribute informational materials designed to increase awareness of 
7.18 	federal loan forgiveness programs among Minnesota residents who are eligible for such 
7.19 	programs. At a minimum, the commissioner must develop and distribute informational 
7.20 	materials that public service organizations may use to promote awareness of the federal 
7.21 	public service loan forgiveness program, including:
7.22 	(1) a one-page letter addressed to individuals who may be eligible for the public 
7.23 	service loan forgiveness program that briefly summarizes the program, provides 
7.24 	information on what an eligible individual must do in order to participate, and recommends 
7.25 	that they contact their student loan servicer or servicers for additional information;
7.26 	(2) a detailed fact sheet describing the public service loan forgiveness program; and
7.27 	(3) a document containing answers to frequently asked questions about the public 
7.28 	service loan forgiveness program.
7.29 	(b) In place of developing and publishing an informational document required under 
7.30 	paragraph (a), the commissioner may distribute a document published by a federal agency 
7.31 	that meets the requirements of paragraph (a).
7.32 		Subd. 3.Publication of informational materials. The commissioner must make 
7.33 	the informational materials required under subdivision 2 available on the office's Web 
7.34 	site and must verify each biennium that the informational materials contain current 
8.1 	information. The commissioner must update and correct any informational materials that 
8.2 	the commissioner finds to be inaccurate or outdated.

8.3 	Sec. 10. Minnesota Statutes 2015 Supplement, section 136A.87, is amended to read:
8.4 	136A.87 PLANNING INFORMATION FOR POSTSECONDARY 
8.5 	EDUCATION.
8.6 	(a) The office shall make available to all residents beginning in 7th grade through 
8.7 	adulthood information about planning and preparing for postsecondary opportunities. 
8.8 	Information must be provided to all 7th grade students and their parents annually 
8.9 	by September 30 about planning for their postsecondary education. The office may 
8.10 	also provide information to high school students and their parents, to adults, and to 
8.11 	out-of-school youth.
8.12 	(b) The office shall gather and share information with students and parents about 
8.13 	the dual credit acceptance policies of each Minnesota public and private college and 
8.14 	university. The office shall gather and share information related to the acceptance policies 
8.15 	for concurrent enrollment courses, postsecondary enrollment options courses, advanced 
8.16 	placement courses, and international baccalaureate courses. This information must be 
8.17 	shared on the office's Web site and included in the information under paragraph (a).
8.18 	(c) The information provided under paragraph (a) may include the following:
8.19 	(1) the need to start planning early;
8.20 	(2) the availability of assistance in educational planning from educational institutions 
8.21 	and other organizations;
8.22 	(3) suggestions for studying effectively during high school;
8.23 	(4) high school courses necessary to be adequately prepared for postsecondary 
8.24 	education;
8.25 	(5) encouragement to involve parents actively in planning for all phases of education;
8.26 	(6) information about postsecondary education and training opportunities existing 
8.27 	in the state, their respective missions and expectations for students, their preparation 
8.28 	requirements, admission requirements, and student placement;
8.29 	(7) ways to evaluate and select postsecondary institutions;
8.30 	(8) the process of transferring credits among Minnesota postsecondary institutions 
8.31 	and systems;
8.32 	(9) the costs of postsecondary education and the availability of financial assistance 
8.33 	in meeting these costs, including specific information about the Minnesota Promise;
8.34 	(10) the interrelationship of assistance from student financial aid, public assistance, 
8.35 	and job training programs; and
9.1 	(11) financial planning for postsecondary education.

9.2 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
9.3 	later.

9.4 	Sec. 11. [181.987] DISCLOSURE OF ELIGIBILITY FOR STUDENT LOAN 
9.5 	FORGIVENESS.
9.6 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
9.7 	have the meanings given.
9.8 	(b) "Employer" means an organization, agency, or entity that is a public service 
9.9 	organization under Code of Federal Regulations, title 34, part 685, section 219, provided 
9.10 	that the following are not employers:
9.11 	(1) a federal or tribal government organization, agency, or entity; and
9.12 	(2) a tribal college or university.
9.13 	(c) "Employment certification form" means the form used by the United States 
9.14 	Department of Education to certify an individual's employment at a public service 
9.15 	organization for the purposes of the federal public service loan forgiveness program.
9.16 	(d) "Federal public service loan forgiveness program" means the program offered 
9.17 	under Code of Federal Regulations, title 34, part 685, section 219.
9.18 		Subd. 2.Disclosure of eligibility for student loan forgiveness. (a) An employer 
9.19 	must provide an employee with information about the employee's potential eligibility 
9.20 	for the federal public service loan forgiveness program. An employer must annually 
9.21 	provide to each employee in written or electronic form the one-page letter, fact sheet, 
9.22 	and frequently asked questions required under section 136A.1792, subdivision 2. An 
9.23 	employer must provide a newly hired employee with that information  within two weeks of 
9.24 	the employee's first day of employment.
9.25 	(b) At an employee's request, an employer must provide the employee with a copy 
9.26 	of the employment certification form.

9.27 	EFFECTIVE DATE. This section is effective January 1, 2017. An employer must 
9.28 	provide information to current employees, as required by subdivision 2, by January 15, 
9.29 	2017.

9.30 	Sec. 12. Laws 2015, chapter 69, article 3, section 20, subdivision 15, is amended to read:
9.31 		Subd. 15.Reporting. (a) A college must report to the commissioner the following 
9.32 	information:
9.33 	(1) the number of grantees and their race, gender, and ethnicity;
10.1 	(2) grantee persistence and completion;
10.2 	(3) employment outcomes; and
10.3 	(4) other information requested by the commissioner.
10.4 	(b) The commissioner shall report annually by January 15, 2017, and January 15, 
10.5 	2018, to the chairs and ranking minority members of the legislative committees with 
10.6 	jurisdiction over higher education finance by college and in aggregate on the information 
10.7 	submitted to the commissioner under paragraph (a). The commissioner may include in the 
10.8 	report recommendations for changes in the grant program.

10.9 	Sec. 13. MNSCU TWO-YEAR COLLEGE PROGRAM; ADMINISTRATIVE 
10.10 	COSTS.
 10.11 	The appropriation made by Laws 2015, chapter 69, article 1, section 3, subdivision 
10.12 	18, paragraph (c), for fiscal year 2017 for information technology and administrative costs 
10.13 	is available on the effective date of this section and until June 30, 2017.

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

10.15 	ARTICLE 3
10.16 	MNSCU PILOT PROGRAM; STUDENTS WITH DISABILITIES

10.17 	Section 1. Minnesota Statutes 2014, section 136A.101, subdivision 10, is amended to 
10.18 	read:
10.19 		Subd. 10.Satisfactory academic progress. "Satisfactory academic progress" 
10.20 	means satisfactory academic progress as defined under Code of Federal Regulations, title 
10.21 	34, sections 668.16(e), 668.32(f), and 668.34, except that a student with an intellectual 
10.22 	disability as defined in Code of Federal Regulations, title 34, section 668.231, enrolled 
10.23 	in an approved comprehensive transition and postsecondary program under that section 
10.24 	is subject to the institution's published satisfactory academic process standards for that 
10.25 	program as approved by the Office of Higher Education.

10.26 	Sec. 2. MNSCU PROGRAM FOR STUDENTS WITH INTELLECTUAL AND 
10.27 	DEVELOPMENTAL DISABILITIES; PLAN REQUIRED.
 10.28 		Subdivision 1.Development of plan required. The Board of Trustees of the 
10.29 	Minnesota State Colleges and Universities must develop a plan for offering an academic 
10.30 	program for students with intellectual and developmental disabilities, consistent with the 
10.31 	principles established in subdivisions 2 to 4. 
11.1 		Subd. 2.Program locations. The plan developed must assume the program will be 
11.2 	offered at up to four college or university campuses chosen based on (1) their ability to 
11.3 	offer a robust program using existing facilities and resources and (2) a goal to provide the 
11.4 	program in diverse geographic regions of the state.
11.5 		Subd. 3.Enrollment and admission. The plan developed must assume an 
11.6 	enrollment goal for each campus's program of at least ten incoming students per academic 
11.7 	year. The plan may allow for students to be admitted based on an application process 
11.8 	that includes an in-person interview; an independent assessment of an applicant's 
11.9 	interest, motivation, and likelihood of success in the program; and any other eligibility 
11.10 	requirements established by the board. Upon successful completion, a student must be 
11.11 	awarded a certificate, diploma, or other appropriate academic credential.
11.12 		Subd. 4.Curriculum and activities. (a) The plan developed must assume a 
11.13 	program that provides an inclusive, two-year full-time residential college experience 
11.14 	for students with intellectual and developmental disabilities. The required curriculum 
11.15 	must include core courses that develop life skills, financial literacy, and the ability to 
11.16 	live independently; rigorous academic work in a student's chosen field of study; and an 
11.17 	internship, apprenticeship, or other skills-based experience to prepare for meaningful 
11.18 	employment upon completion of the program.
11.19 	(b) In addition to academic requirements, the plan developed must allow 
11.20 	participating students the opportunity to engage fully in campus life. Program activities 
11.21 	must include but are not limited to (1) the establishment of on-campus mentoring and 
11.22 	peer support communities and (2) opportunities for personal growth through leadership 
11.23 	development and other community engagement activities.
11.24 	(c) A participating campus may tailor its program curriculum and activities to 
11.25 	highlight academic programs, student and community life experiences, and employment 
11.26 	opportunities unique to that campus or the region of the state where the campus is located.
11.27 		Subd. 5.Report to legislature. The board must submit a report on the plan required 
11.28 	to be developed by this section to the chairs and ranking minority members of the 
11.29 	committees of the legislature with jurisdiction over higher education finance and policy and 
11.30 	human services finance and policy no later than January 15, 2017. The report must describe 
11.31 	program plans, including strategies for recruitment of applicants, and strategies to address 
11.32 	anticipated program needs that cannot be filled using existing campus or system resources.

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

12.1 	ARTICLE 4
12.2 	FETAL TISSUE RESEARCH

12.3 	Section 1. [137.45] FETAL TISSUE RESEARCH PRACTICES.
12.4 		Subdivision 1.Institutional review board; approval of research. An individual 
12.5 	conducting research at the University of Minnesota must obtain approval from the 
12.6 	university's institutional review board or stem cell oversight committee before conducting 
12.7 	research using fetal tissue. The institutional review board or oversight committee must, in 
12.8 	its approval process, consider whether nonhuman tissue would be sufficient for the study.
12.9 		Subd. 2.Identification of fetal tissue available due to natural death. The dean 
12.10 	of the university's medical school shall attempt to identify sources for procurement of 
12.11 	fetal tissues that are available due to the natural death of the fetus and are suitable for 
12.12 	use in academic research. The dean shall consider engaging an outside consultant to 
12.13 	attempt to identify such sources. When appropriate sources are identified, the dean must 
12.14 	make recommendations to the Board of Regents for updates to university policies and 
12.15 	procedures to encourage use of these sources in all university research activities where 
12.16 	fetal tissue is requested to be used. Sources that are identified shall be submitted to the 
12.17 	Association of American Medical Colleges.
12.18 		Subd. 3.Legislative report. (a) No later than January 15, 2017, the Board of 
12.19 	Regents must submit a report to the legislature. The report must be submitted to the chairs 
12.20 	and ranking minority members of the committees of the legislature with jurisdiction over 
12.21 	higher education policy and finance and health and human services policy and finance 
12.22 	and must describe:
12.23 	(1) all suitable sources for procurement of fetal tissue that are identified under 
12.24 	subdivision 2;
12.25 	(2) any recommended updates to university policies and procedures after 
12.26 	identification of suitable sources under subdivision 2, and if so, whether those 
12.27 	recommended updates were adopted by the Board of Regents; and
12.28 	(3) a list of:
12.29 	(i) all approvals made in the previous year by an institutional review board or stem 
12.30 	cell oversight committee for the use of fetal tissue; and
12.31 	(ii) all research continuing on fetal tissue from research that began in a previous year.
12.32 	(b) The list provided under paragraph (a), clause (3), must identify, for each research 
12.33 	activity, the source of funding for the research; the goal or purpose of the research; 
12.34 	the source of the fetal tissue used in the research; references to any publicly available 
12.35 	information about the research, including but not limited to grant award information from 
13.1 	the National Institutes of Health; and references to any publications resulting from the 
13.2 	research.
13.3 		Subd. 4.Definition. As used in this section and section 137.46, "fetal tissue" means 
13.4 	any part of an unborn child or fetus, including a body part, cell, tissue, or organ.

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

13.6 	Sec. 2. [137.46] INSTITUTIONAL REVIEW BOARD OVERSIGHT 
13.7 	ACTIVITIES.
13.8 	The Board of Regents shall:
13.9 	(1) further develop and clarify existing university policies and procedures related 
13.10 	to the lawful and ethical treatment of human subjects and fetal tissue in research 
13.11 	activities, including enhancement of applicable penalties for violation of these policies 
13.12 	and procedures;
13.13 	(2) institute a system of frequent, random, unannounced inspections and audits of 
13.14 	research activities involving fetal tissue to verify compliance with applicable federal and 
13.15 	state laws, university policies and procedures, and other professional standards related to 
13.16 	purchasing, handling, and disposing of fetal tissue;
13.17 	(3) conduct education and outreach programs, including instituting a required 
13.18 	comprehensive training program, on applicable federal and state laws, university policies 
13.19 	and procedures, and other professional standards related to the respectful, humane, and 
13.20 	ethical treatment of human subjects and fetal tissue in research, for all students and 
13.21 	employees engaged in these activities; and
13.22 	(4) establish an anonymous reporting system to receive complaints of activities that 
13.23 	may violate applicable federal and state laws, university policies and procedures, and 
13.24 	other professional standards in research involving human subjects and fetal tissue by the 
13.25 	university, university students or employees, or any other person engaged in research 
13.26 	activities in university facilities.

13.27 	Sec. 3. UNIVERSITY OF MINNESOTA FETAL TISSUE RESEARCH; 
13.28 	LEGISLATIVE AUDITOR REVIEW.
 13.29 	(a) The legislative auditor is requested to complete a comprehensive review of 
13.30 	the use of fetal tissue in research activities at the University of Minnesota. The review 
13.31 	must include:
13.32 	(1) the total number of research activities in which fetal tissue is currently or has been 
13.33 	previously used, including those that are in progress and those that have been completed;
14.1 	(2) the cost of acquiring fetal tissues for use in research activities, itemized by the 
14.2 	source of funds used for procurement, including funds from federal, state, and other public 
14.3 	sources, and funds derived from student tuition and fees;
14.4 	(3) the extent to which the conduct of the research activities complies with 
14.5 	applicable federal and state laws related to acquisition, sale, handling, and disposition 
14.6 	of human tissues, including fetal tissues;
14.7 	(4) the extent to which the conduct of the research activities complies with 
14.8 	applicable Board of Regents policies and procedures related to acquisition, sale, handling, 
14.9 	and disposition of human tissues, including fetal tissues; and
14.10 	(5) whether applicable Board of Regents policies include provisions to ensure fetal 
14.11 	tissue is used in research activities only when necessary, and to ensure that the research 
14.12 	activities are conducted in an ethical manner, including whether procedures and protocols 
14.13 	for oversight have been implemented to verify compliance with these policies.
14.14 	(b) As used in this section, "research activities" include any academic fetal tissue 
14.15 	research or fetal tissue transplantation research activity or program conducted in a 
14.16 	University of Minnesota facility, or that is supported, directly or indirectly, by University 
14.17 	of Minnesota funds.

14.18 	EFFECTIVE DATE. This section is effective the day following final enactment. 
14.19 	The legislative auditor is requested to complete the review no later than 60 days following 
14.20 	final enactment.

14.21 	ARTICLE 5
14.22 	MONITORING OF PSYCHIATRIC DRUG TRIALS

14.23 	Section 1. Minnesota Statutes 2014, section 245.92, is amended to read:
14.24 	245.92 OFFICE OF OMBUDSMAN; CREATION; QUALIFICATIONS; 
14.25 	FUNCTION.
14.26 	The ombudsman for persons receiving services or treatment for mental illness, 
14.27 	developmental disabilities, chemical dependency, or emotional disturbance shall promote 
14.28 	the highest attainable standards of treatment, competence, efficiency, and justice. The 
14.29 	ombudsman may gather information and data about decisions, acts, and other matters of an 
14.30 	agency, facility, or program, and shall monitor the treatment of individuals participating in 
14.31 	a University of Minnesota Department of Psychiatry clinical drug trial. The ombudsman 
14.32 	is appointed by the governor, serves in the unclassified service, and may be removed only 
14.33 	for just cause. The ombudsman must be selected without regard to political affiliation and 
14.34 	must be a person who has knowledge and experience concerning the treatment, needs, 
15.1 	and rights of clients, and who is highly competent and qualified. No person may serve as 
15.2 	ombudsman while holding another public office.

15.3 	Sec. 2. Minnesota Statutes 2014, section 245.94, is amended to read:
15.4 	245.94 POWERS OF OMBUDSMAN; REVIEWS AND EVALUATIONS; 
15.5 	RECOMMENDATIONS.
15.6 		Subdivision 1.Powers. (a) The ombudsman may prescribe the methods by which 
15.7 	complaints to the office are to be made, reviewed, and acted upon. The ombudsman may 
15.8 	not levy a complaint fee.
15.9 	(b) The ombudsman may mediate or advocate on behalf of a client.
15.10 	(c) The ombudsman may investigate the quality of services provided to clients and 
15.11 	determine the extent to which quality assurance mechanisms within state and county 
15.12 	government work to promote the health, safety, and welfare of clients, other than clients 
15.13 	in acute care facilities who are receiving services not paid for by public funds. The 
15.14 	ombudsman is a health oversight agency as defined in Code of Federal Regulations, 
15.15 	title 45, section 164.501.
15.16 	(d) At the request of a client, or upon receiving a complaint or other information 
15.17 	affording reasonable grounds to believe that the rights of a client who is not capable 
15.18 	of requesting assistance have been adversely affected, the ombudsman may gather 
15.19 	information and data about and analyze, on behalf of the client, the actions of an agency, 
15.20 	facility, or program.
15.21 	(e) The ombudsman may gather, on behalf of a client, records of an agency, facility, 
15.22 	or program, or records related to clinical drug trials from the University of Minnesota 
15.23 	Department of Psychiatry, if the records relate to a matter that is within the scope of the 
15.24 	ombudsman's authority. If the records are private and the client is capable of providing 
15.25 	consent, the ombudsman shall first obtain the client's consent. The ombudsman is 
15.26 	not required to obtain consent for access to private data on clients with developmental 
15.27 	disabilities. The ombudsman is not required to obtain consent for access to private data 
15.28 	on decedents who were receiving services for mental illness, developmental disabilities, 
15.29 	or emotional disturbance. All data collected, created, received, or maintained by the 
15.30 	ombudsman are governed by chapter 13 and other applicable law.
15.31 	(f) Notwithstanding any law to the contrary, the ombudsman may subpoena a person 
15.32 	to appear, give testimony, or produce documents or other evidence that the ombudsman 
15.33 	considers relevant to a matter under inquiry. The ombudsman may petition the appropriate 
15.34 	court in Ramsey County to enforce the subpoena. A witness who is at a hearing or is part 
15.35 	of an investigation possesses the same privileges that a witness possesses in the courts or 
16.1 	under the law of this state. Data obtained from a person under this paragraph are private 
16.2 	data as defined in section 13.02, subdivision 12.
16.3 	(g) The ombudsman may, at reasonable times in the course of conducting a review, 
16.4 	enter and view premises within the control of an agency, facility, or program.
16.5 	(h) The ombudsman may attend Department of Human Services Review Board 
16.6 	and Special Review Board proceedings; proceedings regarding the transfer of patients 
16.7 	or residents, as defined in section 246.50, subdivisions 4 and 4a, between institutions 
16.8 	operated by the Department of Human Services; and, subject to the consent of the affected 
16.9 	client, other proceedings affecting the rights of clients. The ombudsman is not required to 
16.10 	obtain consent to attend meetings or proceedings and have access to private data on clients 
16.11 	with developmental disabilities.
16.12 	(i) The ombudsman shall gather data of agencies, facilities, or programs classified 
16.13 	as private or confidential as defined in section 13.02, subdivisions 3 and 12, regarding 
16.14 	services provided to clients with developmental disabilities.
16.15 	(j) To avoid duplication and preserve evidence, the ombudsman shall inform 
16.16 	relevant licensing or regulatory officials before undertaking a review of an action of 
16.17 	the facility or program.
16.18 	(k) The ombudsman shall monitor the treatment of individuals participating in 
16.19 	a University of Minnesota Department of Psychiatry clinical drug trial and ensure that 
16.20 	all protections for human subjects required by federal law and the Institutional Review 
16.21 	Board are provided.
16.22 	(l) Sections 245.91 to 245.97 are in addition to other provisions of law under which 
16.23 	any other remedy or right is provided.
16.24 		Subd. 2.Matters appropriate for review. (a) In selecting matters for review by the 
16.25 	office, the ombudsman shall give particular attention to unusual deaths or injuries of a 
16.26 	client or reports of emergency use of manual restraint as identified in section 245D.061, 
16.27 	served by an agency, facility, or program, or actions of an agency, facility, or program that:
16.28 	(1) may be contrary to law or rule;
16.29 	(2) may be unreasonable, unfair, oppressive, or inconsistent with a policy or order of 
16.30 	an agency, facility, or program;
16.31 	(3) may be mistaken in law or arbitrary in the ascertainment of facts;
16.32 	(4) may be unclear or inadequately explained, when reasons should have been 
16.33 	revealed;
16.34 	(5) may result in abuse or neglect of a person receiving treatment;
16.35 	(6) may disregard the rights of a client or other individual served by an agency 
16.36 	or facility;
17.1 	(7) may impede or promote independence, community integration, and productivity 
17.2 	for clients; or
17.3 	(8) may impede or improve the monitoring or evaluation of services provided to 
17.4 	clients.
17.5 	(b) The ombudsman shall, in selecting matters for review and in the course of the 
17.6 	review, avoid duplicating other investigations or regulatory efforts.
17.7 	(c) The ombudsman shall give particular attention to the death or unusual injury of 
17.8 	any individual who is participating in a University of Minnesota Department of Psychiatry 
17.9 	clinical drug trial.
17.10 		Subd. 2a.Mandatory reporting. Within 24 hours after a client suffers death or 
17.11 	serious injury, the agency, facility, or program director, or lead investigator of a clinical 
17.12 	drug trial at the University of Minnesota Department of Psychiatry shall notify the 
17.13 	ombudsman of the death or serious injury. The emergency use of manual restraint must 
17.14 	be reported to the ombudsman as required under section 245D.061, subdivision 8. The 
17.15 	ombudsman is authorized to receive identifying information about a deceased client 
17.16 	according to Code of Federal Regulations, title 42, section 2.15, paragraph (b).
17.17 		Subd. 3.Complaints. (a) The ombudsman may receive a complaint from any 
17.18 	source concerning an action of an agency, facility, or program. After completing a review, 
17.19 	the ombudsman shall inform the complainant and the agency, facility, or program. 
17.20 	No client may be punished nor may the general condition of the client's treatment be 
17.21 	unfavorably altered as a result of an investigation, a complaint by the client, or by another 
17.22 	person on the client's behalf. An agency, facility, or program shall not retaliate or take 
17.23 	adverse action against a client or other person, who in good faith makes a complaint or 
17.24 	assists in an investigation. The ombudsman may classify as confidential, the identity of a 
17.25 	complainant, upon request of the complainant.
17.26 	(b) The ombudsman shall receive a complaint from any source concerning an 
17.27 	action or inaction of the University of Minnesota Department of Psychiatry related 
17.28 	to an individual who is enrolled in a department-approved clinical drug trial. No 
17.29 	individual participating in the trial may be punished, nor may the general condition of 
17.30 	the individual's treatment be unfavorably altered, as a result of an investigation or a 
17.31 	complaint by the individual or the individual's advocate. The university shall not retaliate 
17.32 	or take adverse action against any person who in good faith makes a complaint or assists 
17.33 	in an investigation. The ombudsman may classify the identity of the complainant as 
17.34 	confidential, upon request of the complainant.
17.35 		Subd. 4.Recommendations to agency. (a) If, after reviewing a complaint or 
17.36 	conducting an investigation and considering the response of an agency, facility, or 
18.1 	program and any other pertinent material, the ombudsman determines that the complaint 
18.2 	has merit or the investigation reveals a problem, the ombudsman may recommend that 
18.3 	the agency, facility, or program:
18.4 	(1) consider the matter further;
18.5 	(2) modify or cancel its actions;
18.6 	(3) alter a rule, order, or internal policy;
18.7 	(4) explain more fully the action in question; or
18.8 	(5) take other action.
18.9 	(b) At the ombudsman's request, the agency, facility, or program shall, within a 
18.10 	reasonable time, inform the ombudsman about the action taken on the recommendation 
18.11 	or the reasons for not complying with it.
18.12 		Subd. 5.Recommendations to University of Minnesota. If, after reviewing a 
18.13 	complaint or conducting an investigation and considering the response of the clinical drug 
18.14 	trial's primary investigator or the Department of Psychiatry, the ombudsman determines 
18.15 	that the complaint has merit or the investigation reveals noncompliance with the federal 
18.16 	protection of human subjects requirements or the requirements of the Institutional Review 
18.17 	Board, the ombudsman shall recommend that the Board of Regents of the University of 
18.18 	Minnesota take corrective action to remedy the violations.

18.19 	Sec. 3. Minnesota Statutes 2014, section 245.945, is amended to read:
18.20 	245.945 REIMBURSEMENT TO OMBUDSMAN FOR MENTAL HEALTH 
18.21 	AND DEVELOPMENTAL DISABILITIES.
18.22 	(a) The commissioner shall obtain federal financial participation for eligible activity 
18.23 	by the ombudsman for mental health and developmental disabilities. The ombudsman 
18.24 	shall maintain and transmit to the Department of Human Services documentation that is 
18.25 	necessary in order to obtain federal funds.
18.26 	(b) The Board of Regents of the University of Minnesota shall reimburse the Office 
18.27 	of the Ombudsman for Mental Health and Developmental Disabilities for the oversight 
18.28 	costs incurred in monitoring participants in Department of Psychiatry clinical drug trials. 
18.29 	The ombudsman shall maintain and transmit documentation of costs incurred to the Board 
18.30 	of Regents of the University of Minnesota.

18.31 	Sec. 4. Minnesota Statutes 2014, section 245.95, subdivision 1, is amended to read:
18.32 		Subdivision 1.Specific reports. The ombudsman may send conclusions and 
18.33 	suggestions concerning any matter reviewed to the governor. Before making public a 
18.34 	conclusion or recommendation that expressly or implicitly criticizes an agency, facility, 
19.1 	program, or any person, the ombudsman shall consult with the governor and the agency, 
19.2 	facility, program, or person concerning the conclusion or recommendation. When sending 
19.3 	a conclusion or recommendation to the governor that is adverse to an agency, facility, 
19.4 	program, or any person, the ombudsman shall include any statement of reasonable length 
19.5 	made by that agency, facility, program, or person in defense or mitigation of the office's 
19.6 	conclusion or recommendation. For purposes of this subdivision, "agency, facility, 
19.7 	program, or any person" includes the University of Minnesota Department of Psychiatry 
19.8 	and its employees working in clinical drug trials.

19.9 	Sec. 5. Minnesota Statutes 2014, section 245.97, subdivision 5, is amended to read:
19.10 		Subd. 5.Medical Review Subcommittee. At least five members of the committee, 
19.11 	including at least three physicians, one of whom is a psychiatrist, must be designated by 
19.12 	the governor to serve as a Medical Review Subcommittee. Terms of service, vacancies, 
19.13 	and compensation are governed by subdivision 2. The governor shall designate one of 
19.14 	the members to serve as chair of the subcommittee. The Medical Review Subcommittee 
19.15 	may have access to private and confidential data collected or created by the ombudsman 
19.16 	that are necessary to fulfill the duties of the Medical Review Subcommittee under this 
19.17 	section and may:
19.18 	(1) make a preliminary determination of whether the death of a client that has been 
19.19 	brought to its attention is unusual or reasonably appears to have resulted from causes other 
19.20 	than natural causes and warrants investigation;
19.21 	(2) review the causes of and circumstances surrounding the death;
19.22 	(3) request the county coroner or medical examiner to conduct an autopsy;
19.23 	(4) assist an agency in its investigations of unusual deaths and deaths from causes 
19.24 	other than natural causes; and
19.25 	(5) make a preliminary determination of whether the death of a participant in a 
19.26 	clinical drug trial conducted by the University of Minnesota Department of Psychiatry 
19.27 	appears to have resulted from causes other than natural causes and warrants investigation 
19.28 	and reporting as required by federal laws on the protection of human subjects; and
19.29 	(6) submit a report regarding the death of a client to the committee, the ombudsman, 
19.30 	the client's next-of-kin, and the facility where the death occurred and, where appropriate, 
19.31 	make recommendations to prevent recurrence of similar deaths to the head of each affected 
19.32 	agency or facility, or the Board of Regents of the University of Minnesota.

20.1 	ARTICLE 6
20.2 	COLLEGIATE RECOVERY PROGRAM

20.3 	Section 1. [137.175] ROCHESTER CAMPUS; COLLEGIATE RECOVERY 
20.4 	PROGRAM.
20.5 	(a) The Board of Regents is requested to establish a collegiate recovery program 
20.6 	on its Rochester campus. The purpose of the program must be to provide structured 
20.7 	support for students in recovery from alcohol or chemical addiction or other addictive 
20.8 	behaviors. Program activities may include, but are not limited to, specialized professional 
20.9 	support through academic, career, and financial advising; establishment of on-campus or 
20.10 	residential peer support communities; and opportunities for personal growth through 
20.11 	leadership development and other community engagement activities.
20.12 	(b) No later than January 1, 2020, the Board of Regents must submit a report to the 
20.13 	chairs and ranking minority members of the legislative committees with jurisdiction over 
20.14 	higher education finance and policy on campus recovery program outcomes, if the program 
20.15 	is established. Based on available data, the report must describe, in summary form, the 
20.16 	number of students participating in the program and the success rate of participants, 
20.17 	including retention and graduation rates and long-term recovery and relapse rates.

20.18 	Sec. 2. Laws 2015, chapter 69, article 1, section 5, subdivision 2, is amended to read:

20.19	Subd. 2.Operations and Maintenance
 		559,111,000
		559,111,000
	
20.20 	This appropriation includes funding for 
20.21 	operation and maintenance of the system. Of 
20.22 	the amount appropriated in this subdivision:
20.23 	$11,100,000 in fiscal year 2016 and 
20.24 	$11,100,000 in fiscal year 2017 are to 
20.25 	minimize any increase in a student's cost 
20.26 	of attendance; for research to solve the 
20.27 	challenges facing our state, nation, and 
20.28 	world; to educate a diverse population of 
20.29 	Minnesotans from every community who 
20.30 	show the greatest promise; and for public 
20.31 	service that builds lasting partnerships with 
20.32 	communities across the state to address our 
21.1 	most complex and pressing issues. The 
21.2 	Board of Regents is requested to:
21.3 	(1) maintain a low cost of mission and 
21.4 	advance operational excellence;
21.5 	(2) increase the diversity of the university's 
21.6 	students, faculty, and staff; and
21.7 	(3) strengthen the university's relationships 
21.8 	with the agriculture industry and the 
21.9 	communities of greater Minnesota.
21.10 	$15,000,000 in fiscal year 2016 and 
21.11 	$15,000,000 in fiscal year 2017 are to:
21.12 	(1) increase the medical school's research 
21.13 	capacity;
21.14 	(2) improve the medical school's ranking in 
21.15 	National Institutes of Health funding;
21.16 	(3) ensure the medical school's national 
21.17 	prominence by attracting and retaining 
21.18 	world-class faculty, staff, and students;
21.19 	(4) invest in physician training programs in 
21.20 	rural and underserved communities; and
21.21 	(5) translate the medical school's research 
21.22 	discoveries into new treatments and cures to 
21.23 	improve the health of Minnesotans.
21.24 	The Board of Regents is requested to 
21.25 	consider hiring additional faculty to conduct 
21.26 	research related to regenerative medicine. 
21.27 	$257,200 in fiscal year 2017 is for design 
21.28 	and implementation of a collegiate recovery 
21.29 	program on the University of Minnesota, 
21.30 	Rochester campus consistent with Minnesota 
21.31 	Statutes, section 137.175. This is a onetime 
21.32 	appropriation and is available until June 
21.33 	30, 2019. Beginning in fiscal year 2020, 
22.1 	$179,000 is added to the base to support 
22.2 	operation and growth of the program.
22.3 	Five percent of the fiscal year 2017 
22.4 	appropriation specified in this subdivision 
22.5 	is available according to the schedule in 
22.6 	clauses (1) to (5) in fiscal year 2017 when 
22.7 	the Board of Regents of the University of 
22.8 	Minnesota demonstrates to the commissioner 
22.9 	of management and budget that the board 
22.10 	has met the following specified number of 
22.11 	performance goals:
22.12 	(1) 100 percent if the board meets three, four, 
22.13 	or five goals;
22.14 	(2) 67 percent if two of the goals are met;
22.15 	(3) 33 percent if one of the goals are met; and
22.16 	(4) zero percent if none of the goals are met.
22.17 	The performance goals are:
22.18 	(1) increase by at least one percent 
22.19 	the four-year, five-year, or six-year 
22.20 	undergraduate graduation rates, averaged 
22.21 	over three years, for students of color 
22.22 	systemwide at the University of Minnesota 
22.23 	reported in fall 2016 over fall 2014. The 
22.24 	average rate for fall 2014 is calculated with 
22.25 	the graduation rates reported in fall 2012, 
22.26 	2013, and 2014;
22.27 	(2) increase by at least two percent the 
22.28 	total number of undergraduate STEM 
22.29 	degrees, averaged over three years, conferred 
22.30 	systemwide by the University of Minnesota 
22.31 	reported in fiscal year 2016 over fiscal year 
22.32 	2014. The averaged number for fiscal year 
22.33 	2014 is calculated with the fiscal year 2012, 
22.34 	2013, and 2014 numbers;
23.1 	(3) increase by at least one percent the 
23.2 	four-year undergraduate graduation rate at 
23.3 	the University of Minnesota reported in fall 
23.4 	2016 over fall 2014. The average rate for 
23.5 	fall 2014 is calculated with the graduation 
23.6 	rates reported in fall 2012, 2013, and 2014. 
23.7 	The averaged number for fiscal year 2014 is 
23.8 	calculated with the fiscal year 2012, 2013, 
23.9 	and 2014 numbers;
23.10 	(4) for fiscal year 2016, reallocate 
23.11 	$15,000,000 of administrative costs. The 
23.12 	Board of Regents is requested to redirect 
23.13 	those funds to invest in direct mission 
23.14 	activities, stem growth in cost of attendance, 
23.15 	and to programs that benefit students; and
23.16 	(5) increase licensing disclosures by three 
23.17 	percent for fiscal year 2016 over fiscal year 
23.18 	2015.
23.19 	By August 1, 2015, the Board of Regents and 
23.20 	the Office of Higher Education must agree on 
23.21 	specific numerical indicators and definitions 
23.22 	for each of the five goals that will be used to 
23.23 	demonstrate the University of Minnesota's 
23.24 	attainment of each goal. On or before April 
23.25 	1, 2016, the Board of Regents must report 
23.26 	to the legislative committees with primary 
23.27 	jurisdiction over higher education finance 
23.28 	and policy the progress of the University of 
23.29 	Minnesota toward attaining the goals. The 
23.30 	appropriation base for the next biennium shall 
23.31 	include appropriations not made available 
23.32 	under this subdivision for failure to meet 
23.33 	performance goals. All of the appropriation 
23.34 	that is not available due to failure to meet 
23.35 	performance goals is appropriated to the 
24.1 	commissioner of the Office of Higher 
24.2 	Education for fiscal year 2017 for the purpose 
24.3 	of the state grant program under Minnesota 
24.4 	Statutes, section 136A.121.
24.5 	Performance metrics are intended to facilitate 
24.6 	progress towards the attainment goal under 
24.7 	Minnesota Statutes, section 135A.012.
24.8 	Beginning in fiscal year 2018, the operations 
24.9 	and maintenance base appropriation is 
24.10 	$559,111,000.

24.11 	ARTICLE 7
24.12 	GENERAL EDUCATION

24.13 	Section 1. Minnesota Statutes 2014, section 123A.24, subdivision 2, is amended to read:
24.14 		Subd. 2.Cooperative unit defined. For the purposes of this section, a cooperative 
24.15 	unit is:
24.16 	(1) an education district organized under sections 123A.15 to 123A.19;
24.17 	(2) a cooperative vocational center organized under section 123A.22;
24.18 	(3) an intermediate district organized under chapter 136D;
24.19 	(4) a service cooperative organized under section 123A.21; or
24.20 	(5) a regional management information center organized under section 123A.23 or 
24.21 	as a joint powers district according to section 471.59.; or
24.22 	(6) a special education cooperative organized under section 471.59.

24.23 	Sec. 2. Minnesota Statutes 2014, section 124D.111, is amended by adding a 
24.24 	subdivision to read:
24.25 		Subd. 2a.Federal child and adult care food program; financial viability. (a) A 
24.26 	nonprofit organization with fewer than three years of experience and performance data 
24.27 	that is applying for approval as a multisite sponsoring organization under the federal child 
24.28 	and adult care food program may demonstrate its financial viability by submitting to the 
24.29 	commissioner a written statement from a certified public accountant indicating, based on 
24.30 	generally accepted accounting principles, that the nonprofit organization has the financial 
24.31 	resources needed to sponsor the program on a daily basis and to withstand temporary 
24.32 	interruptions in program payments. The statement from a certified public accountant 
24.33 	satisfies the requirement for a nonprofit organization to demonstrate its financial viability 
25.1 	under the federal child and adult care food program in Minnesota. Consistent with 
25.2 	this paragraph, the commissioner must post on the department's Web site criteria for 
25.3 	interested nonprofit organizations, those with fewer than three years of experience and 
25.4 	performance data, and those with three or more years of experience and performance data, 
25.5 	to demonstrate financial viability for the Minnesota program.
25.6 	(b) The commissioner must use an expedited process to reconsider any application 
25.7 	by a nonprofit organization under paragraph (a) applying for approval as a multisite 
25.8 	sponsoring organization under the federal child and adult care food program submitted to 
25.9 	the commissioner after July 1, 2015, if the commissioner denied the application, in whole 
25.10 	or in part, based upon the applicant's inability to demonstrate financial viability.

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

25.12 	Sec. 3. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 1, is 
25.13 	amended to read:
25.14 		Subdivision 1.General education revenue. (a) Notwithstanding any law to the 
25.15 	contrary, a school board in any school year may adopt a resolution declaring an urgent 
25.16 	educational need for that school year and resolve to reallocate the district's general 
25.17 	education revenue under this section to provide more effective education programs and 
25.18 	services designed to improve the educational outcomes of all students enrolled in the 
25.19 	district. A board action under this paragraph must not increase state aid obligations to 
25.20 	the district, result in additional property tax authority for the district, or interfere with 
25.21 	federally mandated laws or state or federal court orders.
25.22 	(b) The general education revenue for each district equals the sum of the district's 
25.23 	basic revenue, extended time revenue, gifted and talented revenue, declining enrollment 
25.24 	revenue, local optional revenue, small schools revenue, basic skills revenue, secondary 
25.25 	sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total 
25.26 	operating capital revenue, equity revenue, pension adjustment revenue, and transition 
25.27 	revenue.

25.28 	EFFECTIVE DATE. This section is effective July 1, 2016.

25.29 	Sec. 4. Minnesota Statutes 2015 Supplement, section 126C.10, subdivision 13a, 
25.30 	is amended to read:
25.31 		Subd. 13a.Operating capital levy. To obtain operating capital revenue, a district 
25.32 	may levy an amount not more than the product of its operating capital revenue for the 
25.33 	fiscal year times the lesser of one or the ratio of its adjusted net tax capacity per adjusted 
26.1 	pupil unit to the operating capital equalizing factor. The operating capital equalizing factor 
26.2 	equals $14,500 for fiscal years 2015 and 2016, $14,740 for fiscal year 2017, $17,473
26.3 	$17,495 for fiscal year 2018, and $20,510 $20,532 for fiscal year 2019 and later.

26.4 	Sec. 5. Minnesota Statutes 2014, section 126C.10, subdivision 24, is amended to read:
26.5 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
26.6 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
26.7 	revenue, and referendum revenue is less than the value of the school district at or 
26.8 	immediately above the 95th percentile of school districts in its equity region for those 
26.9 	revenue categories; and
26.10 	(2) the school district's administrative offices are not located in a city of the first 
26.11 	class on July 1, 1999.
26.12 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
26.13 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
26.14 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
26.15 	equity index computed under subdivision 27.
26.16 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
26.17 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
26.18 	units for that year times $14.
26.19 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
26.20 	equal to the district's adjusted pupil units times the difference between ten percent of the 
26.21 	statewide average amount of referendum revenue per adjusted pupil unit for that year and 
26.22 	the district's referendum revenue per adjusted pupil unit. A school district's revenue under 
26.23 	this paragraph must not exceed $100,000 for that year.
26.24 	(e) A school district's equity revenue for a school district located in the metro equity 
26.25 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25. 
26.26 	Beginning in fiscal year 2018, a district's equity revenue adjustment under this paragraph 
26.27 	is available only after the school board has adopted a written resolution authorizing the 
26.28 	equity revenue adjustment. The resolution must be adopted at a board meeting after the 
26.29 	public has been given an opportunity to speak on the resolution. A resolution adopted 
26.30 	under this subdivision may authorize the revenue adjustment for up to five years, and the 
26.31 	board may subsequently reauthorize the revenue in increments of up to five years.
26.32 	(f) A school district's additional equity revenue equals $50 times its adjusted pupil 
26.33 	units.

26.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
26.35 	and later.

27.1 	Sec. 6. Minnesota Statutes 2015 Supplement, section 126C.15, subdivision 1, is 
27.2 	amended to read:
27.3 		Subdivision 1.Use of revenue. The basic skills revenue under section 126C.10, 
27.4 	subdivision 4, must be reserved and used to meet the educational needs of pupils who 
27.5 	enroll under-prepared to learn and whose progress toward meeting state or local content 
27.6 	or performance standards is below the level that is appropriate for learners of their age. 
27.7 	Basic skills revenue may also be used for programs designed to prepare children and their 
27.8 	families for entry into school whether the student first enrolls in kindergarten or first grade. 
27.9 	Any of the following may be provided to meet these learners' needs:
27.10 	(1) direct instructional services under the assurance of mastery program according 
27.11 	to section 124D.66;
27.12 	(2) remedial instruction in reading, language arts, mathematics, other content areas, 
27.13 	or study skills to improve the achievement level of these learners;
27.14 	(3) additional teachers and teacher aides to provide more individualized instruction 
27.15 	to these learners through individual tutoring, lower instructor-to-learner ratios, or team 
27.16 	teaching;
27.17 	(4) a longer school day or week during the regular school year or through a summer 
27.18 	program that may be offered directly by the site or under a performance-based contract 
27.19 	with a community-based organization;
27.20 	(5) recruitment and new teacher development activities through quality mentor-led 
27.21 	induction or "grow your own" initiatives;
27.22 	(6) a hiring bonus or other added compensation for a teacher identified as effective 
27.23 	or highly effective under the local teacher professional review cycle who agrees to work 
27.24 	in a hard-to-fill position or hard-to-staff school setting such as a school with a majority 
27.25 	of students whose families meet federal poverty guidelines, a geographically isolated 
27.26 	school, or a school identified by the state as eligible for targeted programs or services 
27.27 	for its students;
27.28 	(5) (7) comprehensive and ongoing staff development consistent with district and 
27.29 	site plans according to section 122A.60 and to implement plans under section 120B.12, 
27.30 	subdivision 4a, for teachers, teacher aides, principals, and other personnel to improve 
27.31 	their ability to identify the needs of these learners and provide appropriate remediation, 
27.32 	intervention, accommodations, or modifications;
27.33 	(6) (8) instructional materials, digital learning, and technology appropriate for 
27.34 	meeting the individual needs of these learners;
27.35 	(7) (9) programs to reduce truancy, encourage completion of high school, enhance 
27.36 	self-concept, provide health services, provide nutrition services, provide a safe and secure 
28.1 	learning environment, provide coordination for pupils receiving services from other 
28.2 	governmental agencies, provide psychological services to determine the level of social, 
28.3 	emotional, cognitive, and intellectual development, and provide counseling services, 
28.4 	guidance services, and social work services;
28.5 	(8) (10) bilingual programs, bicultural programs, and programs for English learners;
28.6 	(9) all-day kindergarten;
28.7 	(10) (11) early education programs, parent-training programs, school readiness 
28.8 	programs, kindergarten programs for four-year-olds, voluntary home visits under section 
28.9 	124D.13, subdivision 4, and other outreach efforts designed to prepare children for 
28.10 	kindergarten;
28.11 	(11) (12) extended school day and extended school year programs, including 
28.12 	summer academies; and
28.13 	(12) (13) substantial parent involvement in developing and implementing remedial 
28.14 	education or intervention plans for a learner, including learning contracts between the 
28.15 	school, the learner, and the parent that establish achievement goals and responsibilities of 
28.16 	the learner and the learner's parent or guardian.

28.17 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

28.18 	Sec. 7. Minnesota Statutes 2015 Supplement, section 126C.15, subdivision 2, is 
28.19 	amended to read:
28.20 		Subd. 2.Building allocation. (a) Unless a plan has been adopted according to 
28.21 	paragraph (b), a district or cooperative must allocate its compensatory revenue to each 
28.22 	school building in the district or cooperative where the children who have generated the 
28.23 	revenue are served unless the school district or cooperative has received permission under 
28.24 	Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate compensatory 
28.25 	revenue according to student performance measures developed by the school board.
28.26 	(b) Notwithstanding paragraph (a), the board of a district or cooperative may allocate 
28.27 	up to 50 percent of the amount ofreallocate any or all of its compensatory revenue that 
28.28 	the district receives to school sites according to a plan adopted by the school board. 
28.29 	The money reallocated under this paragraph must be spent for the purposes listed in 
28.30 	subdivision 1, but may be spent on students in any grade, including students attending 
28.31 	school readiness or other prekindergarten programs.
28.32 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
28.33 	means education site as defined in section 123B.04, subdivision 1.
28.34 	(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue 
28.35 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
29.1 	(e) A district or cooperative with school building openings, school building 
29.2 	closings, changes in attendance area boundaries, or other changes in programs or student 
29.3 	demographics between the prior year and the current year may reallocate compensatory 
29.4 	revenue among sites to reflect these changes. A district or cooperative must report to the 
29.5 	department any adjustments it makes according to this paragraph and the department must 
29.6 	use the adjusted compensatory revenue allocations in preparing the report required under 
29.7 	section 123B.76, subdivision 3, paragraph (c).

29.8 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

29.9 	Sec. 8. Minnesota Statutes 2014, section 126C.15, subdivision 3, is amended to read:
29.10 		Subd. 3.Recommendation. A school site decision-making team, as defined in 
29.11 	section 123B.04, subdivision 2, paragraph (a), or the instruction and curriculum advisory 
29.12 	committee under section 120B.11, if the school has no school site decision team, shall may
29.13 	recommend to the school board how the compensatory education revenue will be used to 
29.14 	carry out the purpose of this section. A school district that has received permission under 
29.15 	Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate compensatory 
29.16 	revenue according to school performance measures shall share its plan for the distribution 
29.17 	of compensatory revenue with the school site decision team.

29.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

29.19 	Sec. 9. Minnesota Statutes 2014, section 127A.353, subdivision 4, is amended to read:
29.20 		Subd. 4.Duties; powers. (a) The school trust lands director shall:
29.21 	(1) take an oath of office before assuming any duties as the director;
29.22 	(2) evaluate the school trust land asset position;
29.23 	(3) determine the estimated current and potential market value of school trust lands;
29.24 	(4) advise the governor, Executive Council, commissioner of natural resources, 
29.25 	and the Legislative Permanent School Fund Commission on the management of school 
29.26 	trust lands, including:
29.27 	(i) Department of Natural Resources school trust land management plans;
29.28 	(ii) leases of school trust lands;
29.29 	(iii) royalty agreements on school trust lands;
29.30 	(iv) land sales and exchanges;
29.31 	(v) cost certification; and
29.32 	(vi) revenue generating options;
30.1 	(5) propose to the Legislative Permanent School Fund Commission legislative 
30.2 	changes that will improve the asset allocation of the school trust lands;
30.3 	(6) develop a ten-year strategic plan and a 25-year framework for management of 
30.4 	school trust lands, in conjunction with the commissioner of natural resources, that is 
30.5 	updated every five years and implemented by the commissioner, with goals to:
30.6 	(i) retain core real estate assets;
30.7 	(ii) increase the value of the real estate assets and the cash flow from those assets;
30.8 	(iii) rebalance the portfolio in assets with high performance potential and the 
30.9 	strategic disposal of selected assets;
30.10 	(iv) establish priorities for management actions; and
30.11 	(v) balance revenue enhancement and resource stewardship;
30.12 	(7) submit to the Legislative Permanent School Fund Commission for review an 
30.13 	annual budget and management plan for the director; and
30.14 	(8) keep the beneficiaries, governor, legislature, and the public informed about the 
30.15 	work of the director by reporting to the Legislative Permanent School Fund Commission 
30.16 	in a public meeting at least once during each calendar quarter.
30.17 	(b) In carrying out the duties under paragraph (a), the school trust lands director 
30.18 	shall have the authority to:
30.19 	(1) direct and control money appropriated to the director;
30.20 	(2) establish job descriptions and employ up to five employees in the unclassified 
30.21 	service, within the limitations of money appropriated to the director;
30.22 	(3) enter into interdepartmental agreements with any other state agency; and
30.23 	(4) enter into joint powers agreements under chapter 471;
30.24 	(5) evaluate and initiate real estate development projects on school trust lands with 
30.25 	the advice of the Legislative Permanent School Fund Commission in order to generate 
30.26 	long-term economic return to the permanent school fund; and
30.27 	(4) (6) submit recommendations on strategies for school trust land leases, sales, or 
30.28 	exchanges to the commissioner of natural resources and the Legislative Permanent School 
30.29 	Fund Commission.

30.30 	EFFECTIVE DATE. This section is effective July 1, 2016.

30.31 	Sec. 10. Minnesota Statutes 2014, section 127A.51, is amended to read:
30.32 	127A.51 STATEWIDE AVERAGE REVENUE.
30.33 	By October December 1 of each year the commissioner must estimate the statewide 
30.34 	average adjusted general revenue per adjusted pupil unit and the disparity in adjusted 
31.1 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
31.2 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
31.3 	information to all districts.
31.4 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
31.5 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
31.6 	to the legislature options for change in the general education formula that will limit the 
31.7 	disparity in adjusted general revenue to no more than the disparity for the previous 
31.8 	school year. The commissioner must submit the recommended options to the education 
31.9 	committees of the legislature by January 15 February 1.
31.10 	For purposes of this section and section 126C.10, adjusted general revenue means 
31.11 	the sum of basic revenue under section 126C.10, subdivision 2; referendum revenue under 
31.12 	section 126C.17; local optional revenue under section 126C.10, subdivision 2e; and equity 
31.13 	revenue under section 126C.10, subdivisions 24a and 24b.

31.14 	Sec. 11. Laws 2013, chapter 116, article 7, section 19, as amended by Laws 2015, First 
31.15 	Special Session chapter 3, article 7, section 6, is amended to read:
31.16 	Sec. 19. FUND OR ACCOUNT TRANSFER; FISCAL YEAR 2014 THROUGH 
31.17 	FISCAL YEAR 2017 ONLY.
 31.18 	(a) Notwithstanding Minnesota Statutes, section 123B.80, subdivision 3, for fiscal 
31.19 	year 2014 through fiscal year 2017 only and later, the commissioner must approve a 
31.20 	request for a fund or account transfer if the transfer does not increase state aid obligations 
31.21 	to the district or result in additional property tax authority for the district. This section 
31.22 	does not permit transfers from the community service fund, the food service fund, or the 
31.23 	reserved account for staff development under section 122A.61.
31.24 	(b) A school board may approve a fund or account transfer under paragraph (a) 
31.25 	only after adopting a resolution stating the fund or account transfer will not diminish 
31.26 	instructional opportunities for students.

31.27 	EFFECTIVE DATE. This section is effective July 1, 2016.

31.28 	Sec. 12. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 
31.29 	2, is amended to read:
31.30 		Subd. 2.General education aid. For general education aid under Minnesota 
31.31 	Statutes, section 126C.13, subdivision 4:

32.1
32.2		$  
	6,624,310,000
6,649,435,000
	.....
	2016
	
32.3
32.4		$ 
	6,761,574,000
6,794,192,000
	.....
	2017
	
32.5 	The 2016 appropriation includes $622,908,000 for 2015 and $6,001,405,000
32.6 	$6,026,527,000 for 2016.
32.7 	The 2017 appropriation includes $638,812,000 $641,412,000 for 2016 and 
32.8 	$6,122,762,000 $6,152,780,000 for 2017.

32.9 	Sec. 13. VOLUNTARY BOUNDARY ALIGNMENT; MOORHEAD AND 
32.10 	DILWORTH-GLYNDON-FELTON.
 32.11 		Subdivision 1.Boundary realignment allowed. The school boards of Independent 
32.12 	School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may realign 
32.13 	their shared district boundaries according to the provisions of this section.
32.14 		Subd. 2.Plan to establish new boundaries. (a) The school boards of Independent 
32.15 	School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, may jointly 
32.16 	develop a plan to realign their shared school district boundaries over a period of years. 
32.17 	(b) The plan must specify and identify each group of parcels that will be transferred 
32.18 	and the method used to determine the year during which each set of parcels is transferred. 
32.19 	The method of transfer may include an analysis of the relative tax base of the parcels to 
32.20 	be transferred and may make the transfers of parcels effective upon the relationship in 
32.21 	relative tax bases.
32.22 	(c) The written plan must be adopted by each school board after the board has 
32.23 	allowed public testimony on the plan.
32.24 	(d) The plan must be filed with both the county auditor and the commissioner of 
32.25 	education.
32.26 	(e) After adopting the plan, each school board must publish notice of the plan 
32.27 	realigning district boundaries. The notice must include a general description of the area 
32.28 	that will be affected by the proposed boundary alignment and the method by which the 
32.29 	boundaries will be realigned. The notice must also be mailed to each property owner of 
32.30 	record in the area proposed for realignment. 
32.31 		Subd. 3.Bonded debt. As of the effective date of each exchange of parcels between 
32.32 	the two school districts, for the next and subsequent tax years, the taxable property in the 
32.33 	newly aligned parcel is taxable for a portion of the bonded debt of the school district to 
32.34 	which the property is attached and is not taxable for the bonded debt from the school 
32.35 	district from which the property is detached.
33.1 		Subd. 4.County auditor notified. After adoption of the plan, each school board 
33.2 	must provide a copy of the plan to the county auditor. The county auditor may request 
33.3 	any other necessary information from the school districts to affect the transfer of parcels 
33.4 	between the school districts. Each year, the school districts must notify the county auditor 
33.5 	of what block of parcels, if any, will be transferred between the two school districts. The 
33.6 	county auditor must notify each affected property owner of the boundary change.
33.7 		Subd. 5.Report to Department of Education. Upon adoption of the plan, the 
33.8 	school boards must submit a copy of the plan to the Department of Education. The districts 
33.9 	must also provide any additional information necessary for computing school aids and 
33.10 	levies to the Department of Education in the form and manner requested by the department.

33.11 	EFFECTIVE DATE. This section is effective the day after the school boards of 
33.12 	Independent School Districts Nos. 152, Moorhead, and 2164, Dilworth-Glyndon-Felton, 
33.13 	and their respective chief clerical officers timely comply with Minnesota Statutes, section 
33.14 	645.021, subdivisions 2 and 3.

33.15 	Sec. 14. GLENVILLE-EMMONS SCHOOL DISTRICT; OPERATING 
33.16 	REFERENDUM ADJUSTMENT.
 33.17 		Subdivision 1.Year first effective. Notwithstanding any law to the contrary, the 
33.18 	operating referendum approved by the voters of Independent School District No. 2886, 
33.19 	Glenville-Emmons, in April 2015, is first effective for fiscal year 2017 and may run for 
33.20 	the number of years stated on the ballot. The total referendum authority for fiscal year 
33.21 	2017, including any board-approved authority, may not exceed the amount approved 
33.22 	by the voters.
33.23 		Subd. 2.Documentation and process. The board of Independent School District 
33.24 	No. 2886, Glenville-Emmons, must submit to the commissioner of education the following:
33.25 	(1) a unanimously adopted written resolution of the board at a public meeting 
33.26 	authorizing the operating referendum to begin in fiscal year 2017;
33.27 	(2) documentation showing that the district's approved plan to eliminate its statutory 
33.28 	operating debt is being followed; and
33.29 	(3) any other information requested by the commissioner.
33.30 		Subd. 3.Levy adjustment. Independent School District No. 2886, 
33.31 	Glenville-Emmons, may certify the levy to accompany the fiscal year 2017 operating 
33.32 	referendum over a three-year period beginning with taxes payable in 2017.

33.33 	Sec. 15. EQUITY AID; FISCAL YEAR 2017.
 34.1 	For fiscal year 2017 only, the entire amount of the equity revenue adjustment under 
34.2 	section 5 is paid through state aid.

34.3 	Sec. 16. REPORT ON POSTSECONDARY ENROLLMENT OPTIONS 
34.4 	PROGRAM.
 34.5 	The commissioner of education must include in its 2017 report to the legislature 
34.6 	on dual credit programs the number of students participating in early middle college 
34.7 	programs and the number of English language learners participating in each type of dual 
34.8 	enrollment program. The commissioner must also include recommendations about how to 
34.9 	expand participation in early middle college programs for English language learners.

34.10 	Sec. 17. REVISOR'S INSTRUCTION.
 34.11 	The revisor of statutes shall codify section 11 in Minnesota Statutes, section 
34.12 	123B.79, consistent with other limitations on school district fund and account transfers 
34.13 	and appropriately revise any statutory cross-reference consistent with that recoding.

34.14 	ARTICLE 8
34.15 	EDUCATION EXCELLENCE

34.16 	Section 1. [119A.035] SCHOOL CRISIS RESPONSE TEAMS.
34.17 		Subdivision 1.Commissioner's duties. To ensure timely responses to school crises, 
34.18 	the commissioner must work in cooperation with the Minnesota School Safety Center to 
34.19 	collect, maintain, and make available to schools contact information for crisis response 
34.20 	teams throughout the state.
34.21 		Subd. 2.Crisis response teams. In regions of Minnesota where an existing crisis 
34.22 	response team has not been formed by a school district, county, or city, the commissioner, 
34.23 	in cooperation with the Minnesota School Safety Center, must convene a working group 
34.24 	in each region to develop a plan to form a crisis response team for that region. Team 
34.25 	members from the public and private sectors may represent various disciplines, including 
34.26 	school administrators, guidance counselors, psychologists, social workers, teachers, 
34.27 	nurses, security experts, media relations professionals, and other related areas.

34.28 	Sec. 2. Minnesota Statutes 2014, section 120A.22, subdivision 12, is amended to read:
34.29 		Subd. 12.Legitimate exemptions. (a) A parent, guardian, or other person having 
34.30 	control of a child may apply to a school district to have the child excused from attendance
34.31 	attending for the whole or any part of the time school is in session or participating in a 
34.32 	physical education class during any school year. Application may be made to any member 
35.1 	of the board, a truant officer, a principal, or the superintendent. The school district may 
35.2 	state in its school attendance policy that it may ask the student's parent or legal guardian to 
35.3 	verify in writing the reason for the child's absence from school or not participating in a 
35.4 	physical education class. A note from a physician or a licensed mental health professional 
35.5 	stating that the child cannot attend school or participate in a physical education class 
35.6 	is a valid excuse. The board of the district in which the child resides may approve the 
35.7 	application upon the following being demonstrated to the satisfaction of that board:
35.8 	(1) that the child's physical or mental health is such as to prevent attendance at
35.9 	attending  school or participating in a physical education class or application applying to 
35.10 	study for the period required, which includes:
35.11 	(i) child illness, medical, dental, orthodontic, or counseling appointments;
35.12 	(ii) family emergencies;
35.13 	(iii) the death or serious illness or funeral of an immediate family member;
35.14 	(iv) active duty in any military branch of the United States;
35.15 	(v) the child has a condition that requires ongoing treatment for a mental health 
35.16 	diagnosis; or
35.17 	(vi) other exemptions included in the district's school attendance policy;
35.18 	(2) that the child has already completed state and district standards required for 
35.19 	graduation from high school; or
35.20 	(3) that it is the wish of the parent, guardian, or other person having control of the 
35.21 	child, that the child attend for a period or periods not exceeding in the aggregate three 
35.22 	hours in any week, a school for religious instruction conducted and maintained by some 
35.23 	church, or association of churches, or any Sunday school association incorporated under 
35.24 	the laws of this state, or any auxiliary thereof. This school for religious instruction must 
35.25 	be conducted and maintained in a place other than a public school building, and it must 
35.26 	not, in whole or in part, be conducted and maintained at public expense. However, a child 
35.27 	may be absent from school on such days as the child attends upon instruction according to 
35.28 	the ordinances of some church.
35.29 	(b) Notwithstanding subdivision 6, paragraph (a), a parent may withdraw a child 
35.30 	from an all-day, every day kindergarten program and put their child in a half-day program, 
35.31 	if offered, or an alternate-day program without being truant. A school board must excuse a 
35.32 	kindergarten child from a part of a school day at the request of the child's parent.

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

36.1 	Sec. 3. Minnesota Statutes 2014, section 120A.42, is amended to read:
36.2 	120A.42 CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.
36.3 	(a) The governing body of any district may contract with any of the teachers of the 
36.4 	district for the conduct of schools, and may conduct schools, on either, or any, of the 
36.5 	following holidays, provided that a clause to this effect is inserted in the teacher's contract: 
36.6 	Martin Luther King's birthday, Lincoln's and Washington's birthdays, Columbus Day 
36.7 	and Veterans' Day. On Martin Luther King's birthday, Washington's birthday, Lincoln's 
36.8 	birthday, and Veterans' Day at least one hour of the school program must be devoted to a 
36.9 	patriotic observance of the day.
36.10 	(b) A district may conduct a school program to honor Constitution Day and 
36.11 	Citizenship Day by providing opportunities for students to learn about the principles of 
36.12 	American democracy, the American system of government, American citizens' rights and 
36.13 	responsibilities, American history, and American geography, symbols, and holidays. 
36.14 	Among other activities under this paragraph, districts may administer to students the test 
36.15 	questions United States Citizenship and Immigration Services officers pose to applicants 
36.16 	for naturalization and may formally recognize students who are able to answer 80 or 
36.17 	more of the 100 questions correctly.

36.18 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
36.19 	later.

36.20 	Sec. 4. Minnesota Statutes 2014, section 120B.02, is amended by adding a subdivision 
36.21 	to read:
36.22 		Subd. 3.Required knowledge and understanding of civics. (a) For purposes of 
36.23 	this subdivision, "civics test questions" means 50 of the 100 questions that, as of January 1, 
36.24 	2015, United States citizenship and immigration services officers use to select the questions 
36.25 	they pose to applicants for naturalization so the applicants can demonstrate their knowledge 
36.26 	and understanding of the fundamentals of United States history and government, as 
36.27 	required by United States Code, title 8, section 1423. The Learning Law and Democracy 
36.28 	Foundation, in consultation with Minnesota civics teachers, must select by July 1 each year 
36.29 	50 of the 100 questions under this paragraph to serve as the state's civics test questions for 
36.30 	the proximate school year and immediately transmit the 50 selected civics test questions to 
36.31 	the department and to the Legislative Coordinating Commission, which must post the 50 
36.32 	questions it receives on the Minnesota's Legacy Web site by August 1 of that year.
36.33 	(b) A student enrolled in a public school must correctly answer at least 30 of the 50 
36.34 	civics test questions. A school or district must record on a student's transcript whether 
37.1 	and when the student answered at least 30 of 50 civics test questions correctly. A school 
37.2 	or district may exempt a student with disabilities from this requirement if the student's 
37.3 	individualized education program team determines the requirement is inappropriate and 
37.4 	establishes an alternative requirement. A school or district may administer the civics test 
37.5 	questions in a language other than English to students who qualify for English learner 
37.6 	services.
37.7 	(c) Schools and districts may administer civics test questions as part of the social 
37.8 	studies curriculum. A district must not prevent a student from graduating or deny a student 
37.9 	a high school diploma for failing to correctly answer at least 30 of 50 civics test questions.
37.10 	(d) The commissioner and public schools and school districts must not charge 
37.11 	students any fees related to this subdivision.

37.12 	EFFECTIVE DATE. This section is effective for students enrolling in grade 9 in 
37.13 	the 2017-2018 school year or later.

37.14 	Sec. 5. Minnesota Statutes 2014, section 120B.021, subdivision 1, is amended to read:
37.15 		Subdivision 1.Required academic standards. (a) The following subject areas 
37.16 	are required for statewide accountability:
37.17 	(1) language arts;
37.18 	(2) mathematics;
37.19 	(3) science;
37.20 	(4) social studies, including history, geography, economics, and government and 
37.21 	citizenship that includes civics consistent with section 120B.02, subdivision 3;
37.22 	(5) physical education;
37.23 	(6) health, for which locally developed academic standards apply; and
37.24 	(7) the arts, for which statewide or locally developed academic standards apply, as 
37.25 	determined by the school district. Public elementary and middle schools must offer at least 
37.26 	three and require at least two of the following four arts areas: dance; music; theater; and 
37.27 	visual arts. Public high schools must offer at least three and require at least one of the 
37.28 	following five arts areas: media arts; dance; music; theater; and visual arts.
37.29 	(b) For purposes of applicable federal law, the academic standards for language arts, 
37.30 	mathematics, and science apply to all public school students, except the very few students 
37.31 	with extreme cognitive or physical impairments for whom an individualized education 
37.32 	program team has determined that the required academic standards are inappropriate. An 
37.33 	individualized education program team that makes this determination must establish 
37.34 	alternative standards.
38.1 	(c) Consistent with section 120B.021, subdivision 4, paragraph (g), the department 
38.2 	must adopt the most recent Society of Health and Physical Education (SHAPE) America 
38.3 	or other nationally recognized kindergarten through grade 12 physical education standards 
38.4 	and benchmarks as the required Minnesota physical education academic standards. The 
38.5 	department may modify and adapt the national standards and benchmarks to accommodate 
38.6 	state interest so long as it maintains the purpose and integrity of the national standards. The 
38.7 	department must post on its Web site existing assessments available in the public domain 
38.8 	for school districts to use in assessing students' mastery of the physical education standards.
38.9 	(c)(d) District efforts to develop, implement, or improve instruction or curriculum 
38.10 	as a result of the provisions of this section must be consistent with sections 120B.10, 
38.11 	120B.11, and 120B.20.

38.12 	EFFECTIVE DATE. Paragraph (c) is effective for the 2021-2022 school year 
38.13 	and later.

38.14 	Sec. 6. Minnesota Statutes 2014, section 120B.021, subdivision 3, is amended to read:
38.15 		Subd. 3.Rulemaking. The commissioner, consistent with the requirements of 
38.16 	this section and section 120B.022, must adopt statewide rules under section 14.389 for 
38.17 	implementing statewide rigorous core academic standards in language arts, mathematics, 
38.18 	science, social studies, physical education, and the arts. After the rules authorized under 
38.19 	this subdivision are initially adopted, the commissioner may not amend or repeal these 
38.20 	rules nor adopt new rules on the same topic without specific legislative authorization. The 
38.21 	academic standards for language arts, mathematics, and the arts must be implemented for 
38.22 	all students beginning in the 2003-2004 school year. The academic standards for science 
38.23 	and social studies must be implemented for all students beginning in the 2005-2006 school 
38.24 	year.

38.25 	Sec. 7. Minnesota Statutes 2015 Supplement, section 120B.021, subdivision 4, is 
38.26 	amended to read:
38.27 		Subd. 4.Revisions and reviews required. (a) The commissioner of education must 
38.28 	revise and appropriately embed technology and information literacy standards consistent 
38.29 	with recommendations from school media specialists into the state's academic standards 
38.30 	and graduation requirements and implement a ten-year cycle to review and, consistent 
38.31 	with the review, revise state academic standards and related benchmarks, consistent with 
38.32 	this subdivision. During each ten-year review and revision cycle, the commissioner also 
38.33 	must examine the alignment of each required academic standard and related benchmark 
38.34 	with the knowledge and skills students need for career and college readiness and advanced 
39.1 	work in the particular subject area. The commissioner must include the contributions of 
39.2 	Minnesota American Indian tribes and communities as related to the academic standards 
39.3 	during the review and revision of the required academic standards.
39.4 	(b) The commissioner must ensure that the statewide mathematics assessments 
39.5 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
39.6 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
39.7 	(b). The commissioner must implement a review of the academic standards and related 
39.8 	benchmarks in mathematics beginning in the 2020-2021 school year and every ten years 
39.9 	thereafter.
39.10 	(c) The commissioner must implement a review of the academic standards and related 
39.11 	benchmarks in arts beginning in the 2016-2017 school year and every ten years thereafter.
39.12 	(d) The commissioner must implement a review of the academic standards and 
39.13 	related benchmarks in science beginning in the 2017-2018 school year and every ten 
39.14 	years thereafter.
39.15 	(e) The commissioner must implement a review of the academic standards and 
39.16 	related benchmarks in language arts beginning in the 2018-2019 school year and every 
39.17 	ten years thereafter.
39.18 	(f) The commissioner must implement a review of the academic standards and 
39.19 	related benchmarks in social studies beginning in the 2019-2020 school year and every 
39.20 	ten years thereafter.
39.21 	(g) The commissioner must adopt the most recent kindergarten through grade 12 
39.22 	physical education standards developed by the Society of Health and Physical Education 
39.23 	(SHAPE) America or other nationally recognized physical education association and 
39.24 	implement a review of the physical education standards and related benchmarks, consistent 
39.25 	with section 120B.021, subdivision 1, paragraph (c), beginning in the 2020-2021 school 
39.26 	year and every ten years thereafter.
39.27 	(g)(h) School districts and charter schools must revise and align local academic 
39.28 	standards and high school graduation requirements in health, world languages, and career 
39.29 	and technical education to require students to complete the revised standards beginning 
39.30 	in a school year determined by the school district or charter school. School districts and 
39.31 	charter schools must formally establish a periodic review cycle for the academic standards 
39.32 	and related benchmarks in health, world languages, and career and technical education.

39.33 	Sec. 8. Minnesota Statutes 2014, section 120B.11, subdivision 1a, is amended to read:
39.34 		Subd. 1a.Performance measures. Measures to determine school district and 
39.35 	school site progress in striving to create the world's best workforce must include at least:
40.1 	(1) student performance on the National Assessment of Education Progress where 
40.2 	applicable;
40.3 	(2)(1) the size of the academic achievement gap, rigorous course taking under 
40.4 	section 120B.35, subdivision 3, paragraph (c), clause (2), and enrichment experiences by 
40.5 	student subgroup;
40.6 	(3) (2) student performance on the Minnesota Comprehensive Assessments;
40.7 	(4) (3) high school graduation rates; and
40.8 	(5) (4) career and college readiness under section 120B.30, subdivision 1.

40.9 	Sec. 9. Minnesota Statutes 2014, section 120B.11, subdivision 2, is amended to read:
40.10 		Subd. 2.Adopting plans and budgets.  A school board, at a public meeting, shall 
40.11 	adopt a comprehensive, long-term strategic plan to support and improve teaching and 
40.12 	learning that is aligned with creating the world's best workforce and includes:
40.13 	(1) clearly defined district and school site goals and benchmarks for instruction and 
40.14 	student achievement for all student subgroups identified in section 120B.35, subdivision 3, 
40.15 	paragraph (b), clause (2);
40.16 	(2) a process for assessing and evaluating to assess and evaluate each student's 
40.17 	progress toward meeting state and local academic standards, assess and identify students 
40.18 	to participate in gifted and talented programs and accelerate their instruction, and adopt 
40.19 	early-admission procedures consistent with section 120B.15, and identifying the strengths 
40.20 	and weaknesses of instruction in pursuit of student and school success and curriculum 
40.21 	affecting students' progress and growth toward career and college readiness and leading to 
40.22 	the world's best workforce;
40.23 	(3) a system to periodically review and evaluate the effectiveness of all instruction 
40.24 	and curriculum, taking into account strategies and best practices, student outcomes, school 
40.25 	principal evaluations under section 123B.147, subdivision 3, and teacher evaluations 
40.26 	under section 122A.40, subdivision 8, or 122A.41, subdivision 5;
40.27 	(4) strategies for improving instruction, curriculum, and student achievement, 
40.28 	including the English and, where practicable, the native language development and the 
40.29 	academic achievement of English learners;
40.30 	(5) a process to examine the equitable distribution of teachers and strategies to 
40.31 	ensure low-income and minority children are not taught at higher rates than other children 
40.32 	by inexperienced, ineffective, or out-of-field teachers;
40.33 	(5) (6) education effectiveness practices that integrate high-quality instruction, 
40.34 	rigorous curriculum, technology, and a collaborative professional culture that develops 
40.35 	and supports teacher quality, performance, and effectiveness; and
41.1 	(6) (7) an annual budget for continuing to implement the district plan.

41.2 	Sec. 10. Minnesota Statutes 2014, section 120B.11, subdivision 5, is amended to read:
41.3 		Subd. 5.Report. Consistent with requirements for school performance reports 
41.4 	under section 120B.36, subdivision 1, the school board shall publish a report in the 
41.5 	local newspaper with the largest circulation in the district, by mail, or by electronic 
41.6 	means on the district Web site. The school board shall hold an annual public meeting 
41.7 	to review, and revise where appropriate, student achievement goals, local assessment 
41.8 	outcomes, plans, strategies, and practices for improving curriculum and instruction 
41.9 	and cultural competency, and efforts to equitably distribute effective, experienced, and 
41.10 	in-field teachers, and to review district success in realizing the previously adopted student 
41.11 	achievement goals and related benchmarks and the improvement plans leading to the 
41.12 	world's best workforce. The school board must transmit an electronic summary of its 
41.13 	report to the commissioner in the form and manner the commissioner determines.

41.14 	Sec. 11. Minnesota Statutes 2014, section 120B.15, is amended to read:
41.15 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
41.16 	(a) School districts may identify students, locally develop programs addressing 
41.17 	instructional and affective needs, provide staff development, and evaluate programs to 
41.18 	provide gifted and talented students with challenging and appropriate educational programs.
41.19 	(b) School districts must adopt guidelines for assessing and identifying students for 
41.20 	participation in gifted and talented programs consistent with section 120B.11, subdivision 
41.21 	2, clause (2). The guidelines should include the use of:
41.22 	(1) multiple and objective criteria; and
41.23 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
41.24 	theory and research. Assessments and procedures should be sensitive to underrepresented 
41.25 	groups, including, but not limited to, low-income, minority, twice-exceptional, and 
41.26 	English learners.
41.27 	(c) School districts must adopt procedures for the academic acceleration of gifted 
41.28 	and talented students consistent with section 120B.11, subdivision 2, clause (2). These 
41.29 	procedures must include how the district will:
41.30 	(1) assess a student's readiness and motivation for acceleration; and
41.31 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
41.32 	the best type of academic acceleration for that student.
41.33 	(d) School districts must adopt procedures consistent with section 124D.02, 
41.34 	subdivision 1, for early admission to kindergarten or first grade of gifted and talented 
42.1 	learners consistent with section 120B.11, subdivision 2, clause (2). The procedures must 
42.2 	be sensitive to underrepresented groups.

42.3 	Sec. 12. Minnesota Statutes 2015 Supplement, section 120B.30, subdivision 1, is 
42.4 	amended to read:
42.5 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
42.6 	with appropriate technical qualifications and experience and stakeholders, consistent with 
42.7 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
42.8 	level to be tested, state-constructed tests developed as computer-adaptive reading and 
42.9 	mathematics assessments for students that are aligned with the state's required academic 
42.10 	standards under section 120B.021, include multiple choice questions, and are administered 
42.11 	annually to all students in grades 3 through 8. State-developed high school tests aligned 
42.12 	with the state's required academic standards under section 120B.021 and administered 
42.13 	to all high school students in a subject other than writing must include multiple choice 
42.14 	questions. The commissioner shall establish one or more months during which schools 
42.15 	shall administer the tests to students each school year.
42.16 	(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible 
42.17 	to be assessed under (i) the graduation-required assessment for diploma in reading, 
42.18 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, 
42.19 	paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) 
42.20 	the Compass college placement test, (iv) the ACT assessment for college admission, (v) a 
42.21 	nationally recognized armed services vocational aptitude test.
42.22 	(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are 
42.23 	eligible to be assessed under (i) the graduation-required assessment for diploma in reading, 
42.24 	mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 
42.25 	1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the 
42.26 	Compass college placement test, (iv) the ACT assessment for college admission, (v) a 
42.27 	nationally recognized armed services vocational aptitude test.
42.28 	(3) For students under clause (1) or (2), a school district may substitute a score from 
42.29 	an alternative, equivalent assessment to satisfy the requirements of this paragraph.
42.30 	(b) The state assessment system must be aligned to the most recent revision of 
42.31 	academic standards as described in section 120B.023 in the following manner:
42.32 	(1) mathematics;
42.33 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
42.34 	(ii) high school level beginning in the 2013-2014 school year;
43.1 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
43.2 	school year; and
43.3 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
43.4 	the 2012-2013 school year.
43.5 	(c) For students enrolled in grade 8 in the 2012-2013 school year and later, students' 
43.6 	state graduation requirements, based on a longitudinal, systematic approach to student 
43.7 	education and career planning, assessment, instructional support, and evaluation, include 
43.8 	the following:
43.9 	(1) an opportunity to participate on a nationally normed college entrance exam, 
43.10 	in grade 11 or grade 12;
43.11 	(2) achievement and career and college readiness in mathematics, reading, and 
43.12 	writing, consistent with paragraph (j) (k) and to the extent available, to monitor students' 
43.13 	continuous development of and growth in requisite knowledge and skills; analyze 
43.14 	students' progress and performance levels, identifying students' academic strengths and 
43.15 	diagnosing areas where students require curriculum or instructional adjustments, targeted 
43.16 	interventions, or remediation; and, based on analysis of students' progress and performance 
43.17 	data, determine students' learning and instructional needs and the instructional tools and 
43.18 	best practices that support academic rigor for the student; and
43.19 	(3) consistent with this paragraph and section 120B.125, age-appropriate exploration 
43.20 	and planning activities and career assessments to encourage students to identify personally 
43.21 	relevant career interests and aptitudes and help students and their families develop a 
43.22 	regularly reexamined transition plan for postsecondary education or employment without 
43.23 	need for postsecondary remediation.
43.24 	Based on appropriate state guidelines, students with an individualized education program 
43.25 	may satisfy state graduation requirements by achieving an individual score on the 
43.26 	state-identified alternative assessments.
43.27 	(d) Expectations of schools, districts, and the state for career or college readiness 
43.28 	under this subdivision must be comparable in rigor, clarity of purpose, and rates of 
43.29 	student completion. 
43.30 	A student under paragraph (c), clause (2), must receive targeted, relevant, 
43.31 	academically rigorous, and resourced instruction, which may include a targeted instruction 
43.32 	and intervention plan focused on improving the student's knowledge and skills in core 
43.33 	subjects so that the student has a reasonable chance to succeed in a career or college 
43.34 	without need for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 
43.35 	124D.091, 124D.49, and related sections, an enrolling school or district must actively 
43.36 	encourage a student in grade 11 or 12 who is identified as academically ready for a career 
44.1 	or college to participate in courses and programs awarding college credit to high school 
44.2 	students. Students are not required to achieve a specified score or level of proficiency on 
44.3 	an assessment under this subdivision to graduate from high school.
44.4 	(e) Though not a high school graduation requirement, students are encouraged to 
44.5 	participate in a nationally recognized college entrance exam. With funding provided by 
44.6 	the To the extent state funding for college entrance exam fees is available, a district must 
44.7 	pay the cost, one time, for an interested student in grade 11 or 12 to take a nationally 
44.8 	recognized college entrance exam before graduating. A student must be able to take the 
44.9 	exam under this paragraph at the student's high school during the school day and at any 
44.10 	one of the multiple exam administrations available to students in the district.
44.11 	(f) The commissioner and the chancellor of the Minnesota State Colleges and 
44.12 	Universities must collaborate in aligning instruction and assessments for adult basic 
44.13 	education students and English learners to provide the students with diagnostic information 
44.14 	about any targeted interventions, accommodations, modifications, and supports they 
44.15 	need so that assessments and other performance measures are accessible to them and 
44.16 	they may seek postsecondary education or employment without need for postsecondary 
44.17 	remediation. When administering formative or summative assessments used to measure 
44.18 	the academic progress, including the oral academic development, of English learners 
44.19 	and inform their instruction, schools must ensure that the assessments are accessible to 
44.20 	the students and students have the modifications and supports they need to sufficiently 
44.21 	understand the assessments.
44.22 	(g) Districts and schools, on an annual basis, must use career exploration elements 
44.23 	to help students, beginning no later than grade 9, and their families explore and plan 
44.24 	for postsecondary education or careers based on the students' interests, aptitudes, and 
44.25 	aspirations. Districts and schools must use timely regional labor market information and 
44.26 	partnerships, among other resources, to help students and their families successfully 
44.27 	develop, pursue, review, and revise an individualized plan for postsecondary education or a 
44.28 	career. This process must help increase students' engagement in and connection to school, 
44.29 	improve students' knowledge and skills, and deepen students' understanding of career 
44.30 	pathways as a sequence of academic and career courses that lead to an industry-recognized 
44.31 	credential, an associate's degree, or a bachelor's degree and are available to all students, 
44.32 	whatever their interests and career goals.
44.33 	(h) A student who demonstrates attainment of required state academic standards, 
44.34 	which include career and college readiness benchmarks, on high school assessments 
44.35 	under subdivision 1a is academically ready for a career or college and is encouraged to 
44.36 	participate in courses awarding college credit to high school students. Such courses and 
45.1 	programs may include sequential courses of study within broad career areas and technical 
45.2 	skill assessments that extend beyond course grades.
45.3 	(i) As appropriate, students through grade 12 must continue to participate in targeted 
45.4 	instruction, intervention, or remediation and be encouraged to participate in courses 
45.5 	awarding college credit to high school students.
45.6 	(j) In developing, supporting, and improving students' academic readiness for a 
45.7 	career or college, schools, districts, and the state must have a continuum of empirically 
45.8 	derived, clearly defined benchmarks focused on students' attainment of knowledge and 
45.9 	skills so that students, their parents, and teachers know how well students must perform to 
45.10 	have a reasonable chance to succeed in a career or college without need for postsecondary 
45.11 	remediation. The commissioner, in consultation with local school officials and educators, 
45.12 	and Minnesota's public postsecondary institutions must ensure that the foundational 
45.13 	knowledge and skills for students' successful performance in postsecondary employment 
45.14 	or education and an articulated series of possible targeted interventions are clearly 
45.15 	identified and satisfy Minnesota's postsecondary admissions requirements.
45.16 	(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, 
45.17 	or charter school must record on the high school transcript a student's progress toward 
45.18 	career and college readiness, and for other students as soon as practicable.
45.19 	(l) The school board granting students their diplomas may formally decide to include 
45.20 	a notation of high achievement on the high school diplomas of those graduating seniors 
45.21 	who, according to established school board criteria, demonstrate exemplary academic 
45.22 	achievement during high school.
45.23 	(m) The 3rd through 8th grade computer-adaptive assessment results and high school 
45.24 	test results shall be available to districts for diagnostic purposes affecting student learning 
45.25 	and district instruction and curriculum, and for establishing educational accountability. 
45.26 	The commissioner must establish empirically derived benchmarks on adaptive assessments 
45.27 	in grades 3 through 8 and the high school tests that reveal a trajectory toward career and 
45.28 	college readiness. The chancellor of the Minnesota State Colleges and Universities must 
45.29 	review and confirm the benchmarks established by the commissioner show that students 
45.30 	are able to successfully complete credit-bearing coursework at a Minnesota state college or 
45.31 	university, consistent with paragraph (p). The commissioner must disseminate to the public 
45.32 	the computer-adaptive assessments and high school test results upon receiving those results.
45.33 	(n) The grades 3 through 8 computer-adaptive assessments and high school tests 
45.34 	must be aligned with state academic standards. The commissioner shall determine the 
45.35 	testing process and the order of administration. The statewide results shall be aggregated 
45.36 	at the site and district level, consistent with subdivision 1a.
46.1 	(o) The commissioner shall include the following components in the statewide 
46.2 	public reporting system:
46.3 	(1) uniform statewide computer-adaptive assessments of all students in grades 3 
46.4 	through 8 and testing at the high school levels that provides appropriate, technically sound 
46.5 	accommodations or alternate assessments;
46.6 	(2) educational indicators that can be aggregated and compared across school 
46.7 	districts and across time on a statewide basis, including average daily attendance, high 
46.8 	school graduation rates, and high school drop-out rates by age and grade level;
46.9 	(3) state results on the American College Test; and
46.10 	(4) state results from participation in the National Assessment of Educational 
46.11 	Progress so that the state can benchmark its performance against the nation and other 
46.12 	states, and, where possible, against other countries, and contribute to the national effort 
46.13 	to monitor achievement.
46.14 	(p) For purposes of statewide accountability, "career and college ready" means a 
46.15 	high school graduate has the knowledge, skills, and competencies to successfully pursue a 
46.16 	career pathway, including postsecondary credit leading to a degree, diploma, certificate, or 
46.17 	industry-recognized credential and employment. Students who are career and college ready 
46.18 	are able to successfully complete credit-bearing coursework at a two- or four-year college 
46.19 	or university or other credit-bearing postsecondary program without need for remediation.
46.20 	(q) For purposes of statewide accountability, "cultural competence," "cultural 
46.21 	competency," or "culturally competent" means the ability and will to interact effectively 
46.22 	with people of different cultures, native languages, and socioeconomic backgrounds.

46.23 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
46.24 	later.

46.25 	Sec. 13. Minnesota Statutes 2015 Supplement, section 120B.30, subdivision 1a, 
46.26 	is amended to read:
46.27 		Subd. 1a.Statewide and local assessments; results. (a) For purposes of this 
46.28 	section, the following definitions have the meanings given them.
46.29 	(1) "Computer-adaptive assessments" means fully adaptive assessments.
46.30 	(2) "Fully adaptive assessments" include test items that are on-grade level and items 
46.31 	that may be above or below a student's grade level.
46.32 	(3) "On-grade level" test items contain subject area content that is aligned to state 
46.33 	academic standards for the grade level of the student taking the assessment.
46.34 	(4) "Above-grade level" test items contain subject area content that is above the 
46.35 	grade level of the student taking the assessment and is considered aligned with state 
47.1 	academic standards to the extent it is aligned with content represented in state academic 
47.2 	standards above the grade level of the student taking the assessment. Notwithstanding 
47.3 	the student's grade level, administering above-grade level test items to a student does not 
47.4 	violate the requirement that state assessments must be aligned with state standards.
47.5 	(5) "Below-grade level" test items contain subject area content that is below the 
47.6 	grade level of the student taking the test and is considered aligned with state academic 
47.7 	standards to the extent it is aligned with content represented in state academic standards 
47.8 	below the student's current grade level. Notwithstanding the student's grade level, 
47.9 	administering below-grade level test items to a student does not violate the requirement 
47.10 	that state assessments must be aligned with state standards.
47.11 	(b) The commissioner must use fully adaptive mathematics and reading assessments 
47.12 	for grades 3 through 8.
47.13 	(c) For purposes of conforming with existing federal educational accountability 
47.14 	requirements, the commissioner must develop and implement computer-adaptive reading 
47.15 	and mathematics assessments for grades 3 through 8, state-developed high school reading 
47.16 	and mathematics tests aligned with state academic standards, a high school writing 
47.17 	test aligned with state standards when it becomes available, and science assessments 
47.18 	under clause (2) that districts and sites must use to monitor student growth toward 
47.19 	achieving those standards. The commissioner must not develop statewide assessments for 
47.20 	academic standards in social studies, except a civics test consistent with section 120B.02, 
47.21 	subdivision 3, health and physical education, and the arts. The commissioner must require:
47.22 	(1) annual computer-adaptive reading and mathematics assessments in grades 3 
47.23 	through 8, and high school reading, writing, and mathematics tests; and
47.24 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
47.25 	grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 
47.26 	and the commissioner must not require students to achieve a passing score on high school 
47.27 	science assessments as a condition of receiving a high school diploma.
47.28 	(d) The commissioner must ensure that for annual computer-adaptive assessments:
47.29 	(1) individual student performance data and achievement reports are available 
47.30 	within three school days of when students take an assessment except in a year when an 
47.31 	assessment reflects new performance standards;
47.32 	(2) growth information is available for each student from the student's first 
47.33 	assessment to each proximate assessment using a constant measurement scale;
47.34 	(3) parents, teachers, and school administrators are able to use elementary and 
47.35 	middle school student performance data to project students' secondary and postsecondary 
47.36 	achievement; and
48.1 	(4) useful diagnostic information about areas of students' academic strengths and 
48.2 	weaknesses is available to teachers and school administrators for improving student 
48.3 	instruction and indicating the specific skills and concepts that should be introduced and 
48.4 	developed for students at given performance levels, organized by strands within subject 
48.5 	areas, and aligned to state academic standards.
48.6 	(e) The commissioner must ensure that all state tests administered to elementary and 
48.7 	secondary students measure students' academic knowledge and skills and not students' 
48.8 	values, attitudes, and beliefs.
48.9 	(f) Reporting of state assessment results must:
48.10 	(1) provide timely, useful, and understandable information on the performance of 
48.11 	individual students, schools, school districts, and the state;
48.12 	(2) include a growth indicator of student achievement; and
48.13 	(3) determine whether students have met the state's academic standards.
48.14 	(g) Consistent with applicable federal law, the commissioner must include 
48.15 	appropriate, technically sound accommodations or alternative assessments for the very 
48.16 	few students with disabilities for whom statewide assessments are inappropriate and 
48.17 	for English learners.
48.18 	(h) A school, school district, and charter school must administer statewide 
48.19 	assessments under this section, as the assessments become available, to evaluate student 
48.20 	progress toward career and college readiness in the context of the state's academic 
48.21 	standards. A school, school district, or charter school may use a student's performance 
48.22 	on a statewide assessment as one of multiple criteria to determine grade promotion or 
48.23 	retention. A school, school district, or charter school may use a high school student's 
48.24 	performance on a statewide assessment as a percentage of the student's final grade in a 
48.25 	course, or place a student's assessment score on the student's transcript.

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

48.27 	Sec. 14. Minnesota Statutes 2015 Supplement, section 120B.31, subdivision 4, is 
48.28 	amended to read:
48.29 		Subd. 4. Student performance data. In developing policies and assessment 
48.30 	processes to hold schools and districts accountable for high levels of academic standards 
48.31 	under section 120B.021, the commissioner shall aggregate and disaggregate student 
48.32 	data over time to report summary student performance and growth levels and, under 
48.33 	section 120B.11, subdivision 2, clause (2), student learning and outcome data measured 
48.34 	at the school, school district, and statewide level. When collecting and reporting the 
48.35 	performance data, The commissioner shall use the student categories identified under the 
49.1 	federal Elementary and Secondary Education Act, as most recently reauthorized, and 
49.2 	student categories of homelessness, ethnicity, race, home language, immigrant, refugee 
49.3 	status, English language learners under section 124D.59, free or reduced-price lunch, 
49.4 	and other categories designated by federal law to organize and report the data so that 
49.5 	state and local policy makers can understand the educational implications of changes in 
49.6 	districts' demographic profiles over time, including student homelessness, as data are 
49.7 	available, among other demographic factors. Any report the commissioner disseminates 
49.8 	containing summary data on student performance must integrate student performance and 
49.9 	the demographic factors that strongly correlate with that performance.

49.10 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
49.11 	later.

49.12 	Sec. 15. Minnesota Statutes 2014, section 120B.35, is amended to read:
49.13 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND GROWTH.
49.14 		Subdivision 1.School and Student indicators of growth and achievement.
 49.15 	The commissioner must develop and implement a system for measuring and reporting 
49.16 	academic achievement and individual student growth, consistent with the statewide 
49.17 	educational accountability and reporting system. The system components must measure 
49.18 	and separately report the adequate yearly progress federal expectations of schools and 
49.19 	the growth of individual students: students' current achievement in schools under 
49.20 	subdivision 2; and individual students' educational growth over time under subdivision 
49.21 	3. The system also must include statewide measures of student academic growth that 
49.22 	identify schools with high levels of growth, and also schools with low levels of growth 
49.23 	that need improvement. When determining a school's effect, The data must include 
49.24 	both statewide measures of student achievement and, to the extent annual tests are 
49.25 	administered, indicators of achievement growth that take into account a student's prior 
49.26 	achievement. Indicators of achievement and prior achievement must be based on highly 
49.27 	reliable statewide or districtwide assessments. Indicators that take into account a student's 
49.28 	prior achievement must not be used to disregard a school's low achievement or to exclude 
49.29 	a school from a program to improve low achievement levels.
49.30 		Subd. 2.Federal Expectations for student academic achievement. (a) Each 
49.31 	school year, a school district must determine if the student achievement levels at each 
49.32 	school site meet federal expectations. If student achievement levels at a school site do 
49.33 	not meet federal expectations and the site has not made adequate yearly progress for two 
49.34 	consecutive school years, beginning with the 2001-2002 school year, the district must 
50.1 	work with the school site to adopt a plan to raise student achievement levels to meet 
50.2 	federal expectations. The commissioner of education shall establish student academic 
50.3 	achievement levels to comply with this paragraph.
50.4 	(b) School sites identified as not meeting federal expectations must develop 
50.5 	continuous improvement plans in order to meet federal expectations for student academic 
50.6 	achievement. The department, at a district's request, must assist the district and the school 
50.7 	site sites in developing a plan to improve student achievement. The plan must include 
50.8 	parental involvement components.
50.9 	(c) The commissioner must:
50.10 	(1) assist school sites and districts identified as not meeting federal expectations; and
50.11 	(2) provide technical assistance to schools that integrate student achievement 
50.12 	measures into the school continuous improvement plan.
50.13 	(d) The commissioner shall establish and maintain a continuous improvement Web 
50.14 	site designed to make aggregated and disaggregated student growth and, under section 
50.15 	120B.11, subdivision 2, clause (2), student learning and outcome data on every school 
50.16 	and district available to parents, teachers, administrators, community members, and the 
50.17 	general public, consistent with this section.
50.18 		Subd. 3.State growth target; other state measures. (a)(1) The state's educational 
50.19 	assessment system measuring individual students' educational growth is based on 
50.20 	indicators of achievement growth that show an individual student's prior achievement. 
50.21 	Indicators of achievement and prior achievement must be based on highly reliable 
50.22 	statewide or districtwide assessments.
50.23 	(2) For purposes of paragraphs (b), (c), and (d), the commissioner must analyze and 
50.24 	report separate categories of information using the student categories identified under the 
50.25 	federal Elementary and Secondary Education Act, as most recently reauthorized and, in 
50.26 	addition to the Karen community, other student categories as determined by the total 
50.27 	Minnesota population at or above the 1,000-person threshold based on the most recent 
50.28 	decennial census, including ethnicity; race; refugee status; English language learners 
50.29 	under section 124D.59; home language; free or reduced-price lunch; immigrant; and all 
50.30 	students enrolled in a Minnesota public school who are currently or were previously in 
50.31 	foster care, except that such disaggregation and cross tabulation is not required if the 
50.32 	number of students in a category is insufficient to yield statistically reliable information or 
50.33 	the results would reveal personally identifiable information about an individual student.
50.34 	(b) The commissioner, in consultation with a stakeholder group that includes 
50.35 	assessment and evaluation directors, district staff, experts in culturally responsive teaching, 
50.36 	and researchers, must implement a model that uses a value-added growth indicator and 
51.1 	includes criteria for identifying schools and school districts that demonstrate medium and 
51.2 	high growth under section 120B.299, subdivisions 8 and 9, and may recommend other 
51.3 	value-added measures under section 120B.299, subdivision 3. The model may be used 
51.4 	to advance educators' professional development and replicate programs that succeed in 
51.5 	meeting students' diverse learning needs. Data on individual teachers generated under the 
51.6 	model are personnel data under section 13.43. The model must allow users to:
51.7 	(1) report student growth consistent with this paragraph; and
51.8 	(2) for all student categories, report and compare aggregated and disaggregated state 
51.9 	student growth and, under section 120B.11, subdivision 2, clause (2), student learning 
51.10 	and outcome data using the nine student categories identified under the federal 2001 No 
51.11 	Child Left Behind Act and two student gender categories of male and female, respectively, 
51.12 	following appropriate reporting practices to protect nonpublic student data Elementary 
51.13 	and Secondary Education Act, as most recently reauthorized, and other student categories 
51.14 	under paragraph (a), clause (2).
51.15 	The commissioner must report measures of student growth and, under section 
51.16 	120B.11, subdivision 2, clause (2), student learning and outcome data, consistent with 
51.17 	this paragraph, including the English language development, academic progress, and oral 
51.18 	academic development of English learners and their native language development if the 
51.19 	native language is used as a language of instruction, and include data on all pupils enrolled 
51.20 	in a Minnesota public school course or program who are currently or were previously 
51.21 	counted as an English learner under section 124D.59.
51.22 	(c) When reporting student performance under section 120B.36, subdivision 1, the 
51.23 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
51.24 	the extent to which current high school graduates are being prepared for postsecondary 
51.25 	academic and career opportunities:
51.26 	(1) a preparation measure indicating the number and percentage of high school 
51.27 	graduates in the most recent school year who completed course work important to 
51.28 	preparing them for postsecondary academic and career opportunities, consistent with 
51.29 	the core academic subjects required for admission to Minnesota's public colleges and 
51.30 	universities as determined by the Office of Higher Education under chapter 136A; and
51.31 	(2) a rigorous coursework measure indicating the number and percentage of high 
51.32 	school graduates in the most recent school year who successfully completed one or more 
51.33 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
51.34 	options including concurrent enrollment, other rigorous courses of study under section 
51.35 	120B.021, subdivision 1a, or industry certification courses or programs.
52.1 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
52.2 	analyze and report separate categories of information using the nine student categories 
52.3 	identified under the federal 2001 No Child Left Behind Act and two student gender 
52.4 	categories of male and female, respectively, following appropriate reporting practices to 
52.5 	protect nonpublic student data Elementary and Secondary Education Act, as most recently 
52.6 	reauthorized, and other student categories under paragraph (a), clause (2).
52.7 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
52.8 	commissioner annually, beginning July 1, 2014, must report summary data on school 
52.9 	safety and students' engagement and connection at school, consistent with the student 
52.10 	categories identified under paragraph (a), clause (2). The summary data under this 
52.11 	paragraph are separate from and must not be used for any purpose related to measuring 
52.12 	or evaluating the performance of classroom teachers. The commissioner, in consultation 
52.13 	with qualified experts on student engagement and connection and classroom teachers, 
52.14 	must identify highly reliable variables that generate summary data under this paragraph. 
52.15 	The summary data may be used at school, district, and state levels only. Any data on 
52.16 	individuals received, collected, or created that are used to generate the summary data 
52.17 	under this paragraph are nonpublic data under section 13.02, subdivision 9.
52.18 	(e) For purposes of statewide educational accountability, the commissioner must 
52.19 	identify and report measures that demonstrate the success of learning year program 
52.20 	providers under sections 123A.05 and 124D.68, among other such providers, in improving 
52.21 	students' graduation outcomes. The commissioner, beginning July 1, 2015, must annually 
52.22 	report summary data on:
52.23 	(1) the four- and six-year graduation rates of students under this paragraph;
52.24 	(2) the percent of students under this paragraph whose progress and performance 
52.25 	levels are meeting career and college readiness benchmarks under section 120B.30, 
52.26 	subdivision 1; and
52.27 	(3) the success that learning year program providers experience in:
52.28 	(i) identifying at-risk and off-track student populations by grade;
52.29 	(ii) providing successful prevention and intervention strategies for at-risk students;
52.30 	(iii) providing successful recuperative and recovery or reenrollment strategies for 
52.31 	off-track students; and
52.32 	(iv) improving the graduation outcomes of at-risk and off-track students.
52.33 	The commissioner may include in the annual report summary data on other education 
52.34 	providers serving a majority of students eligible to participate in a learning year program.
52.35 	(f) The commissioner, in consultation with recognized experts with knowledge and 
52.36 	experience in assessing the language proficiency and academic performance of all English 
53.1 	learners enrolled in a Minnesota public school course or program who are currently or were 
53.2 	previously counted as an English learner under section 124D.59, must identify and report 
53.3 	appropriate and effective measures to improve current categories of language difficulty and 
53.4 	assessments, and monitor and report data on students' English proficiency levels, program 
53.5 	placement, and academic language development, including oral academic language.
53.6 		Subd. 4.Improving schools. Consistent with the requirements of this section, 
53.7 	beginning June 20, 2012, the commissioner of education must annually report to the 
53.8 	public and the legislature best practices implemented in those schools that demonstrate 
53.9 	high growth compared to the state growth target are identified as high performing under 
53.10 	federal expectations.
53.11 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
53.12 	disorders. (a) A district must develop strategies in conjunction with parents of students 
53.13 	with emotional or behavioral disorders and the county board responsible for implementing 
53.14 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
53.15 	school, when the district has a drop-out rate for students with an emotional or behavioral 
53.16 	disorder in grades 9 through 12 exceeding 25 percent.
53.17 	(b) A district must develop a plan in conjunction with parents of students with 
53.18 	emotional or behavioral disorders and the local mental health authority to increase the 
53.19 	graduation rates of students with emotional or behavioral disorders. A district with a 
53.20 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
53.21 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
53.22 	to the commissioner.

53.23 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
53.24 	later.

53.25 	Sec. 16. Minnesota Statutes 2014, section 120B.36, as amended by Laws 2015, First 
53.26 	Special Session chapter 3, article 2, section 8, is amended to read:
53.27 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
53.28 		Subdivision 1.School performance reports. (a) The commissioner shall report 
53.29 	student academic performance data under section 120B.35, subdivision subdivisions
53.30 	2 and 3; the percentages of students showing low, medium, and high growth under 
53.31 	section 120B.35, subdivision 3, paragraph (b); school safety and student engagement and 
53.32 	connection under section 120B.35, subdivision 3, paragraph (d); rigorous coursework 
53.33 	under section 120B.35, subdivision 3, paragraph (c); the percentage of students under 
53.34 	section 120B.35, subdivision 3, paragraph (b), clause (2), whose progress and performance 
54.1 	levels are meeting career and college readiness benchmarks under sections 120B.30, 
54.2 	subdivision 1, and 120B.35, subdivision 3, paragraph (e); longitudinal data on the progress 
54.3 	of eligible districts in reducing disparities in students' academic achievement and realizing 
54.4 	racial and economic integration under section 124D.861; the acquisition of English, and 
54.5 	where practicable, native language academic literacy, including oral academic language, 
54.6 	and the academic progress of all English learners under section 124D.59, subdivisions 
54.7 	2 and 2a enrolled in a Minnesota public school course or program who are currently or 
54.8 	were previously counted as English learners under section 124D.59; the total number of 
54.9 	students by grade who correctly answered at least 30 of 50 civics test questions under 
54.10 	section 120B.02, subdivision 3; two separate student-to-teacher ratios that clearly indicate 
54.11 	the definition of teacher consistent with sections 122A.06 and 122A.15 for purposes 
54.12 	of determining these ratios; staff characteristics excluding salaries; student enrollment 
54.13 	demographics; foster care status, including all students enrolled in a Minnesota public 
54.14 	school course or program who are currently or were previously in foster care, student 
54.15 	homelessness, and district mobility; and extracurricular activities. The report also must 
54.16 	indicate a school's adequate yearly progress status under applicable federal law, and must 
54.17 	not set any designations applicable to high- and low-performing schools due solely to 
54.18 	adequate yearly progress status.
54.19 	(b) The commissioner shall develop, annually update, and post on the department 
54.20 	Web site school performance reports.
54.21 	(c) The commissioner must make available performance reports by the beginning 
54.22 	of each school year.
54.23 	(d) A school or district may appeal its adequate yearly progress status in writing 
54.24 	to the commissioner within 30 days of receiving the notice of its status results in a form 
54.25 	and manner determined by the commissioner and consistent with federal law. The 
54.26 	commissioner's decision to uphold or deny an appeal is final.
54.27 	(e) School performance data are nonpublic data under section 13.02, subdivision 9, 
54.28 	until the commissioner publicly releases the data. The commissioner shall annually post 
54.29 	school performance reports to the department's public Web site no later than September 1, 
54.30 	except that in years when the reports reflect new performance standards, the commissioner 
54.31 	shall post the school performance reports no later than October 1.
54.32 		Subd. 2.Adequate yearly Student progress and other data. (a) All data the 
54.33 	department receives, collects, or creates under section 120B.11, governing the world's 
54.34 	best workforce or to determine adequate yearly progress status under Public Law 107-110, 
54.35 	section 1116 federal expectations under the most recently reauthorized Elementary and 
54.36 	Secondary Education Act, set state growth targets, and determine student growth, learning, 
55.1 	and outcomes under section 120B.35 are nonpublic data under section 13.02, subdivision 
55.2 	9, until the commissioner publicly releases the data.
55.3 	(b) Districts must provide parents sufficiently detailed summary data to permit 
55.4 	parents to appeal under Public Law 107-110, section 1116(b)(2) the most recently 
55.5 	reauthorized federal Elementary and Secondary Education Act. The commissioner shall 
55.6 	annually post federal adequate yearly progress data expectations and state student growth, 
55.7 	learning, and outcome data to the department's public Web site no later than September 1, 
55.8 	except that in years when adequate yearly progress reflects data or federal expectations 
55.9 	reflect new performance standards, the commissioner shall post federal adequate yearly 
55.10 	progress data on federal expectations and state student growth data no later than October 1.

55.11 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
55.12 	later, except the requirement to report civics test data is effective for the 2018-2019 school 
55.13 	year and later.

55.14 	Sec. 17. Minnesota Statutes 2014, section 121A.53, is amended to read:
55.15 	121A.53 REPORT TO COMMISSIONER OF EDUCATION.
55.16 		Subdivision 1.Exclusions and expulsions; physical assaults. The school board 
55.17 	must report through the department electronic reporting system each exclusion or 
55.18 	expulsion and each physical assault of a district employee by a student within 30 days 
55.19 	of the effective date of the dismissal action or assault to the commissioner of education. 
55.20 	This report must include a statement of alternative educational services, or other sanction, 
55.21 	intervention, or resolution in response to the assault given the pupil and the reason for, 
55.22 	the effective date, and the duration of the exclusion or expulsion or other sanction, 
55.23 	intervention, or resolution. The report must also include the student's age, grade, gender, 
55.24 	race, and special education status.
55.25 		Subd. 2.Report. (a) The school board must include state student identification 
55.26 	numbers of affected pupils on all dismissal and other disciplinary reports required by the 
55.27 	department. The department must report annually to the commissioner summary data on the 
55.28 	number of dismissals and physical assaults of district employees by a student by age, grade, 
55.29 	gender, race, and special education status of the affected pupils. All dismissal and other 
55.30 	disciplinary reports must be submitted through the department electronic reporting system.
55.31 	(b) The commissioner must aggregate the district data reported under this section and 
55.32 	include the aggregated data, including aggregated data on physical assaults of a district 
55.33 	employee by a student, in the annual school performance reports under section 120B.36.

56.1 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
56.2 	later.

56.3 	Sec. 18. Minnesota Statutes 2014, section 121A.61, subdivision 1, is amended to read:
56.4 		Subdivision 1.Required policy. Each school board must adopt a written 
56.5 	districtwide school discipline policy which includes written rules of conduct for 
56.6 	students, minimum consequences for violations of the rules, and grounds and procedures 
56.7 	for removal of a student from class. The policy must be developed in consultation 
56.8 	with administrators, teachers, employees, pupils, parents, community members, law 
56.9 	enforcement agencies, county attorney offices, social service agencies, and such other 
56.10 	individuals or organizations as the board determines appropriate. The policy must be 
56.11 	consistent with a teacher's authority for controlling and managing student behavior in the 
56.12 	classroom under section 122A.42. A school site council may adopt additional provisions 
56.13 	to the policy subject to the approval of the school board.

56.14 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
56.15 	later.

56.16 	Sec. 19. Minnesota Statutes 2014, section 121A.64, is amended to read:
56.17 	121A.64 NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 
56.18 	INTEREST.
56.19 	(a) A classroom teacher has a legitimate educational interest in knowing which 
56.20 	students placed in the teacher's classroom have a history of violent behavior, including any 
56.21 	documented physical assault of a district employee by the student, and must be notified 
56.22 	before such students are placed in the teacher's classroom.
56.23 	(b) Representatives of the school board and the exclusive representative of the 
56.24 	teachers shall discuss issues related to the model policy on student records adopted under 
56.25 	Laws 1999, chapter 241, article 9, section 50, and any modifications adopted under Laws 
56.26 	2003, First Special Session chapter 9, for notifying classroom teachers and other school 
56.27 	district employees having a legitimate educational interest in knowing about students with 
56.28 	a history of violent behavior, including any documented physical assault of a district 
56.29 	employee by students placed in classrooms. The representatives of the school board and 
56.30 	the exclusive representative of the teachers also may discuss the need for intervention 
56.31 	services or conflict resolution or training for staff related to placing students with a history 
56.32 	of violent behavior in teachers' classrooms.

57.1 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
57.2 	later.

57.3 	Sec. 20. Minnesota Statutes 2014, section 122A.07, subdivision 2, is amended to read:
57.4 		Subd. 2.Eligibility; board composition. Except for the representatives of higher 
57.5 	education, school administrators, and the public, to be eligible for appointment to the 
57.6 	Board of Teaching a person must be a teacher currently teaching in a Minnesota school 
57.7 	and fully licensed for the position held and have at least five years teaching experience in 
57.8 	Minnesota, including the two years immediately preceding nomination and appointment. 
57.9 	Each nominee, other than a public nominee, must be selected on the basis of professional 
57.10 	experience and knowledge of teacher education, accreditation, and licensure. The board 
57.11 	must be composed of:
57.12 	(1) six teachers who are currently teaching in a Minnesota school or who were 
57.13 	teaching at the time of the appointment and who do not qualify under clause (2) or (3), at 
57.14 	least four of whom must be teaching in a public school;
57.15 	(2) one higher education representative, who must be a faculty member preparing 
57.16 	teachers;
57.17 	(3) one school administrator; and
57.18 	(4) three members of the public, two of whom must be present or former members 
57.19 	of school boards.

57.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
57.21 	and applies to all board appointments made after that date.

57.22 	Sec. 21. Minnesota Statutes 2014, section 122A.09, is amended by adding a 
57.23 	subdivision to read:
57.24 		Subd. 3a.Board of Teaching; duties and responsibilities clarified. Consistent 
57.25 	with sections 15.039 and 16B.37, the Board of Teaching is responsible for licensing 
57.26 	teachers and issuing special permissions to teach and must perform all licensure-related 
57.27 	duties and meet all licensure-related responsibilities under this section, among other 
57.28 	statutory licensure-related requirements. At the direction of the board, the department 
57.29 	may perform administrative functions related to issuing teacher licenses. To the extent a 
57.30 	conflict exists between this section and another section governing teacher licensing, the 
57.31 	provisions of this section prevail.

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

58.1 	Sec. 22. Minnesota Statutes 2014, section 122A.09, subdivision 10, is amended to read:
58.2 		Subd. 10.Variances Permissions. (a) Notwithstanding subdivision 9 and 
58.3 	section 14.05, subdivision 4, the Board of Teaching may grant a variance to its rules 
58.4 	upon application by a school district or a charter school for purposes of implementing 
58.5 	experimental programs in learning or management.
58.6 	(b) To enable a school district or a charter school to meet the needs of students 
58.7 	enrolled in an alternative education program and to enable licensed teachers instructing 
58.8 	those students to satisfy content area licensure requirements, the Board of Teaching 
58.9 	annually may permit a licensed teacher teaching in an alternative education program to 
58.10 	instruct students in a content area for which the teacher is not licensed, consistent with 
58.11 	paragraph (a).
58.12 	(c) A special education license variance issued by the Board of Teaching for a 
58.13 	primary employer's low-incidence region shall be is valid in all low-incidence regions.
58.14 	(d) The Board of Teaching may issue a one-year professional license under 
58.15 	paragraph (a), which the board may renew two times, to allow a person holding a full 
58.16 	credential from the American Montessori Society, a diploma from Association Montessori 
58.17 	Internationale, or a certificate of completion from a program accredited by the Montessori 
58.18 	Accreditation Council for Teacher Education to teach in a Montessori program operated 
58.19 	by a school district or charter school.
58.20 	(e) The Board of Teaching may grant a one-year waiver, renewable two times, 
58.21 	to allow individuals who hold a bachelor's degree from an accredited postsecondary 
58.22 	institution, demonstrate occupational competency based on at least three years of full-time 
58.23 	work experience in business or industry, and enroll and make satisfactory progress in 
58.24 	an alternative preparation program leading to certification or licensure as a career and 
58.25 	technical education instructor or teacher to teach career and technical education courses 
58.26 	offered by a school district or charter school. Consistent with this paragraph and section 
58.27 	136F.361, the Board of Teaching must strongly encourage teacher preparation programs 
58.28 	and institutions throughout Minnesota to develop alternative pathways for certifying and 
58.29 	licensing high school career and technical education instructors and teachers, allowing 
58.30 	such candidates to meet certification and licensure standards that demonstrate their content 
58.31 	knowledge, classroom experience, and pedagogical practices and their qualifications 
58.32 	based on a combination of occupational testing, professional certification or licensure, and 
58.33 	long-standing work experience.

58.34 	EFFECTIVE DATE. Paragraphs (d) and (e) are effective for the 2016-2017 
58.35 	through 2018-2019 school years.

59.1 	Sec. 23. Minnesota Statutes 2014, section 122A.16, is amended to read:
59.2 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
59.3 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
59.4 	the particular service for which the teacher is employed in a public school.
59.5 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
59.6 	teacher is one who holds a valid license under this chapter, including under section 
59.7 	122A.245, among other sections and is determined by local administrators as having 
59.8 	highly qualified status according to the approved Minnesota highly qualified plan. 
59.9 	Teachers delivering core content instruction must be deemed highly qualified at the local 
59.10 	level and reported to the state via the staff automated reporting system.

59.11 	Sec. 24. Minnesota Statutes 2014, section 122A.245, subdivision 8, is amended to read:
59.12 		Subd. 8.Highly Qualified teacher. A person holding a valid limited-term license 
59.13 	under this section is a highly qualified teacher and the teacher of record under section 
59.14 	122A.16.

59.15 	Sec. 25. Minnesota Statutes 2015 Supplement, section 122A.30, is amended to read:
59.16 	122A.30 EXEMPTION FOR TECHNICAL EDUCATION INSTRUCTORS.
59.17 	(a) Notwithstanding section 122A.15, subdivision 1, and upon approval of the local 
59.18 	employer school board, a person who teaches in as a part-time vocational or career and 
59.19 	technical education program teacher is exempt from a license requirement. Nothing in 
59.20 	this section shall exclude licensed career and technical educators from the definition of 
59.21 	"teacher" in section 122A.40, 122A.41, or 179A.03.
59.22 	(b) This section expires June 30, 2020.

59.23 	Sec. 26. Minnesota Statutes 2014, section 122A.40, subdivision 10, is amended to read:
59.24 		Subd. 10.Negotiated unrequested leave of absence. The school board and the 
59.25 	exclusive bargaining representative of the teachers may must negotiate a plan providing for 
59.26 	unrequested leave of absence without pay or fringe benefits for as many teachers as may 
59.27 	be necessary because of discontinuance of position, lack of pupils, financial limitations, or 
59.28 	merger of classes caused by consolidation of districts. Failing to successfully negotiate such 
59.29 	a plan, the provisions of subdivision 11 shall apply. The negotiated plan must not include 
59.30 	provisions which would result in the exercise of seniority by a teacher holding a provisional 
59.31 	license, other than a vocational education license, contrary to the provisions of subdivision 
59.32 	11, paragraph (c), or the reinstatement of a teacher holding a provisional license, other 
60.1 	than a vocational education license, contrary to the provisions of subdivision 11, paragraph 
60.2 	(e). The provisions of section 179A.16 do not apply for the purposes of this subdivision.

60.3 	EFFECTIVE DATE. This section is effective July 1, 2017.

60.4 	Sec. 27. Minnesota Statutes 2014, section 122A.41, is amended by adding a 
60.5 	subdivision to read:
60.6 		Subd. 14a.Negotiated unrequested leave of absence. The school board and the 
60.7 	exclusive bargaining representative of the teachers must negotiate a plan providing for 
60.8 	unrequested leave of absence without pay or fringe benefits for as many teachers as may 
60.9 	be necessary because of discontinuance of position, lack of pupils, financial limitations, 
60.10 	or merger of classes caused by consolidation of districts.

60.11 	EFFECTIVE DATE. This section is effective July 1, 2017.

60.12 	Sec. 28. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 1, 
60.13 	is amended to read:
60.14 		Subdivision 1.Restructured pay system. A restructured alternative teacher 
60.15 	professional pay system is established under subdivision 2 to provide incentives to 
60.16 	encourage teachers to improve their knowledge and instructional skills in order to improve 
60.17 	student learning and for school districts, intermediate school districts, cooperative units, 
60.18 	as defined in section 123A.24, subdivision 2, and charter schools to recruit and retain 
60.19 	highly qualified teachers, encourage highly qualified teachers to undertake challenging 
60.20 	assignments, and support teachers' roles in improving students' educational achievement.

60.21 	Sec. 29. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2, 
60.22 	is amended to read:
60.23 		Subd. 2.Alternative teacher professional pay system. (a) To participate in this 
60.24 	program, a school district, intermediate school district, school site, or charter school must 
60.25 	have an educational improvement plan under section 122A.413 a world's best workforce 
60.26 	plan under section 120B.11 and an alternative teacher professional pay system agreement 
60.27 	under paragraph (b). A charter school participant also must comply with subdivision 2a.
60.28 	(b) The alternative teacher professional pay system agreement must:
60.29 	(1) describe how teachers can achieve career advancement and additional 
60.30 	compensation;
60.31 	(2) describe how the school district, intermediate school district, school site, or 
60.32 	charter school will provide teachers with career advancement options that allow teachers 
61.1 	to retain primary roles in student instruction and facilitate site-focused professional 
61.2 	development that helps other teachers improve their skills;
61.3 	(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation 
61.4 	paid before implementing the pay system from being reduced as a result of participating in 
61.5 	this system, base at least 60 percent of any compensation increase on teacher performance 
61.6 	using:
61.7 	(i) schoolwide student achievement gains under section 120B.35 or locally selected 
61.8 	standardized assessment outcomes, or both;
61.9 	(ii) measures of student growth and literacy that may include value-added models 
61.10 	or student learning goals, consistent with section 122A.40, subdivision 8, paragraph 
61.11 	(b), clause (9), or 122A.41, subdivision 5, paragraph (b), clause (9), and other measures 
61.12 	that include the academic literacy, oral academic language, and achievement of English 
61.13 	learners under section 122A.40, subdivision 8, paragraph (b), clause (10), or 122A.41, 
61.14 	subdivision 5, paragraph (b), clause (10); and
61.15 	(iii) an objective evaluation program under section 122A.40, subdivision 8, 
61.16 	paragraph (b), clause (2), or 122A.41, subdivision 5, paragraph (b), clause (2);
61.17 	(4) provide for participation in job-embedded learning opportunities such as 
61.18 	professional learning communities to improve instructional skills and learning that are 
61.19 	aligned with student needs under section 122A.413 120B.11, consistent with the staff 
61.20 	development plan under section 122A.60 and led during the school day by trained teacher 
61.21 	leaders such as master or mentor teachers;
61.22 	(5) allow any teacher in a participating school district, intermediate school district, 
61.23 	school site, or charter school that implements an alternative pay system to participate in 
61.24 	that system without any quota or other limit; and
61.25 	(6) encourage collaboration rather than competition among teachers.
61.26 	(c) The alternative teacher professional pay system may:
61.27 	(1) include a hiring bonus or other added compensation for teachers who are 
61.28 	identified as effective or highly effective under the local teacher professional review 
61.29 	cycle and work in a hard-to-fill position or in a hard-to-staff school such as a school with 
61.30 	a majority of students whose families meet federal poverty guidelines, a geographically 
61.31 	isolated school, or a school identified by the state as eligible for targeted programs or 
61.32 	services for its students; and
61.33 	(2) include incentives for teachers to obtain a master's degree or other advanced 
61.34 	certification in their content field of licensure, pursue the training or education necessary 
61.35 	to obtain an additional licensure in shortage areas identified by the district or charter 
61.36 	school, or help fund a "grow your own" new teacher initiative.

62.1 	Sec. 30. Minnesota Statutes 2015 Supplement, section 122A.414, subdivision 2b, 
62.2 	is amended to read:
62.3 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
62.4 	and sections 122A.413 and section122A.415, the department must prepare and transmit 
62.5 	to interested school districts, intermediate school districts, cooperatives, school sites, 
62.6 	and charter schools a standard form for applying to participate in the alternative teacher 
62.7 	professional pay system. The commissioner annually must establish three dates as 
62.8 	deadlines by which interested applicants must submit an application to the commissioner 
62.9 	under this section. An interested school district, intermediate school district, cooperative, 
62.10 	school site, or charter school must submit to the commissioner a completed application 
62.11 	executed by the district superintendent and the exclusive bargaining representative of the 
62.12 	teachers if the applicant is a school district, intermediate school district, or school site, or 
62.13 	executed by the charter school board of directors if the applicant is a charter school or 
62.14 	executed by the governing board if the applicant is a cooperative unit. The application 
62.15 	must include the proposed alternative teacher professional pay system agreement under 
62.16 	subdivision 2. The department must review a completed application within 30 days of 
62.17 	the most recent application deadline and recommend to the commissioner whether to 
62.18 	approve or disapprove the application. The commissioner must approve applications 
62.19 	on a first-come, first-served basis. The applicant's alternative teacher professional pay 
62.20 	system agreement must be legally binding on the applicant and the collective bargaining 
62.21 	representative before the applicant receives alternative compensation revenue. The 
62.22 	commissioner must approve or disapprove an application based on the requirements 
62.23 	under subdivisions 2 and 2a.
62.24 	(b) If the commissioner disapproves an application, the commissioner must give the 
62.25 	applicant timely notice of the specific reasons in detail for disapproving the application. 
62.26 	The applicant may revise and resubmit its application and related documents to the 
62.27 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
62.28 	the commissioner must approve or disapprove the revised application, consistent with this 
62.29 	subdivision. Applications that are revised and then approved are considered submitted on 
62.30 	the date the applicant initially submitted the application.

62.31 	Sec. 31. Minnesota Statutes 2014, section 122A.4144, is amended to read:
62.32 	122A.4144 SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER 
62.33 	PAY.
62.34 	Notwithstanding section 179A.20 or other law to the contrary, a school board and 
62.35 	the exclusive representative of the teachers may agree to reopen a collective bargaining 
63.1 	agreement for the purpose of entering into an alternative teacher professional pay system 
63.2 	agreement under sections 122A.413,122A.414, and 122A.415. Negotiations for a contract 
63.3 	reopened under this section must be limited to issues related to the alternative teacher 
63.4 	professional pay system.

63.5 	Sec. 32. Minnesota Statutes 2014, section 122A.416, is amended to read:
63.6 	122A.416 ALTERNATIVE TEACHER COMPENSATION REVENUE 
63.7 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
63.8 	INTEGRATION COLLABORATIVES.
63.9 	Notwithstanding sections 122A.413,122A.414, 122A.415, and 126C.10, 
63.10 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
63.11 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
63.12 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
63.13 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
63.14 	requirements of sections 122A.413,122A.414, and 122A.415 that apply to intermediate 
63.15 	school districts, must report its enrollment as of October 1 of each year to the department, 
63.16 	and must annually report its expenditures for the alternative teacher professional pay 
63.17 	system consistent with the uniform financial accounting and reporting standards to the 
63.18 	department by November 30 of each year.

63.19 	Sec. 33. Minnesota Statutes 2014, section 122A.42, is amended to read:
63.20 	122A.42 GENERAL CONTROL OF SCHOOLS.
63.21 	(a) The teacher of record shall have the general control and government of the 
63.22 	school and classroom. When more than one teacher is employed in any district, one of the 
63.23 	teachers may be designated by the board as principal and shall have the general control 
63.24 	and supervision of the schools of the district, subject to the general supervisory control 
63.25 	of the board and other officers.
63.26 	(b) Consistent with paragraph (a), the teacher may remove students from class under 
63.27 	section 121A.61, subdivision 2, for violent or disruptive conduct or other misconduct.

63.28 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
63.29 	later.

63.30 	Sec. 34. [122A.421] SCHOOL CLIMATE AND SAFETY.
63.31 	Beginning with agreements effective July 1, 2017, and thereafter, all collective 
63.32 	bargaining agreements for teachers under chapter 179A may include school climate 
64.1 	and student and staff safety provisions related to establishing and maintaining safe and 
64.2 	supportive classrooms and school sites and a districtwide educational climate that is 
64.3 	conducive to student learning and a supportive working environment for teachers and 
64.4 	other staff.

64.5 	EFFECTIVE DATE. This section is effective July 1, 2017.

64.6 	Sec. 35. Minnesota Statutes 2015 Supplement, section 122A.60, subdivision 4, is 
64.7 	amended to read:
64.8 		Subd. 4.Staff development report. (a) By October 15 of each year, The district 
64.9 	and site staff development committees shall write and submit a report of staff development 
64.10 	activities and expenditures for the previous year, in the form and manner determined by 
64.11 	the commissioner. The report, signed by the district superintendent and staff development 
64.12 	chair, must include assessment and evaluation data indicating progress toward district and 
64.13 	site staff development goals based on teaching and learning outcomes, including the 
64.14 	percentage of teachers and other staff involved in instruction who participate in effective 
64.15 	staff development activities under subdivision 3 as part of the district's world's best 
64.16 	workforce report under section 120B.11, subdivision 5.
64.17 	(b) The report must break down expenditures for:
64.18 	(1) curriculum development and curriculum training programs; and
64.19 	(2) staff development training models, workshops, and conferences, and the cost of 
64.20 	releasing teachers or providing substitute teachers for staff development purposes.
64.21 	The report also must indicate whether the expenditures were incurred at the district 
64.22 	level or the school site level, and whether the school site expenditures were made possible 
64.23 	by grants to school sites that demonstrate exemplary use of allocated staff development 
64.24 	revenue. These expenditures must be reported using the uniform financial and accounting 
64.25 	and reporting standards.
64.26 	(c) The commissioner shall report the staff development progress and expenditure 
64.27 	data to the house of representatives and senate committees having jurisdiction over 
64.28 	education by February 15 each year.

64.29 	Sec. 36. Minnesota Statutes 2014, section 122A.72, subdivision 5, is amended to read:
64.30 		Subd. 5.Center functions. (a) A teacher center shall perform functions according 
64.31 	to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 
64.32 	with the use of multiple instructional approaches, assess pupil outcomes, assess staff 
64.33 	development needs and plans, and teach school personnel about effective pedagogical 
64.34 	approaches. The center shall develop and produce curricula and curricular materials 
65.1 	designed to meet the educational needs of pupils being served, by applying educational 
65.2 	research and new and improved methods, practices, and techniques. The center shall 
65.3 	provide programs to improve the skills of teachers to meet the special educational needs of 
65.4 	pupils. The center shall provide programs to familiarize teachers with developments in 
65.5 	curriculum formulation and educational research, including how research can be used to 
65.6 	improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 
65.7 	and approaches directly related to classroom instruction and improve teachers' familiarity 
65.8 	with current teaching materials and products for use in their classrooms. The center shall 
65.9 	provide in-service programs.
65.10 	(b) Each teacher center must provide a professional development program to train 
65.11 	interested and highly qualified elementary, middle, and secondary teachers, selected by the 
65.12 	employing school district, to assist other teachers in that district with mathematics and 
65.13 	science curriculum, standards, and instruction so that all teachers have access to:
65.14 	(1) high quality professional development programs in mathematics and science that 
65.15 	address curriculum, instructional methods, alignment of standards, and performance 
65.16 	measurements, enhance teacher and student learning, and support state mathematics and 
65.17 	science standards; and
65.18 	(2) research-based mathematics and science programs and instructional models 
65.19 	premised on best practices that inspire teachers and students and have practical classroom 
65.20 	application.

65.21 	Sec. 37. Minnesota Statutes 2014, section 123B.49, subdivision 4, is amended to read:
65.22 		Subd. 4.Board control of extracurricular activities. (a) The board may take 
65.23 	charge of and control all extracurricular activities of the teachers and children of the public 
65.24 	schools in the district. Extracurricular activities means all direct and personal services 
65.25 	for pupils for their enjoyment that are managed and operated under the guidance of an 
65.26 	adult or staff member. The board shall allow all resident pupils receiving instruction in a 
65.27 	home school as defined in section 123B.36, subdivision 1, paragraph (a), and all resident 
65.28 	pupils enrolled in an online public school program to be eligible to fully participate in 
65.29 	extracurricular activities on the same basis as public school students.
65.30 	(b) Extracurricular activities have all of the following characteristics:
65.31 	(1) they are not offered for school credit nor required for graduation;
65.32 	(2) they are generally conducted outside school hours, or if partly during school 
65.33 	hours, at times agreed by the participants, and approved by school authorities;
65.34 	(3) the content of the activities is determined primarily by the pupil participants 
65.35 	under the guidance of a staff member or other adult.
66.1 	(c) If the board does not take charge of and control extracurricular activities, these 
66.2 	activities shall be self-sustaining with all expenses, except direct salary costs and indirect 
66.3 	costs of the use of school facilities, met by dues, admissions, or other student fund-raising 
66.4 	events. The general fund must reflect only those salaries directly related to and readily 
66.5 	identified with the activity and paid by public funds. Other revenues and expenditures for 
66.6 	extra curricular activities must be recorded according to the Manual for Activity Fund 
66.7 	Accounting. Extracurricular activities not under board control must have an annual 
66.8 	financial audit and must also be audited annually for compliance with this section.
66.9 	(d) If the board takes charge of and controls extracurricular activities, any or all 
66.10 	costs of these activities may be provided from school revenues and all revenues and 
66.11 	expenditures for these activities shall be recorded in the same manner as other revenues 
66.12 	and expenditures of the district.
66.13 	(e) If the board takes charge of and controls extracurricular activities, the teachers or 
66.14 	pupils in the district must not participate in such activity, nor shall the school name or any 
66.15 	allied name be used in connection therewith, except by consent and direction of the board.

66.16 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
66.17 	later.

66.18 	Sec. 38. Minnesota Statutes 2015 Supplement, section 124D.231, subdivision 2, 
66.19 	is amended to read:
66.20 		Subd. 2.Full-service community school program. (a) The commissioner shall 
66.21 	provide funding to eligible school sites to plan, implement, and improve full-service 
66.22 	community schools. Eligible school sites must meet one of the following criteria:
66.23 	(1) the school is on a development plan for continuous improvement under section 
66.24 	120B.35, subdivision 2; or
66.25 	(2) the school is in a district that has an achievement and integration plan approved 
66.26 	by the commissioner of education under sections 124D.861 and 124D.862.
66.27 	(b) An eligible school site may receive up to $100,000 annually. School sites 
66.28 	receiving funding under this section shall hire or contract with a partner agency to hire a 
66.29 	site coordinator to coordinate services at each covered school site.
66.30 	(c) Implementation funding of up to $20,000 must be available for up to one year for 
66.31 	planning for school sites. At the end of this period, the school must submit a full-service 
66.32 	community school plan, pursuant to paragraph (g).
66.33 	(d) The commissioner shall dispense the funds to schools with significant populations 
66.34 	of students receiving free or reduced-price lunches. Schools with significant homeless and 
67.1 	highly mobile students shall also be a priority. The commissioner must also dispense the 
67.2 	funds in a manner to ensure equity among urban, suburban, and greater Minnesota schools.
67.3 	(e) A school site must establish a school leadership team responsible for developing 
67.4 	school-specific programming goals, assessing program needs, and overseeing the process 
67.5 	of implementing expanded programming at each covered site. The school leadership team 
67.6 	shall have between 12 to 15 members and shall meet the following requirements:
67.7 	(1) at least 30 percent of the members are parents and 30 percent of the members 
67.8 	are teachers at the school site and must include the school principal and representatives 
67.9 	from partner agencies; and
67.10 	(2) the school leadership team must be responsible for overseeing the baseline 
67.11 	analyses under paragraph (f). A school leadership team must have ongoing responsibility 
67.12 	for monitoring the development and implementation of full-service community school 
67.13 	operations and programming at the school site and shall issue recommendations to schools 
67.14 	on a regular basis and summarized in an annual report. These reports shall also be made 
67.15 	available to the public at the school site and on school and district Web sites.
67.16 	(f) School sites must complete a baseline analysis prior to beginning programming 
67.17 	as a full-service community school. The analysis shall include:
67.18 	(1) a baseline analysis of needs at the school site, led by the school leadership team, 
67.19 	which shall include the following elements:
67.20 	(i) identification of challenges facing the school;
67.21 	(ii) analysis of the student body, including:
67.22 	(A) number and percentage of students with disabilities and needs of these students;
67.23 	(B) number and percentage of students who are English learners and the needs of 
67.24 	these students;
67.25 	(C) number of students who are homeless or highly mobile; and
67.26 	(D) number and percentage of students receiving free or reduced-price lunch and the 
67.27 	needs of these students;
67.28 	(iii) analysis of enrollment and retention rates for students with disabilities, 
67.29 	English learners, homeless and highly mobile students, and students receiving free or 
67.30 	reduced-price lunch;
67.31 	(iv) analysis of suspension and expulsion data, including the justification for such 
67.32 	disciplinary actions and the degree to which particular populations, including, but not 
67.33 	limited to, students of color, students with disabilities, students who are English learners, 
67.34 	and students receiving free or reduced-price lunch are represented among students subject 
67.35 	to such actions;
68.1 	(v) analysis of school achievement data disaggregated by major demographic 
68.2 	categories, including, but not limited to, race, ethnicity, English learner status, disability 
68.3 	status, and free or reduced-price lunch status;
68.4 	(vi) analysis of current parent engagement strategies and their success; and
68.5 	(vii) evaluation of the need for and availability of wraparound services, including, 
68.6 	but not limited to:
68.7 	(A) mechanisms for meeting students' social, emotional, and physical health needs, 
68.8 	which may include coordination of existing services as well as the development of new 
68.9 	services based on student needs; and
68.10 	(B) strategies to create a safe and secure school environment and improve school 
68.11 	climate and discipline, such as implementing a system of positive behavioral supports, and 
68.12 	taking additional steps to eliminate bullying;
68.13 	(2) a baseline analysis of community assets and a strategic plan for utilizing 
68.14 	and aligning identified assets. This analysis should include, but is not limited to, a 
68.15 	documentation of individuals in the community, faith-based organizations, community and 
68.16 	neighborhood associations, colleges, hospitals, libraries, businesses, and social service 
68.17 	agencies who may be able to provide support and resources; and
68.18 	(3) a baseline analysis of needs in the community surrounding the school, led by 
68.19 	the school leadership team, including, but not limited to:
68.20 	(i) the need for high-quality, full-day child care and early childhood education 
68.21 	programs;
68.22 	(ii) the need for physical and mental health care services for children and adults; and
68.23 	(iii) the need for job training and other adult education programming.
68.24 	(g) Each school site receiving funding under this section must establish at least two 
68.25 	of the following types of programming:
68.26 	(1) early childhood:
68.27 	(i) early childhood education; and
68.28 	(ii) child care services;
68.29 	(2) academic:
68.30 	(i) academic support and enrichment activities, including expanded learning time;
68.31 	(ii) summer or after-school enrichment and learning experiences;
68.32 	(iii) job training, internship opportunities, and career counseling services;
68.33 	(iv) programs that provide assistance to students who have been truant, suspended, 
68.34 	or expelled; and
68.35 	(v) specialized instructional support services;
68.36 	(3) parental involvement:
69.1 	(i) programs that promote parental involvement and family literacy, including the 
69.2 	Reading First and Early Reading First programs authorized under part B of title I of the 
69.3 	Elementary and Secondary Education Act of 1965, United States Code, title 20, section 
69.4 	6361, et seq.;
69.5 	(ii) parent leadership development activities; and
69.6 	(iii) parenting education activities;
69.7 	(4) mental and physical health:
69.8 	(i) mentoring and other youth development programs, including peer mentoring and 
69.9 	conflict mediation;
69.10 	(ii) juvenile crime prevention and rehabilitation programs;
69.11 	(iii) home visitation services by teachers and other professionals;
69.12 	(iv) developmentally appropriate physical education;
69.13 	(v) nutrition services;
69.14 	(vi) primary health and dental care; and
69.15 	(vii) mental health counseling services;
69.16 	(5) community involvement:
69.17 	(i) service and service-learning opportunities;
69.18 	(ii) adult education, including instruction in English as a second language; and
69.19 	(iii) homeless prevention services;
69.20 	(6) positive discipline practices; and
69.21 	(7) other programming designed to meet school and community needs identified in 
69.22 	the baseline analysis and reflected in the full-service community school plan.
69.23 	(h) The school leadership team at each school site must develop a full-service 
69.24 	community school plan detailing the steps the school leadership team will take, including:
69.25 	(1) timely establishment and consistent operation of the school leadership team;
69.26 	(2) maintenance of attendance records in all programming components;
69.27 	(3) maintenance of measurable data showing annual participation and the impact 
69.28 	of programming on the participating children and adults;
69.29 	(4) documentation of meaningful and sustained collaboration between the school 
69.30 	and community stakeholders, including local governmental units, civic engagement 
69.31 	organizations, businesses, and social service providers;
69.32 	(5) establishment and maintenance of partnerships with institutions, such as 
69.33 	universities, hospitals, museums, or not-for-profit community organizations to further the 
69.34 	development and implementation of community school programming;
69.35 	(6) ensuring compliance with the district nondiscrimination policy; and
69.36 	(7) plan for school leadership team development.

70.1 	Sec. 39. Minnesota Statutes 2014, section 124D.59, is amended by adding a 
70.2 	subdivision to read:
70.3 		Subd. 9.English learner data. When data on English learners are reported for 
70.4 	purposes of educational accountability, English learner data must include all pupils 
70.5 	enrolled in a Minnesota public school course or program who are currently or were 
70.6 	previously counted as English learners under this section.

70.7 	EFFECTIVE DATE. This section is effective for the 2017-2018 school year and 
70.8 	later.

70.9 	Sec. 40. Minnesota Statutes 2015 Supplement, section 124D.73, subdivision 4, is 
70.10 	amended to read:
70.11 		Subd. 4.Participating school; American Indian school. "Participating school" 
70.12 	and "American Indian school" mean a school that:
70.13 	(1) is not operated by a school district; and
70.14 	(2) is eligible for a grant under federal Title VII VI of the Elementary and Secondary 
70.15 	Education Act for the education of American Indian children.

70.16 	Sec. 41. Minnesota Statutes 2014, section 124D.861, subdivision 1, is amended to read:
70.17 		Subdivision 1.Program to close the academic achievement and opportunity gap; 
70.18 	revenue uses. (a) The "Achievement and Integration for Minnesota" program is established 
70.19 	to pursue racial and economic integration and increase student academic achievement, 
70.20 	create equitable educational opportunities, and reduce academic disparities based on 
70.21 	students' diverse racial, ethnic, and economic backgrounds in Minnesota public schools.
70.22 	(b) For purposes of this section and section 124D.862, "eligible district" means a 
70.23 	district required to submit a plan to the commissioner under Minnesota Rules governing 
70.24 	school desegregation and integration, or be a member of a multidistrict integration 
70.25 	collaborative that files a plan with the commissioner has the meaning given in subdivision 
70.26 	1a.
70.27 	(c) Eligible districts must use the revenue under section 124D.862 to pursue 
70.28 	academic achievement and racial and economic integration through: (1) integrated 
70.29 	learning environments that prepare all students to be effective citizens and enhance 
70.30 	social cohesion; (2) policies and curricula and trained instructors, administrators, school 
70.31 	counselors, and other advocates to support and enhance integrated learning environments 
70.32 	under this section, including through magnet schools, innovative, research-based 
70.33 	instruction, differentiated instruction, and targeted interventions to improve achievement; 
70.34 	and (3) rigorous career and college readiness programs for underserved student 
71.1 	populations, consistent with section 120B.30, subdivision 1; integrated learning 
71.2 	environments to increase student academic achievement; cultural fluency, competency, 
71.3 	and interaction; graduation and educational attainment rates; and parent involvement.

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

71.5 	Sec. 42. Minnesota Statutes 2014, section 124D.861, is amended by adding a 
71.6 	subdivision to read:
71.7 		Subd. 1a.Definitions. (a) "Racially identifiable school within a district" means a 
71.8 	school where the enrollment of protected students at the school within a district is more 
71.9 	than 20 percentage points above the enrollment of protected students in the entire district 
71.10 	for the grade levels served by that school.
71.11 	(b) "Racially isolated school district" means a district where the districtwide 
71.12 	enrollment of protected students exceeds the enrollment of protected students of any 
71.13 	adjoining district by more than 20 percentage points.
71.14 	(c) "School" means a site in a public school district serving any of kindergarten 
71.15 	through grade 12. For purposes of this section and section 124D.862, school does not mean:
71.16 	(1) a charter school under chapter 124E;
71.17 	(2) an area learning center under section 123A.05;
71.18 	(3) a public alternative program under section 126C.05, subdivision 15;
71.19 	(4) a contracted alternative program under section 124D.69;
71.20 	(5) a school site specifically designed to address limited English proficiency;
71.21 	(6) a school site specifically designed to address the needs of students with an 
71.22 	individualized education program (IEP); or
71.23 	(7) a secure or nonsecure treatment facility licensed by the Department of Human 
71.24 	Services or the Department of Corrections.
71.25 	(d) "Eligible district" means:
71.26 	(1) a racially isolated independent, common, or special school district; 
71.27 	(2) an adjoining, independent, common, or special school district that files a plan 
71.28 	with the commissioner; or 
71.29 	(3) an independent, common, or special school district that is a member of a 
71.30 	multidistrict integration collaborative that files a plan with the commissioner.

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

71.32 	Sec. 43. [124D.8957] PREKINDERGARTEN THROUGH GRADE 12 
71.33 	PARENTAL RIGHTS CODED ELSEWHERE.
72.1 		Subdivision 1.Scope. The sections referred to in subdivisions 2 to 30 are codified 
72.2 	outside this section. Those sections include many but not all the sections governing 
72.3 	parental rights related to topics in prekindergarten through grade 12 education.
72.4 		Subd. 2.Compulsory instruction. Parental rights related to compulsory instruction, 
72.5 	including the right to withdraw a child from school; to receive notice related to transfer of 
72.6 	disciplinary records; to excuse a child from school for illnesses, appointments, or religious 
72.7 	events; and the right of noncustodial parents to access school records and conferences, 
72.8 	among other rights, are governed by section 120A.22.
72.9 		Subd. 3.Longitudinal data. The parental right to annual summary longitudinal 
72.10 	performance and progress data is governed by section 120B.31.
72.11 		Subd. 4.Antibullying. Parental rights related to school district antibullying 
72.12 	policies, including the right to be involved in developing the policies, the right to be 
72.13 	notified of incidents of prohibited conduct, and the right to be informed of data practices 
72.14 	laws, are governed by section 121A.031.
72.15 		Subd. 5.Student discipline policies. The parental right to notice in student 
72.16 	discipline policies of rights under the Safe and Supportive Minnesota Schools Act is 
72.17 	governed by section 121A.0311.
72.18 		Subd. 6.Early childhood development screening. Parental rights to certain notice 
72.19 	requirements related to early childhood development screening and to receive results of 
72.20 	early childhood development screening are governed by section 121A.17. The parental 
72.21 	right to provide consent before individual screening data may be disclosed to a school 
72.22 	district is governed by section 121A.18.
72.23 		Subd. 7.Chemical abuse. The parental right to be informed of a reported case of 
72.24 	chemical abuse by a minor student is governed by section 121A.26.
72.25 		Subd. 8.Pesticides. The parental right to be notified regarding the use of pesticides 
72.26 	at a school is governed by the Janet B. Johnson Parents' Right-to-Know Act under section 
72.27 	121A.30.
72.28 		Subd. 9.Student dismissal. The parental right to notice and a meeting regarding 
72.29 	the removal of a student for more than ten days is governed by section 121A.45.
72.30 		Subd. 10.Exclusion and expulsion. The parental right to be included in exclusion 
72.31 	or expulsion hearing procedures, including access to records, ability to testify and present 
72.32 	evidence, and inclusion in the student's readmission plan, is governed by section 121A.47.
72.33 		Subd. 11.Exclusion and expulsion appeal. The parental right to notice of the right 
72.34 	to appeal an exclusion or expulsion decision is governed by section 121A.49.
73.1 		Subd. 12.Reinstatement after termination of dismissal. The parental right to 
73.2 	notice of a student's right to be reinstated after the termination of dismissal is governed 
73.3 	by section 121A.54.
73.4 		Subd. 13.Interdistrict cooperation. The parental right to notice of an 
73.5 	informational school board meeting relating to discontinuing interdistrict cooperation 
73.6 	is governed by section 123A.32.
73.7 		Subd. 14.Background checks. The parental right to notice of a school's 
73.8 	background check policy for hiring teachers is governed by section 123B.03.
73.9 		Subd. 15.Textbook fees. The parental right to notice of a school board's policy to 
73.10 	charge fees for textbooks lost or destroyed by students is governed by section 123B.37.
73.11 		Subd. 16.Transportation privileges. The parental right to surrender a student's 
73.12 	privilege to receive transportation services from a school district is governed by section 
73.13 	123B.88.
73.14 		Subd. 17.Nonresident district policies. The parental right to receive notice of: a 
73.15 	decision on an application by a student to attend school in a nonresident district; the 
73.16 	transportation policies of the nonresident district; and the right to be reimbursed for costs 
73.17 	of transportation to the nonresident district's border are governed by section 124D.03.
73.18 		Subd. 18.Out-of-state districts. Under section 124D.04, the parental rights related 
73.19 	to a student attending a nonresident district under section 124D.03 apply to a student 
73.20 	attending an out-of-state district.
73.21 		Subd. 19.Free or reduced-price lunch eligibility. The parental right to opt a child 
73.22 	out of disclosing a child's eligibility for free or reduced-price lunch to the Department of 
73.23 	Education and the Department of Human Services is governed by section 124D.1115.
73.24 		Subd. 20.Learning year programs. The parental right to notice of optional 
73.25 	learning year programs is governed by section 124D.128.
73.26 		Subd. 21.English learners programs. Parental rights related to student enrollment 
73.27 	in programs for English learners, including notice, withdrawal, and parental involvement, 
73.28 	are governed by section 124D.60.
73.29 		Subd. 22.Charter school transportation. The parental right to receive 
73.30 	pupil transportation information from the charter school or school district providing 
73.31 	transportation services to a charter school student is governed by section 123B.88.
73.32 		Subd. 23.Services for children with disabilities. The parental right to be included 
73.33 	in determining the appropriate and necessary services for students with disabilities is 
73.34 	governed by section 125A.027.
74.1 		Subd. 24.Data on children with disabilities. The parental right to notice and 
74.2 	involvement regarding online reporting of data related to children with disabilities is 
74.3 	governed by section 125A.085.
74.4 		Subd. 25.Special education alternative dispute resolution. Parental rights 
74.5 	regarding notice, participation, and due process related to special education alternative 
74.6 	dispute resolution procedures are governed by section 125A.091.
74.7 		Subd. 26.Third-party reimbursement for children with disabilities. The 
74.8 	parental right to notice of a school district seeking reimbursement from medical assistance 
74.9 	or MinnesotaCare for services rendered to a student with a disability is governed by 
74.10 	section 125A.21.
74.11 		Subd. 27.Services provided to children with disabilities. Parental rights 
74.12 	related to services provided to students eligible for Part C services under the Individuals 
74.13 	with Disabilities Education Act and the right to receive written materials regarding the 
74.14 	implementation of Part C services are governed by sections 125A.42 and 125A.48. The 
74.15 	parental right to use mediation to resolve disputes under section 125A.42 is governed 
74.16 	by section 125A.43.
74.17 		Subd. 28.Minnesota State Academies discharge. The parental right to notice of a 
74.18 	student's discharge from the Minnesota State Academies is governed by section 125A.68.
74.19 		Subd. 29.Education records for military children. The parental right to education 
74.20 	records under the Interstate Compact on Educational Opportunity for Military Children 
74.21 	is governed by section 127A.85.
74.22 		Subd. 30.Appeal adverse school board decision. The parental right to appeal a 
74.23 	school board decision adversely affecting an academic program of an enrolled student is 
74.24 	governed by section 129C.10, subdivision 36.

74.25 	Sec. 44. Minnesota Statutes 2014, section 124D.896, is amended to read:
74.26 	124D.896 DESEGREGATION/INTEGRATION AND INCLUSIVE 
74.27 	EDUCATION RULES.
74.28 	(a) The commissioner shall propose rules relating to desegregation/integration and 
74.29 	inclusive education, consistent with sections 124D.861 and 124D.862.
74.30 	(b) In adopting a rule related to school desegregation/integration, the commissioner 
74.31 	shall address the need for equal educational opportunities for all students and racial 
74.32 	balance as defined by the commissioner.
74.33 	(c) The commissioner must not adopt or enforce by rule a definition of "eligible 
74.34 	district" that expands or conflicts with the statutory definition of eligible district.

75.1 	EFFECTIVE DATE. This section is effective the day following enactment.

75.2 	Sec. 45. Minnesota Statutes 2015 Supplement, section 127A.05, subdivision 6, is 
75.3 	amended to read:
75.4 		Subd. 6.Survey of districts. The commissioner of education shall survey the state's 
75.5 	school districts and teacher preparation programs and report to the education committees 
75.6 	of the legislature by February 1 of each odd-numbered year on the status of teacher early 
75.7 	retirement patterns, the access to effective and more diverse teachers who reflect the 
75.8 	students under section 120B.35, subdivision 3, paragraph (b), clause (2), enrolled in 
75.9 	a district or school, the teacher shortage, and the substitute teacher shortage, including 
75.10 	patterns and shortages in subject areas and the economic development regions of the state. 
75.11 	The report must also include: aggregate data on teachers' self-reported race and ethnicity; 
75.12 	data on how districts are making progress in hiring teachers and substitutes in the areas 
75.13 	of shortage; and a five-year projection of teacher demand for each district, taking into 
75.14 	account the students under section 120B.35, subdivision 3, paragraph (b), clause (2), 
75.15 	expected to enroll in the district during that five-year period.

75.16 	Sec. 46. [127A.053] STATE ADMINISTRATION OF STUDENT SURVEY 
75.17 	INSTRUMENTS GENERALLY PROHIBITED.
75.18 	Notwithstanding other law to the contrary, and with the exception of section 
75.19 	120B.35, subdivision 3, paragraph (d), the commissioner must not develop, coordinate, 
75.20 	assist with, or use a statewide student survey seeking information about a student's 
75.21 	activities, opinions, behaviors, or experiences related to substance abuse, tobacco use, 
75.22 	connections with family, healthy eating, high school students' gambling and sexual 
75.23 	activities, or out-of-school activities, among other topics.

75.24 	Sec. 47. Minnesota Statutes 2014, section 127A.095, is amended to read:
75.25 	127A.095 IMPLEMENTATION OF NO CHILD LEFT BEHIND ACT
75.26 	ELEMENTARY AND SECONDARY EDUCATION ACT.
75.27 		Subdivision 1.Continued implementation. The Department of Education shall 
75.28 	continue to implement the federal No Child Left Behind Act, Public Law 107-110, 
75.29 	Elementary and Secondary Education Act without interruption.
75.30 		Subd. 2.No Child Left Behind review. (a) The legislature intends to require 
75.31 	the Department of Education to conduct a comprehensive review of the consolidated 
75.32 	state plan the state submitted to the federal Department of Education to implement the 
75.33 	No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 
76.1 	under paragraph (b). If the Department of Education is unable to obtain waivers under 
76.2 	paragraph (b), it should recommend in its report under paragraph (b) whether the state 
76.3 	should opt out of the No Child Left Behind Act.
76.4 	(b) The commissioner, by January 15, 2008, shall report to the house of 
76.5 	representatives and senate committees having jurisdiction over kindergarten through grade 
76.6 	12 education policy and finance whether the department has received approval from 
76.7 	the federal Department of Education to:
76.8 	(1) participate in the growth model pilot program;
76.9 	(2) exclude from sanctions schools that have not made adequate yearly progress due 
76.10 	solely to a subgroup of students with disabilities not testing at a proficient level;
76.11 	(3) identify a school as not making adequate yearly progress only after the school has 
76.12 	missed the adequate yearly progress targets in the same subgroup for two consecutive years;
76.13 	(4) determine when to hold schools accountable for including an English learner 
76.14 	in adequate yearly progress calculations;
76.15 	(5) allow a district not making adequate yearly progress to offer supplemental 
76.16 	educational services as an option before offering school choice;
76.17 	(6) allow a district not making adequate yearly progress to also be the supplemental 
76.18 	educational services provider;
76.19 	(7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 
76.20 	adequate yearly progress for subgroups of English learners and subgroups of students 
76.21 	with disabilities; and
76.22 	(8) create flexibility to enable the state to define and identify highly qualified teachers.
76.23 		Subd. 3.Department of Management and Budget certification. If the federal 
76.24 	Department of Education does not transmit to the commissioner of education its approval 
76.25 	of the conditions in subdivision 2, paragraph (b), The commissioner of management and 
76.26 	budget shall certify and report to the legislature annually beginning January 1, 2008, the 
76.27 	amount of federal revenue, if any, that the federal government may withhold as a result 
76.28 	of a potential state decision to discontinue implementation of the No Child Left Behind 
76.29 	Act Elementary and Secondary Education Act. The report shall also specify the intended 
76.30 	purpose of the federal revenue and the amount of revenue that the federal government may 
76.31 	withhold from the state, each school district, and each charter school in each fiscal year.

76.32 	Sec. 48. Minnesota Statutes 2014, section 129C.10, subdivision 1, is amended to read:
76.33 		Subdivision 1.Governance. (a) The board of the Perpich Center for Arts Education 
76.34 	shall consist of 15 13 persons, one of whom must have served as a school administrator or 
76.35 	as an elected school board member, one of whom is a locally or regionally recognized 
77.1 	professional artist, one of whom is a secondary or postsecondary arts educator, and a 
77.2 	licensed secondary arts teacher and a licensed secondary teacher teaching a core academic 
77.3 	subject area, one of whom is a Crosswinds school employee, and one of whom is a Perpich 
77.4 	Center for Arts Education employee. The members of the board shall be appointed by 
77.5 	the governor with the advice and consent of the senate. At least one member must be 
77.6 	appointed from each congressional district.
77.7 	(b) A seven-member nominating committee composed of one member appointed 
77.8 	by the Minnesota Association of School Administrators, one member appointed by the 
77.9 	Minnesota State Arts Board, one member appointed by the Minnesota School Boards 
77.10 	Association, one member appointed by the Minnesota Music Educators Association, one 
77.11 	member appointed by the Arts Educators of Minnesota, one member appointed jointly by 
77.12 	the exclusive representatives of the employees of the Perpich Center for Arts Education, 
77.13 	all six appointees of whom are subject to the governor's approval, and one member 
77.14 	appointed by the governor shall meet at least 60 days before the date on which the next 
77.15 	expiring board member's term is set to expire or within 15 days of receiving notice of a 
77.16 	board vacancy occurring at a time other than at the end of a board member's term to 
77.17 	prepare and submit a list of recommended candidates to the governor for the governor 
77.18 	to consider when appointing members of the Perpich Center for Arts Education Board. 
77.19 	Board members' terms must be staggered, consistent with section 15.0575, subdivision 2.
77.20 	(c) All board members must complete board training requirements consistent with 
77.21 	section 127A.19.
77.22 	(d) The terms of existing board members expire on September 1, 2016, but board 
77.23 	members may continue to serve until the governor appoints their successors.

77.24 	EFFECTIVE DATE. This section is effective the day following final enactment 
77.25 	and applies to board member terms and appointments made after that date.

77.26 	Sec. 49. [129C.12] PUBLIC INFORMATION.
77.27 		Subdivision 1.Board minutes. The board must post the minutes of its meetings on 
77.28 	its official Web site and supplemental board materials, information, and budget documents 
77.29 	consistent with Minnesota Management and Budget financial management and reporting 
77.30 	requirements.
77.31 		Subd. 2.Annual report. Consistent with section 123B.10, requiring school boards 
77.32 	to annually publish financial information on the district's official Web site, the board 
77.33 	must prepare and post on its official Web site an annual report summarizing Perpich 
77.34 	Center finances and, consistent with section 120B.36, subdivision 1, requiring school 
77.35 	and district accountability data, also post on its official Web site longitudinal data on 
78.1 	student enrollment and students' congressional districts of residence, graduation rates, and 
78.2 	postgraduation student placements.
78.3 		Subd. 3.World's best workforce. Consistent with section 120B.11, governing the 
78.4 	world's best workforce, the board must prepare and post a comprehensive, long-term 
78.5 	strategic improvement plan and report plan strategies, activities, practices, and outcomes 
78.6 	on its official Web site.
78.7 		Subd. 4.Audit report. (a) The Perpich Center for Arts Education is subject to an 
78.8 	annual independent audit. The audit must be conducted in compliance with generally 
78.9 	accepted governmental auditing standards and the federal Single Audit Act, if applicable. 
78.10 	The legislative auditor or Department of Education may conduct financial, program, or 
78.11 	compliance audits, and may direct the Perpich Center for Arts Education to include any 
78.12 	additional items in its annual independent audit.
78.13 	(b) Upon approval from the Department of Education, the Perpich Center for Arts 
78.14 	Education may combine this audit with its required annual audit of the Crosswinds Arts 
78.15 	and Science School.
78.16 	(c) The Perpich Center for Arts Education must post its most recent audit on its 
78.17 	Web site.

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

78.19 	Sec. 50. Minnesota Statutes 2015 Supplement, section 136F.302, subdivision 1, 
78.20 	is amended to read:
78.21 		Subdivision 1.ACT college ready score. A state college or university maymust 
78.22 	not require an individual to take a remedial, noncredit course in a subject area if the 
78.23 	individual has received a college ready ACT score in that subject area. Each state college 
78.24 	and university must post notice of the exemption from remedial course taking on its Web 
78.25 	page explaining student admission requirements.

78.26 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
78.27 	later.

78.28 	Sec. 51. [136F.3025] MINNESOTA COMPREHENSIVE ASSESSMENTS; 
78.29 	CAREER AND COLLEGE-READY BENCHMARKS.
78.30 	A state college or university must not require an individual to take a remedial, 
78.31 	noncredit course in a subject area if the individual met a career and college-ready Minnesota 
78.32 	Comprehensive Assessment benchmark in that subject area, consistent with section 
78.33 	120B.30, subdivision 1, paragraph (m). When notifying students and their families about 
79.1 	test results under section 120B.30, subdivision 1, paragraph (m), the commissioner shall 
79.2 	include a statement indicating that students who meet a career and college-ready Minnesota 
79.3 	Comprehensive Assessment benchmark are not required to take a remedial, noncredit 
79.4 	course at a Minnesota state college or university in the corresponding subject area.

79.5 	EFFECTIVE DATE. This section is effective for the 2018-2019 school year and 
79.6 	later.

79.7 	Sec. 52. [136F.361] CAREER AND TECHNICAL EDUCATION 
79.8 	CERTIFICATION AND LICENSURE.
79.9 	The Board of Trustees of the Minnesota State Colleges and Universities System, 
79.10 	consistent with section 122A.09, subdivision 10, paragraph (e), must provide an 
79.11 	alternative preparation program allowing individuals to be certified or licensed as a career 
79.12 	and technical education instructor or teacher able to teach career and technical education 
79.13 	courses offered by a school district or charter school. The Board of Trustees may locate 
79.14 	the first program in the seven county metropolitan area.

79.15 	EFFECTIVE DATE. This section is effective for the 2016-2017 academic year 
79.16 	and later.

79.17 	Sec. 53. Laws 2010, chapter 396, section 7, the effective date, is amended to read:

79.18 	EFFECTIVE DATE. This section is effective the day following final enactment, 
79.19 	including subdivision 3 which is effective through the 2020-2021 school year.

79.20 	Sec. 54. Laws 2012, chapter 263, section 1, as amended by Laws 2014, chapter 312, 
79.21 	article 15, section 24, is amended to read:
79.22 	Section 1. INNOVATIVE DELIVERY OF CAREER AND TECHNICAL 
79.23 	EDUCATION PROGRAMS AND SERVICES AND SHARING OF DISTRICT 
79.24 	RESOURCES; PILOT PROJECT.
 79.25 		Subdivision 1.Establishment; requirements for participation. (a) A pilot project
79.26 	program is established to improve student, career and college readiness, and school 
79.27 	outcomes by allowing groups of school districts to work together in partnership with local 
79.28 	and regional postsecondary institutions and programs, community institutions, and other 
79.29 	private, public, for-profit, and nonprofit workplace partners to:
79.30 	(1) provide innovative education programs and activities that integrate core 
79.31 	academic and career and technical subjects in students' programs of study through 
80.1 	coordinated secondary and postsecondary career and technical programs leading to an 
80.2 	industry certification or other credential;
80.3 	(2) provide embedded professional development for program participants;
80.4 	(3) use performance assessments in authentic settings to measure students' technical 
80.5 	skills and progress toward attaining an industry certification or other credential; and 
80.6 	(4) efficiently share district, institution, and workplace resources. The pilot project 
80.7 	may last until June 30, 2018, or for up to five years, whichever is less, except that 
80.8 	innovation partnerships formed during the period of the pilot project may continue past 
80.9 	June 30, 2018, with the agreement of the partnership members.
80.10 	(b) To participate in this pilot project program to improve student, career and college 
80.11 	readiness, and school outcomes, a group of two or more school districts must collaborate 
80.12 	with school staff and project partners and receive formal school board approval to form a 
80.13 	partnership. The partnership must develop a plan to provide challenging programmatic 
80.14 	options for students under paragraph (a), create professional development opportunities 
80.15 	for educators and other program participants, increase student engagement and connection 
80.16 	and challenging learning opportunities for diverse populations of students that are focused 
80.17 	on employability skills and technical, job-specific skills related to a specific career 
80.18 	pathway, or demonstrate efficiencies in delivering financial and other services needed to 
80.19 	realize plan goals and objectives. The plan must establish include:
80.20 	(1) collaborative educational goals and objectives;
80.21 	(2) strategies and processes to implement those goals and objectives, including a 
80.22 	budget process with periodic expenditure reviews;
80.23 	(3) valid and reliable measures, including performance assessments in authentic 
80.24 	settings and progress toward attaining an industry certification or other credential, among 
80.25 	other measures, to evaluate progress in realizing the goals and objectives;
80.26 	(4) an implementation timeline; and
80.27 	(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee 
80.28 	schedules, and legal considerations needed to fully implement the plan.
80.29 	A partnership may invite additional districts or other participants under paragraph 
80.30 	(a) to join the partnership during the pilot project term after notifying the commissioner.
80.31 	(c) A partnership of interested districts must apply by February 1 of any year submit 
80.32 	an application to the education commissioner in the form and manner the commissioner 
80.33 	determines, consistent with the requirements of this section. The application must contain 
80.34 	the formal approval adopted by the school board in each district to participate in the plan.
80.35 	(d) Notwithstanding other law to the contrary, a participating school district under 
80.36 	this section continues to: receive revenue and maintain its taxation authority; be organized 
81.1 	and governed by an elected school board with general powers under Minnesota Statutes, 
81.2 	section 123B.02; and be subject to employment agreements under Minnesota Statutes, 
81.3 	chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue 
81.4 	to remain employees of the employing school district.
81.5 	(e) Participating districts must submit a biennial report by February 1 of each 
81.6 	odd-numbered year to the committees of the legislature with jurisdiction over kindergarten 
81.7 	through grade 12 education and the commissioner of education that includes performance 
81.8 	assessment, high school graduation, and career and technical certification data to show the 
81.9 	success of the partnership in preparing diverse populations of students for careers and jobs.
81.10 		Subd. 2.Commissioner's role. Interested groups of school districts must submit 
81.11 	a completed application to the commissioner by March 1 of in any year in the form and 
81.12 	manner determined by the commissioner. The education commissioner must convene 
81.13 	an advisory panel composed of a teacher appointed by Education Minnesota, a school 
81.14 	principal appointed by the Minnesota Association of Secondary School Principals, a 
81.15 	school board member appointed by the Minnesota School Boards Association, and a 
81.16 	school superintendent appointed by the Minnesota Association of School Administrators
81.17 	to advise the commissioner on applicants' qualifications to participate in this pilot project
81.18 	program. The commissioner may select up to six qualified applicants under subdivision 1 
81.19 	by April 1 of any year to participate in this pilot project, ensuring must ensure an equitable 
81.20 	geographical distribution of project program participants to the extent practicable. The 
81.21 	commissioner must select only those applicants that fully comply with the requirements in 
81.22 	subdivision 1. The commissioner must may terminate a project program participant that 
81.23 	fails to effectively implement the goals and objectives contained in its application and 
81.24 	according to its stated timeline.
81.25 		Subd. 3.Pilot project evaluation. Participating school districts must submit pilot 
81.26 	project data to the commissioner in the form and manner determined by the commissioner. 
81.27 	The education commissioner must analyze participating districts' progress in realizing 
81.28 	their educational goals and objectives to work together in providing innovative education 
81.29 	programs and activities and sharing resources. The commissioner must include the 
81.30 	analysis of best practices in a report to the legislative committees with jurisdiction over 
81.31 	kindergarten through grade 12 education finance and policy on the efficacy of this pilot 
81.32 	project. The commissioner shall submit an interim project report by February 1, 2016, and 
81.33 	must submit a final report to the legislature by February 1, 2019, recommending whether 
81.34 	or not to continue or expand the pilot project.

81.35 	EFFECTIVE DATE. (a) This section is effective the day following final enactment 
81.36 	and applies to applications submitted after that date.
82.1 	(b) Districts already approved for an innovation zone pilot project may continue to 
82.2 	operate under Laws 2012, chapter 263, section 1, as amended by Laws 2014, chapter 
82.3 	312, article 15, section 24.

82.4 	Sec. 55. Laws 2015, chapter 69, article 1, section 3, subdivision 28, is amended to read:

82.5
82.6	Subd. 28.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
1,200,000
	
82.7 	For the loan forgiveness program under 
82.8 	Minnesota Statutes, section 136A.1791.
82.9 	The commissioner may use no more 
82.10 	than three percent of this appropriation 
82.11 	to administer the program under this 
82.12 	subdivision. The base for the program for 
82.13 	fiscal year 2018 and later is $200,000.

82.14 	EFFECTIVE DATE. This section is effective the day following final enactment, 
82.15 	and any unexpended funds in fiscal year 2017 do not cancel and remain available until 
82.16 	June 30, 2019.

82.17 	Sec. 56. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
82.18 	2, is amended to read:
82.19 		Subd. 2.Alternative compensation. For alternative teacher compensation aid 
82.20 	under Minnesota Statutes, section 122A.415, subdivision 4:

82.21
82.22		$
	78,331,000
78,667,000
	.....
	2016
	
82.23
82.24		$
	87,147,000
89,049,000
	.....
	2017
	
82.25 	The 2016 appropriation includes $7,766,000 for 2015 and $70,565,000 $70,901,000
82.26 	for 2016.
82.27 	The 2017 appropriation includes $7,840,000 $7,876,000 for 2016 and $79,307,000
82.28 	$81,173,000 for 2017.

82.29 	Sec. 57. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
82.30 	6, is amended to read:
82.31 		Subd. 6.Reading Corps. For grants to ServeMinnesota for the Minnesota Reading 
82.32 	Corps under Minnesota Statutes, section 124D.42, subdivision 8:

83.1		$
	6,125,000
	.....
	2016
	
83.2
83.3		$
	6,125,000
7,625,000
	.....
	2017
	
83.4 	Any balance in the first year does not cancel but is available in the second year through 
83.5 	June 30, 2019. The base appropriation for fiscal year 2018 and later years is $5,625,000.

83.6 	Sec. 58. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
83.7 	12, is amended to read:
83.8 		Subd. 12.Collaborative urban educator. (a) For the collaborative urban educator 
83.9 	grant program:

83.10		$
	780,000
	.....
	2016
	
83.11
83.12		$
	780,000
2,780,000
	.....
	2017
	
83.13 	(b) Grants shall be awarded in equal amounts: $195,000 each year is for the Southeast 
83.14 	Asian teacher program at Concordia University, St. Paul; $195,000 each year is for the 
83.15 	collaborative urban educator program at the University of St. Thomas; $195,000 each year 
83.16 	is for the Center for Excellence in Urban Teaching at Hamline University; and $195,00
83.17 	$195,000 each year is for the East Africa Student to Teacher program at Augsburg College.
83.18 	In fiscal year 2017 only, in addition to the amounts awarded under this paragraph, the 
83.19 	institutions identified in this paragraph may receive additional funding under paragraph (c).
83.20 	Any balance in the first year does not cancel but is available in the second year.
83.21 	Each institution shall prepare for the legislature, by January 15 of each year, a 
83.22 	detailed report regarding the funds used. The report must include the number of teachers 
83.23 	prepared as well as the diversity for each cohort of teachers produced.
83.24 	(c) A Minnesota teacher preparation program, a district Grow Your Own teacher 
83.25 	program, a nonconventional teacher preparation program under Minnesota Rules, part 
83.26 	8705.2300, or an alternative teacher preparation program under Minnesota Statutes, 
83.27 	section 122A.245, may apply to the commissioner of education for a grant in the form and 
83.28 	manner determined by the commissioner. The commissioner may award grants of up to 
83.29 	two years to the extent funds are available. The commissioner annually must award at 
83.30 	least 50 percent of grant funds to nonconventional and alternative preparation programs, 
83.31 	giving priority to funding programs that: 
83.32 	(1) recruit, retain, graduate, and place teacher candidates who reflect the 
83.33 	demographic diversity of the students enrolled in the district where the teacher candidate 
83.34 	is placed and provide the teachers with well-qualified mentor teachers; or 
84.1 	(2) train and place teacher candidates in subject areas or regions of the state 
84.2 	identified by the commissioner as shortage areas under Minnesota Statutes, section 
84.3 	127A.05, subdivision 6.
84.4 	(d) A grant recipient under this subdivision, annually by January 15, must prepare a 
84.5 	report for the commissioner of education and the kindergarten through grade 12 and 
84.6 	higher education committees of the legislature in the form and manner determined by the 
84.7 	commissioner. At a minimum, the report must detail grant expenditures for the previous 
84.8 	year and summarize program outcomes based on teacher preparation and performance 
84.9 	data consistent with paragraph (c) and Minnesota Statutes, section 122A.09, subdivision 
84.10 	4a, paragraph (b).
84.11 	(e) This appropriation is available until June 30, 2019. The base appropriation 
84.12 	for fiscal year 2018 and later is $780,000.

84.13 	Sec. 59. Laws 2015, First Special Session chapter 3, article 3, section 15, subdivision 
84.14 	3, is amended to read:
84.15 		Subd. 3.ACT testCollege entrance examination reimbursement. To reimburse 
84.16 	districts for students who qualify under Minnesota Statutes, section 120B.30, subdivision 
84.17 	1, paragraph (e), for onetime payment of their ACTcollege entrance examination fee:

84.18		$
	3,011,000
	.....
	2016
	
84.19		$
	3,011,000
	.....
	2017
	
84.20 	The Department of Education must reimburse districts for their onetime payments 
84.21 	on behalf of students.

84.22 	EFFECTIVE DATE. This section applies to college entrance exams administered 
84.23 	after July 1, 2016.

84.24 	Sec. 60. CONCURRENT ENROLLMENT TEACHER TRAINING GRANTS.
 84.25 	For fiscal years 2017, 2018, and 2019 only, a high school teacher required to obtain 
84.26 	additional training to meet the partnering college's or university's academic requirements 
84.27 	to teach a concurrent enrollment course in a high school under Minnesota Statutes, section 
84.28 	124D.09, may be reimbursed for tuition for up to 18 graduate credits in furthering this 
84.29 	training. The commissioner shall establish application procedures and deadlines for 
84.30 	receiving grant payments under this subdivision.

84.31 	EFFECTIVE DATE. This section is effective July 1, 2016.

84.32 	Sec. 61. MINNESOTA'S FUTURE TEACHERS; GRANT PROGRAM.
 85.1 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
85.2 	have the meanings given them.
85.3 	(b) "Eligible institution" means a Minnesota public or nonpublic postsecondary 
85.4 	institution under Minnesota Statutes, section 136A.101, subdivision 4, providing a Board 
85.5 	of Teaching-approved teacher preparation program.
85.6 	(c) "High needs area" means a shortage of teachers teaching in particular subject 
85.7 	areas and, or in particular regions of the state, identified in the commissioner of education's 
85.8 	biennial survey of districts under Minnesota Statutes, section 127A.05, subdivision 6, or 
85.9 	in another Department of Education survey on teacher shortages.
85.10 	(d) "High needs school" means a school:
85.11 	(1) designated as a low performing school under the most recently reauthorized 
85.12 	federal Elementary and Secondary Education Act; or
85.13 	(2) above the state average in the concentration of students qualifying for free and 
85.14 	reduced-price lunch.
85.15 	(e) "Qualified candidate" means a student enrolled in a Board of Teaching-approved 
85.16 	teacher preparation program at an eligible institution meeting the criteria in subdivision 3.
85.17 		Subd. 2.Account. An account is established under the control of the commissioner 
85.18 	of the Office of Higher Education for grants to eligible institutions to provide financial 
85.19 	and other support to qualified candidates interested in teaching in a high needs area or 
85.20 	school. Unused funds appropriated to the Department of Education and transferred to the 
85.21 	Office of Higher Education in any fiscal year do not cancel and are available for the 
85.22 	purposes of this section.
85.23 		Subd. 3.Program requirements. (a) The commissioner of the Office of Higher 
85.24 	Education, beginning in the 2017-2018 school year, shall award grants to eligible 
85.25 	institutions to help defray costs for qualified undergraduate and graduate candidates to 
85.26 	become licensed teachers. The commissioner shall determine the maximum grant award 
85.27 	available to each eligible institution, including the amount available for administrative and 
85.28 	support services, and other terms and conditions related to administering the grant program.
85.29 	(b) The eligible institution must provide grant funding to its teacher preparation 
85.30 	programs for:
85.31 	(1) reducing tuition, fees, and related education costs of qualified candidates;
85.32 	(2) actively encouraging historically underserved students, students of color, and 
85.33 	students to pursue teaching in a high needs area or school;
85.34 	(3) supporting qualified candidates to persist in and complete their teacher 
85.35 	preparation program and receive a full professional teaching license; and
85.36 	(4) providing qualified candidates with experiential teaching opportunities.
86.1 	(c) A qualified candidate under this section must submit to the teacher preparation 
86.2 	program a written statement indicating the qualified candidate's intent to teach in a high 
86.3 	needs school or area after completing the teacher preparation program and receiving 
86.4 	a teaching license.
86.5 	(d) The teaching preparation program must provide mentoring to its qualified 
86.6 	candidates that includes at least:
86.7 	(1) good communication with the qualified candidate throughout the program;
86.8 	(2) a personalized learning plan for the qualified candidate that describes the 
86.9 	requirements for completing the program and obtaining a teaching position and the 
86.10 	resources available for overcoming obstacles to completing the program;
86.11 	(3) connections to campus resources and professional and personal development 
86.12 	opportunities; and
86.13 	(4) financial planning. 

86.14 	Sec. 62. GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS.
 86.15 		Subdivision 1.Establishment. The commissioner of the Office of Higher Education 
86.16 	must establish a grant program for student teaching stipends for low-income students 
86.17 	enrolled in a Board of Teaching-approved teacher preparation program who are interested 
86.18 	in teaching in a high needs subject area or region after graduating and receiving their 
86.19 	teaching license. For purposes of this section, "high needs subject area or region" means a 
86.20 	shortage of teachers teaching in particular subject areas or a shortage of teachers teaching 
86.21 	in particular regions of the state identified in the commissioner of education's biennial 
86.22 	survey of districts under Minnesota Statutes, section 127A.05, subdivision 6, or in another 
86.23 	Department of Education survey on teacher shortages.
86.24 		Subd. 2.Eligibility To be eligible for a grant under this section, a teacher candidate 
86.25 	must:
86.26 	(1) be enrolled in a Board of Teaching-approved teacher preparation program that 
86.27 	requires at least 12 weeks of student teaching and results in the teacher candidate receiving 
86.28 	a full professional teaching license enabling the licensee to teach in a high needs subject 
86.29 	area or region; and
86.30 	(2) demonstrate financial need based on criteria established by the commissioner 
86.31 	under subdivision 3.
86.32 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
86.33 	application process and other guidelines for implementing this program.
86.34 	(b) The commissioner must determine each academic year the stipend amount based 
86.35 	on the amount of available funding and the number of eligible applicants.

87.1 	EFFECTIVE DATE. This section is effective July 1, 2016.

87.2 	Sec. 63. LEGISLATIVE STUDY GROUP ON EDUCATOR LICENSURE.
 87.3 	(a) A 12-member legislative study group on educator licensure is created to review 
87.4 	the 2016 Minnesota Teacher Licensure report prepared by the Office of the Legislative 
87.5 	Auditor on teacher licensing and submit a written report by February 1, 2017, to the 
87.6 	legislature recommending how to restructure Minnesota's teacher licensure system by 
87.7 	consolidating all teacher licensure activities into a single state entity to ensure transparency 
87.8 	and consistency or, at a minimum, by clarifying existing teacher licensure responsibilities 
87.9 	to provide transparency and consistency. In developing its recommendations, the study 
87.10 	group is encouraged to consider the tiered licensure system recommended in the legislative 
87.11 	auditor's report, among other recommendations. The study group is encouraged to begin 
87.12 	its work by consulting with teachers currently teaching in Minnesota school districts, 
87.13 	charter schools, and nonpublic schools and with out-of-state teachers currently licensed or 
87.14 	seeking a license in Minnesota. The study group is encouraged to identify and include in 
87.15 	its report any statutory changes needed to implement the study group recommendations.
87.16 	(b) The legislative study group on educator licensure includes:
87.17 	(1) six duly elected and currently serving members of the house of representatives, 
87.18 	three appointed by the speaker of the house and three appointed by the house minority 
87.19 	leader, and one of whom must be the current chair of the house of representatives 
87.20 	Education Innovation Policy Committee; and
87.21 	(2) six duly elected and currently serving senators, three appointed by the senate 
87.22 	majority leader and three appointed by the senate minority leader, one of whom must be 
87.23 	the current chair of the senate Education Committee.
87.24 	Only duly elected and currently serving members of the house of representatives or senate 
87.25 	may be study group members.
87.26 	(c) The appointments must be made by June 1, 2016, and expire February 2, 2017. 
87.27 	If a vacancy occurs, the leader of the caucus in the house of representatives or senate to 
87.28 	which the vacating study group member belonged must fill the vacancy. The chair of the 
87.29 	house Education Innovation Policy Committee shall convene the first meeting of the study 
87.30 	group. The study group shall elect a chair or cochairs from among the members at the 
87.31 	first meeting. The study group must meet periodically. The Legislative Coordinating 
87.32 	Commission shall provide technical and administrative assistance upon request.
87.33 	(d) In reviewing the legislative auditor's report and developing its recommendations, 
87.34 	the study group must consult with the Board of Teaching, the licensing division of the 
88.1 	Department of Education, the Minnesota Board of School Administrators, and interested 
88.2 	and affected stakeholders.
88.3 	(e) The study group expires on February 2, 2017, unless extended by law.

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

88.5 	Sec. 64. BOARD OF TEACHING REPORT.
 88.6 	The Board of Teaching must prepare and submit a written report to the committees 
88.7 	of the legislature with jurisdiction over kindergarten through grade 12 education by 
88.8 	February 1, 2017, listing all the statutory and rule requirements on teacher preparation, 
88.9 	examinations, and training applicable to candidates for teacher licensure by type of license 
88.10 	and all the statutory and rule requirements on continuing education applicable to teachers 
88.11 	seeking to renew a full professional teaching license.

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

88.13 	Sec. 65. TEACHER LICENSING; PROCESS AND PROCEDURES.
 88.14 	(a) The Board of Teaching must maintain an easily accessible, user-friendly online 
88.15 	teacher licensure application system to enable all teacher licensure candidates to upload 
88.16 	their teacher licensure applications electronically and to select the field and grade level for 
88.17 	which they seek to be licensed. The online application system must list all types of teacher 
88.18 	licenses and special permissions available, outline the specific requirements for each type 
88.19 	of license and special permission, allow candidates to submit applications for all types 
88.20 	of licenses and special permissions, and be clear and complete. The online application 
88.21 	form must accommodate Minnesota and out-of-state candidates who completed a teacher 
88.22 	preparation and training program at either an accredited college or university or a 
88.23 	nontraditional teacher preparation and training program.
88.24 	(b) When completely or partially denying a candidate a teaching license by issuing 
88.25 	a license that is more limited than the license the candidate seeks, including a restricted 
88.26 	license, the Board of Teaching, after consulting with the Department of Education if 
88.27 	appropriate, must notify the candidate in writing clearly explaining: the reason for denying 
88.28 	or partially denying the candidate a teaching license, including the specific deficiencies 
88.29 	identified in the candidate's preparation or qualifications; the options available to the 
88.30 	candidate to pursue the license the candidate seeks; and the candidate's right to appeal a 
88.31 	denial. Under the two-step appeal process, a candidate may appeal a licensure decision 
88.32 	to the Board of Teaching for review and, if the board does not find for the candidate, 
89.1 	the candidate may submit a second appeal, requesting a contested case hearing under 
89.2 	Minnesota Statutes, chapter 14.
89.3 	(c) The Board of Teaching must grant a one-year full professional teaching license 
89.4 	to otherwise qualified teacher licensure candidates who have satisfactorily completed 
89.5 	a board-approved teacher preparation program in Minnesota, an accredited teacher 
89.6 	preparation program in another state, or all the licensure-specific coursework and other 
89.7 	requirements of a Board of Teaching-approved alternative teacher preparation and training 
89.8 	program but have not yet successfully completed the content, pedagogy, and skills exams 
89.9 	required for licensure. The board may renew a candidate's one-year full professional 
89.10 	teaching license under this paragraph up to three times.

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

89.12 	Sec. 66. DATA SECURITY PLAN.
 89.13 		Subdivision 1.Plan components. To protect education and related workforce 
89.14 	data on individual students maintained by public schools, school districts, and state 
89.15 	agencies, and consistent with Minnesota Statutes, chapter 13, and sections 116J.401, 
89.16 	120B.11, 120B.12, 120B.30, 120B.31, 120B.35, 120B.36, 124D.49, 124D.52, 124D.861, 
89.17 	125A.085, and 127A.70, subdivision 2, among other student data-related provisions, the 
89.18 	commissioner of education must develop, publish, and oversee a detailed data security 
89.19 	plan combining administrative, physical, and technical safeguards that includes:
89.20 	(1) requirements for:
89.21 	(i) authorizing access to the kindergarten through grade 12 data systems containing 
89.22 	personally identifiable information on students;
89.23 	(ii) authorizing data and system access for other agencies participating in the 
89.24 	Statewide Longitudinal Education Data System and the Early Childhood Longitudinal 
89.25 	Data System;
89.26 	(iii) authenticating authorized access to and the processing of personally identifiable 
89.27 	information on students;
89.28 	(iv) protecting data that describes a student or otherwise identifies a student gathered 
89.29 	by an operator of a Web site, online service, online application, or mobile application 
89.30 	that operates a site, service, or application for kindergarten through grade 12 school 
89.31 	purposes; and
89.32 	(v) sanctions for employees, contractors, grantees, researchers, and vendors who 
89.33 	fail to comply with the guidelines;
89.34 	(2) minimum privacy compliance standards based on reasonable and enforceable 
89.35 	security measures and practices, including background checks, training opportunities 
90.1 	and resources, physical and technical safeguards, and privacy and security agreements 
90.2 	for employees, contractors, grantees, researchers, and vendors with access to personally 
90.3 	identifiable information on students, among other privacy and security measures and 
90.4 	practices;
90.5 	(3) regular privacy and security compliance audits of the Statewide Longitudinal 
90.6 	Education Data System and other data systems; and
90.7 	(4) data retention, storage, disposal, and security policies and protocols that include:
90.8 	(i) safeguards for protecting, managing, accessing, and destroying students' 
90.9 	personally identifiable data; and
90.10 	(ii) plans, notices, and mitigation procedures for responding to data breaches, among 
90.11 	other policies and protocols.
90.12 		Subd. 2.Plan report. The commissioner of education must submit a report by 
90.13 	January 10, 2017, to the committees of the legislature with jurisdiction over education 
90.14 	and data practices on the Department of Education's progress in developing the data 
90.15 	security plan and must include in the report estimates of the costs for further developing 
90.16 	and implementing the plan, including audit, background check, and training costs, among 
90.17 	other costs.
90.18 		Subd. 3.Plan costs. The commissioner of education must proceed in developing the 
90.19 	data security plan under subdivision 1 using existing Department of Education resources.
90.20 		Subd. 4.Plan implementation. The commissioner of education may not proceed to 
90.21 	implement the data security plan under this section until July 1, 2017.

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

90.23 	Sec. 67. STAFF DEVELOPMENT GRANTS FOR INTERMEDIATE SCHOOL 
90.24 	DISTRICTS AND OTHER COOPERATIVE UNITS.
 90.25 	(a) For fiscal years 2017, 2018, and 2019 only, an intermediate school district or 
90.26 	other cooperative unit providing instruction to students in federal instructional settings 
90.27 	of level 4 or higher qualifies for staff development grants equal to $1,000 times the 
90.28 	full-time equivalent number of licensed instructional staff and nonlicensed classroom 
90.29 	aides employed by the intermediate school district or other cooperative unit during the 
90.30 	previous fiscal year.
90.31 	(b) Staff development grants received under this section must be used for activities 
90.32 	related to enhancing services to students who may have challenging behaviors or mental 
90.33 	health issues or be suffering from trauma. Specific qualifying staff development activities 
90.34 	include but are not limited to:
90.35 	(1) proactive behavior management;
91.1 	(2) personal safety training;
91.2 	(3) de-escalation techniques; and
91.3 	(4) adaptation of published curriculum and pedagogy for students with complex 
91.4 	learning and behavioral needs.
91.5 	(c) The grants received under this section must be reserved and spent only on the 
91.6 	activities specified in this section. If funding for purposes of this section is insufficient, 
91.7 	the commissioner must prorate the grants.

91.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
91.9 	and later.

91.10 	Sec. 68. STUDENT DISCIPLINE WORKING GROUP.
 91.11 	(a) A student discipline working group is created to review the substance, 
91.12 	application, and effect of Minnesota's Pupil Fair Dismissal Act under Minnesota Statutes, 
91.13 	sections 121A.40 to 121A.56, and related student discipline provisions in Minnesota 
91.14 	Statutes, chapter 121A, and submit written recommendations to the legislature by 
91.15 	February 1, 2017, on improving disciplinary policies, practices, and procedures as they 
91.16 	affect students and school officials and the effects on student outcomes.
91.17 	(b) Consistent with paragraph (a), the working group must analyze:
91.18 	(1) available summary data on elementary and secondary students' removal from 
91.19 	class, suspensions, exclusions, expulsions, and other disciplinary measures, disaggregated 
91.20 	by categories of race, ethnicity, poverty, disability, homelessness, English language 
91.21 	proficiency, gender, age, and foster care status;
91.22 	(2) the meaning and effect of "willful" in establishing grounds for dismissal under 
91.23 	Minnesota Statutes, section 121A.45;
91.24 	(3) the impact of positive behavioral interventions and supports and restorative 
91.25 	practices on student behavior, student outcomes, and the school climate, including student 
91.26 	engagement and connection, among other school climate measures;
91.27 	(4) due process rights of students facing dismissal, including changes needed to 
91.28 	ensure students' due process rights are fully observed and protected;
91.29 	(5) students' need for and access to professional support service providers such 
91.30 	as school counselors, school social workers, school psychologists, and mental health 
91.31 	professionals;
91.32 	(6) the presence of school resource officers in school buildings, their role in affecting 
91.33 	student discipline, and their impact on teacher safety and student outcomes;
91.34 	(7) policies for retaining and destroying student disciplinary data; and
92.1 	(8) other related school discipline matters that are of concern to working group 
92.2 	members.
92.3 	(c) By June 1, 2016, the executive director of each of the following organizations 
92.4 	shall appoint one representative to serve as a member of the working group: the Minnesota 
92.5 	School Boards Association; the Minnesota Association of School Administrators; 
92.6 	Education Minnesota; the Minnesota Board of Peace Officer Standards and Training; the 
92.7 	Minnesota Disability Law Center; the National Alliance of Mental Illness Minnesota; 
92.8 	the Parent Advocacy Coalition for Educational Rights (PACER) Center; the Minnesota 
92.9 	Association of Secondary School Principals; the Minnesota Elementary School Principals' 
92.10 	Association; the Association of Metropolitan School Districts; the Minnesota Rural 
92.11 	Education Association; the Minnesota School Counselors Association; the Minnesota 
92.12 	School Psychologists Association; the School Nurse Organization of Minnesota; the St. 
92.13 	Paul Special Education Advisory Council; the Solutions Not Suspensions Coalition; the 
92.14 	Minnesota Education Equity Partnership; MinnCAN; Students for Education Reform; the 
92.15 	Minnesota Youth Council; Educators 4 Excellence; the African American Leadership 
92.16 	Forum; the American Indian Opportunities Industrialization Center; the Minnesota 
92.17 	Association of Charter Schools; the Minnesota Indian Affairs Council; and the Minnesota 
92.18 	School Social Workers Association. Six legislators shall also be appointed by June 
92.19 	1, 2016, and serve as members of the working group: three duly elected and currently 
92.20 	serving senators, two appointed by the senate majority leader and one appointed by the 
92.21 	senate minority leader; and three duly elected and currently serving members of the 
92.22 	house of representatives, two appointed by the speaker of the house and one appointed 
92.23 	by the house of representatives minority leader. Only duly elected and currently serving 
92.24 	members of the senate or house of representatives may be working group members. If a 
92.25 	vacancy occurs, the leader of the caucus in the senate or house of representatives to which 
92.26 	the vacating member belonged must fill the vacancy. Working group members must seek 
92.27 	advice from experts and stakeholders in developing their recommendations.
92.28 	(d) The commissioner of education, or the commissioner's designee, must convene 
92.29 	the first meeting of the working group. The working group must select a chair or cochairs 
92.30 	from among its members at the first meeting. The working group must meet periodically. 
92.31 	The commissioner must provide technical and administrative assistance to the working 
92.32 	group upon request. Working group members are not eligible to receive expenses or per 
92.33 	diem payments for serving on the working group.
92.34 	(e) The working group expires February 2, 2017.

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

93.1 	Sec. 69. NORTHWEST REGIONAL PARTNERSHIP CONCURRENT 
93.2 	ENROLLMENT PROGRAM.
 93.3 		Subdivision 1.Definition. "Northwest Regional Partnership" means a voluntary 
93.4 	association of the Lakes Country Service Cooperative, the Northwest Service Cooperative, 
93.5 	and Minnesota State University-Moorhead that works together to provide coordinated 
93.6 	higher learning opportunities for teachers.
93.7 		Subd. 2.Establishment. Lakes Country Service Cooperative, in consultation with 
93.8 	the Northwest Service Cooperative, may develop a continuing education program to allow 
93.9 	eligible teachers to attain the requisite graduate credits necessary to be qualified to teach 
93.10 	secondary school courses for postsecondary credit.
93.11 		Subd. 3.Curriculum development. Minnesota State University-Moorhead may 
93.12 	develop an online education curriculum to allow eligible secondary school teachers to 
93.13 	attain graduate credit at a reduced credit rate.
93.14 		Subd. 4.Funding for course development; scholarships; stipends. Lakes 
93.15 	Country Service Cooperative, in consultation with the other members of the Northwest 
93.16 	Regional Partnership, shall:
93.17 	(1) provide funding for course development for up to 18 credits in applicable 
93.18 	postsecondary subject areas;
93.19 	(2) provide scholarships for eligible teachers to enroll in the continuing education 
93.20 	program; and
93.21 	(3) develop criteria for awarding educator stipends on a per-credit basis to 
93.22 	incentivize participation in the continuing education program.
93.23 		Subd. 5.Participant eligibility. Participation in the continuing education program 
93.24 	is reserved for teachers of secondary school courses for postsecondary credit. Priority 
93.25 	must be given to teachers employed by a school district that is a member of the Lakes 
93.26 	Country Service Cooperative or Northwest Service Cooperative. Teachers employed 
93.27 	by a school district that is not a member of the Lakes Country Service Cooperative or 
93.28 	Northwest Service Cooperative may participate in the continuing education program as 
93.29 	space allows. A teacher participating in this program is ineligible to participate in other 
93.30 	concurrent enrollment teacher training grant programs.
93.31 		Subd. 6.Private funding. The partnership may receive private resources to 
93.32 	supplement the available public money. All money received shall be administered by 
93.33 	the Lakes Country Service Cooperative.
93.34 		Subd. 7.Report required. Northwest Regional Partnership must submit an annual 
93.35 	report by January 15 of each year on the progress of its activities to the legislature, 
93.36 	commissioner of education, and Board of Trustees of the Minnesota State Colleges and 
94.1 	Universities. The annual report shall contain a financial report for the preceding year. The 
94.2 	first report is due no later than January 15, 2018.

94.3 	EFFECTIVE DATE. This section is effective July 1, 2016.

94.4 	Sec. 70. GROW YOUR OWN TEACHER RESIDENCY PILOT PROGRAM.
 94.5 	(a) For fiscal years 2017, 2018, and 2019 only, a nonconventional teacher residency 
94.6 	pilot program under Minnesota Statutes, section 122A.09, subdivision 10, paragraph (a), 
94.7 	is established to provide tuition scholarships or stipends to enable education or teaching 
94.8 	assistants or other nonlicensed district employees who hold a bachelor's degree from an 
94.9 	accredited college or university and who seek an elementary education license or a license 
94.10 	in a subject area for which a shortage exists under Minnesota Statutes, section 127A.05, 
94.11 	subdivision 6, to participate in a Board of Teaching-approved nonconventional teacher 
94.12 	residency program under this section.
94.13 	(b) School districts or charter schools not participating under paragraph (a) may 
94.14 	use funds under this section to pay for tuition scholarships or stipends on behalf of 
94.15 	paraprofessionals employed in the school or district who are enrolled in a Board of 
94.16 	Teaching-approved teacher preparation program and who are making satisfactory progress 
94.17 	toward attaining teacher licensure.
94.18 	(c) The commissioner of education and the commissioner of the Office of Higher 
94.19 	Education must evaluate the outcomes and efficacy of the program and, by February 1, 
94.20 	2017, submit written program recommendations to the committees of the legislature with 
94.21 	jurisdiction over kindergarten through grade 12 education and higher education, including 
94.22 	how to continue and expand the program throughout Minnesota.

94.23 	Sec. 71. PILOT PROJECT TO HELP STRUGGLING STUDENTS READ AT 
94.24 	GRADE LEVEL.
 94.25 	(a) A pilot project for fiscal year 2017 is established to help struggling, 
94.26 	underperforming students in grades 3 through 5 read at grade level and close the academic 
94.27 	achievement gap. Under this pilot project, the commissioner of education shall make a 
94.28 	grant to a qualified and experienced nonprofit organization to provide three Minnesota 
94.29 	public schools with: a research-based intervention software program demonstrated to 
94.30 	effectively use singing to improve students' reading ability; technical training and staff to 
94.31 	install project software; on-site professional development and instructional monitoring 
94.32 	and support for school staff and students; preproject and postproject online reading 
94.33 	assessments developed by the University of Minnesota; and other project management 
94.34 	services. A participating school must identify a trained supervisor and other school staff 
95.1 	to work with students using the software in the computer lab and coordinate and review 
95.2 	students' weekly lab use.
95.3 	(b) The commissioner, in consultation with the nonprofit organization receiving the 
95.4 	grant, must select three public elementary schools, located in an urban, suburban, and 
95.5 	greater Minnesota school district, respectively, to participate in the project based on:
95.6 	(1) the number and percent of enrolled students in grades 3 through 5 whose 
95.7 	proficiency on the Minnesota Comprehensive Assessment in reading is below grade level 
95.8 	and who are eligible for free or reduced-price lunch;
95.9 	(2) the interest of the school principal, teachers, and other school staff in 
95.10 	participating in the project; and
95.11 	(3) the availability of a computer lab for the project and its software.
95.12 	(c) The nonprofit organization receiving the grant must submit a 
95.13 	commissioner-reviewed report to the committees of the legislature with jurisdiction over 
95.14 	kindergarten through grade 12 education by February 1, 2017, using summary data to 
95.15 	compare and evaluate the reading gains of the third to fifth grade students in the three 
95.16 	schools that participated in the project and third to fifth grade students in schools that did 
95.17 	not participate in the project and recommend whether to continue or expand the project.

95.18 	EFFECTIVE DATE. This section is effective July 1, 2016.

95.19 	Sec. 72. LEGISLATIVE AUDITOR.
 95.20 	The legislative auditor is requested to perform a financial audit of the Perpich Center 
95.21 	for Arts Education in calendar year 2016, and at least every four calendar years thereafter.

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

95.23 	Sec. 73. STATEWIDE SCHOOL TEACHER AND ADMINISTRATOR JOB 
95.24 	BOARD.
 95.25 	For fiscal years 2017, 2018, and 2019 only, the Board of Teaching must contract for 
95.26 	an electronic statewide school teacher and administrator job board. The job board must 
95.27 	allow school districts to post job openings for prekindergarten through grade 12 teaching 
95.28 	and administrative positions.

95.29 	EFFECTIVE DATE. This section is effective July 1, 2016.

95.30 	Sec. 74. CERTIFICATION INCENTIVE REVENUE.
 96.1 		Subdivision 1.Qualifying certificates. As soon as practicable, the commissioner 
96.2 	of education, in consultation with the Governor's Workforce Development Council 
96.3 	established under Minnesota Statutes, section 116L.665, and the P-20 education 
96.4 	partnership operating under Minnesota Statutes, section 127A.70, must establish the list of 
96.5 	qualifying career and technical certificates and post the names of those certificates on the 
96.6 	Department of Education's Web site. The certificates must be in fields where occupational 
96.7 	opportunities exist.
96.8 		Subd. 2.School district participation. (a) A school board may adopt a policy 
96.9 	authorizing its students in grades 9 through 12, including its students enrolled in 
96.10 	postsecondary enrollment options courses under Minnesota Statutes, section 124D.09, the 
96.11 	opportunity to complete a qualifying certificate. The certificate may be completed as part 
96.12 	of a regularly scheduled course.
96.13 	(b) A school district may register a student for any assessment necessary to complete 
96.14 	a qualifying certificate and pay any associated registration fees for its students.
96.15 		Subd. 3.Incentive funding. (a) A school district's career and technical certification 
96.16 	aid equals $500 times the district's number of students enrolled during the current fiscal 
96.17 	year who have obtained one or more qualifying certificates during the current fiscal year.
96.18 	(b) The statewide total certificate revenue must not exceed $1,000,000. The 
96.19 	commissioner must proportionately reduce the initial aid provided under this subdivision 
96.20 	so that the statewide aid cap is not exceeded.
96.21 		Subd. 4.Reports to the legislature. (a) The commissioner of education must 
96.22 	report to the committees of the legislature with jurisdiction over kindergarten through 
96.23 	grade 12 education and higher education by February 1, 2017, on the number and types 
96.24 	of certificates authorized for the 2016-2017 school year. The commissioner must also 
96.25 	recommend whether the pilot program should be continued.
96.26 	(b) By February 1, 2018, the commissioner of education must report to the 
96.27 	committees of the legislature with jurisdiction over kindergarten through grade 12 
96.28 	education and higher education about the number and types of certificates earned by 
96.29 	Minnesota's students during the 2016-2017 school year.

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

96.31 	Sec. 75. APPROPRIATIONS.
 97.1 		Subdivision 1.Department of Education. The sums indicated in this section 
97.2 	are appropriated from the general fund to the Department of Education for the fiscal 
97.3 	year designated.
97.4 		Subd. 2.Staff development grants for cooperative units. For payment of staff 
97.5 	development grants to intermediate school districts and other cooperative units providing 
97.6 	instruction to students in federal instructional settings of level 4 or higher:

97.7		$
	6,000,000
	.....
	2017
	
97.8 	This is a onetime appropriation. This appropriation is available until June 30, 
97.9 	2019. To the extent practicable, this appropriation should fund staff development grants 
97.10 	for intermediate school districts and other cooperative units for fiscal years 2017, 2018, 
97.11 	and 2019.
97.12 		Subd. 3.Northwest Regional Partnership concurrent enrollment program. For a 
97.13 	grant to the Lakes Country Service Cooperative to operate a continuing education program:

97.14		$
	3,000,000
	.....
	2017
	
97.15 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
97.16 		Subd. 4.Grow Your Own tuition scholarships and stipends. For a school district 
97.17 	to provide tuition scholarships and stipends to eligible employees under the Grow Your 
97.18 	Own teacher residency pilot program:

97.19		$
	1,500,000
	.....
	2017
	
97.20 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
97.21 		Subd. 5.Sanneh Foundation. For a grant to the Sanneh Foundation:

97.22		$
	1,500,000
	.....
	2017
	
97.23 	Funds appropriated in this section are to provide all-day, in-school, and after-school 
97.24 	academic and behavioral interventions for low-performing and chronically absent students 
97.25 	with a focus on low-income students and students of color throughout the school year and 
97.26 	during the summer to decrease absenteeism, encourage school engagement, and improve 
97.27 	grades and graduation rates. Funds appropriated in this section may be used to hire and 
97.28 	train staff in areas of youth mentorship, behavior support, and academic tutoring in group 
97.29 	and individual settings and to promote pathways for teachers of color.
97.30 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
97.31 		Subd. 6.Western Minnesota mobile manufacturing lab. For a transfer to the 
97.32 	Pine to Prairie Cooperative Center:

98.1		$
	900,000
	.....
	2017
	
98.2 	The funds in this subdivision must be used to establish a western Minnesota mobile 
98.3 	labs program, including manufacturing and welding labs to create interest in these careers 
98.4 	for secondary students. The program must be operated by Pine to Prairie Cooperative 
98.5 	Center in collaboration with Northland Community and Technical College, Lakes Country 
98.6 	Service Cooperative, and Minnesota State Community and Technical College.
98.7 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
98.8 		Subd. 7.Music pilot project appropriation. For a grant to a qualified nonprofit 
98.9 	organization to provide three Minnesota public elementary schools with a research-based 
98.10 	intervention software program that effectively uses singing to improve students' reading 
98.11 	ability:

98.12		$
	100,000
	.....
	2017
	
98.13 	This is a onetime appropriation.
98.14 		Subd. 8.School crisis response teams. For school crisis response teams under 
98.15 	Minnesota Statutes, section 119A.035:

98.16		$
	100,000
	.....
	2017
	
98.17 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
98.18 		Subd. 9.Positive Behavioral Interventions and Supports (PBIS). For 
98.19 	implementation of schoolwide Positive Behavioral Interventions and Supports (PBIS) in 
98.20 	schools and districts throughout Minnesota to reduce the use of restrictive procedures and 
98.21 	increase use of positive practices:

98.22		$
	2,750,000
	.....
	2017
	
98.23 	This is a onetime appropriation.
98.24 		Subd. 10.Girls in Action grant. For a grant to the Girls in Action program to 
98.25 	enable Girls in Action to continue to provide and to expand Twin Cities metropolitan area 
98.26 	school and community-based programs that encourage and support low-income girls, 
98.27 	including low-income girls of color, to graduate from high school on time, complete a 
98.28 	postsecondary preparation program, become community leaders, and participate in service 
98.29 	learning opportunities in their communities. Girls in Action must expend $500,000 of this 
98.30 	appropriation for community-based programs located in the Twin Cities metropolitan area:

98.31		$
	1,500,000
	.....
	2017
	
98.32 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
99.1 		Subd. 11.Concurrent enrollment teacher training grants. For concurrent 
99.2 	enrollment teacher training grants under Minnesota Statutes, section 124D.091, 
99.3 	subdivision 4:

99.4		$
	750,000
	.....
	2017
	
99.5 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
99.6 		Subd. 12.Minnesota Council on Economic Education. For a grant to the 
99.7 	Minnesota Council on Economic Education to provide staff development to teachers 
99.8 	for implementing the state graduation standards in learning areas relating to economic 
99.9 	education:

99.10		$
	250,000
	.....
	2017
	
99.11 	The commissioner, in consultation with the council, shall develop expectations for 
99.12 	staff development outcomes, eligibility criteria for participants, an evaluation procedure, 
99.13 	and guidelines for direct and in-kind contributions by the council.
99.14 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
99.15 		Subd. 13.Certificate incentive funding. For the certificate incentive program:

99.16		$
	1,000,000
	.....
	2017
	
99.17 	This is a onetime appropriation. This appropriation is available until June 30, 2019.
99.18 		Subd. 14.Southwest Minnesota State University special education teacher 
99.19 	education program. The following sums are appropriated in the fiscal years designated 
99.20 	from the general fund to the commissioner of education for the Southwest Minnesota State 
99.21 	University special education teacher education program to support special education 
99.22 	paraprofessionals working toward licensure in an online program:

99.23		$
	385,000
	.....
	2017
	
99.24 	The base for this program in fiscal year 2018 is $0.

99.25 	Sec. 76. APPROPRIATION; JOB BOARD.
 99.26 	$239,000 in fiscal year 2017 is appropriated from the general fund to the Board of 
99.27 	Teaching for an electronic statewide job board. The board may expend $79,000 of this 
99.28 	appropriation in fiscal year 2017, and the remaining unexpended funds are available 
99.29 	until June 30, 2019.

99.30 	Sec. 77. APPROPRIATION; FUTURE TEACHERS GRANT PROGRAM.
 100.1 	$4,500,000 in fiscal year 2017 is appropriated from the general fund to the 
100.2 	commissioner of the Office of Higher Education for the Minnesota future teachers grant 
100.3 	program. This is a onetime appropriation. This appropriation is available until June 30, 
100.4 	2019.

100.5 	Sec. 78. APPROPRIATION; STUDENT TEACHERS IN SHORTAGE AREAS; 
100.6 	GRANTS.
 100.7 	$1,000,000 in fiscal year 2017 is appropriated from the general fund to the 
100.8 	commissioner of the Office of Higher Education for grants to student teachers in shortage 
100.9 	areas. This is a onetime appropriation. This appropriation is available until June 30, 2019.

100.10 	Sec. 79. APPROPRIATION; SCHOOL-LINKED MENTAL HEALTH 
100.11 	SERVICES.
 100.12 	$5,000,000 in fiscal year 2017 is appropriated from the general fund to the 
100.13 	commissioner of human services for children's mental health grants under Minnesota 
100.14 	Statutes, section 245.4889, subdivision 1, paragraph (b), clause (8), for current grantees to 
100.15 	expand access to school-linked mental health services and to provide training to grantees 
100.16 	on the use of evidence-based practices. This appropriation is available until June 30, 2019. 
100.17 	To the extent practicable, the commissioner of human services is encouraged to expend 
100.18 	the fiscal year 2017 appropriation equally over fiscal years 2017, 2018, and 2019.

100.19 	Sec. 80. REVISOR'S INSTRUCTION.
 100.20 	In the next and subsequent editions of Minnesota Statutes, the revisor of statutes 
100.21 	shall renumber the section on innovative delivery of career and technical education 
100.22 	programs as Minnesota Statutes, section 124D.339.

100.23 	Sec. 81.  REPEALER.
 100.24 	(a) Minnesota Statutes 2014, sections 120B.299, subdivision 5; 122A.413, 
100.25 	subdivision 3; and 122A.74, are repealed.
100.26 	(b) Minnesota Statutes 2015 Supplement, section 122A.413, subdivisions 1 and 
100.27 	2, are repealed.
100.28 	(c) Minnesota Statutes 2014, sections 122A.40, subdivision 11; and 122A.41, 
100.29 	subdivision 14, are repealed effective July 1, 2017.
100.30 	(d) Minnesota Rules, part 3535.0110, subparts 6, 7, and 8, are repealed.

100.31 	EFFECTIVE DATE. Paragraph (d) is effective the day following final enactment.

101.1 	ARTICLE 9
101.2 	CHARTER SCHOOLS

101.3 	Section 1. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 4, is 
101.4 	amended to read:
101.5 		Subd. 4.Application content. (a) An applicant must include in its application to 
101.6 	the commissioner to be an approved authorizer at least the following:
101.7 	(1) how chartering schools is a way for the organization to carry out its mission;
101.8 	(2) a description of the capacity of the organization to serve as an authorizer, 
101.9 	including the personnel who will perform the authorizing duties, their qualifications, the 
101.10 	amount of time they will be assigned to this responsibility, and the financial resources 
101.11 	allocated by the organization to this responsibility;
101.12 	(2) a description of the capacity of the organization to serve as an authorizer, 
101.13 	including the positions allocated to authorizing duties, the qualifications for those 
101.14 	positions, the full-time equivalencies of those positions, and the financial resources 
101.15 	available to fund the positions. The commissioner may use information about specific 
101.16 	individuals expected to perform the authorizing duties in deciding whether to approve 
101.17 	or disapprove an organization's application to be approved as an authorizer. The 
101.18 	commissioner may not use information about specific individuals performing the 
101.19 	authorizing duties in reviewing an approved authorizer's performance;
101.20 	(3) a description of the application and review process the authorizer will use to 
101.21 	make decisions regarding the granting of charters;
101.22 	(4) a description of the type of contract it will arrange with the schools it charters 
101.23 	that meets the provisions of section 124E.10;
101.24 	(5) the process to be used for providing ongoing oversight of the school consistent 
101.25 	with the contract expectations specified in clause (4) that assures that the schools chartered 
101.26 	are complying with both the provisions of applicable law and rules, and with the contract;
101.27 	(6) a description of the criteria and process the authorizer will use to grant expanded 
101.28 	applications under section 124E.06, subdivision 5;
101.29 	(7) the process for making decisions regarding the renewal or termination of 
101.30 	the school's charter based on evidence that demonstrates the academic, organizational, 
101.31 	and financial competency of the school, including its success in increasing student 
101.32 	achievement and meeting the goals of the charter school agreement; and
101.33 	(8) an assurance specifying that the organization is committed to serving as an 
101.34 	authorizer for the full five-year term.
102.1 	(b) Notwithstanding paragraph (a), an authorizer that is a school district may satisfy 
102.2 	the requirements of paragraph (a), clauses (1) and (2), and any requirement governing a 
102.3 	conflict of interest between an authorizer and its charter schools or ongoing evaluation and 
102.4 	continuing education of an administrator or other professional support staff by submitting 
102.5 	to the commissioner a written promise to comply with the requirements.

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

102.7 	Sec. 2. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 5, is 
102.8 	amended to read:
102.9 		Subd. 5.Review by commissioner. (a) The commissioner shall review an 
102.10 	authorizer's performance every five years in a manner and form determined by the 
102.11 	commissioner, subject to paragraphs (b) and (c), and may review an authorizer's 
102.12 	performance more frequently at the commissioner's own initiative or at the request of a 
102.13 	charter school operator, charter school board member, or other interested party. The 
102.14 	commissioner, after completing the review, shall transmit a report with findings to the 
102.15 	authorizer.
102.16 	(b) Consistent with this subdivision, the commissioner must:
102.17 	(1) use criteria appropriate to the authorizer and the schools it charters to review 
102.18 	the authorizer's performance; and
102.19 	(2) consult with authorizers, charter school operators, and other charter school 
102.20 	stakeholders in developing review criteria under this paragraph.
102.21 	(c) The commissioner's form must use existing department data on the authorizer to 
102.22 	minimize duplicate reporting to the extent practicable. When reviewing an authorizer's 
102.23 	performance under this subdivision, the commissioner must not:
102.24 	(1) fail to credit;
102.25 	(2) withhold points; or
102.26 	(3) otherwise penalize an authorizer for failing to charter additional schools or for 
102.27 	the absence of complaints against the authorizer's current portfolio of charter schools.

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

102.29 	Sec. 3. Minnesota Statutes 2015 Supplement, section 124E.05, subdivision 7, is 
102.30 	amended to read:
102.31 		Subd. 7.Withdrawal. If the governing board of an approved authorizer votes to 
102.32 	withdraw as an approved authorizer for a reason unrelated to any cause under section 
102.33 	124E.10, subdivision 4, the authorizer must notify all its chartered schools and the 
103.1 	commissioner in writing by July 15 of its intent to withdraw as an authorizer on June 30 
103.2 	in the next calendar year, regardless of when the authorizer's five-year term of approval 
103.3 	ends. The commissioner may approve the transfer of a charter school to a new authorizer 
103.4 	under this subdivision after the new authorizer submits an affidavit to the commissioner
103.5 	section 124E.10, subdivision 5.

103.6 	Sec. 4. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 1, is 
103.7 	amended to read:
103.8 		Subdivision 1.Contents. (a) The authorization for a charter school must be in the 
103.9 	form of a written contract signed by the authorizer and the board of directors of the charter 
103.10 	school. The contract must be completed within 45 business days of the commissioner's 
103.11 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
103.12 	copy of the signed charter contract within ten business days of its execution. The contract 
103.13 	for a charter school must be in writing and contain at least the following:
103.14 	(1) a declaration that the charter school will carry out the primary purpose in section 
103.15 	124E.01, subdivision 1, and how the school will report its implementation of the primary 
103.16 	purpose;
103.17 	(2) a declaration of the additional purpose or purposes in section 124E.01, 
103.18 	subdivision 1, that the school intends to carry out and how the school will report its 
103.19 	implementation of those purposes;
103.20 	(3) a description of the school program and the specific academic and nonacademic 
103.21 	outcomes that pupils must achieve;
103.22 	(4) a statement of admission policies and procedures;
103.23 	(5) a governance, management, and administration plan for the school;
103.24 	(6) signed agreements from charter school board members to comply with all 
103.25 	federal and state laws governing organizational, programmatic, and financial requirements 
103.26 	applicable to charter schools;
103.27 	(7) the criteria, processes, and procedures that the authorizer will use to monitor and 
103.28 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
103.29 	3, paragraphs (a) and (b);
103.30 	(8) for contract renewal, the formal written performance evaluation of the school 
103.31 	that is a prerequisite for reviewing a charter contract under subdivision 3;
103.32 	(9) types and amounts of insurance liability coverage to be obtained by the charter 
103.33 	school, consistent with section 124E.03, subdivision 2, paragraph (d);
103.34 	(10) consistent with section 124E.09, paragraph (d), a provision to indemnify and 
103.35 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
104.1 	or liability arising from any operation of the charter school, and the commissioner and 
104.2 	department officers, agents, and employees notwithstanding section 3.736;
104.3 	(11) the term of the initial contract, which may be up to five years plus an additional 
104.4 	a preoperational planning year period, and up to five years for a renewed contract or a 
104.5 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
104.6 	academic, financial, and operational performance;
104.7 	(12) how the board of directors or the operators of the charter school will provide 
104.8 	special instruction and services for children with a disability under sections 125A.03 
104.9 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
104.10 	charter school will operate to provide the special instruction and services to children 
104.11 	with a disability;
104.12 	(13) the specific conditions for contract renewal that identify performance of all 
104.13 	students under the primary purpose of section 124E.01, subdivision 1, as the most 
104.14 	important factor in determining contract renewal;
104.15 	(14) the additional purposes under section 124E.01, subdivision 1, and related 
104.16 	performance obligations under clause (7) contained in the charter contract as additional 
104.17 	factors in determining contract renewal; and
104.18 	(15) the plan for an orderly closing of the school under chapter 317A, whether 
104.19 	the closure is a termination for cause, a voluntary termination, or a nonrenewal of the 
104.20 	contract, that includes establishing the responsibilities of the school board of directors 
104.21 	and the authorizer and notifying the commissioner, authorizer, school district in which the 
104.22 	charter school is located, and parents of enrolled students about the closure, information 
104.23 	and assistance sufficient to enable the student to re-enroll in another school, the transfer 
104.24 	of student records under section 124E.03, subdivision 5, paragraph (b), and procedures 
104.25 	for closing financial operations.
104.26 	(b) A charter school must design its programs to at least meet the outcomes adopted 
104.27 	by the commissioner for public school students, including world's best workforce goals 
104.28 	under section 120B.11, subdivision 1. In the absence of the commissioner's requirements, 
104.29 	the school must meet the outcomes contained in the contract with the authorizer. The 
104.30 	achievement levels of the outcomes contained in the contract may exceed the achievement 
104.31 	levels of any outcomes adopted by the commissioner for public school students.

104.32 	Sec. 5. Minnesota Statutes 2015 Supplement, section 124E.10, subdivision 5, is 
104.33 	amended to read:
104.34 		Subd. 5.Mutual nonrenewal. If the authorizer and the charter school board of 
104.35 	directors mutually agree not to renew the contract, or if the governing board of an approved 
105.1 	authorizer votes to withdraw as an approved authorizer for a reason unrelated to any cause 
105.2 	under subdivision 4, a change in authorizers is allowed. The authorizer and the school 
105.3 	board must jointly submit a written and signed letter of their intent to the commissioner to 
105.4 	mutually not renew the contract. The authorizer that is a party to the existing contract must 
105.5 	inform the proposed authorizer about the fiscal, operational, and student performance status 
105.6 	of the school, as well as any including unmet contract outcomes and other outstanding 
105.7 	contractual obligations that exist. The charter contract between the proposed authorizer 
105.8 	and the school must identify and provide a plan to address any outstanding obligations from 
105.9 	the previous contract. The proposed contract must be submitted at least 105 business days 
105.10 	before the end of the existing charter contract. The commissioner shall have 30 business 
105.11 	days to review and make a determination. The proposed authorizer and the school shall 
105.12 	have 15 business days to respond to the determination and address any issues identified by 
105.13 	the commissioner. A final determination by the commissioner shall be made no later than 
105.14 	45 business days before the end of the current charter contract. If no change in authorizer 
105.15 	is approved, the school and the current authorizer may withdraw their letter of nonrenewal 
105.16 	and enter into a new contract. If the transfer of authorizers is not approved and the current 
105.17 	authorizer and the school do not withdraw their letter and enter into a new contract, the 
105.18 	school must be dissolved according to applicable law and the terms of the contract.

105.19 	Sec. 6. Minnesota Statutes 2015 Supplement, section 124E.16, subdivision 2, is 
105.20 	amended to read:
105.21 		Subd. 2.Annual public reports. (a) A charter school must publish an annual report 
105.22 	approved by the board of directors. The annual report must at least include information 
105.23 	on school enrollment, student attrition, governance and management, staffing, finances, 
105.24 	academic performance, innovative practices and implementation, and future plans. A 
105.25 	charter school may combine this report with the reporting required under section 120B.11. 
105.26 	A charter school must post the annual report on the school's official Web site. A charter 
105.27 	school must also distribute the annual report by publication, mail, or electronic means to 
105.28 	its authorizer, school employees, and parents and legal guardians of students enrolled in 
105.29 	the charter school. The reports are public data under chapter 13.
105.30 	(b) The commissioner shall establish specifications for An authorizer must submit an 
105.31 	authorizer's annual public report that in a manner specified by the commissioner by January 
105.32 	15 for the previous school year ending June 30 that shall at least include key indicators of 
105.33 	school academic, operational, and financial performance. The report is part of the system 
105.34 	to evaluate authorizer performance under section 124E.05, subdivision 5. The report shall 
105.35 	at least include key indicators of school academic, operational, and financial performance.

106.1 	Sec. 7. Minnesota Statutes 2014, section 127A.45, subdivision 6a, is amended to read:
106.2 		Subd. 6a.Cash flow adjustment. The board of directors of any charter school 
106.3 	serving fewer than 200 students where the percent of students eligible for special 
106.4 	education services equals at least 90 percent of the charter school's total enrollment 
106.5 	eligible special education charter school under section 124E.21, subdivision 2, may 
106.6 	request that the commissioner of education accelerate the school's cash flow under this 
106.7 	section. The commissioner must approve a properly submitted request within 30 days of 
106.8 	its receipt. The commissioner must accelerate the school's regular special education aid 
106.9 	payments according to the schedule in the school's request and modify the payments to the 
106.10 	school under subdivision 3 accordingly. A school must not receive current payments of 
106.11 	regular special education aid exceeding 90 percent of its estimated aid entitlement for the 
106.12 	fiscal year. The commissioner must delay the special education aid payments to all other 
106.13 	school districts and charter schools in proportion to each district or charter school's total 
106.14 	share of regular special education aid such that the overall aid payment savings from the 
106.15 	aid payment shift remains unchanged for any fiscal year.

106.16 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
106.17 	later.

106.18 	Sec. 8. Laws 2015, First Special Session chapter 3, article 4, section 4, the effective 
106.19 	date, is amended to read:

106.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
106.21 	except the provision under paragraph (g) allowing prekindergarten deaf or hard-of-hearing 
106.22 	pupils to enroll in a charter school is effective only if the commissioner of education 
106.23 	determines there is no added cost attributable to the pupil for the 2016-2017 school year 
106.24 	and later.

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

106.26 	ARTICLE 10
106.27 	SPECIAL EDUCATION

106.28 	Section 1. Minnesota Statutes 2015 Supplement, section 120B.125, is amended to read:
106.29 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
106.30 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; PERSONAL 
106.31 	LEARNING PLANS.
107.1 	(a) Consistent with sections 120B.13, 120B.131, 120B.132, 120B.14, 120B.15, 
107.2 	120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, school 
107.3 	districts, beginning in the 2013-2014 school year, must assist all students by no later 
107.4 	than grade 9 to explore their educational, college, and career interests, aptitudes, and 
107.5 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
107.6 	education or employment. All students' plans must:
107.7 	(1) provide a comprehensive plan to prepare for and complete a career and college 
107.8 	ready curriculum by meeting state and local academic standards and developing career and 
107.9 	employment-related skills such as team work, collaboration, creativity, communication, 
107.10 	critical thinking, and good work habits;
107.11 	(2) emphasize academic rigor and high expectations;
107.12 	(3) help students identify interests, aptitudes, aspirations, and personal learning 
107.13 	styles that may affect their career and college ready goals and postsecondary education 
107.14 	and employment choices;
107.15 	(4) set appropriate career and college ready goals with timelines that identify 
107.16 	effective means for achieving those goals;
107.17 	(5) help students access education and career options;
107.18 	(6) integrate strong academic content into career-focused courses and applied and 
107.19 	experiential learning opportunities and integrate relevant career-focused courses and 
107.20 	applied and experiential learning opportunities into strong academic content;
107.21 	(7) help identify and access appropriate counseling and other supports and assistance 
107.22 	that enable students to complete required coursework, prepare for postsecondary education 
107.23 	and careers, and obtain information about postsecondary education costs and eligibility 
107.24 	for financial aid and scholarship;
107.25 	(8) help identify collaborative partnerships among prekindergarten through grade 
107.26 	12 schools, postsecondary institutions, economic development agencies, and local and 
107.27 	regional employers that support students' transition to postsecondary education and 
107.28 	employment and provide students with applied and experiential learning opportunities; and
107.29 	(9) be reviewed and revised at least annually by the student, the student's parent or 
107.30 	guardian, and the school or district to ensure that the student's course-taking schedule keeps 
107.31 	the student making adequate progress to meet state and local academic standards and high 
107.32 	school graduation requirements and with a reasonable chance to succeed with employment 
107.33 	or postsecondary education without the need to first complete remedial course work.
107.34 	(b) A school district may develop grade-level curricula or provide instruction that 
107.35 	introduces students to various careers, but must not require any curriculum, instruction, 
107.36 	or employment-related activity that obligates an elementary or secondary student to 
108.1 	involuntarily select or pursue a career, career interest, employment goals, or related job 
108.2 	training.
108.3 	(c) Educators must possess the knowledge and skills to effectively teach all English 
108.4 	learners in their classrooms. School districts must provide appropriate curriculum, 
108.5 	targeted materials, professional development opportunities for educators, and sufficient 
108.6 	resources to enable English learners to become career and college ready.
108.7 	(d) When assisting students in developing a plan for a smooth and successful 
108.8 	transition to postsecondary education and employment, districts must recognize the unique 
108.9 	possibilities of each student and ensure that the contents of each student's plan reflect the 
108.10 	student's unique talents, skills, and abilities as the student grows, develops, and learns.
108.11 	(e) If a student with a disability has an individualized education program (IEP) or 
108.12 	standardized written plan that meets the plan components of this section, the IEP satisfies 
108.13 	the requirement and no additional transition plan is needed.

108.14 	Sec. 2. Minnesota Statutes 2014, section 122A.31, subdivision 3, is amended to read:
108.15 		Subd. 3.Qualified interpreters. The Department of Education and the resource 
108.16 	center: state specialist for deaf and hard of hearing hard-of-hearing shall work with 
108.17 	existing interpreter/transliterator training programs, other training/educational institutions, 
108.18 	and the regional service centers to ensure that ongoing staff development training for 
108.19 	educational interpreters/transliterators is provided throughout the state.

108.20 	Sec. 3. Minnesota Statutes 2014, section 124D.15, subdivision 15, is amended to read:
108.21 		Subd. 15.Eligibility. A child is eligible to participate in a school readiness program 
108.22 	if the child:
108.23 	(1) is at least three years old on September 1;
108.24 	(2) has completed health and developmental screening within 90 days of program 
108.25 	enrollment under sections 121A.16 to 121A.19; and
108.26 	(3) has one or more of the following risk factors:
108.27 	(i) qualifies for free or reduced-price lunch;
108.28 	(ii) is an English learner;
108.29 	(iii) is homeless;
108.30 	(iv) has an individualized education program (IEP) or an individual interagency 
108.31 	intervention plan (IIIP) standardized written plan;
108.32 	(v) is identified, through health and developmental screenings under sections 
108.33 	121A.16 to 121A.19, with a potential risk factor that may influence learning; or
108.34 	(vi) is defined as at-risk at risk by the school district.

109.1 	Sec. 4. Minnesota Statutes 2015 Supplement, section 125A.08, is amended to read:
109.2 	125A.08 INDIVIDUALIZED EDUCATION PROGRAMS.
109.3 	(a) At the beginning of each school year, each school district shall have in effect, for 
109.4 	each child with a disability, an individualized education program.
109.5 	(b) As defined in this section, every district must ensure the following:
109.6 	(1) all students with disabilities are provided the special instruction and services 
109.7 	which are appropriate to their needs. Where the individualized education program team 
109.8 	has determined appropriate goals and objectives based on the student's needs, including 
109.9 	the extent to which the student can be included in the least restrictive environment, 
109.10 	and where there are essentially equivalent and effective instruction, related services, or 
109.11 	assistive technology devices available to meet the student's needs, cost to the district may 
109.12 	be among the factors considered by the team in choosing how to provide the appropriate 
109.13 	services, instruction, or devices that are to be made part of the student's individualized 
109.14 	education program. The individualized education program team shall consider and 
109.15 	may authorize services covered by medical assistance according to section 256B.0625, 
109.16 	subdivision 26. The student's needs and the special education instruction and services to 
109.17 	be provided must be agreed upon through the development of an individualized education 
109.18 	program. The program must address the student's need to develop skills to live and work 
109.19 	as independently as possible within the community. The individualized education program 
109.20 	team must consider positive behavioral interventions, strategies, and supports that address 
109.21 	behavior needs for children. During grade 9, the program must address the student's 
109.22 	needs for transition from secondary services to postsecondary education and training, 
109.23 	employment, community participation, recreation, and leisure and home living. In 
109.24 	developing the program, districts must inform parents of the full range of transitional goals 
109.25 	and related services that should be considered. The program must include a statement of 
109.26 	the needed transition services, including a statement of the interagency responsibilities 
109.27 	or linkages or both before secondary services are concluded. If the IEP meets the plan 
109.28 	components in section 120B.125, the IEP satisfies the requirement and no additional 
109.29 	transition plan is needed;
109.30 	(2) children with a disability under age five and their families are provided special 
109.31 	instruction and services appropriate to the child's level of functioning and needs;
109.32 	(3) children with a disability and their parents or guardians are guaranteed procedural 
109.33 	safeguards and the right to participate in decisions involving identification, assessment 
109.34 	including assistive technology assessment, and educational placement of children with a 
109.35 	disability;
110.1 	(4) eligibility and needs of children with a disability are determined by an initial 
110.2 	evaluation or reevaluation, which may be completed using existing data under United 
110.3 	States Code, title 20, section 33, et seq.;
110.4 	(5) to the maximum extent appropriate, children with a disability, including those 
110.5 	in public or private institutions or other care facilities, are educated with children who 
110.6 	are not disabled, and that special classes, separate schooling, or other removal of children 
110.7 	with a disability from the regular educational environment occurs only when and to the 
110.8 	extent that the nature or severity of the disability is such that education in regular classes 
110.9 	with the use of supplementary services cannot be achieved satisfactorily;
110.10 	(6) in accordance with recognized professional standards, testing and evaluation 
110.11 	materials, and procedures used for the purposes of classification and placement of children 
110.12 	with a disability are selected and administered so as not to be racially or culturally 
110.13 	discriminatory; and
110.14 	(7) the rights of the child are protected when the parents or guardians are not known 
110.15 	or not available, or the child is a ward of the state.
110.16 	(c) For all paraprofessionals employed to work in programs whose role in part is 
110.17 	to provide direct support to students with disabilities, the school board in each district 
110.18 	shall ensure that:
110.19 	(1) before or beginning at the time of employment, each paraprofessional must 
110.20 	develop sufficient knowledge and skills in emergency procedures, building orientation, 
110.21 	roles and responsibilities, confidentiality, vulnerability, and reportability, among other 
110.22 	things, to begin meeting the needs, especially disability-specific and behavioral needs, of 
110.23 	the students with whom the paraprofessional works;
110.24 	(2) annual training opportunities are required to enable the paraprofessional to 
110.25 	continue to further develop the knowledge and skills that are specific to the students with 
110.26 	whom the paraprofessional works, including understanding disabilities, the unique and 
110.27 	individual needs of each student according to the student's disability and how the disability 
110.28 	affects the student's education and behavior, following lesson plans, and implementing 
110.29 	follow-up instructional procedures and activities; and
110.30 	(3) a districtwide process obligates each paraprofessional to work under the ongoing 
110.31 	direction of a licensed teacher and, where appropriate and possible, the supervision of a 
110.32 	school nurse.

110.33 	Sec. 5. Minnesota Statutes 2015 Supplement, section 125A.083, is amended to read:
110.34 	125A.083 STUDENT INFORMATION SYSTEMS; TRANSFERRING 
110.35 	RECORDS.
111.1 	(a) To efficiently and effectively meet federal and state compliance and 
111.2 	accountability requirements using an online case management reporting system, beginning 
111.3 	July 1, 2018, a school districts district may contract only for a student information system 
111.4 	that is Schools Interoperability Framework compliant and compatible with the.
111.5 	(b) Beginning on July 1 of the fiscal year following the year that the commissioner 
111.6 	of education certifies to the legislature under paragraph (c) that a compatible compliant 
111.7 	system exists, a school district must use an online system for compliance reporting 
111.8 	under section 125A.085beginning in the 2018-2019 school year and later. A district's 
111.9 	information system under this section must facilitate the seamless transfer of student 
111.10 	records for a student with disabilities who transfers between school districts, including 
111.11 	records containing the student's evaluation report, service plan, and other due process 
111.12 	forms and information, regardless of what information system any one district uses.
111.13 	(c) As a part of the annual report required under section 125A.085, paragraph (f), the 
111.14 	commissioner must specify whether a compatible compliant system exists and if so, list 
111.15 	each vendor's systems that meet the criteria in paragraph (b).

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

111.17 	Sec. 6. Minnesota Statutes 2014, section 125A.091, subdivision 11, is amended to read:
111.18 		Subd. 11.Facilitated team meeting. A facilitated team meeting is an IEP, IFSP, or 
111.19 	IIIPmultiagency team meeting led by an impartial state-provided facilitator to promote 
111.20 	effective communication and assist a team in developing an individualized education 
111.21 	program.

111.22 	Sec. 7. Minnesota Statutes 2015 Supplement, section 125A.0942, subdivision 3, 
111.23 	is amended to read:
111.24 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
111.25 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
111.26 	following requirements:
111.27 	(1) physical holding or seclusion is the least intrusive intervention that effectively 
111.28 	responds to the emergency;
111.29 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
111.30 	(3) physical holding or seclusion ends when the threat of harm ends and the staff 
111.31 	determines the child can safely return to the classroom or activity;
111.32 	(4) staff directly observes the child while physical holding or seclusion is being used;
112.1 	(5) each time physical holding or seclusion is used, the staff person who implements 
112.2 	or oversees the physical holding or seclusion documents, as soon as possible after the 
112.3 	incident concludes, the following information:
112.4 	(i) a description of the incident that led to the physical holding or seclusion;
112.5 	(ii) why a less restrictive measure failed or was determined by staff to be 
112.6 	inappropriate or impractical;
112.7 	(iii) the time the physical holding or seclusion began and the time the child was 
112.8 	released; and
112.9 	(iv) a brief record of the child's behavioral and physical status;
112.10 	(6) the room used for seclusion must:
112.11 	(i) be at least six feet by five feet;
112.12 	(ii) be well lit, well ventilated, adequately heated, and clean;
112.13 	(iii) have a window that allows staff to directly observe a child in seclusion;
112.14 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
112.15 	door, and secure ceilings;
112.16 	(v) have doors that open out and are unlocked, locked with keyless locks that 
112.17 	have immediate release mechanisms, or locked with locks that have immediate release 
112.18 	mechanisms connected with a fire and emergency system; and
112.19 	(vi) not contain objects that a child may use to injure the child or others; and
112.20 	(7) before using a room for seclusion, a school must:
112.21 	(i) receive written notice from local authorities that the room and the locking 
112.22 	mechanisms comply with applicable building, fire, and safety codes; and
112.23 	(ii) register the room with the commissioner, who may view that room; and.
112.24 	(8) until August 1, 2015, a school district may use prone restraints with children 
112.25 	age five or older if:
112.26 	(i) the district has provided to the department a list of staff who have had specific 
112.27 	training on the use of prone restraints;
112.28 	(ii) the district provides information on the type of training that was provided and 
112.29 	by whom;
112.30 	(iii) only staff who received specific training use prone restraints;
112.31 	(iv) each incident of the use of prone restraints is reported to the department within 
112.32 	five working days on a form provided by the department; and
112.33 	(v) the district, before using prone restraints, must review any known medical or 
112.34 	psychological limitations that contraindicate the use of prone restraints.
112.35 	The department must collect data on districts' use of prone restraints and publish the 
112.36 	data in a readily accessible format on the department's Web site on a quarterly basis.
113.1 	(b) By February 1, 2015, and annually thereafter, stakeholders may, as necessary, 
113.2 	recommend to the commissioner specific and measurable implementation and outcome 
113.3 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
113.4 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
113.5 	that recommends how to further reduce these procedures and eliminate the use of 
113.6 	prone restraints seclusion. The statewide plan includes the following components: 
113.7 	measurable goals; the resources, training, technical assistance, mental health services, 
113.8 	and collaborative efforts needed to significantly reduce districts' use of prone restraints
113.9 	seclusion; and recommendations to clarify and improve the law governing districts' use 
113.10 	of restrictive procedures. The commissioner must consult with interested stakeholders 
113.11 	when preparing the report, including representatives of advocacy organizations, special 
113.12 	education directors, teachers, paraprofessionals, intermediate school districts, school 
113.13 	boards, day treatment providers, county social services, state human services department 
113.14 	staff, mental health professionals, and autism experts. By June 30Beginning with the 
113.15 	2016-2017 school year, in a form and manner determined by the commissioner, districts 
113.16 	must report data quarterly to the department by January 15, April 15, July 15, and October 
113.17 	15 about individual students who have been secluded. By July 15 each year, districts 
113.18 	must report summary data on their use of restrictive procedures to the department for 
113.19 	the prior school year, July 1 through June 30, in a form and manner determined by the 
113.20 	commissioner. The summary data must include information about the use of restrictive 
113.21 	procedures, including use of reasonable force under section 121A.582.

113.22 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
113.23 	later.

113.24 	Sec. 8. Minnesota Statutes 2014, section 125A.0942, subdivision 4, is amended to read:
113.25 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
113.26 	(1) engaging in conduct prohibited under section 121A.58;
113.27 	(2) requiring a child to assume and maintain a specified physical position, activity, 
113.28 	or posture that induces physical pain;
113.29 	(3) totally or partially restricting a child's senses as punishment;
113.30 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
113.31 	substance, or spray as punishment;
113.32 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
113.33 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
113.34 	except when temporarily removing the equipment or device is needed to prevent injury 
114.1 	to the child or others or serious damage to the equipment or device, in which case the 
114.2 	equipment or device shall be returned to the child as soon as possible;
114.3 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
114.4 	physical abuse under section 626.556;
114.5 	(7) withholding regularly scheduled meals or water;
114.6 	(8) denying access to bathroom facilities; and
114.7 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
114.8 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
114.9 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
114.10 	straddling a child's torso.; and
114.11 	(10) prone restraint.

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

114.13 	Sec. 9. Minnesota Statutes 2015 Supplement, section 125A.11, subdivision 1, is 
114.14 	amended to read:
114.15 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
114.16 	later, when a school district provides special instruction and services for a pupil with 
114.17 	a disability as defined in section 125A.02 outside the district of residence, excluding 
114.18 	a pupil for whom an adjustment to special education aid is calculated according to 
114.19 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
114.20 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
114.21 	special instruction and services to the pupil, including a proportionate amount for special 
114.22 	transportation and unreimbursed building lease and debt service costs for facilities 
114.23 	used primarily for special education, plus (2) the amount of general education revenue, 
114.24 	excluding local optional revenue, plus local optional aid and referendum equalization aid 
114.25 	attributable to that pupil, calculated using the resident district's average general education 
114.26 	revenue and referendum equalization aid per adjusted pupil unit excluding basic skills 
114.27 	revenue, elementary sparsity revenue and secondary sparsity revenue, minus (3) the 
114.28 	amount of special education aid for children with a disability under section 125A.76 
114.29 	received on behalf of that child, minus (4) if the pupil receives special instruction and 
114.30 	services outside the regular classroom for more than 60 percent of the school day, the 
114.31 	amount of general education revenue and referendum equalization aid, excluding portions 
114.32 	attributable to district and school administration, district support services, operations and 
114.33 	maintenance, capital expenditures, and pupil transportation, attributable to that pupil 
114.34 	for the portion of time the pupil receives special instruction and services outside of the 
114.35 	regular classroom, calculated using the resident district's average general education 
115.1 	revenue and referendum equalization aid per adjusted pupil unit excluding basic skills 
115.2 	revenue, elementary sparsity revenue and secondary sparsity revenue and the serving 
115.3 	district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
115.4 	per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a 
115.5 	cooperative unit without a fiscal agent school district, the general education revenue and 
115.6 	referendum equalization aid attributable to a pupil must be calculated using the resident 
115.7 	district's average general education revenue and referendum equalization aid excluding 
115.8 	compensatory revenue, elementary sparsity revenue, and secondary sparsity revenue. 
115.9 	Special education aid paid to the district or cooperative providing special instruction and 
115.10 	services for the pupil must be increased by the amount of the reduction in the aid paid 
115.11 	to the resident district. Amounts paid to cooperatives under this subdivision and section 
115.12 	127A.47, subdivision 7, shall be recognized and reported as revenues and expenditures on 
115.13 	the resident school district's books of account under sections 123B.75 and 123B.76. If 
115.14 	the resident district's special education aid is insufficient to make the full adjustment, the 
115.15 	remaining adjustment shall be made to other state aid due to the district.
115.16 	(b) Notwithstanding paragraph (a), when a charter school receiving special education 
115.17 	aid under section 124E.21, subdivision 3, provides special instruction and services for 
115.18 	a pupil with a disability as defined in section 125A.02, excluding a pupil for whom an 
115.19 	adjustment to special education aid is calculated according to section 127A.46, subdivision 
115.20 	7, paragraphs (b) to (e), special education aid paid to the resident district must be reduced 
115.21 	by an amount equal to that calculated under paragraph (a) as if the charter school received 
115.22 	aid under section 124E.21, subdivision 1. Notwithstanding paragraph (a), special education 
115.23 	aid paid to the charter school providing special instruction and services for the pupil must 
115.24 	not be increased by the amount of the reduction in the aid paid to the resident district.
115.25 	(c) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
115.26 	(b) to (d),:
115.27 	(1) an intermediate district or a special education cooperative may recover 
115.28 	unreimbursed costs of serving pupils with a disability, including building lease, debt 
115.29 	service, and indirect costs necessary for the general operation of the organization, by 
115.30 	billing membership fees and nonmember access fees to the resident district;
115.31 	(2) a charter school where more than 30 percent of enrolled students receive special 
115.32 	education and related services, a site approved under section 125A.515, an intermediate 
115.33 	district, or a special education cooperative, or a school district that served as the applicant 
115.34 	agency for a group of school districts for federal special education aids for fiscal year 2006
115.35 	may apply to the commissioner for authority to charge the resident district an additional 
115.36 	amount to recover any remaining unreimbursed costs of serving pupils with a disability.;
116.1 	(3) the billing under clause (1) or application under clause (2) must include a 
116.2 	description of the costs and the calculations used to determine the unreimbursed portion to 
116.3 	be charged to the resident district. Amounts approved by the commissioner under this 
116.4 	paragraph clause (2) must be included in the tuition billings or aid adjustments under 
116.5 	paragraph (a), or section 127A.47, subdivision 7, paragraphs (b) to (d), as applicable.
116.6 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraph 
116.7 	(b), "general education revenue and referendum equalization aid" means the sum of the 
116.8 	general education revenue according to section 126C.10, subdivision 1, excluding the 
116.9 	local optional levy according to section 126C.10, subdivision 2e, paragraph (c), plus the 
116.10 	referendum equalization aid according to section 126C.17, subdivision 7.

116.11 	Sec. 10. Minnesota Statutes 2015 Supplement, section 125A.21, subdivision 3, is 
116.12 	amended to read:
116.13 		Subd. 3.Use of reimbursements. Of the reimbursements received, districts may
116.14 	School districts must reserve third-party revenue and must spend the reimbursements 
116.15 	received only to:
116.16 	(1) retain an amount sufficient to compensate the district for its administrative costs 
116.17 	of obtaining reimbursements;
116.18 	(2) regularly obtain from education- and health-related entities training and other 
116.19 	appropriate technical assistance designed to improve the district's ability to access 
116.20 	third-party payments for individualized education program or individualized family 
116.21 	service plan health-related services; or
116.22 	(3) reallocate reimbursements for the benefit of students with individualized 
116.23 	education programs or individualized family service plans in the district.

116.24 	Sec. 11. Minnesota Statutes 2015 Supplement, section 125A.63, subdivision 4, is 
116.25 	amended to read:
116.26 		Subd. 4.Advisory committees. (a) The commissioner shall establish advisory 
116.27 	committees for the deaf and hard-of-hearing and for the blind and visually impaired. The 
116.28 	advisory committees shall develop recommendations and submit an annual report to the 
116.29 	commissioner on the form and in the manner prescribed by the commissioner.
116.30 	(b) The advisory committees for the deaf and hard of hearing and for the blind and 
116.31 	visually impaired shall meet periodically at least four times per year and. The committees 
116.32 	must  each review, approve, and submit an annual a biennial report to the commissioner, 
116.33 	the education policy and finance committees of the legislature, and the Commission of 
116.34 	Deaf, DeafBlind, and Hard-of-Hearing Minnesotans. The reports must, at least:
117.1 	(1) identify and report the aggregate, data-based education outcomes for children 
117.2 	with the primary disability classification of deaf and hard of hearing or of blind and 
117.3 	visually impaired, consistent with the commissioner's child count reporting practices, the 
117.4 	commissioner's state and local outcome data reporting system by district and region, and 
117.5 	the school performance report cards under section 120B.36, subdivision 1; and
117.6 	(2) describe the implementation of a data-based plan for improving the education 
117.7 	outcomes of deaf and hard of hearing or blind and visually impaired children that is 
117.8 	premised on evidence-based best practices, and provide a cost estimate for ongoing 
117.9 	implementation of the plan.

117.10 	Sec. 12. Minnesota Statutes 2015 Supplement, section 125A.76, subdivision 2c, 
117.11 	is amended to read:
117.12 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
117.13 	district's special education aid equals the sum of the district's special education aid under 
117.14 	subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and the 
117.15 	district's excess cost aid under section 125A.79, subdivision 7.
117.16 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
117.17 	the district's special education initial aid under subdivision 2a and the district's excess cost 
117.18 	aid under section 125A.79, subdivision 5.
117.19 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
117.20 	a school district must not exceed the sum of the special education aid the district would 
117.21 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
117.22 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
117.23 	127A.47, subdivision 7, and the product of the district's average daily membership served 
117.24 	and the special education aid increase limit.
117.25 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
117.26 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
117.27 	daily membership served and the special education aid increase limit and (ii) the product 
117.28 	of the sum of the special education aid the district would have received for fiscal year 2016 
117.29 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
117.30 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
117.31 	the district's average daily membership served for the current fiscal year to the district's 
117.32 	average daily membership served for fiscal year 2016, and the program growth factor.
117.33 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special 
117.34 	education aid for a school district, not including a charter school or cooperative unit as 
117.35 	defined in section 123A.24, must not be less than the lesser of (1) the district's nonfederal 
118.1 	special education expenditures for that fiscal year or (2) the product of the sum of the 
118.2 	special education aid the district would have received for fiscal year 2016 under Minnesota 
118.3 	Statutes 2012, sections 125A.76 and 125A.79, as adjusted according to Minnesota Statutes 
118.4 	2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of the district's adjusted 
118.5 	daily membership for the current fiscal year to the district's average daily membership for 
118.6 	fiscal year 2016, and the program growth factor.
118.7 	(f) Notwithstanding subdivision 2a and section 125A.79, a charter school in its first 
118.8 	year of operation shall generate special education aid based on current year data. A newly 
118.9 	formed cooperative unit as defined in section 123A.24 may apply to the commissioner 
118.10 	for approval to generate special education aid for its first year of operation based on 
118.11 	current year data, with an offsetting adjustment to the prior year data used to calculate aid 
118.12 	for programs at participating school districts or previous cooperatives that were replaced 
118.13 	by the new cooperative.
118.14 	(g) The department shall establish procedures through the uniform financial 
118.15 	accounting and reporting system to identify and track all revenues generated from 
118.16 	third-party billings as special education revenue at the school district level; include revenue 
118.17 	generated from third-party billings as special education revenue in the annual cross-subsidy 
118.18 	report; and exclude third-party revenue from calculation of excess cost aid to the districts.

118.19 	Sec. 13. Minnesota Statutes 2015 Supplement, section 125A.79, subdivision 1, is 
118.20 	amended to read:
118.21 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
118.22 	subdivision apply.
118.23 	(a) "Unreimbursed old formula special education expenditures" means:
118.24 	(1) old formula special education expenditures for the prior fiscal year; minus
118.25 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
118.26 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
118.27 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
118.28 	initial aid under section 125A.76, subdivision 2a; minus
118.29 	(3) for fiscal year 2016 and later, the amount of general education revenue, excluding 
118.30 	local optional revenue, plus local optional aid and referendum equalization aid for the 
118.31 	prior fiscal year attributable to pupils receiving special instruction and services outside the 
118.32 	regular classroom for more than 60 percent of the school day for the portion of time the 
118.33 	pupils receive special instruction and services outside the regular classroom, excluding 
118.34 	portions attributable to district and school administration, district support services, 
118.35 	operations and maintenance, capital expenditures, and pupil transportation.
119.1 	(b) "Unreimbursed nonfederal special education expenditures" means:
119.2 	(1) nonfederal special education expenditures for the prior fiscal year; minus
119.3 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
119.4 	(3) the amount of general education revenue, excluding local optional revenue, plus 
119.5 	local optional aid, and referendum equalization aid for the prior fiscal year attributable 
119.6 	to pupils receiving special instruction and services outside the regular classroom for 
119.7 	more than 60 percent of the school day for the portion of time the pupils receive special 
119.8 	instruction and services outside of the regular classroom, excluding portions attributable to 
119.9 	district and school administration, district support services, operations and maintenance, 
119.10 	capital expenditures, and pupil transportation.
119.11 	(c) "General revenue" for a school district means the sum of the general education 
119.12 	revenue according to section 126C.10, subdivision 1, excluding transportation sparsity 
119.13 	revenue, local optional revenue, and total operating capital revenue. "General revenue" 
119.14 	for a charter school means the sum of the general education revenue according to section 
119.15 	124E.20, subdivision 1, and transportation revenue according to section 124E.23, 
119.16 	excluding referendum equalization aid, transportation sparsity revenue, and operating 
119.17 	capital revenue.

119.18 	Sec. 14. Minnesota Statutes 2015 Supplement, section 127A.47, subdivision 7, is 
119.19 	amended to read:
119.20 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
119.21 	special education aid for districts must be adjusted for each pupil attending a nonresident 
119.22 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
119.23 	adjustments must be made according to this subdivision.
119.24 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
119.25 	education and services" means the difference between: (1) the actual cost of providing 
119.26 	special instruction and services, including special transportation and unreimbursed 
119.27 	building lease and debt service costs for facilities used primarily for special education, for 
119.28 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
119.29 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
119.30 	receives special instruction and services outside the regular classroom for more than 
119.31 	60 percent of the school day, the amount of general education revenue, excluding local 
119.32 	optional revenue, plus local optional aid and referendum equalization aid as defined in 
119.33 	section 125A.11, subdivision 1, paragraph (d), attributable to that pupil for the portion of 
119.34 	time the pupil receives special instruction and services outside of the regular classroom, 
119.35 	excluding portions attributable to district and school administration, district support 
120.1 	services, operations and maintenance, capital expenditures, and pupil transportation, 
120.2 	minus (3) special education aid under section 125A.76 attributable to that pupil, that is 
120.3 	received by the district providing special instruction and services. For purposes of this 
120.4 	paragraph, general education revenue and referendum equalization aid attributable to a 
120.5 	pupil must be calculated using the serving district's average general education revenue 
120.6 	and referendum equalization aid per adjusted pupil unit.
120.7 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
120.8 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
120.9 	special education and services.
120.10 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
120.11 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
120.12 	education and services provided to students at an intermediate district, cooperative, or 
120.13 	charter school where the percent of students eligible for special education services is at 
120.14 	least 70 percent of the charter school's total enrollment.
120.15 	(e) Notwithstanding paragraph (c), special education aid paid to a resident district 
120.16 	must be reduced under paragraph (d) for students at a charter school receiving special 
120.17 	education aid under section 124E.21, subdivision 3, calculated as if the charter school 
120.18 	received special education aid under section 124E.21, subdivision 1.
120.19 	(f) Special education aid paid to the district or cooperative providing special 
120.20 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, must 
120.21 	be increased by the amount of the reduction in the aid paid to the resident district under 
120.22 	paragraphs (c) and (d). If the resident district's special education aid is insufficient to make 
120.23 	the full adjustment under paragraphs (c), (d), and (e), the remaining adjustment shall be 
120.24 	made to other state aids due to the district.
120.25 	(g) Notwithstanding paragraph (a), general education aid paid to the resident district 
120.26 	of a nonspecial education student for whom an eligible special education charter school 
120.27 	receives general education aid under section 124E.20, subdivision 1, paragraph (c), must 
120.28 	be reduced by an amount equal to the difference between the general education aid 
120.29 	attributable to the student under section 124E.20, subdivision 1, paragraph (c), and the 
120.30 	general education aid that the student would have generated for the charter school under 
120.31 	section 124E.20, subdivision 1, paragraph (a). For purposes of this paragraph, "nonspecial 
120.32 	education student" means a student who does not meet the definition of pupil with a 
120.33 	disability as defined in section 125A.02 or the definition of a pupil in section 125A.51.
120.34 	(h) An area learning center operated by a service cooperative, intermediate district, 
120.35 	education district, or a joint powers cooperative may elect through the action of the 
120.36 	constituent boards to charge the resident district tuition for pupils rather than to have the 
121.1 	general education revenue paid to a fiscal agent school district. Except as provided in 
121.2 	paragraph (f), the district of residence must pay tuition equal to at least 90 and no more 
121.3 	than 100 percent of the district average general education revenue per pupil unit minus 
121.4 	an amount equal to the product of the formula allowance according to section 126C.10, 
121.5 	subdivision 2, times .0466, calculated without compensatory revenue, local optional 
121.6 	revenue, and transportation sparsity revenue, times the number of pupil units for pupils 
121.7 	attending the area learning center.

121.8 	Sec. 15. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
121.9 	2, is amended to read:
121.10 		Subd. 2.Special education; regular. For special education aid under Minnesota 
121.11 	Statutes, section 125A.75:

121.12
121.13		$ 
	1,170,929,000
1,183,619,000
	.....
	2016
	
121.14
121.15		$ 
	1,229,706,000
1,246,997,000
	.....
	2017
	
121.16 	The 2016 appropriation includes $137,932,000 for 2015 and $1,032,997,000
121.17 	$1,045,687,000 for 2016.
121.18 	The 2017 appropriation includes $145,355,000 $147,202,000 for 2016 and 
121.19 	$1,084,351,000 $1,099,795,000 for 2017.

121.20 	Sec. 16. REDUCING STATE-GENERATED SPECIAL EDUCATION 
121.21 	PAPERWORK.
 121.22 	Notwithstanding other law to the contrary in fiscal years 2017 and 2018, the 
121.23 	commissioner of education must use existing budgetary resources to identify and remove 
121.24 	25 percent of the paperwork burden on Minnesota special education teachers that results 
121.25 	from state but not federally mandated special education compliance reporting requirements.

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

121.27 	Sec. 17. APPROPRIATION CANCELED.
 121.28 	$1,686,000 on June 30, 2016, is transferred from the information and 
121.29 	telecommunications technology systems and services account under Minnesota Statutes, 
121.30 	section 16E.21, to the general fund. This represents the amount the Department of 
121.31 	Education transferred to that account in fiscal year 2015 after determining that the special 
121.32 	education paperwork reduction activities authorized in an appropriation under Laws 2013, 
122.1 	chapter 116, article 5, section 31, subdivision 8, were not feasible based on a onetime 
122.2 	appropriation.

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

122.4 	ARTICLE 11
122.5 	FACILITIES AND TECHNOLOGY

122.6 	Section 1. Minnesota Statutes 2015 Supplement, section 123B.53, subdivision 1, is 
122.7 	amended to read:
122.8 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
122.9 	revenue of a district is defined as follows:
122.10 	(1) the amount needed to produce between five and six percent in excess of the 
122.11 	amount needed to meet when due the principal and interest payments on the obligations 
122.12 	of the district for eligible projects according to subdivision 2, including the amounts 
122.13 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292 
122.14 	to 298.298, debt service loans, capital loans, and lease purchase payments under section 
122.15 	126C.40, subdivision 2, excluding long-term facilities maintenance levies under section 
122.16 	123B.595, minus
122.17 	(2) the amount of debt service excess levy reduction for that school year calculated 
122.18 	according to the procedure established by the commissioner.
122.19 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
122.20 	(1) obligations under section 123B.61;
122.21 	(2) the part of debt service principal and interest paid from the taconite environmental 
122.22 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
122.23 	taconite payments from the Iron Range school consolidation and cooperatively operated 
122.24 	school account under section 298.28, subdivision 7a;
122.25 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
122.26 	amended by Laws 1992, chapter 499, article 5, section 24;
122.27 	(4) obligations under section 123B.62; and
122.28 	(5) obligations equalized under section 123B.535.
122.29 	(c) For purposes of this section, if a preexisting school district reorganized under 
122.30 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
122.31 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
122.32 	service equalization aid must be computed separately for each of the preexisting districts.
123.1 	(d) For purposes of this section, the adjusted net tax capacity determined according 
123.2 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
123.3 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

123.4 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
123.5 	later.

123.6 	Sec. 2. Minnesota Statutes 2014, section 123B.571, subdivision 2, is amended to read:
123.7 		Subd. 2.Radon testing. A school district may include radon testing as a part of 
123.8 	its health and safety ten-year facility plan under section 123B.595, subdivision 4. If a 
123.9 	school district receives authority to use health and safety long-term facilities maintenance
123.10 	revenue to conduct radon testing, the district shall conduct the testing according to the 
123.11 	radon testing plan developed by the commissioners of health and education.

123.12 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
123.13 	later.

123.14 	Sec. 3. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 4, is 
123.15 	amended to read:
123.16 		Subd. 4.Facilities plans. (a) To qualify for revenue under this section, a school 
123.17 	district or intermediate district, not including a charter school, must have a ten-year facility 
123.18 	plan adopted by the school board and approved by the commissioner. The plan must include 
123.19 	provisions for implementing a health and safety program that complies with health, safety, 
123.20 	and environmental regulations and best practices, including indoor air quality management.
123.21 	(b) The district must annually update the plan, biennially submit a facility 
123.22 	maintenance the plan to the commissioner for approval by July 31, and indicate whether 
123.23 	the district will issue bonds to finance the plan or levy for the costs.
123.24 	(c) For school districts issuing bonds to finance the plan, the plan must include a 
123.25 	debt service schedule demonstrating that the debt service revenue required to pay the 
123.26 	principal and interest on the bonds each year will not exceed the projected long-term 
123.27 	facilities revenue for that year.

123.28 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
123.29 	later.

123.30 	Sec. 4. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 7, is 
123.31 	amended to read:
124.1 		Subd. 7.Long-term facilities maintenance equalization revenue. (a) For fiscal 
124.2 	year 2017 only, a district's long-term facilities maintenance equalization revenue equals 
124.3 	the lesser of (1) $193 times the adjusted pupil units or (2) the district's revenue under 
124.4 	subdivision 1.
124.5 	(b) For fiscal year 2018 only, a district's long-term facilities maintenance 
124.6 	equalization revenue equals the lesser of (1) $292 times the adjusted pupil units or (2) 
124.7 	the district's revenue under subdivision 1.
124.8 	(c) For fiscal year 2019 and later, a district's long-term facilities maintenance 
124.9 	equalization revenue equals the lesser of (1) $380 times the adjusted pupil units or (2) 
124.10 	the district's revenue under subdivision 1.
124.11 	(d) Notwithstanding paragraphs (a) to (c), a district's long-term facilities maintenance 
124.12 	equalization revenue must not be less than the lesser of the district's long-term facilities 
124.13 	maintenance revenue or the amount of aid the district received for fiscal year 2015 under 
124.14 	section 123B.59, subdivision 6.

124.15 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
124.16 	later.

124.17 	Sec. 5. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 8, is 
124.18 	amended to read:
124.19 		Subd. 8.Long-term facilities maintenance equalized levy. (a) For fiscal year 2017 
124.20 	and later, a district's long-term facilities maintenance equalized levy equals the district's 
124.21 	long-term facilities maintenance equalization revenue minus the greater of:
124.22 	(1) the lesser of the district's long-term facilities maintenance equalization revenue 
124.23 	or the amount of aid the district received for fiscal year 2015 under Minnesota Statutes 
124.24 	2014, section 123B.59, subdivision 6; or
124.25 	(2) the district's long-term facilities maintenance equalization revenue times the 
124.26 	greater of (i) zero or (ii) one minus the ratio of its adjusted net tax capacity per adjusted 
124.27 	pupil unit in the year preceding the year the levy is certified to 123 percent of the state 
124.28 	average adjusted net tax capacity per adjusted pupil unit for all school districts in the 
124.29 	year preceding the year the levy is certified.
124.30 	(b) For purposes of this subdivision, "adjusted net tax capacity" means the value 
124.31 	described in section 126C.01, subdivision 2, paragraph (b).

124.32 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
124.33 	later.

125.1 	Sec. 6. Minnesota Statutes 2015 Supplement, section 123B.595, is amended by adding 
125.2 	a subdivision to read:
125.3 		Subd. 8a.Long-term facilities maintenance unequalized levy. For fiscal year 
125.4 	2017 and later, a district's long-term facilities maintenance unequalized levy equals the 
125.5 	difference between the district's revenue under subdivision 1 and the district's equalization 
125.6 	revenue under subdivision 7.

125.7 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
125.8 	later.

125.9 	Sec. 7. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 9, is 
125.10 	amended to read:
125.11 		Subd. 9.Long-term facilities maintenance equalized aid. For fiscal year 2017 
125.12 	and later, a district's long-term facilities maintenance equalized aid equals its long-term 
125.13 	facilities maintenance equalization revenue minus its long-term facilities maintenance 
125.14 	equalized levy times the ratio of the actual equalized amount levied to the permitted 
125.15 	equalized levy.

125.16 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
125.17 	later.

125.18 	Sec. 8. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 10, 
125.19 	is amended to read:
125.20 		Subd. 10.Allowed uses for long-term facilities maintenance revenue. (a) A 
125.21 	district may use revenue under this section for any of the following:
125.22 	(1) deferred capital expenditures and maintenance projects necessary to prevent 
125.23 	further erosion of facilities;
125.24 	(2) increasing accessibility of school facilities; or
125.25 	(3) health and safety capital projects under section 123B.57.; or
125.26 	(4) by board resolution, to transfer money from the general fund reserve for long-term 
125.27 	facilities maintenance to the debt redemption fund to pay the amounts needed to meet, 
125.28 	when due, principal and interest on general obligation bonds issued under subdivision 5.
125.29 	(b) A charter school may use revenue under this section for any purpose related 
125.30 	to the school.

125.31 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
125.32 	later.

126.1 	Sec. 9. Minnesota Statutes 2015 Supplement, section 123B.595, subdivision 11, 
126.2 	is amended to read:
126.3 		Subd. 11.Restrictions on long-term facilities maintenance revenue.
 126.4 	Notwithstanding subdivision 11 10, long-term facilities maintenance revenue may not 
126.5 	be used:
126.6 	(1) for the construction of new facilities, remodeling of existing facilities, or the 
126.7 	purchase of portable classrooms;
126.8 	(2) to finance a lease purchase agreement, installment purchase agreement, or other 
126.9 	deferred payments agreement;
126.10 	(3) for energy-efficiency projects under section 123B.65, for a building or property 
126.11 	or part of a building or property used for postsecondary instruction or administration, or 
126.12 	for a purpose unrelated to elementary and secondary education; or
126.13 	(4) for violence prevention and facility security, ergonomics, or emergency 
126.14 	communication devices.

126.15 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
126.16 	later.

126.17 	Sec. 10. Minnesota Statutes 2014, section 123B.60, subdivision 1, is amended to read:
126.18 		Subdivision 1.Bonds. When a building owned by a district is substantially damaged 
126.19 	by an act of God or other means beyond the control of the district, the district may issue 
126.20 	general obligation bonds without an election to provide money immediately to carry 
126.21 	out its adopted health and safety long-term facilities maintenance program. Each year 
126.22 	the district must pledge an attributable share of its health and safety long-term facilities 
126.23 	maintenance revenue to the repayment of principal and interest on the bonds. The pledged 
126.24 	revenue must be transferred to recognized in the debt redemption fund of the district. The 
126.25 	district must submit to the department the repayment schedule for any bonds issued under 
126.26 	this section. The district must deposit in the debt redemption fund all proceeds received 
126.27 	for specific costs for which the bonds were issued, including but not limited to:
126.28 	(1) insurance proceeds;
126.29 	(2) restitution proceeds; and
126.30 	(3) proceeds of litigation or settlement of a lawsuit.
126.31 	Before bonds are issued, the district must submit a combined an amended
126.32 	application to the commissioner for health and safety long-term facilities maintenance
126.33 	revenue, according to section 123B.57, and requesting review and comment, according 
126.34 	to section 123B.71, subdivisions 8, 9, 11, and 12 123B.595. The commissioner shall 
126.35 	complete all procedures concerning the combined application within 20 days of receiving 
127.1 	the application. The publication provisions of section 123B.71, subdivision 12, do not 
127.2 	apply to bonds issued under this section.

127.3 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
127.4 	later.

127.5 	Sec. 11. Minnesota Statutes 2014, section 123B.71, subdivision 8, is amended to read:
127.6 		Subd. 8.Review and comment. A school district, a special education cooperative, 
127.7 	or a cooperative unit of government, as defined in section 123A.24, subdivision 2, 
127.8 	must not initiate an installment contract for purchase or a lease agreement, hold a 
127.9 	referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of 
127.10 	an educational facility that requires an expenditure in excess of $500,000 per school site if 
127.11 	it has a capital loan outstanding, or $2,000,000 per school site if it does not have a capital 
127.12 	loan outstanding, prior to review and comment by the commissioner. A facility addition, 
127.13 	maintenance project, or remodeling project funded only with general education revenue, 
127.14 	deferred maintenance revenue, alternative facilities bonding and levy program revenue, 
127.15 	lease levy proceeds, capital facilities bond proceeds, or health and safety long-term 
127.16 	facilities maintenance revenue is exempt from this provision. A capital project under 
127.17 	section 123B.63 addressing only technology is exempt from this provision if the district 
127.18 	submits a school board resolution stating that funds approved by the voters will be used 
127.19 	only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
127.20 	portions of a single project into components to avoid the requirements of this subdivision.

127.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
127.22 	and applies to review and comments for projects funded with revenue for fiscal year 
127.23 	2017 and later.

127.24 	Sec. 12. Minnesota Statutes 2014, section 123B.79, subdivision 5, is amended to read:
127.25 		Subd. 5.Deficits; exception. For the purposes of this section, a permanent transfer 
127.26 	includes creating a deficit in a nonoperating fund for a period past the end of the current 
127.27 	fiscal year which is covered by moneys in an operating fund. However, A deficit in the 
127.28 	capital expenditure fund reserve for operating capital account pursuant to section 123B.78, 
127.29 	subdivision 5, does not constitute a permanent transfer.

127.30 	Sec. 13. Minnesota Statutes 2014, section 123B.79, subdivision 8, is amended to read:
127.31 		Subd. 8.Account transfer for reorganizing districts. A district that has 
127.32 	reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has 
128.1 	conducted a successful referendum on the question of combination under section 
128.2 	123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has 
128.3 	been assigned an identification number by the commissioner under section 123A.48, 
128.4 	subdivision 16, may make permanent transfers between any of the funds or accounts in 
128.5 	the newly created or enlarged district with the exception of the debt redemption fund, 
128.6 	building construction fund, food service fund, and health and safety long-term facilities 
128.7 	maintenance account of the capital expenditure general fund. Fund transfers under this 
128.8 	section may be made for up to one year prior to the effective date of combination or 
128.9 	consolidation by the consolidating boards and during the year following the effective date 
128.10 	of reorganization by the consolidated board. The newly formed board of the combined 
128.11 	district may adopt a resolution on or before August 30 of the year of the reorganization 
128.12 	authorizing a transfer among accounts or funds of the previous independent school 
128.13 	districts which transfer or transfers shall be reported in the affected districts' audited 
128.14 	financial statements for the year immediately preceding the consolidation.

128.15 	EFFECTIVE DATE. This section is effective July 1, 2016, for fiscal year 2017 
128.16 	and later.

128.17 	Sec. 14. Minnesota Statutes 2014, section 123B.79, subdivision 9, is amended to read:
128.18 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
128.19 	reserve accounts established in the school district's general fund under Minnesota Statutes 
128.20 	before July 1, 2006, for which no specific authority remains in statute as of June 30, 2007. 
128.21 	Any balance in the district's reserved for bus purchases account for deferred maintenance
128.22 	as of June 30, 2007 2016, shall be transferred to the reserved account for operating capital 
128.23 	long-term facilities maintenance in the school district's general fund. Any balance in 
128.24 	other reserved accounts established in the school district's general fund under Minnesota 
128.25 	Statutes before July 1, 2006, for which no specific authority remains in statute as of June 
128.26 	30, 2007, shall be transferred to the school district's unreserved general fund balance. 
128.27 	A school board may, upon adoption of a resolution by the school board, establish a 
128.28 	designated account for any program for which a reserved account has been eliminated. 
128.29 	Any balance in the district's reserved account for health and safety as of June 30, 2019, 
128.30 	shall be transferred to the unassigned fund balance account in the district's general fund. 
128.31 	Any balance in the district's reserved account for alternative facilities as of June 30, 2016, 
128.32 	shall be transferred to the reserved account for long-term facilities maintenance in the 
128.33 	district's building construction fund.

129.1 	EFFECTIVE DATE. This section is effective July 1, 2016, for fiscal year 2017 
129.2 	and later.

129.3 	Sec. 15. Minnesota Statutes 2014, section 126C.40, subdivision 5, is amended to read:
129.4 		Subd. 5.Energy conservation. For loans approved before March 1, 1998, the 
129.5 	district may annually include as revenue under section 123B.53, without the approval of a 
129.6 	majority of the voters in the district, an amount sufficient to repay the annual principal and 
129.7 	interest of the loan made pursuant to sections 216C.37 and 298.292 to 298.298. For energy 
129.8 	loans approved after March 1, 1998, under sections 216C.37 and 298.292 to 298.298, 
129.9 	school districts must annually transfer from the general fund to the debt redemption fund 
129.10 	the amount sufficient to pay interest and principal on the loans.

129.11 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
129.12 	later.

129.13 	Sec. 16. Minnesota Statutes 2015 Supplement, section 126C.48, subdivision 8, is 
129.14 	amended to read:
129.15 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
129.16 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
129.17 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
129.18 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
129.19 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 to 
129.20 	298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon severed 
129.21 	mineral values must reduce the levies authorized by this chapter and chapters 120B, 122A, 
129.22 	123A, 123B, 124A, 124D, 125A, and 127A, excluding the student achievement levy 
129.23 	under section 126C.13, subdivision 3b, by 95 percent of the sum of the previous year's 
129.24 	revenue specified under this clause and the amount attributable to the same production 
129.25 	year distributed to the cities and townships within the school district under section 298.28, 
129.26 	subdivision 2, paragraph (c).
129.27 	(3) The amount of any voter approved referendum, facilities down payment, and 
129.28 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
129.29 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
129.30 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
129.31 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
129.32 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
129.33 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
129.34 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
130.1 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
130.2 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
130.3 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
130.4 	reduce any voter approved debt levies.
130.5 	(4) Before computing the reduction pursuant to this subdivision of the health and 
130.6 	safety long-term facilities maintenance levy authorized by sections 123B.57 and 126C.40, 
130.7 	subdivision 5 section 123B.595, the commissioner shall ascertain from each affected 
130.8 	school district the amount it proposes to levy under each section or subdivision. The 
130.9 	reduction shall be computed on the basis of the amount so ascertained.
130.10 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
130.11 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
130.12 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
130.13 	year to the cities and townships within the school district in the proportion that their 
130.14 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
130.15 	the school district for property taxes payable in the year prior to distribution. No city or 
130.16 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
130.17 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
130.18 	towns under this paragraph to the county auditor by September 30 of the year preceding 
130.19 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
130.20 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
130.21 	and towns shall be made at the times provided under section 298.27.

130.22 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
130.23 	later.

130.24 	Sec. 17. Minnesota Statutes 2014, section 126C.63, subdivision 7, is amended to read:
130.25 		Subd. 7.Required debt service levy. "Required debt service levy" means the total 
130.26 	dollar amount needed to be included in the taxes levied by the district in any year for 
130.27 	payment of interest and principal falling due on its debts prior to collection of the next 
130.28 	ensuing year's debt service levy, excluding the debt service levy for obligations under 
130.29 	sections 123B.595, 123B.61, and 123B.62.

130.30 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2017 and 
130.31 	later.

130.32 	Sec. 18. Laws 2011, First Special Session chapter 11, article 4, section 8, is amended to 
130.33 	read:
131.1 	Sec. 8. EARLY REPAYMENT.
 131.2 	(a) A school district that received a maximum effort capital loan prior to January 
131.3 	1, 1997, may repay the full outstanding original principal on its capital loan prior to 
131.4 	July 1, 2012, and the liability of the district on the loan is satisfied and discharged and 
131.5 	interest on the loan ceases.
131.6 	(b) A school district with an outstanding capital loan balance that received a 
131.7 	maximum effort capital loan prior to January 1, 2007, may repay to the commissioner of 
131.8 	education by November 30, 2016, the full outstanding original principal on its capital 
131.9 	loan and the liability of the district on the loan is satisfied and discharged and interest 
131.10 	on the loan ceases.

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

131.12 	Sec. 19. INTERNET BROADBAND EXPANSION FOR STUDENTS; 
131.13 	INNOVATIVE GRANTS.
 131.14 		Subdivision 1.Broadband Wi-Fi hot spots. (a) A school district is eligible for a 
131.15 	broadband hot spot grant not to exceed $100,000 to support wireless off-campus learning 
131.16 	through a student's use of a data card, USB modem, or other mobile broadband device 
131.17 	that enables the student to access learning materials available on the Internet through a 
131.18 	mobile broadband connection. A district's application for a grant under this subdivision 
131.19 	must describe its approach for identifying and prioritizing access for low-income students 
131.20 	and others otherwise unable to access the Internet and may include a description of 
131.21 	local or private matching grants or in-kind contributions. When evaluating applications, 
131.22 	the commissioner may give priority to grant applications that include local in-kind 
131.23 	contributions.
131.24 	(b) A school district may develop its application in cooperation with its community 
131.25 	education department, its adult basic education program provider, a public library, or other 
131.26 	community partner. A cooperative grant award under this paragraph may not exceed 
131.27 	$200,000.
131.28 	(c) A school district that qualifies for general education transportation sparsity 
131.29 	revenue under Minnesota Statutes, section 126C.10, may apply to the commissioner of 
131.30 	education for a school bus Internet access grant as a part of its grant application under 
131.31 	paragraph (a). The commissioner of education must prioritize grants to districts with the 
131.32 	longest bus routes. A school district that receives a grant under this subdivision may use 
131.33 	the grant to purchase or lease equipment designed to make Internet access available on 
131.34 	school buses, including routers and mobile Wi-Fi hot spots to connect to the Internet, and 
132.1 	may also purchase or lease one-to-one devices for students. The one-to-one devices may 
132.2 	be connected to the Internet through the Wi-Fi hot spot or otherwise contain content 
132.3 	for age-appropriate, self-directed learning.
132.4 		Subd. 2.Capacity-building grants. A school district that is a member of 
132.5 	a telecommunications access cluster may submit an application approved by its 
132.6 	telecommunications access cluster to the commissioner of education for a broadband 
132.7 	access grant. The grant application may include a description of local or private matching 
132.8 	grants or in-kind contributions. When evaluating applications, the commissioner may give 
132.9 	priority to grant applications that include local in-kind contributions. The maximum 
132.10 	amount of each grant may not exceed $100,000. The grant may be used in any manner and 
132.11 	with any community partners that allow the school district to expand telecommunications 
132.12 	access to its students, teachers, and community members.
132.13 		Subd. 3.Internet access for students. Consistent with Minnesota Statutes, section 
132.14 	125B.15, all grant applications submitted under this section must demonstrate to the 
132.15 	commissioner's satisfaction that the Internet access provided through the grant proceeds 
132.16 	will include filtering technology or other effective methods to limit student access to 
132.17 	material that is reasonably believed to be obscene, child pornography, or material harmful 
132.18 	to minors under federal or state law.

132.19 	Sec. 20. APPROPRIATIONS.
 132.20 		Subdivision 1.Department of Education. The sums indicated in this section are 
132.21 	appropriated from the general fund to the commissioner of education for the fiscal years 
132.22 	designated.
132.23 		Subd. 2.Broadband expansion grants. For broadband expansion grants:

132.24		$
	7,000,000
	.....
	2017
	
132.25 	Of this amount, $5,000,000 is for broadband Wi-Fi hot spots under section 19, 
132.26 	subdivision 1, and $2,000,000 is for capacity-building grants under section 19, subdivision 
132.27 	2. This is a onetime appropriation. This appropriation is available until June 30, 2019.

132.28 	Sec. 21.  REPEALER.
 132.29 	Minnesota Statutes 2014, sections 123B.60, subdivision 2; and 123B.79, 
132.30 	subdivisions 2 and 6, are repealed for fiscal year 2017 and later.

133.1 	ARTICLE 12
133.2 	EARLY CHILDHOOD EDUCATION

133.3 	Section 1. [124D.1295] EARLY LEARNING PROGRAM COORDINATION.
133.4 		Subdivision 1.Early learning program coordination. A school board, after 
133.5 	receiving written comments from its early childhood advisory council or its community 
133.6 	education council, may adopt a resolution allowing the district to offer an integrated early 
133.7 	learning program. An integrated early learning program may provide for early childhood 
133.8 	family education services, school readiness services, and other early learning programs 
133.9 	providing services to parents and children. A school district's integrated early learning 
133.10 	program must continue to contain components of parent education, opportunities for early 
133.11 	learning activities for families with young children, and school readiness activities.
133.12 		Subd. 2.Early learning program revenue sources. A school district's early 
133.13 	learning program revenue includes its early childhood family education revenue under 
133.14 	section 124D.135, school readiness program revenue under section 124D.16, and any 
133.15 	other revenues set aside for early learning activities.
133.16 		Subd. 3.Reserve account. A district that offers an integrated early learning 
133.17 	program must place all of the revenue it receives under subdivision 2 in an early learning 
133.18 	program reserve account established in the community service fund.

133.19 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

133.20 	Sec. 2. Minnesota Statutes 2014, section 124D.13, subdivision 1, is amended to read:
133.21 		Subdivision 1.Establishment; purpose. A district that provides a community 
133.22 	education program under sections 124D.18 and 124D.19 may establish an early childhood 
133.23 	family education program as an individual program or as a part of an early learning 
133.24 	program under section 124D.1295. Two or more districts, each of which provides a 
133.25 	community education program, may cooperate to jointly provide an early childhood 
133.26 	family education program. The purpose of the early childhood family education program 
133.27 	is to provide parenting education to support children's learning and development.

133.28 	EFFECTIVE DATE. This section is effective July 1, 2016.

133.29 	Sec. 3. Minnesota Statutes 2014, section 124D.13, subdivision 5, is amended to read:
133.30 		Subd. 5.Separate accounts. The A district operating an early childhood family 
133.31 	education program independent of an early learning program under section 124D.1295
134.1 	must maintain a separate account within the community education fund for money for 
134.2 	early childhood family education programs.

134.3 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

134.4 	Sec. 4. Minnesota Statutes 2014, section 124D.13, subdivision 9, is amended to read:
134.5 		Subd. 9.District advisory councils. The board must appoint an advisory council 
134.6 	from the area in which the program is provided. A majority of the council must be parents 
134.7 	participating in the program, who represent the demographics of the community. The 
134.8 	district must ensure, to the extent possible, that the council includes representation of 
134.9 	families who are racially, culturally, linguistically, and economically diverse. The council 
134.10 	must assist the board in developing, planning, and monitoring the early childhood family 
134.11 	education program and the early learning program under section 124D.1295. The council 
134.12 	must report to the board and the community education advisory council.

134.13 	EFFECTIVE DATE. This section is effective July 1, 2016.

134.14 	Sec. 5. Minnesota Statutes 2014, section 124D.135, subdivision 5, is amended to read:
134.15 		Subd. 5.Use of revenue restricted. (a) Early childhood family education revenue 
134.16 	may be used only for early learning programs, including early childhood family education 
134.17 	programs.
134.18 	(b) Not more than five percent of early childhood family education revenue, as defined 
134.19 	in subdivision 7, may be used to administer early childhood family education programs.
134.20 	(c) An early childhood family education program may use up to ten percent of its 
134.21 	early childhood family education revenue as defined in subdivision 1, including revenue 
134.22 	from participant fees, for equipment that is used in the early childhood family education 
134.23 	program. This revenue may only be used for the following purposes:
134.24 	(1) to purchase or lease computers and related materials; and
134.25 	(2) to purchase or lease equipment for instruction for participating children and 
134.26 	their families.
134.27 	If a district anticipates an unusual circumstance requiring its early childhood family 
134.28 	education program capital expenditures to exceed the ten percent limitation, prior approval 
134.29 	to exceed the limit must be obtained in writing from the commissioner.

134.30 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

134.31 	Sec. 6. Minnesota Statutes 2014, section 124D.135, subdivision 7, is amended to read:
135.1 		Subd. 7.Reserve account. Early childhood family education revenue, which 
135.2 	includes aids, levies, fees, grants, and all other revenues received by the district for early 
135.3 	childhood family education programs, must be maintained in either an early learning 
135.4 	program reserve account or a separate early childhood family education reserve account 
135.5 	within the community service fund.

135.6 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

135.7 	Sec. 7. Minnesota Statutes 2014, section 124D.15, subdivision 1, is amended to read:
135.8 		Subdivision 1.Establishment; purpose. A district, charter school, or a group of 
135.9 	districts or charter schools may establish a school readiness program for children age 
135.10 	three to kindergarten entrance. The purpose of a school readiness program is to prepare 
135.11 	children to enter kindergarten.

135.12 	Sec. 8. Minnesota Statutes 2014, section 124D.15, subdivision 3a, is amended to read:
135.13 		Subd. 3a.Application and reporting requirements. (a) A school readiness 
135.14 	program provider must submit a biennial plan for approval by the commissioner before 
135.15 	receiving aid under section 124D.16. The plan must describe how the program meets the 
135.16 	program requirements under subdivision 3. A school district by April 1or charter school 
135.17 	must submit the plan for approval by the commissioner in the form and manner and by the 
135.18 	date prescribed by the commissioner. One-half the districts must first submit the plan by 
135.19 	April 1, 2006, and one-half the districts must first submit the plan by April 1, 2007, as 
135.20 	determined by the commissioner.
135.21 	(b) Programs receiving school readiness funds annually must submit a report to 
135.22 	the department.

135.23 	Sec. 9. Minnesota Statutes 2015 Supplement, section 124D.16, subdivision 2, is 
135.24 	amended to read:
135.25 		Subd. 2.Amount of aid. (a) A district or charter school is eligible to receive school 
135.26 	readiness aid for eligible prekindergarten pupils enrolled in a school readiness program 
135.27 	under section 124D.15 if the biennial plan required by section 124D.15, subdivision 3a, 
135.28 	has been approved by the commissioner.
135.29 	(b) A school district must receive school readiness aid equal to:
135.30 	(1) the number of four-year-old children in the district on October 1 for the previous 
135.31 	school year times the ratio of 50 percent of the total school readiness aid for that year to 
135.32 	the total number of four-year-old children reported to the commissioner for the previous 
135.33 	school year; plus
136.1 	(2) the number of pupils enrolled in the school district from families eligible for the 
136.2 	free or reduced-price school lunch program for the previous school year times the ratio 
136.3 	of 50 percent of the total school readiness aid for that year to the total number of pupils 
136.4 	in the state from families eligible for the free or reduced-price school lunch program for 
136.5 	the previous school year.
136.6 	(c) The total school readiness aid entitlement equals $23,558,000 for fiscal year 2016 
136.7 	and $33,683,000 for fiscal year 2017 and later.
136.8 	(d) If the aid entitlement in paragraph (c) is increased above $33,683,000 for any 
136.9 	year, the commissioner must calculate the school readiness aid entitlement for charter 
136.10 	schools equal to the aid entitlement in the current year less $33,683,000. A charter 
136.11 	school's school readiness aid equals:
136.12 	(1) the number of kindergarten pupils enrolled in the charter school on October 1 for 
136.13 	the previous school year times the ratio of 50 percent of the total charter school readiness 
136.14 	aid for that year to the total number of charter school kindergarten pupils reported to the 
136.15 	commissioner for the previous school year; plus
136.16 	(2) the number of pupils enrolled in the charter school from families eligible for the 
136.17 	free or reduced-price school lunch program for the previous school year times the ratio 
136.18 	of 50 percent of the total charter school readiness aid for that year to the total number of 
136.19 	pupils in all charter schools from families eligible for the free or reduced-price school 
136.20 	lunch program for the previous school year.
136.21 	(e) If the aid entitlement under paragraph (c) is increased above $36,683,000, the 
136.22 	commissioner must combine the counts for school districts and charter schools under 
136.23 	paragraphs (b) and (c) and compute aid amounts accordingly.

136.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2018 
136.25 	and later.

136.26 	Sec. 10. Minnesota Statutes 2014, section 124D.16, subdivision 3, is amended to read:
136.27 		Subd. 3.Use of aid. School readiness aid shall be used only to provide a school 
136.28 	readiness program or an early learning program and may be used to provide transportation. 
136.29 	Not more than five percent of program revenue, as defined in subdivision 5, may be used 
136.30 	for the cost of administering the program. Aid must be used to supplement and not supplant 
136.31 	local, state, and federal funding. Aid may not be used for instruction and services required 
136.32 	under sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to purchase land 
136.33 	or construct buildings, but may be used to lease or renovate existing buildings.

136.34 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

137.1 	Sec. 11. Minnesota Statutes 2014, section 124D.16, subdivision 5, is amended to read:
137.2 		Subd. 5.Reserve account. School readiness revenue, which includes aids, fees, 
137.3 	grants, and all other revenues received by the district school readiness programs, must 
137.4 	be maintained in either an early learning program reserve account or a school readiness
137.5 	reserve account within the community service fund.

137.6 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

137.7 	Sec. 12. Minnesota Statutes 2014, section 124D.165, as amended by Laws 2015, First 
137.8 	Special Session chapter 3, article 9, section 6, is amended to read:
137.9 	124D.165 EARLY LEARNING SCHOLARSHIPS.
137.10 		Subdivision 1.Establishment; purpose. There is established an early learning 
137.11 	scholarships program in order to increase access to high-quality early childhood programs 
137.12 	for children ages three to five.
137.13 		Subd. 2.Family eligibility. (a) For a family to receive an early learning scholarship, 
137.14 	parents or guardians must meet the following eligibility requirements:
137.15 	(1) have a child three or four years of age on September 1 of the current school year, 
137.16 	who has not yet started kindergarten; and
137.17 	(2) have income equal to or less than 185 percent of federal poverty level income 
137.18 	in the current calendar year, or be able to document their child's current participation in 
137.19 	the free and reduced-price lunch program or child and adult care food program, National 
137.20 	School Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food 
137.21 	Distribution Program on Indian Reservations, Food and Nutrition Act, United States 
137.22 	Code, title 7, sections 2011-2036; Head Start under the federal Improving Head Start for 
137.23 	School Readiness Act of 2007; Minnesota family investment program under chapter 256J; 
137.24 	child care assistance programs under chapter 119B; the supplemental nutrition assistance 
137.25 	program; or placement in foster care under section 260C.212.
137.26 	(b) Notwithstanding the other provisions of this section, a child from birth to age five 
137.27 	and not yet enrolled in kindergarten is eligible for an early learning scholarship if the child's 
137.28 	family meets the income eligibility standard established in paragraph (a), clause (2), and:
137.29 	(1) the child's parent is under age 21 who and is pursuing a high school or general 
137.30 	education equivalency diploma is eligible for an early learning scholarship if the parent 
137.31 	has a child age zero to five years old and meets the income eligibility guidelines in this 
137.32 	subdivision.;
137.33 	(2) the child is in foster care or otherwise a child in need of protection or services; or
137.34 	(3) the child's family has experienced homelessness in the last 24 months.
138.1 	(c) Any siblings between the ages zero to five years old of a child who has been 
138.2 	awarded a scholarship under this section must be awarded a scholarship upon request, 
138.3 	provided the sibling attends the same program as long as funds are available.
138.4 	(d) A child who has received a scholarship under this section must continue to 
138.5 	receive a scholarship each year until that child is eligible for kindergarten under section 
138.6 	120A.20 and as long as funds are available.
138.7 	(e) Early learning scholarships may not be counted as earned income for the 
138.8 	purposes of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, 
138.9 	Minnesota family investment program under chapter 256J, child care assistance programs 
138.10 	under chapter 119B, or Head Start under the federal Improving Head Start for School 
138.11 	Readiness Act of 2007.
138.12 	(f) A child from an adjoining state whose family resides at a Minnesota address as 
138.13 	assigned by the United States Postal Service, who has received developmental screening 
138.14 	under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district, 
138.15 	and whose family meets the criteria of paragraph (a) is eligible for an early learning 
138.16 	scholarship under this section.
138.17 		Subd. 3.Administration. (a) The commissioner shall establish application 
138.18 	timelines and determine the schedule for awarding scholarships that meets operational 
138.19 	needs of eligible families and programs. The commissioner may prioritize applications 
138.20 	on factors including:
138.21 	(1) family income,;
138.22 	(2) geographic location, and;
138.23 	(3) whether the child's family is on a waiting list for a publicly funded program 
138.24 	providing early education or child care services.;
138.25 	(4) whether the child is in foster care or otherwise a child in need of protection or 
138.26 	services; and
138.27 	(5) whether the child's family has experienced homelessness in the last 24 months.
138.28 	(b) For fiscal years 2014 and 2015 only, scholarships may not exceed $5,000 per year 
138.29 	for each eligible child. For fiscal year 2016 and later, the commissioner shall establish 
138.30 	a target for the average scholarship amount per child based on the results of the rate 
138.31 	survey conducted under section 119B.02. The commissioner may award a scholarship 
138.32 	in excess of this amount to a child who qualifies for priority enrollment under paragraph 
138.33 	(a), clause (4) or (5).
138.34 	(c) A four-star rated program that has children eligible for a scholarship enrolled 
138.35 	in or on a waiting list for a program beginning in July, August, or September may notify 
138.36 	the commissioner, in the form and manner prescribed by the commissioner, each year of 
139.1 	the program's desire to enhance program services or and to serve more children than 
139.2 	current funding provides. The commissioner may designate a predetermined number of 
139.3 	scholarship slots for that program and notify the program of that number. Beginning July 
139.4 	1, 2016, a school district or Head Start program qualifying under this paragraph, a licensed 
139.5 	child care center, or a family child care provider may use its established registration 
139.6 	process to enroll scholarship recipients and may verify a scholarship recipient's family 
139.7 	income in the same manner as for other program participants. Scholarships awarded under 
139.8 	this section must be paid to the eligible program provider designated by the award recipient 
139.9 	and must be transferred to another eligible program provider at the recipient's request.
139.10 	(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has 
139.11 	not been accepted and subsequently enrolled in a rated program within ten months of the 
139.12 	awarding of the scholarship, the scholarship cancels and the recipient must reapply in 
139.13 	order to be eligible for another scholarship. A child may not be awarded more than one 
139.14 	scholarship in a 12-month period.
139.15 	(e) A child who receives a scholarship who has not completed development 
139.16 	screening under sections 121A.16 to 121A.19 must complete that screening within 90 
139.17 	days of first attending an eligible program.
139.18 	(f) For fiscal year 20172018 and later, a school district or Head Start program 
139.19 	enrolling scholarship recipients under paragraph (c) may apply to the commissioner, in 
139.20 	the form and manner prescribed by the commissioner, for direct payment of state aid. 
139.21 	Upon receipt of the application, the commissioner must pay each program directly for 
139.22 	each approved scholarship recipient enrolled under paragraph (c) according to the metered 
139.23 	payment system or another schedule established by the commissioner. the total amount of 
139.24 	funding directly allocated to a program under paragraph (c) must not exceed the amount 
139.25 	directly awarded to that program in fiscal year 2017.
139.26 		Subd. 4.Early childhood program eligibility. (a) In order to be eligible to accept 
139.27 	an early learning scholarship, a program must:
139.28 	(1) participate in the quality rating and improvement system under section 
139.29 	124D.142; and
139.30 	(2) beginning July 1, 2016 2020, have a three- or four-star rating in the quality 
139.31 	rating and improvement system.
139.32 	(b) Any program accepting scholarships must use the revenue to supplement and not 
139.33 	supplant federal funding.
139.34 	(c) Notwithstanding paragraph (a), all Minnesota early learning foundation 
139.35 	scholarship program pilot sites are eligible to accept an early learning scholarship under 
139.36 	this section.
140.1 	(d) Notwithstanding paragraph (a), beginning September 1, 2016, a qualifying newly 
140.2 	opened program carries the rating of its affiliated program for its first two years of operation.
140.3 	(e) For purposes of this subdivision, "qualifying newly opened program" means 
140.4 	a program in its first two years of operation actively pursuing a rating whose on-site 
140.5 	director has experience operating a three- or four-star rated program, and "affiliated 
140.6 	program" means a program with which the newly opened program shares an ownership or 
140.7 	management interest or is otherwise structurally linked.
140.8 		Subd. 5.Report required. The commissioner shall contract with an independent 
140.9 	contractor to evaluate the early learning scholarship program. The evaluation must 
140.10 	include recommendations regarding the appropriate scholarship amount, efficiency, and 
140.11 	effectiveness of the administration, and impact on kindergarten readiness. By January 
140.12 	15, 2016, the commissioner shall submit a written copy of the evaluation to the chairs 
140.13 	and ranking minority members of the legislative committees and divisions with primary 
140.14 	jurisdiction over kindergarten through grade 12 education.

140.15 	EFFECTIVE DATE.  This section is effective July 1, 2016.

140.16 	Sec. 13. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 7, 
140.17 	is amended to read:
140.18 		Subd. 7.Parent-child home program. For a grant to the parent-child home 
140.19 	program:

140.20		$
	350,000
	.....
	2016
	
140.21
140.22		$
	350,000
2,350,000
	.....
	2017
	
140.23 	The grant must be used for an evidence-based and research-validated early childhood 
140.24 	literacy and school readiness program for children ages 16 months to four years at its 
140.25 	existing suburban program location. The program must include urban and rural program 
140.26 	locations for fiscal years 2016 and 2017. 
140.27 	The base appropriation for this program for fiscal year 2018 and later is $350,000. 
140.28 	The 2017 appropriation is available until June 30, 2019.
140.29 	To the extent practicable, the parent-child home program is encouraged to expend 
140.30 	the fiscal year 2017 appropriation equally over fiscal years 2017, 2018, and 2019.

140.31 	Sec. 14. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 9, 
140.32 	is amended to read:
140.33 		Subd. 9.Quality Rating System. For transfer to the commissioner of human 
140.34 	services for the purposes of expanding the Quality Rating and Improvement System under 
141.1 	Minnesota Statutes, section 124D.142, in greater Minnesota and increasing supports for 
141.2 	providers participating in the Quality Rating and Improvement System:

141.3		$
	1,200,000
	.....
	2016
	
141.4
141.5		$
	2,300,000
4,300,000
	.....
	2017
	
141.6 	To the extent possible, the commissioner must direct at least $2,000,000 of the 2017 
141.7 	appropriation toward increasing access and providing training assistance to providers who 
141.8 	are located in underserved or low-income neighborhoods.
141.9 	Any balance in the first year does not cancel but is available in the second year. The 
141.10 	base for this program in fiscal year 2018 and later is $1,750,000.

141.11 	EFFECTIVE DATE.  This section is effective July 1, 2016.

141.12 	Sec. 15. REPORT ON EARLY CHILDHOOD PROGRAM PROVIDERS.
 141.13 	The Department of Education, in coordination with the Department of Human 
141.14 	Services, must provide a report to the legislature by February 15, 2017, summarizing 
141.15 	available data collected on the demographics of early childhood providers and other early 
141.16 	childhood program staff, administrators, and board members.

141.17 	Sec. 16. APPROPRIATION.
 141.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
141.19 	appropriated from the general fund to the commissioner of education for the fiscal year 
141.20 	designated.
141.21 		Subd. 2.St. Cloud preschool pilot program. For a grant to Independent School 
141.22 	District No. 742, St. Cloud, to establish a preschool pilot program targeting low-income 
141.23 	students and English language learners.

141.24		$
	430,000
	.....
	2017
	
141.25 	Funds appropriated in this section are to be used to create morning and afternoon 
141.26 	preschool sections, serving at least 90 students from families with low income or 
141.27 	from families where English is not the primary language spoken in the child's home 
141.28 	environment. The funds appropriated under this section may be used to purchase 
141.29 	developmentally appropriate furniture and materials, instructional materials, and 
141.30 	curriculum materials; hire and train teachers and staff; and offset transportation costs.
141.31 	Independent School District No. 742, St. Cloud, must submit an annual report by 
141.32 	January 15 of 2017, 2018, and 2019, describing the activities undertaken and outcomes 
142.1 	achieved with this grant. The 2019 report must contain recommendations for other 
142.2 	districts interested in similar prekindergarten programs.
142.3 	This is a onetime appropriation. The fiscal year 2017 appropriation is available 
142.4 	until June 30, 2019.

142.5 	ARTICLE 13
142.6 	SELF-SUFFICIENCY AND LIFELONG LEARNING

142.7 	Section 1. Minnesota Statutes 2014, section 124D.52, subdivision 1, is amended to read:
142.8 		Subdivision 1.Program requirements. (a) An adult basic education program is 
142.9 	a day or evening program offered by a district that is for people over 16 years of age
142.10 	who do not attend an elementary or secondary school and are not subject to compulsory 
142.11 	attendance. The program offers academic and English language instruction necessary to 
142.12 	earn a high school diploma or equivalency certificate.
142.13 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
142.14 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
142.15 	based on a family's income, but must waive the fee for participants who are under the age 
142.16 	of 21 or unable to pay. The fees charged must be designed to enable individuals of all 
142.17 	socioeconomic levels to participate in the program. A program may charge a security 
142.18 	deposit to assure return of materials, supplies, and equipment.
142.19 	(c) Each approved adult basic education program must develop a memorandum of 
142.20 	understanding with the local workforce development centers located in the approved 
142.21 	program's service delivery area. The memorandum of understanding must describe how 
142.22 	the adult basic education program and the workforce development centers will cooperate 
142.23 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
142.24 	(d) Adult basic education aid must be spent for adult basic education purposes as 
142.25 	specified in sections 124D.518 to 124D.531.
142.26 	(e) A state-approved adult basic education program must count and submit student 
142.27 	contact hours for a program that offers high school credit toward an adult high school 
142.28 	diploma according to student eligibility requirements and measures of student progress 
142.29 	toward work-based competency and, where appropriate, English language proficiency 
142.30 	requirements established by the commissioner and posted on the department Web site in 
142.31 	a readily accessible location and format.

142.32 	Sec. 2. Minnesota Statutes 2014, section 124D.52, subdivision 2, is amended to read:
142.33 		Subd. 2.Program approval. (a) To receive aid under this section, a district, a 
142.34 	consortium of districts, the Department of Corrections, or a private nonprofit organization, 
143.1 	or a consortium including districts, nonprofit organizations, or both must submit an 
143.2 	application by June 1 describing the program, on a form provided by the department. The 
143.3 	program must be approved by the commissioner according to the following criteria:
143.4 	(1) how the needs of different levels of learning and English language proficiency 
143.5 	will be met;
143.6 	(2) for continuing programs, an evaluation of results;
143.7 	(3) anticipated number and education level of participants;
143.8 	(4) coordination with other resources and services;
143.9 	(5) participation in a consortium, if any, and money available from other participants;
143.10 	(6) management and program design;
143.11 	(7) volunteer training and use of volunteers;
143.12 	(8) staff development services;
143.13 	(9) program sites and schedules;
143.14 	(10) program expenditures that qualify for aid;
143.15 	(11) program ability to provide data related to learner outcomes as required by 
143.16 	law; and
143.17 	(12) a copy of the memorandum of understanding described in subdivision 1 
143.18 	submitted to the commissioner.
143.19 	(b) Adult basic education programs may be approved under this subdivision for 
143.20 	up to five years. Five-year program approval must be granted to an applicant who has 
143.21 	demonstrated the capacity to:
143.22 	(1) offer comprehensive learning opportunities and support service choices 
143.23 	appropriate for and accessible to adults at all basic skill and English language levels of need;
143.24 	(2) provide a participatory and experiential learning approach based on the strengths, 
143.25 	interests, and needs of each adult, that enables adults with basic skill needs to:
143.26 	(i) identify, plan for, and evaluate their own progress toward achieving their defined 
143.27 	educational and occupational goals;
143.28 	(ii) master the basic academic reading, writing, and computational skills, as well 
143.29 	as the problem-solving, decision making, interpersonal effectiveness, and other life and 
143.30 	learning skills they need to function effectively in a changing society;
143.31 	(iii) locate and be able to use the health, governmental, and social services and 
143.32 	resources they need to improve their own and their families' lives; and
143.33 	(iv) continue their education, if they desire, to at least the level of secondary school 
143.34 	completion, with the ability to secure and benefit from continuing education that will 
143.35 	enable them to become more employable, productive, and responsible citizens;
144.1 	(3) plan, coordinate, and develop cooperative agreements with community resources 
144.2 	to address the needs that the adults have for support services, such as transportation, English 
144.3 	language learning, flexible course scheduling, convenient class locations, and child care;
144.4 	(4) collaborate with business, industry, labor unions, and employment-training 
144.5 	agencies, as well as with family and occupational education providers, to arrange for 
144.6 	resources and services through which adults can attain economic self-sufficiency;
144.7 	(5) provide sensitive and well trained adult education personnel who participate in 
144.8 	local, regional, and statewide adult basic education staff development events to master 
144.9 	effective adult learning and teaching techniques;
144.10 	(6) participate in regional adult basic education peer program reviews and evaluations;
144.11 	(7) submit accurate and timely performance and fiscal reports;
144.12 	(8) submit accurate and timely reports related to program outcomes and learner 
144.13 	follow-up information; and
144.14 	(9) spend adult basic education aid on adult basic education purposes only, which 
144.15 	are specified in sections 124D.518 to 124D.531.
144.16 	(c) The commissioner shall require each district to provide notification by February 
144.17 	1, 2001, of its intent to apply for funds under this section as a single district or as part of 
144.18 	an identified consortium of districts. A district receiving funds under this section must 
144.19 	notify the commissioner by February 1 of its intent to change its application status for 
144.20 	applications due the following June 1.

144.21 	Sec. 3. Minnesota Statutes 2014, section 124D.55, is amended to read:
144.22 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
144.23 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
144.24 	individual for the full battery of a general education development (GED) test tests, but not 
144.25 	more than $40 for an eligible individual.
144.26 	For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged 
144.27 	to an eligible individual for the full battery of general education development (GED) tests, 
144.28 	but not more than the cost of one full battery of tests per year for any individual.

144.29 	Sec. 4. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 3, 
144.30 	is amended to read:
144.31 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests under 
144.32 	Minnesota Statutes, section 124D.55:

145.1		$
	125,000
	.....
	2016
	
145.2
145.3		$
	125,000
245,000
	.....
	2017
	
145.4 	The base appropriation for fiscal year 2018 and later is $125,000.

145.5 	Sec. 5. APPROPRIATIONS.
 145.6 		Subdivision 1.Department of Education. The sums indicated in this section are 
145.7 	appropriated from the general fund to the commissioner of education for the fiscal years 
145.8 	designated.
145.9 		Subd. 2.Adult basic education. For a grant for additional adult basic aid:

145.10		$
	400,000
	.....
	2017
	
145.11 	The International Education Center, the American Indian Opportunities 
145.12 	Industrialization Center, and the Minnesota Office of Communication Service for the Deaf 
145.13 	are eligible for additional adult basic education aid for innovative programs for fiscal year 
145.14 	2017 only. The onetime aid for each organization equals $400,000 times the ratio of the 
145.15 	organization's number of students served for the previous fiscal year to the sum of the 
145.16 	three organizations' number of students served for the previous fiscal year.
145.17 	This is a onetime appropriation.

145.18 	ARTICLE 14
145.19 	STATE AGENCIES

145.20 	Section 1. Minnesota Statutes 2014, section 122A.14, subdivision 9, is amended to read:
145.21 		Subd. 9. Fee. Each person licensed by the Board of School Administrators shall pay 
145.22 	the board a fee of $75, collected each fiscal year. When transmitting notice of the license 
145.23 	fee, the board also must notify the licensee of the penalty for failing to pay the fee within 
145.24 	the time specified by the board. The board may provide a lower fee for persons on retired 
145.25 	or inactive status. After receiving notice from the board, any licensed school administrator 
145.26 	who does not pay the fee in the given fiscal year shall have all administrative licenses held 
145.27 	by the person automatically suspended, without the right to a hearing, until the fee has been 
145.28 	paid to the board. If the board suspends a licensed school administrator for failing to pay 
145.29 	the fee, it must immediately notify the district currently employing the school administrator 
145.30 	of the school administrator's suspension. The executive secretary shall deposit the fees in 
145.31 	the educator licensure account in the special revenue fund in the state treasury.

145.32 	EFFECTIVE DATE. This section is effective July 1, 2016.

146.1 	Sec. 2. Minnesota Statutes 2014, section 122A.18, subdivision 7c, is amended to read:
146.2 		Subd. 7c.Temporary military license. The Board of Teaching shall establish 
146.3 	a temporary license in accordance with section 197.4552 for teaching. The fee for a 
146.4 	temporary license under this subdivision shall be $87.90 for an online application or 
146.5 	$86.40 for a paper application. The board must deposit the fees received from applicants 
146.6 	in the educator licensure account in the special revenue fund.

146.7 	EFFECTIVE DATE. This section is effective July 1, 2016.

146.8 	Sec. 3. Minnesota Statutes 2014, section 122A.18, subdivision 8, is amended to read:
146.9 		Subd. 8.Background checks. (a) The Board of Teaching and the commissioner 
146.10 	of education must request a criminal history background check from the superintendent 
146.11 	of the Bureau of Criminal Apprehension on all applicants for initial licenses under their 
146.12 	jurisdiction. An application for a license under this section must be accompanied by:
146.13 	(1) an executed criminal history consent form, including fingerprints; and
146.14 	(2) a money order or cashier's check payable to the Bureau of Criminal Apprehension 
146.15 	for the fee for conducting payment to conduct the criminal history background check. The 
146.16 	Board of Teaching and the commissioner of education must deposit payments received 
146.17 	under this subdivision in the educator licensure background check account in the special 
146.18 	revenue fund.
146.19 	(b) The superintendent of the Bureau of Criminal Apprehension shall perform the 
146.20 	background check required under paragraph (a) by retrieving criminal history data as 
146.21 	defined in section 13.87 and shall also conduct a search of the national criminal records 
146.22 	repository. The superintendent is authorized to exchange fingerprints with the Federal 
146.23 	Bureau of Investigation for purposes of the criminal history check. The superintendent 
146.24 	shall recover the cost to the bureau of a background check through the fee charged to 
146.25 	the applicant under paragraph (a).
146.26 	(c) The Board of Teaching or the commissioner of education may issue a license 
146.27 	pending completion of a background check under this subdivision, but must notify 
146.28 	the individual that the individual's license may be revoked based on the result of the 
146.29 	background check.

146.30 	EFFECTIVE DATE. This section is effective July 1, 2016.

146.31 	Sec. 4. [122A.185] SPECIAL REVENUE FUND ACCOUNTS; EDUCATOR 
146.32 	LICENSURE AND BACKGROUND CHECKS.
147.1 		Subdivision 1.Educator licensure account. An educator licensure account is 
147.2 	created in the special revenue fund. Applicant licensure fees received by the Department 
147.3 	of Education, the Board of Teaching, or the Board of School Administrators must be 
147.4 	deposited in the educator licensure account. Any funds appropriated from this account 
147.5 	that remain unexpended at the end of the biennium cancel to the educator licensure 
147.6 	account in the special revenue fund.
147.7 		Subd. 2.Background check account. An educator licensure background check 
147.8 	account is created in the special revenue fund. The Department of Education, the Board of 
147.9 	Teaching, and the Board of School Administrators must deposit all payments submitted by 
147.10 	license applicants for criminal background checks conducted by the Bureau of Criminal 
147.11 	Apprehension in the educator licensure background check account. Amounts in the 
147.12 	account are annually appropriated to the commissioner of education for payment to the 
147.13 	superintendent of the Bureau of Criminal Apprehension for the costs of background 
147.14 	checks on applicants for licensure.

147.15 	EFFECTIVE DATE. This section is effective July 1, 2016.

147.16 	Sec. 5. Minnesota Statutes 2014, section 122A.21, subdivision 1, is amended to read:
147.17 		Subdivision 1.Licensure applications. Each applicant submitting an application 
147.18 	for the issuance, renewal, or extension of to the Board of Teaching to issue, renew, or 
147.19 	extend a teaching license to teach, including applications for licensure via portfolio under 
147.20 	subdivision 2, must be accompanied by include a processing fee of $57. Each application 
147.21 	for issuing, renewing, or extending the license of a school administrator or supervisor 
147.22 	must be accompanied by a processing fee in the amount set by the Board of Teaching. The 
147.23 	processing fee for a teacher's license and for the licenses of supervisory personnel must 
147.24 	be paid to the executive secretary of the appropriate board and deposited in the educator 
147.25 	licensure account in the special revenue fund. The executive secretary of the board shall 
147.26 	deposit the fees with the commissioner of management and budget. The fees as set by the 
147.27 	board are nonrefundable for applicants not qualifying for a license. However, a fee must 
147.28 	be refunded by the commissioner of management and budget must refund a fee in any 
147.29 	case in which the applicant already holds a valid unexpired license. The board may waive 
147.30 	or reduce fees for applicants who apply at the same time for more than one license.

147.31 	EFFECTIVE DATE. This section is effective July 1, 2016.

147.32 	Sec. 6. Minnesota Statutes 2015 Supplement, section 122A.21, subdivision 2, is 
147.33 	amended to read:
148.1 		Subd. 2.Licensure via portfolio. (a) An eligible candidate may use licensure via 
148.2 	portfolio to obtain an initial licensure or to add a licensure field, consistent with applicable 
148.3 	Board of Teaching licensure rules.
148.4 	(b) A candidate for initial licensure must submit to the Educator Licensing Division 
148.5 	at the department one portfolio demonstrating pedagogical competence and one portfolio 
148.6 	demonstrating content competence.
148.7 	(c) A candidate seeking to add a licensure field must submit to the Educator 
148.8 	Licensing Division at the department one portfolio demonstrating content competence.
148.9 	(d) The Board of Teaching must notify a candidate who submits a portfolio under 
148.10 	paragraph (b) or (c) within 90 calendar days after the portfolio is received whether or not 
148.11 	the portfolio was approved. If the portfolio was not approved, the board must immediately 
148.12 	inform the candidate how to revise the portfolio to successfully demonstrate the requisite 
148.13 	competence. The candidate may resubmit a revised portfolio at any time and the Educator 
148.14 	Licensing Division at the department must approve or disapprove the portfolio within 
148.15 	60 calendar days of receiving it.
148.16 	(e) A candidate must pay to the executive secretary of the Board of Teaching a $300 
148.17 	fee for the first portfolio submitted for review and a $200 fee for any portfolio submitted 
148.18 	subsequently. The candidate must pay the fees must be paid to the executive secretary 
148.19 	of the Board of Teaching. The revenue generated from Board of Teaching executive 
148.20 	secretary must deposit the fee must be deposited in an education the educator licensure 
148.21 	portfolio account in the special revenue fund. The fees set by the Board of Teaching are 
148.22 	nonrefundable for applicants not qualifying for a license. The Board of Teaching may 
148.23 	waive or reduce fees for candidates based on financial need.

148.24 	EFFECTIVE DATE. This section is effective July 1, 2016.

148.25 	Sec. 7. Minnesota Statutes 2014, section 122A.21, is amended by adding a subdivision 
148.26 	to read:
148.27 		Subd. 3.Annual appropriations. The amounts collected under subdivision 2 
148.28 	and deposited in the educator licensure account in the special revenue fund are annually 
148.29 	appropriated to the Board of Teaching.

148.30 	EFFECTIVE DATE. This section is effective July 1, 2016.

148.31 	Sec. 8. Minnesota Statutes 2015 Supplement, section 122A.415, subdivision 3, is 
148.32 	amended to read:
149.1 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, cooperatives, 
149.2 	school sites, or charter schools with approved applications must receive alternative 
149.3 	compensation revenue for each school year that the district, intermediate school district, 
149.4 	cooperative, school site, or charter school implements an alternative teacher professional 
149.5 	pay system under this subdivision and section 122A.414. A qualifying district, intermediate 
149.6 	school district, cooperative, school site, or charter school that received alternative teacher 
149.7 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
149.8 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
149.9 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
149.10 	the district, intermediate school district, cooperative, school site, or charter school submits 
149.11 	a timely application and the commissioner determines that the district, intermediate school 
149.12 	district, cooperative, school site, or charter school continues to implement an alternative 
149.13 	teacher professional pay system, consistent with its application under this section.
149.14 	(b) The commissioner shall approve applications that comply with subdivision 1, 
149.15 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
149.16 	school or cooperative, in the order in which they are received, select applicants that 
149.17 	qualify for this program, notify school districts, intermediate school districts, cooperatives, 
149.18 	school sites, and charter schools about the program, develop and disseminate application 
149.19 	materials, and carry out other activities needed to implement this section.
149.20 	(c) A school district, intermediate school district, cooperative, school site, or charter 
149.21 	school with an approved application and a written notice from the commissioner that the 
149.22 	district qualifies for its first year of alternative compensation revenue must receive revenue 
149.23 	for that year according to section 127A.41, subdivision 2.

149.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
149.25 	and later.

149.26 	Sec. 9. Minnesota Statutes 2014, section 127A.41, subdivision 2, is amended to read:
149.27 		Subd. 2.Errors in distribution. (a) On determining that the amount of state aid 
149.28 	distributed to a school district is in error, the commissioner is authorized to adjust the 
149.29 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
149.30 	in excess of the school district's entitlement, the commissioner is authorized to recover 
149.31 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
149.32 	designated by the appropriation, the excess may be recovered by reducing future aid 
149.33 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
149.34 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
149.35 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
150.1 	and reporting standards pursuant to sections 123B.75 to 123B.83. Notwithstanding the 
150.2 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
150.3 	is less than the school district's entitlement, the commissioner is authorized to increase 
150.4 	such aid from the current appropriation. If the aid program has been discontinued and has 
150.5 	no appropriation, the appropriation for general education shall be used for recovery or 
150.6 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
150.7 	shall be canceled to the state general fund.
150.8 	(b) If the commissioner determines that an error in aid payments to a school under 
150.9 	section 122A.415, subdivision 3, paragraph (c), cannot be corrected under this section, 
150.10 	the commissioner must transfer the necessary funds and make those payments from the 
150.11 	Department of Education's annual operating budget.

150.12 	EFFECTIVE DATE. This section is effective the day following final enactment for 
150.13 	aid adjustments for fiscal year 2016 and later.

150.14 	Sec. 10. Laws 2015, First Special Session chapter 3, article 12, section 4, is amended 
150.15 	to read:
150.16 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 150.17 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
150.18 	indicated in this section are appropriated from the general fund to the Department of 
150.19 	Education for the fiscal years designated.
150.20 		Subd. 2.Department. (a) For the Department of Education:

150.21		$  
	21,246,000
	.....
	2016
	
150.22
150.23		$  
	21,973,000
20,075,000
	.....
	2017
	
150.24 	(b) The fiscal year 2017 appropriation includes $19,173,000 from the general fund 
150.25 	and $916,000 is from the educator licensure account in the special revenue fund.
150.26 	Of these amounts: 
150.27 	(1) $718,000 each in fiscal year 2016 is for the Board of Teaching;
150.28 	(2) $228,000 in fiscal year 2016 and $231,000 in fiscal year 2017 are is for the 
150.29 	Board of School Administrators;
150.30 	(3) $1,000,000 each in fiscal year 2016 only is for Regional Centers of Excellence 
150.31 	under Minnesota Statutes, section 120B.115;
150.32 	(4) $500,000 each year is for the School Safety Technical Assistance Center under 
150.33 	Minnesota Statutes, section 127A.052; 
150.34 	(5) $250,000 each year is for the School Finance Division to enhance financial 
150.35 	data analysis; and
151.1 	(6) $441,000 in fiscal year 2016 and $720,000 in fiscal year 2017 is for implementing 
151.2 	Laws 2014, chapter 272, article 1, Minnesota's Learning for English Academic Proficiency 
151.3 	and Success Act, as amended.
151.4 	(b)
151.5 	(c) Any balance in the first year does not cancel but is available in the second year. 
151.6 	(c) (d) None of the amounts appropriated under this subdivision may be used for 
151.7 	Minnesota's Washington, D.C. office.
151.8 	(d) (e) The expenditures of federal grants and aids as shown in the biennial budget 
151.9 	document and its supplements are approved and appropriated and shall be spent as 
151.10 	indicated.
151.11 	(e) (f) This appropriation includes funds for information technology project services 
151.12 	and support subject to the provisions of Minnesota Statutes, section 16E.0466. Any 
151.13 	ongoing information technology costs will be incorporated into the service level agreement 
151.14 	and will be paid to the Office of MN.IT Services by the Department of Education under 
151.15 	the rates and mechanism specified in that agreement.
151.16 	(f) (g) If a school qualifying for aid under Minnesota Statutes, section 122A.415, 
151.17 	subdivision 3, paragraph (c), does not receive aid under that section or Minnesota Statutes, 
151.18 	section 127A.41, subdivision 2, paragraph (b), the commissioner must transfer the 
151.19 	amounts necessary to make these payments from the agency appropriation in paragraph 
151.20 	(a) to the appropriation for alternative compensation revenue.
151.21 	(h) $51,000 in fiscal year 2017 is for agency compliance.
151.22 	(i) The agency's base budget in fiscal year 2018 is $21,973,000 $20,024,000. The 
151.23 	agency's base budget in fiscal year 2019 is $21,948,000 $19,999,000.

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

151.25 	Sec. 11. TRANSFERS.
 151.26 		Subdivision 1.Portfolio account. On July 1, 2016, the commissioner of management 
151.27 	and budget shall transfer any balances in the educator licensure portfolio account in the 
151.28 	special revenue fund to the educator licensure account in the special revenue fund.
151.29 		Subd. 2.Background check. Any balance in an account that holds fees collected 
151.30 	under Minnesota Statutes, section 122A.18, subdivision 8, is transferred to the educator 
151.31 	licensure background check account in the special revenue fund under Minnesota Statutes, 
151.32 	section 122A.185, subdivision 2. On July 2, 2016, $80,000 is transferred from the 
151.33 	education licensure background check account in the special revenue fund to the educator 
151.34 	licensure account in the special revenue fund.

152.1 	Sec. 12. APPROPRIATION; BOARD OF TEACHING.
 152.2 	$718,000 in fiscal year 2017 is appropriated from the educator licensure account in 
152.3 	the special revenue fund to the Board of Teaching. 

152.4 	Sec. 13. APPROPRIATION; BOARD OF SCHOOL ADMINISTRATORS.
 152.5 	$231,000 in fiscal year 2017 is appropriated from the educator licensure account in 
152.6 	the special revenue fund to the Board of School Administrators.

152.7 	ARTICLE 15
152.8 	FORECAST ADJUSTMENTS

152.9 	Section 1. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 
152.10 	4, is amended to read:
152.11 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
152.12 	127A.49:

152.13
152.14		$
	2,740,000
3,051,000
	.....
	2016
	
152.15
152.16		$
	2,932,000
3,425,000
	.....
	2017
	
152.17 	The 2016 appropriation includes $278,000 for 2015 and $2,462,000 $2,773,000
152.18 	for 2016.
152.19 	The 2017 appropriation includes $273,000 $308,000 for 2016 and $2,659,000
152.20 	$3,117,000 for 2017.

152.21 	Sec. 2. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 5, 
152.22 	is amended to read:
152.23 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
152.24 	Statutes, section 123A.485:

152.25
152.26		$
	292,000
22,000
	.....
	2016
	
152.27
152.28		$
	165,000
0
	.....
	2017
	
152.29 	The 2016 appropriation includes $22,000 for 2015 and $270,000 $0 for 2016.
152.30 	The 2017 appropriation includes $30,000 $0 for 2016 and $135,000 $0 for 2017.

152.31 	Sec. 3. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 6, 
152.32 	is amended to read:
153.1 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
153.2 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

153.3
153.4		$ 
	16,881,000
16,759,000
	.....
	2016
	
153.5
153.6		$ 
	17,460,000
17,235,000
	.....
	2017
	
153.7 	The 2016 appropriation includes $1,575,000 for 2015 and $15,306,000 $15,184,000
153.8 	for 2016.
153.9 	The 2017 appropriation includes $1,700,000 $1,687,000 for 2016 and $15,760,000
153.10 	$15,548,000 for 2017.

153.11 	Sec. 4. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 7, 
153.12 	is amended to read:
153.13 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
153.14 	under Minnesota Statutes, section 123B.92, subdivision 9:

153.15
153.16		$ 
	17,654,000
17,673,000
	.....
	2016
	
153.17
153.18		$ 
	17,792,000
18,103,000
	.....
	2017
	
153.19 	The 2016 appropriation includes $1,816,000 for 2015 and $15,838,000 $15,857,000
153.20 	for 2016.
153.21 	The 2017 appropriation includes $1,759,000 $1,761,000 for 2016 and $16,033,000
153.22 	$16,342,000 for 2017.

153.23 	Sec. 5. Laws 2015, First Special Session chapter 3, article 1, section 27, subdivision 9, 
153.24 	is amended to read:
153.25 		Subd. 9.Career and technical aid. For career and technical aid under Minnesota 
153.26 	Statutes, section 124D.4531, subdivision 1b:

153.27
153.28		$
	5,420,000
5,922,000
	.....
	2016
	
153.29
153.30		$
	4,405,000
4,262,000
	.....
	2017
	
153.31 	The 2016 appropriation includes $574,000 for 2015 and $4,846,000 $5,348,000
153.32 	for 2016.
153.33 	The 2017 appropriation includes $538,000 $517,000 for 2016 and $3,867,000
153.34 	$3,745,000 for 2017.

154.1 	Sec. 6. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 3, 
154.2 	is amended to read:
154.3 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
154.4 	under Minnesota Statutes, section 124D.862:

154.5
154.6		$
	65,539,000
65,439,000
	.....
	2016
	
154.7
154.8		$
	68,745,000
69,255,000
	.....
	2017
	
154.9 	The 2016 appropriation includes $6,382,000 for 2015 and $59,157,000 $59,057,000
154.10 	for 2016.
154.11 	The 2017 appropriation includes $6,573,000 $6,561,000 for 2016 and $62,172,000
154.12 	$62,694,000 for 2017.

154.13 	Sec. 7. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 4, 
154.14 	is amended to read:
154.15 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
154.16 	Statutes, section 124D.98:

154.17
154.18		$
	44,552,000
44,538,000
	.....
	2016
	
154.19
154.20		$
	45,508,000
45,855,000
	.....
	2017
	
154.21 	The 2016 appropriation includes $4,683,000 for 2015 and $39,869,000 $39,855,000
154.22 	for 2016.
154.23 	The 2017 appropriation includes $4,429,000 $4,428,000 for 2016 and $41,079,000
154.24 	$41,427,000 for 2017.

154.25 	Sec. 8. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 5, 
154.26 	is amended to read:
154.27 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
154.28 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
154.29 	section 124D.87:

154.30
154.31		$
	15,023,000
14,423,000
	.....
	2016
	
154.32
154.33		$
	15,825,000
15,193,000
	.....
	2017

154.34 	Sec. 9. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 7, 
154.35 	is amended to read:
155.1 		Subd. 7.Tribal contract schools. For tribal contract school aid under Minnesota 
155.2 	Statutes, section 124D.83:

155.3
155.4		$ 
	4,340,000
3,539,000
	.....
	2016
	
155.5
155.6		$ 
	5,090,000
3,715,000
	.....
	2017
	
155.7 	The 2016 appropriation includes $204,000 for 2015 and $4,136,000 $3,335,000
155.8 	for 2016.
155.9 	The 2017 appropriation includes $459,000 $370,000 for 2016 and $4,631,000
155.10 	$3,345,000 for 2017.

155.11 	Sec. 10. Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 
155.12 	11, is amended to read:
155.13 		Subd. 11.American Indian education aid. For American Indian education aid 
155.14 	under Minnesota Statutes, section 124D.81, subdivision 2a:

155.15
155.16		$ 
	7,868,000
7,740,000
	.....
	2016
	
155.17
155.18		$ 
	8,875,000
8,878,000
	.....
	2017
	
155.19 	The 2016 appropriation includes $0 for 2015 and $7,868,000 $7,740,000 for 2016.
155.20 	The 2017 appropriation includes $874,000 $860,000 for 2016 and $8,001,000
155.21 	$8,018,000 for 2017.

155.22 	Sec. 11. Laws 2015, First Special Session chapter 3, article 4, section 9, subdivision 2, 
155.23 	is amended to read:
155.24 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
155.25 	Statutes, section 124D.11, subdivision 4 124E.22: 

155.26
155.27		$
	66,787,000
63,540,000
	.....
	2016
	
155.28
155.29		$
	73,603,000
69,962,000
	.....
	2017
	
155.30 	The 2016 appropriation includes $6,032,000 for 2015 and $60,755,000 $57,508,000
155.31 	for 2016.
155.32 	The 2017 appropriation includes $6,750,000 $6,389,000 for 2016 and $66,853,000
155.33 	$63,573,000 for 2017.

155.34 	Sec. 12. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
155.35 	3, is amended to read:
156.1 		Subd. 3.Travel for home-based services. For aid for teacher travel for home-based 
156.2 	services under Minnesota Statutes, section 125A.75, subdivision 1:

156.3
156.4		$
	361,000
416,000
	.....
	2016
	
156.5
156.6		$
	371,000
435,000
	.....
	2017
	
156.7 	The 2016 appropriation includes $35,000 for 2015 and $326,000 $381,000 for 2016.
156.8 	The 2017 appropriation includes $36,000 $42,000 for 2016 and $335,000 $393,000
156.9 	for 2017.

156.10 	Sec. 13. Laws 2015, First Special Session chapter 3, article 5, section 30, subdivision 
156.11 	5, is amended to read:
156.12 		Subd. 5.Aid for children with disabilities. For aid under Minnesota Statutes, 
156.13 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
156.14 	within the district boundaries for whom no district of residence can be determined:

156.15
156.16		$
	1,406,000
1,307,000
	.....
	2016
	
156.17
156.18		$
	1,629,000
1,516,000
	.....
	2017
	
156.19 	If the appropriation for either year is insufficient, the appropriation for the other 
156.20 	year is available.

156.21 	Sec. 14. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
156.22 	2, is amended to read:
156.23 		Subd. 2.Long-term maintenance equalization aid. For long-term maintenance 
156.24 	equalization aid under Minnesota Statutes, section 123B.595:

156.25		$
	0
	.....
	2016
	
156.26
156.27		$ 
	52,088,000
52,553,000
	.....
	2017
	
156.28 	The 2017 appropriation includes $0 for 2016 and $52,088,000 $52,553,000 for 2017.

156.29 	Sec. 15. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
156.30 	3, is amended to read:
156.31 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
156.32 	Statutes, section 123B.53, subdivision 6:

156.33		$
	20,349,000
	.....
	2016
	
156.34
156.35		$
	22,171,000
22,926,000
	.....
	2017
	
157.1 	The 2016 appropriation includes $2,295,000 for 2015 and $18,054,000 for 2016.
157.2 	The 2017 appropriation includes $2,005,000 for 2016 and $20,166,000 $20,921,000
157.3 	for 2017.

157.4 	Sec. 16. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
157.5 	6, is amended to read:
157.6 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
157.7 	Minnesota Statutes, section 123B.591, subdivision 4:

157.8
157.9		$
	3,520,000
3,523,000
	.....
	2016
	
157.10		$
	345,000
	.....
	2017
	
157.11 	The 2016 appropriation includes $409,000 for 2015 and $3,111,000 $3,114,000
157.12 	for 2016.
157.13 	The 2017 appropriation includes $345,000 for 2016 and $0 for 2017.

157.14 	Sec. 17. Laws 2015, First Special Session chapter 3, article 6, section 13, subdivision 
157.15 	7, is amended to read:
157.16 		Subd. 7.Health and safety revenue. For health and safety aid according to 
157.17 	Minnesota Statutes, section 123B.57, subdivision 5:

157.18
157.19		$
	501,000
588,000
	.....
	2016
	
157.20
157.21		$
	48,000
57,000
	.....
	2017
	
157.22 	The 2016 appropriation includes $66,000 for 2015 and $435,000 $522,000 for 2016.
157.23 	The 2017 appropriation includes $48,000 $57,000 for 2016 and $0 for 2017.

157.24 	Sec. 18. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 2, 
157.25 	is amended to read:
157.26 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
157.27 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

157.28
157.29		$
	15,661,000
16,251,000
	.....
	2016
	
157.30
157.31		$
	15,818,000
16,739,000
	.....
	2017

157.32 	Sec. 19. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 3, 
157.33 	is amended to read:
158.1 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
158.2 	Statutes, section 124D.1158:

158.3
158.4		$
	9,731,000
9,457,000
	.....
	2016
	
158.5
158.6		$
	10,361,000
10,149,000
	.....
	2017

158.7 	Sec. 20. Laws 2015, First Special Session chapter 3, article 7, section 7, subdivision 4, 
158.8 	is amended to read:
158.9 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
158.10 	section 124D.118:

158.11
158.12		$
	942,000
788,000
	.....
	2016
	
158.13
158.14		$
	942,000
788,000
	.....
	2017

158.15 	Sec. 21. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 5, 
158.16 	is amended to read:
158.17 		Subd. 5.Early childhood family education aid. For early childhood family 
158.18 	education aid under Minnesota Statutes, section 124D.135:

158.19
158.20		$ 
	28,444,000
27,948,000
	.....
	2016
	
158.21
158.22		$ 
	29,939,000
29,336,000
	.....
	2017
	
158.23 	The 2016 appropriation includes $2,713,000 for 2015 and $25,731,000 $25,235,000
158.24 	for 2016.
158.25 	The 2017 appropriation includes $2,858,000 $2,803,000 for 2016 and $27,081,000
158.26 	$26,533,000 for 2017.

158.27 	Sec. 22. Laws 2015, First Special Session chapter 3, article 9, section 8, subdivision 6, 
158.28 	is amended to read:
158.29 		Subd. 6.Developmental screening aid. For developmental screening aid under 
158.30 	Minnesota Statutes, sections 121A.17 and 121A.19:

158.31
158.32		$
	3,363,000
3,477,000
	.....
	2016
	
158.33
158.34		$
	3,369,000
3,488,000
	.....
	2017
	
158.35 	The 2016 appropriation includes $338,000 for 2015 and $3,025,000 $3,139,000
158.36 	for 2016.
159.1 	The 2017 appropriation includes $336,000 $348,000 for 2016 and $3,033,000
159.2 	$3,140,000 for 2017.

159.3 	Sec. 23. Laws 2015, First Special Session chapter 3, article 10, section 3, subdivision 
159.4 	2, is amended to read:
159.5 		Subd. 2.Community education aid. For community education aid under 
159.6 	Minnesota Statutes, section 124D.20:

159.7
159.8		$
	788,000
790,000
	.....
	2016
	
159.9159.10
		$
	554,000
553,000
	.....
	2017
	
159.11 	The 2016 appropriation includes $107,000 for 2015 and $681,000 $683,000 for 2016.
159.12 	The 2017 appropriation includes $75,000 for 2016 and $479,000 $478,000 for 2017.

159.13 	Sec. 24. Laws 2015, First Special Session chapter 3, article 11, section 3, subdivision 
159.14 	2, is amended to read:
159.15 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
159.16 	Statutes, section 124D.531:

159.17
159.18		$
	49,118,000
48,231,000
	.....
	2016
	
159.19
159.20		$
	50,592,000
49,683,000
	.....
	2017
	
159.21 	The 2016 appropriation includes $4,782,000 for 2015 and $44,336,000 $43,449,000
159.22 	for 2016.
159.23 	The 2017 appropriation includes $4,926,000 $4,827,000 for 2016 and $45,666,000
159.24 	$44,856,000 for 2017.