Bill Text: MN SF978 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Omnibus education policy bill

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Engrossed - Dead) 2013-04-29 - Senate file first reading, referred to Education Finance [SF978 Detail]

Download: Minnesota-2013-SF978-Engrossed.html

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A bill for an act

relating to education; modifying policies for early childhood through grade
12 education; including general education student accountability, education
excellence, charter schools, special programs, technology, libraries, and early
childhood education, self-sufficiency, and lifelong learning;amending Minnesota
Statutes 2012, sections 15.059, subdivision 5b; 120A.41; 120B.021, subdivision
1; 120B.023; 120B.024; 120B.15; 120B.31, subdivision 1; 121A.39; 122A.09,
subdivision 4; 122A.18, subdivision 2; 122A.23, subdivision 2; 122A.28,
subdivision 1; 123B.88, subdivision 22; 123B.92, subdivision 1; 124D.095,
subdivision 10; 124D.10; 124D.122; 124D.52, by adding a subdivision; 124D.79,
subdivision 1, by adding a subdivision; 125A.0941; 125A.0942; 125A.27,
subdivisions 8, 11, 14; 125A.28; 125A.29; 125A.30; 125A.32; 125A.33;
125A.35, subdivision 1; 125A.36; 125A.43; 126C.10, subdivision 14; 126C.15,
subdivision 2; 134.32; 134.34; 134.351, subdivisions 3, 7; 134.353; 134.354;
134.355, subdivisions 1, 2, 3, 4, 5, 6; 134.36; 260A.02, subdivision 3; 260A.03;
260A.05, subdivision 1; 260A.07, subdivision 1; Laws 2011, First Special
Session chapter 11, article 7, section 2, subdivision 8, as amended; proposing
coding for new law in Minnesota Statutes, chapters 120A; 120B; 124D; repealing
Minnesota Statutes 2012, section 125A.35, subdivisions 4, 5; Minnesota Rules,
parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525; 3501.0530;
3501.0535; 3501.0540; 3501.0545; 3501.0550.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

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

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

    Sec. 3. Minnesota Statutes 2012, section 123B.92, subdivision 1, is amended to read:
    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
terms defined in this subdivision have the meanings given to them.
    (a) "Actual expenditure per pupil transported in the regular and excess transportation
categories" means the quotient obtained by dividing:
    (1) the sum of:
    (i) all expenditures for transportation in the regular category, as defined in paragraph
(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
    (ii) an amount equal to one year's depreciation on the district's school bus fleet
and mobile units computed on a straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades 1 to 12 for all students in
the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
    (iii) an amount equal to one year's depreciation on the district's type III vehicles, as
defined in section 169.011, subdivision 71, which must be used a majority of the time for
pupil transportation purposes, computed on a straight line basis at the rate of 20 percent
per year of the cost of the type three school buses by:
    (2) the number of pupils eligible for transportation in the regular category, as defined
in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
    (b) "Transportation category" means a category of transportation service provided to
pupils as follows:
    (1) Regular transportation is:
    (i) transportation to and from school during the regular school year for resident
elementary pupils residing one mile or more from the public or nonpublic school they
attend, and resident secondary pupils residing two miles or more from the public
or nonpublic school they attend, excluding desegregation transportation and noon
kindergarten transportation; but with respect to transportation of pupils to and from
nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
    (ii) transportation of resident pupils to and from language immersion programs;
    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
the pupil's home and the child care provider and between the provider and the school, if
the home and provider are within the attendance area of the school;
    (iv) transportation to and from or board and lodging in another district, of resident
pupils of a district without a secondary school; and
    (v) transportation to and from school during the regular school year required under
subdivision 3 for nonresident elementary pupils when the distance from the attendance
area border to the public school is one mile or more, and for nonresident secondary pupils
when the distance from the attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon kindergarten transportation.
    For the purposes of this paragraph, a district may designate a licensed day care facility,
school day care facility, respite care facility, the residence of a relative, or the residence
of a person or other location chosen by the pupil's parent or guardian, or an after-school
program for children operated by a political subdivision of the state, as the home of a pupil
for part or all of the day, if requested by the pupil's parent or guardian, and if that facility,
residence, or program is within the attendance area of the school the pupil attends.
    (2) Excess transportation is:
    (i) transportation to and from school during the regular school year for resident
secondary pupils residing at least one mile but less than two miles from the public or
nonpublic school they attend, and transportation to and from school for resident pupils
residing less than one mile from school who are transported because of full-service school
zones, extraordinary traffic, drug, or crime hazards; and
    (ii) transportation to and from school during the regular school year required under
subdivision 3 for nonresident secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two miles from the public school
they attend, and for nonresident pupils when the distance from the attendance area border
to the school is less than one mile from the school and who are transported because of
full-service school zones, extraordinary traffic, drug, or crime hazards.
    (3) Desegregation transportation is transportation within and outside of the district
during the regular school year of pupils to and from schools located outside their normal
attendance areas under a plan for desegregation mandated by the commissioner or under
court order.
    (4) "Transportation services for pupils with disabilities" is:
    (i) transportation of pupils with disabilities who cannot be transported on a regular
school bus between home or a respite care facility and school;
    (ii) necessary transportation of pupils with disabilities from home or from school to
other buildings, including centers such as developmental achievement centers, hospitals,
and treatment centers where special instruction or services required by sections 125A.03
to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
where services are provided;
    (iii) necessary transportation for resident pupils with disabilities required by sections
125A.12 , and 125A.26 to 125A.48;
    (iv) board and lodging for pupils with disabilities in a district maintaining special
classes;
    (v) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
with disabilities who are provided special instruction and services on a shared-time basis
or if resident pupils are not transported, the costs of necessary travel between public
and private schools or neutral instructional sites by essential personnel employed by the
district's program for children with a disability;
    (vi) transportation for resident pupils with disabilities to and from board and lodging
facilities when the pupil is boarded and lodged for educational purposes;
(vii) transportation of pupils for a curricular field trip activity on a school bus
equipped with a power lift when the power lift is required by a student's disability or
section 504 plan; and
(viii) services described in clauses (i) to (vii), when provided for pupils with
disabilities in conjunction with a summer instructional program that relates to the
pupil's individualized education program or in conjunction with a learning year program
established under section 124D.128.
    For purposes of computing special education initial aid under section 125A.76,
subdivision 2 , the cost of providing transportation for children with disabilities includes
(A) the additional cost of transporting a homeless student from a temporary nonshelter
home in another district to the school of origin, or a formerly homeless student from a
permanent home in another district to the school of origin but only through the end of
the academic year; and (B) depreciation on district-owned school buses purchased after
July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated
according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the
disabled transportation category must be excluded in calculating the actual expenditure
per pupil transported in the regular and excess transportation categories according to
paragraph (a). For purposes of subitem (A), a school district may transport a child who
does not have a school of origin to the same school attended by that child's sibling, if
the siblings are homeless.
    (5) "Nonpublic nonregular transportation" is:
    (i) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under clause (4);
    (ii) transportation within district boundaries between a nonpublic school and a
public school or a neutral site for nonpublic school pupils who are provided pupil support
services pursuant to section 123B.44; and
    (iii) late transportation home from school or between schools within a district for
nonpublic school pupils involved in after-school activities.
    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
educational programs and services, including diagnostic testing, guidance and counseling
services, and health services. A mobile unit located off nonpublic school premises is a
neutral site as defined in section 123B.41, subdivision 13.
EFFECTIVE DATE.This section is effective July 1, 2013.

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

    Sec. 5. Minnesota Statutes 2012, section 126C.15, subdivision 2, is amended to read:
    Subd. 2. Building allocation. (a) A district or cooperative must allocate its
compensatory revenue to each school building in the district or cooperative where
the children who have generated the revenue are served unless the school district or
cooperative has received permission under Laws 2005, First Special Session chapter 5,
article 1, section 50, to allocate compensatory revenue according to student performance
measures developed by the school board.
    (b) Notwithstanding paragraph (a), a district or cooperative may allocate up to five
15 percent of the amount of compensatory revenue that the district receives to school
sites according to a plan adopted by the school board, and a district or cooperative may
allocate up to an additional five percent of its compensatory revenue for activities under
subdivision 1, clause (10), according to a plan adopted by the school board. The money
reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but
may be spent on students in any grade, including students attending school readiness or
other prekindergarten programs.
    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.
    (d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unit.
    (e) A district or cooperative with school building openings, school building
closings, changes in attendance area boundaries, or other changes in programs or student
demographics between the prior year and the current year may reallocate compensatory
revenue among sites to reflect these changes. A district or cooperative must report to the
department any adjustments it makes according to this paragraph and the department must
use the adjusted compensatory revenue allocations in preparing the report required under
section 123B.76, subdivision 3, paragraph (c).
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
and later.

ARTICLE 2

STUDENT ACCOUNTABILITY

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

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

    Sec. 3. Minnesota Statutes 2012, section 120B.023, is amended to read:
120B.023 BENCHMARKS.
    Subdivision 1. Benchmarks implement, supplement statewide academic
standards. (a) The commissioner must supplement required state academic standards with
grade-level benchmarks. High school benchmarks may cover more than one grade. The
benchmarks must implement statewide academic standards by specifying the academic
knowledge and skills that Schools must offer and students must achieve all benchmarks for
an academic standard to satisfactorily complete a that state standard. The commissioner
must publish benchmarks to inform and guide parents, teachers, school districts, and other
interested persons and to use in developing tests consistent with the benchmarks.
(b) The commissioner shall publish benchmarks in the State Register to inform and
guide parents, teachers, school districts, and other interested persons and transmit the
benchmarks in any other manner that makes them accessible to the general public. The
commissioner must use benchmarks in developing tests under section 120B.30. The
commissioner may charge a reasonable fee for publications.
(c) Once established, the commissioner may change the benchmarks only with
specific legislative authorization and after completing a review under subdivision 2.
(d) The commissioner must develop and implement a system for reviewing each
of the required academic standards and related benchmarks and elective standards on a
periodic cycle, consistent with subdivision 2.
(e) (d) The benchmarks are not subject to chapter 14 and section 14.386 does not
apply.
    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness
and advanced work in the particular subject area. The commissioner must include the
contributions of Minnesota American Indian tribes and communities as they relate to the
academic standards during the review and revision of the required academic standards.
(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:
(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and
(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.
    (b) The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 are aligned with the state academic
standards in mathematics, consistent with section 120B.30, subdivision 1, paragraph
(b). The commissioner must implement a review of the academic standards and related
benchmarks in mathematics beginning in the 2015-2016 school year.
(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2010-2011
school year. The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.
(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the 2011-2012
school year. Under the revised standards, students scheduled to graduate in the 2014-2015
school year or later must satisfactorily complete a chemistry or physics credit or a career
and technical education credit that meets standards underlying the chemistry, physics,
or biology credit or a combination of those standards approved by the district. The
commissioner must implement a review of the academic standards and related benchmarks
in science beginning in the 2017-2018 school year.
(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. The commissioner must implement a review of the academic
standards and related benchmarks in language arts beginning in the 2018-2019 school year.
(f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in the
2013-2014 school year. The commissioner must implement a review of the academic
standards and related benchmarks in social studies beginning in the 2019-2020 school year.
(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, world languages, and career
and technical education to require students to complete the revised standards beginning
in a school year determined by the school district or charter school. School districts and
charter schools must formally establish a periodic review cycle for the academic standards
and related benchmarks in health, world languages, and career and technical education.

    Sec. 4. Minnesota Statutes 2012, section 120B.024, is amended to read:
120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
    Subdivision 1. Graduation requirements. (a) Students beginning 9th grade in the
2011-2012 school year and later must successfully complete the following high school
level course credits for graduation:
    (1) four credits of language arts sufficient to satisfy all of the academic standards
in English language arts;
    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
and probability including an algebra II credit or its equivalent, sufficient to satisfy all of
the academic standard standards in mathematics;
(3) an algebra I credit by the end of 8th grade sufficient to satisfy all of the 8th
grade standards in mathematics;
    (3) (4) three credits of science, including at least: (i) one credit in of biology; and
(ii) one chemistry or physics credit or a career and technical education credit that meets
standards underlying the chemistry, physics, or biology credit or a combination of those
standards approved by the district, but meeting biology standards under this item does not
meet the biology requirement under item (i), one credit of chemistry or physics, and one
elective credit of science. The combination of credits under this clause must be sufficient
to satisfy (i) all of the academic standards in either chemistry or physics and (ii) all other
academic standards in science;
    (4) (5) three and one-half credits of social studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics or
three credits of social studies encompassing at least United States history, geography,
government and citizenship, and world history, and one-half credit of economics taught in
a school's social studies, agriculture education, or business department sufficient to satisfy
all of the academic standards in social studies;
    (5) (6) one credit in of the arts sufficient to satisfy all of the state or local academic
standards in the arts; and
    (6) (7) a minimum of seven elective course credits.
    A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter, as determined by the
local school district.
    Subd. 2. Credit equivalencies. (a) A one-half credit of economics taught in a
school's agriculture education or business department may fulfill a one-half credit in
social studies under subdivision 1, clause (5), if the credit is sufficient to satisfy all of the
academic standards in economics.
    (b) An agriculture science course or career and technical education credit may fulfill
a the elective science credit requirement other than the specified science credit in biology
under paragraph (a), clause (3). subdivision 1, clause (4), if the course meets academic
standards in science as approved by the district. An agriculture science or career and
technical education credit may fulfill the credit in chemistry or physics required under
subdivision 1, clause (4), if (1) the credit meets a combination of the chemistry, physics,
and biology academic standards as approved by the district and (2) the student satisfies
either all of the chemistry academic standards or all of the physics academic standards
prior to graduation. An agriculture science or career and technical education credit may
not fulfill the biology credit required under subdivision 1, clause (4).
    (c) A career and technical education course credit may fulfill a mathematics or arts
credit requirement or a science credit requirement other than the specified science credit in
biology under paragraph (a) subdivision 1, clause (2), (3), or (5) (6).
(d) An agriculture education teacher is not required to meet the requirements of
Minnesota Rules, part 3505.1150, subpart 1, item B, to meet the credit equivalency
requirements of paragraph (b) above.
EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
students entering 9th grade in the 2013-2014 school year and later.

    Sec. 5. Minnesota Statutes 2012, section 120B.15, is amended to read:
120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
    (a) School districts may identify students, locally develop programs addressing
instructional and affective needs, provide staff development, and evaluate programs to
provide gifted and talented students with challenging and appropriate educational programs.
    (b) School districts may must adopt guidelines for assessing and identifying students
for participation in gifted and talented programs. The guidelines should include the use of:
    (1) multiple and objective criteria; and
    (2) assessments and procedures that are valid and reliable, fair, and based on current
theory and research. Assessments and procedures should be sensitive to underrepresented
groups, including, but not limited to, low-income, minority, twice-exceptional, and
English learners.
    (c) School districts must adopt procedures for the academic acceleration of gifted
and talented students. These procedures must include how the district will:
    (1) assess a student's readiness and motivation for acceleration; and
    (2) match the level, complexity, and pace of the curriculum to a student to achieve
the best type of academic acceleration for that student.
(d) School districts must adopt procedures for early admission to kindergarten
or first grade of gifted and talented learners. The procedures must be sensitive to
underrepresented groups and must address how the district or charter school will:
(1) assess a child's readiness and motivation for accelerations;
(2) assess a child's cognitive abilities, achievement, and performance; and
(3) monitor the child's adjustment postacceleration.
The school district shall admit a gifted and talented child to kindergarten or first
grade who fails to meet the age requirement under section 120A.20, subdivision 1,
paragraph (b), provided the child completes the procedures and meets the criteria for early
entrance adopted by the school board under this subdivision.

    Sec. 6. Minnesota Statutes 2012, section 120B.31, subdivision 1, is amended to read:
    Subdivision 1. Educational accountability and public reporting. Consistent
with the direction to adopt statewide academic standards under section 120B.02, the
department, in consultation with education and other system stakeholders, must establish a
coordinated and comprehensive system of educational accountability and public reporting
that promotes greater academic achievement, preparation for higher academic education,
preparation for the world of work, citizenship under sections 120B.021, subdivision 1,
clause (4), and 120B.024, paragraph (a), clause (4), and the arts.

    Sec. 7. REVISOR'S INSTRUCTION.
The revisor of statutes shall renumber Minnesota Statutes, section 120B.023,
subdivision 2, as Minnesota Statutes, section 120B.021, subdivision 4. The revisor shall
make necessary cross-reference changes consistent with the renumbering.

    Sec. 8. REPEALER.
Minnesota Rules, parts 3501.0505; 3501.0510; 3501.0515; 3501.0520; 3501.0525;
3501.0530; 3501.0535; 3501.0540; 3501.0545; and 3501.0550, are repealed, effective
for the 2014-2015 school year and later.

ARTICLE 3

EDUCATION EXCELLENCE

    Section 1. [120A.37] CLASSROOM PLACEMENT; TEACHER RATING.
(a) Beginning in the 2016-2017 school year, consistent with the teacher evaluations
under sections 122A.40, subdivision 8, and 122A.41, subdivision 5, a school administrator
must not place a student in kindergarten through grade 4 for consecutive school years in
the classroom of a teacher who received the lowest evaluation rating, unless the school
does not have another teacher at that grade level.
(b) Beginning in the 2016-2017 school year, consistent with the teacher evaluations
under sections 122A.40, subdivision 8, and 122A.41, subdivision 5, a school administrator
must not place a student in grades five through twelve for consecutive school years in the
classroom of a teacher in the same subject area who received the lowest evaluation rating,
unless the school does not have another teacher in that subject area.
(c) The department, in consultation with the stakeholders under sections 122A.40,
subdivision 8, and 122A.41, subdivision 5, must review the classroom placement policies
under this section and must, no later than January 15, 2014, make a recommendation to
the legislative committees and divisions having jurisdiction over kindergarten through
grade 12 education funding and policy regarding implementation of these policies.

    Sec. 2. [120B.21] MENTAL HEALTH EDUCATION.
School districts and charter schools may provide mental health instruction for
students in grades 6 through 12 aligned with local health and physical education standards
and integrated into existing programs, curriculum, or the general school environment of
a district or charter school. The commissioner, in consultation with the commissioner
of human services and mental health organizations, shall provide districts and charter
schools with:
(1) age-appropriate model learning activities for grades 6 through 12 that encompass
the mental health components of the National Health Education Standards and the
benchmarks developed by the department's quality teaching network in health and physical
education, and best practices in mental health education; and
(2) a directory of resources for planning and implementing age-appropriate mental
health curriculum and instruction in grades 6 through 12.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2012, section 121A.39, is amended to read:
121A.39 SCHOOL COUNSELORS.
(a) A school district is strongly encouraged to have an adequate student-to-counselor
ratio for its students beginning in the 2015-2016 school year and later.
(b) A school counselor shall assist a student in meeting the requirements for high
school graduation, college and career exploration, and selection, college affordability
planning, and successful transitions into postsecondary education or training.

    Sec. 4. Minnesota Statutes 2012, section 122A.09, subdivision 4, is amended to read:
    Subd. 4. License and rules. (a) The board must adopt rules to license public school
teachers and interns subject to chapter 14.
(b) The board must adopt rules requiring a person to pass a skills examination in
reading, writing, and mathematics as a requirement for initial teacher licensure, except
that the board may issue a temporary, one-year teaching license to an otherwise qualified
candidate who has not passed the skills exam at the time the candidate successfully
completes an approved teacher preparation program. A person who is a nonnative English
language speaker as verified by qualified Minnesota school district personnel or Minnesota
higher education institution faculty and who directly instructs in that other language or
provides world language instruction under section 120B.022, subdivision 1, in that other
language may take and pass the skills examination at any time up to 36 months after
becoming otherwise eligible for an initial teaching license and may hold a temporary
teaching license during that time. Such rules must require college and universities offering
a board-approved teacher preparation program to provide remedial assistance to persons
who did not achieve a qualifying score on the skills examination, including those for
whom English is a second language.
(c) The board must adopt rules to approve teacher preparation programs. The board,
upon the request of a postsecondary student preparing for teacher licensure or a licensed
graduate of a teacher preparation program, shall assist in resolving a dispute between the
person and a postsecondary institution providing a teacher preparation program when the
dispute involves an institution's recommendation for licensure affecting the person or the
person's credentials. At the board's discretion, assistance may include the application
of chapter 14.
(d) The board must provide the leadership and adopt rules for the redesign of teacher
education programs to implement a research based, results-oriented curriculum that
focuses on the skills teachers need in order to be effective. The board shall implement new
systems of teacher preparation program evaluation to assure program effectiveness based
on proficiency of graduates in demonstrating attainment of program outcomes. Teacher
preparation programs including alternative teacher preparation programs under section
122A.245 , among other programs, must include a content-specific, board-approved,
performance-based assessment that measures teacher candidates in three areas: planning
for instruction and assessment; engaging students and supporting learning; and assessing
student learning.
(e) The board must adopt rules requiring candidates for initial licenses to pass an
examination of general pedagogical knowledge and examinations of licensure-specific
teaching skills. The rules shall be effective by September 1, 2001. The rules under this
paragraph also must require candidates for initial licenses to teach prekindergarten or
elementary students to pass, as part of the examination of licensure-specific teaching
skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive,
scientifically based reading instruction under section 122A.06, subdivision 4, and their
knowledge and understanding of the foundations of reading development, the development
of reading comprehension, and reading assessment and instruction, and their ability to
integrate that knowledge and understanding.
(f) The board must adopt rules requiring teacher educators to work directly with
elementary or secondary school teachers in elementary or secondary schools to obtain
periodic exposure to the elementary or secondary teaching environment.
(g) The board must grant licenses to interns and to candidates for initial licenses
based on appropriate professional competencies that are aligned with the board's licensing
system and students' diverse learning needs. The board must include these licenses in a
statewide differentiated licensing system that creates new leadership roles for successful
experienced teachers premised on a collaborative professional culture dedicated to meeting
students' diverse learning needs in the 21st century and formalizes mentoring and induction
for newly licensed teachers that is provided through a teacher support framework.
(h) The board must design and implement an assessment system which requires a
candidate for an initial license and first continuing license to demonstrate the abilities
necessary to perform selected, representative teaching tasks at appropriate levels.
(i) The board must receive recommendations from local committees as established
by the board for the renewal of teaching licenses.
(j) The board must grant life licenses to those who qualify according to requirements
established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and
214.10 . The board must not establish any expiration date for application for life licenses.
(k) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further preparation in
the areas of using positive behavior interventions and in accommodating, modifying, and
adapting curricula, materials, and strategies to appropriately meet the needs of individual
students and ensure adequate progress toward the state's graduation rule.
(l) In adopting rules to license public school teachers who provide health-related
services for disabled children, the board shall adopt rules consistent with license or
registration requirements of the commissioner of health and the health-related boards who
license personnel who perform similar services outside of the school.
(m) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further reading
preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect
until they are approved by law. Teachers who do not provide direct instruction including, at
least, counselors, school psychologists, school nurses, school social workers, audiovisual
directors and coordinators, and recreation personnel are exempt from this section.
(n) The board must adopt rules that require all licensed teachers who are renewing
their continuing license to include in their renewal requirements further preparation,
first, in understanding the key warning signs of early-onset mental illness in children
and adolescents and then, during subsequent licensure renewal periods, preparation may
include providing a more in-depth understanding of students' mental illness, trauma,
accommodations for students' mental illness, parents' role in addressing students' mental
illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942
governing restrictive procedures, and de-escalation methods, among other similar topics.
(o) The board must establish an appeals process for nonnative English language
speaker candidates under paragraph (b) who have not achieved a passing score on the
examination. The appeals process must allow a candidate to demonstrate the candidate's
competence by an alternative, equally rigorous method.
EFFECTIVE DATE.Paragraphs (b) and (o) are effective the day following final
enactment. Paragraph (n) is effective August 1, 2014. The rules must be revised by the
Board of Teaching no later than January 1, 2015, based on the recommendations of the
Teacher Licensure Advisory Task Force as approved by the legislature.

    Sec. 5. Minnesota Statutes 2012, section 122A.18, subdivision 2, is amended to read:
    Subd. 2. Teacher and support personnel qualifications. (a) The Board of
Teaching must issue licenses under its jurisdiction to persons the board finds to be
qualified and competent for their respective positions.
(b) The board must require a person to pass an examination of skills in reading,
writing, and mathematics before being granted an initial teaching license to provide direct
instruction to pupils in prekindergarten, elementary, secondary, or special education
programs, except that the board may issue a temporary, one-year teaching license to an
otherwise qualified candidate who has not passed the skills exam at the time the candidate
successfully completes an approved teacher preparation program. The board may grant
up to three one-year temporary teaching licenses to a person who is a nonnative English
language speaker as verified by qualified Minnesota school district personnel or Minnesota
higher education institution faculty and directly instructs in that other language or provides
world language instruction under section 120B.022, subdivision 1, in that other language,
consistent with section 122A.09, subdivision 4, paragraph (b). The board must require
colleges and universities offering a board approved teacher preparation program to
provide make available upon request remedial assistance that includes a formal diagnostic
component to persons enrolled in their institution who did not achieve a qualifying score
on the skills examination, including those for whom English is a second language. The
colleges and universities must provide make available assistance in the specific academic
areas of deficiency in which the person did not achieve a qualifying score. School districts
may make available upon request similar, appropriate, and timely remedial assistance that
includes a formal diagnostic component to those persons employed by the district who
completed their teacher education program, who did not achieve a qualifying score on
the skills examination, including those persons for whom English is a second language
and persons under section 122A.23, subdivision 2, paragraph (h), who completed their
teacher's education program outside the state of Minnesota, and who received a temporary,
one-year license to teach in Minnesota. The Board of Teaching shall report annually to the
education committees of the legislature on the total number of teacher candidates during
the most recent school year taking the skills examination, the number who achieve a
qualifying score on the examination, the number who do not achieve a qualifying score on
the examination, the distribution of all candidates' scores, the number of candidates who
have taken the examination at least once before, and the number of candidates who have
taken the examination at least once before and achieve a qualifying score, and the number
of nonnative English language speakers taking the examination under this paragraph.
(c) A person who has completed an approved teacher preparation program and
obtained a temporary, one-year teaching license, but has not passed the skills exam, may
have the board renew the temporary one-year license but not more than two times after
February 1, 2014, if the licensee:
(1) provides evidence of participating in an approved remedial assistance program
through a school district or postsecondary institution that includes a formal diagnostic
component in the specific subject areas the licensee did not pass;
(2) attempts to pass the skills exam during the one-year licensure period; and
(3) the school district employing the licensee requests that the licensee continue to
teach for that district under a temporary license.
(d) The Board of Teaching must grant continuing licenses only to those persons who
have met board criteria for granting a continuing license, which includes passing the skills
examination in reading, writing, and mathematics, consistent with paragraph (b), and
section 122A.09, subdivision 4, paragraph (b).
(d) (e) All colleges and universities approved by the board of teaching to prepare
persons for teacher licensure must include in their teacher preparation programs a common
core of teaching knowledge and skills to be acquired by all persons recommended
for teacher licensure. This common core shall meet the standards developed by the
interstate new teacher assessment and support consortium in its 1992 "model standards for
beginning teacher licensing and development." Amendments to standards adopted under
this paragraph are covered by chapter 14. The board of teaching shall report annually to
the education committees of the legislature on the performance of teacher candidates
on common core assessments of knowledge and skills under this paragraph during the
most recent school year.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. Minnesota Statutes 2012, section 122A.23, subdivision 2, is amended to read:
    Subd. 2. Applicants licensed in other states. (a) Subject to the requirements of
sections 122A.18, subdivision 8, and 123B.03, the Board of Teaching must issue a teaching
license or a temporary teaching license under paragraphs (b) to (e) to an applicant who holds
at least a baccalaureate degree from a regionally accredited college or university and holds
or held a similar out-of-state teaching license that requires the applicant to successfully
complete a teacher preparation program approved by the issuing state, which includes
field-specific teaching methods and student teaching or essentially equivalent experience.
(b) The Board of Teaching must issue a teaching license to an applicant who:
(1) successfully completed all exams and human relations preparation components
required by the Board of Teaching; and
(2) holds or held an out-of-state teaching license to teach the same content field and
grade levels if the scope of the out-of-state license is no more than one grade level less
than a similar Minnesota license.
(c) The Board of Teaching, consistent with board rules and paragraph (h), must
issue up to three one-year temporary teaching licenses to an applicant who holds or held
an out-of-state teaching license to teach the same content field and grade levels, where
the scope of the out-of-state license is no more than one grade level less than a similar
Minnesota license, but has not successfully completed all exams and human relations
preparation components required by the Board of Teaching.
(d) The Board of Teaching, consistent with board rules, must issue up to three
one-year temporary teaching licenses to an applicant who:
(1) successfully completed all exams and human relations preparation components
required by the Board of Teaching; and
(2) holds or held an out-of-state teaching license to teach the same content field
and grade levels, where the scope of the out-of-state license is no more than one grade
level less than a similar Minnesota license, but has not completed field-specific teaching
methods or student teaching or equivalent experience.
The applicant may complete field-specific teaching methods and student teaching
or equivalent experience by successfully participating in a one-year school district
mentorship program consistent with board-adopted standards of effective practice and
Minnesota graduation requirements.
(e) The Board of Teaching must issue a temporary teaching license for a term of
up to three years only in the content field or grade levels specified in the out-of-state
license to an applicant who:
(1) successfully completed all exams and human relations preparation components
required by the Board of Teaching; and
(2) holds or held an out-of-state teaching license where the out-of-state license is
more limited in the content field or grade levels than a similar Minnesota license.
(f) The Board of Teaching must not issue to an applicant more than three one-year
temporary teaching licenses under this subdivision.
(g) The Board of Teaching must not issue a license under this subdivision if the
applicant has not attained the additional degrees, credentials, or licenses required in a
particular licensure field.
(h) The Board of Teaching must require An applicant for a teaching license or a
temporary teaching license under this subdivision to must pass a skills examination in
reading, writing, and mathematics before the board issues the applicant a continuing
teaching license. Consistent with section 122A.18, subdivision 2, paragraph (c), and
notwithstanding other provisions of this subdivision, the board may issue a temporary,
one-year teaching license to an otherwise qualified applicant who has not passed the skills
exam and the board may renew this temporary license but not more than two times after
February 1, 2014, if the school district employing the applicant requests that the applicant
continue to teach for that district under a temporary license.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2012, section 122A.28, subdivision 1, is amended to read:
    Subdivision 1. K-12 license to teach deaf and hard-of-hearing students;
relicensure. (a) The Board of Teaching must review and determine appropriate licensure
requirements for a candidate for a license or an applicant for a continuing license to teach
deaf and hard-of-hearing students in prekindergarten through grade 12. In addition to
other requirements, a candidate must demonstrate the minimum level of proficiency in
American sign language as determined by the board.
(b) Among other relicensure requirements, each teacher under this section must
complete 30 continuing education clock hours on hearing loss topics, including American
Sign Language, American Sign Language linguistics, and deaf culture, for every 120
continuing education clock hours the teacher must complete for licensure renewal.
EFFECTIVE DATE.This section is effective August 1, 2013.

    Sec. 8. Minnesota Statutes 2012, section 124D.122, is amended to read:
124D.122 ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.
The board of any district or a consortium of districts, with the approval of the
commissioner, may establish and operate a flexible learning year program in one or
more of the day or residential facilities for children with a disability within the district.
Consortiums may use a single application and evaluation process, though results, public
hearings, and board approvals must be obtained for each district.

    Sec. 9. Minnesota Statutes 2012, section 124D.79, subdivision 1, is amended to read:
    Subdivision 1. Community involvement. The commissioner must provide for the
maximum involvement of the state committees on American Indian education, parents
of American Indian children, secondary students eligible to be served, American Indian
language and culture education teachers, American Indian teachers, teachers' aides,
representatives of community groups, and persons knowledgeable in the field of American
Indian education, in the formulation of policy and procedures relating to the administration
of sections 124D.71 to 124D.82. The commissioner must annually hold a field hearing on
Indian education to gather input from American Indian educators, parents, and students on
the state of American Indian education in Minnesota. Results of the hearing must be made
available to all 11 tribal nations for review and comment.

    Sec. 10. Minnesota Statutes 2012, section 124D.79, is amended by adding a
subdivision to read:
    Subd. 4. Consultation with the tribal nations education committee. (a) The
commissioner shall seek consultation with the Tribal Nations Education Committee on all
issues relating to American Indian education including:
(1) administration of the commissioner's duties under sections 124D.71 to 124D.82
and other programs;
(2) administration of other programs for the education of American Indian people, as
determined by the commissioner;
(3) awarding of scholarships to eligible American Indian students;
(4) administration of the commissioner's duties regarding awarding of American
Indian postsecondary preparation grants to school districts; and
(5) recommendations of education policy changes for American Indians.
(b) Membership in the Tribal Nations Education Committee is the sole discretion
of the committee and nothing in this subdivision gives the commissioner authority to
dictate committee membership.

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

    Sec. 12. CAREER AND TECHNICAL EDUCATION ADVISORY TASK FORCE.
    Subdivision 1. Recommendations. (a) A career and technical education advisory
task force is established to make recommendations to the Minnesota legislature for
improving (1) student outcomes in grades 11 to 14, (2) alignment between secondary and
postsecondary education programs serving students in grades 11 to 14, (3) alignment
between education programs for students in grades 11 to 14 and Minnesota's workforce
needs, and (4) the efficiency and cost-effectiveness of Minnesota's public secondary and
postsecondary programs serving students in grades 11 to 14. Advisory task force members
must examine the role of education providers, employers, policy makers, and other
interested stakeholders in realizing these improvements.
(b) In developing recommendations for improving student outcomes, advisory task
force members must at least consider how to (1) better inform students about career options,
occupational trends, and educational paths leading to viable and rewarding careers, (2)
develop and adapt as needed an education and work plan for each student aligned with the
student's personal and professional interests, abilities, skills, and aspirations, (3) monitor,
assess, and increase students' achievement levels in high school, (4) better prepare high
school students for postsecondary education meeting their career goals, and (5) increase the
rates at which students complete a postsecondary certificate, industry license, or degree.
(c) In developing recommendations for better aligning Minnesota's secondary and
postsecondary education programs for students in grades 11 to 14, advisory task force
members must at least consider how to (1) improve monitoring of high school students'
progress to better target interventions and support and remove the need for remedial
instruction, (2) better align high school courses and expectations and postsecondary
credit-bearing courses, (3) better align high school standards and assessments with
postsecondary readiness measures and entrance requirements, and (4) increase student
persistence and completion rates.
(d) In developing recommendations for better aligning education programs for
students in grades 11 to 14 and the preparation necessary to meet Minnesota's workforce
needs, advisory task force members must at least consider how to (1) more closely
align state kindergarten through grade 12 academic standards, high school graduation
requirements, and the expectations of postsecondary institutions and Minnesota employers,
(2) enable more high school students to pursue postsecondary education and training
leading to a certificate, industry license, or degree in a high-demand and high-reward
field, (3) reduce the gap between the demand for and preparation of a skilled Minnesota
workforce, and (4) provide graduates of two-year and four-year postsecondary institutions
with the foundational skills needed for civic engagement, ongoing employment, and
continuous learning.
(e) In developing recommendations for better aligning efficient and cost-effective
secondary and postsecondary programs for students in grades 11 to 14, advisory task force
members must at least consider how to (1) give high school students earlier and increased
access to postsecondary credit-bearing courses, and (2) provide targeted interventions and
support to help high school students avoid postsecondary remedial instruction.
(f) In developing recommendations under this subdivision, advisory task force
members are encouraged to consider how to structurally redesign secondary and
postsecondary education to (1) align Minnesota's statewide high school assessment system
with measures of readiness for postsecondary education, (2) provide targeted intervention
and support to students who are at risk of not graduating or off track for graduating from
high school, (3) increase and accelerate opportunities for secondary students to earn
postsecondary credits leading to a certificate, industry license, or degree, and (4) better
understand students' personal and professional interests, abilities, skills, and aspirations
and align that understanding with postsecondary education and careers.
    Subd. 2. Task force membership and operation. (a) Advisory task force
members must include representatives of the following entities selected by that entity:
the Minnesota Association of Career and Technical Administrators; the Minnesota
Association for Career and Technical Education; University of Minnesota and Minnesota
State Colleges and Universities faculty working to develop career and technical educators
in Minnesota; the National Research Center for Career and Technical Education; the
Minnesota Department of Education; the Minnesota Department of Employment and
Economic Development; the Minnesota Board of Teaching; the Minnesota Association of
Colleges for Teacher Education; and any other representatives selected by the task force
members. The education commissioner, or the commissioner's designee, must convene the
task force. Task force members are not eligible for compensation or reimbursement for
expenses related to task force activities.
(b) The education commissioner, upon request, must provide technical assistance to
the task force.
(c) The task force must submit its recommendations under this section to the
legislative committees with jurisdiction over kindergarten through grade 12 education by
February 15, 2014.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 13. TEACHER LICENSURE ADVISORY TASK FORCE.
    Subdivision 1. Establishment and duties. (a) A Teacher Licensure Advisory
Task Force is established to make recommendations to the Board of Teaching, the
education commissioner, and the education committees of the legislature on requirements
for: teacher applicants to demonstrate mastery of college-level reading, writing, and
mathematics skills through nationally normed assessments, a college-level skills portfolio,
or accredited college coursework, among other methods of demonstrating basic skills
mastery; and an alternative licensure pathway for nonnative English speakers seeking
licensure to teach in a language immersion program.
(b) Task force recommendations on how teacher candidates demonstrate
college-level skills mastery must encompass the following criteria:
(1) assessment content must be relevant to the teacher's subject area licensure;
(2) the scope of assessment content must be documented in sufficient detail to
correspond to a similarly detailed description of relevant public school curriculum;
(3) the scope of assessment content must be publicly available and readily accessible
on the Web site of the Board of Teaching and all Minnesota board-approved teacher
preparation programs and institutions;
(4) the Board of Teaching and all Minnesota board-approved teacher preparation
programs and institutions, upon request, must make available to the public at cost a written
review of the scope of assessment content;
(5) if applicable, the Board of Teaching and all Minnesota board-approved teacher
preparation programs and institutions annually must post on their Web site up-to-date
longitudinal summary data showing teacher candidates' overall passing rate and the
passing rate for each demographic group of teacher candidates taking a college-level skills
assessment in that school year and in previous school years;
(6) reliable evidence showing assessment content is not culturally biased;
(7) the Board of Teaching and all Minnesota board-approved teacher preparation
programs and institutions must appropriately accommodate teacher candidates
with documented learning disabilities, including an appeals process if a request for
accommodations is denied; and
(8) if applicable, give timely, detailed item analysis feedback to teacher candidates
who do not pass the basic skills assessment sufficient for the candidate to target specific
areas of deficiency for appropriate remediation.
    Subd. 2. Membership. The Teacher Licensure Advisory Task Force shall be
composed of the following 20 members appointed by July 15, 2013:
(1) two members of the Board of Teaching appointed by the board's executive
director;
(2) two representatives from the Department of Education appointed by the
commissioner of education;
(3) two members of the house of representatives, one appointed by the speaker of the
house of representatives, and one appointed by the minority leader;
(4) two senators, one appointed by the Subcommittee on Committees of the
Committee on Rules and Administration, and one appointed by the minority leader;
(5) one elementary school principal from rural Minnesota appointed by the
Minnesota Elementary School Principals Association and one secondary school principal
from the seven-county metropolitan area appointed by the Minnesota Secondary School
Principals Association;
(6) one licensed and practicing public elementary school teacher and one licensed
and practicing secondary school teacher appointed by Education Minnesota;
(7) one teacher preparation faculty member each from the University of Minnesota
system appointed by the system president, the Minnesota State Colleges and Universities
system appointed by the system chancellor, and the Minnesota Private Colleges and
Universities system appointed by the Minnesota Private Colleges Council;
(8) one member of the nonpublic education council appointed by the council;
(9) one representative of Minnesota charter schools appointed by the Minnesota
Charter Schools Association;
(10) two representatives from the business community, appointed by the Minnesota
Chamber of Commerce; and
(11) one representative from the Minnesota School Boards Association.
    Subd. 3. First meeting; chair. The executive director of the Board of Teaching
must convene the task force by August 1, 2013, and shall appoint a chair from the
membership of the task force.
    Subd. 4. Compensation. Task force members are not eligible for compensation or
reimbursement for expenses related to task force activities.
    Subd. 5. Support. The executive director of the board and the commissioner of
education must provide technical assistance to task force members upon request.
    Subd. 6. Report. By February 1, 2014, task force members must submit to the
Board of Teaching, the education commissioner, and to the chairs and ranking minority
members of the senate and house of representatives committees and divisions with
primary jurisdiction over K-12 education their written recommendations on requirements
for teacher applicants to demonstrate mastery of basic reading, writing, and mathematics
skills and for an alternative licensure pathway for nonnative English speakers seeking
licensure to teach in a language immersion program.
    Subd. 7. Sunset. The task force shall sunset the day after submitting the report
under subdivision 6, or February 2, 2014, whichever is earlier.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 14. STUDENT SUPPORT SERVICES; TEAM STAFFING APPROACH.
The commissioner of education shall develop and submit to the kindergarten
through grade 12 education policy and finance committees of the legislature by February
1, 2014, recommendations for providing access to licensed student support services,
including licensed school counselors, licensed school psychologists, licensed school
nurses, licensed school social workers, and licensed chemical health counselors, to public
school students throughout Minnesota using a multidisciplinary team staffing structure.
The recommendations must reflect:
(1) the extent to which students need academic, career, physical, emotional, social,
and early-onset mental health services to ensure educational achievement, safety and
enhancement of student's physical, emotional, and social well-being;
(2) the extent to which such services or teams do not exist, are incomplete or
inadequate given the number of students with unmet psychological, social, and health
needs that interfere with learning;
(3) existing funding streams and opportunities for additional funds to improve
students' access to needed licensed student support services; and
(4) caseloads and best practices when working to improve access to needed licensed
student support services.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 4

CHARTER SCHOOLS

    Section 1. Minnesota Statutes 2012, section 124D.10, is amended to read:
124D.10 CHARTER SCHOOLS.
    Subdivision 1. Purposes. (a) The primary purpose of this section is to:
    (1) improve pupil learning and student achievement;. Additional purposes include to:
    (2) (1) increase learning opportunities for pupils;
    (3) (2) encourage the use of different and innovative teaching methods;
    (4) (3) measure learning outcomes and create different and innovative forms of
measuring outcomes;
    (5) (4) establish new forms of accountability for schools; and or
    (6) (5) create new professional opportunities for teachers, including the opportunity
to be responsible for the learning program at the school site.
    (b) This section does not provide a means to keep open a school that a school board
decides to close. However, a school board may endorse or authorize the establishing of
a charter school to replace the school the board decided to close. Applicants seeking a
charter under this circumstance must demonstrate to the authorizer that the charter sought
is substantially different in purpose and program from the school the board closed and
that the proposed charter satisfies the requirements of this subdivision. If the school
board that closed the school authorizes the charter, it must document in its affidavit to the
commissioner that the charter is substantially different in program and purpose from
the school it closed.
    An authorizer shall not approve an application submitted by a charter school
developer under subdivision 4, paragraph (a), if the application does not comply with this
subdivision. The commissioner shall not approve an affidavit submitted by an authorizer
under subdivision 4, paragraph (b), if the affidavit does not comply with this subdivision.
    Subd. 2. Applicability. This section applies only to charter schools formed and
operated under this section.
    Subd. 3. Authorizer. (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
    "Application" to receive approval as an authorizer means the proposal an eligible
authorizer submits to the commissioner under paragraph (c) before that authorizer is able
to submit any affidavit to charter to a school.
    "Application" under subdivision 4 means the charter school business plan a
school developer submits to an authorizer for approval to establish a charter school that
documents the school developer's mission statement, school purposes, program design,
financial plan, governance and management structure, and background and experience,
plus any other information the authorizer requests. The application also shall include a
"statement of assurances" of legal compliance prescribed by the commissioner.
    "Affidavit" means a written statement the authorizer submits to the commissioner
for approval to establish a charter school under subdivision 4 attesting to its review and
approval process before chartering a school.
    (b) The following organizations may authorize one or more charter schools:
    (1) a school board, intermediate school district school board, or education district
organized under sections 123A.15 to 123A.19;
    (2) a charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986, excluding a nonpublic sectarian or religious institution; any person other than a
natural person that directly or indirectly, through one or more intermediaries, controls,
is controlled by, or is under common control with the nonpublic sectarian or religious
institution; and any other charitable organization under this clause that in the federal IRS
Form 1023, Part IV, describes activities indicating a religious purpose, that:
    (i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on
Foundations;
    (ii) is registered with the attorney general's office; and
    (iii) is incorporated in the state of Minnesota and has been operating continuously
for at least five years but does not operate a charter school;
    (3) a Minnesota private college, notwithstanding clause (2), that grants two- or
four-year degrees and is registered with the Minnesota Office of Higher Education under
chapter 136A; community college, state university, or technical college governed by the
Board of Trustees of the Minnesota State Colleges and Universities; or the University
of Minnesota;
    (4) a nonprofit corporation subject to chapter 317A, described in section 317A.905,
and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
of 1986, may authorize one or more charter schools if the charter school has operated
for at least three years under a different authorizer and if the nonprofit corporation has
existed for at least 25 years; or
    (5) single-purpose authorizers that are charitable, nonsectarian organizations formed
under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated in the state
of Minnesota whose sole purpose is to charter schools. Eligible organizations interested
in being approved as an authorizer under this paragraph must submit a proposal to the
commissioner that includes the provisions of paragraph (c) and a five-year financial plan.
Such authorizers shall consider and approve charter school applications using the criteria
provided in subdivision 4 and shall not limit the applications it solicits, considers, or
approves to any single curriculum, learning program, or method.
    (c) An eligible authorizer under this subdivision must apply to the commissioner for
approval as an authorizer before submitting any affidavit to the commissioner to charter
a school. The application for approval as a charter school authorizer must demonstrate
the applicant's ability to implement the procedures and satisfy the criteria for chartering a
school under this section. The commissioner must approve or disapprove an application
within 45 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the specific deficiencies
in writing and the applicant then has 20 business days to address the deficiencies to the
commissioner's satisfaction. After the 20 business days expire, the commissioner has 15
business days to make a final decision to approve or disapprove the application. Failing to
address the deficiencies to the commissioner's satisfaction makes an applicant ineligible to
be an authorizer. The commissioner, in establishing criteria for approval, must consider
the applicant's:
    (1) capacity and infrastructure;
    (2) application criteria and process;
    (3) contracting process;
    (4) ongoing oversight and evaluation processes; and
    (5) renewal criteria and processes.
    (d) An applicant must include in its application to the commissioner to be an
approved authorizer at least the following:
    (1) how chartering schools is a way for the organization to carry out its mission;
    (2) a description of the capacity of the organization to serve as an authorizer,
including the personnel who will perform the authorizing duties, their qualifications, the
amount of time they will be assigned to this responsibility, and the financial resources
allocated by the organization to this responsibility;
    (3) a description of the application and review process the authorizer will use to
make decisions regarding the granting of charters;
    (4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6;
    (5) the process to be used for providing ongoing oversight of the school consistent
with the contract expectations specified in clause (4) that assures that the schools chartered
are complying with both the provisions of applicable law and rules, and with the contract;
    (6) a description of the criteria and process the authorizer will use to grant expanded
applications under subdivision 4, paragraph (j);
    (7) the process for making decisions regarding the renewal or termination of
the school's charter based on evidence that demonstrates the academic, organizational,
and financial competency of the school, including its success in increasing student
achievement and meeting the goals of the charter school agreement; and
    (8) an assurance specifying that the organization is committed to serving as an
authorizer for the full five-year term.
    (e) A disapproved applicant under this section may resubmit an application during a
future application period.
    (f) If the governing board of an approved authorizer votes to withdraw as an
approved authorizer for a reason unrelated to any cause under subdivision 23, the
authorizer must notify all its chartered schools and the commissioner in writing by July
15 of its intent to withdraw as an authorizer on June 30 in the next calendar year. The
commissioner may approve the transfer of a charter school to a new authorizer under this
paragraph after the new authorizer submits an affidavit to the commissioner.
    (g) The authorizer must participate in department-approved training.
    (h) An authorizer that chartered a school before August 1, 2009, must apply by
June 30, 2012, to the commissioner for approval, under paragraph (c), to continue as an
authorizer under this section. For purposes of this paragraph, an authorizer that fails to
submit a timely application is ineligible to charter a school.
    (i) (h) The commissioner shall review an authorizer's performance every five years
in a manner and form determined by the commissioner and may review an authorizer's
performance more frequently at the commissioner's own initiative or at the request of a
charter school operator, charter school board member, or other interested party. The
commissioner, after completing the review, shall transmit a report with findings to the
authorizer. If, consistent with this section, the commissioner finds that an authorizer has
not fulfilled the requirements of this section, the commissioner may subject the authorizer
to corrective action, which may include terminating the contract with the charter school
board of directors of a school it chartered. The commissioner must notify the authorizer
in writing of any findings that may subject the authorizer to corrective action and
the authorizer then has 15 business days to request an informal hearing before the
commissioner takes corrective action. If the commissioner terminates a contract between
an authorizer and a charter school under this paragraph, the commissioner may assist the
charter school in acquiring a new authorizer.
    (j) (i) The commissioner may at any time take corrective action against an authorizer,
including terminating an authorizer's ability to charter a school for:
    (1) failing to demonstrate the criteria under paragraph (c) under which the
commissioner approved the authorizer;
    (2) violating a term of the chartering contract between the authorizer and the charter
school board of directors;
    (3) unsatisfactory performance as an approved authorizer; or
    (4) any good cause shown that provides the commissioner a legally sufficient reason
to take corrective action against an authorizer.
    Subd. 4. Formation of school. (a) An authorizer, after receiving an application from
a school developer, may charter a licensed teacher under section 122A.18, subdivision
1 , or a group of individuals that includes one or more licensed teachers under section
122A.18, subdivision 1 , to operate a school subject to the commissioner's approval of the
authorizer's affidavit under paragraph (b). The school must be organized and operated as a
nonprofit corporation under chapter 317A and the provisions under the applicable chapter
shall apply to the school except as provided in this section.
    Notwithstanding sections 465.717 and 465.719, a school district, subject to this
section and section 124D.11, may create a corporation for the purpose of establishing a
charter school.
    (b) Before the operators may establish and operate a school, the authorizer must file
an affidavit with the commissioner stating its intent to charter a school. An authorizer
must file a separate affidavit for each school it intends to charter. The affidavit must state
the terms and conditions under which the authorizer would charter a school and how the
authorizer intends to oversee the fiscal and student performance of the charter school and to
comply with the terms of the written contract between the authorizer and the charter school
board of directors under subdivision 6. The commissioner must approve or disapprove the
authorizer's affidavit within 60 business days of receipt of the affidavit. If the commissioner
disapproves the affidavit, the commissioner shall notify the authorizer of the deficiencies
in the affidavit and the authorizer then has 20 business days to address the deficiencies.
If the authorizer does not address deficiencies to the commissioner's satisfaction, the
commissioner's disapproval is final. Failure to obtain commissioner approval precludes an
authorizer from chartering the school that is the subject of this affidavit.
    (c) The authorizer may prevent an approved charter school from opening for
operation if, among other grounds, the charter school violates this section or does not meet
the ready-to-open standards that are part of the authorizer's oversight and evaluation
process or are stipulated in the charter school contract.
    (d) The operators authorized to organize and operate a school, before entering into a
contract or other agreement for professional or other services, goods, or facilities, must
incorporate as a nonprofit corporation under chapter 317A and must establish a board of
directors composed of at least five members who are not related parties until a timely
election for members of the ongoing charter school board of directors is held according to
the school's articles and bylaws under paragraph (f). A charter school board of directors
must be composed of at least five members who are not related parties. Staff members
employed at the school, including teachers providing instruction under a contract with a
cooperative, and all parents or legal guardians of children enrolled in the school are the
voters eligible to elect the members of the school's board of directors. A charter school
must notify eligible voters of the school board election dates at least 30 days before the
election. Board of director meetings must comply with chapter 13D.
    (e) A charter school shall publish and maintain on the school's official Web site: (1)
the minutes of meetings of the board of directors, and of members and committees having
any board-delegated authority, for at least one calendar year from the date of publication;
(2) directory information for members of the board of directors and committees having
board-delegated authority; and (3) identifying and contact information for the school's
authorizer. Identifying and contact information for the school's authorizer must be
included in other school materials made available to the public. Upon request of an
individual, the charter school must also make available in a timely fashion financial
statements showing all operations and transactions affecting income, surplus, and deficit
during the school's last annual accounting period; and a balance sheet summarizing assets
and liabilities on the closing date of the accounting period. A charter school also must post
on its official Web site information identifying its authorizer and indicate how to contact
that authorizer and include that same information about its authorizer in other school
materials that it makes available to the public.
    (f) Every charter school board member shall attend ongoing training throughout
the member's term on board governance, including training on the board's role and
responsibilities, employment policies and practices, and financial management. A board
member who does not begin the required initial training within six months after being
seated and complete that training within 12 months of being seated on the board is
ineligible to continue to serve as a board member. The school shall include in its annual
report the training attended by each board member during the previous year.
    (g) The ongoing board must be elected before the school completes its third year of
operation. Board elections must be held during the school year but may not be conducted
on days when the school is closed for holidays, breaks, or vacations. The charter school
board of directors shall be composed of at least five nonrelated members and include: (i)
at least one licensed teacher employed as a teacher at the school or a licensed teacher
providing instruction under contract between the charter school and a cooperative; (ii) the
parent or legal guardian of a student enrolled in the charter school who is not an employee
of the charter school; and (iii) an interested community member who is not employed by
the charter school and does not have a child enrolled in the school. The board may be
a teacher majority board composed of teachers described in this paragraph. The chief
financial officer and the chief administrator may only serve as ex-officio nonvoting board
members and may not serve as a voting member of the board. Charter school employees
shall not serve on the board unless item (i) applies. Contractors providing facilities, goods,
or services to a charter school shall not serve on the board of directors of the charter school.
Board bylaws shall outline the process and procedures for changing the board's governance
model, consistent with chapter 317A. A board may change its governance model only:
    (1) by a majority vote of the board of directors and the licensed teachers employed
by the school, including licensed teachers providing instruction under a contract between
the school and a cooperative; and
    (2) with the authorizer's approval.
    Any change in board governance must conform with the board structure established
under this paragraph.
    (h) The granting or renewal of a charter by an authorizer must not be conditioned
upon the bargaining unit status of the employees of the school.
    (i) The granting or renewal of a charter school by an authorizer must not be
contingent on the charter school being required to contract, lease, or purchase services
from the authorizer. Any potential contract, lease, or purchase of service from an
authorizer must be disclosed to the commissioner, accepted through an open bidding
process, and be a separate contract from the charter contract. The school must document
the open bidding process. An authorizer must not enter into a contract to provide
management and financial services for a school that it authorizes, unless the school
documents that it received at least two competitive bids.
    (j) An authorizer may permit the board of directors of a charter school to expand
the operation of the charter school to additional sites or to add additional grades at the
school beyond those described in the authorizer's original affidavit as approved by
the commissioner only after submitting a supplemental affidavit for approval to the
commissioner in a form and manner prescribed by the commissioner. The supplemental
affidavit must document that:
    (1) the proposed expansion plan demonstrates need and projected enrollment;
    (2) the expansion is warranted, at a minimum, by longitudinal data demonstrating
students' improved academic performance and growth on statewide assessments under
chapter 120B;
    (3) the charter school is financially sound and the financing it needs to implement
the proposed expansion exists; and
    (4) the charter school has the governance structure and management capacity to
carry out its expansion.
    (k) The commissioner shall have 30 business days to review and comment on the
supplemental affidavit. The commissioner shall notify the authorizer of any deficiencies in
the supplemental affidavit and the authorizer then has 20 business days to address, to the
commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school
may not expand grades or add sites until the commissioner has approved the supplemental
affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final.
    Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
member of the charter school board of directors if the individual, an immediate family
member, or the individual's partner is an owner, employee or agent of, or a contractor with a
for-profit or nonprofit entity or individual with whom the charter school contracts, directly
or indirectly, for professional services, goods, or facilities. A violation of this prohibition
renders a contract voidable at the option of the commissioner or the charter school board
of directors. A member of a charter school board of directors who violates this prohibition
is individually liable to the charter school for any damage caused by the violation.
    (b) No member of the board of directors, employee, officer, or agent of a charter
school shall participate in selecting, awarding, or administering a contract if a conflict
of interest exists. A conflict exists when:
    (1) the board member, employee, officer, or agent;
    (2) the immediate family of the board member, employee, officer, or agent;
    (3) the partner of the board member, employee, officer, or agent; or
    (4) an organization that employs, or is about to employ any individual in clauses
(1) to (3),
has a financial or other interest in the entity with which the charter school is contracting.
A violation of this prohibition renders the contract void.
    (c) Any employee, agent, or board member of the authorizer who participates
in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
nonrenewal process or decision is ineligible to serve on the board of directors of a school
chartered by that authorizer.
    (d) An individual may serve as a member of the board of directors if no conflict of
interest under paragraph (a) exists.
    (e) The conflict of interest provisions under this subdivision do not apply to
compensation paid to a teacher employed as a teacher by the charter school who or a
teacher who provides instructional services to the charter school through a cooperative
formed under chapter 308A when the teacher also serves as a member of on the charter
school board of directors.
    (f) The conflict of interest provisions under this subdivision do not apply to a teacher
who provides services to a charter school through a cooperative formed under chapter
308A when the teacher also serves on the charter school board of directors.
    Subd. 5. Conversion of existing schools. A board of an independent or special
school district may convert one or more of its existing schools to charter schools under
this section if 60 percent of the full-time teachers at the school sign a petition seeking
conversion. The conversion must occur at the beginning of an academic year.
    Subd. 6. Charter contract. The authorization for a charter school must be in the
form of a written contract signed by the authorizer and the board of directors of the charter
school. The contract must be completed within 45 business days of the commissioner's
approval of the authorizer's affidavit. The authorizer shall submit to the commissioner a
copy of the signed charter contract within ten business days of its execution. The contract
for a charter school must be in writing and contain at least the following:
(1) a declaration that the charter school will carry out the primary purpose in
subdivision 1 and how the school will report its implementation of the primary purpose;
    (1) (2) a declaration of the any additional purposes in subdivision 1 that the school
intends to carry out and how the school will report its implementation of those purposes;
    (2) (3) a description of the school program and the specific academic and
nonacademic outcomes that pupils must achieve;
    (3) (4) a statement of admission policies and procedures;
    (4) (5) a governance, management, and administration plan for the school;
    (5) (6) signed agreements from charter school board members to comply with all
federal and state laws governing organizational, programmatic, and financial requirements
applicable to charter schools;
    (6) (7) the criteria, processes, and procedures that the authorizer will use for
ongoing oversight of operational, financial, and academic performance to monitor and
evaluate the fiscal, operational, and academic performance consistent with subdivision
15, paragraphs (a) and (b);
    (7) (8) for contract renewal, the formal written performance evaluation of the school
that is a prerequisite for reviewing a charter contract under subdivision 15;
    (8) (9) types and amounts of insurance liability coverage to be obtained by the
charter school, consistent with subdivision 8, paragraph (k);
    (9) (10) consistent with subdivision 25, paragraph (d), a provision to indemnify and
hold harmless the authorizer and its officers, agents, and employees from any suit, claim,
or liability arising from any operation of the charter school, and the commissioner and
department officers, agents, and employees notwithstanding section 3.736;
    (10) (11) the term of the initial contract, which may be up to five years plus an
additional preoperational planning year, and up to five years for a renewed contract or a
contract with a new authorizer after a transfer of authorizers, if warranted by the school's
academic, financial, and operational performance;
    (11) (12) how the board of directors or the operators of the charter school will
provide special instruction and services for children with a disability under sections
125A.03 to 125A.24, and 125A.65, a description of the financial parameters within
which the charter school will operate to provide the special instruction and services to
children with a disability;
    (12) the process and criteria the authorizer intends to use to monitor and evaluate the
fiscal and student performance of the charter school, consistent with subdivision 15; and
(13) the specific conditions for contract renewal, which identify performance under
the primary purpose of subdivision 1 as the most important factor in determining contract
renewal; and
    (13) (14) the plan for an orderly closing of the school under chapter 317A, if
whether the closure is a termination for cause, a voluntary termination, or a nonrenewal
of the contract, and that includes establishing the responsibilities of the school board of
directors and the authorizer and notifying the commissioner, authorizer, school district in
which the charter school is located, and parents of enrolled students about the closure,
the transfer of student records to students' resident districts, and procedures for closing
financial operations.
    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
commissioner and its authorizer by December 31 each year.
    (b) The charter school, with the assistance of the auditor conducting the audit,
must include with the report, as supplemental information, a copy of all charter school
agreements for corporate management services, including parent company or other
administrative, financial, and staffing services. If the entity that provides the professional
services to the charter school is exempt from taxation under section 501 of the Internal
Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy
of the annual return required under section 6033 of the Internal Revenue Code of 1986.
    (c) A charter school independent audit report shall include audited financial data of
an affiliated building corporation or other component unit.
    (c) (d) If the audit report finds that a material weakness exists in the financial
reporting systems of a charter school, the charter school must submit a written report to
the commissioner explaining how the material weakness will be resolved. An auditor,
as a condition of providing financial services to a charter school, must agree to make
available information about a charter school's financial audit to the commissioner and
authorizer upon request.
    Subd. 7. Public status; exemption from statutes and rules. A charter school is
a public school and is part of the state's system of public education. A charter school is
exempt from all statutes and rules applicable to a school, school board, or school district
unless a statute or rule is made specifically applicable to a charter school or is included
in this section.
    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
federal, state, and local health and safety requirements applicable to school districts.
    (b) A school must comply with statewide accountability requirements governing
standards and assessments in chapter 120B.
    (c) A school authorized by a school board may be located in any district, unless the
school board of the district of the proposed location disapproves by written resolution.
    (d) A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. An authorizer may not authorize a charter
school or program that is affiliated with a nonpublic sectarian school or a religious
institution. A charter school student must be released for religious instruction, consistent
with section 120A.22, subdivision 12, clause (3).
    (e) Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled. This paragraph does not
apply to shared time aid under section 126C.19.
    (f) The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.
    (g) A charter school may not charge tuition.
    (h) A charter school is subject to and must comply with chapter 363A and section
121A.04 .
    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.
    (j) A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district, except as required under subdivision 6a. Audits must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
118A.05 ; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
necessary because of the program at the school. Deviations must be approved by the
commissioner and authorizer. The Department of Education, state auditor, legislative
auditor, or authorizer may conduct financial, program, or compliance audits. A charter
school determined to be in statutory operating debt under sections 123B.81 to 123B.83
must submit a plan under section 123B.81, subdivision 4.
    (k) A charter school is a district for the purposes of tort liability under chapter 466.
    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
subdivision 7 ; 121A.75; and 260B.171, subdivisions 3 and 5.
    (m) A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.
    (n) A charter school offering online courses or programs must comply with section
124D.095 .
    (o) A charter school and charter school board of directors are subject to chapter 181.
    (p) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.
    (q) A charter school that provides early childhood health and developmental
screening must comply with sections 121A.16 to 121A.19.
    (r) A charter school that provides school-sponsored youth athletic activities must
comply with section 121A.38.
    (s) A charter school is subject to and must comply with continuing truant notification
under section 260A.03.
    Subd. 8a. Aid reduction. The commissioner may reduce a charter school's state aid
under section 127A.42 or 127A.43 if the charter school board fails to correct a violation
under this section.
    Subd. 8b. Aid reduction for violations. The commissioner may reduce a charter
school's state aid by an amount not to exceed 60 percent of the charter school's basic
revenue for the period of time that a violation of law occurs.
    Subd. 9. Admission requirements. (a) A charter school may limit admission to:
    (1) pupils within an age group or grade level;
    (2) pupils who are eligible to participate in the graduation incentives program under
section 124D.68; or
    (3) residents of a specific geographic area in which the school is located when the
majority of students served by the school are members of underserved populations.
    (b) A charter school shall enroll an eligible pupil who submits a timely application,
unless the number of applications exceeds the capacity of a program, class, grade level, or
building. In this case, pupils must be accepted by lot. The charter school must develop
and publish, including on its Web site, a lottery policy and process that it must use when
accepting pupils by lot.
    (c) A charter school shall give enrollment preference to a sibling of an enrolled pupil
and to a foster child of that pupil's parents and may give preference for enrolling children
of the school's staff before accepting other pupils by lot.
    (d) A person shall not be admitted to a charter school (1) as a kindergarten pupil,
unless the pupil is at least five years of age on September 1 of the calendar year in which
the school year for which the pupil seeks admission commences; or (2) as a first grade
student, unless the pupil is at least six years of age on September 1 of the calendar year in
which the school year for which the pupil seeks admission commences or has completed
kindergarten; except that a charter school may establish and publish on its Web site a
policy for admission of selected pupils at an earlier age, consistent with the enrollment
process in paragraphs (b) and (c).
    (e) Except as permitted in paragraph (d), a charter school may not limit admission
to pupils on the basis of intellectual ability, measures of achievement or aptitude, or
athletic ability and may not establish any criteria or requirements for admission that are
inconsistent with this subdivision.
    (f) The charter school shall not distribute any services or goods of value to students,
parents, or guardians as an inducement, term, or condition of enrolling a student in a
charter school.
    Subd. 10. Pupil performance. A charter school must design its programs to at
least meet the outcomes adopted by the commissioner for public school students. In
the absence of the commissioner's requirements, the school must meet the outcomes
contained in the contract with the authorizer. The achievement levels of the outcomes
contained in the contract may exceed the achievement levels of any outcomes adopted by
the commissioner for public school students.
    Subd. 11. Employment and other operating matters. (a) A charter school must
employ or contract with necessary teachers, as defined by section 122A.15, subdivision 1,
who hold valid licenses to perform the particular service for which they are employed in
the school. The charter school's state aid may be reduced under section 127A.43 if the
school employs a teacher who is not appropriately licensed or approved by the board of
teaching. The school may employ necessary employees who are not required to hold
teaching licenses to perform duties other than teaching and may contract for other services.
The school may discharge teachers and nonlicensed employees. The charter school board
is subject to section 181.932. When offering employment to a prospective employee, a
charter school must give that employee a written description of the terms and conditions
of employment and the school's personnel policies.
    (b) A person, without holding a valid administrator's license, may perform
administrative, supervisory, or instructional leadership duties. The board of directors shall
establish qualifications for persons that hold administrative, supervisory, or instructional
leadership roles. The qualifications shall include at least the following areas: instruction
and assessment; human resource and personnel management; financial management;
legal and compliance management; effective communication; and board, authorizer, and
community relationships. The board of directors shall use those qualifications as the basis
for job descriptions, hiring, and performance evaluations of those who hold administrative,
supervisory, or instructional leadership roles. The board of directors and an individual
who does not hold a valid administrative license and who serves in an administrative,
supervisory, or instructional leadership position shall develop a professional development
plan. Documentation of the implementation of the professional development plan of these
persons shall be included in the school's annual report.
    (c) The board of directors also shall decide and be responsible for matters related to
the operation of the school, including budgeting, curriculum and operating procedures.
    Subd. 12. Pupils with a disability. A charter school must comply with sections
125A.02 , 125A.03 to 125A.24, and 125A.65 and rules relating to the education of pupils
with a disability as though it were a district.
    Subd. 13. Length of school year. A charter school must provide instruction each
year for at least the number of hours required by section 120A.41. It may provide
instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128.
    Subd. 14. Annual public reports. A charter school must publish an annual report
approved by the board of directors. The annual report must at least include information
on school enrollment, student attrition, governance and management, staffing, finances,
academic performance, operational performance, innovative practices and implementation,
and future plans. A charter school must post the annual report on the school's official Web
site. The charter school must also distribute the annual report by publication, mail, or
electronic means to the commissioner, its authorizer, school employees, and parents and
legal guardians of students enrolled in the charter school and must also post the report on
the charter school's official Web site. The reports are public data under chapter 13.
    Subd. 15. Review and comment. (a) The authorizer shall provide a formal written
evaluation of the school's performance before the authorizer renews the charter contract.
The department must review and comment on the authorizer's evaluation process at the
time the authorizer submits its application for approval and each time the authorizer
undergoes its five-year review under subdivision 3, paragraph (i).
    (b) An authorizer shall monitor and evaluate the fiscal, academic, financial, and
operational, and student performance of the school, and may for this purpose annually
assess a charter school a fee according to paragraph (c). The agreed-upon fee structure
must be stated in the charter school contract.
    (c) The fee that each charter school pays to an authorizer each year an authorizer
may annually assess is the greater of:
    (1) the basic formula allowance for that year; or
    (2) the lesser of:
    (i) the maximum fee factor times the basic formula allowance for that year; or
    (ii) the fee factor times the basic formula allowance for that year times the charter
school's adjusted marginal cost pupil units for that year. The fee factor equals .005 in fiscal
year 2010, .01 in fiscal year 2011, .013 in fiscal year 2012, and .015 in fiscal years 2013
and later. The maximum fee factor equals 1.5 in fiscal year 2010, 2.0 in fiscal year 2011,
3.0 in fiscal year 2012, and 4.0 in fiscal years 2013 and later.
    (d) An authorizer may not assess a fee for any required services other than as
provided in this subdivision.
    (e) For the preoperational planning period, after a school is chartered, the authorizer
may assess a charter school a fee equal to the basic formula allowance.
    (f) By September 30 of each year, an authorizer shall submit to the commissioner a
statement of income and expenditures related to chartering activities during the previous
school year ending June 30. A copy of the statement shall be given to all schools chartered
by the authorizer.
    Subd. 16. Transportation. (a) A charter school after its first fiscal year of operation
by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of
operation must notify the district in which the school is located and the Department of
Education if it will provide its own transportation or use the transportation services of the
district in which it is located for the fiscal year.
    (b) If a charter school elects to provide transportation for pupils, the transportation
must be provided by the charter school within the district in which the charter school is
located. The state must pay transportation aid to the charter school according to section
124D.11, subdivision 2 .
    For pupils who reside outside the district in which the charter school is located, the
charter school is not required to provide or pay for transportation between the pupil's
residence and the border of the district in which the charter school is located. A parent
may be reimbursed by the charter school for costs of transportation from the pupil's
residence to the border of the district in which the charter school is located if the pupil is
from a family whose income is at or below the poverty level, as determined by the federal
government. The reimbursement may not exceed the pupil's actual cost of transportation
or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for
more than 250 miles per week.
    At the time a pupil enrolls in a charter school, the charter school must provide the
parent or guardian with information regarding the transportation.
    (c) If a charter school does not elect to provide transportation, transportation for
pupils enrolled at the school must be provided by the district in which the school is
located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a
pupil residing in the same district in which the charter school is located. Transportation
may be provided by the district in which the school is located, according to sections
123B.88, subdivision 6 , and 124D.03, subdivision 8, for a pupil residing in a different
district. If the district provides the transportation, the scheduling of routes, manner and
method of transportation, control and discipline of the pupils, and any other matter relating
to the transportation of pupils under this paragraph shall be within the sole discretion,
control, and management of the district.
    Subd. 17. Leased space. A charter school may lease space from an independent
or special school board eligible to be an authorizer, other public organization, private,
nonprofit nonsectarian organization, private property owner, or a sectarian organization
if the leased space is constructed as a school facility. The department must review and
approve or disapprove leases, including modifications and renewals prior to execution of
the lease by the lessee and lessor, in a timely manner. Leases for a school year must be
submitted to the department no later than July 1 before that school year. The commissioner
may waive this date based on an appeal by a charter school when circumstances beyond
the control of the charter school do not allow a lease agreement to be written prior to that
date. The commissioner shall not approve a facility lease that does not have (1) a sum
certain annual cost and (2) an escape clause that may be exercised by the charter school in
the event of nonrenewal or termination of the charter school contract.
    Subd. 17a. Affiliated nonprofit building corporation. (a) Before a charter school
may organize an affiliated nonprofit building corporation (i) to renovate or purchase an
existing facility to serve as a school or (ii) to expand an existing building or construct
a new school facility, an authorizer must submit an affidavit to the commissioner for
approval in the form and manner the commissioner prescribes, and consistent with
paragraphs (b) and (c) or (d).
    (b) An affiliated nonprofit building corporation under this subdivision must:
    (1) be incorporated under section 317A;
    (2) comply with applicable Internal Revenue Service regulations, including
regulations for "supporting organizations" as defined by the Internal Revenue Service;
    (3) submit to the commissioner each fiscal year a list of current board members
and a copy of its annual audit; and
    (4) comply with government data practices law under chapter 13.
An affiliated nonprofit building corporation must not serve as the leasing agent for
property or facilities it does not own. A charter school that leases a facility from an
affiliated nonprofit building corporation that does not own the leased facility is ineligible
to receive charter school lease aid. The state is immune from liability resulting from a
contract between a charter school and an affiliated nonprofit building corporation.
    (c) A charter school may organize an affiliated nonprofit building corporation to
renovate or purchase an existing facility to serve as a school if the charter school:
    (1) has been operating for at least five consecutive school years;
    (2) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;
    (3) has a long-range strategic and financial plan;
    (4) completes a feasibility study of available buildings;
    (5) documents enrollment projections and the need to use an affiliated building
corporation to renovate or purchase an existing facility to serve as a school; and
(6) has a plan for the renovation or purchase, which describes the parameters and
budget for the project.
    (d) A charter school may organize an affiliated nonprofit building corporation to
expand an existing school facility or construct a new school facility if the charter school:
    (1) demonstrates the lack of facilities available to serve as a school;
    (2) has been operating for at least eight consecutive school years;
    (3) has had a net positive unreserved general fund balance as of June 30 in the
preceding five fiscal years;
    (4) completes a feasibility study of facility options;
    (5) has a long-range strategic and financial plan that includes enrollment projections
and demonstrates the need for constructing a new school facility; and
    (6) has a plan for the expansion or new school facility, which describes the
parameters and budget for the project.
    Subd. 17b. Positive review and comment. (e) A charter school or an affiliated
nonprofit building corporation organized by a charter school must not initiate an
installment contract for purchase, or a lease agreement, or solicit bids for new construction,
expansion, or remodeling of an educational facility that requires an expenditure in
excess of $1,400,000, unless it meets the criteria in subdivision 17a, paragraph (b) and
paragraph (c) or (d), as applicable, and receives a positive review and comment from
the commissioner under section 123B.71.
    Subd. 19. Disseminate information. (a) The authorizer, the operators, Authorizers
and the department must disseminate information to the public on how to form and
operate a charter school. Charter schools must disseminate information about how to
use the offerings of a charter school. Targeted groups include low-income families and
communities, students of color, and students who are at risk of academic failure.
    (b) Authorizers, operators, and the department also may disseminate information
about the successful best practices in teaching and learning demonstrated by charter
schools.
    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school,
the district must grant the leave. The district must grant a leave not to exceed a total of
five years. Any request to extend the leave shall be granted only at the discretion of the
school board. The district may require that the request for a leave or extension of leave
be made before February 1 in the school year preceding the school year in which the
teacher intends to leave, or February 1 of the calendar year in which the teacher's leave is
scheduled to terminate. Except as otherwise provided in this subdivision and except for
section 122A.46, subdivision 7, the leave is governed by section 122A.46, including, but
not limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
    During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account under chapters 354 and 354A, consistent with
subdivision 22.
    Subd. 21. Collective bargaining. Employees of the board of directors of a charter
school may, if otherwise eligible, organize under chapter 179A and comply with its
provisions. The board of directors of a charter school is a public employer, for the
purposes of chapter 179A, upon formation of one or more bargaining units at the school.
Bargaining units at the school must be separate from any other units within an authorizing
district, except that bargaining units may remain part of the appropriate unit within an
authorizing district, if the employees of the school, the board of directors of the school,
the exclusive representative of the appropriate unit in the authorizing district, and the
board of the authorizing district agree to include the employees in the appropriate unit of
the authorizing district.
    Subd. 22. Teacher and other employee retirement. (a) Teachers in a charter
school must be public school teachers for the purposes of chapters 354 and 354A.
    (b) Except for teachers under paragraph (a), employees in a charter school must be
public employees for the purposes of chapter 353.
    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
The duration of the contract with an authorizer must be for the term contained in the
contract according to subdivision 6. The authorizer may or may not renew a contract at
the end of the term for any ground listed in paragraph (b). An authorizer may unilaterally
terminate a contract during the term of the contract for any ground listed in paragraph (b).
At least 60 business days before not renewing or terminating a contract, the authorizer
shall notify the board of directors of the charter school of the proposed action in writing.
The notice shall state the grounds for the proposed action in reasonable detail and that the
charter school's board of directors may request in writing an informal hearing before the
authorizer within 15 business days of receiving notice of nonrenewal or termination of
the contract. Failure by the board of directors to make a written request for an informal
hearing within the 15-business-day period shall be treated as acquiescence to the proposed
action. Upon receiving a timely written request for a hearing, the authorizer shall give ten
business days' notice to the charter school's board of directors of the hearing date. The
authorizer shall conduct an informal hearing before taking final action. The authorizer
shall take final action to renew or not renew a contract no later than 20 business days
before the proposed date for terminating the contract or the end date of the contract.
    (b) A contract may be terminated or not renewed upon any of the following grounds:
    (1) failure to meet demonstrate satisfactory academic achievement for all groups of
students, including the requirements for pupil performance contained in the contract;
    (2) failure to meet generally accepted standards of fiscal management;
    (3) violations of law; or
    (4) other good cause shown.
    If a contract is terminated or not renewed under this paragraph, the school must be
dissolved according to the applicable provisions of chapter 317A.
    (c) If the authorizer and the charter school board of directors mutually agree to
terminate or not renew the contract, a change in authorizers is allowed if the commissioner
approves the change to a different eligible authorizer to authorize the charter school.
Both parties must jointly submit their intent in writing to the commissioner to mutually
terminate the contract. The authorizer that is a party to the existing contract must inform
the proposed authorizer about the fiscal and operational status and student performance
of the school. Before the commissioner determines whether to approve a change in
authorizer, the proposed authorizer must identify any outstanding issues in the proposed
charter contract that were unresolved in the previous charter contract and have the charter
school agree to resolve those issues. If no change in authorizer is approved, the school
must be dissolved according to applicable law and the terms of the contract.
    (d) The commissioner, after providing reasonable notice to the board of directors of
a charter school and the existing authorizer, and after providing an opportunity for a public
hearing, may terminate the existing contract between the authorizer and the charter school
board if the charter school has a history of:
    (1) failure to meet pupil performance requirements consistent with state law;
    (2) financial mismanagement or failure to meet generally accepted standards of
fiscal management; or
    (3) repeated or major violations of the law.
(e) Notwithstanding other provisions of this subdivision, the authorizer of a charter
school may terminate an existing contract between the authorizer and the charter school at
the end of the current school year, after notifying the charter school board of directors by
December 1, if in each of the previous three consecutive school years the performance of
the charter school based on federal school accountability measures and on state measures
of student performance and growth would place the school in the bottom quartile of all
public schools as determined by the commissioner. If an authorizer chooses to terminate
the contract, the school must be closed according to applicable law and the terms of
the contract. The authorizer must work with the charter school's board of directors to
ensure parents of children currently enrolled at the school are aware of school choice
options and receive assistance in selecting an appropriate choice for the next school year.
If the authorizer chooses not to terminate the existing contract under these conditions, the
authorizer must submit a public, written justification of the decision to the commissioner
by December 1. The commissioner may use this decision as a factor in reviewing the
authorizer's performance under subdivision 3, paragraph (i). The federal and state measures
identified in this paragraph are minimum conditions and are not intended to discourage
and do not prevent an authorizer from closing schools which do not meet these conditions.
    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
entering a lease of real property with a related party unless the lessor is a nonprofit
corporation under chapter 317A or a cooperative under chapter 308A, and the lease cost is
reasonable under section 124D.11, subdivision 4, clause (1).
    (b) For purposes of this section and section 124D.11:
    (1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
    (2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;
    (3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;
    (4) "person" means an individual or entity of any kind; and
    (5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.
    (c) A lease of real property to be used for a charter school, not excluded in paragraph
(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."
    (d) If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4 , clause (1).
    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
contract. If a contract is not renewed or is terminated according to subdivision 23, a
pupil who attended the school, siblings of the pupil, or another pupil who resides in the
same place as the pupil may enroll in the resident district or may submit an application
to a nonresident district according to section 124D.03 at any time. Applications and
notices required by section 124D.03 must be processed and provided in a prompt manner.
The application and notice deadlines in section 124D.03 do not apply under these
circumstances. The closed charter school must transfer the student's educational records
within ten business days of closure to the student's school district of residence where the
records must be retained or transferred under section 120A.22, subdivision 7.
    Subd. 25. Extent of specific legal authority. (a) The board of directors of a charter
school may sue and be sued.
    (b) The board may not levy taxes or issue bonds.
    (c) The commissioner, an authorizer, members of the board of an authorizer in
their official capacity, and employees of an authorizer are immune from civil or criminal
liability with respect to all activities related to a charter school they approve or authorize.
The board of directors shall obtain at least the amount of and types of insurance up to the
applicable tort liability limits under chapter 466. The charter school board must submit
a copy of the insurance policy to its authorizer and the commissioner before starting
operations. The charter school board must submit changes in its insurance carrier or policy
to its authorizer and the commissioner within 20 business days of the change.
(d) Notwithstanding section 3.736, the charter school shall assume full liability for
its activities and indemnify and hold harmless the authorizer and its officers, agents, and
employees from any suit, claim, or liability arising from any operation of the charter school
and the commissioner and department officers, agents, and employees. A charter school
is not required to indemnify or hold harmless a state employee if the state would not be
required to indemnify and hold the employee harmless under section 3.736, subdivision 9.
    Subd. 27. Collaboration between charter school and school district. (a) A charter
school board may voluntarily enter into a two-year, renewable agreement for collaboration
to enhance student achievement with a school district within whose geographic boundary
it operates.
(b) A school district need not be an approved authorizer to enter into a collaboration
agreement with a charter school. A charter school need not be authorized by the school
district with which it seeks to collaborate.
(c) A charter school authorizer is prohibited from requiring a collaboration agreement
as a condition of entering into or renewing a charter contract as defined in subdivision 6.
(d) Nothing in this subdivision or in the collaboration agreement may impact in any
way the authority or autonomy of the charter school.
(e) Nothing in this subdivision or in the collaboration agreement shall cause the state
to pay twice for the same student, service, or facility or otherwise impact state funding, or
the flow thereof, to the school district or the charter school.
(f) The collaboration agreement may include, but need not be limited to,
collaboration regarding facilities, transportation, training, student achievement,
assessments, mutual performance standards, and other areas of mutual agreement.
(g) The school district may include the academic performance of the students of a
collaborative charter school site operating within the geographic boundaries of the school
district, for purposes of student assessment and reporting to the state.
(h) Districts, authorizers, or charter schools entering into a collaborative agreement
are equally and collectively subject to the same state and federal accountability measures
for student achievement, school performance outcomes, and school improvement
strategies. The collaborative agreement and all accountability measures must be posted
on the district, charter school, and authorizer Web sites.
EFFECTIVE DATE.Subdivision 23 is effective July 1, 2013, and applies to federal
school accountability measures and state measures of student performance and growth
from the 2010-2011 school year and later.

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

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

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

    Sec. 5. Minnesota Statutes 2012, section 260A.07, subdivision 1, is amended to read:
    Subdivision 1. Establishment; referrals. A county attorney may establish a truancy
mediation program for the purpose of resolving truancy problems without court action. If
a student is in a school district or charter school that has established a school attendance
review board, the student may be referred to the county attorney under section 260A.06,
subdivision 3 . If the student's school district or charter school has not established a board,
the student may be referred to the county attorney by the school district or charter school
if the student continues to be truant after the parent or guardian has been sent or conveyed
the notice under section 260A.03.

ARTICLE 5

SPECIAL PROGRAMS

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

    Sec. 2. Minnesota Statutes 2012, section 125A.0941, is amended to read:
125A.0941 DEFINITIONS.
(a) The following terms have the meanings given them.
(b) "Emergency" means a situation where immediate intervention is needed to
protect a child or other individual from physical injury or to prevent serious property
damage. Emergency does not mean circumstances such as: a child who does not respond
to a task or request and instead places his or her head on a desk or hides under a desk or
table; a child who does not respond to a staff person's request unless failing to respond
would result in physical injury to the child or other individual; or an emergency incident
has already occurred and no threat of physical injury currently exists.
(c) "Physical holding" means physical intervention intended to hold a child immobile
or limit a child's movement, where body contact is the only source of physical restraint,
and where immobilization is used to effectively gain control of a child in order to protect
the a child or other person individual from physical injury. The term physical holding does
not mean physical contact that:
(1) helps a child respond or complete a task;
(2) assists a child without restricting the child's movement;
(3) is needed to administer an authorized health-related service or procedure; or
(4) is needed to physically escort a child when the child does not resist or the child's
resistance is minimal.
(d) "Positive behavioral interventions and supports" means interventions and
strategies to improve the school environment and teach children the skills to behave
appropriately.
(e) "Prone restraint" means placing a child in a face down position.
(f) "Restrictive procedures" means the use of physical holding or seclusion in an
emergency. Restrictive procedures must not be used to punish or otherwise discipline a
child.
(g) "Seclusion" means confining a child alone in a room from which egress is barred.
Egress may be barred by an adult locking or closing the door in the room or preventing the
child from leaving the room. Removing a child from an activity to a location where the
child cannot participate in or observe the activity is not seclusion.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2012, section 125A.0942, is amended to read:
125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
restrictive procedures shall maintain and make publicly accessible a restrictive procedures
plan for children with disabilities that includes at least the following:
(1) lists the list of restrictive procedures the school intends to use;
(2) describes how the school will implement a range of positive behavior strategies
and provide links to mental health services;
(3) describes how the school will monitor and review the use of restrictive
procedures, including:
(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
clause (5); and
(ii) convening an oversight committee to undertake a quarterly review of the use
of restrictive procedures based on patterns or problems indicated by similarities in the
time of day, day of the week, duration of the use of a procedure, the individuals involved,
or other factors associated with the use of restrictive procedures; the number of times a
restrictive procedure is used schoolwide and for individual children; the number and types
of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
procedures are used in nonemergency situations; the need for additional staff training; and
proposed actions to minimize the use of restrictive procedures; and
(3) (4) includes a written description and documentation of the training staff
completed under subdivision 5.
(b) Schools annually must publicly identify oversight committee members who
must at least include:
(1) a mental health professional, school psychologist, or school social worker;
(2) an expert in positive behavior strategies;
(3) a special education administrator; and
(4) a general education administrator.
    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only by a
licensed special education teacher, school social worker, school psychologist, behavior
analyst certified by the National Behavior Analyst Certification Board, a person with a
master's degree in behavior analysis, other licensed education professional, highly qualified
paraprofessional under section 120B.363, or mental health professional under section
245.4871, subdivision 27 , who has completed the training program under subdivision 5.
(b) A school shall make reasonable efforts to notify the parent on the same day a
restrictive procedure is used on the child, or if the school is unable to provide same-day
notice, notice is sent within two days by written or electronic means or as otherwise
indicated by the child's parent under paragraph (d).
(c) When restrictive procedures are used twice in 30 days or when a pattern emerges
and restrictive procedures are not included in a child's individualized education program
or behavior intervention plan, The district must hold a meeting of the individualized
education program team, conduct or review a functional behavioral analysis, review data,
consider developing additional or revised positive behavioral interventions and supports,
consider actions to reduce the use of restrictive procedures, and modify the individualized
education program or behavior intervention plan as appropriate. The district must hold
the meeting: within ten calendar days after district staff use restrictive procedures on two
separate school days within 30 calendar days or a pattern of use emerges and the child's
individualized education program or behavior intervention plan does not provide for using
restrictive procedures in an emergency; or at the request of a parent or the district after
restrictive procedures are used. The district must review use of restrictive procedures at a
child's annual individualized education program meeting when the child's individualized
education program provides for using restrictive procedures in an emergency.
(d) If the individualized education program team under paragraph (c) determines
that existing interventions and supports are ineffective in reducing the use of restrictive
procedures or the district uses restrictive procedures on a child on ten or more school days
during the same school year, the team, as appropriate, either must consult with other
professionals working with the child; consult with experts in behavior analysis, mental
health, communication, or autism; consult with culturally competent professionals;
review existing evaluations, resources, and successful strategies; or consider whether to
reevaluate the child.
(e) At the individualized education program meeting under paragraph (c), the team
must review any known medical or psychological limitations, including any medical
information the parent provides voluntarily, that contraindicate the use of a restrictive
procedure, consider whether to prohibit that restrictive procedure, and document any
prohibition in the individualized education program or behavior intervention plan.
(d) (f) An individualized education program team may plan for using restrictive
procedures and may include these procedures in a child's individualized education
program or behavior intervention plan; however, the restrictive procedures may be used
only in response to behavior that constitutes an emergency, consistent with this section.
The individualized education program or behavior intervention plan shall indicate how the
parent wants to be notified when a restrictive procedure is used.
    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
used only in an emergency. A school that uses physical holding or seclusion shall meet the
following requirements:
(1) the physical holding or seclusion must be is the least intrusive intervention
that effectively responds to the emergency;
(2) physical holding or seclusion is not used to discipline a noncompliant child;
(3) physical holding or seclusion must end ends when the threat of harm ends and
the staff determines that the child can safely return to the classroom or activity;
(3) (4) staff must directly observe observes the child while physical holding or
seclusion is being used;
(4) (5) each time physical holding or seclusion is used, the staff person who
implements or oversees the physical holding or seclusion shall document documents, as
soon as possible after the incident concludes, the following information:
(i) a description of the incident that led to the physical holding or seclusion;
(ii) why a less restrictive measure failed or was determined by staff to be
inappropriate or impractical;
(iii) the time the physical holding or seclusion began and the time the child was
released; and
(iv) a brief record of the child's behavioral and physical status;
(5) (6) the room used for seclusion must:
(i) be at least six feet by five feet;
(ii) be well lit, well ventilated, adequately heated, and clean;
(iii) have a window that allows staff to directly observe a child in seclusion;
(iv) have tamperproof fixtures, electrical switches located immediately outside the
door, and secure ceilings;
(v) have doors that open out and are unlocked, locked with keyless locks that
have immediate release mechanisms, or locked with locks that have immediate release
mechanisms connected with a fire and emergency system; and
(vi) not contain objects that a child may use to injure the child or others;
(6) (7) before using a room for seclusion, a school must:
(i) receive written notice from local authorities that the room and the locking
mechanisms comply with applicable building, fire, and safety codes; and
(ii) register the room with the commissioner, who may view that room; and
(7) (8) until August 1, 2013 2015, a school district may use prone restraints with
children age five or older under the following conditions if:
(i) a the district has provided to the department a list of staff who have had specific
training on the use of prone restraints;
(ii) a the district provides information on the type of training that was provided
and by whom;
(iii) prone restraints may only be used by staff who have received specific training
use prone restraints;
(iv) each incident of the use of prone restraints is reported to the department within
five working days on a form provided by the department; and
(v) a the district, prior to before using prone restraints, must review any known
medical or psychological limitations that contraindicate the use of prone restraints.
The department will report back to the chairs and ranking minority members of the
legislative committees with primary jurisdiction over education policy by February
1, 2013, on the use of prone restraints in the schools. Consistent with item (iv), The
department must collect data on districts' use of prone restraints and publish the data in a
readily accessible format on the department's Web site on a quarterly basis.
(b) The department must develop a statewide plan by February 1, 2013, to reduce
districts' use of restrictive procedures that includes By March 1, 2014, stakeholders must
recommend to the commissioner specific and measurable implementation and outcome
goals for reducing the use of restrictive procedures and the commissioner must submit to
the legislature a report on districts' progress in reducing the use of restrictive procedures
that recommends how to further reduce these procedures and eliminate the use of prone
restraints. The statewide plan includes the following components: measurable goals; the
resources, training, technical assistance, mental health services, and collaborative efforts
needed to significantly reduce districts' use of prone restraints; and recommendations
to clarify and improve the law governing districts' use of restrictive procedures. The
department must convene commissioner must consult with interested stakeholders to
develop the statewide plan and identify the need for technical assistance when preparing
the report, including representatives of advocacy organizations, special education
directors, intermediate school districts, school boards, day treatment providers, county
social services, state human services department staff, mental health professionals, and
autism experts. To assist the department and stakeholders under this paragraph, school
districts must report summary data to the department by July 1, 2012, on districts' use of
restrictive procedures during the 2011-2012 school year, including data on the number
of incidents involving restrictive procedures, the total number of students on which
restrictive procedures were used, the number of resulting injuries, relevant demographic
data on the students and school, and other relevant data collected by the district. By June
30 each year, districts must report summary data on their use of restrictive procedures to
the department, in a form and manner determined by the commissioner.
    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
(1) engaging in conduct prohibited under section 121A.58;
(2) requiring a child to assume and maintain a specified physical position, activity,
or posture that induces physical pain;
(3) totally or partially restricting a child's senses as punishment;
(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
substance, or spray as punishment;
(5) denying or restricting a child's access to equipment and devices such as walkers,
wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
except when temporarily removing the equipment or device is needed to prevent injury
to the child or others or serious damage to the equipment or device, in which case the
equipment or device shall be returned to the child as soon as possible;
(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
physical abuse under section 626.556;
(7) withholding regularly scheduled meals or water;
(8) denying access to bathroom facilities; and
(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
impairs a child's ability to communicate distress, places pressure or weight on a child's
head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
straddling a child's torso.
    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1,
staff who use restrictive procedures shall complete training in the following skills and
knowledge areas:
(1) positive behavioral interventions;
(2) communicative intent of behaviors;
(3) relationship building;
(4) alternatives to restrictive procedures, including techniques to identify events and
environmental factors that may escalate behavior;
(5) de-escalation methods;
(6) standards for using restrictive procedures only in an emergency;
(7) obtaining emergency medical assistance;
(8) the physiological and psychological impact of physical holding and seclusion;
(9) monitoring and responding to a child's physical signs of distress when physical
holding is being used; and
(10) recognizing the symptoms of and interventions that may cause positional
asphyxia when physical holding is used.;
(11) district policies and procedures for timely reporting and documentation of each
incident involving use of a restricted procedure; and
(12) schoolwide programs on positive behavior strategies.
(b) The commissioner, after consulting with the commissioner of human services,
must develop and maintain a list of training programs that satisfy the requirements of
paragraph (a). The commissioner also must develop and maintain a list of experts to
help individualized education program teams reduce the use of restrictive procedures.
The district shall maintain records of staff who have been trained and the organization
or professional that conducted the training. The district may collaborate with children's
community mental health providers to coordinate trainings.
    Subd. 6. Behavior supports. School districts are encouraged to establish effective
schoolwide systems of positive behavior interventions and supports. Nothing in this
section or section 125A.0941 precludes the use of reasonable force under sections
121A.582 ; 609.06, subdivision 1; and 609.379.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2012, section 125A.27, subdivision 8, is amended to read:
    Subd. 8. Eligibility for Part C. "Eligibility for Part C" means eligibility for
early childhood special education infant and toddler intervention services under section
125A.02 and Minnesota Rules.

    Sec. 5. Minnesota Statutes 2012, section 125A.27, subdivision 11, is amended to read:
    Subd. 11. Interagency child find systems. "Interagency child find systems" means
activities developed on an interagency basis with the involvement of interagency early
intervention committees and other relevant community groups, including primary referral
sources included in Code of Federal Regulations, title 34, section 303.303(c), using
rigorous standards to actively seek out, identify, and refer infants and young children,
with, or at risk of, disabilities, and their families, including a child to reduce the need for
future services. The child find system must mandate referrals for a child under the age of
three who: (1) is involved in the subject of a substantiated case of abuse or neglect, or
(2) is identified as directly affected by illegal substance abuse, or withdrawal symptoms
resulting from prenatal drug exposure, to reduce the need for future services. The referral
procedures must specify that a referral must occur within seven calendar days from the
date of identification.

    Sec. 6. Minnesota Statutes 2012, section 125A.27, subdivision 14, is amended to read:
    Subd. 14. Parent. "Parent" means the biological parent with parental rights,
adoptive parent, legal guardian, or surrogate parent "parent" as defined by Code of Federal
Regulations, title 34, section 303.27, or a surrogate parent appointed in accordance with
Code of Federal Regulations, title 34, section 303.422, or United States Code, title 20,
section 1439(a)(5).

    Sec. 7. Minnesota Statutes 2012, section 125A.28, is amended to read:
125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
An Interagency Coordinating Council of at least 17, but not more than 25 members
is established, in compliance with Public Law 108-446, section 641. The members must
be appointed by the governor and reasonably represent the population of Minnesota.
Council members must elect the council chair, who may not be a representative of the
Department of Education. The representative of the commissioner may not serve as the
chair. The council must be composed of at least five parents, including persons of color,
of children with disabilities under age 12, including at least three parents of a child
with a disability under age seven, five representatives of public or private providers
of services for children with disabilities under age five, including a special education
director, county social service director, local Head Start director, and a community health
services or public health nursing administrator, one member of the senate, one member of
the house of representatives, one representative of teacher preparation programs in early
childhood-special education or other preparation programs in early childhood intervention,
at least one representative of advocacy organizations for children with disabilities under
age five, one physician who cares for young children with special health care needs, one
representative each from the commissioners of commerce, education, health, human
services, a representative from the state agency responsible for child care, foster care,
mental health, homeless coordinator of education of homeless children and youth, and a
representative from Indian health services or a tribal council. Section 15.059, subdivisions
2 to 5, apply to the council. The council must meet at least quarterly.
The council must address methods of implementing the state policy of developing
and implementing comprehensive, coordinated, multidisciplinary interagency programs of
early intervention services for children with disabilities and their families.
The duties of the council include recommending policies to ensure a comprehensive
and coordinated system of all state and local agency services for children under age five
with disabilities and their families. The policies must address how to incorporate each
agency's services into a unified state and local system of multidisciplinary assessment
practices, individual intervention plans, comprehensive systems to find children in need of
services, methods to improve public awareness, and assistance in determining the role of
interagency early intervention committees.
On the date that Minnesota Part C Annual Performance Report is submitted to the
federal Office of Special Education, the council must recommend to the governor and the
commissioners of education, health, human services, commerce, and employment and
economic development policies for a comprehensive and coordinated system.
On an annual basis, the council must prepare and submit an annual report to the
governor and the secretary of the federal Department of Education on the status of early
intervention services and programs for infants and toddlers with disabilities and their
families under the Individuals with Disabilities Education Act, United States Code, title
20, sections 1471 to 1485 (Part C, Public Law 102-119), as operated in Minnesota. The
Minnesota Part C annual performance report may serve as the report.
Notwithstanding any other law to the contrary, the State Interagency Coordinating
Council expires on June 30, 2014 does not expire unless federal law no longer requires
the existence of the council or committee.

    Sec. 8. Minnesota Statutes 2012, section 125A.29, is amended to read:
125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL
BOARDS.
(a) It is the joint responsibility of county boards and school boards to coordinate,
provide, and pay for appropriate services, and to facilitate payment for services from public
and private sources. Appropriate services for children eligible under section 125A.02 must
be determined in consultation with parents, physicians, and other educational, medical,
health, and human services providers. The services provided must be in conformity with:
(1) an IFSP for each eligible infant and toddler from birth through age two and
the infant's or toddler's family including:
(i) American Indian infants and toddlers with disabilities and their families residing
on a reservation geographically located in the state;
(ii) infants and toddlers with disabilities who are homeless children and their
families; and
(iii) infants and toddlers with disabilities who are wards of the state; or
(2) an individualized education program (IEP) or individual service plan (ISP) for
each eligible child ages three through four.
(b) Appropriate early intervention services include family education and
counseling, home visits, occupational and physical therapy, speech pathology, audiology,
psychological services, special instruction, nursing, respite, nutrition, assistive technology,
transportation and related costs, social work, vision services, case management services
provided in conformity with an IFSP that are designed to meet the special developmental
needs of an eligible child and the needs of the child's family related to enhancing the
child's development and that are selected in collaboration with the parent. These services
include core early intervention services and additional early intervention services listed in
this section and infant and toddler intervention services defined under United States Code,
title 20, sections 1431 to 1444, and Code of Federal Regulations, title 34, section 303,
including service coordination under section 125A.33, medical services for diagnostic and
evaluation purposes, early identification, and screening, assessment, and health services
necessary to enable children with disabilities to benefit from early intervention services.
(c) School and county boards shall coordinate early intervention services. In the
absence of agreements established according to section 125A.39, service responsibilities
for children birth through age two are as follows:
(1) school boards must provide, pay for, and facilitate payment for special education
and related services required under sections 125A.03 and 125A.06;
(2) county boards must provide, pay for, and facilitate payment for noneducational
services of social work, psychology, transportation and related costs, nursing, respite, and
nutrition services not required under clause (1).
(d) School and county boards may develop an interagency agreement according
to section 125A.39 to establish agency responsibility that assures early intervention
services are coordinated, provided, paid for, and that payment is facilitated from public
and private sources.
(e) County and school boards must jointly determine the primary agency in this
cooperative effort and must notify the commissioner of the state lead agency of their
decision.

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

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

    Sec. 11. Minnesota Statutes 2012, section 125A.33, is amended to read:
125A.33 SERVICE COORDINATION.
(a) The team responsible for the initial evaluation and the child- and family-directed
assessment and for developing the IFSP under section 125A.32, if appropriate, must
select a service coordinator to carry out service coordination activities on an interagency
basis. Service coordination must actively promote a family's capacity and competency
to identify, obtain, coordinate, monitor, and evaluate resources and services to meet the
family's needs. Service coordination activities include:
(1) coordinating the performance of evaluations and assessments;
(2) facilitating and participating in the development, review, and evaluation of
individualized family service plans;
(3) assisting families in identifying available service providers;
(4) coordinating and monitoring the delivery of available services;
(5) informing families of the availability of advocacy services;
(6) coordinating with medical, health, and other service providers;
(7) facilitating the development of a transition plan to preschool, school, or if
appropriate, to other services, at least 90 days before the time the child is no longer
eligible for early infant and toddler intervention services or, at the discretion of all parties,
not more than nine months prior to the child's eligibility for preschool services third
birthday, if appropriate;
(8) managing the early intervention record and submitting additional information to
the local primary agency at the time of periodic review and annual evaluations; and
(9) notifying a local primary agency when disputes between agencies impact service
delivery required by an IFSP.
(b) A service coordinator must be knowledgeable about children and families
receiving services under this section, requirements of state and federal law, and services
available in the interagency early childhood intervention system. The IFSP must include
the name of the services coordinator from the profession most relevant to the child's or
family's needs or who is otherwise qualified to carry out all applicable responsibilities
under the Individuals with Disabilities Education Act, United States Code, title 20,
sections 1471 to 1485 (Part C, Public Law 102-119), who will be responsible for
implementing the early intervention services identified in the child's IFSP, including
transition services, and coordination with other agencies and persons.

    Sec. 12. Minnesota Statutes 2012, section 125A.35, subdivision 1, is amended to read:
    Subdivision 1. Lead agency; allocation of resources. The state lead agency must
administer the early intervention account that consists of federal allocations. The Part C
state plan must state the amount of federal resources in the early intervention account
available for use by local agencies. The state lead agency must distribute the funds to the
local primary agency designated by an Interagency Early Intervention Committee based
on a formula that includes a December 1 count of the prior year of Part C eligible children
for the following purposes:
(1) as provided in Code of Federal Regulations, title 34, part 303.425 303.430, to
arrange for payment for early intervention services not elsewhere available, or to pay for
services during the pendency of a conflict procedure, including mediation, complaints, due
process hearings, and interagency disputes; and
(2) to support interagency child find system activities.

    Sec. 13. Minnesota Statutes 2012, section 125A.36, is amended to read:
125A.36 PAYMENT FOR SERVICES.
Core early intervention services must be provided at public expense with no cost to
parents. Parents must be requested to assist in the cost of additional early intervention
services by using third-party payment sources and applying for available resources.
Payment structures permitted under state law must be used to pay for additional early
intervention services. Parental financial responsibility must be clearly defined in the
IFSP. A parent's inability to pay must not prohibit a child from receiving needed early
intervention services.

    Sec. 14. Minnesota Statutes 2012, section 125A.43, is amended to read:
125A.43 MEDIATION PROCEDURE.
(a) The commissioner, or the commissioner's designee, of the state lead agency must
use federal funds to provide mediation for the activities in paragraphs (b) and (c).
(b) A parent may resolve a dispute regarding issues in section 125A.42, paragraph
(b) , clause (5), through mediation. If the parent chooses mediation, mediation must be
voluntary on the part of the parties. The parent and the public agencies must complete the
mediation process within 30 calendar days of the date the Office of Dispute Resolution
Department of Education receives a parent's written request for mediation unless a district
declines mediation. The mediation process may not be used to delay a parent's right
to a due process hearing. The resolution of the written, signed mediation agreement is
not binding on any party both parties and is enforceable in any state court of competent
jurisdiction or in a district court of the United States.
(c) Resolution of a dispute through mediation, or other form of alternative dispute
resolution, is not limited to formal disputes arising from the objection of a parent or
guardian and is not limited to the period following a request for a due process hearing.
(d) The commissioner shall provide training and resources to school districts to
facilitate early identification of disputes and access to mediation.
(e) The local primary agency may request mediation on behalf of involved agencies
when there are disputes between agencies regarding responsibilities to coordinate, provide,
pay for, or facilitate payment for early intervention services.

    Sec. 15. RULEMAKING AUTHORITY.
The commissioner of education shall amend Minnesota Rules related to the
provision of special education under Part C of the Individuals with Disabilities Education
Act using the expedited rulemaking process in Minnesota Statutes, section 14.389. The
commissioner shall amend rules in response to new federal regulations in Code of
Federal Regulations, title 34, part 303, including definitions of and procedures related to
evaluation and assessment, including assessment of the child and family, initial evaluation
and assessment, native language, the use of informed clinical opinion as an independent
basis to establish eligibility, and transition of a toddler from Part C consistent with Code
of Federal Regulations, title 34, sections 303.24, 303.25, and 303.321.

    Sec. 16. REPORT ON HOMELESS CHILDREN SERVED.
The commissioner of education must collect statistics on the number of homeless
children who have received Part C services and must annually report those results to
the legislature by July 1.
EFFECTIVE DATE.This section is effective July 1, 2013.

    Sec. 17. REPEALER.
Minnesota Statutes 2012, section 125A.35, subdivisions 4 and 5, are repealed.

ARTICLE 6

FACILITIES AND TECHNOLOGY

    Section 1. Minnesota Statutes 2012, section 124D.095, subdivision 10, is amended to
read:
    Subd. 10. Online and Digital Learning Advisory Council. (a) An Online and
Digital Learning Advisory Council is established. The term for each council member shall
be three years. The advisory council is composed of 12 14 members from throughout the
state who have demonstrated experience with or interest in online learning. Two members
of the council must represent technology business. The remaining membership must
represent the following interests:
(1) superintendents;
(2) special education specialists;
(3) technology directors;
(4) teachers;
(5) rural, urban, and suburban school districts;
(6) supplemental programs;
(7) full-time programs;
(8) consortia;
(9) charter schools;
(10) Board of Teaching-approved teacher preparation programs; and
(11) parents.
The members of the council shall be appointed by the commissioner.
(b) The advisory council shall bring to the attention of the commissioner and the
legislature any matters related to online and digital learning and. The advisory council
shall provide input to the department and the legislature in online learning matters related,
but not restricted, to:
(1) quality assurance;
(2) teacher qualifications;
(3) program approval;
(4) special education;
(5) attendance;
(6) program design and requirements; and
(7) fair and equal access to programs.
(b) By June 30, 2013, (c) The Online Learning advisory council with the support of
the Minnesota Department of Education and the Minnesota Learning Commons shall:
(1) oversee the development and maintenance of a catalog of publicly available
digital learning content currently aligned to Minnesota academic standards to include:
(i) indexing of Minnesota academic standards with which curriculum is aligned;
(ii) a method for student and teacher users to provide evaluative feedback; and
(iii) a plan for ongoing maintenance; and
(2) recommend methods for including student performance data on the digital
learning content within the catalog.
(d) The advisory council shall also consider and provide input to the department and
legislature on digital learning matters including, but not limited to:
(1) methods to maximize the effectiveness of technology and related instructional
strategies in teaching and learning to improve student outcomes and identify methods
for measuring the impact of using various forms of digital learning in and outside of
the classroom;
(2) the effective use of technology to advance a student's ability to learn 21st
century skills and knowledge and to involve parents in an education system that is more
transparent in terms of outcomes and processes by providing toolkits to help parents,
students, and schools make good decisions in the environment of choice;
(3) the use of technology for schools to personalize or differentiate learning to
the needs, abilities, and learning styles of each student and guide them towards greater
ownership of their learning, so that all students are digital learners and have access to
high-quality digital curriculum in every class and level;
(4) methods to prepare current and future educators, education leaders, and staff,
to provide professional development and collaboration around best practices to use, and
to evaluate the effectiveness of digital tools and instructional strategies to personalize or
differentiate education and focus on competency-based learning and advancement, so that
all teachers have a digital presence and use high-quality digital curriculum;
(5) methods to support collaborative efforts to leverage resources among districts or
at regional levels to provide digital resources, content, and curriculum;
(6) the barriers to improving the use of technology in the classroom, and methods
to ensure that each student has access to a digital device and high-speed Internet at
school and at home; and
(7) the current disparities in digital education across the state.
(e) The advisory council shall make policy recommendations to the commissioner
and committees of the legislature having jurisdiction over kindergarten through grade 12
education annually by December 15 of each year, including implementation plans based
on recommendations from previous councils and task forces related to online and digital
learning.
(c) (f) The Online and Digital Learning Advisory Council under this subdivision
expires June 30, 2013 2016.

    Sec. 2. SCHOOL FACILITIES FINANCING WORK GROUP.
The commissioner of education must convene a working group to develop
recommendations for reforming the financing of prekindergarten through grade 12
education facilities to create adequate, equitable, and sustainable financing of public
school facilities throughout the state. Membership on the working group must include
representatives of school superintendents, business managers, school facilities directors,
and school boards. The scope of the working group recommendations must include
funding options for facilities projects currently financed with debt service, alternative
facilities, deferred maintenance, health and safety, building lease, and operating capital
revenues. The commissioner, on behalf of the working group, must submit a report to the
chairs and ranking minority members of the legislative committees and divisions with
primary jurisdiction over kindergarten through grade 12 education finance by February 1,
2014, recommending how best to allocate funds for school facilities.

ARTICLE 7

LIBRARIES

    Section 1. Minnesota Statutes 2012, section 134.32, is amended to read:
134.32 GRANT AUTHORIZATION; TYPES OF GRANTS AND AID.
    Subdivision 1. Provision of grants. The department shall provide the grants and aid
specified in this section from any available state, federal, or other funds.
    Subd. 3. Regional library basic system support grants aid. It shall provide
regional library basic system support grants aid to regional public library systems which
meet the requirements of section 134.34, to assist those systems in providing basic system
services.
    Subd. 4. Special project grants. It may provide special project grants to assist
innovative and experimental library programs including, but not limited to, special
services for American Indians and the Spanish-speaking, delivery of library materials to
homebound persons, other extensions of library services to persons without access to
libraries and projects to strengthen and improve library services.
    Subd. 5. Interlibrary exchange grants. It may provide grants for interlibrary
exchange of books, periodicals, resource material, reference information and the expenses
incident to the sharing of library resources and materials, including planning, development
and operating grants to multicounty, multitype library systems.
    Subd. 6. Library service grants. It may provide grants for the improvement of
library services at welfare and corrections institutions and for library service for the blind
and physically disabled.
    Subd. 7. Construction or remodeling grants. It may provide grants for
construction or remodeling of library facilities from any state and federal funds specifically
appropriated for this purpose.
    Subd. 8. Rulemaking. (a) The commissioner shall promulgate rules consistent
with sections 134.32 to 134.355 governing:
(1) applications for these grants and aid;
(2) computation formulas for determining the amounts of establishment grants and
regional library basic system support grants aid; and
(3) eligibility criteria for grants and aid.
(b) To the extent allowed under federal law, a construction grant applicant, in
addition to the points received under Minnesota Rules, part 3530.2632, shall receive an
additional five points if the construction grant is for a project combining public library
services and school district library services at a single location.

    Sec. 2. Minnesota Statutes 2012, section 134.34, is amended to read:
134.34 REGIONAL LIBRARY BASIC SYSTEM SUPPORT GRANTS AID;
REQUIREMENTS.
    Subdivision 1. Local support levels. (a) A Regional library basic system support
grant aid shall be made provided to any regional public library system where there are at
least three participating counties and where each participating city and county is providing
for public library service support the lesser of (a) an amount equivalent to .82 percent of
the average of the adjusted net tax capacity of the taxable property of that city or county,
as determined by the commissioner of revenue for the second, third, and fourth year
preceding that calendar year or (b) a per capita amount calculated under the provisions of
this subdivision. The per capita amount is established for calendar year 1993 as $7.62.
In succeeding calendar years, the per capita amount shall be increased by a percentage
equal to one-half of the percentage by which the total state adjusted net tax capacity of
property as determined by the commissioner of revenue for the second year preceding
that calendar year increases over that total adjusted net tax capacity for the third year
preceding that calendar year.
(b) The minimum level of support specified under this subdivision or subdivision 4
shall be certified annually to the participating cities and counties by the Department of
Education. If a city or county chooses to reduce its local support in accordance with
subdivision 4, paragraph (b) or (c), it shall notify its regional public library system. The
regional public library system shall notify the Department of Education that a revised
certification is required. The revised minimum level of support shall be certified to the
city or county by the Department of Education.
(c) A city which is a part of a regional public library system shall not be required to
provide this level of support if the property of that city is already taxable by the county for
the support of that regional public library system. In no event shall the Department of
Education require any city or county to provide a higher level of support than the level
of support specified in this section in order for a system to qualify for a regional library
basic system support grant aid. This section shall not be construed to prohibit a city or
county from providing a higher level of support for public libraries than the level of
support specified in this section.
    Subd. 3. Regional designation. Regional library basic system support grants aid
shall be made provided only to those regional public library systems officially designated
by the commissioner of education as the appropriate agency to strengthen, improve and
promote public library services in the participating areas. The commissioner of education
shall designate no more than one such regional public library system located entirely within
any single development region existing under sections 462.381 to 462.398 or chapter 473.
    Subd. 4. Limitation. (a) For calendar year 2010 and later, a regional library basic
system support grant aid shall not be made provided to a regional public library system
for a participating city or county which decreases the dollar amount provided for support
for operating purposes of public library service below the amount provided by it for the
second, or third preceding year, whichever is less. For purposes of this subdivision and
subdivision 1, any funds provided under section 473.757, subdivision 2, for extending
library hours of operation shall not be considered amounts provided by a city or county for
support for operating purposes of public library service. This subdivision shall not apply
to participating cities or counties where the adjusted net tax capacity of that city or county
has decreased, if the dollar amount of the reduction in support is not greater than the dollar
amount by which support would be decreased if the reduction in support were made in
direct proportion to the decrease in adjusted net tax capacity.
(b) For calendar year 2009 and later, in any calendar year in which a city's or
county's aid under sections 477A.011 to 477A.014 or credit reimbursement under section
273.1384 is reduced after the city or county has certified its levy payable in that year, it
may reduce its local support by the lesser of:
(1) ten percent; or
(2) a percent equal to the ratio of the aid and credit reimbursement reductions to the
city's or county's revenue base, based on aids certified for the current calendar year. For
calendar year 2009 only, the reduction under this paragraph shall be based on 2008 aid and
credit reimbursement reductions under the December 2008 unallotment, as well as any
aid and credit reimbursement reductions in calendar year 2009. For pay 2009 only, the
commissioner of revenue will calculate the reductions under this paragraph and certify
them to the commissioner of education within 15 days of May 17, 2009.
(c) For taxes payable in 2010 and later, in any payable year in which the total
amounts certified for city or county aids under sections 477A.011 to 477A.014 are less
than the total amounts paid under those sections in the previous calendar year, a city or
county may reduce its local support by the lesser of:
(1) ten percent; or
(2) a percent equal to the ratio of:
(i) the difference between (A) the sum of the aid it was paid under sections
477A.011 to 477A.014 and the credit reimbursement it received under section 273.1384
in the previous calendar year and (B) the sum of the aid it is certified to be paid in the
current calendar year under sections 477A.011 to 477A.014 and the credit reimbursement
estimated to be paid under section 273.1384; to
(ii) its revenue base for the previous year, based on aids actually paid in the previous
calendar year. The commissioner of revenue shall calculate the percent aid cut for each
county and city under this paragraph and certify the percentage cuts to the commissioner
of education by August 1 of the year prior to the year in which the reduced aids and
credit reimbursements are to be paid. The percentage of reduction related to reductions
to credit reimbursements under section 273.1384 shall be based on the best estimation
available as of July 30.
(d) Notwithstanding paragraph (a), (b), or (c), no city or county shall reduce its
support for public libraries below the minimum level specified in subdivision 1.
(e) For purposes of this subdivision, "revenue base" means the sum of:
(1) its levy for taxes payable in the current calendar year, including the levy on
the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a),
or 473F.08, subdivision 3, paragraph (a);
(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and
(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.
    Subd. 7. Proposed budget. In addition to the annual report required in section
134.13 , a regional public system that receives a basic system support grant aid under this
section must provide each participating county and city with its proposed budget for
the next year.

    Sec. 3. Minnesota Statutes 2012, section 134.351, subdivision 3, is amended to read:
    Subd. 3. Agreement. In order for a multicounty, multitype library system to qualify
for a planning, development or operating grant aid pursuant to sections 134.353 and
134.354 , each participating library in the system shall adopt an organizational agreement
providing for the following:
(a) Sharing of resources among all participating libraries;
(b) Long-range planning for cooperative programs;
(c) The development of a delivery system for services and programs;
(d) The development of a bibliographic database; and
(e) A communications system among all cooperating libraries.

    Sec. 4. Minnesota Statutes 2012, section 134.351, subdivision 7, is amended to read:
    Subd. 7. Reports. Each multicounty, multitype system receiving a grant aid
pursuant to section 134.353 or 134.354 shall provide an annual progress report to the
Department of Education.

    Sec. 5. Minnesota Statutes 2012, section 134.353, is amended to read:
134.353 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM
DEVELOPMENT GRANT AID.
The commissioner of education may provide development grants aid to multicounty,
multitype library systems. In awarding a development grant aid, the commissioner shall
consider the extra costs incurred in systems located in sparsely populated and large
geographic regions.

    Sec. 6. Minnesota Statutes 2012, section 134.354, is amended to read:
134.354 MULTICOUNTY, MULTITYPE LIBRARY SYSTEM OPERATING
GRANT AID.
The commissioner of education may provide operating grants aid to multicounty,
multitype library systems. In awarding an operating grant aid, the commissioner shall
consider the extra costs incurred in systems located in sparsely populated and large
geographic areas.

    Sec. 7. Minnesota Statutes 2012, section 134.355, subdivision 1, is amended to read:
    Subdivision 1. Appropriations. Basic system support grants aid and regional library
telecommunications aid provide the appropriations for the basic regional library system.

    Sec. 8. Minnesota Statutes 2012, section 134.355, subdivision 2, is amended to read:
    Subd. 2. Grant application. Any regional public library system which qualifies
according to the provisions of section 134.34 may apply for an annual grant aid for
regional library basic system support. Regional public library districts under section
134.201 may not compensate board members using grant aid funds. The amount of each
grant aid for each fiscal year shall be calculated as provided in this section.

    Sec. 9. Minnesota Statutes 2012, section 134.355, subdivision 3, is amended to read:
    Subd. 3. Per capita distribution. Fifty-seven and one-half percent of the available
grant aid funds shall be distributed to provide all qualifying systems an equal amount
per capita. Each system's allocation pursuant to this subdivision shall be based on the
population it serves.

    Sec. 10. Minnesota Statutes 2012, section 134.355, subdivision 4, is amended to read:
    Subd. 4. Per square mile distribution. Twelve and one-half percent of the
available grant aid funds shall be distributed to provide all qualifying systems an equal
amount per square mile. Each system's allocation pursuant to this subdivision shall be
based on the area it serves.

    Sec. 11. Minnesota Statutes 2012, section 134.355, subdivision 5, is amended to read:
    Subd. 5. Base grant aid distribution. Five percent of the available grant aid funds
shall be paid to each system as a base grant aid for basic system services.

    Sec. 12. Minnesota Statutes 2012, section 134.355, subdivision 6, is amended to read:
    Subd. 6. Adjusted net tax capacity per capita distribution. Twenty-five percent
of the available grant aid funds shall be distributed to regional public library systems based
upon the adjusted net tax capacity per capita for each member county or participating
portion of a county as calculated for the second year preceding the fiscal year for which
the grant aid is made provided. Each system's entitlement shall be calculated as follows:
(a) Multiply the adjusted net tax capacity per capita for each county or participating
portion of a county by .0082.
(b) Add sufficient grant aid funds that are available under this subdivision to raise
the amount of the county or participating portion of a county with the lowest value
calculated according to paragraph (a) to the amount of the county or participating portion
of a county with the next highest value calculated according to paragraph (a). Multiply the
amount of the additional grant aid funds by the population of the county or participating
portion of a county.
(c) Continue the process described in paragraph (b) by adding sufficient grant aid
funds that are available under this subdivision to the amount of a county or participating
portion of a county with the next highest value calculated in paragraph (a) to raise it and
the amount of counties and participating portions of counties with lower values calculated
in paragraph (a) up to the amount of the county or participating portion of a county
with the next highest value, until reaching an amount where funds available under this
subdivision are no longer sufficient to raise the amount of a county or participating portion
of a county and the amount of counties and participating portions of counties with lower
values up to the amount of the next highest county or participating portion of a county.
(d) If the point is reached using the process in paragraphs (b) and (c) at which the
remaining grant aid funds under this subdivision are not adequate for raising the amount of
a county or participating portion of a county and all counties and participating portions of
counties with amounts of lower value to the amount of the county or participating portion
of a county with the next highest value, those funds are to be divided on a per capita basis
for all counties or participating portions of counties that received grant aid funds under
the calculation in paragraphs (b) and (c).

    Sec. 13. Minnesota Statutes 2012, section 134.36, is amended to read:
134.36 RULES.
The commissioner of education shall promulgate rules as necessary for
implementation of library grant and aid programs.

    Sec. 14. REVISOR'S INSTRUCTION.
In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall substitute
the term "Division of State Library Services" for "Library Development and Services,"
"Office of Library Development and Services," or "LDS" where "LDS" stands for "Library
Development and Services." The revisor shall also make grammatical changes related
to the changes in terms.

ARTICLE 8

EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND
LIFELONG LEARNING

    Section 1. Minnesota Statutes 2012, section 124D.52, is amended by adding a
subdivision to read:
    Subd. 8. Standard high school diploma for adults. (a) The commissioner shall
adopt rules for providing a standard adult high school diploma to persons who:
(1) are not eligible for kindergarten through grade 12 services;
(2) do not have a high school diploma; and
(3) successfully complete an adult basic education program of instruction approved
by the commissioner of education necessary to earn an adult high school diploma.
(b) Persons participating in an approved adult basic education program of instruction
must demonstrate proficiency in a standard set of competencies that reflect the knowledge
and skills sufficient to ensure that postsecondary programs and institutions and potential
employers regard persons with a standard high school diploma and persons with a standard
adult high school diploma as equally well prepared and qualified graduates. Approved
adult basic education programs of instruction under this subdivision must issue a standard
adult high school diploma to persons who successfully demonstrate proficiency in the
competencies, knowledge, and skills required by the program.
EFFECTIVE DATE.This section is effective July 1, 2014.

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

$

2,000,000

.....

2013

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

    Sec. 3. STANDARD ADULT HIGH SCHOOL DIPLOMA ADVISORY TASK
FORCE.
    Subdivision 1. Establishment. The commissioner of education shall appoint a
nine-member advisory task force to recommend programmatic requirements for adult
basic education programs of instruction leading to a standard adult high school diploma
under Minnesota Statutes, section 124D.52, subdivision 8.
    Subd. 2. Membership. The commissioner of education must appoint representatives
from the following organizations to the task force by July 1, 2013:
(1) one employee of the Department of Education with expertise in adult basic
education;
(2) five administrators and secondary teachers with expertise in development of
education curriculum from local adult basic education programs located in rural, suburban,
and urban areas of the state, at least one of whom represents the Literacy Action network;
(3) one employee of the Minnesota State Colleges and Universities with expertise
in adult basic education;
(4) one employee of the Department of Employment and Economic Development
with expertise in adult basic education and employment; and
(5) one member of the Minnesota Chamber of Commerce familiar with adult basic
education programs under Minnesota Statutes, section 124D.52.
    Subd. 3. Duties. The duties of the task force shall include:
(1) reviewing "Minnesota Adult Secondary Credential: a Student Strategy for
Workforce Readiness and Individual Prosperity," a report submitted in 2012 by the
Minnesota Adult Secondary Task Force, and other relevant materials; and
(2) developing specific criteria to be used in awarding the new adult diploma.
    Subd. 4. First meeting. The commissioner of education must convene the first
meeting of the task force by August 1, 2013.
    Subd. 5. Chair. The commissioner shall appoint a chair.
    Subd. 6. Compensation. Task force members are not eligible for compensation or
reimbursement for expenses related to task force activities.
    Subd. 7. Assistance. The commissioner, upon request, must provide technical
assistance to task force members.
    Subd. 8. Report. By February 1, 2014, the task force must submit its
recommendations to the commissioner of education for providing a standard adult high
school diploma to persons who are not eligible for kindergarten through grade 12 services,
who do not have a high school diploma, and who successfully complete an approved adult
basic education program of instruction necessary to earn an adult high school diploma.
The commissioner must consider these recommendations when adopting rules under
Minnesota Statutes, section 124D.52, subdivision 8.
    Subd. 9. Sunset. The task force sunsets the day after submitting its report under
subdivision 8, or February 2, 2014, whichever is earlier.
EFFECTIVE DATE.This section is effective the day following final enactment.