1.1 	A bill for an act
1.2 	relating to education; modifying policies for early childhood through grade 12 
1.3 	education, including general education, education excellence, special programs, 
1.4 	libraries, and early childhood education; authorizing rulemaking;amending 
1.5 	Minnesota Statutes 2012, sections 15.059, subdivision 5b; 120A.41; 120B.02; 
1.6 	120B.021, subdivision 1; 120B.023; 120B.024; 120B.15; 120B.30, subdivision 
1.7 	1; 120B.31, subdivision 1; 123B.88, subdivision 22; 124D.10; 124D.122; 
1.8 	124D.79, subdivision 1, by adding a subdivision; 125A.27, subdivisions 8, 11, 
1.9 	14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33; 125A.35, subdivision 1; 
1.10 	125A.36; 125A.43; 126C.10, subdivision 14; 260A.02, subdivision 3; 260A.03; 
1.11 	260A.05, subdivision 1; 260A.07, subdivision 1; Laws 2011, First Special 
1.12 	Session chapter 11, article 7, section 2, subdivision 8, as amended; proposing 
1.13 	coding for new law in Minnesota Statutes, chapters 120B; 124D; repealing 
1.14 	Minnesota Statutes 2012, section 125A.35, subdivisions 4, 5; Minnesota Rules, 
1.15 	parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530; 
1.16 	3501.0535; 3501.0540; 3501.0545; 3501.0550.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	GENERAL EDUCATION

1.20 	Section 1. Minnesota Statutes 2012, section 120A.41, is amended to read:
1.21 	120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
1.22 	A school board's annual school calendar must include at least 425 hours of 
1.23 	instruction for a kindergarten student without a disability, 935 hours of instruction for a 
1.24 	student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7 
1.25 	though 12, not including summer school. Nothing in this section permits a school district 
1.26 	to adopt A school board's annual calendar must include at least 165 days of instruction 
1.27 	for a student in grades 1 through 11 unless a four-day week schedule unless has been
1.28 	 approved by the commissioner under section 124D.126.

2.1 	Sec. 2. Minnesota Statutes 2012, section 123B.88, subdivision 22, is amended to read:
2.2 		Subd. 22.Postsecondary enrollment options pupils. Districts may provide bus 
2.3 	transportation along school bus routes when space is available, for pupils attending 
2.4 	programs at a postsecondary institution under the postsecondary enrollment options 
2.5 	program. The transportation is permitted only if it does not increase the district's 
2.6 	expenditures for transportation. Fees collected for this service under section 123B.36, 
2.7 	subdivision 1, paragraph (13), shall be subtracted from the authorized cost for nonregular 
2.8 	transportation for the purpose of section 123B.92.

2.9 	Sec. 3. Minnesota Statutes 2012, section 126C.10, subdivision 14, is amended to read:
2.10 		Subd. 14.Uses of total operating capital revenue. Total operating capital revenue 
2.11 	may be used only for the following purposes:
2.12 	(1) to acquire land for school purposes;
2.13 	(2) to acquire or construct buildings for school purposes;
2.14 	(3) to rent or lease buildings, including the costs of building repair or improvement 
2.15 	that are part of a lease agreement;
2.16 	(4) to improve and repair school sites and buildings, and equip or reequip school 
2.17 	buildings with permanent attached fixtures, including library media centers;
2.18 	(5) for a surplus school building that is used substantially for a public nonschool 
2.19 	purpose;
2.20 	(6) to eliminate barriers or increase access to school buildings by individuals with a 
2.21 	disability;
2.22 	(7) to bring school buildings into compliance with the State Fire Code adopted 
2.23 	according to chapter 299F;
2.24 	(8) to remove asbestos from school buildings, encapsulate asbestos, or make 
2.25 	asbestos-related repairs;
2.26 	(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;
2.27 	(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel 
2.28 	or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined 
2.29 	in section 296A.01;
2.30 	(11) for energy audits for school buildings and to modify buildings if the audit 
2.31 	indicates the cost of the modification can be recovered within ten years;
2.32 	(12) to improve buildings that are leased according to section 123B.51, subdivision 4;
2.33 	(13) to pay special assessments levied against school property but not to pay 
2.34 	assessments for service charges;
3.1 	(14) to pay principal and interest on state loans for energy conservation according to 
3.2 	section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust 
3.3 	Fund Act according to sections 298.292 to 298.298;
3.4 	(15) to purchase or lease interactive telecommunications equipment;
3.5 	(16) by board resolution, to transfer money into the debt redemption fund to: (i) 
3.6 	pay the amounts needed to meet, when due, principal and interest payments on certain 
3.7 	obligations issued according to chapter 475; or (ii) pay principal and interest on debt 
3.8 	service loans or capital loans according to section 126C.70;
3.9 	(17) to pay operating capital-related assessments of any entity formed under a 
3.10 	cooperative agreement between two or more districts;
3.11 	(18) to purchase or lease computers and related materials hardware, initial purchase 
3.12 	of related software, but not annual licensing fees, copying machines, telecommunications 
3.13 	equipment, and other noninstructional equipment;
3.14 	(19) to purchase or lease assistive technology or equipment for instructional 
3.15 	programs;
3.16 	(20) to purchase textbooks as defined in section 123B.41, subdivision 2;
3.17 	(21) to purchase new and replacement library media resources or technology;
3.18 	(22) to lease or purchase vehicles;
3.19 	(23) to purchase or lease telecommunications equipment, computers, and related 
3.20 	equipment for integrated information management systems for:
3.21 	(i) managing and reporting learner outcome information for all students under a 
3.22 	results-oriented graduation rule;
3.23 	(ii) managing student assessment, services, and achievement information required 
3.24 	for students with individualized education programs; and
3.25 	(iii) other classroom information management needs;
3.26 	(24) to pay personnel costs directly related to the acquisition, operation, and 
3.27 	maintenance of telecommunications systems, computers, related equipment, and network 
3.28 	and applications software; and
3.29 	(25) to pay the costs directly associated with closing a school facility, including 
3.30 	moving and storage costs.

3.31 	Sec. 4. Minnesota Statutes 2012, section 260A.02, subdivision 3, is amended to read:
3.32 		Subd. 3.Continuing truant. "Continuing truant" means a child who is subject to the 
3.33 	compulsory instruction requirements of section 120A.22 and is absent from instruction in a 
3.34 	school, as defined in section 120A.05, without valid excuse within a single school year for:
3.35 	(1) three days if the child is in elementary school; or
4.1 	(2) three or more class periods on three days if the child is in middle school, junior 
4.2 	high school, or high school.
4.3 	Nothing in this section shall prevent a school district or charter school from notifying 
4.4 	a truant child's parent or legal guardian of the child's truancy or otherwise addressing a 
4.5 	child's attendance problems prior to the child becoming a continuing truant.

4.6 	Sec. 5. Minnesota Statutes 2012, section 260A.03, is amended to read:
4.7 	260A.03 NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A 
4.8 	CONTINUING TRUANT.
4.9 	Upon a child's initial classification as a continuing truant, the school attendance 
4.10 	officer or other designated school official shall notify the child's parent or legal guardian, 
4.11 	by first-class mail or other reasonable means, of the following:
4.12 	(1) that the child is truant;
4.13 	(2) that the parent or guardian should notify the school if there is a valid excuse 
4.14 	for the child's absences;
4.15 	(3) that the parent or guardian is obligated to compel the attendance of the child 
4.16 	at school pursuant to section 120A.22 and parents or guardians who fail to meet this 
4.17 	obligation may be subject to prosecution under section 120A.34;
4.18 	(4) that this notification serves as the notification required by section 120A.34;
4.19 	(5) that alternative educational programs and services may be available in the child's 
4.20 	enrolling or resident district;
4.21 	(6) that the parent or guardian has the right to meet with appropriate school personnel 
4.22 	to discuss solutions to the child's truancy;
4.23 	(7) that if the child continues to be truant, the parent and child may be subject to 
4.24 	juvenile court proceedings under chapter 260C;
4.25 	(8) that if the child is subject to juvenile court proceedings, the child may be subject 
4.26 	to suspension, restriction, or delay of the child's driving privilege pursuant to section 
4.27 	260C.201; and
4.28 	(9) that it is recommended that the parent or guardian accompany the child to school 
4.29 	and attend classes with the child for one day.

4.30 	Sec. 6. Minnesota Statutes 2012, section 260A.05, subdivision 1, is amended to read:
4.31 		Subdivision 1.Establishment. A school district or charter school may establish 
4.32 	one or more school attendance review boards to exercise the powers and duties in this 
4.33 	section. The school district or charter school board shall appoint the members of the 
5.1 	school attendance review board and designate the schools within the board's jurisdiction. 
5.2 	Members of a school attendance review board may include:
5.3 	(1) the superintendent of the school district or the superintendent's designee or 
5.4 	charter director or the director's designee;
5.5 	(2) a principal and one or more other school officials from within the district or 
5.6 	charter school;
5.7 	(3) parent representatives;
5.8 	(4) representatives from community agencies that provide services for truant 
5.9 	students and their families;
5.10 	(5) a juvenile probation officer;
5.11 	(6) school counselors and attendance officers; and
5.12 	(7) law enforcement officers.

5.13 	Sec. 7. Minnesota Statutes 2012, section 260A.07, subdivision 1, is amended to read:
5.14 		Subdivision 1.Establishment; referrals. A county attorney may establish a truancy 
5.15 	mediation program for the purpose of resolving truancy problems without court action. If 
5.16 	a student is in a school district or charter school that has established a school attendance 
5.17 	review board, the student may be referred to the county attorney under section 260A.06, 
5.18 	subdivision 3. If the student's school district or charter school has not established a board, 
5.19 	the student may be referred to the county attorney by the school district or charter school 
5.20 	if the student continues to be truant after the parent or guardian has been sent or conveyed 
5.21 	the notice under section 260A.03.

5.22 	ARTICLE 2
5.23 	EDUCATION EXCELLENCE

5.24 	Section 1. [120B.018] DEFINITIONS.
5.25 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
5.26 		Subd. 2.Academic standard. "Academic standard" means a summary description 
5.27 	of student learning in a required content area under section 120B.021 or elective content 
5.28 	area under section 120B.022.
5.29 		Subd. 3.Benchmark. "Benchmark" means specific knowledge or skill that a 
5.30 	student must master to complete part of an academic standard by the end of the grade 
5.31 	level or grade band.
5.32 		Subd. 4.Credit. "Credit" means the determination by the local school district 
5.33 	that a student has successfully completed an academic year of study or mastered the 
5.34 	applicable subject matter.
6.1 		Subd. 5.Elective standard. "Elective standard" means a locally adopted 
6.2 	expectation for student learning in career and technical education and world languages.
6.3 		Subd. 6.Required standard. "Required standard" means (1) a statewide adopted 
6.4 	expectation for student learning in the content areas of language arts, mathematics, 
6.5 	science, social studies, physical education, and the arts or (2) a locally adopted expectation 
6.6 	for student learning in health and the arts.
6.7 		Subd. 7.School site. "School site" means a separate facility, or a separate program 
6.8 	within a facility that a local school board recognizes as a school site for funding purposes.

6.9 	Sec. 2. Minnesota Statutes 2012, section 120B.02, is amended to read:
6.10 	120B.02 EDUCATIONAL EXPECTATIONS AND GRADUATION 
6.11 	REQUIREMENTS FOR MINNESOTA'S STUDENTS.
6.12 		Subdivision 1.Educational expectations. (a) The legislature is committed to 
6.13 	establishing rigorous academic standards for Minnesota's public school students. To 
6.14 	that end, the commissioner shall adopt in rule statewide academic standards. The 
6.15 	commissioner shall not prescribe in rule or otherwise the delivery system, classroom 
6.16 	assessments, or form of instruction that school sites must use. For purposes of this chapter, 
6.17 	a school site is a separate facility, or a separate program within a facility that a local school 
6.18 	board recognizes as a school site for funding purposes.
6.19 	(b) All commissioner actions regarding the rule must be premised on the following:
6.20 	(1) the rule is intended to raise academic expectations for students, teachers, and 
6.21 	schools;
6.22 	(2) any state action regarding the rule must evidence consideration of school district 
6.23 	autonomy; and
6.24 	(3) the Department of Education, with the assistance of school districts, must make 
6.25 	available information about all state initiatives related to the rule to students and parents, 
6.26 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
6.27 	readily understandable.
6.28 	(c) When fully implemented, the requirements for high school graduation in 
6.29 	Minnesota must require students to satisfactorily complete, as determined by the school 
6.30 	district, the course credit requirements under section 120B.024, all state academic 
6.31 	standards or local academic standards where state standards do not apply, and successfully 
6.32 	pass graduation examinations as required under section 120B.30.
6.33 	(d) (c) The commissioner shall periodically review and report on the state's 
6.34 	assessment process.
7.1 	(e) (d) School districts are not required to adopt specific provisions of the federal 
7.2 	School-to-Work programs.
7.3 		Subd. 2.Graduation requirements. The state minimum requirements for high 
7.4 	school graduation are satisfactorily completing the credit and academic standards 
7.5 	requirements under section 120B.024, as determined by the school district, and 
7.6 	successfully passing the graduation examinations under section 120B.30. A school district 
7.7 	must adopt graduation requirements that meet or exceed state graduation requirements 
7.8 	established in law or rule.

7.9 	EFFECTIVE DATE. This section is effective August 1, 2013, and applies to 
7.10 	students entering 9th grade in the 2013-2014 school year and later.

7.11 	Sec. 3. Minnesota Statutes 2012, section 120B.021, subdivision 1, is amended to read:
7.12 		Subdivision 1.Required academic standards. (a) The following subject areas 
7.13 	are required for statewide accountability:
7.14 	(1) language arts;
7.15 	(2) mathematics;
7.16 	(3) science;
7.17 	(4) social studies, including history, geography, economics, and government and 
7.18 	citizenship;
7.19 	(5) physical education;
7.20 	(6) health, for which locally developed academic standards apply; and
7.21 	(7) the arts, for which statewide or locally developed academic standards apply, as 
7.22 	determined by the school district. Public elementary and middle schools must offer at least 
7.23 	three and require at least two of the following four arts areas: dance; music; theater; and 
7.24 	visual arts. Public high schools must offer at least three and require at least one of the 
7.25 	following five arts areas: media arts; dance; music; theater; and visual arts.
7.26 	The commissioner must submit proposed standards in science and social studies to 
7.27 	the legislature by February 1, 2004.
7.28 	(b) For purposes of applicable federal law, the academic standards for language arts, 
7.29 	mathematics, and science apply to all public school students, except the very few students 
7.30 	with extreme cognitive or physical impairments for whom an individualized education 
7.31 	program team has determined that the required academic standards are inappropriate. An 
7.32 	individualized education program team that makes this determination must establish 
7.33 	alternative standards.
7.34 	A school district, no later than the 2007-2008 school year, must adopt graduation 
7.35 	requirements that meet or exceed state graduation requirements established in law or rule. 
8.1 	A school district that incorporates these state graduation requirements before the 2007-2008 
8.2 	school year must provide students who enter the 9th grade in or before the 2003-2004 
8.3 	school year the opportunity to earn a diploma based on existing locally established 
8.4 	graduation requirements in effect when the students entered the 9th grade.(c) District 
8.5 	efforts to develop, implement, or improve instruction or curriculum as a result of the 
8.6 	provisions of this section must be consistent with sections 120B.10, 120B.11, and 120B.20.
8.7 	The commissioner must include the contributions of Minnesota American Indian 
8.8 	tribes and communities as they relate to the academic standards during the review and 
8.9 	revision of the required academic standards.

8.10 	Sec. 4. Minnesota Statutes 2012, section 120B.023, is amended to read:
8.11 	120B.023 BENCHMARKS.
8.12 		Subdivision 1.Benchmarks implement, supplement statewide academic 
8.13 	standards. (a) The commissioner must supplement required state academic standards with 
8.14 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
8.15 	benchmarks must implement statewide academic standards by specifying the academic 
8.16 	knowledge and skills that Schools must offer and students must achieve all benchmarks for 
8.17 	an academic standard to satisfactorily complete a that state standard. The commissioner 
8.18 	must publish benchmarks to inform and guide parents, teachers, school districts, and other 
8.19 	interested persons and to use in developing tests consistent with the benchmarks.
8.20 	(b) The commissioner shall publish benchmarks in the State Register to inform and 
8.21 	guide parents, teachers, school districts, and other interested persons and transmit the 
8.22 	benchmarks in any other manner that makes them accessible to the general public. The 
8.23 	commissioner must use benchmarks in developing tests under section 120B.30. The 
8.24 	commissioner may charge a reasonable fee for publications.
8.25 	(c) Once established, the commissioner may change the benchmarks only with 
8.26 	specific legislative authorization and after completing a review under subdivision 2.
8.27 	(d) The commissioner must develop and implement a system for reviewing each 
8.28 	of the required academic standards and related benchmarks and elective standards on a 
8.29 	periodic cycle, consistent with subdivision 2.
8.30 	(e) (d) The benchmarks are not subject to chapter 14 and section 14.386 does not 
8.31 	apply.
8.32 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
8.33 	revise and appropriately embed technology and information literacy standards consistent 
8.34 	with recommendations from school media specialists into the state's academic standards 
8.35 	and graduation requirements and implement a review cycle for state academic standards 
9.1 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
9.2 	commissioner also must examine the alignment of each required academic standard and 
9.3 	related benchmark with the knowledge and skills students need for college readiness 
9.4 	and advanced work in the particular subject area. The commissioner must include the 
9.5 	contributions of Minnesota American Indian tribes and communities as they relate to the 
9.6 	academic standards during the review and revision of the required academic standards.
9.7 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
9.8 	academic standards and high school graduation requirements in mathematics to require 
9.9 	that students satisfactorily complete the revised mathematics standards, beginning in the 
9.10 	2010-2011 school year. Under the revised standards:
9.11 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
9.12 	grade; and
9.13 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
9.14 	satisfactorily complete an algebra II credit or its equivalent.
9.15 	(b) The commissioner also must ensure that the statewide mathematics assessments 
9.16 	administered to students in grades 3 through 8 and 11 are aligned with the state academic 
9.17 	standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph 
9.18 	(b). The commissioner must implement a review of the academic standards and related 
9.19 	benchmarks in mathematics beginning in the 2015-2016 school year.
9.20 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
9.21 	academic standards and high school graduation requirements in the arts to require that 
9.22 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
9.23 	school year. The commissioner must implement a review of the academic standards and 
9.24 	related benchmarks in arts beginning in the 2016-2017 school year.
9.25 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
9.26 	academic standards and high school graduation requirements in science to require that 
9.27 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
9.28 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
9.29 	school year or later must satisfactorily complete a chemistry or physics credit or a career 
9.30 	and technical education credit that meets standards underlying the chemistry, physics, 
9.31 	or biology credit or a combination of those standards approved by the district. The 
9.32 	commissioner must implement a review of the academic standards and related benchmarks 
9.33 	in science beginning in the 2017-2018 school year.
9.34 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
9.35 	academic standards and high school graduation requirements in language arts to require 
9.36 	that students satisfactorily complete the revised language arts standards beginning in the 
10.1 	2012-2013 school year. The commissioner must implement a review of the academic 
10.2 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
10.3 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
10.4 	academic standards and high school graduation requirements in social studies to require 
10.5 	that students satisfactorily complete the revised social studies standards beginning in the 
10.6 	2013-2014 school year. The commissioner must implement a review of the academic 
10.7 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
10.8 	(g) School districts and charter schools must revise and align local academic 
10.9 	standards and high school graduation requirements in health, world languages, and career 
10.10 	and technical education to require students to complete the revised standards beginning 
10.11 	in a school year determined by the school district or charter school. School districts and 
10.12 	charter schools must formally establish a periodic review cycle for the academic standards 
10.13 	and related benchmarks in health, world languages, and career and technical education.

10.14 	Sec. 5. Minnesota Statutes 2012, section 120B.024, is amended to read:
10.15 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
10.16 		Subdivision 1.Graduation requirements. (a) Students beginning 9th grade in the 
10.17 	2011-2012 school year and later must successfully complete the following high school 
10.18 	level course credits for graduation:
10.19 	(1) four credits of language arts sufficient to satisfy all of the academic standards 
10.20 	in English language arts;
10.21 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
10.22 	and probability including an algebra II credit or its equivalent, sufficient to satisfy all of 
10.23 	the academic standard standards in mathematics;
10.24 	(3) an algebra I credit by the end of 8th grade sufficient to satisfy all of the 8th 
10.25 	grade standards in mathematics;
10.26 	(3) (4) three credits of science, including at least: (i) one credit in of biology; and 
10.27 	(ii) one chemistry or physics credit or a career and technical education credit that meets 
10.28 	standards underlying the chemistry, physics, or biology credit or a combination of those 
10.29 	standards approved by the district, but meeting biology standards under this item does not 
10.30 	meet the biology requirement under item (i), one credit of chemistry or physics, and one 
10.31 	elective credit of science. The combination of credits under this clause must be sufficient 
10.32 	to satisfy (i) all of the academic standards in either chemistry or physics and (ii) all other 
10.33 	academic standards in science;
10.34 	(4) (5) three and one-half credits of social studies, encompassing at least United 
10.35 	States history, geography, government and citizenship, world history, and economics or 
11.1 	three credits of social studies encompassing at least United States history, geography, 
11.2 	government and citizenship, and world history, and one-half credit of economics taught in 
11.3 	a school's social studies, agriculture education, or business department sufficient to satisfy 
11.4 	all of the academic standards in social studies;
11.5 	(5) (6) one credit in of the arts sufficient to satisfy all of the state or local academic 
11.6 	standards in the arts; and
11.7 	(6) (7) a minimum of seven elective course credits.
11.8 	A course credit is equivalent to a student successfully completing an academic 
11.9 	year of study or a student mastering the applicable subject matter, as determined by the 
11.10 	local school district.
11.11 		Subd. 2.Credit equivalencies. (a) A one-half credit of economics taught in a 
11.12 	school's agriculture education or business department may fulfill a one-half credit in 
11.13 	social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the 
11.14 	academic standards in economics.
11.15 	(b) An agriculture science course or career and technical eduction credit may fulfill a
11.16 	 the elective science credit requirement other than the specified science credit in biology
11.17 	 under paragraph (a), clause (3). subdivision 1, clause (4), if the course meets academic 
11.18 	standards in science as approved by the district. An agriculture science or career and 
11.19 	technical education credit may fulfill the credit in chemistry or physics required under 
11.20 	subdivision 1, clause (4), if (1) the credit meets a combination of the chemistry, physics, 
11.21 	and biology academic standards as approved by the district and (2) the student satisfies 
11.22 	either all of the chemistry academic standards or all of the physics academic standards 
11.23 	prior to graduation. An agriculture science or career and technical education credit may 
11.24 	not fulfill the biology credit required under subdivision 1, clause (4).
11.25 	(c) A career and technical education course credit may fulfill a mathematics or arts 
11.26 	credit requirement or a science credit requirement other than the specified science credit in 
11.27 	biology under paragraph (a) subdivision 1, clause (2), (3), or (5) (6).

11.28 	EFFECTIVE DATE. This section is effective August 1, 2013, and applies to 
11.29 	students entering 9th grade in the 2013-2014 school year and later.

11.30 	Sec. 6. Minnesota Statutes 2012, section 120B.15, is amended to read:
11.31 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
11.32 	(a) School districts may identify students, locally develop programs addressing 
11.33 	instructional and affective needs, provide staff development, and evaluate programs to 
11.34 	provide gifted and talented students with challenging and appropriate educational programs.
12.1 	(b) School districts may must adopt guidelines for assessing and identifying students 
12.2 	for participation in gifted and talented programs. The guidelines should include the use of:
12.3 	(1) multiple and objective criteria; and
12.4 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
12.5 	theory and research. Assessments and procedures should be sensitive to underrepresented 
12.6 	groups, including, but not limited to, low-income, minority, twice-exceptional, and 
12.7 	English learners.
12.8 	(c) School districts must adopt procedures for the academic acceleration of gifted 
12.9 	and talented students. These procedures must include how the district will:
12.10 	(1) assess a student's readiness and motivation for acceleration; and
12.11 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
12.12 	the best type of academic acceleration for that student.
12.13 	(d) School districts must adopt procedures for early admission to kindergarten 
12.14 	or first grade of gifted and talented learners. The procedures must be sensitive to 
12.15 	underrepresented groups and must address how the district or charter school will:
12.16 	(1) assess a child's readiness and motivation for accelerations;
12.17 	(2) assess a child's cognitive abilities, achievement, and performance; and
12.18 	(3) monitor the child's adjustment postacceleration.
12.19 	The school district shall admit a gifted and talented child to kindergarten or first 
12.20 	grade who fails to meet the age requirement under section 120A.20, subdivision 1, 
12.21 	paragraph (b), provided the child completes the procedures and meets the criteria for early 
12.22 	entrance adopted by the school board under this subdivision.

12.23 	Sec. 7. Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:
12.24 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
12.25 	with appropriate technical qualifications and experience and stakeholders, consistent with 
12.26 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
12.27 	level to be tested, state-constructed tests developed from and aligned with the state's 
12.28 	required academic standards under section 120B.021, include multiple choice questions, 
12.29 	and be administered annually to all students in grades 3 through 8. State-developed high 
12.30 	school tests aligned with the state's required academic standards under section 120B.021 
12.31 	and administered to all high school students in a subject other than writing must include 
12.32 	multiple choice questions. The commissioner shall establish one or more months during 
12.33 	which schools shall administer the tests to students each school year. For students enrolled 
12.34 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
12.35 	mathematics, and writing shall fulfill students' basic skills testing requirements for a 
13.1 	passing state notation. The passing scores of basic skills tests in reading and mathematics 
13.2 	are the equivalent of 75 percent correct for students entering grade 9 based on the 
13.3 	first uniform test administered in February 1998. Students who have not successfully 
13.4 	passed a Minnesota basic skills test by the end of the 2011-2012 school year must pass 
13.5 	the graduation-required assessments for diploma under paragraph (c), except that for 
13.6 	the 2012-2013 and 2013-2014 school years only, these students may satisfy the state's 
13.7 	graduation test requirement for math by complying with paragraph (d), clauses (1) and (3).
13.8 	(b) The state assessment system must be aligned to the most recent revision of 
13.9 	academic standards as described in section 120B.023 in the following manner:
13.10 	(1) mathematics;
13.11 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
13.12 	(ii) high school level beginning in the 2013-2014 school year;
13.13 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
13.14 	school year; and
13.15 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
13.16 	the 2012-2013 school year.
13.17 	(c) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
13.18 	following options shall fulfill students' state graduation test requirements:
13.19 	(1) for reading and mathematics:
13.20 	(i) obtaining an achievement level equivalent to or greater than proficient as 
13.21 	determined through a standard setting process on the Minnesota comprehensive 
13.22 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
13.23 	score as determined through a standard setting process on the graduation-required 
13.24 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
13.25 	subsequent retests;
13.26 	(ii) achieving a passing score as determined through a standard setting process 
13.27 	on the state-identified language proficiency test in reading and the mathematics test for 
13.28 	English learners or the graduation-required assessment for diploma equivalent of those 
13.29 	assessments for students designated as English learners;
13.30 	(iii) achieving an individual passing score on the graduation-required assessment for 
13.31 	diploma as determined by appropriate state guidelines for students with an individualized 
13.32 	education program or 504 plan;
13.33 	(iv) obtaining achievement level equivalent to or greater than proficient as 
13.34 	determined through a standard setting process on the state-identified alternate assessment 
13.35 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
13.36 	an individualized education program; or
14.1 	(v) achieving an individual passing score on the state-identified alternate assessment 
14.2 	or assessments as determined by appropriate state guidelines for students with an 
14.3 	individualized education program; and
14.4 	(2) for writing:
14.5 	(i) achieving a passing score on the graduation-required assessment for diploma;
14.6 	(ii) achieving a passing score as determined through a standard setting process on 
14.7 	the state-identified language proficiency test in writing for students designated as English 
14.8 	learners;
14.9 	(iii) achieving an individual passing score on the graduation-required assessment for 
14.10 	diploma as determined by appropriate state guidelines for students with an individualized 
14.11 	education program or 504 plan; or
14.12 	(iv) achieving an individual passing score on the state-identified alternate assessment 
14.13 	or assessments as determined by appropriate state guidelines for students with an 
14.14 	individualized education program.
14.15 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
14.16 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
14.17 	assessment for diploma under paragraph (c) are eligible to receive a high school diploma 
14.18 	if they:
14.19 	(1) complete with a passing score or grade all state and local coursework and credits 
14.20 	required for graduation by the school board granting the students their diploma;
14.21 	(2) participate in district-prescribed academic remediation in mathematics; and
14.22 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
14.23 	they pass the mathematics GRAD test, whichever comes first. A school, district, or charter 
14.24 	school must place on the high school transcript a student's current pass status for each 
14.25 	subject that has a required graduation assessment.
14.26 	In addition, the school board granting the students their diplomas may formally 
14.27 	decide to include a notation of high achievement on the high school diplomas of those 
14.28 	graduating seniors who, according to established school board criteria, demonstrate 
14.29 	exemplary academic achievement during high school.
14.30 	(e) The 3rd through 8th grade and high school test results shall be available to 
14.31 	districts for diagnostic purposes affecting student learning and district instruction and 
14.32 	curriculum, and for establishing educational accountability. The commissioner must 
14.33 	disseminate to the public the high school test results upon receiving those results.
14.34 	(f) The 3rd through 8th grade and high school tests must be aligned with state 
14.35 	academic standards. The commissioner shall determine the testing process and the order 
15.1 	of administration. The statewide results shall be aggregated at the site and district level, 
15.2 	consistent with subdivision 1a.
15.3 	(g) In addition to the testing and reporting requirements under this section, the 
15.4 	commissioner shall include the following components in the statewide public reporting 
15.5 	system:
15.6 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
15.7 	school level that provides appropriate, technically sound accommodations or alternate 
15.8 	assessments;
15.9 	(2) educational indicators that can be aggregated and compared across school 
15.10 	districts and across time on a statewide basis, including average daily attendance, high 
15.11 	school graduation rates, and high school drop-out rates by age and grade level;
15.12 	(3) state results on the American College Test; and
15.13 	(4) state results from participation in the National Assessment of Educational 
15.14 	Progress so that the state can benchmark its performance against the nation and other 
15.15 	states, and, where possible, against other countries, and contribute to the national effort 
15.16 	to monitor achievement.

15.17 	Sec. 8. Minnesota Statutes 2012, section 120B.31, subdivision 1, is amended to read:
15.18 		Subdivision 1.Educational accountability and public reporting. Consistent 
15.19 	with the direction to adopt statewide academic standards under section 120B.02, the 
15.20 	department, in consultation with education and other system stakeholders, must establish a 
15.21 	coordinated and comprehensive system of educational accountability and public reporting 
15.22 	that promotes greater academic achievement, preparation for higher academic education, 
15.23 	preparation for the world of work, citizenship under sections 120B.021, subdivision 1, 
15.24 	clause (4), and 120B.024, paragraph (a), clause (4), and the arts.

15.25 	Sec. 9. Minnesota Statutes 2012, section 124D.10, is amended to read:
15.26 	124D.10 CHARTER SCHOOLS.
15.27 		Subdivision 1.Purposes. (a) The primary purpose of this section is to:
15.28 	(1) improve pupil learning and student achievement;. Additional purposes include to:
15.29 	(2) (1) increase learning opportunities for pupils;
15.30 	(3) (2) encourage the use of different and innovative teaching methods;
15.31 	(4) (3) measure learning outcomes and create different and innovative forms of 
15.32 	measuring outcomes;
15.33 	(5) (4) establish new forms of accountability for schools; and or
16.1 	(6) (5) create new professional opportunities for teachers, including the opportunity 
16.2 	to be responsible for the learning program at the school site.
16.3 	(b) This section does not provide a means to keep open a school that a school board 
16.4 	decides to close. However, a school board may endorse or authorize the establishing of 
16.5 	a charter school to replace the school the board decided to close. Applicants seeking a 
16.6 	charter under this circumstance must demonstrate to the authorizer that the charter sought 
16.7 	is substantially different in purpose and program from the school the board closed and 
16.8 	that the proposed charter satisfies the requirements of this subdivision. If the school 
16.9 	board that closed the school authorizes the charter, it must document in its affidavit to the 
16.10 	commissioner that the charter is substantially different in program and purpose from 
16.11 	the school it closed.
16.12 	An authorizer shall not approve an application submitted by a charter school 
16.13 	developer under subdivision 4, paragraph (a), if the application does not comply with this 
16.14 	subdivision. The commissioner shall not approve an affidavit submitted by an authorizer 
16.15 	under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
16.16 		Subd. 2.Applicability. This section applies only to charter schools formed and 
16.17 	operated under this section.
16.18 		Subd. 3.Authorizer. (a) For purposes of this section, the terms defined in this 
16.19 	subdivision have the meanings given them.
16.20 	"Application" to receive approval as an authorizer means the proposal an eligible 
16.21 	authorizer submits to the commissioner under paragraph (c) before that authorizer is able 
16.22 	to submit any affidavit to charter to a school.
16.23 	"Application" under subdivision 4 means the charter school business plan a 
16.24 	school developer submits to an authorizer for approval to establish a charter school that 
16.25 	documents the school developer's mission statement, school purposes, program design, 
16.26 	financial plan, governance and management structure, and background and experience, 
16.27 	plus any other information the authorizer requests. The application also shall include a 
16.28 	"statement of assurances" of legal compliance prescribed by the commissioner.
16.29 	"Affidavit" means a written statement the authorizer submits to the commissioner 
16.30 	for approval to establish a charter school under subdivision 4 attesting to its review and 
16.31 	approval process before chartering a school.
16.32 	(b) The following organizations may authorize one or more charter schools:
16.33 	(1) a school board, intermediate school district school board, or education district 
16.34 	organized under sections 123A.15 to 123A.19;
16.35 	(2) a charitable organization under section 501(c)(3) of the Internal Revenue Code 
16.36 	of 1986, excluding a nonpublic sectarian or religious institution; any person other than a 
17.1 	natural person that directly or indirectly, through one or more intermediaries, controls, 
17.2 	is controlled by, or is under common control with the nonpublic sectarian or religious 
17.3 	institution; and any other charitable organization under this clause that in the federal IRS 
17.4 	Form 1023, Part IV, describes activities indicating a religious purpose, that:
17.5 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
17.6 	Foundations;
17.7 	(ii) is registered with the attorney general's office; and
17.8 	(iii) is incorporated in the state of Minnesota and has been operating continuously 
17.9 	for at least five years but does not operate a charter school;
17.10 	(3) a Minnesota private college, notwithstanding clause (2), that grants two- or 
17.11 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
17.12 	chapter 136A; community college, state university, or technical college governed by the 
17.13 	Board of Trustees of the Minnesota State Colleges and Universities; or the University 
17.14 	of Minnesota;
17.15 	(4) a nonprofit corporation subject to chapter 317A, described in section 317A.905, 
17.16 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
17.17 	of 1986, may authorize one or more charter schools if the charter school has operated 
17.18 	for at least three years under a different authorizer and if the nonprofit corporation has 
17.19 	existed for at least 25 years; or
17.20 	(5) single-purpose authorizers that are charitable, nonsectarian organizations formed 
17.21 	under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state 
17.22 	of Minnesota whose sole purpose is to charter schools. Eligible organizations interested 
17.23 	in being approved as an authorizer under this paragraph must submit a proposal to the 
17.24 	commissioner that includes the provisions of paragraph (c) and a five-year financial plan. 
17.25 	Such authorizers shall consider and approve charter school applications using the criteria 
17.26 	provided in subdivision 4 and shall not limit the applications it solicits, considers, or 
17.27 	approves to any single curriculum, learning program, or method.
17.28 	(c) An eligible authorizer under this subdivision must apply to the commissioner for 
17.29 	approval as an authorizer before submitting any affidavit to the commissioner to charter 
17.30 	a school. The application for approval as a charter school authorizer must demonstrate 
17.31 	the applicant's ability to implement the procedures and satisfy the criteria for chartering a 
17.32 	school under this section. The commissioner must approve or disapprove an application 
17.33 	within 45 business days of the application deadline. If the commissioner disapproves 
17.34 	the application, the commissioner must notify the applicant of the specific deficiencies 
17.35 	in writing and the applicant then has 20 business days to address the deficiencies to the 
17.36 	commissioner's satisfaction. After the 20 business days expire, the commissioner has 15 
18.1 	business days to make a final decision to approve or disapprove the application. Failing to 
18.2 	address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to 
18.3 	be an authorizer. The commissioner, in establishing criteria for approval, must consider 
18.4 	the applicant's:
18.5 	(1) capacity and infrastructure;
18.6 	(2) application criteria and process;
18.7 	(3) contracting process;
18.8 	(4) ongoing oversight and evaluation processes; and
18.9 	(5) renewal criteria and processes.
18.10 	(d) An applicant must include in its application to the commissioner to be an 
18.11 	approved authorizer at least the following:
18.12 	(1) how chartering schools is a way for the organization to carry out its mission;
18.13 	(2) a description of the capacity of the organization to serve as an authorizer, 
18.14 	including the personnel who will perform the authorizing duties, their qualifications, the 
18.15 	amount of time they will be assigned to this responsibility, and the financial resources 
18.16 	allocated by the organization to this responsibility;
18.17 	(3) a description of the application and review process the authorizer will use to 
18.18 	make decisions regarding the granting of charters;
18.19 	(4) a description of the type of contract it will arrange with the schools it charters 
18.20 	that meets the provisions of subdivision 6;
18.21 	(5) the process to be used for providing ongoing oversight of the school consistent 
18.22 	with the contract expectations specified in clause (4) that assures that the schools chartered 
18.23 	are complying with both the provisions of applicable law and rules, and with the contract;
18.24 	(6) a description of the criteria and process the authorizer will use to grant expanded 
18.25 	applications under subdivision 4, paragraph (j);
18.26 	(7) the process for making decisions regarding the renewal or termination of 
18.27 	the school's charter based on evidence that demonstrates the academic, organizational, 
18.28 	and financial competency of the school, including its success in increasing student 
18.29 	achievement and meeting the goals of the charter school agreement; and
18.30 	(8) an assurance specifying that the organization is committed to serving as an 
18.31 	authorizer for the full five-year term.
18.32 	(e) A disapproved applicant under this section may resubmit an application during a 
18.33 	future application period.
18.34 	(f) If the governing board of an approved authorizer votes to withdraw as an 
18.35 	approved authorizer for a reason unrelated to any cause under subdivision 23, the 
18.36 	authorizer must notify all its chartered schools and the commissioner in writing by July 
19.1 	15 of its intent to withdraw as an authorizer on June 30 in the next calendar year. The 
19.2 	commissioner may approve the transfer of a charter school to a new authorizer under this 
19.3 	paragraph after the new authorizer submits an affidavit to the commissioner.
19.4 	(g) The authorizer must participate in department-approved training.
19.5 	(h) An authorizer that chartered a school before August 1, 2009, must apply by 
19.6 	June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an 
19.7 	authorizer under this section. For purposes of this paragraph, an authorizer that fails to 
19.8 	submit a timely application is ineligible to charter a school.
19.9 	(i) (h) The commissioner shall review an authorizer's performance every five years 
19.10 	in a manner and form determined by the commissioner and may review an authorizer's 
19.11 	performance more frequently at the commissioner's own initiative or at the request of a 
19.12 	charter school operator, charter school board member, or other interested party. The 
19.13 	commissioner, after completing the review, shall transmit a report with findings to the 
19.14 	authorizer. If, consistent with this section, the commissioner finds that an authorizer has 
19.15 	not fulfilled the requirements of this section, the commissioner may subject the authorizer 
19.16 	to corrective action, which may include terminating the contract with the charter school 
19.17 	board of directors of a school it chartered. The commissioner must notify the authorizer 
19.18 	in writing of any findings that may subject the authorizer to corrective action and 
19.19 	the authorizer then has 15 business days to request an informal hearing before the 
19.20 	commissioner takes corrective action. If the commissioner terminates a contract between 
19.21 	an authorizer and a charter school under this paragraph, the commissioner may assist the 
19.22 	charter school in acquiring a new authorizer.
19.23 	(j) (i) The commissioner may at any time take corrective action against an authorizer, 
19.24 	including terminating an authorizer's ability to charter a school for:
19.25 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
19.26 	commissioner approved the authorizer;
19.27 	(2) violating a term of the chartering contract between the authorizer and the charter 
19.28 	school board of directors;
19.29 	(3) unsatisfactory performance as an approved authorizer; or
19.30 	(4) any good cause shown that provides the commissioner a legally sufficient reason 
19.31 	to take corrective action against an authorizer.
19.32 		Subd. 4.Formation of school. (a) An authorizer, after receiving an application from 
19.33 	a school developer, may charter a licensed teacher under section 122A.18, subdivision 
19.34 	1, or a group of individuals that includes one or more licensed teachers under section 
19.35 	122A.18, subdivision 1, to operate a school subject to the commissioner's approval of the 
19.36 	authorizer's affidavit under paragraph (b). The school must be organized and operated as a 
20.1 	nonprofit corporation under chapter 317A and the provisions under the applicable chapter 
20.2 	shall apply to the school except as provided in this section.
20.3 	Notwithstanding sections 465.717 and 465.719, a school district, subject to this 
20.4 	section and section 124D.11, may create a corporation for the purpose of establishing a 
20.5 	charter school.
20.6 	(b) Before the operators may establish and operate a school, the authorizer must file 
20.7 	an affidavit with the commissioner stating its intent to charter a school. An authorizer 
20.8 	must file a separate affidavit for each school it intends to charter. The affidavit must state 
20.9 	the terms and conditions under which the authorizer would charter a school and how the 
20.10 	authorizer intends to oversee the fiscal and student performance of the charter school and to 
20.11 	comply with the terms of the written contract between the authorizer and the charter school 
20.12 	board of directors under subdivision 6. The commissioner must approve or disapprove the 
20.13 	authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner 
20.14 	disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies 
20.15 	in the affidavit and the authorizer then has 20 business days to address the deficiencies. 
20.16 	If the authorizer does not address deficiencies to the commissioner's satisfaction, the 
20.17 	commissioner's disapproval is final. Failure to obtain commissioner approval precludes an 
20.18 	authorizer from chartering the school that is the subject of this affidavit.
20.19 	(c) The authorizer may prevent an approved charter school from opening for 
20.20 	operation if, among other grounds, the charter school violates this section or does not meet 
20.21 	the ready-to-open standards that are part of the authorizer's oversight and evaluation 
20.22 	process or are stipulated in the charter school contract.
20.23 	(d) The operators authorized to organize and operate a school, before entering into a 
20.24 	contract or other agreement for professional or other services, goods, or facilities, must 
20.25 	incorporate as a nonprofit corporation under chapter 317A and must establish a board of 
20.26 	directors composed of at least five members who are not related parties until a timely 
20.27 	election for members of the ongoing charter school board of directors is held according to 
20.28 	the school's articles and bylaws under paragraph (f). A charter school board of directors 
20.29 	must be composed of at least five members who are not related parties. Staff members 
20.30 	employed at the school, including teachers providing instruction under a contract with a 
20.31 	cooperative, and all parents or legal guardians of children enrolled in the school are the 
20.32 	voters eligible to elect the members of the school's board of directors. A charter school 
20.33 	must notify eligible voters of the school board election dates at least 30 days before the 
20.34 	election. Board of director meetings must comply with chapter 13D.
20.35 	(e) A charter school shall publish and maintain on the school's official Web site: (1) 
20.36 	the minutes of meetings of the board of directors, and of members and committees having 
21.1 	any board-delegated authority, for at least one calendar year from the date of publication; 
21.2 	(2) directory information for members of the board of directors and committees having 
21.3 	board-delegated authority; and (3) identifying and contact information for the school's 
21.4 	authorizer. Identifying and contact information for the school's authorizer must be 
21.5 	included in other school materials made available to the public. Upon request of an 
21.6 	individual, the charter school must also make available in a timely fashion financial 
21.7 	statements showing all operations and transactions affecting income, surplus, and deficit 
21.8 	during the school's last annual accounting period; and a balance sheet summarizing assets 
21.9 	and liabilities on the closing date of the accounting period. A charter school also must post 
21.10 	on its official Web site information identifying its authorizer and indicate how to contact 
21.11 	that authorizer and include that same information about its authorizer in other school 
21.12 	materials that it makes available to the public.
21.13 	(f) Every charter school board member shall attend ongoing training throughout 
21.14 	the member's term on board governance, including training on the board's role and 
21.15 	responsibilities, employment policies and practices, and financial management. A board 
21.16 	member who does not begin the required initial training within six months after being 
21.17 	seated and complete that training within 12 months of being seated on the board is 
21.18 	ineligible to continue to serve as a board member. The school shall include in its annual 
21.19 	report the training attended by each board member during the previous year.
21.20 	(g) The ongoing board must be elected before the school completes its third year of 
21.21 	operation. Board elections must be held during the school year but may not be conducted 
21.22 	on days when the school is closed for holidays, breaks, or vacations. The charter school 
21.23 	board of directors shall be composed of at least five nonrelated members and include: (i) 
21.24 	at least one licensed teacher employed as a teacher at the school or a licensed teacher
21.25 	 providing instruction under contract between the charter school and a cooperative; (ii) the 
21.26 	parent or legal guardian of a student enrolled in the charter school who is not an employee 
21.27 	of the charter school; and (iii) an interested community member who is not employed by 
21.28 	the charter school and does not have a child enrolled in the school. The board may be 
21.29 	a teacher majority board composed of teachers described in this paragraph. The chief 
21.30 	financial officer and the chief administrator may only serve as ex-officio nonvoting board 
21.31 	members and may not serve as a voting member of the board. Charter school employees 
21.32 	shall not serve on the board unless item (i) applies. Contractors providing facilities, goods, 
21.33 	or services to a charter school shall not serve on the board of directors of the charter school. 
21.34 	Board bylaws shall outline the process and procedures for changing the board's governance 
21.35 	model, consistent with chapter 317A. A board may change its governance model only:
22.1 	(1) by a majority vote of the board of directors and the licensed teachers employed 
22.2 	by the school, including licensed teachers providing instruction under a contract between 
22.3 	the school and a cooperative; and
22.4 	(2) with the authorizer's approval.
22.5 	Any change in board governance must conform with the board structure established 
22.6 	under this paragraph.
22.7 	(h) The granting or renewal of a charter by an authorizer must not be conditioned 
22.8 	upon the bargaining unit status of the employees of the school.
22.9 	(i) The granting or renewal of a charter school by an authorizer must not be 
22.10 	contingent on the charter school being required to contract, lease, or purchase services 
22.11 	from the authorizer. Any potential contract, lease, or purchase of service from an 
22.12 	authorizer must be disclosed to the commissioner, accepted through an open bidding 
22.13 	process, and be a separate contract from the charter contract. The school must document 
22.14 	the open bidding process. An authorizer must not enter into a contract to provide 
22.15 	management and financial services for a school that it authorizes, unless the school 
22.16 	documents that it received at least two competitive bids.
22.17 	(j) An authorizer may permit the board of directors of a charter school to expand 
22.18 	the operation of the charter school to additional sites or to add additional grades at the 
22.19 	school beyond those described in the authorizer's original affidavit as approved by 
22.20 	the commissioner only after submitting a supplemental affidavit for approval to the 
22.21 	commissioner in a form and manner prescribed by the commissioner. The supplemental 
22.22 	affidavit must document that:
22.23 	(1) the proposed expansion plan demonstrates need and projected enrollment;
22.24 	(2) the expansion is warranted, at a minimum, by longitudinal data demonstrating 
22.25 	students' improved academic performance and growth on statewide assessments under 
22.26 	chapter 120B;
22.27 	(3) the charter school is financially sound and the financing it needs to implement 
22.28 	the proposed expansion exists; and
22.29 	(4) the charter school has the governance structure and management capacity to 
22.30 	carry out its expansion.
22.31 	(k) The commissioner shall have 30 business days to review and comment on the 
22.32 	supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in 
22.33 	the supplemental affidavit and the authorizer then has 20 business days to address, to the 
22.34 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
22.35 	may not expand grades or add sites until the commissioner has approved the supplemental 
22.36 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
23.1 		Subd. 4a.Conflict of interest. (a) An individual is prohibited from serving as a 
23.2 	member of the charter school board of directors if the individual, an immediate family 
23.3 	member, or the individual's partner is an owner, employee or agent of, or a contractor with a 
23.4 	for-profit or nonprofit entity or individual with whom the charter school contracts, directly 
23.5 	or indirectly, for professional services, goods, or facilities. A violation of this prohibition 
23.6 	renders a contract voidable at the option of the commissioner or the charter school board 
23.7 	of directors. A member of a charter school board of directors who violates this prohibition 
23.8 	is individually liable to the charter school for any damage caused by the violation.
23.9 	(b) No member of the board of directors, employee, officer, or agent of a charter 
23.10 	school shall participate in selecting, awarding, or administering a contract if a conflict 
23.11 	of interest exists. A conflict exists when:
23.12 	(1) the board member, employee, officer, or agent;
23.13 	(2) the immediate family of the board member, employee, officer, or agent;
23.14 	(3) the partner of the board member, employee, officer, or agent; or
23.15 	(4) an organization that employs, or is about to employ any individual in clauses 
23.16 	(1) to (3),
23.17 	has a financial or other interest in the entity with which the charter school is contracting. 
23.18 	A violation of this prohibition renders the contract void.
23.19 	(c) Any employee, agent, or board member of the authorizer who participates 
23.20 	in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
23.21 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
23.22 	chartered by that authorizer.
23.23 	(d) An individual may serve as a member of the board of directors if no conflict of 
23.24 	interest under paragraph (a) exists.
23.25 	(e) The conflict of interest provisions under this subdivision do not apply to 
23.26 	compensation paid to a teacher employed as a teacher by the charter school who or a 
23.27 	teacher who provides instructional services to the charter school through a cooperative 
23.28 	formed under chapter 308A when the teacher also serves as a member of on the charter 
23.29 	school board of directors.
23.30 	(f) The conflict of interest provisions under this subdivision do not apply to a teacher 
23.31 	who provides services to a charter school through a cooperative formed under chapter 
23.32 	308A when the teacher also serves on the charter school board of directors.
23.33 		Subd. 5.Conversion of existing schools. A board of an independent or special 
23.34 	school district may convert one or more of its existing schools to charter schools under 
23.35 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
23.36 	conversion. The conversion must occur at the beginning of an academic year.
24.1 		Subd. 6.Charter contract. The authorization for a charter school must be in the 
24.2 	form of a written contract signed by the authorizer and the board of directors of the charter 
24.3 	school. The contract must be completed within 45 business days of the commissioner's 
24.4 	approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a 
24.5 	copy of the signed charter contract within ten business days of its execution. The contract 
24.6 	for a charter school must be in writing and contain at least the following:
24.7 	(1) a declaration that the charter school will carry out the primary purpose in 
24.8 	subdivision 1 and how the school will report its implementation of the primary purpose;
24.9 	(1) (2) a declaration of the any additional purposes in subdivision 1 that the school 
24.10 	intends to carry out and how the school will report its implementation of those purposes;
24.11 	(2) (3) a description of the school program and the specific academic and 
24.12 	nonacademic outcomes that pupils must achieve;
24.13 	(3) (4) a statement of admission policies and procedures;
24.14 	(4) (5) a governance, management, and administration plan for the school;
24.15 	(5) (6) signed agreements from charter school board members to comply with all 
24.16 	federal and state laws governing organizational, programmatic, and financial requirements 
24.17 	applicable to charter schools;
24.18 	(6) (7) the criteria, processes, and procedures that the authorizer will use for 
24.19 	ongoing oversight of operational, financial, and academic performance to monitor and 
24.20 	evaluate the fiscal, operational, and academic performance consistent with subdivision 
24.21 	15, paragraphs (a) and (b);
24.22 	(7) (8) for contract renewal, the formal written performance evaluation of the school 
24.23 	that is a prerequisite for reviewing a charter contract under subdivision 15;
24.24 	(8) (9) types and amounts of insurance liability coverage to be obtained by the 
24.25 	charter school, consistent with subdivision 8, paragraph (k);
24.26 	(9) (10) consistent with subdivision 25, paragraph (d), a provision to indemnify and 
24.27 	hold harmless the authorizer and its officers, agents, and employees from any suit, claim, 
24.28 	or liability arising from any operation of the charter school, and the commissioner and 
24.29 	department officers, agents, and employees notwithstanding section 3.736;
24.30 	(10) (11) the term of the initial contract, which may be up to five years plus an 
24.31 	additional preoperational planning year, and up to five years for a renewed contract or a 
24.32 	contract with a new authorizer after a transfer of authorizers, if warranted by the school's 
24.33 	academic, financial, and operational performance;
24.34 	(11) (12) how the board of directors or the operators of the charter school will 
24.35 	provide special instruction and services for children with a disability under sections 
24.36 	125A.03 to 125A.24, and 125A.65, a description of the financial parameters within 
25.1 	which the charter school will operate to provide the special instruction and services to 
25.2 	children with a disability;
25.3 	(12) the process and criteria the authorizer intends to use to monitor and evaluate the 
25.4 	fiscal and student performance of the charter school, consistent with subdivision 15; and
25.5 	(13) the specific conditions for contract renewal, which identify performance under 
25.6 	the primary purpose of subdivision 1 as the most important factor in determining contract 
25.7 	renewal; and
25.8 	(13) (14) the plan for an orderly closing of the school under chapter 317A, if
25.9 	 whether the closure is a termination for cause, a voluntary termination, or a nonrenewal 
25.10 	of the contract, and that includes establishing the responsibilities of the school board of 
25.11 	directors and the authorizer and notifying the commissioner, authorizer, school district in 
25.12 	which the charter school is located, and parents of enrolled students about the closure, 
25.13 	the transfer of student records to students' resident districts, and procedures for closing 
25.14 	financial operations.
25.15 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
25.16 	commissioner and its authorizer by December 31 each year.
25.17 	(b) The charter school, with the assistance of the auditor conducting the audit, 
25.18 	must include with the report, as supplemental information, a copy of all charter school 
25.19 	agreements for corporate management services, including parent company or other 
25.20 	administrative, financial, and staffing services. If the entity that provides the professional 
25.21 	services to the charter school is exempt from taxation under section 501 of the Internal 
25.22 	Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy 
25.23 	of the annual return required under section 6033 of the Internal Revenue Code of 1986.
25.24 	(c) A charter school independent audit report shall include audited financial data of 
25.25 	an affiliated building corporation or other component unit.
25.26 	(c) (d) If the audit report finds that a material weakness exists in the financial 
25.27 	reporting systems of a charter school, the charter school must submit a written report to 
25.28 	the commissioner explaining how the material weakness will be resolved. An auditor, 
25.29 	as a condition of providing financial services to a charter school, must agree to make 
25.30 	available information about a charter school's financial audit to the commissioner and 
25.31 	authorizer upon request.
25.32 		Subd. 7.Public status; exemption from statutes and rules. A charter school is 
25.33 	a public school and is part of the state's system of public education. A charter school is 
25.34 	exempt from all statutes and rules applicable to a school, school board, or school district 
25.35 	unless a statute or rule is made specifically applicable to a charter school or is included 
25.36 	in this section.
26.1 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
26.2 	federal, state, and local health and safety requirements applicable to school districts.
26.3 	(b) A school must comply with statewide accountability requirements governing 
26.4 	standards and assessments in chapter 120B.
26.5 	(c) A school authorized by a school board may be located in any district, unless the 
26.6 	school board of the district of the proposed location disapproves by written resolution.
26.7 	(d) A charter school must be nonsectarian in its programs, admission policies, 
26.8 	employment practices, and all other operations. An authorizer may not authorize a charter 
26.9 	school or program that is affiliated with a nonpublic sectarian school or a religious 
26.10 	institution. A charter school student must be released for religious instruction, consistent 
26.11 	with section 120A.22, subdivision 12, clause (3).
26.12 	(e) Charter schools must not be used as a method of providing education or 
26.13 	generating revenue for students who are being home-schooled. This paragraph does not 
26.14 	apply to shared time aid under section 126C.19.
26.15 	(f) The primary focus of a charter school must be to provide a comprehensive 
26.16 	program of instruction for at least one grade or age group from five through 18 years 
26.17 	of age. Instruction may be provided to people younger than five years and older than 
26.18 	18 years of age.
26.19 	(g) A charter school may not charge tuition.
26.20 	(h) A charter school is subject to and must comply with chapter 363A and section 
26.21 	121A.04.
26.22 	(i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
26.23 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
26.24 	123B.34 to 123B.39.
26.25 	(j) A charter school is subject to the same financial audits, audit procedures, and 
26.26 	audit requirements as a district, except as required under subdivision 6a. Audits must be 
26.27 	conducted in compliance with generally accepted governmental auditing standards, the 
26.28 	federal Single Audit Act, if applicable, and section 6.65. A charter school is subject 
26.29 	to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04; 
26.30 	118A.05; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with 
26.31 	the requirements of sections 123B.75 to 123B.83, except to the extent deviations are 
26.32 	necessary because of the program at the school. Deviations must be approved by the 
26.33 	commissioner and authorizer. The Department of Education, state auditor, legislative 
26.34 	auditor, or authorizer may conduct financial, program, or compliance audits. A charter 
26.35 	school determined to be in statutory operating debt under sections 123B.81 to 123B.83
26.36 	must submit a plan under section 123B.81, subdivision 4.
27.1 	(k) A charter school is a district for the purposes of tort liability under chapter 466.
27.2 	(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22, 
27.3 	subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.
27.4 	(m) A charter school is subject to the Pledge of Allegiance requirement under 
27.5 	section 121A.11, subdivision 3.
27.6 	(n) A charter school offering online courses or programs must comply with section 
27.7 	124D.095.
27.8 	(o) A charter school and charter school board of directors are subject to chapter 181.
27.9 	(p) A charter school must comply with section 120A.22, subdivision 7, governing 
27.10 	the transfer of students' educational records and sections 138.163 and 138.17 governing 
27.11 	the management of local records.
27.12 	(q) A charter school that provides early childhood health and developmental 
27.13 	screening must comply with sections 121A.16 to 121A.19.
27.14 	(r) A charter school that provides school-sponsored youth athletic activities must 
27.15 	comply with section 121A.38.
27.16 	(s) A charter school is subject to and must comply with continuing truant notification 
27.17 	under section 260A.03.
27.18 		Subd. 8a.Aid reduction. The commissioner may reduce a charter school's state aid 
27.19 	under section 127A.42 or 127A.43 if the charter school board fails to correct a violation 
27.20 	under this section.
27.21 		Subd. 8b.Aid reduction for violations. The commissioner may reduce a charter 
27.22 	school's state aid by an amount not to exceed 60 percent of the charter school's basic 
27.23 	revenue for the period of time that a violation of law occurs.
27.24 		Subd. 9.Admission requirements. (a) A charter school may limit admission to:
27.25 	(1) pupils within an age group or grade level;
27.26 	(2) pupils who are eligible to participate in the graduation incentives program under 
27.27 	section 124D.68; or
27.28 	(3) residents of a specific geographic area in which the school is located when the 
27.29 	majority of students served by the school are members of underserved populations.
27.30 	(b) A charter school shall enroll an eligible pupil who submits a timely application, 
27.31 	unless the number of applications exceeds the capacity of a program, class, grade level, or 
27.32 	building. In this case, pupils must be accepted by lot. The charter school must develop 
27.33 	and publish, including on its Web site, a lottery policy and process that it must use when 
27.34 	accepting pupils by lot.
28.1 	(c) A charter school shall give enrollment preference to a sibling of an enrolled pupil 
28.2 	and to a foster child of that pupil's parents and may give preference for enrolling children 
28.3 	of the school's staff before accepting other pupils by lot.
28.4 	(d) A person shall not be admitted to a charter school (1) as a kindergarten pupil, 
28.5 	unless the pupil is at least five years of age on September 1 of the calendar year in which 
28.6 	the school year for which the pupil seeks admission commences; or (2) as a first grade 
28.7 	student, unless the pupil is at least six years of age on September 1 of the calendar year in 
28.8 	which the school year for which the pupil seeks admission commences or has completed 
28.9 	kindergarten; except that a charter school may establish and publish on its Web site a 
28.10 	policy for admission of selected pupils at an earlier age, consistent with the enrollment 
28.11 	process in paragraphs (b) and (c).
28.12 	(e) Except as permitted in paragraph (d), a charter school may not limit admission 
28.13 	to pupils on the basis of intellectual ability, measures of achievement or aptitude, or 
28.14 	athletic ability and may not establish any criteria or requirements for admission that are 
28.15 	inconsistent with this subdivision.
28.16 	(f) The charter school shall not distribute any services or goods of value to students, 
28.17 	parents, or guardians as an inducement, term, or condition of enrolling a student in a 
28.18 	charter school.
28.19 		Subd. 10.Pupil performance. A charter school must design its programs to at 
28.20 	least meet the outcomes adopted by the commissioner for public school students. In 
28.21 	the absence of the commissioner's requirements, the school must meet the outcomes 
28.22 	contained in the contract with the authorizer. The achievement levels of the outcomes 
28.23 	contained in the contract may exceed the achievement levels of any outcomes adopted by 
28.24 	the commissioner for public school students.
28.25 		Subd. 11.Employment and other operating matters. (a) A charter school must 
28.26 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1, 
28.27 	who hold valid licenses to perform the particular service for which they are employed in 
28.28 	the school. The charter school's state aid may be reduced under section 127A.43 if the 
28.29 	school employs a teacher who is not appropriately licensed or approved by the board of 
28.30 	teaching. The school may employ necessary employees who are not required to hold 
28.31 	teaching licenses to perform duties other than teaching and may contract for other services. 
28.32 	The school may discharge teachers and nonlicensed employees. The charter school board 
28.33 	is subject to section 181.932. When offering employment to a prospective employee, a 
28.34 	charter school must give that employee a written description of the terms and conditions 
28.35 	of employment and the school's personnel policies.
29.1 	(b) A person, without holding a valid administrator's license, may perform 
29.2 	administrative, supervisory, or instructional leadership duties. The board of directors shall 
29.3 	establish qualifications for persons that hold administrative, supervisory, or instructional 
29.4 	leadership roles. The qualifications shall include at least the following areas: instruction 
29.5 	and assessment; human resource and personnel management; financial management; 
29.6 	legal and compliance management; effective communication; and board, authorizer, and 
29.7 	community relationships. The board of directors shall use those qualifications as the basis 
29.8 	for job descriptions, hiring, and performance evaluations of those who hold administrative, 
29.9 	supervisory, or instructional leadership roles. The board of directors and an individual 
29.10 	who does not hold a valid administrative license and who serves in an administrative, 
29.11 	supervisory, or instructional leadership position shall develop a professional development 
29.12 	plan. Documentation of the implementation of the professional development plan of these 
29.13 	persons shall be included in the school's annual report.
29.14 	(c) The board of directors also shall decide and be responsible for matters related to 
29.15 	the operation of the school, including budgeting, curriculum and operating procedures.
29.16 		Subd. 12.Pupils with a disability. A charter school must comply with sections 
29.17 	125A.02, 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils 
29.18 	with a disability as though it were a district.
29.19 		Subd. 13.Length of school year. A charter school must provide instruction each 
29.20 	year for at least the number of hours required by section 120A.41. It may provide 
29.21 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
29.22 		Subd. 14.Annual public reports. A charter school must publish an annual report 
29.23 	approved by the board of directors. The annual report must at least include information 
29.24 	on school enrollment, student attrition, governance and management, staffing, finances, 
29.25 	academic performance, operational performance, innovative practices and implementation, 
29.26 	and future plans. A charter school must post the annual report on the school's official Web 
29.27 	site. The charter school must also distribute the annual report by publication, mail, or 
29.28 	electronic means to the commissioner, its authorizer, school employees, and parents and 
29.29 	legal guardians of students enrolled in the charter school and must also post the report on 
29.30 	the charter school's official Web site. The reports are public data under chapter 13.
29.31 		Subd. 15.Review and comment. (a) The authorizer shall provide a formal written 
29.32 	evaluation of the school's performance before the authorizer renews the charter contract. 
29.33 	The department must review and comment on the authorizer's evaluation process at the 
29.34 	time the authorizer submits its application for approval and each time the authorizer 
29.35 	undergoes its five-year review under subdivision 3, paragraph (i).
30.1 	(b) An authorizer shall monitor and evaluate the fiscal, academic, financial, and
30.2 	 operational, and student performance of the school, and may for this purpose annually 
30.3 	assess a charter school a fee according to paragraph (c). The agreed-upon fee structure 
30.4 	must be stated in the charter school contract.
30.5 	(c) The fee that each charter school pays to an authorizer each year an authorizer 
30.6 	may annually assess is the greater of:
30.7 	(1) the basic formula allowance for that year; or
30.8 	(2) the lesser of:
30.9 	(i) the maximum fee factor times the basic formula allowance for that year; or
30.10 	(ii) the fee factor times the basic formula allowance for that year times the charter 
30.11 	school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal 
30.12 	year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013 
30.13 	and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011, 
30.14 	3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
30.15 	(d) An authorizer may not assess a fee for any required services other than as 
30.16 	provided in this subdivision.
30.17 	(e) For the preoperational planning period, after a school is chartered, the authorizer 
30.18 	may assess a charter school a fee equal to the basic formula allowance.
30.19 	(f) By September 30 of each year, an authorizer shall submit to the commissioner a 
30.20 	statement of income and expenditures related to chartering activities during the previous 
30.21 	school year ending June 30. A copy of the statement shall be given to all schools chartered 
30.22 	by the authorizer.
30.23 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
30.24 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
30.25 	operation must notify the district in which the school is located and the Department of 
30.26 	Education if it will provide its own transportation or use the transportation services of the 
30.27 	district in which it is located for the fiscal year.
30.28 	(b) If a charter school elects to provide transportation for pupils, the transportation 
30.29 	must be provided by the charter school within the district in which the charter school is 
30.30 	located. The state must pay transportation aid to the charter school according to section 
30.31 	124D.11, subdivision 2.
30.32 	For pupils who reside outside the district in which the charter school is located, the 
30.33 	charter school is not required to provide or pay for transportation between the pupil's 
30.34 	residence and the border of the district in which the charter school is located. A parent 
30.35 	may be reimbursed by the charter school for costs of transportation from the pupil's 
30.36 	residence to the border of the district in which the charter school is located if the pupil is 
31.1 	from a family whose income is at or below the poverty level, as determined by the federal 
31.2 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
31.3 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
31.4 	more than 250 miles per week.
31.5 	At the time a pupil enrolls in a charter school, the charter school must provide the 
31.6 	parent or guardian with information regarding the transportation.
31.7 	(c) If a charter school does not elect to provide transportation, transportation for 
31.8 	pupils enrolled at the school must be provided by the district in which the school is 
31.9 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
31.10 	pupil residing in the same district in which the charter school is located. Transportation 
31.11 	may be provided by the district in which the school is located, according to sections 
31.12 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
31.13 	district. If the district provides the transportation, the scheduling of routes, manner and 
31.14 	method of transportation, control and discipline of the pupils, and any other matter relating 
31.15 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
31.16 	control, and management of the district.
31.17 		Subd. 17.Leased space. A charter school may lease space from an independent 
31.18 	or special school board eligible to be an authorizer, other public organization, private, 
31.19 	nonprofit nonsectarian organization, private property owner, or a sectarian organization 
31.20 	if the leased space is constructed as a school facility. The department must review and 
31.21 	approve or disapprove leases in a timely manner.
31.22 		Subd. 17a.Affiliated nonprofit building corporation. (a) Before a charter school 
31.23 	may organize an affiliated nonprofit building corporation (i) to renovate or purchase an 
31.24 	existing facility to serve as a school or (ii) to expand an existing building or construct 
31.25 	a new school facility, an authorizer must submit an affidavit to the commissioner for 
31.26 	approval in the form and manner the commissioner prescribes, and consistent with 
31.27 	paragraphs (b) and (c) or (d).
31.28 	(b) An affiliated nonprofit building corporation under this subdivision must:
31.29 	(1) be incorporated under section 317A;
31.30 	(2) comply with applicable Internal Revenue Service regulations, including 
31.31 	regulations for "supporting organizations" as defined by the Internal Revenue Service;
31.32 	(3) submit to the commissioner each fiscal year a list of current board members 
31.33 	and a copy of its annual audit; and
31.34 	(4) comply with government data practices law under chapter 13.
31.35 	An affiliated nonprofit building corporation must not serve as the leasing agent for 
31.36 	property or facilities it does not own. A charter school that leases a facility from an 
32.1 	affiliated nonprofit building corporation that does not own the leased facility is ineligible 
32.2 	to receive charter school lease aid. The state is immune from liability resulting from a 
32.3 	contract between a charter school and an affiliated nonprofit building corporation.
32.4 	(c) A charter school may organize an affiliated nonprofit building corporation to 
32.5 	renovate or purchase an existing facility to serve as a school if the charter school:
32.6 	(1) has been operating for at least five consecutive school years;
32.7 	(2) has had a net positive unreserved general fund balance as of June 30 in the 
32.8 	preceding five fiscal years;
32.9 	(3) has a long-range strategic and financial plan;
32.10 	(4) completes a feasibility study of available buildings;
32.11 	(5) documents enrollment projections and the need to use an affiliated building 
32.12 	corporation to renovate or purchase an existing facility to serve as a school; and
32.13 	(6) has a plan for the renovation or purchase, which describes the parameters and 
32.14 	budget for the project.
32.15 	(d) A charter school may organize an affiliated nonprofit building corporation to 
32.16 	expand an existing school facility or construct a new school facility if the charter school:
32.17 	(1) demonstrates the lack of facilities available to serve as a school;
32.18 	(2) has been operating for at least eight consecutive school years;
32.19 	(3) has had a net positive unreserved general fund balance as of June 30 in the 
32.20 	preceding five fiscal years;
32.21 	(4) completes a feasibility study of facility options;
32.22 	(5) has a long-range strategic and financial plan that includes enrollment projections 
32.23 	and demonstrates the need for constructing a new school facility; and
32.24 	(6) has a plan for the expansion or new school facility, which describes the 
32.25 	parameters and budget for the project.
32.26 		Subd. 17b.Positive review and comment. (e) A charter school or an affiliated 
32.27 	nonprofit building corporation organized by a charter school must not initiate an 
32.28 	installment contract for purchase, or a lease agreement, or solicit bids for new construction, 
32.29 	expansion, or remodeling of an educational facility that requires an expenditure in 
32.30 	excess of $1,400,000, unless it meets the criteria in subdivision 17a, paragraph (b) and 
32.31 	paragraph (c) or (d), as applicable, and receives a positive review and comment from 
32.32 	the commissioner under section 123B.71.
32.33 		Subd. 19.Disseminate information. (a) The authorizer, the operators, Authorizers
32.34 	 and the department must disseminate information to the public on how to form and 
32.35 	operate a charter school. Charter schools must disseminate information about how to 
33.1 	use the offerings of a charter school. Targeted groups include low-income families and 
33.2 	communities, students of color, and students who are at risk of academic failure.
33.3 	(b) Authorizers, operators, and the department also may disseminate information 
33.4 	about the successful best practices in teaching and learning demonstrated by charter 
33.5 	schools.
33.6 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
33.7 	makes a written request for an extended leave of absence to teach at a charter school, 
33.8 	the district must grant the leave. The district must grant a leave not to exceed a total of 
33.9 	five years. Any request to extend the leave shall be granted only at the discretion of the 
33.10 	school board. The district may require that the request for a leave or extension of leave 
33.11 	be made before February 1 in the school year preceding the school year in which the 
33.12 	teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is 
33.13 	scheduled to terminate. Except as otherwise provided in this subdivision and except for 
33.14 	section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but 
33.15 	not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
33.16 	During a leave, the teacher may continue to aggregate benefits and credits in the 
33.17 	Teachers' Retirement Association account under chapters 354 and 354A, consistent with 
33.18 	subdivision 22.
33.19 		Subd. 21.Collective bargaining. Employees of the board of directors of a charter 
33.20 	school may, if otherwise eligible, organize under chapter 179A and comply with its 
33.21 	provisions. The board of directors of a charter school is a public employer, for the 
33.22 	purposes of chapter 179A, upon formation of one or more bargaining units at the school. 
33.23 	Bargaining units at the school must be separate from any other units within an authorizing 
33.24 	district, except that bargaining units may remain part of the appropriate unit within an 
33.25 	authorizing district, if the employees of the school, the board of directors of the school, 
33.26 	the exclusive representative of the appropriate unit in the authorizing district, and the 
33.27 	board of the authorizing district agree to include the employees in the appropriate unit of 
33.28 	the authorizing district.
33.29 		Subd. 22.Teacher and other employee retirement. (a) Teachers in a charter 
33.30 	school must be public school teachers for the purposes of chapters 354 and 354A.
33.31 	(b) Except for teachers under paragraph (a), employees in a charter school must be 
33.32 	public employees for the purposes of chapter 353.
33.33 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
33.34 	The duration of the contract with an authorizer must be for the term contained in the 
33.35 	contract according to subdivision 6. The authorizer may or may not renew a contract at 
33.36 	the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally 
34.1 	terminate a contract during the term of the contract for any ground listed in paragraph (b). 
34.2 	At least 60 business days before not renewing or terminating a contract, the authorizer 
34.3 	shall notify the board of directors of the charter school of the proposed action in writing. 
34.4 	The notice shall state the grounds for the proposed action in reasonable detail and that the 
34.5 	charter school's board of directors may request in writing an informal hearing before the 
34.6 	authorizer within 15 business days of receiving notice of nonrenewal or termination of 
34.7 	the contract. Failure by the board of directors to make a written request for an informal 
34.8 	hearing within the 15-business-day period shall be treated as acquiescence to the proposed 
34.9 	action. Upon receiving a timely written request for a hearing, the authorizer shall give ten 
34.10 	business days' notice to the charter school's board of directors of the hearing date. The 
34.11 	authorizer shall conduct an informal hearing before taking final action. The authorizer 
34.12 	shall take final action to renew or not renew a contract no later than 20 business days 
34.13 	before the proposed date for terminating the contract or the end date of the contract.
34.14 	(b) A contract may be terminated or not renewed upon any of the following grounds:
34.15 	(1) failure to meet demonstrate satisfactory academic achievement for all groups of 
34.16 	students, including the requirements for pupil performance contained in the contract;
34.17 	(2) failure to meet generally accepted standards of fiscal management;
34.18 	(3) violations of law; or
34.19 	(4) other good cause shown.
34.20 	If a contract is terminated or not renewed under this paragraph, the school must be 
34.21 	dissolved according to the applicable provisions of chapter 317A.
34.22 	(c) If the authorizer and the charter school board of directors mutually agree to 
34.23 	terminate or not renew the contract, a change in authorizers is allowed if the commissioner 
34.24 	approves the change to a different eligible authorizer to authorize the charter school. 
34.25 	Both parties must jointly submit their intent in writing to the commissioner to mutually 
34.26 	terminate the contract. The authorizer that is a party to the existing contract must inform 
34.27 	the proposed authorizer about the fiscal and operational status and student performance 
34.28 	of the school. Before the commissioner determines whether to approve a change in 
34.29 	authorizer, the proposed authorizer must identify any outstanding issues in the proposed 
34.30 	charter contract that were unresolved in the previous charter contract and have the charter 
34.31 	school agree to resolve those issues. If no change in authorizer is approved, the school 
34.32 	must be dissolved according to applicable law and the terms of the contract.
34.33 	(d) The commissioner, after providing reasonable notice to the board of directors of 
34.34 	a charter school and the existing authorizer, and after providing an opportunity for a public 
34.35 	hearing, may terminate the existing contract between the authorizer and the charter school 
34.36 	board if the charter school has a history of:
35.1 	(1) failure to meet pupil performance requirements consistent with state law;
35.2 	(2) financial mismanagement or failure to meet generally accepted standards of 
35.3 	fiscal management; or
35.4 	(3) repeated or major violations of the law.
35.5 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
35.6 	entering a lease of real property with a related party unless the lessor is a nonprofit 
35.7 	corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is 
35.8 	reasonable under section 124D.11, subdivision 4, clause (1).
35.9 	(b) For purposes of this section and section 124D.11:
35.10 	(1) "related party" means an affiliate or immediate relative of the other party in 
35.11 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
35.12 	(2) "affiliate" means a person that directly or indirectly, through one or more 
35.13 	intermediaries, controls, is controlled by, or is under common control with another person;
35.14 	(3) "immediate family" means an individual whose relationship by blood, marriage, 
35.15 	adoption, or partnering is no more remote than first cousin;
35.16 	(4) "person" means an individual or entity of any kind; and
35.17 	(5) "control" means the ability to affect the management, operations, or policy 
35.18 	actions or decisions of a person, whether through ownership of voting securities, by 
35.19 	contract, or otherwise.
35.20 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
35.21 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
35.22 	section 124D.10, subdivision 23a."
35.23 	(d) If a charter school enters into as lessee a lease with a related party and the 
35.24 	charter school subsequently closes, the commissioner has the right to recover from the 
35.25 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
35.26 	subdivision 4, clause (1).
35.27 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
35.28 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
35.29 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
35.30 	same place as the pupil may enroll in the resident district or may submit an application 
35.31 	to a nonresident district according to section 124D.03 at any time. Applications and 
35.32 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
35.33 	The application and notice deadlines in section 124D.03 do not apply under these 
35.34 	circumstances. The closed charter school must transfer the student's educational records 
35.35 	within ten business days of closure to the student's school district of residence where the 
35.36 	records must be retained or transferred under section 120A.22, subdivision 7.
36.1 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
36.2 	school may sue and be sued.
36.3 	(b) The board may not levy taxes or issue bonds.
36.4 	(c) The commissioner, an authorizer, members of the board of an authorizer in 
36.5 	their official capacity, and employees of an authorizer are immune from civil or criminal 
36.6 	liability with respect to all activities related to a charter school they approve or authorize. 
36.7 	The board of directors shall obtain at least the amount of and types of insurance up to the 
36.8 	applicable tort liability limits under chapter 466. The charter school board must submit 
36.9 	a copy of the insurance policy to its authorizer and the commissioner before starting 
36.10 	operations. The charter school board must submit changes in its insurance carrier or policy 
36.11 	to its authorizer and the commissioner within 20 business days of the change.
36.12 	(d) Notwithstanding section 3.736, the charter school shall assume full liability for 
36.13 	its activities and indemnify and hold harmless the authorizer and its officers, agents, and 
36.14 	employees from any suit, claim, or liability arising from any operation of the charter school 
36.15 	and the commissioner and department officers, agents, and employees. A charter school 
36.16 	is not required to indemnify or hold harmless a state employee if the state would not be 
36.17 	required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
36.18 		Subd. 27.Collaboration between charter school and school district. (a) A charter 
36.19 	school board may voluntarily enter into a two-year, renewable agreement for collaboration 
36.20 	to enhance student achievement with a school district within whose geographic boundary 
36.21 	it operates.
36.22 	(b) A school district need not be an approved authorizer to enter into a collaboration 
36.23 	agreement with a charter school. A charter school need not be authorized by the school 
36.24 	district with which it seeks to collaborate.
36.25 	(c) A charter school authorizer is prohibited from requiring a collaboration agreement 
36.26 	as a condition of entering into or renewing a charter contract as defined in subdivision 6.
36.27 	(d) Nothing in this subdivision or in the collaboration agreement may impact in any 
36.28 	way the authority or autonomy of the charter school.
36.29 	(e) Nothing in this subdivision or in the collaboration agreement shall cause the state 
36.30 	to pay twice for the same student, service, or facility or otherwise impact state funding, or 
36.31 	the flow thereof, to the school district or the charter school.
36.32 	(f) The collaboration agreement may include, but need not be limited to, 
36.33 	collaboration regarding facilities, transportation, training, student achievement, 
36.34 	assessments, mutual performance standards, and other areas of mutual agreement.
37.1 	(g) The school district may include the academic performance of the students of a 
37.2 	collaborative charter school site operating within the geographic boundaries of the school 
37.3 	district, for purposes of student assessment and reporting to the state.
37.4 	(h) Districts, authorizers, or charter schools entering into a collaborative agreement 
37.5 	are equally and collectively subject to the same state and federal accountability measures 
37.6 	for student achievement, school performance outcomes, and school improvement 
37.7 	strategies. The collaborative agreement and all accountability measures must be posted 
37.8 	on the district, charter school, and authorizer Web sites.

37.9 	Sec. 10. Minnesota Statutes 2012, section 124D.122, is amended to read:
37.10 	124D.122 ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.
37.11 	The board of any district or a consortium of districts, with the approval of the 
37.12 	commissioner, may establish and operate a flexible learning year program in one or 
37.13 	more of the day or residential facilities for children with a disability within the district.
37.14 	 Consortiums may use a single application and evaluation process, though results, public 
37.15 	hearings, and board approvals must be obtained for each district.

37.16 	Sec. 11. Minnesota Statutes 2012, section 124D.79, subdivision 1, is amended to read:
37.17 		Subdivision 1.Community involvement. The commissioner must provide for the 
37.18 	maximum involvement of the state committees on American Indian education, parents 
37.19 	of American Indian children, secondary students eligible to be served, American Indian 
37.20 	language and culture education teachers, American Indian teachers, teachers' aides, 
37.21 	representatives of community groups, and persons knowledgeable in the field of American 
37.22 	Indian education, in the formulation of policy and procedures relating to the administration 
37.23 	of sections 124D.71 to 124D.82. The commissioner must annually hold a field hearing on 
37.24 	Indian education to gather input from American Indian educators, parents, and students on 
37.25 	the state of American Indian education in Minnesota. Results of the hearing must be made 
37.26 	available to all 11 tribal nations for review and comment.

37.27 	Sec. 12. Minnesota Statutes 2012, section 124D.79, is amended by adding a 
37.28 	subdivision to read:
37.29 		Subd. 4.Consultation with the tribal nations education committee. (a) The 
37.30 	commissioner shall seek consultation with the Tribal Nations Education Committee on all 
37.31 	issues relating to American Indian education including:
37.32 	(1) administration of the commissioner's duties under sections 124D.71 to 124D.82 
37.33 	and other programs;
38.1 	(2) administration of other programs for the education of American Indian people, as 
38.2 	determined by the commissioner;
38.3 	(3) awarding of scholarships to eligible American Indian students;
38.4 	(4) administration of the commissioner's duties regarding awarding of American 
38.5 	Indian postsecondary preparation grants to school districts; and
38.6 	(5) recommendations of education policy changes for American Indians.
38.7 	(b) Membership in the Tribal Nations Education Committee is the sole discretion 
38.8 	of the committee and nothing in this subdivision gives the commissioner authority to 
38.9 	dictate committee membership.

38.10 	Sec. 13. [124D.791] INDIAN EDUCATION DIRECTOR.
38.11 		Subdivision 1.Appointment. An Indian education director shall be appointed by 
38.12 	the commissioner.
38.13 		Subd. 2.Qualifications. The commissioner shall select the Indian education 
38.14 	director on the basis of outstanding professional qualifications and knowledge of 
38.15 	American Indian education, culture, practices, and beliefs. The Indian education director 
38.16 	serves in the unclassified service. The commissioner may remove the Indian education 
38.17 	director for cause. The commissioner is encouraged to seek qualified applicants who 
38.18 	are enrolled members of a tribe.
38.19 		Subd. 3.Compensation. Compensation of the Indian education director shall be 
38.20 	established under chapter 15A.
38.21 		Subd. 4.Duties; powers. (a) The Indian education director shall:
38.22 	(1) serve as the liaison for the department with the Tribal Nations Education 
38.23 	Committee, the 11 reservations, the Minnesota Chippewa tribe, the Minnesota Indian 
38.24 	Affairs Council, and the urban advisory council;
38.25 	(2) evaluate the state of American Indian education in Minnesota;
38.26 	(3) engage the tribal bodies, community groups, parents of children eligible to 
38.27 	be served by Indian education programs, American Indian administrators and teachers, 
38.28 	persons experienced in the training of teachers for American Indian education programs, 
38.29 	the tribally controlled schools, and other persons knowledgeable in the field of American 
38.30 	Indian education and seek their advice on policies that can improve the quality of 
38.31 	American Indian education;
38.32 	(4) advise the commissioner on the American Indian education issues, including:
38.33 	(i) issues facing American Indian students;
38.34 	(ii) policies for American Indian education;
39.1 	(iii) awarding scholarships to eligible American Indian students and in administering 
39.2 	the commissioner's duties regarding awarding of American Indian postsecondary 
39.3 	preparation grants to school districts; and
39.4 	(iv) administration of the commissioner's duties under sections 124D.71 to 124D.82 
39.5 	and other programs for the education of American Indian people;
39.6 	(5) propose to the commissioner legislative changes that will improve the quality 
39.7 	of American Indian education;
39.8 	(6) develop a strategic plan and a long-term framework for American Indian 
39.9 	education, in conjunction with the Minnesota Indian Affairs Council, that is updated every 
39.10 	five years and implemented by the commissioner, with goals to:
39.11 	(i) increase American Indian student achievement, including increased levels of 
39.12 	proficiency and growth on statewide accountability assessments;
39.13 	(ii) increase the number of American Indian teachers in public schools;
39.14 	(iii) close the achievement gap between American Indian students and their more 
39.15 	advantaged peers;
39.16 	(iv) increase the statewide graduation rate for American Indian students; and
39.17 	(v) increase American Indian student placement in postsecondary programs and 
39.18 	the workforce;
39.19 	(7) keep the American Indian community informed about the work of the department 
39.20 	by reporting to the Tribal Nations Education Committee at each committee meeting.

39.21 	Sec. 14. REVISOR'S INSTRUCTION.
 39.22 	The revisor of statutes shall renumber Minnesota Statutes, section 120B.023, 
39.23 	subdivision 2, as Minnesota Statutes, section 120B.021, subdivision 4. The revisor shall 
39.24 	make necessary cross-reference changes consistent with the renumbering.

39.25 	Sec. 15.  REPEALER.
 39.26 	Minnesota Rules, parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525; 
39.27 	3501.0530; 3501.0535; 3501.0540; 3501.0545; and 3501.0550, are repealed.

39.28 	ARTICLE 3
39.29 	SPECIAL PROGRAMS

39.30 	Section 1. Minnesota Statutes 2012, section 15.059, subdivision 5b, is amended to read:
39.31 		Subd. 5b.Continuation dependent on federal law. Notwithstanding this section, 
39.32 	the following councils and committees do not expire unless federal law no longer requires 
39.33 	the existence of the council or committee:
40.1 	(1) Rehabilitation Council for the Blind, created in section 248.10;
40.2 	(2) Juvenile Justice Advisory Committee, created in section 299A.72;
40.3 	(3) Governor's Workforce Development Council, created in section 116L.665;
40.4 	(4) local workforce councils, created in section 116L.666, subdivision 2;
40.5 	(5) Rehabilitation Council, created in section 268A.02, subdivision 2; and
40.6 	(6) Statewide Independent Living Council, created in section 268A.02, subdivision 
40.7 	2; and
40.8 	(7) Interagency Coordinating Council, created in section 125A.28.

40.9 	Sec. 2. Minnesota Statutes 2012, section 125A.27, subdivision 8, is amended to read:
40.10 		Subd. 8.Eligibility for Part C. "Eligibility for Part C" means eligibility for 
40.11 	early childhood special education infant and toddler intervention services under section 
40.12 	125A.02 and Minnesota Rules.

40.13 	Sec. 3. Minnesota Statutes 2012, section 125A.27, subdivision 11, is amended to read:
40.14 		Subd. 11.Interagency child find systems. "Interagency child find systems" means 
40.15 	activities developed on an interagency basis with the involvement of interagency early 
40.16 	intervention committees and other relevant community groups, including primary referral 
40.17 	sources included in Code of Federal Regulations, title 34, section 303.303(c), using 
40.18 	rigorous standards to actively seek out, identify, and refer infants and young children, 
40.19 	with, or at risk of, disabilities, and their families, including a child to reduce the need for 
40.20 	future services. The child find system must mandate referrals for a child under the age of 
40.21 	three who: (1) is involved in the subject of a substantiated case of abuse or neglect, or 
40.22 	(2) is identified as directly affected by illegal substance abuse, or withdrawal symptoms 
40.23 	resulting from prenatal drug exposure, to reduce the need for future services. The referral 
40.24 	procedures must specify that a referral must occur within seven calendar days from the 
40.25 	date of identification.

40.26 	Sec. 4. Minnesota Statutes 2012, section 125A.27, subdivision 14, is amended to read:
40.27 		Subd. 14.Parent. "Parent" means the biological parent with parental rights, 
40.28 	adoptive parent, legal guardian, or surrogate parent "parent" as defined by Code of Federal 
40.29 	Regulations, title 34, section 303.27, or a surrogate parent appointed in accordance with 
40.30 	Code of Federal Regulations, title 34, section 303.422, or United States Code, title 20, 
40.31 	section 1439(a)(5).

41.1 	Sec. 5. Minnesota Statutes 2012, section 125A.28, is amended to read:
41.2 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
41.3 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
41.4 	is established, in compliance with Public Law 108-446, section 641. The members must 
41.5 	be appointed by the governor and reasonably represent the population of Minnesota. 
41.6 	Council members must elect the council chair, who may not be a representative of the 
41.7 	Department of Education. The representative of the commissioner may not serve as the 
41.8 	chair. The council must be composed of at least five parents, including persons of color, 
41.9 	of children with disabilities under age 12, including at least three parents of a child 
41.10 	with a disability under age seven, five representatives of public or private providers 
41.11 	of services for children with disabilities under age five, including a special education 
41.12 	director, county social service director, local Head Start director, and a community health 
41.13 	services or public health nursing administrator, one member of the senate, one member of 
41.14 	the house of representatives, one representative of teacher preparation programs in early 
41.15 	childhood-special education or other preparation programs in early childhood intervention, 
41.16 	at least one representative of advocacy organizations for children with disabilities under 
41.17 	age five, one physician who cares for young children with special health care needs, one 
41.18 	representative each from the commissioners of commerce, education, health, human 
41.19 	services, a representative from the state agency responsible for child care, foster care, 
41.20 	mental health, homeless coordinator of education of homeless children and youth, and a 
41.21 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
41.22 	2 to 5, apply to the council. The council must meet at least quarterly.
41.23 	The council must address methods of implementing the state policy of developing 
41.24 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
41.25 	early intervention services for children with disabilities and their families.
41.26 	The duties of the council include recommending policies to ensure a comprehensive 
41.27 	and coordinated system of all state and local agency services for children under age five 
41.28 	with disabilities and their families. The policies must address how to incorporate each 
41.29 	agency's services into a unified state and local system of multidisciplinary assessment 
41.30 	practices, individual intervention plans, comprehensive systems to find children in need of 
41.31 	services, methods to improve public awareness, and assistance in determining the role of 
41.32 	interagency early intervention committees.
41.33 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
41.34 	federal Office of Special Education, the council must recommend to the governor and the 
41.35 	commissioners of education, health, human services, commerce, and employment and 
41.36 	economic development policies for a comprehensive and coordinated system.
42.1 	On an annual basis, the council must prepare and submit an annual report to the 
42.2 	governor and the secretary of the federal Department of Education on the status of early 
42.3 	intervention services and programs for infants and toddlers with disabilities and their 
42.4 	families under the Individuals with Disabilities Education Act, United States Code, title 
42.5 	20, sections 1471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The 
42.6 	Minnesota Part C annual performance report may serve as the report.
42.7 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
42.8 	Council expires on June 30, 2014 does not expire unless federal law no longer requires 
42.9 	the existence of the council or committee.

42.10 	Sec. 6. Minnesota Statutes 2012, section 125A.29, is amended to read:
42.11 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
42.12 	BOARDS.
42.13 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
42.14 	provide, and pay for appropriate services, and to facilitate payment for services from public 
42.15 	and private sources. Appropriate services for children eligible under section 125A.02 must 
42.16 	be determined in consultation with parents, physicians, and other educational, medical, 
42.17 	health, and human services providers. The services provided must be in conformity with:
42.18 	(1) an IFSP for each eligible infant and toddler from birth through age two and 
42.19 	the infant's or toddler's family including:
42.20 	(i) American Indian infants and toddlers with disabilities and their families residing 
42.21 	on a reservation geographically located in the state;
42.22 	(ii) infants and toddlers with disabilities who are homeless children and their 
42.23 	families; and
42.24 	(iii) infants and toddlers with disabilities who are wards of the state; or
42.25 	(2) an individualized education program (IEP) or individual service plan (ISP) for 
42.26 	each eligible child ages three through four.
42.27 	(b) Appropriate early intervention services include family education and 
42.28 	counseling, home visits, occupational and physical therapy, speech pathology, audiology, 
42.29 	psychological services, special instruction, nursing, respite, nutrition, assistive technology, 
42.30 	transportation and related costs, social work, vision services, case management services 
42.31 	provided in conformity with an IFSP that are designed to meet the special developmental 
42.32 	needs of an eligible child and the needs of the child's family related to enhancing the 
42.33 	child's development and that are selected in collaboration with the parent. These services 
42.34 	include core early intervention services and additional early intervention services listed in 
42.35 	this section and infant and toddler intervention services defined under United States Code, 
43.1 	title 20, sections 1431 to 1444 and Code of Federal Regulations, title 34, section 303,
43.2 	 including service coordination under section 125A.33, medical services for diagnostic and 
43.3 	evaluation purposes, early identification, and screening, assessment, and health services 
43.4 	necessary to enable children with disabilities to benefit from early intervention services.
43.5 	(c) School and county boards shall coordinate early intervention services. In the 
43.6 	absence of agreements established according to section 125A.39, service responsibilities 
43.7 	for children birth through age two are as follows:
43.8 	(1) school boards must provide, pay for, and facilitate payment for special education 
43.9 	and related services required under sections 125A.03 and 125A.06;
43.10 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
43.11 	services of social work, psychology, transportation and related costs, nursing, respite, and 
43.12 	nutrition services not required under clause (1).
43.13 	(d) School and county boards may develop an interagency agreement according 
43.14 	to section 125A.39 to establish agency responsibility that assures early intervention 
43.15 	services are coordinated, provided, paid for, and that payment is facilitated from public 
43.16 	and private sources.
43.17 	(e) County and school boards must jointly determine the primary agency in this 
43.18 	cooperative effort and must notify the commissioner of the state lead agency of their 
43.19 	decision.

43.20 	Sec. 7. Minnesota Statutes 2012, section 125A.30, is amended to read:
43.21 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
43.22 	(a) A school district, group of districts, or special education cooperative, in 
43.23 	cooperation with the health and human service agencies located in the county or counties 
43.24 	in which the district or cooperative is located, must establish an Interagency Early 
43.25 	Intervention Committee for children with disabilities under age five and their families 
43.26 	under this section, and for children with disabilities ages three to 22 consistent with 
43.27 	the requirements under sections 125A.023 and 125A.027. Committees must include 
43.28 	representatives of local health, education, and county human service agencies, county 
43.29 	boards, school boards, early childhood family education programs, Head Start, parents of 
43.30 	young children with disabilities under age 12, child care resource and referral agencies, 
43.31 	school readiness programs, current service providers, and may also include representatives 
43.32 	from other private or public agencies and school nurses. The committee must elect a chair 
43.33 	from among its members and must meet at least quarterly.
43.34 	(b) The committee must develop and implement interagency policies and procedures 
43.35 	concerning the following ongoing duties:
44.1 	(1) develop public awareness systems designed to inform potential recipient families, 
44.2 	especially parents with premature infants, or infants with other physical risk factors 
44.3 	associated with learning or development complications, of available programs and services;
44.4 	(2) to reduce families' need for future services, and especially parents with premature 
44.5 	infants, or infants with other physical risk factors associated with learning or development 
44.6 	complications, implement interagency child find systems designed to actively seek out, 
44.7 	identify, and refer infants and young children with, or at risk of, disabilities, including 
44.8 	a child under the age of three who: (i) is involved in the subject of a substantiated case 
44.9 	of abuse or neglect or (ii) is identified as directly affected by illegal substance abuse, or 
44.10 	withdrawal symptoms resulting from prenatal drug exposure;
44.11 	(3) establish and evaluate the identification, referral, child screening, evaluation, 
44.12 	child- and family-directed assessment systems, procedural safeguard process, 
44.13 	and community learning systems to recommend, where necessary, alterations and 
44.14 	improvements;
44.15 	(4) assure the development of individualized family service plans for all eligible 
44.16 	infants and toddlers with disabilities from birth through age two, and their families, 
44.17 	and individualized education programs and individual service plans when necessary to 
44.18 	appropriately serve children with disabilities, age three and older, and their families and 
44.19 	recommend assignment of financial responsibilities to the appropriate agencies;
44.20 	(5) implement a process for assuring that services involve cooperating agencies at all 
44.21 	steps leading to individualized programs;
44.22 	(6) facilitate the development of a transitional transition plan if a service provider is 
44.23 	not recommended to continue to provide services in the individual family service plan by 
44.24 	the time a child is two years and nine months old;
44.25 	(7) identify the current services and funding being provided within the community 
44.26 	for children with disabilities under age five and their families;
44.27 	(8) develop a plan for the allocation and expenditure of additional state and federal 
44.28 	early intervention funds under United States Code, title 20, section 1471 et seq. (Part C, 
44.29 	Public Law 108-446) and United States Code, title 20, section 631, et seq. (Chapter I, 
44.30 	Public Law 89-313); and
44.31 	(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal 
44.32 	law to enable a member of an interagency early intervention committee to allow another 
44.33 	member access to data classified as not public.
44.34 	(c) The local committee shall also:
45.1 	(1) participate in needs assessments and program planning activities conducted by 
45.2 	local social service, health and education agencies for young children with disabilities 
45.3 	and their families; and.
45.4 	(2) review and comment on the early intervention section of the total special 
45.5 	education system for the district, the county social service plan, the section or sections of 
45.6 	the community health services plan that address needs of and service activities targeted 
45.7 	to children with special health care needs, the section on children with special needs in 
45.8 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
45.9 	services for children with special needs, any relevant portions of early childhood education 
45.10 	plans, such as early childhood family education or school readiness, or other applicable 
45.11 	coordinated school and community plans for early childhood programs and services, and 
45.12 	the section of the maternal and child health special project grants that address needs of and 
45.13 	service activities targeted to children with chronic illness and disabilities.

45.14 	Sec. 8. Minnesota Statutes 2012, section 125A.32, is amended to read:
45.15 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
45.16 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
45.17 	include:
45.18 	(1) a parent or parents of the child, as defined in Code of Federal Regulations, 
45.19 	title 34, section 303.27;
45.20 	(2) other family members, as requested by the parent, if feasible to do so;
45.21 	(3) an advocate or person outside of the family, if the parent requests that the 
45.22 	person participate;
45.23 	(4) the service coordinator who has been working with the family since the 
45.24 	initial referral, or who has been designated by the public agency to be responsible for 
45.25 	implementation of the IFSP and coordination with other agencies including transition 
45.26 	services; and
45.27 	(5) a person or persons involved in conducting evaluations and assessments.; and
45.28 	(6) as appropriate, persons who will be providing early intervention services under 
45.29 	the plan to the child or family.
45.30 	(b) The IFSP must include:
45.31 	(1) information about the child's developmental status;
45.32 	(2) family information, with the consent of the family;
45.33 	(3) measurable results or major outcomes expected to be achieved by the child with 
45.34 	the family's assistance, that include developmentally appropriate preliteracy and language 
45.35 	skills for the child, and the criteria, procedures, and timelines;
46.1 	(4) specific early intervention services based on peer-reviewed research, to the 
46.2 	extent practicable, necessary to meet the unique needs of the child and the family to 
46.3 	achieve the outcomes;
46.4 	(5) payment arrangements, if any;
46.5 	(6) medical and other services that the child needs, but that are not required under 
46.6 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
46.7 	et seq. (Part C, Public Law 108-446) including funding sources to be used in paying for 
46.8 	those services and the steps that will be taken to secure those services through public 
46.9 	or private sources;
46.10 	(7) dates and duration of early intervention services;
46.11 	(8) name of the service coordinator;
46.12 	(9) steps to be taken to support a child's transition from early infant and toddler
46.13 	 intervention services to other appropriate services, including convening a transition 
46.14 	conference at least 90 days or, at the discretion of all parties, not more than nine months 
46.15 	before the child is eligible for preschool services; and
46.16 	(10) signature of the parent and authorized signatures of the agencies responsible 
46.17 	for providing, paying for, or facilitating payment, or any combination of these, for early
46.18 	 infant and toddler intervention services.

46.19 	Sec. 9. Minnesota Statutes 2012, section 125A.33, is amended to read:
46.20 	125A.33 SERVICE COORDINATION.
46.21 	(a) The team responsible for the initial evaluation and the child- and family-directed 
46.22 	assessment and for developing the IFSP under section 125A.32, if appropriate, must 
46.23 	select a service coordinator to carry out service coordination activities on an interagency 
46.24 	basis. Service coordination must actively promote a family's capacity and competency 
46.25 	to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the 
46.26 	family's needs. Service coordination activities include:
46.27 	(1) coordinating the performance of evaluations and assessments;
46.28 	(2) facilitating and participating in the development, review, and evaluation of 
46.29 	individualized family service plans;
46.30 	(3) assisting families in identifying available service providers;
46.31 	(4) coordinating and monitoring the delivery of available services;
46.32 	(5) informing families of the availability of advocacy services;
46.33 	(6) coordinating with medical, health, and other service providers;
46.34 	(7) facilitating the development of a transition plan to preschool, school, or if 
46.35 	appropriate, to other services, at least 90 days before the time the child is no longer 
47.1 	eligible for early infant and toddler intervention services or, at the discretion of all parties, 
47.2 	not more than nine months prior to the child's eligibility for preschool services third 
47.3 	birthday, if appropriate;
47.4 	(8) managing the early intervention record and submitting additional information to 
47.5 	the local primary agency at the time of periodic review and annual evaluations; and
47.6 	(9) notifying a local primary agency when disputes between agencies impact service 
47.7 	delivery required by an IFSP.
47.8 	(b) A service coordinator must be knowledgeable about children and families 
47.9 	receiving services under this section, requirements of state and federal law, and services 
47.10 	available in the interagency early childhood intervention system. The IFSP must include 
47.11 	the name of the services coordinator from the profession most relevant to the child's or 
47.12 	family's needs or who is otherwise qualified to carry out all applicable responsibilities 
47.13 	under the Individuals with Disabilities Education Act, United States Code, title 20, 
47.14 	sections 1471 to 1485 (Part C, Public Law 102-119), who will be responsible for 
47.15 	implementing the early intervention services identified in the child's IFSP, including 
47.16 	transition services, and coordination with other agencies and persons.

47.17 	Sec. 10. Minnesota Statutes 2012, section 125A.35, subdivision 1, is amended to read:
47.18 		Subdivision 1.Lead agency; allocation of resources. The state lead agency must 
47.19 	administer the early intervention account that consists of federal allocations. The Part C 
47.20 	state plan must state the amount of federal resources in the early intervention account 
47.21 	available for use by local agencies. The state lead agency must distribute the funds to the 
47.22 	local primary agency designated by an Interagency Early Intervention Committee based 
47.23 	on a formula that includes a December 1 count of the prior year of Part C eligible children 
47.24 	for the following purposes:
47.25 	(1) as provided in Code of Federal Regulations, title 34, part 303.425 303.430, to 
47.26 	arrange for payment for early intervention services not elsewhere available, or to pay for 
47.27 	services during the pendency of a conflict procedure, including mediation, complaints, due 
47.28 	process hearings, and interagency disputes; and
47.29 	(2) to support interagency child find system activities.

47.30 	Sec. 11. Minnesota Statutes 2012, section 125A.36, is amended to read:
47.31 	125A.36 PAYMENT FOR SERVICES.
47.32 	Core early intervention services must be provided at public expense with no cost to 
47.33 	parents. Parents must be requested to assist in the cost of additional early intervention 
47.34 	services by using third-party payment sources and applying for available resources. 
48.1 	Payment structures permitted under state law must be used to pay for additional early 
48.2 	intervention services. Parental financial responsibility must be clearly defined in the 
48.3 	IFSP. A parent's inability to pay must not prohibit a child from receiving needed early 
48.4 	intervention services.

48.5 	Sec. 12. Minnesota Statutes 2012, section 125A.43, is amended to read:
48.6 	125A.43 MEDIATION PROCEDURE.
48.7 	(a) The commissioner, or the commissioner's designee, of the state lead agency must 
48.8 	use federal funds to provide mediation for the activities in paragraphs (b) and (c).
48.9 	(b) A parent may resolve a dispute regarding issues in section 125A.42, paragraph 
48.10 	(b), clause (5), through mediation. If the parent chooses mediation, mediation must be 
48.11 	voluntary on the part of the parties. The parent and the public agencies must complete the 
48.12 	mediation process within 30 calendar days of the date the Office of Dispute Resolution
48.13 	 Department of Education receives a parent's written request for mediation signed by 
48.14 	the parent and the district. The mediation process may not be used to delay a parent's 
48.15 	right to a due process hearing. The resolution of the mediation is not binding on any 
48.16 	party both parties.
48.17 	(c) Resolution of a dispute through mediation, or other form of alternative dispute 
48.18 	resolution, is not limited to formal disputes arising from the objection of a parent or 
48.19 	guardian and is not limited to the period following a request for a due process hearing.
48.20 	(d) The commissioner shall provide training and resources to school districts to 
48.21 	facilitate early identification of disputes and access to mediation.
48.22 	(e) The local primary agency may request mediation on behalf of involved agencies 
48.23 	when there are disputes between agencies regarding responsibilities to coordinate, provide, 
48.24 	pay for, or facilitate payment for early intervention services.

48.25 	Sec. 13. RULEMAKING AUTHORITY.
 48.26 	The commissioner of education shall amend Minnesota Rules related to the provision 
48.27 	of special education under Part C of the Individuals with Disabilities Education Act using 
48.28 	the expedited rulemaking process in section 14.389. The commissioner shall amend rules 
48.29 	in response to new federal regulations in Code of Federal Regulations, title 34, part 303, 
48.30 	including definitions of and procedures related to evaluation and assessment, including 
48.31 	assessment of the child and family, initial evaluation and assessment, native language, 
48.32 	the use of informed clinical opinion as an independent basis to establish eligibility, and 
48.33 	transition of a toddler from Part C consistent with Code of Federal Regulations, title 
48.34 	34, sections 303.24, 303.25 and 303.321.

49.1 	Sec. 14.  REPEALER.
 49.2 	Minnesota Statutes 2012, section 125A.35, subdivisions 4 and 5, are repealed.

49.3 	ARTICLE 4
49.4 	LIBRARIES

49.5 	Section 1. REVISOR'S INSTRUCTION.
 49.6 	In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute 
49.7 	the term "Division of State Library Services" for "Library Development and Services," 
49.8 	"Office of Library Development and Services," or "LDS" where "LDS" stands for "Library 
49.9 	Development and Services." The revisor shall also make grammatical changes related 
49.10 	to the changes in terms.

49.11 	ARTICLE 5
49.12 	EARLY CHILDHOOD EDUCATION

49.13 	Section 1. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
49.14 	8, as amended by Laws 2012, chapter 239, article 3, section 4, is amended to read:
49.15 		Subd. 8.Early childhood education scholarships. For grants to early childhood 
49.16 	education scholarships for public or private early childhood preschool programs for 
49.17 	children ages 3 to 5:

49.18		$
	2,000,000
	.....
	2013
	
49.19 	(a) All children whose parents or legal guardians meet the eligibility requirements 
49.20 	of paragraph (b) established by the commissioner are eligible to receive early childhood 
49.21 	education scholarships under this section.
49.22 	(b) A parent or legal guardian is eligible for an early childhood education scholarship 
49.23 	if the parent or legal guardian:
49.24 	(1) has a child three or four years of age on September 1, beginning in calendar 
49.25 	year 2012; and
49.26 	(2)(i) has income equal to or less than 47 percent of the state median income in the 
49.27 	current calendar year; or
49.28 	(ii) can document their child's identification through another public funding 
49.29 	eligibility process, including the Free and Reduced Price Lunch Program, National School 
49.30 	Lunch Act, United States Code, title 42, section 1751, part 210; Head Start under federal 
49.31 	Improving Head Start for School Readiness Act of 2007; Minnesota family investment 
49.32 	program under chapter 256J; and child care assistance programs under chapter 119B.
50.1 	 Early childhood scholarships may not be counted as earned income for the purposes of 
50.2 	medical assistance, MinnesotaCare, MFIP, child care assistance, or Head Start programs.
50.3 	Each year, if this appropriation is insufficient to provide early childhood education 
50.4 	scholarships to all eligible children, the Department of Education shall make scholarships 
50.5 	available on a first-come, first-served basis.
50.6 	The commissioner of education shall submit a written report to the education 
50.7 	committees of the legislature by January 15, 2012, describing its plan for implementation 
50.8 	of scholarships under this subdivision for the 2012-2013 school year.
50.9 	Any balance in the first year does not cancel but is available in the second year.
50.10 	The base for this program is $3,000,000 each year.