1.1 	A bill for an act
1.2 	relating to education; providing for a school site
1.3 	governance program; proposing coding for new law in
1.4 	Minnesota Statutes, chapter 123B.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [123B.042] SCHOOL SITE GOVERNANCE PROGRAM.
1.7 		Subdivision 1.Establishment. A school site governance
1.8 	program is established to provide schools with more authority
1.9 	and flexibility in teaching and providing services to students
1.10 	at the school site.
1.11 		Subd. 2.Site decision-making team. To participate in
1.12 	the program, a school must form a site decision-making team
1.13 	under section 123B.04, subdivision 2, paragraph (a).  The team
1.14 	shall also adopt a policy detailing how it will delegate
1.15 	authority and responsibilities among its members.
1.16 	By January 1, the school site decision-making team shall
1.17 	notify the school board of its intent to participate in the
1.18 	program for the school year beginning after September 1 of that
1.19 	year.
1.20 		Subd. 3.Duties; revenue. (a) A school site
1.21 	decision-making team participating in this program has all the
1.22 	powers and duties of the school board and retains control of the
1.23 	revenue and determines its use as necessary to operate the
1.24 	school.  The school site decision-making team must enter into an
1.25 	agreement with the local school board describing any powers,
2.1 	duties, authority, and responsibilities that the decision-making
2.2 	team delegates to the school board.  Revenue for a fiscal year
2.3 	received or receivable by the district and that the district
2.4 	would expend for the particular school site participating in the
2.5 	program is allocated to that school site.  All other district
2.6 	revenue not reserved for other purposes must be proportionately
2.7 	allocated to the site based on the site's pupil count.  Any
2.8 	power, duty, authority, and responsibility not expressly
2.9 	delegated by the decision-making team to the school board shall
2.10 	remain with the school site decision-making team.  The district
2.11 	shall maintain an account for each school site participating in
2.12 	the program.
2.13 	(b) The school site decision-making team shall comply with
2.14 	section 13D.04, subdivision 1.
2.15 	(c) Notwithstanding any law to the contrary, a school site
2.16 	participating in the program under this section may legally
2.17 	enter into a contract and expend funds as if it were a school
2.18 	district.  Any contract entered into by the school site may not
2.19 	exceed the duration of the school site's participation in the
2.20 	program.
2.21 		Subd. 4.Employees. The employees of the school site
2.22 	remain employees of the school district for salary, benefits,
2.23 	seniority, retirement, and other personnel issues, except that,
2.24 	notwithstanding any law or agreement to the contrary, the school
2.25 	site decision-making team determines who is selected or
2.26 	transferred within the district into licensed and nonlicensed
2.27 	positions at the school site, including the position of
2.28 	principal or other person having general control and supervision
2.29 	of the school.  When negotiating a new contract under chapter
2.30 	179A, an exclusive representative and school board must provide
2.31 	for the employees of a school site participating in the program
2.32 	under this section.
2.33 		Subd. 5.Performance agreements. Prior to implementing
2.34 	the agreement with the school board under subdivision 2, the
2.35 	school site decision-making team shall enter into a performance
2.36 	agreement with the school board.  The agreement shall include:
3.1 	(1) the previous year's baseline information at the site
3.2 	regarding student achievement based on:
3.3 	(i) aggregated and disaggregated statewide testing data;
3.4 	(ii) other nationally normed standardized tests;
3.5 	(iii) student attendance; and 
3.6 	(iv) dropout rates and graduation rates, where applicable;
3.7 	(2) the expected levels of improvement in selected areas of
3.8 	student performance during the next year;
3.9 	(3) how student performance will be measured, including
3.10 	assessment procedures required by law and rule;
3.11 	(4) other performance expectations and measures agreed upon
3.12 	by the school site and school board;
3.13 	(5) the frequency of reporting by the school site to the
3.14 	school board; and 
3.15 	(6) how the performance results will be made available to
3.16 	parents and the public.
3.17 	The term of an agreement shall be for no more than two
3.18 	years.
3.19 	If the school site decision-making team and school board
3.20 	cannot agree on the provisions of a performance agreement as
3.21 	required under this subdivision, either party may request
3.22 	assistance from the commissioner of education.  The commissioner
3.23 	shall provide assistance to the parties to ensure they reach an
3.24 	agreement.
3.25 		Subd. 6.Termination of site-based program authority. If
3.26 	a school site fails to meet the agreed upon expectations as
3.27 	specified in the performance agreement with the school board for
3.28 	three consecutive school years, its authority to participate in
3.29 	this program is terminated.
3.30 	School sites that have had their authority to participate
3.31 	in this program terminated under this subdivision may not
3.32 	participate in this program for three years after termination.
3.33 		Subd. 7.Reports. A school site decision-making team
3.34 	shall, and its respective school board may, make an annual
3.35 	report to the commissioner of education by September 1.  The
3.36 	reports shall be consistent with the requirements of section
4.1 	120B.11, subdivision 5, paragraph (a).
4.2 	Subd. 8.[COMMISSIONER'S DUTY.] The commissioner of
4.3 	education shall evaluate the effectiveness of the program by
4.4 	January 1, 2010.