Bill Text: MN SF1030 | 2011-2012 | 87th Legislature | Engrossed

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Bill Title: Omnibus early childhood through grade 12 education policy provisions modifications and appropriations

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-04-04 - HF substituted on Special Orders [HF934] [SF1030 Detail]

Download: Minnesota-2011-SF1030-Engrossed.html

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A bill for an act

relating to education; providing for general education; education excellence;
special programs; facilities and technology; nutrition and accounting; libraries;
early childhood education; prevention; self-sufficiency and lifelong learning;
state agencies; and forecast adjustments; appropriating money;amending
Minnesota Statutes 2010, sections 11A.16, subdivision 5; 120A.22, subdivision
11; 120A.24; 120B.023, subdivision 2; 120B.07; 121A.15, subdivision 8;
122A.09, subdivision 4; 122A.18, subdivision 2; 122A.40, subdivisions 7, 9,
11, 13, 15, 16, by adding subdivisions; 122A.41, subdivisions 4, 14, by adding
a subdivision; 123B.42, subdivision 1; 123B.44, subdivision 1; 123B.54;
123B.57; 123B.63, subdivision 3; 123B.75, subdivision 5; 123B.88, by adding a
subdivision; 123B.92, subdivision 1; 124D.09, subdivisions 5, 7, 8; 124D.10,
subdivision 3; 124D.11, subdivision 4; 124D.36; 124D.37; 124D.38, subdivision
3; 124D.385, subdivision 3; 124D.39; 124D.40; 124D.42; 124D.44; 124D.45,
subdivision 2; 124D.4531, subdivision 1; 124D.531, subdivisions 1, 4; 124D.59,
subdivision 2; 125A.69, subdivision 1; 125A.76, subdivision 1; 125A.79,
subdivision 1; 126C.10, subdivisions 2, 3, 7, 8, 8a, 14, 18; 126C.126; 126C.20;
126C.40, subdivision 1; 126C.44; 127A.441; 127A.45, subdivisions 2, 6a;
127A.46; 134.195, subdivision 8; 171.05, subdivision 2; 171.17, subdivision 1;
171.22, subdivision 1; 181A.05, subdivision 1; Laws 1999, chapter 241, article
4, section 25, by adding a subdivision; Laws 2008, chapter 363, article 2, section
46, subdivision 1, as amended; Laws 2009, chapter 96, article 1, section 24,
subdivisions 2, as amended, 3, 4, as amended, 5, as amended, 6, as amended, 7,
as amended; article 2, section 67, subdivisions 2, as amended, 3, as amended,
4, as amended, 6, 9, as amended; article 3, section 21, subdivisions 3, 4, as
amended; article 4, section 12, subdivision 6, as amended; article 5, section
13, subdivisions 2, 3, 4, as amended; article 6, section 11, subdivisions 3, as
amended, 4, as amended, 8, as amended, 12, as amended; proposing coding for
new law in Minnesota Statutes, chapters 120B; 122A; 124D; repealing Minnesota
Statutes 2010, sections 120A.26, subdivisions 1, 2; 122A.60; 122A.61; 123B.05;
124D.11, subdivision 8; 124D.38, subdivisions 4, 5, 6; 124D.86; 124D.87;
124D.871; 124D.88; 124D.892, subdivisions 1, 2; 124D.896; Minnesota Rules,
parts 3535.0100; 3535.0110; 3535.0120; 3535.0130; 3535.0140; 3535.0150;
3535.0160; 3535.0170; 3535.0180.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

    Section 1. Minnesota Statutes 2010, section 11A.16, subdivision 5, is amended to read:
    Subd. 5. Calculation of income. As of the end of each fiscal year, the state
board shall calculate the investment income earned by the permanent school fund. The
investment income earned by the fund shall equal the amount of interest on debt securities
and, dividends on equity securities, and interest earned on certified monthly earnings prior
to the transfer to the Department of Education. Gains and losses arising from the sale of
securities shall be apportioned as follows:
(a) If the sale of securities results in a net gain during a fiscal year, the gain shall
be apportioned in equal installments over the next ten fiscal years to offset net losses in
those years. If any portion of an installment is not needed to recover subsequent losses
identified in paragraph (b) it shall be added to the principal of the fund.
(b) If the sale of securities results in a net loss during a fiscal year, the net loss shall
be recovered first from the gains in paragraph (a) apportioned to that fiscal year. If these
gains are insufficient, any remaining net loss shall be recovered from interest and dividend
income in equal installments over the following ten fiscal years.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2010, section 120A.22, subdivision 11, is amended to read:
    Subd. 11. Assessment of performance. (a) Each year the performance of
every child who is not enrolled in a public school must be assessed using a nationally
norm-referenced standardized achievement examination. The superintendent of the
district in which the child receives instruction and the person in charge of the child's
instruction must agree about the specific examination to be used and the administration
and location of the examination or a nationally recognized college entrance exam.
(b) To the extent the examination in paragraph (a) does not provide assessment in
all of the subject areas in subdivision 9, the parent must assess the child's performance
in the applicable subject area. This requirement applies only to a parent who provides
instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
child's performance on the total battery score is at or below the 30th percentile or one
grade level below the performance level for children of the same age, the parent must
obtain additional evaluation of the child's abilities and performance for the purpose of
determining whether the child has learning problems.
(d) (b) A child receiving instruction from a nonpublic school, person, or institution
that is accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements of this subdivision.

    Sec. 3. Minnesota Statutes 2010, section 120A.24, is amended to read:
120A.24 REPORTING.
    Subdivision 1. Reports to superintendent. (a) The person in charge of providing
instruction to a child must submit the following information to the superintendent of the
district in which the child resides the name, birth date, and address of the child; the annual
tests intended to be used under section 120A.22, subdivision 11, if required; the name of
each instructor; and evidence of compliance with one of the requirements specified in
section 120A.22, subdivision 10:
(1) by October 1 of each the first school year, the name, birth date, and address
of each child receiving instruction the child receives instruction after reaching the age
of seven;
(2) the name of each instructor and evidence of compliance with one of the
requirements specified in section 120A.22, subdivision 10;
(3) an annual instructional calendar; and
(4) for each child instructed by a parent who meets only the requirement of section
120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the
child in each subject area required in section 120A.22, subdivision 9.
(2) within 15 days of when a parent withdraws a child from public school after
age seven to homeschool;
(3) within 15 days of moving out of a district; and
(4) by October 1 after a new resident district is established.
(b) The person in charge of providing instruction to a child between the ages of
seven and 16 must submit, by October 1 of each school year, a letter of intent to continue
to provide instruction under this section for all students under the person's supervision and
any changes to the information required in paragraph (a) for each student.
(c) The superintendent may collect the required information under this section
through an electronic or Web-based format, but must not require electronic submission
of information under this section from the person in charge of reporting under this
subdivision.
    Subd. 2. Availability of documentation. (a) The person in charge of providing
instruction to a child must make available maintain documentation indicating that the
subjects required in section 120A.22, subdivision 9, are being taught and proof that the
tests under section 120A.22, subdivision 11, have been administered. This documentation
must include class schedules, copies of materials used for instruction, and descriptions of
methods used to assess student achievement.
(b) The parent of a child who enrolls full time in public school after having been
enrolled in a home school under section 120A.22, subdivision 6, must provide the
enrolling public school or school district with the child's scores on any tests administered
to the child under section 120A.22, subdivision 11, and other education-related documents
the enrolling school or district requires to determine where the child is placed in school
and what course requirements apply. This paragraph does not apply to a shared time
student who does not seek a public school diploma.
(c) The person in charge of providing instruction to a child must make the
documentation in this subdivision available to the county attorney when a case is
commenced under section 120A.26, subdivision 5; chapter 260C; or when diverted under
chapter 260A.
    Subd. 3. Exemptions. A nonpublic school, person, or other institution that is
accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements in subdivisions 1 and
subdivision 2, except for the requirement in subdivision 1, clause (1).
    Subd. 4. Reports to the state. A superintendent must make an annual report to the
commissioner of education by December 1 of the total number of nonpublic children
reported as residing in the district. The report must include the following information:
(1) the number of children residing in the district attending nonpublic schools or
receiving instruction from persons or institutions other than a public school;
(2) the number of children in clause (1) who are in compliance with section 120A.22
and this section; and
(3) the number of children in clause (1) who the superintendent has determined are
not in compliance with section 120A.22 and this section.
    Subd. 5. Obligations. Nothing in this section alleviates the obligations under
section 120A.22.

    Sec. 4. Minnesota Statutes 2010, section 120B.07, is amended to read:
120B.07 EARLY GRADUATION.
(a) Notwithstanding any law to the contrary, any secondary school student who has
completed all required courses or standards may, with the approval of the student, the
student's parent or guardian, and local school officials, graduate before the completion
of the school year.
(b) General education revenue attributable to the student must be paid as though the
student was in attendance for the entire year unless the student participates in the early
graduation achievement scholarship program under section 120B.08.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 5. [120B.08] EARLY GRADUATION ACHIEVEMENT SCHOLARSHIP
PROGRAM.
    Subdivision 1. Participation. A student who qualifies for early graduation under
section 120B.07 is eligible to participate in the early graduation achievement scholarship
program.
    Subd. 2. Scholarship amounts. A student who participates in the early graduation
achievement scholarship program is eligible for a scholarship of $2,500 if the student
qualifies for graduation one semester or two trimesters early, $5,000 if the student qualifies
for graduation two semesters or three or four trimesters early, or $7,500 if the student
qualifies for graduation three or more semesters or five or more trimesters early.
    Subd. 3. Scholarship uses. An early graduation achievement scholarship may be
used at any accredited institution of higher education.
    Subd. 4. Application. A qualifying student may apply to the commissioner of
education for an early graduation achievement scholarship. The application must be in
the form and manner specified by the commissioner. Upon verification of the qualifying
student's course completion necessary for graduation, the department must issue the
student a certificate showing the student's scholarship amount.
    Subd. 5. Enrollment verification. A student who qualifies under this section
and enrolls in an accredited higher education institution must submit a form to the
commissioner verifying the student's enrollment in the higher education institution and the
tuition charges for that semester. Within 15 days of receipt of a student's enrollment and
tuition verification form, the commissioner must issue a scholarship check to the student in
the lesser of the tuition amount for that semester or the maximum amount of the student's
early graduation achievement scholarship. A student may continue to submit enrollment
verification forms to the commissioner until the student has used the full amount of the
student's graduation achievement scholarship.
    Subd. 6. General education money transferred. The commissioner must transfer
the amounts necessary to fund the early graduation achievement scholarships from the
general education aid appropriation for that year.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 6. Minnesota Statutes 2010, section 121A.15, subdivision 8, is amended to read:
    Subd. 8. Report. The administrator or other person having general control and
supervision of the elementary or secondary school shall file a report with the commissioner
on all persons enrolled in the school. The superintendent of each district shall file a report
with the commissioner for all persons within the district receiving instruction in a home
school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving
instruction in a home school shall submit the statements as required by subdivisions 1, 2,
3, and 4, and 12 to the superintendent of the district in which the person resides by October
1 of each school year the first year of their homeschooling in Minnesota and the grade 7
year. The school report must be prepared on forms developed jointly by the commissioner
of health and the commissioner of education and be distributed to the local districts by the
commissioner of health. The school report must state the number of persons attending the
school, the number of persons who have not been immunized according to subdivision 1 or
2, and the number of persons who received an exemption under subdivision 3, clause (c)
or (d). The school report must be filed with the commissioner of education within 60 days
of the commencement of each new school term. Upon request, a district must be given a
60-day extension for filing the school report. The commissioner of education shall forward
the report, or a copy thereof, to the commissioner of health who shall provide summary
reports to boards of health as defined in section 145A.02, subdivision 2. The administrator
or other person having general control and supervision of the child care facility shall file a
report with the commissioner of human services on all persons enrolled in the child care
facility. The child care facility report must be prepared on forms developed jointly by
the commissioner of health and the commissioner of human services and be distributed
to child care facilities by the commissioner of health. The child care facility report
must state the number of persons enrolled in the facility, the number of persons with no
immunizations, the number of persons who received an exemption under subdivision 3,
clause (c) or (d), and the number of persons with partial or full immunization histories.
The child care facility report must be filed with the commissioner of human services by
November 1 of each year. The commissioner of human services shall forward the report,
or a copy thereof, to the commissioner of health who shall provide summary reports to
boards of health as defined in section 145A.02, subdivision 2. The report required by this
subdivision is not required of a family child care or group family child care facility, for
prekindergarten children enrolled in any elementary or secondary school provided services
according to sections 125A.05 and 125A.06, nor for child care facilities in which at least
75 percent of children in the facility participate on a onetime only or occasional basis to a
maximum of 45 hours per child, per month.

    Sec. 7. Minnesota Statutes 2010, section 123B.42, subdivision 1, is amended to read:
    Subdivision 1. Providing education materials and tests. The commissioner of
education shall promulgate rules under the provisions of chapter 14 requiring that in
each school year, based upon formal requests by or on behalf of nonpublic school pupils
in a nonpublic school with enrollment that exceeds ten students, the local districts or
intermediary service areas must purchase or otherwise acquire textbooks, individualized
instructional or cooperative learning materials, and standardized tests and loan or provide
them for use by children enrolled in that nonpublic school. These textbooks, individualized
instructional or cooperative learning materials, and standardized tests must be loaned or
provided free to the children for the school year for which requested. The loan or provision
of the textbooks, individualized instructional or cooperative learning materials, and
standardized tests shall be subject to rules prescribed by the commissioner of education.

    Sec. 8. Minnesota Statutes 2010, section 123B.44, subdivision 1, is amended to read:
    Subdivision 1. Provided services. The commissioner of education shall promulgate
rules under the provisions of chapter 14 requiring each district or other intermediary
service area: (a) to provide each year upon formal request by a specific date by or on
behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district or
area with a total enrollment of more than ten pupils, the same specific health services as
are provided for public school pupils by the district where the nonpublic school is located;
and (b) to provide each year upon formal request by a specific date by or on behalf of a
nonpublic school secondary pupil enrolled in a nonpublic school located in that district
or area with a total enrollment of more than ten pupils, the same specific guidance and
counseling services as are provided for public school secondary pupils by the district
where the nonpublic school is located. The district where the nonpublic school is located
must provide the necessary transportation within the district boundaries between the
nonpublic school and a public school or neutral site for nonpublic school pupils who are
provided pupil support services under this section if the district elects to provide pupil
support services at a site other than the nonpublic school. Each request for pupil support
services must set forth the guidance and counseling or health services requested by or on
behalf of all eligible nonpublic school pupils enrolled in a given nonpublic school. No
district or intermediary service area must not expend an amount for these pupil support
services which exceeds the amount allotted to it under this section.

    Sec. 9. Minnesota Statutes 2010, section 124D.59, subdivision 2, is amended to read:
    Subd. 2. Pupil of limited English proficiency. (a) "Pupil of limited English
proficiency" means a pupil in kindergarten through grade 12 who meets the following
requirements:
(1) the pupil, as declared by a parent or guardian first learned a language other than
English, comes from a home where the language usually spoken is other than English, or
usually speaks a language other than English; and
(2) the pupil is determined by developmentally appropriate measures, which might
include observations, teacher judgment, parent recommendations, or developmentally
appropriate assessment instruments, to lack the necessary English skills to participate
fully in classes taught in English.
(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
in a Minnesota public school on the dates during the previous school year when a
commissioner provided assessment that measures the pupil's emerging academic English
was administered, shall not be counted as a pupil of limited English proficiency in
calculating limited English proficiency pupil units under section 126C.05, subdivision
17 , and shall not generate state limited English proficiency aid under section 124D.65,
subdivision 5 , unless the pupil scored below the state cutoff score or is otherwise counted
as a nonproficient participant on an assessment measuring emerging academic English
provided by the commissioner during the previous school year.
(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
shall not be counted as a pupil of limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
limited English proficiency aid under section 124D.65, subdivision 5, if:
(1) the pupil is not enrolled during the current fiscal year in an educational program
for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64;
or
(2) the pupil has generated five or more years of average daily membership in
Minnesota public schools since July 1, 1996.

    Sec. 10. Minnesota Statutes 2010, section 126C.10, subdivision 2, is amended to read:
    Subd. 2. Basic revenue. The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. The formula
allowance for fiscal year 2007 is $4,974 2011 is $5,124. The formula allowance for fiscal
year 2008 is $5,074 and 2012 is $5,174. The formula allowance for fiscal year 2009
2013 and subsequent years is $5,124 $5,224.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 11. Minnesota Statutes 2010, section 126C.10, subdivision 3, is amended to read:
    Subd. 3. Compensatory education revenue. (a) For fiscal year 2011 only, the
compensatory education revenue for each building in the district equals the formula
allowance minus $415 times the compensation revenue pupil units computed according to
section 126C.05, subdivision 3. Revenue shall be paid to the district and must be allocated
according to section 126C.15, subdivision 2.
(b) For fiscal year 2011 only, when the district contracting with an alternative
program under section 124D.69 changes prior to the start of a school year, the
compensatory revenue generated by pupils attending the program shall be paid to the
district contracting with the alternative program for the current school year, and shall not
be paid to the district contracting with the alternative program for the prior school year.
(c) For fiscal year 2011 only, when the fiscal agent district for an area learning center
changes prior to the start of a school year, the compensatory revenue shall be paid to the
fiscal agent district for the current school year, and shall not be paid to the fiscal agent
district for the prior school year.
(d) The compensatory allowance for fiscal year 2012 and later is equal to the
district's total compensatory revenue for fiscal year 2011 divided by the district's 2011
adjusted marginal cost pupil units.
(e) The initial compensatory revenue for each district equals the district's
compensatory allowance times the adjusted marginal cost pupil units for the school year.
(f) Notwithstanding paragraph (e), the commissioner shall adjust each district's
compensatory revenue computed under paragraph (e), based on the district's proportionate
share of initial compensatory revenue to ensure that the total statewide entitlement for
compensatory revenue equals $414,260,438.
(g) A school district's compensatory revenue is equal to its initial compensatory
revenue under paragraph (e), as adjusted by the commissioner under paragraph (f), and
shall be paid to the district.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 12. Minnesota Statutes 2010, section 126C.10, subdivision 7, is amended to read:
    Subd. 7. Secondary sparsity revenue. (a) A district's secondary sparsity revenue
for a school year equals the sum of the results of the following calculation for each
qualifying high school in the district:
(1) the formula allowance for the school year, $5,124 multiplied by
(2) the secondary average daily membership of pupils served in the high school,
multiplied by
(3) the quotient obtained by dividing 400 minus the secondary average daily
membership by 400 plus the secondary daily membership, multiplied by
(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
23 by ten.
(b) A newly formed district that is the result of districts combining under the
cooperation and combination program or consolidating under section 123A.48 must
receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
sparsity revenue the former districts had in the year prior to consolidation, increased for
any subsequent changes in the secondary sparsity formula.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 13. Minnesota Statutes 2010, section 126C.10, subdivision 8, is amended to read:
    Subd. 8. Elementary sparsity revenue. A district's elementary sparsity revenue
equals the sum of the following amounts for each qualifying elementary school in the
district:
(1) the formula allowance for the year, $5,124 multiplied by
(2) the elementary average daily membership of pupils served in the school,
multiplied by
(3) the quotient obtained by dividing 140 minus the elementary average daily
membership by 140 plus the average daily membership.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 14. Minnesota Statutes 2010, section 126C.10, subdivision 8a, is amended to read:
    Subd. 8a. Sparsity revenue for school districts that close facilities. A school
district that closes a school facility or whose sparsity revenue is reduced by a school
closure in another district is eligible for elementary and secondary sparsity revenue equal
to the greater of the amounts calculated under subdivisions 6, 7, and 8 or the total amount
of sparsity revenue for the previous fiscal year if the school board of the district has
adopted a written resolution stating that the district intends to close the school facility, but
cannot proceed with the closure without the adjustment to sparsity revenue authorized by
this subdivision. The written resolution must be filed with the commissioner of education
at least 60 days prior to the start of the fiscal year for which aid under this subdivision is
first requested. A school district whose sparsity revenue is affected by a closure in another
district is not required to adopt a written resolution under this section.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 15. Minnesota Statutes 2010, 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, copying machines,
telecommunications equipment, and other noninstructional equipment;
(19) to purchase or lease assistive technology or equipment for instructional
programs;
(20) to purchase textbooks;
(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 individual education plans; and
(iii) other classroom information management needs; and
(24) to pay personnel costs directly related to the acquisition, operation, and
maintenance of telecommunications systems, computers, related equipment, and network
and applications software.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 16. Minnesota Statutes 2010, section 126C.10, subdivision 18, is amended to read:
    Subd. 18. Transportation sparsity revenue allowance. (a) A district's
transportation sparsity allowance equals the greater of zero or the result of the following
computation:
(i) (1) multiply the formula allowance according to subdivision 2, $5,124 by .1469.;
(ii) (2) multiply the result in clause (i) (1) by the district's sparsity index raised to
the 26/100 power.;
(iii) (3) multiply the result in clause (ii) (2) by the district's density index raised to
the 13/100 power.;
(iv) (4) multiply the formula allowance according to subdivision 2, $5,124 by
.0485.; and
(v) (5) subtract the result in clause (iv) (4) from the result in clause (iii) (3).
(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
times the adjusted marginal cost pupil units.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 17. Minnesota Statutes 2010, section 126C.126, is amended to read:
126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
    (a) In order to provide additional revenue for an optional all-day kindergarten
program, a district may reallocate general education revenue attributable to 12th grade
students who have graduated early under section 120B.07 and who do not participate in
the early graduation achievement scholarship program under section 120B.08.
    (b) A school district may spend general education revenue on extended time
kindergarten and prekindergarten programs.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 18. Minnesota Statutes 2010, section 126C.20, is amended to read:
126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
There is annually appropriated from the general fund to the department the amount
necessary for general education aid under section 126C.13 and the early graduation
achievement scholarship program under section 120B.08. This amount must be reduced
by the amount of any money specifically appropriated for the same purpose in any year
from any state fund.
EFFECTIVE DATE.This section is effective for fiscal year 2012 and later.

    Sec. 19. Minnesota Statutes 2010, section 126C.44, is amended to read:
126C.44 SAFE SCHOOLS LEVY.
    (a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.
    (b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.
    (c) A school district must set aside at least $3 per adjusted marginal cost pupil
unit of the safe schools levy proceeds for the purposes authorized under paragraph (a),
clause (6). The district must annually certify either that: (1) its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this section; or (2) that the district's full-time
equivalent number of employees listed in paragraph (a), clause (6), is not less than the
number for the previous year.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 20. Minnesota Statutes 2010, section 127A.45, subdivision 6a, is amended to read:
    Subd. 6a. Cash flow adjustment. The board of directors of any charter school
serving fewer than 150 students where the percent of students eligible for special education
services equals 100 90 percent of the charter school's total enrollment may request that
the commissioner of education accelerate the school's cash flow under this section. The
commissioner must approve a properly submitted request within 30 days of its receipt.
The commissioner must accelerate the school's cash flow aid payments for all state aid
regular special education aid payments according to the schedule in the school's request
and modify the payments to the school under subdivision 3 accordingly. A school must
not receive current payments of regular special education aid exceeding 90 percent of its
estimated aid entitlement for the fiscal year. The commissioner must delay the special
education aid payments to all other school districts and charter schools in proportion
to each district or charter school's total share of regular special education aid such that
the overall aid payment savings from the aid payment shift remains unchanged for any
fiscal year.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 21. Minnesota Statutes 2010, section 171.05, subdivision 2, is amended to read:
    Subd. 2. Person less than 18 years of age. (a) Notwithstanding any provision
in subdivision 1 to the contrary, the department may issue an instruction permit to an
applicant who is 15, 16, or 17 years of age and who:
(1) has completed a course of driver education in another state, has a previously
issued valid license from another state, or is enrolled in either:
(i) a public, private, or commercial driver education program that is approved by
the commissioner of public safety and that includes classroom and behind-the-wheel
training; or
(ii) an approved behind-the-wheel driver education program when the student is
receiving full-time instruction in a home school within the meaning of sections 120A.22
and 120A.24, the student is working toward a homeschool diploma, the student's status
as a homeschool student has been certified by the superintendent of the school district in
which the student resides, and the student is taking home-classroom driver training with
classroom materials approved by the commissioner of public safety, and the student's
parent has certified the student's homeschool and home-classroom driver training status on
the form approved by the commissioner;
(2) has completed the classroom phase of instruction in the driver education program;
(3) has passed a test of the applicant's eyesight;
(4) has passed a department-administered test of the applicant's knowledge of traffic
laws;
(5) has completed the required application, which must be approved by (i) either
parent when both reside in the same household as the minor applicant or, if otherwise,
then (ii) the parent or spouse of the parent having custody or, in the event there is no
court order for custody, then (iii) the parent or spouse of the parent with whom the minor
is living or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the
minor, (v) the foster parent or the director of the transitional living program in which the
child resides or, in the event a person under the age of 18 has no living father, mother,
or guardian, or is married or otherwise legally emancipated, then (vi) the applicant's
adult spouse, adult close family member, or adult employer; provided, that the approval
required by this clause contains a verification of the age of the applicant and the identity of
the parent, guardian, adult spouse, adult close family member, or adult employer; and
(6) has paid the fee required in section 171.06, subdivision 2.
(b) For the purposes of determining compliance with the certification of paragraph
(a), clause (1), item (ii), the commissioner may request verification of a student's
homeschool status from the superintendent of the school district in which the student
resides and the superintendent shall provide that verification.
(c) The instruction permit is valid for two years from the date of application and
may be renewed upon payment of a fee equal to the fee for issuance of an instruction
permit under section 171.06, subdivision 2.

    Sec. 22. Minnesota Statutes 2010, section 171.17, subdivision 1, is amended to read:
    Subdivision 1. Offenses. (a) The department shall immediately revoke the license
of a driver upon receiving a record of the driver's conviction of:
(1) manslaughter resulting from the operation of a motor vehicle or criminal
vehicular homicide or injury under section 609.21;
(2) a violation of section 169A.20 or 609.487;
(3) a felony in the commission of which a motor vehicle was used;
(4) failure to stop and disclose identity and render aid, as required under section
169.09 , in the event of a motor vehicle accident, resulting in the death or personal injury
of another;
(5) perjury or the making of a false affidavit or statement to the department under
any law relating to the application, ownership, or operation of a motor vehicle, including
on the certification required under section 171.05, subdivision 2, paragraph (a), clause (1),
item (ii), to issue an instruction permit to a homeschool student;
(6) except as this section otherwise provides, three charges of violating within a
period of 12 months any of the provisions of chapter 169 or of the rules or municipal
ordinances enacted in conformance with chapter 169, for which the accused may be
punished upon conviction by imprisonment;
(7) two or more violations, within five years, of the misdemeanor offense described
in section 169.444, subdivision 2, paragraph (a);
(8) the gross misdemeanor offense described in section 169.444, subdivision 2,
paragraph (b);
(9) an offense in another state that, if committed in this state, would be grounds for
revoking the driver's license; or
(10) a violation of an applicable speed limit by a person driving in excess of 100
miles per hour. The person's license must be revoked for six months for a violation of
this clause, or for a longer minimum period of time applicable under section 169A.53,
169A.54 , or 171.174.
(b) The department shall immediately revoke the school bus endorsement of a driver
upon receiving a record of the driver's conviction of the misdemeanor offense described in
section 169.443, subdivision 7.

    Sec. 23. Minnesota Statutes 2010, section 171.22, subdivision 1, is amended to read:
    Subdivision 1. Violations. With regard to any driver's license, including a
commercial driver's license, it shall be unlawful for any person:
(1) to display, cause or permit to be displayed, or have in possession, any fictitious
or fraudulently altered driver's license or Minnesota identification card;
(2) to lend the person's driver's license or Minnesota identification card to any other
person or knowingly permit the use thereof by another;
(3) to display or represent as one's own any driver's license or Minnesota
identification card not issued to that person;
(4) to use a fictitious name or date of birth to any police officer or in any application
for a driver's license or Minnesota identification card, or to knowingly make a false
statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any
such application;
(5) to alter any driver's license or Minnesota identification card;
(6) to take any part of the driver's license examination for another or to permit
another to take the examination for that person;
(7) to make a counterfeit driver's license or Minnesota identification card;
(8) to use the name and date of birth of another person to any police officer for the
purpose of falsely identifying oneself to the police officer; or
(9) to display as a valid driver's license any canceled, revoked, or suspended driver's
license. A person whose driving privileges have been withdrawn may display a driver's
license only for identification purposes; or
(10) to submit a false affidavit or statement to the department on the certification
required under section 171.05, subdivision 2, paragraph (a), clause (1), item (ii), to issue
an instruction permit to a homeschool student.

    Sec. 24. Minnesota Statutes 2010, section 181A.05, subdivision 1, is amended to read:
    Subdivision 1. When issued. Any minor 14 or 15 years of age who wishes to work
on school days during school hours shall first secure an employment certificate. The
certificate shall be issued only by the school district superintendent, the superintendent's
agent, or some other person designated by the Board of Education, or by the person in
charge of providing instruction for students enrolled in nonpublic schools as defined in
section 120A.22, subdivision 4. The employment certificate shall be issued only for
a specific position with a designated employer and shall be issued only in the following
circumstances:
(1) if a minor is to be employed in an occupation not prohibited by rules promulgated
under section 181A.09 and as evidence thereof presents a signed statement from the
prospective employer; and
(2) if the parent or guardian of the minor consents to the employment; and
(3) if the issuing officer believes the minor is physically capable of handling the job
in question and further believes the best interests of the minor will be served by permitting
the minor to work.

    Sec. 25. KITTSON CENTRAL SCHOOL CLOSING.
Independent School District No. 356, Lancaster, is eligible for sparsity revenue
calculated under Minnesota Statutes, section 126C.10, subdivision 8a, for fiscal year 2012
and later, if the board has adopted a written resolution at any time prior to the start of
the 2011-2012 school year to notify the commissioner and request aid under Minnesota
Statutes, section 126C.10, subdivision 8a. For the purposes of this section, the school
district shall be eligible for aid under Minnesota Statutes, section 126C.10, subdivision
8a, as a result of the closure of the Kennedy Elementary School in Independent School
District No. 2171, Kittson Central.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 26. NORTHLAND COMMUNITY SCHOOL CLOSING.
(a) Independent School District No. 118, Northland Community Schools, is eligible
for sparsity revenue calculated under Minnesota Statutes, section 126C.10, subdivision 8a,
for fiscal year 2012 and later, if the board has adopted the required written resolution at
least 60 days prior to the start of fiscal year 2012.
(b) If the school district adopts a written resolution under paragraph (a), in fiscal
year 2012, the commissioner must provide sparsity aid to the district in an amount equal
to the amount that the district would have received under Minnesota Statutes, section
126C.10, subdivision 8a, in fiscal year 2011, if the provisions of paragraph (a) had been in
effect. The school district must recognize the sparsity aid provided under this paragraph as
revenue in fiscal year 2011.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012.

    Sec. 27. SALARY FREEZE.
    Subdivision 1. Salary increases prohibited. (a) From the effective date of this
section through June 30, 2013, a school district or charter school must not increase the
salary or wages for any employee. This section prohibits any increase including, but
not limited to, across-the-board increases; cost-of-living adjustments; increases based
on longevity; increases as a result of step and lane changes; increases in the form of
lump-sum payments; increases in employer contributions to deferred compensation plans;
or any other pay grade adjustments of any kind. For purposes of this section, salary or
wages does not include employer contributions toward the cost of medical or dental
insurance premiums, provided that employee contributions to the costs of medical or
dental insurance premiums are not decreased.
(b) This section does not prohibit an increase in the rate of salary and wages for an
employee who is promoted or transferred to a position with greater job responsibilities.
Additional educational credits or degrees or a lane change is not a promotion or a
transfer to a position with greater job responsibilities. This section also does not prohibit
a school district or charter school from implementing an alternative compensation
program approved by the commissioner of education. The commissioner may approve an
alternative compensation program at the commissioner's sole discretion.
    Subd. 2. Contracts in effect. (a) This section does not prohibit a school district
or charter school from effectuating an increase in the salary or wages for employees
if required by a contract or collective bargaining agreement that is in effect before the
effective date of this section. However, from the effective date of this section until June
30, 2013, a school district or charter school may not:
(1) enter into a new contract or collective bargaining agreement that increases salary
or wages in a manner prohibited by this section or that decreases the number of student
contact days in the 2011-2012 and 2012-2013 school years;
(2) increase the salary or wages for employees through extension of an expired
contract or collective bargaining agreement or any other arrangement or agreement.
(b) Notwithstanding any law to the contrary, if, as of the effective date of this
section, a school district or charter school has agreed to or entered into a contract or
collective bargaining agreement that is not scheduled to become effective until after
the effective date of this section, any provision of the contract or collective bargaining
agreement that violates subdivision 1, paragraph (a), is void. Any subsequent contract or
collective bargaining agreement must comply with the terms of this section.
(c) Notwithstanding any law to the contrary, upon expiration of a contract or
collective bargaining agreement, each employee must remain at the salary and wage in
effect at the time the contract expired, except as authorized in subdivision 1, paragraph
(b). Any language in a contract or collective bargaining agreement that attempts to extend
the terms of the contract or collective bargaining agreement is invalid if it seeks to extend
the application of the terms of a collective bargaining agreement past the durational limits
set forth in Minnesota Statutes, section 179A.20, subdivision 3.
    Subd. 3. Future contracts. A contract or collective bargaining agreement or
compensation plan entered into after June 30, 2013, must not provide a retroactive salary
or wage increase that applies to a period before June 30, 2013, if that increase would be
prohibited by this section if granted before June 30, 2013.
    Subd. 4. Arbitration and strikes. Notwithstanding any law to the contrary:
(1) employees of a school district or charter school may not legally strike due to a
school district or charter school's refusal to grant a salary or wage increase if the refusal is
required to comply with this section; and
(2) neither a school district or charter school nor an exclusive representative may
request interest arbitration in relation to an increase to salary or wages that is prohibited
by this section and an arbitrator may not issue an award that would increase salary or
wages in a manner prohibited by this section.
    Subd. 5. Relation to other law. This section supersedes Minnesota Statutes,
chapter 179A, and any other law to the contrary. It is not an unfair labor practice under
Minnesota Statutes, chapter 179A, for a school district or charter school to take any action
required to comply with this section.
EFFECTIVE DATE.This section is effective the day following final enactment.
Subdivisions 1, 2, 4, and 5 expire on June 30, 2013.

    Sec. 28. SCHOOL DISTRICT LEVY ADJUSTMENTS.
    Subdivision 1. Tax rate adjustment. The commissioner of education must adjust
each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
2010 as it existed prior to the passage of Senate File No. 27, or a similarly styled bill, to
the statewide total tax capacity for assessment year 2010.
    Subd. 2. Equalizing factors. The commissioner of education must adjust each
school district equalizing factor established under Minnesota Statutes, chapters 120B to
127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
assessment year 2010 as it existed prior to the passage of Senate File No. 27, or a similarly
styled bill, to the statewide total tax capacity for assessment year 2010.

    Sec. 29. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. General education aid. For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

		$	5,684,409,000	.....	2012
		$	5,815,940,000	.....	2013

The 2012 appropriation includes $1,664,876,000 for 2011 and $4,019,533,000
for 2012.
The 2013 appropriation includes $1,722,657,000 for 2012 and $4,093,283,000
for 2013.
    Subd. 3. Enrollment options transportation. For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

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

    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
127A.49:

		$	1,452,000	.....	2012
		$	1,635,000	.....	2013

The 2012 appropriation includes $346,000 for 2011 and $1,106,000 for 2012.
The 2013 appropriation includes $473,000 for 2012 and $1,162,000 for 2013.
    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
Statutes, section 123A.485:

		$	145,000	.....	2012
		$	210,000	.....	2013

The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
The 2013 appropriation includes $0 for 2012 and $210,000 for 2013.
    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

		$	15,750,000	.....	2012
		$	15,578,000	.....	2013

The 2012 appropriation includes $5,078,000 for 2011 and $10,672,000 for 2012.
The 2013 appropriation includes $4,573,000 for 2012 and $11,005,000 for 2013.
    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

		$	19,010,000	.....	2012
		$	19,030,000	.....	2013

The 2012 appropriation includes $5,895,000 for 2011 and $13,115,000 for 2012.
The 2013 appropriation includes $5,621,000 for 2012 and $13,409,000 for 2013.
    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
690, Warroad, to operate the Angle Inlet School:

		$	65,000	.....	2012
		$	65,000	.....	2013

    Subd. 9. Compensatory revenue pilot program. For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50:

		$	2,175,000	.....	2012
		$	2,175,000	.....	2013

Of this amount, $1,500,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent
School District No. 279, Osseo; $160,000 in each year is for a grant to Independent
School District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent
School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
School District No. 833, South Washington.
If a grant to a specific school district is not awarded, the commissioner may increase
the aid amounts to any of the remaining participating school districts.
This appropriation is part of the base budget for subsequent fiscal years.
    Subd. 10. Board of Teaching; licensure by portfolio. For the Board of Teaching
for licensure by portfolio:

		$	30,000	.....	2012
		$	30,000	.....	2013

This appropriation is from the educator licensure portfolio account of the special
revenue fund.

    Sec. 30. REPEALER.
(a) Minnesota Statutes 2010, sections 120A.26, subdivisions 1 and 2, are repealed.
(b) Minnesota Statutes 2010, sections 122A.60; 122A.61; and 123B.05, are repealed.
EFFECTIVE DATE.Paragraph (b) is effective July 1, 2011.

ARTICLE 2

EDUCATION EXCELLENCE

    Section 1. Minnesota Statutes 2010, section 120B.023, subdivision 2, is amended to
read:
    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.
(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.
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, or career and
technical education credit. 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.
(h) The commissioner is prohibited from adopting common core standards in the
subject and school year listed in the revision cycle in paragraphs (a) to (f).

    Sec. 2. Minnesota Statutes 2010, 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 successfully complete pass a
skills examination in reading, writing, and mathematics as a requirement for initial teacher
licensure entrance into a board-approved teacher preparation program. Such rules must
require college and universities offering a board-approved teacher preparation program to
provide offer remedial assistance to persons who did not achieve a qualifying score on
the skills examination, including those for whom English is a second language. Persons
needing remedial assistance must be successfully remediated prior to entrance into a
board-approved teacher preparation program.
(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 shall 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.
(e) The board must adopt rules requiring candidates for initial licenses to successfully
complete 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 successfully complete 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.
(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
in understanding the key warning signs of early-onset mental illness in children and
adolescents.

    Sec. 3. Minnesota Statutes 2010, 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 successfully complete 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. The board must require colleges and universities offering a board
approved teacher preparation program to provide offer 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 offer assistance in the specific
academic areas of deficiency in which the person did not achieve a qualifying score.
School districts must provide offer similar, appropriate, and timely remedial assistance
that includes a formal diagnostic component and mentoring to those persons employed by
the district who completed their teacher education program outside the state of Minnesota,
received a one-year license to teach in Minnesota and did not achieve a qualifying score
on the skills examination, including those persons for whom English is a second language.
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.
(c) A person who has completed an approved teacher preparation program and
obtained a one-year license to teach, but has not successfully completed the skills
examination, may renew the one-year license for two additional one-year periods. Each
renewal of the one-year license is contingent upon the licensee:
(1) providing evidence of participating in an approved remedial assistance program
provided by a school district or postsecondary institution that includes a formal diagnostic
component in the specific areas in which the licensee did not obtain qualifying scores; and
(2) attempting to successfully complete the skills examination during the period
of each one-year license.
(d) (c) The Board of Teaching must grant continuing licenses only to those persons
who have met board criteria for granting a continuing license, which includes successfully
completing passing the skills examination in reading, writing, and mathematics.
(e) (d) 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.

    Sec. 4. [122A.39] SALARY INCREASES BASED ON STUDENT
ACHIEVEMENT.
(a) At least 50 percent of a teacher's salary increase contained in the contract
between the school board and the exclusive representative of the teachers must be based
on the teacher's performance and evaluation using:
(1) student achievement gains as measured by statewide assessment results under
section 120B.35;
(2) if statewide assessment results are unavailable, a teacher's increase in salary must
be based on student performance on districtwide assessments of state and local standards
and teacher-developed assessments; or
(3) if no districtwide assessment results are available, a teacher's increase in salary
must be based on student performance on teacher-developed and administrator-approved
assessments of state and local standards.
(b) A school administrator shall meet with teachers at least annually under this
section to review, modify if needed, and approve local course and grade-level expectations
for student achievement and growth.
(c) The evaluation of the teacher must only include student data for students who
received instruction from the teacher for a minimum of 100 days.
EFFECTIVE DATE.This section is effective for two-year contracts with the
term beginning on July 1, 2013, and later.

    Sec. 5. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
to read:
    Subd. 3a. Qualified economic offer. (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the district's biennial percent increase in basic
revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the most
recent estimate of basic revenue for the district for the biennium that corresponds to the
prospective contract term to (2) the basic revenue for the previous biennium, the teachers
may not strike for any issue relating to the total compensation for the years covered by that
contract or submit any issue relating to the total compensation to interest arbitration under
section 179A.16. However, the teachers may strike for noneconomic issues, consistent
with section 179A.18, subdivision 2, or submit noneconomic issues to interest arbitration
under section 179A.16. District fund balances or other revenue sources or allocations are
not to be included in any calculation of compensation under this subdivision.
(b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) by January 15 of an even-numbered
calendar year, the allocation of total compensation among the teachers shall be as follows:
(1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
(2) based on the percentage increase in the general education formula allowance
for the biennium in which the contract is in effect, any remaining percentage of the total
compensation, after subtracting the value of clause (1), is for increases in teacher salary
based on first, alternative teacher pay plans under section 122A.414, second, the number
of years of service, and third, promotion and advanced education.
(c) For purposes of this subdivision, the following terms have the meanings given
them.
"Teachers" means classroom teachers licensed under section 122A.18. At a school
board's election, teachers also means school administrators licensed under section
122A.14, subdivision 1. A school board that elects to offer school administrators an
employment contract under this subdivision must make the offer consistent with section
179A.20, and the provisions of this subdivision. A school board, at its discretion, also
may elect to offer any of its nonlicensed employees an employment contract under the
terms of this subdivision.
"Total compensation" means the sum of the following cost components: (i) a school
district's total salary schedule costs excluding alternative teacher compensation under
sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
health insurance costs paid by the school district for its teachers, excluding any district
contributions to health reimbursement arrangements (HRA) or health savings accounts
(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
(v) total long-term disability costs paid by the school district for its teachers; (vi) total
dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
the school district for its teachers; and (xi) other miscellaneous costs identified by the
school district as payment for teachers' services or benefits such as special school events,
extra service duty, summer school instruction, driver's education outside the regular school
day and school year, and other direct salary payments to teachers or fringe benefit costs
paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
EFFECTIVE DATE.This section is effective for contracts ratified beginning
July 1, 2011.

    Sec. 6. Minnesota Statutes 2010, section 122A.40, subdivision 7, is amended to read:
    Subd. 7. Termination of contract after probationary period. (a) A teacher who
has completed a probationary period in any district, and who has not been discharged or
advised of a refusal to renew the teacher's contract under subdivision 5, shall elect to have
a continuing renewable five-year contract with such the district where contract terms and
conditions, including salary and salary increases, are established based either on the length
of the school calendar or an extended school calendar under section 120A.415. Thereafter,
The teacher's contract must remain in full force and effect, except as modified by mutual
consent of the board and the teacher, until terminated by a majority roll call vote of the
full membership of the board prior to April 1 July 1 upon one of the grounds specified in
subdivision 9 or July 1 upon one of the grounds specified in subdivision 9, 10, or 11, or
until the teacher is discharged pursuant to subdivision 13, or by the written resignation
of the teacher submitted prior to April 1. If an agreement as to the terms and conditions
of employment for the succeeding school year has not been adopted pursuant to the
provisions of under sections 179A.01 to 179A.25 prior to March 1, the teacher's right of
resignation is extended to the 30th calendar day following the adoption of said the contract
in compliance with under section 179A.20, subdivision 5. Such Written resignation by the
teacher is effective as of on June 30 if submitted prior to before that date and the teachers'
teacher's right of resignation for the next school year then beginning shall cease on July 15.
(b) Before a teacher's contract is terminated by the board, the board must notify the
teacher in writing and state its ground grounds for the proposed termination in reasonable
detail together with a statement that the teacher may make a written request for a hearing
before the board within 14 calendar days after receipt of such the notification, and it
shall be granted within ten calendar days with notice to the teacher of the date set for
the hearing, before final action is taken.
If the grounds are those specified in subdivision 9 or 13, the notice must also state a
teacher may request arbitration under subdivision 15. Within 14 calendar days after receipt
of this the notification, the teacher may make a written request for a hearing before the
board or an arbitrator and it shall be granted upon reasonable within 14 calendar days with
notice to the teacher of the date set for hearing or arbitration, before final action is taken.
If no hearing or arbitration is requested within such the required time period, it shall be
deemed acquiescence by the teacher to the board's action. Such The teacher's termination
under subdivision 9 shall take effect at the close of the school year in which the contract
is terminated in the manner aforesaid, and termination discharge under subdivision 13
shall take effect immediately. A board may, however, suspend a teacher with pay pending
the conclusion of such a hearing or arbitration and determination of the issues raised
in the hearing or arbitration after charges have been filed which constitute grounds for
discharge. Such contract A continuing contract teacher's contract may be terminated at
any time by mutual consent of the board and the teacher, and this section does not affect
the powers of a board to suspend, discharge, or demote a teacher under and pursuant to
other provisions of law.
(b) (c) A teacher electing to have a continuing contract based on the extended school
calendar under section 120A.415 must participate in staff development training under
subdivision 7a and shall receive an increased base salary.

    Sec. 7. Minnesota Statutes 2010, section 122A.40, is amended by adding a subdivision
to read:
    Subd. 7b. Teacher employment. (a) After completing the initial three-year
probationary period, without discharge, a teacher who is reemployed by a school board
continues in service and holds that position during good behavior and efficient and
competent service for a renewable five-year term. The terms and conditions of a teacher's
employment contract, including salary and salary increases, must be based either on the
length of the school year or an extended school calendar under section 120A.415.
(b) At the end of every five-year term, the school board either must continue or
terminate a teacher's employment based on:
(1) standards of professional practice, student learning, and successful teacher
evaluations that are conducted at least twice per year by a school administrator; and
(2) other locally selected criteria aligned to instructional practices in teaching and
learning.

    Sec. 8. Minnesota Statutes 2010, section 122A.40, subdivision 9, is amended to read:
    Subd. 9. Grounds for termination. A continuing contract may be terminated,
effective at the close of the school year, upon any of the following grounds:
(a) (1) inefficiency;
(b) (2) neglect of duty, or persistent violation of school laws, rules, regulations,
or directives;
(c) (3) conduct unbecoming a teacher which materially impairs the teacher's
educational effectiveness; or
(d) (4) other good and sufficient grounds rendering the teacher unfit to perform
the teacher's duties.
A contract must not be terminated upon one of the grounds specified in clause (a),
(b), (c), or (d) (1), (2), (3), or (4), unless the teacher fails to correct the deficiency after
being given written notice of the specific items of complaint and reasonable time, a written
plan to assist the teacher in remedying, the specific items of complaint, and for a period
not to exceed six months within which to remedy them.

    Sec. 9. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
    Subd. 11. Unrequested leave of absence. (a) The board may place on unrequested
leave of absence, without pay or fringe benefits, as many teachers as may be necessary
because of discontinuance of position, lack of pupils, financial limitations, or merger of
classes caused by consolidation of districts. The unrequested leave is effective at the close
of the school year. In placing teachers on unrequested leave, the superintendent may
exempt from the effects of paragraphs (b) to (f) those teachers who, in the superintendent's
judgment, are able to provide instruction that similarly licensed teachers cannot provide or
whose subject area license meets unmet district needs for student instruction. The board is
governed by the following provisions: paragraphs (b) to (m).
(a) (b) The board may place probationary teachers on unrequested leave first in
the inverse order of their employment. A teacher who has acquired continuing contract
rights must not be placed on unrequested leave of absence while probationary teachers
are retained in positions for which the teacher who has acquired continuing contract
rights is licensed;.
(b) (c) Teachers who have acquired continuing contract rights shall be placed on
unrequested leave of absence in fields in which they are licensed in the inverse order in
which they were employed by the school district.
(d) In the case of equal seniority, the order in which teachers who have acquired
continuing contract rights shall be placed on unrequested leave of absence in fields in
which they are licensed is negotiable;.
(c) (e) Notwithstanding the provisions of clause (b) paragraphs (c) and (d), a teacher
is not entitled to exercise any seniority when that exercise results in that teacher being
retained by the district in a field for which the teacher holds only a provisional license, as
defined by the board of teaching, unless that exercise of seniority results in the placement
on unrequested leave of absence of another teacher who also holds a provisional license
in the same field. The provisions of this clause paragraph do not apply to vocational
education licenses;.
(d) (f) Notwithstanding clauses (a), paragraphs (b) and, (c), and (d), if the placing of
a probationary teacher on unrequested leave before a teacher who has acquired continuing
rights, the placing of a teacher who has acquired continuing contract rights on unrequested
leave before another teacher who has acquired continuing contract rights but who has
greater seniority, or the restriction restrictions imposed by the provisions of clause
paragraph (b), (c), or (d) would place the district in violation of its affirmative action
program, the district may retain the probationary teacher, the teacher with less seniority, or
the provisionally licensed teacher; with a lower designated status or less seniority.
(e) (g) Teachers placed on unrequested leave of absence must be reinstated to
the positions from which they have been given leaves of absence or, if not available,
to other available positions in the school district in fields in which they are licensed.
Reinstatement must be in the inverse order of placement on leave of absence. A teacher
must not be reinstated to a position in a field in which the teacher holds only a provisional
license, other than a vocational education license, while another teacher who holds a
nonprovisional license in the same field remains on unrequested leave. The order of
reinstatement of teachers who have equal seniority and who are placed on unrequested
leave in the same school year is negotiable;.
(f) (h) Appointment of a new teacher must not be made while there is available, on
unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
teacher fails to advise the school board within 30 days of the date of notification that a
position is available to that teacher who may return to employment and assume the duties
of the position to which appointed on a future date determined by the board;.
(g) (i) A teacher placed on unrequested leave of absence may engage in teaching
or any other occupation during the period of this leave;.
(h) (j) The unrequested leave of absence must not impair the continuing contract
rights of a teacher or result in a loss of credit for previous years of service;.
(i) (k) The unrequested leave of absence of a teacher who is placed on unrequested
leave of absence and who is not reinstated shall continue for a period of five years until
that teacher's contract expires under subdivision 7b, after which the right to reinstatement
shall terminate. The teacher's right to reinstatement shall also terminate if the teacher fails
to file with the board by April 1 of any year a written statement requesting reinstatement;.
(j) (l) The same provisions applicable to terminations of probationary or continuing
contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of
absence;.
(k) (m) Nothing in this subdivision shall be construed to impair the rights of teachers
placed on unrequested leave of absence to receive unemployment benefits if otherwise
eligible.

    Sec. 10. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
of the following grounds:
(1) immoral conduct, insubordination, or conviction of a felony;
(2) conduct unbecoming a teacher which requires the immediate removal of the
teacher from the classroom or other duties;
(3) failure without justifiable cause to teach without first securing the written release
of the school board;
(4) gross inefficiency which the teacher has failed to correct after reasonable written
notice;
(5) willful neglect of duty; or
(6) continuing physical or mental disability subsequent to a 12 months 12-month
leave of absence and inability to qualify for reinstatement in accordance with subdivision
12; or
(7) the inability of the board to terminate at the close of the previous school year
under subdivision 9.
For purposes of this paragraph subdivision, conduct unbecoming a teacher includes
an unfair discriminatory practice described in section 363A.13.
Prior to discharging a teacher under this paragraph, the board must notify the teacher
in writing and state its ground for the proposed discharge in reasonable detail. Within
ten five days after receipt of this notification the teacher may make a written request
for a hearing before the board and it shall be granted before final action is taken. The
board may, however, suspend a teacher with pay pending only for the first 60 days of the
suspension from regular duty. If the conclusion of such hearing and determination of the
issues raised in the hearing after charges have been filed which constitute constitutes
ground for discharge, the board may, in its discretion, determine the teacher's salary or
compensation at the time of filing charges against the teacher, but must subtract the
amount of any payment made to the teacher during the first 60 days of suspension. If
the determination of the issues is favorable to the teacher, the board must not abate the
teacher's salary or compensation. The hearing must be held within 30 days of the board
action proposing discharge, unless otherwise agreed to by both parties.
(b) A board must discharge a continuing-contract teacher, effective immediately,
upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
EFFECTIVE DATE.This section is effective September 1, 2011, and applies to
all discharge actions initiated by the board after that date.

    Sec. 11. Minnesota Statutes 2010, section 122A.40, subdivision 15, is amended to read:
    Subd. 15. Hearing and determination by arbitrator. (a) A teacher whose
termination discharge is proposed under subdivision 7 on grounds specified in subdivision
9, or whose discharge is proposed under subdivision 13, may elect a hearing before an
arbitrator arbitration instead of a hearing before the school board. The hearing arbitration
is governed by this subdivision.
(a) (b) The teacher must make a written request for a hearing before an arbitrator
within 14 calendar days after receiving notification of proposed termination on grounds
specified in subdivision 9 or within ten days of receiving notification of proposed
discharge under subdivision 13. The hearing must be held within 30 days of the board
action proposing discharge, unless otherwise agreed to by both parties. If a request for a
hearing does not specify that the hearing be before an arbitrator, it is considered to be a
request for a hearing before the school board.
(b) (c) If the teacher and the school board are unable to mutually agree on an
arbitrator, the board must request from the bureau of mediation services a list of five
randomly selected persons to serve as an arbitrator. If the matter to be heard is a proposed
termination on grounds specified in subdivision 9, arbitrators on the list must be available
to hear the matter and make a decision within a time frame that will allow the board to
comply with all statutory timelines relating to termination. If the teacher and the board
are unable to mutually agree on an arbitrator from the list provided, the parties shall
alternately strike names from the list until the name of one arbitrator remains. The person
remaining after the striking procedure must be the arbitrator. If the parties are unable to
agree on who shall strike the first name, the question must be decided by a flip of a coin.
The teacher and the school board must share equally the costs and fees of the arbitrator.
(c) (d) The arbitrator shall determine, by a preponderance of the evidence, whether
the grounds for termination or discharge specified in subdivision 9 or 13 exist to support
the proposed termination or discharge. A lesser penalty than termination or discharge may
be imposed by the arbitrator only to the extent that either party proposes such both parties
agree to a lesser penalty in the proceeding. In making the determination, the arbitration
proceeding is governed by sections 572B.15 to 572B.28 and by the collective bargaining
agreement applicable to the teacher.
(d) (e) An arbitration hearing conducted under this subdivision is a meeting for
preliminary consideration of allegations or charges within the meaning of section 13D.05,
subdivision 3 , paragraph (a), and must be closed, unless the teacher requests it to be open.
(e) (f) The arbitrator's award is final and binding on the parties, subject to sections
572B.18 to 572B.28.

    Sec. 12. Minnesota Statutes 2010, section 122A.40, subdivision 16, is amended to read:
    Subd. 16. Decision. After the hearing or arbitration, the board must issue a written
decision and order. If the board orders termination of a continuing contract or discharge of
a teacher, and its decision must include findings of fact based upon competent evidence in
the record and must be served on the teacher, accompanied by an order of termination or
discharge, prior to April 1 in the case of a contract termination for grounds specified in
subdivision 9, prior to July 1 for grounds specified in subdivision 10 or 11, or within ten
calendar days after conclusion of the hearing in the case of a discharge or receipt of an
arbitrator's decision. If the decision of the board or of a reviewing court is favorable to the
teacher, the proceedings must be dismissed and the decision entered in the board minutes,
and all references to such the proceedings must be excluded from the teacher's record file.

    Sec. 13. Minnesota Statutes 2010, section 122A.41, is amended by adding a
subdivision to read:
    Subd. 2a. Qualified economic offer. (a) Notwithstanding any law to the contrary,
if a school board offers teachers a biennial contract that includes a percentage increase
in total compensation at least equal to the district's biennial percent increase in basic
revenue under section 126C.10, subdivision 2, as measured by the ratio of (1) the most
recent estimate of basic revenue for the district for the biennium that corresponds to the
prospective contract term to (2) the basic revenue for the previous biennium, the teachers
may not strike for any issue relating to the total compensation for the years covered by that
contract or submit any issue relating to the total compensation to interest arbitration under
section 179A.16. However, the teachers may strike for noneconomic issues, consistent
with section 179A.18, subdivision 2, or submit noneconomic issues to interest arbitration
under section 179A.16. District fund balances or other revenue sources or allocations are
not to be included in any calculation of compensation under this subdivision.
(b) If a school board and teachers do not agree on the allocation of the total
compensation offered by the board under paragraph (a) by January 15 of an even-numbered
calendar year, the allocation of total compensation among the teachers shall be as follows:
(1) existing employee benefits must continue at the same percentage of the total
compensation and in the same manner as provided in the teachers' immediately preceding
employment contract; and
(2) based on the percentage increase in the general education formula allowance
for the biennium in which the contract is in effect, any remaining percentage of the total
compensation, after subtracting the value of clause (1), is for increases in teacher salary
based on first, alternative teacher pay plans under section 122A.414, second, the number
of years of service, and third, promotion and advanced education.
(c) For the purposes of this subdivision, the following terms have the meanings
given them.
"Teachers" means classroom teachers licensed under section 122A.18. At a school
board's election, teachers also means school administrators licensed under section
122A.14, subdivision 1. A school board that elects to offer school administrators an
employment contract under this subdivision must make the offer consistent with section
179A.20, and the provisions of this subdivision. A school board, at its discretion, also
may elect to offer any of its nonlicensed employees an employment contract under the
terms of this subdivision.
"Total compensation" means the sum of the following cost components: (i) a school
district's total salary schedule costs excluding alternative teacher compensation under
sections 122A.413 to 122A.415; (ii) a school district's total salary costs of an alternative
teacher professional pay system under sections 122A.413 to 122A.415; (iii) total
health insurance costs paid by the school district for its teachers, excluding any district
contributions to health reimbursement arrangements (HRA) or health savings accounts
(HSA) for teachers; (iv) total life insurance costs paid by the school district for its teachers;
(v) total long-term disability costs paid by the school district for its teachers; (vi) total
dental insurance costs paid by the school district for its teachers; (vii) total extracurricular
costs paid to the school district's teachers; (viii) total costs of lane changes on the teachers'
salary schedule; (ix) total Teachers Retirement Association costs paid by the school district
for its teachers; (x) total Social Security and Medicare (FICA) contribution costs paid by
the school district for its teachers; and (xi) other miscellaneous costs identified by the
school district as payment for teachers' services or benefits such as special school events,
extra service duty, summer school instruction, driver's education outside the regular school
day and school year, and other direct salary payments to teachers or fringe benefit costs
paid by the school district for its teachers and not otherwise provided for in items (i) to (x).
EFFECTIVE DATE.This section is effective for contracts ratified beginning
July 1, 2011.

    Sec. 14. Minnesota Statutes 2010, section 122A.41, subdivision 4, is amended to read:
    Subd. 4. Period of service after probationary period; discharge or demotion
Teacher employment. (a) After the completion of such completing the initial three-year
probationary period, without discharge, such teachers as are a teacher who is thereupon
reemployed shall continue in service and hold their respective that position during good
behavior and efficient and competent service for a renewable five-year term and must not
be discharged or demoted except for cause after a hearing. The terms and conditions of a
teacher's employment contract, including salary and salary increases, must be based either
on the length of the school year or an extended school calendar under section 120A.415.
(b) A probationary teacher is deemed to have been reemployed for the ensuing
school year, unless the school board in charge of such school gave such teacher notice in
writing before July 1 of the termination of such employment.
(c) A teacher electing to have an employment contract based on the extended school
calendar under section 120A.415 must participate in staff development training under
subdivision 4a and shall receive an increased base salary.
(d) At the end of every five-year term, the school board either must continue or
terminate a teacher's employment based on:
(1) standards of professional practice, student learning, and successful teacher
evaluations that are conducted at least twice per year by a school administrator; and
(2) other locally selected criteria aligned to instructional practices in teaching and
learning.

    Sec. 15. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
    Subd. 14. Services terminated by discontinuance or lack of pupils; preference
given. (a) A teacher whose services are terminated on account of discontinuance of
position or lack of pupils must receive first consideration for other positions in the district
for which that teacher is qualified. In the event it becomes necessary to discontinue one
or more positions, in making such discontinuance, teachers must be discontinued in any
department in the inverse order in which they were employed, unless a board and the
exclusive representative of teachers in the district negotiate a plan providing otherwise.
(b) The superintendent may exempt from the effects of this subdivision those
teachers who, in the superintendent's judgment, are able to provide instruction that
similarly licensed teachers cannot provide or whose subject area license meets unmet
district needs for student instruction.
(b) (c) Notwithstanding the provisions of clause paragraph (a), a teacher is not
entitled to exercise any seniority when that exercise results in that teacher being retained
by the district in a field for which the teacher holds only a provisional license, as defined
by the Board of Teaching, unless that exercise of seniority results in the termination of
services, on account of discontinuance of position or lack of pupils, of another teacher
who also holds a provisional license in the same field. The provisions of this clause
paragraph do not apply to vocational education licenses.
(c) (d) Notwithstanding the provisions of clause paragraph (a), a teacher must
not be reinstated to a position in a field in which the teacher holds only a provisional
license, other than a vocational education license, while another teacher who holds a
nonprovisional license in the same field is available for reinstatement.

    Sec. 16. [122A.645] READING INSTRUCTION STIPEND.
A teacher who received their initial teaching license prior to February 1, 2012,
and passes the assessment of reading instruction administered by the Board of Teaching
under Laws 2009, chapter 96, article 2, section 66, is eligible to receive a stipend of up to
$1,000. The teacher must submit an application for the stipend in the form and manner
determined by the commissioner of education. The commissioner shall award stipends
until the funds appropriated are expended.
EFFECTIVE DATE.This section is effective July 1, 2012.

    Sec. 17. Minnesota Statutes 2010, section 123B.88, is amended by adding a
subdivision to read:
    Subd. 1a. Full-service school zones. The board may establish a full-service school
zone by adoption of a written resolution and may provide transportation for students
attending that school. A full-service school zone may be established for a school located
in an area with higher than average crime or other social and economic challenges, that
provides education, health or human services, or other parental support in collaboration
with city, county, state, or nonprofit agencies. The pupil transportation must be intended to
stabilize enrollment and reduce mobility at that community school.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 18. Minnesota Statutes 2010, 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; and
(vii) services described in clauses (i) to (vi), when provided for pupils with
disabilities in conjunction with a summer instructional program that relates to the pupil's
individual education plan 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).
    (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, 2011.

    Sec. 19. Minnesota Statutes 2010, section 124D.09, subdivision 5, is amended to read:
    Subd. 5. Authorization; notification. Notwithstanding any other law to the
contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled
tribal contract or grant school eligible for aid under section 124D.83, except a foreign
exchange pupil enrolled in a district under a cultural exchange program, may apply to an
eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by
that postsecondary institution. Notwithstanding any other law to the contrary, a 9th or 10th
grade pupil enrolled in a district or an American Indian-controlled tribal contract or grant
school eligible for aid under section 124D.83, except a foreign exchange pupil enrolled in
a district under a cultural exchange program, may apply to enroll in nonsectarian courses
offered under subdivision 10, if after all 11th and 12th grade students have applied for a
course, additional students are necessary to offer the course. If an institution accepts a
secondary pupil for enrollment under this section, the institution shall send written notice
to the pupil, the pupil's school or school district, and the commissioner within ten days of
acceptance. The notice must indicate the course and hours of enrollment of that pupil. If
the pupil enrolls in a course for postsecondary credit, the institution must notify the pupil
about payment in the customary manner used by the institution.

    Sec. 20. Minnesota Statutes 2010, section 124D.09, subdivision 7, is amended to read:
    Subd. 7. Dissemination of information; notification of intent to enroll. By March
1 of each year, a district must provide general information about the program to all pupils
in grades 8, 9, 10, and 11. To assist the district in planning, a pupil shall inform the district
by March 30 of each year of the pupil's intent to enroll in postsecondary courses during
the following school year. A pupil is not bound by notifying or not notifying the district
by March 30.

    Sec. 21. Minnesota Statutes 2010, section 124D.09, subdivision 8, is amended to read:
    Subd. 8. Limit on participation. A pupil who first enrolls in grade 9 may not
enroll in postsecondary courses under this section for secondary credit for more than
the equivalent of four academic years. A pupil who first enrolls in grade 10 may not
enroll in postsecondary courses under this section for secondary credit for more than
the equivalent of three academic years. A pupil who first enrolls in grade 11 may not
enroll in postsecondary courses under this section for secondary credit for more than the
equivalent of two academic years. A pupil who first enrolls in grade 12 may not enroll in
postsecondary courses under this section for secondary credit for more than the equivalent
of one academic year. If a pupil in grade 9, 10, 11, or 12 first enrolls in a postsecondary
course for secondary credit during the school year, the time of participation shall be
reduced proportionately. If a pupil is in a learning year or other year-round program and
begins each grade in the summer session, summer sessions shall not be counted against the
time of participation. A pupil who has graduated from high school cannot participate in a
program under this section. A pupil who has completed course requirements for graduation
but who has not received a diploma may participate in the program under this section.

    Sec. 22. Minnesota Statutes 2010, section 124D.10, subdivision 3, is amended to read:
    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.
"Affidavit" means the form an authorizer submits to the commissioner that is a
precondition to a charter school organizing an affiliated nonprofit building corporation
under subdivision 17a.
(b) The following organizations may authorize one or more charter schools:
(1) a school board; intermediate school district school board; 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;
(iii) reports an end-of-year fund balance of at least $2,000,000; and
(iv) is incorporated in the state of Minnesota;
(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; or
(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.
(5) no more than three 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 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 60 business days of the application deadline. If the commissioner disapproves
the application, the commissioner must notify the applicant of the deficiencies and the
applicant then has 20 business days to address the deficiencies to the commissioner's
satisfaction. 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) The affidavit to be submitted to and evaluated by the commissioner must include
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, which will include at least the following:
(i) how the statutory purposes defined in subdivision 1 are addressed;
(ii) the mission, goals, program model, and student performance expectations;
(iii) an evaluation plan for the school that includes criteria for evaluating educational,
organizational, and fiscal plans;
(iv) the school's governance plan;
(v) the financial management plan; and
(vi) the administration and operations plan;
(4) a description of the type of contract it will arrange with the schools it charters
that meets the provisions of subdivision 6 and defines the rights and responsibilities of the
charter school for governing its educational program, controlling its funds, and making
school management decisions;
(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) 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
(7) an assurance specifying that the organization is committed to serving as an
authorizer for the full five-year term.
A disapproved applicant under this paragraph may resubmit an application during a
future application period.
(e) The authorizer must participate in department-approved training.
(f) An authorizer that chartered a school before August 1, 2009, must apply by June
30, 2011 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.
(g) 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.
(h) 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; or
(3) unsatisfactory performance as an approved authorizer.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. Minnesota Statutes 2010, section 124D.11, subdivision 4, is amended to read:
    Subd. 4. Building lease aid. When a charter school finds it economically
advantageous to rent or lease a building or land for any instructional purposes and it
determines that the total operating capital revenue under section 126C.10, subdivision 13,
is insufficient for this purpose, it may apply to the commissioner for building lease aid
for this purpose. The commissioner must review and either approve or deny a lease aid
application using the following criteria:
(1) the reasonableness of the price based on current market values;
(2) the extent to which the lease conforms to applicable state laws and rules; and
(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school.
A charter school must not use the building lease aid it receives for custodial, maintenance
service, utility, or other operating costs. The amount of building lease aid per pupil unit
served for a charter school for any year shall not exceed the lesser of (a) 90 percent of
the approved cost or (b) the product of the pupil units served for the current school year
times the greater of the charter school's building lease aid per pupil unit served for fiscal
year 2003, excluding the adjustment under Laws 2002, chapter 392, article 6, section 4,
or $1,200.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 24. Minnesota Statutes 2010, section 124D.36, is amended to read:
124D.36 CITATION; MINNESOTA YOUTHWORKS SERVEMINNESOTA
INNOVATION ACT.
Sections 124D.37 to 124D.45 shall be cited as the "Minnesota Youthworks
ServeMinnesota Innovation Act."

    Sec. 25. Minnesota Statutes 2010, section 124D.37, is amended to read:
124D.37 PURPOSE OF MINNESOTA YOUTHWORKS SERVEMINNESOTA
INNOVATION ACT.
The purposes of sections 124D.37 to 124D.45 are to:
(1) renew the ethic of civic responsibility in Minnesota;
(2) empower youth to improve their life opportunities through literacy, job
placement, and other essential skills;
(3) empower government to meet its responsibility to prepare young people to be
contributing members of society;
(4) help meet human, educational, environmental, and public safety needs,
particularly those needs relating to poverty;
(5) prepare a citizenry that is academically competent, ready for work, and socially
responsible;
(6) demonstrate the connection between youth and community service, community
service and education, and education and meaningful opportunities in the business
community;
(7) demonstrate the connection between providing opportunities for at-risk youth
and reducing crime rates and the social costs of troubled youth;
(8) create linkages for a comprehensive youth service and learning program in
Minnesota including school age programs, higher education programs, youth work
programs, and service corps programs; and
(9) coordinate federal and state activities that advance the purposes in this section.

    Sec. 26. Minnesota Statutes 2010, section 124D.38, subdivision 3, is amended to read:
    Subd. 3. Federal law. "Federal law" means Public Law 101-610 111-13, as
amended, or any other federal law or program assisting youth community service,
work-based learning, or youth transition from school to work.

    Sec. 27. Minnesota Statutes 2010, section 124D.385, subdivision 3, is amended to read:
    Subd. 3. Duties. (a) The commission shall:
(1) develop, with the assistance of the governor, the commissioner of education, and
affected state agencies, a comprehensive state plan to provide services under sections
124D.37 to 124D.45 and federal law;
(2) actively pursue public and private funding sources for services, including
funding available under federal law;
(3) administer the Youthworks ServeMinnesota grant program under sections
124D.39 to 124D.44, including soliciting and approving grant applications from eligible
organizations, and administering individual postservice benefits;
(4) establish an evaluation plan for programs developed and services provided
under sections 124D.37 to 124D.45;
(5) report to the governor, commissioner of education, and legislature; and
(6) administer the federal AmeriCorps Program.
(b) Nothing in sections 124D.37 to 124D.45 precludes an organization from
independently seeking public or private funding to accomplish purposes similar to those
described in paragraph (a).

    Sec. 28. Minnesota Statutes 2010, section 124D.39, is amended to read:
124D.39 YOUTHWORKS SERVEMINNESOTA INNOVATION PROGRAM.
The Youthworks ServeMinnesota Innovation program is established to provide
funding for the commission to leverage federal and private funding to fulfill the purposes
of section 124D.37. The Youthworks ServeMinnesota Innovation program must
supplement existing programs and services. The program must not displace existing
programs and services, existing funding of programs or services, or existing employment
and employment opportunities. No eligible organization may terminate, layoff, or reduce
the hours of work of an employee to place or hire a program participant. No eligible
organization may place or hire an individual for a project if an employee is on layoff from
the same or a substantially equivalent position.

    Sec. 29. Minnesota Statutes 2010, section 124D.40, is amended to read:
124D.40 YOUTHWORKS SERVEMINNESOTA INNOVATION GRANTS.
    Subdivision 1. Application. An eligible organization interested in receiving a
grant under sections 124D.39 to 124D.44 may prepare and submit an application to the
commission. As part of the grant application process, the commission must establish and
publish grant application guidelines that are consistent with this subdivision, section
124D.37, and Public Law 111-13; include criteria for reviewing an applicant's cost-benefit
analysis; and require grantees to use research-based measures of program outcomes to
generate valid and reliable data that are available to the commission for evaluation and
public reporting purposes.
    Subd. 2. Grant authority. The commission must use any state appropriation and
any available federal funds, including any grant received under federal law, to award
grants to establish programs for Youthworks ServeMinnesota Innovation. At least one
grant each must be available for a metropolitan proposal, a rural proposal, and a statewide
proposal. If a portion of the suburban metropolitan area is not included in the metropolitan
grant proposal, the statewide grant proposal must incorporate at least one suburban
metropolitan area. In awarding grants, the commission may select at least one residential
proposal and one nonresidential proposal.

    Sec. 30. Minnesota Statutes 2010, section 124D.42, is amended to read:
124D.42 YOUTHWORKS PROGRAM TRAINING; READING CORPS.
    Subd. 6. Program training. The commission must, within available resources:
(1) orient each grantee organization in the nature, philosophy, and purpose of the
program; and
(2) build an ethic of community service through general community service training;
and
(3) provide guidance on integrating programmatic-based measurement into program
models.
    Subd. 8. Minnesota reading corps program. (a) A Minnesota reading corps
program is established to provide Americorps ServeMinnesota Innovation members with a
data-based problem-solving model of literacy instruction to use in helping to train local
Head Start program providers, other prekindergarten program providers, and staff in
schools with students in kindergarten through grade 3 to evaluate and teach early literacy
skills, including comprehensive, scientifically based reading instruction under section
122A.06, subdivision 4, to children age 3 to grade 3.
(b) Literacy programs under this subdivision must comply with the provisions
governing literacy program goals and data use under section 119A.50, subdivision 3,
paragraph (b).

    Sec. 31. Minnesota Statutes 2010, section 124D.44, is amended to read:
124D.44 MATCH REQUIREMENTS.
Youthworks ServeMinnesota Innovation grant funds must be used for the living
allowance, cost of employer taxes under sections 3111 and 3301 of the Internal Revenue
Code of 1986, workers' compensation coverage, health benefits, training and evaluation
for each program participant, and administrative expenses, which must not exceed
five seven percent of total program costs. Youthworks grant funds may also be used to
supplement applicant resources to fund postservice benefits for program participants.
Applicant resources, from sources and in a form determined by the commission, must
be used to provide for all other program costs, including the portion of the applicant's
obligation for postservice benefits that is not covered by state or federal grant funds and
such costs as supplies, materials, transportation, and salaries and benefits of those staff
directly involved in the operation, internal monitoring, and evaluation of the program.

    Sec. 32. Minnesota Statutes 2010, section 124D.45, subdivision 2, is amended to read:
    Subd. 2. Interim report. The commission must report semiannually annually to the
legislature with interim recommendations to change the program.

    Sec. 33. Minnesota Statutes 2010, section 124D.4531, subdivision 1, is amended to
read:
    Subdivision 1. Career and technical levy. (a) A district with a career and technical
program approved under this section for the fiscal year in which the levy is certified may
levy an amount equal to the lesser greater of:
(1) $80 times the district's average daily membership in grades 10 9 through 12 for
the fiscal year in which the levy is certified; or
(2) 25 35 percent of approved expenditures in the fiscal year in which the levy is
certified for the following:
(i) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year, including extended contracts, for services rendered
in the district's approved career and technical education programs;
(ii) contracted services provided by a public or private agency other than a Minnesota
school district or cooperative center under subdivision 7;
(iii) necessary travel between instructional sites by licensed career and technical
education personnel;
(iv) necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;
(v) curriculum development activities that are part of a five-year plan for
improvement based on program assessment;
(vi) necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and
(vii) specialized vocational instructional supplies.
(b) Up to ten percent of a district's career and technical levy may be spent on
equipment purchases. Districts using the career and technical levy for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.
(c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.
EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.

    Sec. 34. [124D.98] LITERACY INCENTIVE AID.
    Subdivision 1. Literacy incentive aid. In fiscal year 2013 and later, a district's
literacy incentive aid equals the sum of the proficiency aid under subdivision 2, and the
growth aid under subdivision 3.
    Subd. 2. Proficiency aid. In fiscal year 2013 and later, the proficiency aid for
each school is equal to the product of the school's proficiency allowance times the
number of pupils at the school on October 1 of the previous fiscal year. A school's
proficiency allowance is equal to the percent of students in each building that meet or
exceed proficiency on the reading portion of the third grade Minnesota Comprehensive
Assessment-II, averaged across the previous three test administrations, times $150.
    Subd. 3. Growth aid. In fiscal year 2013 and later, the growth aid for each school is
equal to the product of the school's growth allowance times the number of pupils enrolled
at the school on October 1 of the previous fiscal year. A school's growth allowance is
equal to the percent of students in the fourth grade at that school making medium or high
growth, under section 120B.299, averaged across the previous three test administrations,
times $150.

    Sec. 35. CHARTER SCHOOL START-UP AID.
Notwithstanding any law to the contrary, a charter school in its first year of operation
during fiscal year 2012 is not eligible for charter school start-up aid under Minnesota
Statutes, section 124D.11, subdivision 8.

    Sec. 36. LITERACY INCENTIVE AID LIMIT.
Notwithstanding Minnesota Statutes, section 124D.98, subdivision 1, for fiscal year
2013 only, the commissioner must adjust the entitlement for literacy incentive aid under
Minnesota Statutes, section 124D.98, subdivision 1, to ensure that the total entitlement
does not exceed $85,952,000. If the literacy incentive aid exceeds the limit established in
this section, the aid must be reduced proportionately to match the limit.

    Sec. 37. LITERACY TRANSITION REVENUE.
    Subdivision 1. Literacy transition revenue. For districts that received integration
revenue under Minnesota Statutes, section 124D.86, in fiscal year 2011, literacy transition
revenue for fiscal year 2012 only is equal to the total district amount received under
Minnesota Statutes, section 124D.86, subdivision 3, in fiscal year 2011.
    Subd. 2. Literacy transition levy. For fiscal year 2012 only, a district may levy
an amount equal to 30 percent of the district's literacy transition revenue as defined in
subdivision 1.
    Subd. 3. Literacy transition aid. A district's literacy aid equals the difference
between the district's literacy transition revenue and its literacy transition aid.
    Subd. 4. Adjustments. The literacy transition aid under subdivision 3 must be
adjusted in the same manner as was adjusted under Minnesota Statutes, section 124D.86,
subdivision 6, in fiscal year 2011 for revenue in fiscal year 2012.
    Subd. 5. Method of payment. The commissioner shall make payments of literacy
transition aid to school districts according to the payment schedule under Minnesota
Statutes, section 127A.45.
EFFECTIVE DATE.This section is effective for fiscal year 2012 only.

    Sec. 38. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

		$	47,466,000	.....	2012
		$	52,484,000	.....	2013

The 2012 appropriation includes $13,336,000 for 2011 and $34,130,000 for 2012.
The 2013 appropriation includes $14,627,000 for 2012 and $37,857,000 for 2013.
    Subd. 3. Charter school start-up aid. For charter school start-up cost aid under
Minnesota Statutes, section 124D.11, subdivision 8:

		$	180,000	.....	2012
		$	25,000	.....	2013

The 2012 appropriation includes $119,000 for 2011 and $61,000 for 2012.
The 2013 appropriation includes $25,000 for 2012 and $0 for 2013.
    Subd. 4. Literacy transition aid. For literacy transition aid:

		$	64,240,000	.....	2012
		$	19,272,000	.....	2013

The 2012 appropriation includes $19,272,000 for 2011 and $44,968,000 for 2012.
The 2013 appropriation includes $19,272,000 for 2012 and $0 for 2013.
    Subd. 5. Literacy incentive aid. For literacy incentive aid under Minnesota
Statutes, section 124D.98:

$

60,167,000

.....

2013

The 2013 appropriation includes $0 for 2012 and $60,167,000 for 2013.
    Subd. 6. Reading instruction stipend aid. For reading instruction stipend aid
under Minnesota Statutes, section 122A.645:

$

4,450,000

.....

2013

The base for fiscal year 2014 and later is $4,450,000.
    Subd. 7. Interdistrict desegregation or integration transportation grants. For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

$

14,917,000

.....

2012

    Subd. 8. Success for the future. For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:

		$	2,137,000	.....	2012
		$	2,137,000	.....	2013

The 2012 appropriation includes $641,000 for 2011 and $1,496,000 for 2012.
The 2013 appropriation includes $641,000 for 2012 and $1,496,000 for 2013.
    Subd. 9. American Indian teacher preparation grants. For joint grants to assist
American Indian people to become teachers under Minnesota Statutes, section 122A.63:

		$	190,000	.....	2012
		$	190,000	.....	2013

    Subd. 10. Tribal contract school aid. For tribal contract school aid under
Minnesota Statutes, section 124D.83:

		$	2,097,000	.....	2012
		$	2,217,000	.....	2013

The 2012 appropriation includes $600,000 for 2011 and $1,497,000 for 2012.
The 2013 appropriation includes $641,000 for 2012 and $1,576,000 for 2013.
    Subd. 11. Early childhood family education programs at tribal schools. For
early childhood family education programs at tribal contract schools under Minnesota
Statutes, section 124D.83, subdivision 4:

		$	68,000	.....	2012
		$	68,000	.....	2013

    Subd. 12. Statewide testing and reporting system. For the statewide testing and
reporting system under Minnesota Statutes, section 120B.30:

		$	15,150,000	.....	2012
		$	15,150,000	.....	2013

Any balance in the first year does not cancel but is available in the second year.
    Subd. 13. Examination fees; teacher training and support programs. (a) For
students' advanced placement and international baccalaureate examination fees under
Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
for teachers and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:

		$	4,500,000	.....	2012
		$	4,500,000	.....	2013

(b) The advanced placement program shall receive 75 percent of the appropriation
each year and the international baccalaureate program shall receive 25 percent of the
appropriation each year. The department, in consultation with representatives of the
advanced placement and international baccalaureate programs selected by the Advanced
Placement Advisory Council and IBMN, respectively, shall determine the amounts of
the expenditures each year for examination fees and training and support programs for
each program.
(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
$500,000 each year is for teachers to attend subject matter summer training programs
and follow-up support workshops approved by the advanced placement or international
baccalaureate programs. The amount of the subsidy for each teacher attending an
advanced placement or international baccalaureate summer training program or workshop
shall be the same. The commissioner shall determine the payment process and the amount
of the subsidy.
(d) The commissioner shall pay all examination fees for all students of low-income
families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
of available appropriations shall also pay examination fees for students sitting for an
advanced placement examination, international baccalaureate examination, or both.
Any balance in the first year does not cancel but is available in the second year.
    Subd. 14. Concurrent enrollment programs. For concurrent enrollment programs
under Minnesota Statutes, section 124D.091:

		$	2,000,000	.....	2012
		$	2,000,000	.....	2013

If the appropriation is insufficient, the commissioner must proportionately reduce
the aid payment to each district.
Any balance in the first year does not cancel but is available in the second year.
    Subd. 15. Collaborative urban educator. For the collaborative urban educator
grant program:

		$	528,000	.....	2012
		$	528,000	.....	2013

Any balance in the first year does not cancel but is available in the second year.
Each institution shall prepare for the legislature, by January 15 of each year, a
detailed report regarding the funds used. The report must include the number of teachers
prepared as well as the diversity for each cohort of teachers produced.
    Subd. 16. ServeMinnesota program. For funding ServeMinnesota programs under
Minnesota Statutes, sections 124D.37 to 124D.45:

		$	900,000	.....	2012
		$	900,000	.....	2013

A grantee organization may provide health and child care coverage to the dependents
of each participant enrolled in a full-time ServeMinnesota program to the extent such
coverage is not otherwise available.
    Subd. 17. Student organizations. For student organizations:

		$	800,000	.....	2012
		$	800,000	.....	2013

$54,000 each year is for student organizations serving health occupations.
$51,000 each year is for student organizations serving service occupations.
$117,000 each year is for student organizations serving trade and industry
occupations.
$112,000 each year is for student organizations serving business occupations.
$174,000 each year is for student organizations serving agriculture occupations.
$166,000 each year is for student organizations serving family and consumer science
occupations.
$126,000 each year is for student organizations serving marketing occupations.
Any balance in the first year does not cancel but is available in the second year.
    Subd. 18. Early childhood literacy programs. For early childhood literacy
programs under Minnesota Statutes, section 119A.50, subdivision 3:

		$	4,125,000	.....	2012
		$	4,125,000	.....	2013

Up to $4,125,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
ServeMinnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
Any balance in the first year does not cancel, but is available in the second year.
    Subd. 19. Educational planning and assessment system (EPAS) program.
For the educational planning and assessment system program under Minnesota Statutes,
section 120B.128:

		$	829,000	.....	2012
		$	829,000	.....	2013

Any balance in the first year does not cancel but is available in the second year.

    Sec. 39. REPEALER.
(a) Minnesota Statutes 2010, sections 124D.871; and 124D.88, are repealed.
(b) Minnesota Statutes 2010, section 124D.11, subdivision 8, is repealed.
(c) Minnesota Statutes 2010, section 124D.38, subdivisions 4, 5, and 6, are repealed.
(d) Minnesota Statutes 2010, sections 124D.86; 124D.892, subdivisions 1 and 2; and
124D.896, are repealed.
(e) Minnesota Statutes 2010, section 124D.87, is repealed.
(f) Minnesota Rules, parts 3535.0100; 3535.0110; 3535.0120; 3535.0130;
3535.0140; 3535.0150; 3535.0160; 3535.0170; and 3535.0180, are repealed.
EFFECTIVE DATE.Paragraph (a) is effective for revenue for fiscal year 2012
and later. Paragraphs (b) and (e) are effective for revenue for fiscal year 2013 and later.
Paragraphs (d) and (f) are effective the day following final enactment.

ARTICLE 3

SPECIAL PROGRAMS

    Section 1. Minnesota Statutes 2010, section 125A.76, subdivision 1, is amended to
read:
    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
subdivision apply.
    (a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.
    (b) "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing services to students. Essential personnel may also include
special education paraprofessionals or clericals providing support to teachers and students
by preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individual education plans. Essential
personnel does not include administrators and supervisors.
    (c) "Average daily membership" has the meaning given it in section 126C.05.
    (d) "Program growth factor" means 1.046 1.0 for fiscal year 2012 and later.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 2. Minnesota Statutes 2010, section 125A.79, subdivision 1, is amended to read:
    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
subdivision apply.
    (a) "Unreimbursed special education cost" means the sum of the following:
    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
transportation services eligible for revenue under section 125A.76; plus
    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and
transportation services under section 125A.76; minus
    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
eligible for revenue under section 125A.76, subdivision 2.
    (b) "General revenue" means the sum of the general education revenue according to
section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
the total qualifying referendum revenue specified in paragraph (e) minus transportation
sparsity revenue minus total operating capital revenue.
    (c) "Average daily membership" has the meaning given it in section 126C.05.
    (d) "Program growth factor" means 1.02 1.0 for fiscal year 2012 and later.
    (e) "Total qualifying referendum revenue" means two-thirds of the district's total
referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 3. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Special education; regular. For special education aid under Minnesota
Statutes, section 125A.75:

		$	789,955,000	.....	2012
		$	796,681,000	.....	2013

The 2012 appropriation includes $235,975,000 for 2011 and $553,980,000 for 2012.
The 2013 appropriation includes $237,419,000 for 2012 and $559,262,000 for 2013.
    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

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

If the appropriation for either year is insufficient, the appropriation for the other
year is available.
    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

		$	357,000	.....	2012
		$	359,000	.....	2013

The 2012 appropriation includes $107,000 for 2011 and $250,000 for 2012.
The 2013 appropriation includes $107,000 for 2012 and $252,000 for 2013.
    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:

		$	111,243,000	.....	2012
		$	112,122,000	.....	2013

The 2012 appropriation includes $53,449,000 for 2011 and $57,794,000 for 2012.
The 2013 appropriation includes $53,777,000 for 2012 and $58,345,000 for 2013.
    Subd. 6. Court-placed special education revenue. For reimbursing serving
school districts for unreimbursed eligible expenditures attributable to children placed in
the serving school district by court action under Minnesota Statutes, section 125A.79,
subdivision 4:

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

    Subd. 7. Special education out-of-state tuition. For special education out-of-state
tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

		$	250,000	.....	2012
		$	250,000	.....	2013

ARTICLE 4

FACILITIES AND TECHNOLOGY

    Section 1. Minnesota Statutes 2010, section 123B.54, is amended to read:
123B.54 DEBT SERVICE APPROPRIATION.
    (a) $17,161,000 in fiscal year 2012 and $19,175,000 $19,947,000 in fiscal year
2013, $22,832,000 in fiscal year 2014, and $23,060,000 in fiscal year 2015 and later are
appropriated from the general fund to the commissioner of education for payment of debt
service equalization aid under section 123B.53.
    (b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

    Sec. 2. Minnesota Statutes 2010, section 123B.57, is amended to read:
123B.57 CAPITAL EXPENDITURE; HEALTH AND SAFETY.
    Subdivision 1. Health and safety program revenue application. (a) To receive
health and safety revenue for any fiscal year a district must submit to the commissioner
an a capital expenditure health and safety revenue application for aid and levy by the
date determined by the commissioner. The application may be for hazardous substance
removal, fire and life safety code repairs, labor and industry regulated facility and
equipment violations, and health, safety, and environmental management, including
indoor air quality management. The application must include a health and safety program
budget adopted and confirmed by the school district board as being consistent with the
district's health and safety policy under subdivision 2. The program budget must include
the estimated cost, per building, of the program per Uniform Financial Accounting and
Reporting Standards (UFARS) finance code by fiscal year. Upon approval through the
adoption of a resolution by each of an intermediate district's member school district
boards and the approval of the Department of Education, a school district may include
its proportionate share of the costs of health and safety projects for an intermediate
district in its application.
(b) Health and safety projects with an estimated cost of $500,000 or more per
site are not eligible for health and safety revenue. Health and safety projects with an
estimated cost of $500,000 or more per site that meet all other requirements for health and
safety funding, are eligible for alternative facilities bonding and levy revenue according
to section 123B.59. A school board shall not separate portions of a single project into
components to qualify for health and safety revenue, and shall not combine unrelated
projects into a single project to qualify for alternative facilities bonding and levy revenue.
(c) The commissioner of education shall not make eligibility for health and safety
revenue contingent on a district's compliance status, level of program development, or
training. The commissioner shall not mandate additional performance criteria such as
training, certifications, or compliance evaluations as a prerequisite for levy approval.
    Subd. 2. Contents of program Health and safety policy. To qualify for health
and safety revenue, a district school board must adopt a health and safety program policy.
The program policy must include plans, where applicable, for hazardous substance
removal, fire and life safety code repairs, regulated facility and equipment violations,
and provisions for implementing a health and safety program that complies with health,
safety, and environmental management, regulations and best practices, including indoor
air quality management.
(a) A hazardous substance plan must contain provisions for the removal or
encapsulation of asbestos from school buildings or property, asbestos-related repairs,
cleanup and disposal of polychlorinated biphenyls found in school buildings or property,
and cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel, oil, and special fuel, as defined in section 296A.01.
If a district has already developed a plan for the removal or encapsulation of asbestos as
required by the federal Asbestos Hazard Emergency Response Act of 1986, the district
may use a summary of that plan, which includes a description and schedule of response
actions, for purposes of this section. The plan must also contain provisions to make
modifications to existing facilities and equipment necessary to limit personal exposure
to hazardous substances, as regulated by the federal Occupational Safety and Health
Administration under Code of Federal Regulations, title 29, part 1910, subpart Z; or is
determined by the commissioner to present a significant risk to district staff or student
health and safety as a result of foreseeable use, handling, accidental spill, exposure, or
contamination.
(b) A fire and life safety plan must contain a description of the current fire and life
safety code violations, a plan for the removal or repair of the fire and life safety hazard,
and a description of safety preparation and awareness procedures to be followed until the
hazard is fully corrected.
(c) A facilities and equipment violation plan must contain provisions to correct
health and safety hazards as provided in Department of Labor and Industry standards
pursuant to section 182.655.
(d) A health, safety, and environmental management plan must contain a description
of training, record keeping, hazard assessment, and program management as defined
in section 123B.56.
(e) A plan to test for and mitigate radon produced hazards.
(f) A plan to monitor and improve indoor air quality.
    Subd. 3. Health and safety revenue. A district's health and safety revenue
for a fiscal year equals the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or:
    (1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61 ; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus
    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.
    Subd. 4. Health and safety levy. To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted marginal cost pupil units in the district for the school year
to which the levy is attributable, to $2,935.
    Subd. 5. Health and safety aid. A district's health and safety aid is the difference
between its health and safety revenue and its health and safety levy. If a district does not
levy the entire amount permitted, health and safety aid must be reduced in proportion to
the actual amount levied. Health and safety aid may not be reduced as a result of reducing
a district's health and safety levy according to section 123B.79.
    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may
be used only for approved expenditures necessary to correct for the correction of fire
and life safety hazards, or for the; design, purchase, installation, maintenance, and
inspection of fire protection and alarm equipment; purchase or construction of appropriate
facilities for the storage of combustible and flammable materials; inventories and facility
modifications not related to a remodeling project to comply with lab safety requirements
under section 121A.31; inspection, testing, repair, removal or encapsulation, and disposal
of asbestos from school buildings or property owned or being acquired by the district,
asbestos-related repairs, asbestos-containing building materials; cleanup and disposal
of polychlorinated biphenyls found in school buildings or property owned or being
acquired by the district, or the; cleanup and disposal of hazardous and infectious wastes;
cleanup, removal, disposal, and repairs related to storing heating fuel or transportation
fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section 296A.01,
Minnesota; correction of occupational safety and health administration regulated facility
and equipment hazards,; indoor air quality inspections, investigations, and testing; mold
abatement,; upgrades or replacement of mechanical ventilation systems to meet American
Society of Heating, Refrigerating and Air Conditioning Engineers standards and State
Mechanical Code,; design, materials, and installation of local exhaust ventilation systems,
including required make-up air for controlling regulated hazardous substances; correction
of Department of Health Food Code and violations; correction of swimming pool
hazards excluding depth correction,; playground safety inspections and the installation
of impact surfacing materials; bleacher repair or rebuilding to comply with the order of
a building code inspector under section 326B.112; testing and mitigation of elevated
radon hazards; lead testing; copper in water testing; cleanup after major weather-related
disasters or flooding; reduction of excessive organic and inorganic levels in wells and
well capping of abandoned wells; installation and testing of boiler backflow valves to
prevent contamination of potable water; vaccinations, titers, and preventative supplies
for bloodborne pathogen compliance; costs to comply with the Janet B. Johnson Parents'
Right To Know Act; and health, safety, and environmental management costs associated
with implementing the district's health and safety program, including costs to establish
and operate safety committees, in school buildings or property owned or being acquired
by the district. Testing and calibration activities are permitted for existing mechanical
ventilation systems at intervals no less than every five years. Health and safety revenue
must not be used to finance a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement. Health and safety revenue must not be used for
the construction of new facilities or the purchase of portable classrooms, for interest or
other financing expenses, or for energy efficiency projects under section 123B.65. The
revenue may not be used for a building or property or part of a building or property used
for postsecondary instruction or administration or for a purpose unrelated to elementary
and secondary education.
    Subd. 6a. Restrictions on health and safety revenue. (b) Notwithstanding
paragraph (a) subdivision 6, health and safety revenue must not be used: (1) to finance a
lease purchase agreement, installment purchase agreement, or other deferred payments
agreement; (2) for the construction of new facilities, remodeling of existing facilities, or
the purchase of portable classrooms; (3) for interest or other financing expenses; (4) for
energy efficiency projects under section 123B.65 for a building or property or part of a
building or property used for postsecondary instruction or administration or for a purpose
unrelated to elementary and secondary education; (5) for replacement of building materials
or facilities including roof, walls, windows, internal fixtures and flooring, nonhealth and
safety costs associated with demolition of facilities, structural repair or replacement of
facilities due to unsafe conditions, violence prevention and facility security, ergonomics, ;
or (6) for building and heating, ventilating and air conditioning supplies, maintenance, and
cleaning activities. All assessments, investigations, inventories, and support equipment
not leading to the engineering or construction of a project shall be included in the health,
safety, and environmental management costs in subdivision 8, paragraph (a).
    Subd. 6b. Health and safety projects. (a) Health and safety revenue applications
defined in subdivision 1 must be accompanied by a description of each project for which
funding is being requested. Project descriptions must provide enough detail for an auditor
to determine if the work qualifies for revenue. For projects other than fire and life
safety projects, playground projects, and health, safety, and environmental management
activities, a project description does not need to include itemized details such as material
types, room locations, square feet, names, or license numbers. The commissioner
may request supporting information and shall approve only projects that comply with
subdivisions 6 and 8, as defined by the Department of Education.
(b) Districts may request funding for allowable projects based on self-assessments,
safety committee recommendations, insurance inspections, management assistance
reports, fire marshal orders, or other mandates. Notwithstanding subdivision 1, paragraph
(b), and subdivision 8, paragraph (b), for projects under $500,000, individual project
size for projects authorized by this subdivision is not limited and may include related
work in multiple facilities. Health and safety management costs from subdivision 8 may
be reported as a single project.
(c) All costs directly related to a project shall be reported in the appropriate Uniform
Financial Accounting and Reporting Standards (UFARS) finance code.
(d) For fire and life safety egress and all other projects exceeding $20,000 and cited
under Minnesota Fire Code, a fire marshal plan review is required.
(e) Districts shall update project estimates with actual expenditures for each
fiscal year. If a project's final cost is significantly higher than originally approved, the
commissioner may request additional supporting information.
    Subd. 6c. Appeals process. In the event a district is denied funding approval for
a project the district believes complies with subdivisions 6 and 8, and is not otherwise
excluded, a district may appeal the decision. All such requests must be in writing. The
commissioner shall respond in writing. A written request must contain project number,
description and amount, reason for denial, unresolved questions for consideration, reasons
for reconsideration, and a specific statement of what action the district is requesting.
    Subd. 7. Proration. In the event that the health and safety aid available for any year
is prorated, a district having its aid prorated may levy an additional amount equal to the
amount not paid by the state due to proration.
    Subd. 8. Health, safety, and environmental management cost. (a) "Health, safety,
and environmental management" is defined in section 123B.56.
(b) A district's cost for health, safety, and environmental management is limited to
the lesser of:
(1) actual cost to implement their plan; or
(2) an amount determined by the commissioner, based on enrollment, building
age, and size.
(b) (c) The department may contract with regional service organizations, private
contractors, Minnesota Safety Council, or state agencies to provide management
assistance to school districts for health and safety capital projects. Management assistance
is the development of written programs for the identification, recognition and control of
hazards, and prioritization and scheduling of district health and safety capital projects.
The department commissioner shall not mandate management assistance or exclude
private contractors from the opportunity to provide any health and safety services to
school districts.
(c) Notwithstanding paragraph (b), the department may approve revenue, up to
the limit defined in paragraph (a) for districts having an approved health, safety, and
environmental management plan that uses district staff to accomplish coordination and
provided services.
EFFECTIVE DATE.This section is effective July 1, 2011.

    Sec. 3. Minnesota Statutes 2010, section 123B.63, subdivision 3, is amended to read:
    Subd. 3. Capital project levy referendum. (a) A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. A referendum for a project not receiving a positive review and comment
by the commissioner under section 123B.71 must be approved by at least 60 percent of
the voters at the election.
(b) The referendum may be called by the school board and may be held:
    (1) separately, before an election for the issuance of obligations for the project
under chapter 475; or
    (2) in conjunction with an election for the issuance of obligations for the project
under chapter 475; or
    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the
capital project levy and the issuance of obligations for the project under chapter 475. Any
obligations authorized for a project may be issued within five years of the date of the
election.
    (c) The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or
negative review and comment from the commissioner, state the maximum amount of the
capital project levy as a percentage of net tax capacity, state the amount that will be raised
by that local tax rate in the first year it is to be levied, and state the maximum number of
years that the levy authorization will apply.
    The ballot must contain a textual portion with the information required in this
section and a question stating substantially the following:
    "Shall the capital project levy proposed by the board of .......... School District
No. .......... be approved?"
    If approved, the amount provided by the approved local tax rate applied to the net
tax capacity for the year preceding the year the levy is certified may be certified for the
number of years, not to exceed ten, approved.
(d) If the district proposes a new capital project to begin at the time the existing
capital project expires and at the same maximum tax rate, the general description on the
ballot may state that the capital project levy is being renewed and that the tax rate is not
being increased from the previous year's rate. An election to renew authority under this
paragraph may be called at any time that is otherwise authorized by this subdivision. The
ballot notice required under section 275.60 may be modified to read:
"BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING
TO RENEW AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS
SCHEDULED TO EXPIRE."
    (e) In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.
    (f) The district must notify the commissioner of the results of the referendum.
EFFECTIVE DATE.This section is effective the day following final enactment for
referenda conducted on or after the 53rd day following final enactment.

    Sec. 4. Minnesota Statutes 2010, section 126C.40, subdivision 1, is amended to read:
    Subdivision 1. To lease building or land. (a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for
school storage or furniture repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
apply to the commissioner for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under this subdivision must contain
financial justification for the proposed levy, the terms and conditions of the proposed
lease, and a description of the space to be leased and its proposed use.
    (b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.
    (c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.
    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.
    (e) The total levy under this subdivision for a district for any year must not exceed
$150 times the resident pupil units for the fiscal year to which the levy is attributable.
    (f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.
    (g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:
    (1) the school district has been experiencing pupil enrollment growth in the
preceding five years;
    (2) the purpose of the increased levy is in the long-term public interest;
    (3) the purpose of the increased levy promotes colocation of government services;
and
    (4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.
    (h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not exceed
$43 times the adjusted marginal cost pupil units of the member districts. This authority is
in addition to any other authority authorized under this section.
    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
2012 to 2022, a district that is a member of the "Technology and Information Education
Systems" data processing joint board, that finds it economically advantageous to enter
into a lease purchase agreement for to finance improvements to a building for a group of
school districts or special school districts for staff development purposes, may levy for
its portion of lease costs attributed to the district within the total levy limit in paragraph
(e). The total levy authority under this paragraph shall not exceed $632,000 each year.
EFFECTIVE DATE.This section is effective for taxes payable in 2012 and later.

    Sec. 5. Laws 1999, chapter 241, article 4, section 25, is amended by adding a
subdivision to read:
    Subd. 3. Independent School District No. 284, Wayzata. Independent School
District No. 284, Wayzata, is eligible for the alternative facilities revenue program under
Minnesota Statutes, section 123B.59, for the purposes of financing school facilities
in the district.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
and later.

    Sec. 6. HEALTH AND SAFETY POLICY.
Notwithstanding Minnesota Statutes, section 123B.57, subdivision 2, a school board
that has not yet adopted a health and safety policy by September 30, 2011, may submit an
application for health and safety revenue for taxes payable in 2012 in the form and manner
specified by the commissioner of education.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Health and safety revenue. For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

		$	123,000	.....	2012
		$	113,000	.....	2013

The 2012 appropriation includes $39,000 for 2011 and $84,000 for 2012.
The 2013 appropriation includes $36,000 for 2012 and $77,000 for 2013.
    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

		$	12,425,000	.....	2012
		$	19,947,000	.....	2013

The 2012 appropriation includes $2,604,000 for 2011 and $9,821,000 for 2012.
The 2013 appropriation includes $4,208,000 for 2012 and $15,739,000 for 2013.
    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:

		$	19,287,000	.....	2012
		$	19,287,000	.....	2013

The 2012 appropriation includes $5,786,000 for 2011 and $13,501,000 for 2012.
The 2013 appropriation includes $5,786,000 for 2012 and $13,501,000 for 2013.
    Subd. 5. Equity in telecommunications access. For equity in telecommunications
access:

		$	3,750,000	.....	2012
		$	3,750,000	.....	2013

If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2012 and 2013 shall be prorated.
Any balance in the first year does not cancel but is available in the second year.
    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

		$	2,494,000	.....	2012
		$	3,035,000	.....	2013

The 2012 appropriation includes $676,000 for 2011 and $1,818,000 for 2012.
The 2013 appropriation includes $778,000 for 2012 and $2,257,000 for 2013.

ARTICLE 5

NUTRITION AND ACCOUNTING

    Section 1. Minnesota Statutes 2010, section 123B.75, subdivision 5, is amended to read:
    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
year, the school district must recognize as revenue, in the fund for which the levy was
made, the lesser of:
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4 , received in July and August of that calendar year; or
(2) the sum of:
(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6 ; plus
(iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).
(b) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:
(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
(2) the sum of:
(i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus
(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3 , clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6; plus
(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).
EFFECTIVE DATE.This section is effective for fiscal year 2011.

    Sec. 2. Minnesota Statutes 2010, section 127A.441, is amended to read:
127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
    (a) Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5 , paragraph (a) or (b). For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457 ; and 126C.48, subdivision 6. Payment from the permanent school fund shall
not be adjusted pursuant to this section.
(b) The commissioner shall schedule the timing of the adjustments under paragraph
(a) as close to the end of the fiscal year as possible.
The school district shall be notified of the amount of the adjustment made to each
payment pursuant to this section.
EFFECTIVE DATE.This section is effective for fiscal year 2011.

    Sec. 3. Minnesota Statutes 2010, section 127A.45, subdivision 2, is amended to read:
    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
treasurers pursuant to section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county auditor pursuant to section
127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
pursuant to chapter 298.
(b) "Cumulative amount guaranteed" means the product of
(1) the cumulative disbursement percentage shown in subdivision 3; times
(2) the sum of
(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus
(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
(iii) the other district receipts.
(c) "Payment date" means the date on which state payments to districts are made
by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
or a weekday which is a legal holiday, the payment shall be made on the immediately
preceding business day. The commissioner may make payments on dates other than
those listed in subdivision 3, but only for portions of payments from any preceding
payment dates which could not be processed by the electronic funds transfer method due
to documented extenuating circumstances.
(d) The current year aid payment percentage equals 73 in fiscal year 2010, and 70
in fiscal year 2011, and 90 in fiscal years 2012 and later.

    Sec. 4. Minnesota Statutes 2010, section 127A.46, is amended to read:
127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.
(a) If the commissioner of management and budget determines that modifications
in the payment schedule would reduce the need for state short-term borrowing,
the commissioner may modify payments to districts according to this section. The
modifications must begin no sooner than September 1 of each fiscal year, and must remain
in effect until no later than May 30 of that same fiscal year. In calculating the payment to a
district pursuant to section 127A.45, subdivision 3, the commissioner may subtract the
sum specified in that subdivision, plus an additional amount no greater than the following:
(1) the net cash balance in each of the district's operating funds on June 30 of the
preceding fiscal year; minus
(2) the product of $700 times the number of resident pupil units in the preceding
fiscal year; minus
(3) the amount of payments made by the county treasurer during the preceding fiscal
year, pursuant to section 276.11, which is considered revenue for the current school year.
However, no additional amount shall be subtracted if the total of the net unappropriated
fund balances in the district's four operating funds on June 30 of the preceding fiscal year,
is less than the product of $700 times the number of resident pupil units in the preceding
fiscal year. The net cash balance must include all cash and investments, less certificates of
indebtedness outstanding, and orders not paid for want of funds.
(b) A district may appeal the payment schedule established by this section according
to the procedures established in section 127A.45, subdivision 4.
(c) The commissioner of education shall calculate the interest on delayed school
district payments based on the average daily invested treasurer's cash interest during the
period in which the delayed payments are in effect. The amount of this interest shall be
included in the payments to districts by May 30. The amounts necessary to make this
interest payment are appropriated to the commissioner.

    Sec. 5. Laws 2008, chapter 363, article 2, section 46, subdivision 1, as amended by
Laws 2009, chapter 96, article 5, section 11, is amended to read:
    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
on June 30 of 2008, 2009, and 2010, 2011, and 2012, a school district may transfer
money from its reserved for operating capital account to its undesignated balance in the
general fund. The amount transferred by any school district must not exceed $51 times
the district's adjusted marginal cost pupil units for the second preceding fiscal year. This
transfer annually may occur only after the school board has adopted a written resolution
stating the amount of the transfer and declaring that the school district's operating capital
needs are being met.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. FUND TRANSFERS.
    Subdivision 1. Becker. Notwithstanding Minnesota Statutes, sections 123B.79;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
726, Becker, may permanently transfer up to $500,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
    Subd. 2. Delano. Notwithstanding Minnesota Statutes, sections 123B.57; 123B.80;
and 475.61, subdivision 4, on June 30, 2011, Independent School District No. 879,
Delano, may permanently transfer up to $235,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
    Subd. 3. Elk River. Notwithstanding Minnesota Statutes, sections 123B.79;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
728, Elk River, may permanently transfer up to $690,000 from its debt redemption fund to
its reserved for operating capital account without making a levy reduction.
    Subd. 4. Madelia. Notwithstanding Minnesota Statutes, sections 123B.57; 123B.80;
and 475.61, subdivision 4, on June 30, 2011, Independent School District No. 837,
Madelia, may permanently transfer up to $427,000 from its debt redemption fund to its
reserved for operating capital account without making a levy reduction.
    Subd. 5. Monticello. Notwithstanding Minnesota Statutes, sections 123B.57;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
882, Monticello, may permanently transfer up to $500,000 from its debt redemption fund
to its reserved for operating capital account without making a levy reduction.
    Subd. 6. St. Cloud. Notwithstanding Minnesota Statutes, sections 123B.57;
123B.80; and 475.61, subdivision 4, on June 30, 2011, Independent School District No.
742, St. Cloud, may permanently transfer up to $650,000 from its debt redemption fund to
its reserved for operating capital account without making a levy reduction.

    Sec. 7. LEVY AID RECOGNITION TIMING.
Notwithstanding Minnesota Statutes, section 127A.441, paragraph (b), the
commissioner of education shall schedule the portion of the aid adjustment for fiscal year
2011 attributable to the exclusion of levy portions assumed by the state from the levy
recognition calculation under Minnesota Statutes, section 123B.75, subdivision 5, to occur
with the final payment for fiscal year 2011 made on October 30, 2011.

    Sec. 8. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

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

    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:

		$	4,759,000	.....	2012
		$	4,875,000	.....	2013

    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

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

    Subd. 5. Summer school service replacement aid. For summer school service
replacement aid under Minnesota Statutes, section 124D.119:

		$	150,000	.....	2012
		$	150,000	.....	2013

ARTICLE 6

LIBRARIES

    Section 1. Minnesota Statutes 2010, section 134.195, subdivision 8, is amended to read:
    Subd. 8. Funding. The ordinance or resolution establishing the library shall
provide for joint financing of the library by the school district and the city. The city shall
provide at least the minimum dollar amount established in section 134.34, subdivision
1 . The school district shall provide money for staff and materials for the library at least
in proportion to the use related to curriculum, as determined by the circulation statistics
of the library. Neither the city nor the school district shall reduce the financial support
provided for operation of library or media services below the level of support provided in
the preceding year.
EFFECTIVE DATE.This section is effective for revenue retroactive to fiscal
year 2011 and later.

    Sec. 2. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Basic system support. For basic system support grants under Minnesota
Statutes, section 134.355:

		$	13,570,000	.....	2012
		$	13,570,000	.....	2013

The 2012 appropriation includes $4,071,000 for 2011 and $9,499,000 for 2012.
The 2013 appropriation includes $4,071,000 for 2012 and $9,499,000 for 2013.
    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

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

The 2012 appropriation includes $390,000 for 2011 and $910,000 for 2012.
The 2013 appropriation includes $390,000 for 2012 and $910,000 for 2013.
    Subd. 4. Electronic library for Minnesota. For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:

		$	900,000	.....	2012
		$	900,000	.....	2013

Any balance in the first year does not cancel but is available in the second year.
    Subd. 5. Regional library telecommunications aid. For regional library
telecommunications aid under Minnesota Statutes, section 134.355:

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

The 2012 appropriation includes $690,000 for 2011 and $1,610,000 for 2012.
The 2013 appropriation includes $690,000 for 2012 and $1,610,000 for 2013.

ARTICLE 7

EARLY CHILDHOOD EDUCATION

    Section 1. [124D.143] OUTCOME INVESTMENTS.
An increase in state appropriations for the purpose of improving school readiness
outcomes must be made in research-based programs of known quality consistent with
the framework under section 124D.142.

    Sec. 2. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. School readiness. For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

		$	10,095,000	.....	2012
		$	10,095,000	.....	2013

The 2012 appropriation includes $3,028,000 for 2011 and $7,067,000 for 2012.
The 2013 appropriation includes $3,028,000 for 2012 and $7,067,000 for 2013.
    Subd. 3. Early childhood family education aid. For early childhood family
education aid under Minnesota Statutes, section 124D.135:

		$	22,466,000	.....	2012
		$	23,015,000	.....	2013

The 2012 appropriation includes $6,542,000 for 2011 and $15,924,000 for 2012.
The 2013 appropriation includes $6,824,000 for 2012 and $16,191,000 for 2013.
    Subd. 4. Health and developmental screening aid. For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

		$	3,568,000	.....	2012
		$	3,547,000	.....	2013

The 2012 appropriation includes $1,066,000 for 2011 and $2,502,000 for 2012.
The 2013 appropriation includes $1,072,000 for 2012 and $2,475,000 for 2013.
    Subd. 5. Head Start program. For Head Start programs under Minnesota Statutes,
section 119A.52:

		$	20,100,000	.....	2012
		$	20,100,000	.....	2013

    Subd. 6. Educate parents partnership. For the educate parents partnership under
Minnesota Statutes, section 124D.129:

		$	49,000	.....	2012
		$	49,000	.....	2013

    Subd. 7. Kindergarten entrance assessment initiative and intervention
program. For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:

		$	281,000	.....	2012
		$	281,000	.....	2013

ARTICLE 8

PREVENTION

    Section 1. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Community education aid. For community education aid under
Minnesota Statutes, section 124D.20:

		$	478,000	.....	2012
		$	694,000	.....	2013

The 2012 appropriation includes $134,000 for 2011 and $344,000 for 2012.
The 2013 appropriation includes $147,000 for 2012 and $547,000 for 2013.
    Subd. 3. Adults with disabilities program aid. For adults with disabilities
programs under Minnesota Statutes, section 124D.56:

		$	710,000	.....	2012
		$	710,000	.....	2013

The 2012 appropriation includes $213,000 for 2011 and $497,000 for 2012.
The 2013 appropriation includes $213,000 for 2012 and $497,000 for 2013.
    Subd. 4. Hearing-impaired adults. For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:

		$	70,000	.....	2012
		$	70,000	.....	2013

    Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
section 124D.22:

		$	1,000	.....	2012
		$	1,000	.....	2013

The 2012 appropriation includes $0 for 2011 and $1,000 for 2012.
The 2013 appropriation includes $0 for 2012 and $1,000 for 2013.

ARTICLE 9

SELF-SUFFICIENCY AND LIFELONG LEARNING

    Section 1. Minnesota Statutes 2010, section 124D.531, subdivision 1, is amended to
read:
    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3 . The state total adult basic education aid for fiscal year 2008 2011 equals
$40,650,000 $44,419,000, plus any amount that is not paid during the previous fiscal
year as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3 . The state total adult basic education aid for later fiscal years equals:
    (1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
    (2) the lesser of:
    (i) 1.03 1.02; or
    (ii) the average growth in state total contact hours over the prior ten program years.
    Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522 .
    (b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.
EFFECTIVE DATE.This section is effective for revenue for fiscal year 2012
and later.

    Sec. 2. Minnesota Statutes 2010, section 124D.531, subdivision 4, is amended to read:
    Subd. 4. Adult basic education program aid limit. (a) Notwithstanding
subdivisions 2 and 3, the total adult basic education aid for a program per prior year
contact hour must not exceed $22 per prior year contact hour computed under subdivision
3, clause (2).
    (b) For fiscal year 2006 and fiscal year 2007, the aid for a program under subdivision
3, clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of eight percent or $10,000.
    (c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, shall not be limited.
    (d) For fiscal year 2009 and later, The aid for a program under subdivision 3,
clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of 11 percent or $10,000.
    (e) (c) Adult basic education aid is payable to a program for unreimbursed costs
occurring in the program year as defined in section 124D.52, subdivision 3.
    (f) (d) Any adult basic education aid that is not paid to a program because of the
program aid limitation under paragraph (a) must be added to the state total adult basic
education aid for the next fiscal year under subdivision 1. Any adult basic education aid
that is not paid to a program because of the program aid limitations under paragraph
(b), (c), or (d), must be reallocated among programs by adjusting the rate per contact hour
under subdivision 3, clause (2).

    Sec. 3. APPROPRIATIONS.
    Subdivision 1. Department of Education. The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
Statutes, section 124D.531:

		$	45,075,000	.....	2012
		$	45,932,000	.....	2013

The 2012 appropriation includes $13,365,000 for 2011 and $31,710,000 for 2012.
The 2013 appropriation includes $13,589,000 for 2012 and $32,343,000 for 2013.
    Subd. 3. GED tests. For payment of 60 percent of the costs of GED tests under
Minnesota Statutes, section 124D.55:

		$	125,000	.....	2012
		$	125,000	.....	2013

ARTICLE 10

STATE AGENCIES

    Section 1. Minnesota Statutes 2010, section 125A.69, subdivision 1, is amended to
read:
    Subdivision 1. Two kinds Admissions. There are two kinds of Admission to the
Minnesota State Academies is described in this section.
(a) A pupil who is deaf, hard of hearing, or blind-deaf deafblind, may be admitted to
the Academy for the Deaf. A pupil who is blind or visually impaired, blind-deaf deafblind,
or multiply disabled may be admitted to the Academy for the Blind. For a pupil to be
admitted, two decisions must be made under sections 125A.03 to 125A.24 and 125A.65.
(1) It must be decided by the individual education planning team that education in
regular or special education classes in the pupil's district of residence cannot be achieved
satisfactorily because of the nature and severity of the deafness or blindness or visual
impairment respectively.
(2) It must be decided by the individual education planning team that the academy
provides the most appropriate placement within the least restrictive alternative for the
pupil.
(b) A deaf or hard-of-hearing child or a visually impaired pupil may be admitted to
get socialization skills or on a short-term basis for skills development.
(c) A parent of a child who resides in Minnesota and who meets the disability criteria
for being deaf or hard of hearing, blind or visually impaired, or multiply disabled may
apply to place the child in the Minnesota State Academies. Academy staff must review
the application to determine whether the Minnesota State Academies is an appropriate
placement for the child. If academy staff determine that the Minnesota State Academies is
an appropriate placement, the staff must invite the individualized education program team
at the child's resident school district to participate in a meeting to arrange a trial placement
of between 60 and 90 calendar days at the Minnesota State Academies. If the child's
parent consents to the trial placement, the Minnesota State Academies is the responsible
serving school district and incurs all due process obligations under law, and the child's
resident school district is responsible for any transportation included in the child's
individualized education program during the trial placement. Before the trial placement
ends, academy staff must convene an individualized education program team meeting to
determine whether to continue the child's placement at the Minnesota State Academies
or that another placement is appropriate. If the academy members of the individualized
education program team and the parent are unable to agree on the child's placement, the
child's placement reverts to the placement in the child's individualized education program
that immediately preceded the trial placement. If the parent and individualized education
program team agree to continue the placement beyond the trial period, the transportation
and due process responsibilities are the same as those described for the trial placement
under this paragraph.

    Sec. 2. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
indicated in this section are appropriated from the general fund to the Department of
Education for the fiscal years designated.
    Subd. 2. Department. (a) For the Department of Education:

		$	16,996,000	.....	2012
		$	16,940,000	.....	2013

Any balance in the first year does not cancel but is available in the second year.
(b) $260,000 each year is for the Minnesota Children's Museum.
(c) $41,000 each year is for the Minnesota Academy of Science.
(d) $50,000 each year is for the Duluth Children's Museum.
(e) $618,000 each year is for the Board of Teaching. Any balance in the first year
does not cancel but is available in the second year.
(f) $167,000 each year is for the Board of School Administrators. Any balance in
the first year does not cancel but is available in the second year.
(g) $10,000 in fiscal year 2012 is for nonpublic pupil aid rulemaking.
(h) $44,000 in fiscal year 2012 is for rulemaking for the alternative teacher
preparation program under Minnesota Statutes, section 122A.245.
(i) $104,000 in fiscal year 2012 and $102,000 in fiscal year 2013 are for a
professional education specialist to administer the early graduation achievement program.
(j) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.
(k) The Division of Program Finance in the Department of Education must be
funded, at a minimum, at the fiscal year 2011 level.
(l) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C. office.

    Sec. 3. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and Blind for the fiscal years designated:

		$	11,603,000	.....	2012
		$	11,603,000	.....	2013

Any balance in the first year does not cancel but is available in the second year.

    Sec. 4. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
The sums in this section are appropriated from the general fund to the Perpich
Center for Arts Education for the fiscal years designated:

		$	6,587,000	.....	2012
		$	6,587,000	.....	2013

Any balance in the first year does not cancel, but is available in the second year.

ARTICLE 11

FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

    Section 1. Laws 2009, chapter 96, article 1, section 24, subdivision 2, as amended by
Laws 2010, First Special Session chapter 1, article 3, section 10, is amended to read:
    Subd. 2. General education aid. For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

		$	4,291,422,000	.....	2010
		$	4,776,884,000 4,832,264,000	.....	2011

The 2010 appropriation includes $553,591,000 for 2009 and $3,737,831,000 for
2010.
The 2011 appropriation includes $1,363,306,000 for 2010 and $3,413,578,000
$3,468,958,000 for 2011.

    Sec. 2. Laws 2009, chapter 96, article 1, section 24, subdivision 3, is amended to read:
    Subd. 3. Enrollment options transportation. For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

		$	48,000	.....	2010
		$	52,000 29,000	.....	2011

    Sec. 3. Laws 2009, chapter 96, article 1, section 24, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 2, is amended to read:
    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
127A.49 :

		$	1,000,000	.....	2010
		$	1,132,000 1,127,000	.....	2011

The 2010 appropriation includes $140,000 for 2009 and $860,000 for 2010.
The 2011 appropriation includes $317,000 for 2010 and $815,000 $810,000 for 2011.

    Sec. 4. Laws 2009, chapter 96, article 1, section 24, subdivision 5, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 3, is amended to read:
    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
Statutes, section 123A.485:

		$	684,000	.....	2010
		$	576,000 593,000	.....	2011

The 2010 appropriation includes $0 for 2009 and $684,000 for 2010.
The 2011 appropriation includes $252,000 for 2010 and $324,000 $341,000 for 2011.

    Sec. 5. Laws 2009, chapter 96, article 1, section 24, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 4, is amended to read:
    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

		$	12,861,000	.....	2010
		$	16,157,000 16,213,000	.....	2011

The 2010 appropriation includes $1,067,000 for 2009 and $11,794,000 for 2010.
The 2011 appropriation includes $4,362,000 for 2010 and $11,795,000 $11,851,000
for 2011.

    Sec. 6. Laws 2009, chapter 96, article 1, section 24, subdivision 7, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 5, is amended to read:
    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

		$	17,297,000	.....	2010
		$	19,729,000 19,387,000	.....	2011

The 2010 appropriation includes $2,077,000 for 2009 and $15,220,000 for 2010.
The 2011 appropriation includes $5,629,000 for 2010 and $14,100,000 $13,758,000
for 2011.

B. EDUCATION EXCELLENCE

    Sec. 7. Laws 2009, chapter 96, article 2, section 67, subdivision 2, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 6, is amended to read:
    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

		$	34,833,000	.....	2010
		$	44,938,000 42,633,000	.....	2011

The 2010 appropriation includes $3,704,000 for 2009 and $31,129,000 for 2010.
The 2011 appropriation includes $11,513,000 for 2010 and $33,425,000 $31,120,000
for 2011.

    Sec. 8. Laws 2009, chapter 96, article 2, section 67, subdivision 3, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 7, is amended to read:
    Subd. 3. Charter school startup aid. For charter school startup cost aid under
Minnesota Statutes, section 124D.11:

		$	1,218,000	.....	2010
		$	743,000 654,000	.....	2011

The 2010 appropriation includes $202,000 for 2009 and $1,016,000 for 2010.
The 2011 appropriation includes $375,000 for 2010 and $368,000 $279,000 for 2011.

    Sec. 9. Laws 2009, chapter 96, article 2, section 67, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 8, is amended to read:
    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
124D.86, subdivision 5 :

		$	50,812,000	.....	2010
		$	61,782,000 61,604,000	.....	2011

The 2010 appropriation includes $5,832,000 for 2009 and $44,980,000 for 2010.
The 2011 appropriation includes $16,636,000 for 2010 and $45,146,000 $44,968,000
for 2011.

    Sec. 10. Laws 2009, chapter 96, article 2, section 67, subdivision 6, is amended to read:
    Subd. 6. Interdistrict desegregation or integration transportation grants. For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

		$	14,468,000	.....	2010
		$	17,582,000 13,393,000	.....	2011

    Sec. 11. Laws 2009, chapter 96, article 2, section 67, subdivision 9, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 10, is amended to read:
    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
Statutes, section 124D.83:

		$	1,702,000	.....	2010
		$	2,119,000 1,958,000	.....	2011

The 2010 appropriation includes $191,000 for 2009 and $1,511,000 for 2010.
The 2011 appropriation includes $558,000 for 2010 and $1,561,000 $1,400,000
for 2011.

C. SPECIAL EDUCATION

    Sec. 12. Laws 2009, chapter 96, article 3, section 21, subdivision 3, is amended to read:
    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

		$	1,717,000	.....	2010
		$	1,895,000 1,554,000	.....	2011

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

    Sec. 13. Laws 2009, chapter 96, article 3, section 21, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 12, is amended to read:
    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

		$	224,000	.....	2010
		$	282,000 324,000	.....	2011

The 2010 appropriation includes $24,000 for 2009 and $200,000 for 2010.
The 2011 appropriation includes $73,000 for 2010 and $209,000 $251,000 for 2011.

D. FACILITIES AND TECHNOLOGY

    Sec. 14. Laws 2009, chapter 96, article 4, section 12, subdivision 6, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 17, is amended to read:
    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

		$	1,918,000	.....	2010
		$	2,146,000 2,191,000	.....	2011

The 2010 appropriation includes $260,000 for 2009 and $1,658,000 for 2010.
The 2011 appropriation includes $613,000 for 2010 and $1,533,000 $1,578,000
for 2011.

E. NUTRITION

    Sec. 15. Laws 2009, chapter 96, article 5, section 13, subdivision 2, is amended to read:
    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

		$	12,688,000	.....	2010
		$	13,069,000 12,378,000	.....	2011

    Sec. 16. Laws 2009, chapter 96, article 5, section 13, subdivision 3, is amended to read:
    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:

		$	4,978,000	.....	2010
		$	5,147,000 4,646,000	.....	2011

    Sec. 17. Laws 2009, chapter 96, article 5, section 13, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 18, is amended to read:
    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

		$	1,104,000	.....	2010
		$	1,126,000 1,063,000	.....	2011

F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND
SELF-SUFFICIENCY AND LIFELONG LEARNING

    Sec. 18. Laws 2009, chapter 96, article 6, section 11, subdivision 3, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 23, is amended to read:
    Subd. 3. Early childhood family education aid. For early childhood family
education aid under Minnesota Statutes, section 124D.135:

		$	19,005,000	.....	2010
		$	21,460,000 21,177,000	.....	2011

The 2010 appropriation includes $3,020,000 for 2009 and $15,985,000 for 2010.
The 2011 appropriation includes $5,911,000 for 2010 and $15,549,000 $15,266,000
for 2011.

    Sec. 19. Laws 2009, chapter 96, article 6, section 11, subdivision 4, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 24, is amended to read:
    Subd. 4. Health and developmental screening aid. For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

		$	2,922,000	.....	2010
		$	3,425,000 3,434,000	.....	2011

The 2010 appropriation includes $367,000 for 2009 and $2,555,000 for 2010.
The 2011 appropriation includes $945,000 for 2010 and $2,480,000 $2,489,000
for 2011.

    Sec. 20. Laws 2009, chapter 96, article 6, section 11, subdivision 8, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 25, is amended to read:
    Subd. 8. Community education aid. For community education aid under
Minnesota Statutes, section 124D.20:

		$	476,000	.....	2010
		$	473,000 463,000	.....	2011

The 2010 appropriation includes $73,000 for 2009 and $403,000 for 2010.
The 2011 appropriation included $148,000 for 2010 and $325,000 $315,000 for
2011.

    Sec. 21. Laws 2009, chapter 96, article 6, section 11, subdivision 12, as amended by
Laws 2010, First Special Session chapter 1, article 4, section 27, is amended to read:
    Subd. 12. Adult basic education aid. For adult basic education aid under
Minnesota Statutes, section 124D.531:

		$	35,671,000	.....	2010
		$	42,732,000 42,829,000	.....	2011

The 2010 appropriation includes $4,187,000 for 2009 and $31,484,000 for 2010.
The 2011 appropriation includes $11,644,000 for 2010 and $31,088,000 $31,185,000
for 2011.