Bill Text: MN HF2083 | 2011-2012 | 87th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Omnibus K-12 bill.

Spectrum: Partisan Bill (Republican 24-0)

Status: (Vetoed) 2012-04-05 - Governor's action Veto Chapter 154 [HF2083 Detail]

Download: Minnesota-2011-HF2083-Engrossed.html

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A bill for an act

relating to education; providing funding and modifying certain early, adult, and
kindergarten through grade 12 education provisions, including general education,
education excellence, special programs, facilities and technology, nutrition and
accounting, libraries, and prevention; providing education forecast adjustments;
appropriating money;amending Minnesota Statutes 2010, sections 122A.40,
subdivisions 10, 11, 13, 19; 122A.41, subdivisions 14, 15; 123A.75, subdivision
1; 123B.41, by adding a subdivision; 123B.42; 123B.43; 124D.111, subdivision
3; 124D.518, subdivision 3, by adding a subdivision; 124D.531, by adding a
subdivision; 126C.10, subdivision 28; Minnesota Statutes 2011 Supplement,
sections 122A.245, subdivision 1; 122A.41, subdivision 6; 123B.41, subdivision
2; 124D.11, subdivision 9; 127A.33; 127A.45, subdivision 2; Laws 2011, First
Special Session chapter 11, article 1, section 36, subdivisions 2, 3, 4, 5, 6, 7,
10; article 2, section 50, subdivisions 2, 3, 4, 5, 6, 7, 9; article 3, section 11,
subdivisions 2, 3, 4, 5, 6; article 4, section 10, subdivisions 2, 3, 4, 6; article 5,
section 12, subdivisions 2, 3, 4; article 6, section 2, subdivisions 2, 3, 5; article 7,
section 2, subdivisions 2, 3, 4; article 8, section 2, subdivisions 2, 3; article 9,
section 3, subdivision 2; repealing Minnesota Statutes 2010, sections 124D.135,
subdivisions 8, 9; 124D.16, subdivisions 6, 7; 124D.20, subdivisions 11, 12.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

    Section 1. Minnesota Statutes 2011 Supplement, section 123B.41, subdivision 2, is
amended to read:
    Subd. 2. Textbook. (a) "Textbook" means any book or book substitute, including
electronic books as well as other printed materials delivered electronically, which a pupil
uses as a text or text substitute in a particular class or program in the school regularly
attended and a copy of which is expected to be available for the individual use of each
pupil in this class or program.
(b) For purposes of calculating the annual nonpublic pupil aid entitlement for
textbooks, the term shall be limited to books, workbooks, or manuals, whether bound
or in loose-leaf form, as well as electronic books and other printed materials delivered
electronically, intended for use as a principal source of study material for a given class or a
group of students.
(c) For purposes of sections 123B.40 to 123B.48, the term includes terms "textbook"
and "software or other educational technology" include only such secular, neutral, and
nonideological textbooks materials as are available, used by, or of benefit to Minnesota
public school pupils.
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 2. Minnesota Statutes 2010, section 123B.41, is amended by adding a subdivision
to read:
    Subd. 5a. Software or other educational technology. For purposes of sections
123B.42 and 123B.43, "software or other educational technology" includes software,
programs, applications, hardware, and any other electronic educational technology.
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 3. Minnesota Statutes 2010, section 123B.42, is amended to read:
123B.42 TEXTBOOKS; INDIVIDUAL INSTRUCTION OR COOPERATIVE
LEARNING MATERIAL; STANDARD TESTS.
    Subdivision 1. Providing education materials and tests. The commissioner of
education shall promulgate rules under the provisions of chapter 14 requiring that in
each school year, based upon formal requests by or on behalf of nonpublic school pupils
in a nonpublic school, the local districts or intermediary service areas must purchase or
otherwise acquire textbooks, individualized instructional or cooperative learning materials,
software or other educational technology, and standardized tests and loan or provide them
for use by children enrolled in that nonpublic school. These textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests must be loaned or provided free to the children for the school year
for which requested. The loan or provision of the textbooks, individualized instructional or
cooperative learning materials, and standardized tests shall be subject to rules prescribed
by the commissioner of education.
    Subd. 1a. Curriculum; electronic components. A school district that provides
curriculum to resident students that has both physical and electronic components must
make the electronic component accessible to a resident student in a home school in
compliance with sections 120A.22 and 120A.24 at the request of the student or the
student's parent or guardian, provided that the district does not incur more than an
incidental cost as a result of providing access electronically.
    Subd. 2. Title to education materials and tests. The title to textbooks,
individualized instructional or cooperative learning materials, software or other
educational technology, and standardized testing materials must remain in the servicing
school district or intermediary service area, and possession or custody may be granted
or charged to administrators of the nonpublic school attended by the nonpublic school
pupil or pupils to whom the textbooks, individualized instructional or cooperative learning
materials, or standardized tests are loaned or provided.
    Subd. 3. Cost; limitation. (a) The cost per pupil of the textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests provided for in this section for each school year must not exceed the
statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
public elementary and secondary schools for textbooks, individualized instructional
materials and standardized tests as computed and established by the department by
February 1 of the preceding school year from the most recent public school year data
then available.
(b) The cost computed in clause (a) shall be increased by an inflation adjustment
equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
subdivision 2 , from the second preceding school year to the current school year.
(c) The commissioner shall allot to the districts or intermediary service areas the
total cost for each school year of providing or loaning the textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests for the pupils in each nonpublic school. The allotment shall not
exceed the product of the statewide average expenditure per pupil, according to clause
(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
who make requests pursuant to this section and who are enrolled as of September 15 of
the current school year.
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 4. Minnesota Statutes 2010, section 123B.43, is amended to read:
123B.43 USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.
(a) The commissioner shall assure that textbooks and individualized instructional
materials loaned to nonpublic school pupils are secular, neutral, nonideological and that
they are incapable of diversion for religious use.
(b) Textbooks and, individualized instructional materials, software and other
technology must not be used in religious courses, devotional exercises, religious training
or any other religious activity.
(c) Textbooks and individualized instructional materials must be loaned only to
individual pupils upon the request of a parent or guardian or the pupil on a form designated
for this use by the commissioner. The request forms shall provide for verification by the
parent or guardian or pupil that the requested textbooks and individualized instructional
materials are for the use of the individual pupil in connection with a program of instruction
in the pupil's elementary or secondary school.
(d) The servicing school district or the intermediary service area must take adequate
measures to ensure an accurate and periodic inventory of all textbooks and, individualized
instructional materials, software and other technology loaned to elementary and secondary
school pupils attending nonpublic schools. The commissioner of education shall
promulgate rules under the provisions of chapter 14 to terminate the eligibility of any
nonpublic school pupil if the commissioner determines, after notice and opportunity for
hearing, that the textbooks or, individualized instructional materials, or software or other
technology have been used in a manner contrary to the provisions of section 123B.41,
subdivision 5 , 123B.42, or this section or any rules promulgated by the commissioner
of education.
(e) Nothing contained in section 123B.41, subdivision 5, 123B.42, or this section
shall be construed to authorize the making of any payments to a nonpublic school or its
faculty, staff or administrators for religious worship or instruction or for any other purpose.
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 5. Minnesota Statutes 2010, section 126C.10, subdivision 28, is amended to read:
    Subd. 28. Equity region. For the purposes of computing equity revenue under
subdivision 24, a district whose with its administrative offices on July 1, 1999, is office
located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County on
January 1, 2012, is part of the metro equity region. Districts whose administrative offices
on July 1, 1999, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
Washington County All other districts are part of the rural equity region.
EFFECTIVE DATE.This section is effective for revenue for fiscal years 2013
and later.

    Sec. 6. Minnesota Statutes 2011 Supplement, section 127A.33, is amended to read:
127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.
(a) The commissioner shall apportion the school endowment fund semiannually
on the first Monday in March and September in each year, to districts whose schools
have been in session at least nine months. The apportionment shall be in proportion to
each district's adjusted average daily membership during the preceding year. Any annual
apportionment in excess of $28 per pupil in adjusted average daily membership must be
reserved and used only for the school technology purposes listed in paragraph (b). The
apportionment shall not be paid to a district for pupils for whom tuition is received by
the district.
(b) For purposes of this section, revenue reserved under paragraph (a) for school
technology purposes may only be used:
(1) to purchase or lease computers and related materials, copying machines,
telecommunications equipment, and other noninstructional equipment;
(2) to purchase or lease assistive technology or equipment for instructional programs;
(3) to purchase new and replacement library media resources or technology;
(4) to pay for ongoing or recurring telecommunications or Internet access costs
associated with Internet access, data lines, and video links; or
(5) to pay for service provider installation fees for installation of new
telecommunications lines or increased bandwidth.
EFFECTIVE DATE.This section is effective for apportionments occurring on or
after July 1, 2012.

    Sec. 7. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
2, is amended to read:
    Subd. 2. General education aid. For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

		$	5,112,037,000 5,720,705,000	.....	2012
		$	5,850,065,000 5,854,570,000	.....	2013

The 2012 appropriation includes $1,678,539,000 $1,660,922,000 for 2011 and
$3,433,498,000 $4,059,783,000 for 2012.
The 2013 appropriation includes $2,297,765,000 $1,696,931,000 for 2012 and
$3,552,300,000 $4,157,639,000 for 2013.

    Sec. 8. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
3, is amended to read:
    Subd. 3. Enrollment options transportation. For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

		$	31,000 42,000	.....	2012
		$	32,000 46,000	.....	2013

    Sec. 9. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
4, is amended to read:
    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
127A.49 :

		$	1,294,000 1,503,000	.....	2012
		$	1,627,000 2,111,000	.....	2013

The 2012 appropriation includes $346,000 for 2011 and $948,000 $1,157,000 for
2012.
The 2013 appropriation includes $631,000 $491,000 for 2012 and $996,000
$1,620,000 for 2013.

    Sec. 10. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
5, is amended to read:
    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
Statutes, section 123A.485:

		$	145,000	.....	2012
		$	180,000 211,000	.....	2013

The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
The 2013 appropriation includes $0 for 2012 and $180,000 $211,000 for 2013.

    Sec. 11. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
6, is amended to read:
    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

		$	14,598,000 15,232,000	.....	2012
		$	16,198,000 15,578,000	.....	2013

The 2012 appropriation includes $5,078,000 $4,161,000 for 2011 and $9,520,000
$11,071,000 for 2012.
The 2013 appropriation includes $6,346,000 $4,699,000 for 2012 and $9,852,000
$10,879,000 for 2013.

    Sec. 12. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
7, is amended to read:
    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

		$	17,178,000 18,864,000	.....	2012
		$	19,056,000 19,061,000	.....	2013

The 2012 appropriation includes $5,895,000 $5,700,000 for 2011 and $11,283,000
$13,164,000 for 2012.
The 2013 appropriation includes $7,521,000 $5,587,000 for 2012 and $11,535,000
$13,474,000 for 2013.

    Sec. 13. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
10, is amended to read:
    Subd. 10. Compensatory pilot project formula aid. For grants for compensatory
pilot project formula aid as calculated under this subdivision:

$

9,776,000 10,228,000

.....

2013

For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20
largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of
compensatory pupil units, minus the amount of compensatory education revenue received
by the district under Minnesota Statutes, section 126C.10, subdivision 3.
The 2013 appropriation includes $0 for 2012 and $9,776,000 $10,228,000 for 2013.
This is a onetime appropriation.

    Sec. 14. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 2

EDUCATION EXCELLENCE

    Section 1. Minnesota Statutes 2011 Supplement, section 122A.245, subdivision 1,
is amended to read:
    Subdivision 1. Requirements. (a) To improve academic excellence, improve ethnic
and cultural diversity in the classroom, and close the academic achievement gap, the
Board of Teaching must approve qualified teacher preparation programs under this section
that are a means to acquire a two-year limited-term license, which the board may renew
one time for an additional one-year term, and to prepare for acquiring a standard license.
The following entities are eligible to participate under this section:
(1) a school district or charter school that forms a partnership with a college or
university that has a board-approved alternative teacher preparation program; or
(2) a school district or charter school, after consulting with a college or university
with a board-approved teacher preparation program, forms a partnership with a nonprofit
corporation organized under chapter 317A for an education-related purpose that has a
board-approved teacher preparation program.
(b) Before participating in this program, a candidate must:
(1) have a bachelor's degree with a 3.0 or higher grade point average unless the
board waives the grade point average requirement based on board-adopted criteria;
(2) pass the reading, writing, and mathematics skills examination under section
122A.09, subdivision 4 , paragraph (b); and
(3) obtain qualifying scores on applicable board-approved rigorous content area and
pedagogy examinations under section 122A.09, subdivision 4, paragraph (e).
(c) The Board of Teaching must issue a two-year limited-term license to a person
who enrolls in an alternative teacher preparation program. This limited-term license is not
a provisional license under section 122A.40 or 122A.41.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2010, section 122A.40, subdivision 10, is amended to read:
    Subd. 10. Negotiated unrequested leave of absence. (a) The school board and the
exclusive bargaining representative of the teachers may must negotiate a plan providing
for unrequested leave of absence without pay or fringe benefits for as many teachers
as may be necessary because of discontinuance of position, lack of pupils, financial
limitations, or merger of classes caused by consolidation of districts. The plan must
base unrequested leave of absence decisions on teachers' subject matter licensure fields
and evaluation outcomes, from the least to most effective category under subdivision
8 and from the least to greatest seniority within each effectiveness category, and must
be consistent with subdivision 11, paragraph (n). Failing to successfully negotiate
such a plan, the provisions of subdivision 11 shall apply. The negotiated plan must not
include provisions which would result in the exercise of seniority by a teacher holding a
provisional license, other than a vocational education license if required for the position,
contrary to the provisions of subdivision 11, clause paragraph (c), or the reinstatement of a
teacher holding a provisional license, other than a vocational education license required
for the position, contrary to the provisions of subdivision 11, clause (e) paragraph (f). The
provisions of section 179A.16 do not apply for the purposes of this subdivision.
(b) For purposes of placing a teacher on unrequested leave of absence or recalling a
teacher from unrequested leave of absence, nothing in this subdivision requires a school
board to reassign a teacher with more seniority to a different subject matter licensure
field in order to accommodate the seniority claims of a teacher who is similarly licensed
and effective but with less seniority. For purposes of this subdivision, a teacher holding
a provisional license is a teacher who has received a waiver or variance to teach from
the Minnesota Board of Teaching.
(c) Notwithstanding section 13.43, subdivision 2, paragraph (a), clause (5), or
other law to the contrary, a teacher's effectiveness category and the underlying data on
the individual teacher generated under the teacher evaluation process in subdivision 8,
paragraph (b), used to determine a teacher's effectiveness category for purposes of this
subdivision are private data on individuals.
(d) Nothing in this subdivision permits a school board to use a teacher's remuneration
as a basis for making unrequested leave of absence or discharge decisions.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to negotiated plans agreed to after that date.

    Sec. 3. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
    Subd. 11. Unrequested leave of absence. The board may place on unrequested
leave of absence, without pay or fringe benefits, as many teachers as may be necessary
because of discontinuance of position, lack of pupils, financial limitations, or merger
of classes caused by consolidation or reorganization of districts under chapter 123A.
The unrequested leave is effective at the close of the school year. In placing teachers on
unrequested leave, the board is governed by the following provisions:
(a) The board may place probationary teachers on unrequested leave first in the
inverse order of their employment. A teacher who has acquired continuing contract
rights must not be placed on unrequested leave of absence while probationary teachers
are retained in positions for which the teacher who has acquired continuing contract
rights is licensed;.
(b) Teachers who have acquired continuing contract rights shall be placed on
unrequested leave of absence in fields in which they are licensed in the inverse order
in which they were employed by the school district. In the case of equal seniority, the
order in which teachers who have acquired continuing contract rights shall be placed on
unrequested leave of absence in fields in which they are licensed is negotiable;.
(c) Notwithstanding the provisions of clause paragraph (b), a teacher is not entitled
to exercise any seniority when that exercise results in that teacher being retained by the
district in a field for which the teacher holds only a provisional license, as defined by the
board of teaching, unless that exercise of seniority results in the placement on unrequested
leave of absence of another teacher who also holds a provisional license in the same field.
The provisions of this clause paragraph do not apply to vocational education licenses;
required for available positions.
(d) Notwithstanding clauses paragraphs (a), (b) and (c), if the placing of a
probationary teacher on unrequested leave before a teacher who has acquired continuing
rights, the placing of a teacher who has acquired continuing contract rights on unrequested
leave before another teacher who has acquired continuing contract rights but who has
greater seniority, or the restriction imposed by the provisions of clause paragraph (c) would
place the district in violation of its affirmative action program, the district may retain the
probationary teacher, the teacher with less seniority, or the provisionally licensed teacher;.
(e) For purposes of placing a teacher on unrequested leave of absence or recalling a
teacher from unrequested leave of absence, nothing in this subdivision requires a school
board to reassign a teacher with more seniority to a different subject matter licensure field
in order to accommodate the seniority claims of a teacher who is similarly licensed and
effective but with less seniority.
(f) Teachers placed on unrequested leave of absence must be reinstated to the
positions from which they have been given leaves of absence or, if not available, to other
available positions in the school district in fields in which they are licensed. Reinstatement
must be in the inverse order of placement on leave of absence. A teacher must not be
reinstated to a position in a field in which the teacher holds only a provisional license,
other than a vocational education license if required for the position, while another teacher
who holds a nonprovisional license in the same field remains on unrequested leave.
The order of reinstatement of teachers who have equal seniority and who are placed on
unrequested leave in the same school year is negotiable;.
(f) (g) Appointment of a new teacher must not be made while there is available, on
unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
teacher fails to advise the school board within 30 days of the date of notification that a
position is available to that teacher who may return to employment and assume the duties
of the position to which appointed on a future date determined by the board;.
(g) (h) A teacher placed on unrequested leave of absence may engage in teaching
or any other occupation during the period of this leave;.
(h) (i) The unrequested leave of absence must not impair the continuing contract
rights of a teacher or result in a loss of credit for previous years of service;.
(i) (j) Consistent with paragraph (n) and subdivision 10, the unrequested leave of
absence of a teacher who is categorized as effective or better under subdivision 8, who
is placed on unrequested leave of absence, and who is not reinstated shall continue for a
period of five years, after which the right to reinstatement shall terminate terminates. The
teacher's right to reinstatement shall also terminate terminates if the teacher fails to file
with the board by April 1 of any each year a written statement requesting reinstatement;.
(k) Consistent with paragraph (n) and subdivision 10, the unrequested leave of
absence of a teacher who is categorized as ineffective or less under subdivision 8, who
is placed on unrequested leave of absence, and who is not reinstated continues for the
following school year only, after which the teacher's right to reinstatement terminates. The
teacher's right to reinstatement also terminates if the teacher fails to file with the board by
April 1 in that following school year a written statement requesting reinstatement.
(j) (l) The same provisions applicable to terminations of probationary or continuing
contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of
absence;.
(k) (m) Nothing in this subdivision shall be construed to impair the rights of teachers
placed on unrequested leave of absence to receive unemployment benefits if otherwise
eligible.
(n) Beginning in the 2016-2017 school year and later, and notwithstanding any law
to the contrary, a school board must place teachers on unrequested leave of absence based
on their subject matter licensure fields and most recent evaluation outcomes, from the
least to most effective category under subdivision 8 and from the least to greatest seniority
within each effectiveness category. A school board is not required to reassign a teacher
with more seniority to a different subject matter licensure field in order to accommodate
the seniority claims of a teacher who is similarly licensed and effective but with less
seniority. A school board may decide not to renew a probationary teacher's contract or
may place the probationary teacher on unrequested leave of absence as it sees fit. The
school board must publish in a readily accessible format the unrequested leave of absence
plan it develops and implements under this paragraph.
(o) For purposes of this subdivision, a teacher who holds only a provisional license
is a teacher who has received a waiver or variance to teach from the Minnesota Board of
Teaching.
(p) Notwithstanding section 13.43, subdivision 2, paragraph (a), clause (5), or
other law to the contrary, a teacher's effectiveness category and the underlying data on
the individual teacher generated under the teacher evaluation process in subdivision 8,
paragraph (b), used to determine a teacher's effectiveness category for purposes of this
subdivision are private data on individuals.
EFFECTIVE DATE.This section is effective the day following final enactment
except that paragraph (n) is effective for the 2016-2017 school year and later.

    Sec. 4. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
of the following grounds:
(1) immoral conduct, insubordination, or conviction of a felony;
(2) conduct unbecoming a teacher which requires the immediate removal of the
teacher from classroom or other duties;
(3) failure without justifiable cause to teach without first securing the written release
of the school board;
(4) gross inefficiency which the teacher has failed to correct after reasonable written
notice;
(5) willful neglect of duty; or
(6) continuing physical or mental disability subsequent to a 12 months leave of
absence and inability to qualify for reinstatement in accordance with subdivision 12.
For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
discriminatory practice described in section 363A.13.
Prior to discharging a teacher under this paragraph, the board must notify the
teacher in writing and state its ground for the proposed discharge in reasonable detail.
Within ten days after receipt of this notification the teacher may make a written request
for a hearing before the board and it shall be granted before final action is taken. The
board may, however, suspend a teacher with pay pending the conclusion of such the
hearing and determination of the issues raised in the hearing after charges have been
filed which constitute ground for discharge. If a teacher has been charged with a felony
and the underlying conduct that is the subject of the felony charge is a ground for a
proposed immediate discharge, the suspension pending the conclusion of the hearing and
determination of the issues may be without pay. If a hearing under this paragraph is held,
the board must reimburse the teacher for any salary or compensation withheld if the
final decision of the board or the arbitrator does not result in a penalty to or suspension,
termination, or discharge of the teacher.
(b) A board must discharge a continuing-contract teacher, effective immediately,
upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. Minnesota Statutes 2010, section 122A.40, subdivision 19, is amended to read:
    Subd. 19. Records relating to individual teacher; access; expungement. All
evaluations and files generated within a school district relating to each individual teacher,
including teacher evaluation data under subdivisions 8, 10, and 11, among other teacher
evaluations and files, must be available to each individual teacher upon written request.
Effective January 1, 1976, all evaluations and files, wherever generated, relating to each
individual teacher must be available to each individual teacher upon written request. The
teacher shall have the right to reproduce any of the contents of the files at the teacher's
expense and to submit for inclusion in the file written information in response to any
material contained therein.
A district may destroy the files as provided by law and must expunge from
the teacher's file any material found to be false or inaccurate through the grievance
procedure required pursuant to section 179A.20, subdivision 4. The grievance procedure
promulgated by the director of the bureau of mediation services, pursuant to section
179A.04, subdivision 3 , clause (h), applies to those principals and supervisory employees
not included in an appropriate unit as defined in section 179A.03. Expungement
proceedings must be commenced within the time period provided in the collective
bargaining agreement for the commencement of a grievance. If no time period is provided
in the bargaining agreement, the expungement proceedings must commence within 15
days after the teacher has knowledge of the inclusion in the teacher's file of the material
the teacher seeks to have expunged.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. Minnesota Statutes 2011 Supplement, section 122A.41, subdivision 6, is
amended to read:
    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
in paragraph (b), causes for the discharge or demotion of a teacher either during or after
the probationary period must be:
(1) immoral character, conduct unbecoming a teacher, or insubordination;
(2) failure without justifiable cause to teach without first securing the written release
of the school board having the care, management, or control of the school in which the
teacher is employed;
(3) inefficiency in teaching or in the management of a school, consistent with
subdivision 5, paragraph (b);
(4) affliction with active tuberculosis or other communicable disease must be
considered as cause for removal or suspension while the teacher is suffering from such
disability; or
(5) discontinuance of position or lack of pupils.
Beginning no later than the 2016-2017 school year, and notwithstanding any
contradictory provisions in this subdivision, the school board must discharge or demote
teachers under clause (5) based on their subject matter licensure fields and most recent
evaluation outcomes, from the least to most effective category under subdivision 5 and
from the least to greatest seniority within each effectiveness category. Notwithstanding
section 13.43, subdivision 2, paragraph (a), clause (5), or other law to the contrary,
a teacher's effectiveness category and the underlying data on the individual teacher
generated under the teacher evaluation process in subdivision 5, paragraph (b), used
to determine a teacher's effectiveness category for purposes of this subdivision are
private data on individuals. The school board must publish in a readily accessible format
any discharge and demotion plan it develops to implement clause (5). Nothing in this
subdivision permits a school board to use a teacher's remuneration as a basis for making
discharge or demotion decisions.
For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
discriminatory practice described in section 363A.13.
(b) A probationary or continuing-contract teacher must be discharged immediately
upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies to negotiated plans agreed to after that date.

    Sec. 7. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
    Subd. 14. Services terminated by discontinuance or lack of pupils; preference
given. (a) To the extent consistent with paragraph (c) and subdivision 6, paragraph (a),
clause (5), a teacher whose services are terminated on account of discontinuance of
position or lack of pupils must receive first consideration for other positions in the district
for which that teacher is qualified. In the event If it becomes is necessary to discontinue
one or more positions, in making such discontinuance, teachers must be discontinued in
any department in the inverse order in which they were employed, unless a board and the
exclusive representative of teachers in the district negotiate a plan providing otherwise.
(b) Notwithstanding the provisions of clause paragraph (a), and to the extent
consistent with paragraph (c) and subdivision 6, paragraph (a), a teacher is not entitled
to exercise any seniority when that exercise results in that teacher being retained by the
district in a field for which the teacher holds only a provisional license, as defined by the
Board of Teaching, unless that exercise of seniority results in the termination of services,
on account of discontinuance of position or lack of pupils, of another teacher who also
holds a provisional license in the same field. The provisions of this clause do not apply
to vocational education licenses.
(c) For purposes of discharging, demoting, or recalling a teacher whose services are
terminated under this subdivision, nothing in this subdivision requires a school board
to reassign a teacher with more seniority to a different subject matter licensure field in
order to accommodate the seniority claims of a teacher who is similarly licensed and
effective but with less seniority.
(d) Notwithstanding the provisions of clause paragraph (a), and to the extent
consistent with paragraph (c) and subdivision 6, paragraph (a), a teacher must not be
reinstated to a position in a field in which the teacher holds only a provisional license,
other than a vocational education license if required for the position, while another teacher
who holds a nonprovisional license in the same field is available for reinstatement.
(e) For purposes of this subdivision, a teacher who holds a provisional license is
a teacher who has received a waiver or variance to teach from the Minnesota Board of
Teaching.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2010, section 122A.41, subdivision 15, is amended to read:
    Subd. 15. Records relating to individual teacher; access; expungement. All
evaluations and files generated within a district relating to each individual teacher,
including teacher evaluation data under subdivisions 5, 6, and 14, among other teacher
evaluations and files, must be available to each individual teacher upon the teacher's
written request. Effective January 1, 1976, all evaluations and files, wherever generated,
relating to each individual teacher must be available to each individual teacher upon the
teacher's written request. The teacher has the right to reproduce any of the contents of the
files at the teacher's expense and to submit for inclusion in the file written information in
response to any material contained therein.
A district may destroy the files as provided by law and must expunge from
the teacher's file any material found to be false or substantially inaccurate through
the grievance procedure required pursuant to section 179A.20, subdivision 4. The
grievance procedure promulgated by the director of the Bureau of Mediation Services,
pursuant to section 179A.04, subdivision 3, clause (h), applies to those principals and
supervisory employees not included in an appropriate unit as defined in section 179A.03.
Expungement proceedings must be commenced within the time period provided in the
collective bargaining agreement for the commencement of a grievance. If no time period
is provided in the bargaining agreement, the expungement proceedings must commence
within 15 days after the teacher has knowledge of the inclusion in the teacher's file of the
material the teacher seeks to have expunged.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. Minnesota Statutes 2010, section 123A.75, subdivision 1, is amended to read:
    Subdivision 1. Teacher assignment. (a) As of the effective date of a consolidation
in which a district is divided or the dissolution of a district and its attachment to two or
more existing districts, each teacher employed by an affected district shall be assigned to
the newly created or enlarged district on the basis of a ratio of the pupils assigned to each
district according to the new district boundaries. The district receiving the greatest number
of pupils must be assigned the teacher with the greatest seniority, and the remaining
teachers must be alternately assigned to each district until the district receiving the fewest
pupils has received its ratio of teachers who will not be retiring before the effective date of
the consolidation or dissolution.
(b) Notwithstanding paragraph (a), the board and the exclusive representative of
teachers in each district involved in the consolidation or dissolution and attachment may
negotiate a plan for assigning teachers to each newly created or enlarged district.
(c) Notwithstanding other law to the contrary, the provisions of this section apply
only to the extent they are consistent with section 122A.40, subdivisions 8, 10, and 11.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
2, is amended to read:
    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

		$	43,203,000 45,573,000	.....	2012
		$	52,359,000 49,168,000	.....	2013

The 2012 appropriation includes $13,336,000 $12,642,000 for 2011 and $29,867,000
$32,931,000 for 2012.
The 2013 appropriation includes $19,910,000 $13,979,000 for 2012 and $32,449,000
$35,189,000 for 2013.

    Sec. 11. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
3, is amended to read:
    Subd. 3. Charter school start-up aid. For charter school start-up cost aid under
Minnesota Statutes, section 124D.11, subdivision 8:

		$	171,000 164,000	.....	2012
		$	34,000 19,000	.....	2013

The 2012 appropriation includes $119,000 for 2011 and $52,000 $45,000 for 2012.
The 2013 appropriation includes $34,000 $19,000 for 2012 and $0 for 2013.

    Sec. 12. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
4, is amended to read:
    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
124D.86 :

		$	59,599,000 65,027,000	.....	2012
		$	67,432,000 65,526,000	.....	2013

The 2012 appropriation includes $19,272,000 for 2011 and $40,327,000 $45,755,000
for 2012.
The 2013 appropriation includes $26,884,000 $19,422,000 for 2012 and $40,548,000
$46,104,000 for 2013.
The base for the final payment in fiscal year 2014 for fiscal year 2013 is $34,828,000
$27,794,000.

    Sec. 13. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
5, is amended to read:
    Subd. 5. Literacy incentive aid. For literacy incentive aid under Minnesota
Statutes, section 124D.98:

$

29,151,000 34,107,000

.....

2013

The 2013 appropriation includes $0 for 2012 and $29,151,000 $34,107,000 for 2013.

    Sec. 14. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
6, is amended to read:
    Subd. 6. Interdistrict desegregation or integration transportation grants. For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

		$	14,917,000 13,262,000	.....	2012
		$	16,612,000 13,966,000	.....	2013

    Sec. 15. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
7, is amended to read:
    Subd. 7. Success for the future. For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:

		$	1,924,000 2,139,000	.....	2012
		$	2,137,000	.....	2013

The 2012 appropriation includes $641,000 $638,000 for 2011 and $1,283,000
$1,501,000 for 2012.
The 2013 appropriation includes $854,000 $636,000 for 2012 and $1,283,000
$1,501,000 for 2013.

    Sec. 16. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
9, is amended to read:
    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
Statutes, section 124D.83:

		$	1,883,000 1,900,000	.....	2012
		$	2,206,000 1,980,000	.....	2013

The 2012 appropriation includes $600,000 for 2011 and $1,283,000 $1,300,000
for 2012.
The 2013 appropriation includes $855,000 $551,000 for 2012 and $1,351,000
$1,429,000 for 2013.

    Sec. 17. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 3

SPECIAL EDUCATION

    Section 1. Laws 2011, First Special Session chapter 11, article 3, section 11,
subdivision 2, is amended to read:
    Subd. 2. Special education; regular. For special education aid under Minnesota
Statutes, section 125A.75:

		$	732,658,000 816,648,000	.....	2012
		$	855,605,000 859,067,000	.....	2013

The 2012 appropriation includes $235,975,000 for 2011 and $496,683,000
$580,673,000 for 2012.
The 2013 appropriation includes $331,121,000 $246,496,000 for 2012 and
$524,484,000 $612,571,000 for 2013.

    Sec. 2. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 3,
is amended to read:
    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

		$	1,648,000 1,508,000	.....	2012
		$	1,745,000 1,593,000	.....	2013

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

    Sec. 3. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 4,
is amended to read:
    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

		$	322,000 333,000	.....	2012
		$	358,000 321,000	.....	2013

The 2012 appropriation includes $107,000 for 2011 and $215,000 $226,000 for 2012.
The 2013 appropriation includes $142,000 $95,000 for 2012 and $216,000 $226,000
for 2013.

    Sec. 4. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 5,
is amended to read:
    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:

		$	103,978,000 112,522,000	.....	2012
		$	115,304,000 115,411,000	.....	2013

The 2012 appropriation includes $53,449,000 for 2011 and $50,529,000 $59,073,000
for 2012.
The 2013 appropriation includes $63,273,000 $54,642,000 for 2012 and $52,031,000
$60,769,000 for 2013.

    Sec. 5. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 6,
is amended to read:
    Subd. 6. Court-placed special education revenue. For reimbursing serving
school districts for unreimbursed eligible expenditures attributable to children placed in
the serving school district by court action under Minnesota Statutes, section 125A.79,
subdivision 4 :

		$	80,000 52,000	.....	2012
		$	82,000 53,000	.....	2013

    Sec. 6. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 4

FACILITIES AND TECHNOLOGY

    Section 1. Laws 2011, First Special Session chapter 11, article 4, section 10,
subdivision 2, is amended to read:
    Subd. 2. Health and safety revenue. For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

		$	111,000 103,000	.....	2012
		$	114,000 164,000	.....	2013

The 2012 appropriation includes $39,000 for 2011 and $72,000 $64,000 for 2012.
The 2013 appropriation includes $48,000 $27,000 for 2012 and $66,000 $137,000
for 2013.

    Sec. 2. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
3, is amended to read:
    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

		$	11,022,000 12,453,000	.....	2012
		$	19,484,000 16,554,000	.....	2013

The 2012 appropriation includes $2,604,000 for 2011 and $8,418,000 $9,849,000
for 2012.
The 2013 appropriation includes $5,611,000 $4,180,000 for 2012 and $13,873,000
$12,374,000 for 2013.

    Sec. 3. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
4, is amended to read:
    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:

		$	17,359,000 19,325,000	.....	2012
		$	19,287,000	.....	2013

The 2012 appropriation includes $5,786,000 $5,785,000 for 2011 and $11,573,000
$13,540,000 for 2012.
The 2013 appropriation includes $7,714,000 $5,747,000 for 2012 and $11,573,000
$13,540,000 for 2013.

    Sec. 4. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
6, is amended to read:
    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

		$	2,234,000 2,483,000	.....	2012
		$	2,972,000 3,193,000	.....	2013

The 2012 appropriation includes $676,000 for 2011 and $1,558,000 $1,807,000
for 2012.
The 2013 appropriation includes $1,038,000 $766,000 for 2012 and $1,934,000
$2,427,000 for 2013.

    Sec. 5. LEASE LEVY; ADMINISTRATIVE SPACE; FARIBAULT.
Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
School District No. 656, Faribault, may lease administrative space under Minnesota
Statutes, section 126C.40, subdivision 1, if the district can demonstrate to the satisfaction
of the commissioner of education that the administrative space is less expensive than
instructional space that the district would otherwise lease. The commissioner must
deny this levy authority unless the district passes a resolution stating its intent to lease
instructional space under Minnesota Statutes, section 126C.40, subdivision 1, if the
commissioner does not grant authority under this section. The resolution must also certify
that a lease of administrative space under this section is less expensive than the district's
proposed instructional lease. Levy authority under this section shall not exceed the total
levy authority under Minnesota Statutes, section 126C.40, subdivision 1, paragraph (e).
EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

    Sec. 6. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 5

NUTRITION AND ACCOUNTING

    Section 1. Minnesota Statutes 2011 Supplement, section 124D.11, subdivision 9, is
amended to read:
    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
127A.45, subdivision 3 , if the current year aid payment percentage under section
127A.45, subdivision 2 , paragraph (d), is 90 or greater, aid payments for the current
fiscal year to a charter school shall be of an equal amount on each of the 24 payment
dates. Notwithstanding section 127A.45, subdivision 3, if the current year aid payment
percentage under section 127A.45, subdivision 2, paragraph (d), is less than 90, aid
payments for the current fiscal year to a charter school shall be:
(1) of an equal amount on each of the 16 payment dates in July through February if
the aid payment percentage is 60 or less;
(2) of an equal amount on each of the 19 payment dates in July through April if the
aid percentage is between 60 and 70; and
(3) of an equal amount on each of the 21 payment dates in July through May if
the aid percentage is between 70 and 90.
(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
operation on or prior to June 30 of a school year, for the payment periods occurring after
the school ceases serving students, the commissioner shall withhold the estimated state aid
owed the school. The charter school board of directors and authorizer must submit to the
commissioner a closure plan under chapter 308A or 317A, and financial information about
the school's liabilities and assets. After receiving the closure plan, financial information,
an audit of pupil counts, documentation of lease expenditures, and monitoring of special
education expenditures, the commissioner may release cash withheld and may continue
regular payments up to the current year payment percentages if further amounts are
owed. If, based on audits and monitoring, the school received state aid in excess of the
amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
overpayment. For a charter school ceasing operations prior to, or at the end of, a school
year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
be made after receiving the closure plan, audit of pupil counts, monitoring of special
education expenditures, documentation of lease expenditures, and school submission of
Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
final year of operation. Final payment may be made upon receipt of audited financial
statements under section 123B.77, subdivision 3.
(c) If a charter school fails to comply with the commissioner's directive to return,
for cause, federal or state funds administered by the department, the commissioner may
withhold an amount of state aid sufficient to satisfy the directive.
(d) If, within the timeline under section 471.425, a charter school fails to pay the state
of Minnesota, a school district, intermediate school district, or service cooperative after
receiving an undisputed invoice for goods and services, the commissioner may withhold
an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
aid to the interested state agency, school district, intermediate school district, or service
cooperative. An interested state agency, school district, intermediate school district, or
education cooperative shall notify the commissioner when a charter school fails to pay an
undisputed invoice within 75 business days of when it received the original invoice.
(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
of student attendance for that school year.
(f) In order to receive state aid payments under this subdivision, a charter school in
its first three years of operation must submit a school calendar in the form and manner
requested by the department and a quarterly report to the Department of Education. The
report must list each student by grade, show the student's start and end dates, if any,
with the charter school, and for any student participating in a learning year program,
the report must list the hours and times of learning year activities. The report must be
submitted not more than two weeks after the end of the calendar quarter to the department.
The department must develop a Web-based reporting form for charter schools to use
when submitting enrollment reports. A charter school in its fourth and subsequent year of
operation must submit a school calendar and enrollment information to the department in
the form and manner requested by the department.
(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
school and satisfaction of creditors, cash and investment balances remaining shall be
returned to the state.
(h) A charter school must have a valid, signed contract under section 124D.10,
subdivision 6, on file at the Department of Education at least 15 days prior to the date of
first payment of state aid for the fiscal year.
(i) State aid entitlements shall be computed for a charter school only for the
portion of a school year for which it has a valid, signed contract under section 124D.10,
subdivision 6.
EFFECTIVE DATE.This section is effective for fiscal year 2013 and later.

    Sec. 2. Minnesota Statutes 2010, section 124D.111, subdivision 3, is amended to read:
    Subd. 3. School food service fund. (a) The expenses described in this subdivision
must be recorded as provided in this subdivision.
(b) In each district, the expenses for a school food service program for pupils must
be attributed to a school food service fund. Under a food service program, the school
food service may prepare or serve milk, meals, or snacks in connection with school or
community service activities.
(c) Revenues and expenditures for food service activities must be recorded in the
food service fund. The costs of processing applications, accounting for meals, preparing
and serving food, providing kitchen custodial services, and other expenses involving the
preparing of meals or the kitchen section of the lunchroom may be charged to the food
service fund or to the general fund of the district. The costs of lunchroom supervision,
lunchroom custodial services, lunchroom utilities, and other administrative costs of the
food service program must be charged to the general fund.
That portion of superintendent and fiscal manager costs that can be documented as
attributable to the food service program may be charged to the food service fund provided
that the school district does not employ or contract with a food service director or other
individual who manages the food service program, or food service management company.
If the cost of the superintendent or fiscal manager is charged to the food service fund,
the charge must be at a wage rate not to exceed the statewide average for food service
directors as determined by the department.
(d) Capital expenditures for the purchase of food service equipment must be made
from the general fund and not the food service fund, unless two conditions apply:
(1) the unreserved balance in the food service fund at the end of the last fiscal year is
greater than the cost of the equipment to be purchased; and.
(2) the department has approved the purchase of the equipment.
(e) If the two conditions condition set out in paragraph (d) apply applies, the
equipment may be purchased from the food service fund.
(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
is not eliminated by revenues from food service operations in the next fiscal year, then the
deficit must be eliminated by a permanent fund transfer from the general fund at the end of
that second fiscal year. However, if a district contracts with a food service management
company during the period in which the deficit has accrued, the deficit must be eliminated
by a payment from the food service management company.
(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
fund for up to three years without making the permanent transfer if the district submits
to the commissioner by January 1 of the second fiscal year a plan for eliminating that
deficit at the end of the third fiscal year.
(h) If a surplus in the food service fund exists at the end of a fiscal year for three
successive years, a district may recode for that fiscal year the costs of lunchroom
supervision, lunchroom custodial services, lunchroom utilities, and other administrative
costs of the food service program charged to the general fund according to paragraph (c)
and charge those costs to the food service fund in a total amount not to exceed the amount
of surplus in the food service fund.
EFFECTIVE DATE.This section is effective for food service equipment purchases
made on or after July 1, 2012.

    Sec. 3. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, is
amended to read:
    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
treasurers pursuant to section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county auditor pursuant to section
127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
pursuant to chapter 298.
(b) "Cumulative amount guaranteed" means the product of
(1) the cumulative disbursement percentage shown in subdivision 3; times
(2) the sum of
(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus
(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
(iii) the other district receipts.
(c) "Payment date" means the date on which state payments to districts are made
by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
or a weekday which is a legal holiday, the payment shall be made on the immediately
preceding business day. The commissioner may make payments on dates other than
those listed in subdivision 3, but only for portions of payments from any preceding
payment dates which could not be processed by the electronic funds transfer method due
to documented extenuating circumstances.
(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
fiscal year 2011, and 60 70.2 in fiscal years year 2012 and later.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
2, is amended to read:
    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

		$	12,626,000 12,285,000	.....	2012
		$	12,878,000 12,524,000	.....	2013

    Sec. 5. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
3, is amended to read:
    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:

		$	4,759,000 5,247,000	.....	2012
		$	4,875,000 5,560,000	.....	2013

    Sec. 6. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
4, is amended to read:
    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

		$	1,084,000 1,025,000	.....	2012
		$	1,105,000 1,035,000	.....	2013

    Sec. 7. BALANCES CANCELED TO GENERAL FUND.
$430,094,000 of the unobligated balance in the budget reserve account created in
Minnesota Statutes, section 16A.152, subdivision 1a, is canceled to the general fund
in fiscal year 2012.

    Sec. 8. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 6

LIBRARIES

    Section 1. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
2, is amended to read:
    Subd. 2. Basic system support. For basic system support grants under Minnesota
Statutes, section 134.355:

		$	12,213,000 13,598,000	.....	2012
		$	13,570,000	.....	2013

The 2012 appropriation includes $4,071,000 for 2011 and $8,142,000 $9,527,000
for 2012.
The 2013 appropriation includes $5,428,000 $4,043,000 for 2012 and $8,142,000
$9,527,000 for 2013.

    Sec. 2. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 3,
is amended to read:
    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

		$	1,170,000 1,303,000	.....	2012
		$	1,300,000	.....	2013

The 2012 appropriation includes $390,000 for 2011 and $780,000 $913,000 for 2012.
The 2013 appropriation includes $520,000 $387,000 for 2012 and $780,000
$913,000 for 2013.

    Sec. 3. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 5,
is amended to read:
    Subd. 5. Regional library telecommunications aid. For regional library
telecommunications aid under Minnesota Statutes, section 134.355:

		$	2,070,000 2,305,000	.....	2012
		$	2,300,000	.....	2013

The 2012 appropriation includes $690,000 for 2011 and $1,380,000 $1,615,000
for 2012.
The 2013 appropriation includes $920,000 $685,000 for 2012 and $1,380,000
$1,615,000 for 2013.

    Sec. 4. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 7

EARLY CHILDHOOD EDUCATION

    Section 1. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
2, is amended to read:
    Subd. 2. School readiness. For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

		$	9,085,000 10,039,000	.....	2012
		$	10,095,000	.....	2013

The 2012 appropriation includes $3,028,000 $2,952,000 for 2011 and $6,057,000
$7,087,000 for 2012.
The 2013 appropriation includes $4,038,000 $3,008,000 for 2012 and $6,057,000
$7,087,000 for 2013.

    Sec. 2. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 3,
is amended to read:
    Subd. 3. Early childhood family education aid. For early childhood family
education aid under Minnesota Statutes, section 124D.135:

		$	20,191,000 22,435,000	.....	2012
		$	22,977,000 22,332,000	.....	2013

The 2012 appropriation includes $6,542,000 for 2011 and $13,649,000 $15,893,000
for 2012.
The 2013 appropriation includes $9,099,000 $6,746,000 for 2012 and $13,878,000
$15,586,000 for 2013.

    Sec. 3. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 4,
is amended to read:
    Subd. 4. Health and developmental screening aid. For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

		$	3,211,000 3,570,000	.....	2012
		$	3,550,000 3,541,000	.....	2013

The 2012 appropriation includes $1,066,000 for 2011 and $2,145,000 $2,504,000
for 2012.
The 2013 appropriation includes $1,429,000 $1,062,000 for 2012 and $2,121,000
$2,479,000 for 2013.

    Sec. 4. REPEALER.
Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; and 124D.16,
subdivisions 6 and 7, are repealed.

    Sec. 5. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.

ARTICLE 8

PREVENTION

    Section 1. Minnesota Statutes 2010, section 124D.518, is amended by adding a
subdivision to read:
    Subd. 4a. Service disruption. "Service disruption" means the loss of student
contact time due to a natural disaster including but not limited to floods, tornadoes, and
fires, or the loss of student contact hours caused by a party other than the adult basic
education program or consortium including, but not limited to, building relocations and
transportation disruptions. A service disruption occurs only if:
(1) the loss of contact hours is sufficient to cause the consortium to lose revenue
equal to at least ten percent of the aid generated under section 124D.531, subdivision 3,
clause (2); or
(2) the loss of contact hours is sufficient to cause the program to lose revenue equal to
at least 15 percent of the aid generated under section 124D.531, subdivision 3, clause (2).
EFFECTIVE DATE.This section is effective for aid for fiscal year 2013 and later.

    Sec. 2. Minnesota Statutes 2010, section 124D.518, subdivision 3, is amended to read:
    Subd. 3. Contact hours. (a) "Contact hours" means the number of hours during
which a student was engaged in learning activities provided by an approved adult
education program. Contact hours excludes homework but includes interactive distance
learning. The commissioner may only reallocate contact hours among programs to adjust
for changes in program membership between the first prior program year and the current
program year based on the actual contact hours reported for the first prior program year.
The commissioner may adjust a program's or consortium's contact hours due to a service
disruption according to the process established in section 124D.531, subdivision 10.
(b) For revenue beginning in fiscal year 2002, contact hours for a provider of adult
basic education services funded in fiscal year 2000, but not eligible for basic population
aid in fiscal year 2001, is computed by multiplying the provider's contact hours by 1.03.
(c) For aid in fiscal year 2001, contact hours in fiscal year 2000 equals the number
of full-time equivalent learners times the contact hours. A level one full-time equivalent
learner is equal to 240 contact hours and a level two full-time learner is equal to 408
contact hours.
EFFECTIVE DATE.This section is effective for aid for fiscal year 2013 and later.

    Sec. 3. Minnesota Statutes 2010, section 124D.531, is amended by adding a
subdivision to read:
    Subd. 10. Contact hours in cases of disruption of services. An adult basic
education program or consortium that has been subject to a service disruption may apply
to the commissioner in the form and manner established by the commissioner for an
adjusted number of contact hours. The program or consortium must demonstrate to the
commissioner's satisfaction that the loss in contact hours due to the service disruption was
outside of the control of the adult basic education program or its consortium and that the
program or consortium took reasonable actions to avoid the loss of contact hours. If the
commissioner approves the program's or consortium's request, the commissioner may
adjust the number of contact hours of the program and, if applicable, of the consortium,
but in no case may the adjusted contact hours yield an aid amount for a consortium
under subdivision 3, clause (2), greater than the most recent two-year average aid under
that clause.
EFFECTIVE DATE.This section is effective for aid for fiscal year 2013 and later.

    Sec. 4. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 2,
is amended to read:
    Subd. 2. Community education aid. For community education aid under
Minnesota Statutes, section 124D.20:

		$	429,000 470,000	.....	2012
		$	665,000 771,000	.....	2013

The 2012 appropriation includes $134,000 for 2011 and $295,000 $336,000 for 2012.
The 2013 appropriation includes $196,000 $142,000 for 2012 and $469,000
$629,000 for 2013.

    Sec. 5. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 3,
is amended to read:
    Subd. 3. Adults with disabilities program aid. For adults with disabilities
programs under Minnesota Statutes, section 124D.56:

		$	639,000 696,000	.....	2012
		$	710,000	.....	2013

The 2012 appropriation includes $213,000 $197,000 for 2011 and $426,000
$499,000 for 2012.
The 2013 appropriation includes $284,000 $211,000 for 2012 and $426,000
$499,000 for 2013.

    Sec. 6. Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision 2,
is amended to read:
    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
Statutes, section 124D.531:

		$	40,545,000 45,202,000	.....	2012
		$	45,842,000 45,951,000	.....	2013

The 2012 appropriation includes $13,365,000 $13,364,000 for 2011 and $27,180,000
$31,838,000 for 2012.
The 2013 appropriation includes $18,119,000 $13,514,000 for 2012 and $27,723,000
$32,437,000 for 2013.

    Sec. 7. REPEALER.
Minnesota Statutes 2010, section 124D.20, subdivisions 11 and 12, are repealed.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
and later.

    Sec. 8. EFFECTIVE DATE.
Unless otherwise specified, this article is effective the day following final enactment.