1.1    .................... moves to amend the delete everything amendment (H3316DE3) to H.
1.2F. No. 3316, as follows:
1.3Delete everything after the enacting clause and insert:


1.6    Section 1. Minnesota Statutes 2006, section 123B.14, subdivision 7, is amended to read:
1.7    Subd. 7. Clerk records. The clerk shall keep a record of all meetings of the
1.8district and the board in books provided by the district for that purpose. The clerk shall,
1.9within three days after an election, notify all persons elected of their election. By August
1.10September 15 of each year the clerk shall file with the board a report of the revenues,
1.11expenditures and balances in each fund for the preceding fiscal year. The report together
1.12with vouchers and supporting documents shall subsequently be examined by a public
1.13accountant or the state auditor, either of whom shall be paid by the district, as provided
1.14in section 123B.77, subdivision 3. The board shall by resolution approve the report or
1.15require a further or amended report. By August September 15 of each year, the clerk shall
1.16make and transmit to the commissioner certified reports, showing:
1.17    (1) The condition and value of school property;
1.18    (2) (1) The revenues and expenditures in detail, and such other financial information
1.19required by law, rule, or as may be called for by the commissioner;
1.20    (3) (2) The length of school term and the enrollment and attendance by grades; and
1.21    (4) (3) Such other items of information as may be called for by the commissioner.
1.22    The clerk shall enter in the clerk's record book copies of all reports and of the
1.23teachers' term reports, as they appear in the registers, and of the proceedings of any
1.24meeting as furnished by the clerk pro tem, and keep an itemized account of all the
1.25expenses of the district. The clerk shall furnish to the auditor of the proper county, by
1.26October 10 September 30 of each year, an attested copy of the clerk's record, showing the
2.1amount of money proposed property taxes voted by the district or the board for school
2.2purposes; draw and sign all orders upon the treasurer for the payment of money for bills
2.3allowed by the board for salaries of officers and for teachers' wages and all claims, to be
2.4countersigned by the chair. Such orders must state the consideration, payee, and the
2.5fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in
2.6the order in which they become due, and no money applicable for teachers' wages shall
2.7be used for any other purpose, nor shall teachers' wages be paid from any fund except
2.8that raised or apportioned for that purpose.

2.9    Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 3, is amended to read:
2.10    Subd. 3. Statement for comparison and correction. (a) By November 30 of the
2.11calendar year of the submission of the unaudited financial data, the district must provide to
2.12the commissioner audited financial data for the preceding fiscal year. The audit must be
2.13conducted in compliance with generally accepted governmental auditing standards, the
2.14federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office
2.15of the State Auditor. An audited financial statement prepared in a form which will allow
2.16comparison with and correction of material differences in the unaudited financial data
2.17shall be submitted to the commissioner and the state auditor by December 31. The audited
2.18financial statement must also provide a statement of assurance pertaining to uniform
2.19financial accounting and reporting standards compliance and a copy of the management
2.20letter submitted to the district by the school district's auditor.
2.21    (b) By January February 15 of the calendar year following the submission of the
2.22unaudited financial data, the commissioner shall convert the audited financial data
2.23required by this subdivision into the consolidated financial statement format required
2.24under subdivision 1a and publish the information on the department's Web site.

2.25    Sec. 3. Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:
2.26    Subd. 3. Debt verification. The commissioner shall establish a uniform auditing or
2.27other verification procedure for districts to determine whether a statutory operating debt
2.28exists in any Minnesota school district as of June 30, 1977. This procedure must identify
2.29all interfund transfers made during fiscal year 1977 from a fund included in computing
2.30statutory operating debt to a fund not included in computing statutory operating debt.
2.31The standards for this uniform auditing or verification procedure must be promulgated
2.32by the state board pursuant to chapter 14. If a district applies to the commissioner for
2.33a statutory operating debt verification or if the unaudited financial statement for the
2.34school year ending June 30, 1977 reveals that a statutory operating debt might exist, the
3.1commissioner shall require a verification of the amount of the statutory operating debt
3.2which actually does exist.

3.3    Sec. 4. Minnesota Statutes 2007 Supplement, section 123B.81, subdivision 4, is
3.4amended to read:
3.5    Subd. 4. Debt elimination. If an audit or other verification procedure conducted
3.6pursuant to subdivision 3 determines that a statutory operating debt exists, a district
3.7must follow the procedures set forth in this section 123B.83 to eliminate this statutory
3.8operating debt.

3.9    Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:
3.10    Subd. 5. Certification of debt. The commissioner shall certify the amount of
3.11statutory operating debt for each district. Prior to June 30, 1979, the commissioner may,
3.12on the basis of corrected figures, adjust the total amount of statutory operating debt
3.13certified for any district.

3.14    Sec. 6. Minnesota Statutes 2006, section 123B.83, subdivision 3, is amended to read:
3.15    Subd. 3. Failure to limit expenditures. If a district does not limit its expenditures in
3.16accordance with this section, the commissioner may so notify the appropriate committees
3.17of the legislature by no later than January 1 February 15 of the year following the end
3.18of that fiscal year.

3.19    Sec. 7. Minnesota Statutes 2006, section 124D.10, subdivision 6a, is amended to read:
3.20    Subd. 6a. Audit report. (a) The charter school must submit an audit report to the
3.21commissioner by December 31 each year.
3.22    (b) The charter school, with the assistance of the auditor conducting the audit, must
3.23include with the report a copy of all charter school agreements for corporate management
3.24services. If the entity that provides the professional services to the charter school is
3.25exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity
3.26must file with the commissioner by February 15 a copy of the annual return required under
3.27section 6033 of the Internal Revenue Code of 1986.
3.28    (c) If the commissioner receives as part of the an audit report a management letter
3.29indicating that a material weakness exists in the financial reporting systems of a charter
3.30school, the charter school must submit a written report to the commissioner explaining
3.31how the material weakness will be resolved.
3.32    (d) Upon the request of an individual, the charter school must make available in a
3.33timely fashion the minutes of meetings of members, the board of directors, and committees
4.1having any of the authority of the board of directors, and statements showing the financial
4.2result of all operations and transactions affecting income and surplus during the school's
4.3last annual accounting period and a balance sheet containing a summary of its assets and
4.4liabilities as of the closing date of the accounting period.

4.5    Sec. 8. Minnesota Statutes 2006, section 124D.10, subdivision 8, is amended to read:
4.6    Subd. 8. State and local requirements. (a) A charter school shall meet all
4.7applicable federal, state, and local health and safety requirements applicable to school
4.8districts.
4.9    (b) A school sponsored by a school board may be located in any district, unless the
4.10school board of the district of the proposed location disapproves by written resolution.
4.11    (c) A charter school must be nonsectarian in its programs, admission policies,
4.12employment practices, and all other operations. A sponsor may not authorize a charter
4.13school or program that is affiliated with a nonpublic sectarian school or a religious
4.14institution.
4.15    (d) Charter schools must not be used as a method of providing education or
4.16generating revenue for students who are being home-schooled.
4.17    (e) The primary focus of a charter school must be to provide a comprehensive
4.18program of instruction for at least one grade or age group from five through 18 years
4.19of age. Instruction may be provided to people younger than five years and older than
4.2018 years of age.
4.21    (f) A charter school may not charge tuition.
4.22    (g) A charter school is subject to and must comply with chapter 363A and section
4.23121A.04 .
4.24    (h) A charter school is subject to and must comply with the Pupil Fair Dismissal
4.25Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
4.26123B.34 to 123B.39.
4.27    (i) A charter school is subject to the same financial audits, audit procedures, and
4.28audit requirements as a district. Audits must be conducted in compliance with generally
4.29accepted governmental auditing standards, the Federal Single Audit Act, if applicable,
4.30and section 6.65. A charter school is subject to and must comply with sections 15.054;
4.31118A.01 ; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
4.32471.38 ; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13,
4.33and 15 ; 471.881; and 471.89. The audit must comply with the requirements of sections
4.34123B.75 to 123B.83, except to the extent deviations are necessary because of the program
4.35at the school. Deviations must be approved by the commissioner. The Department
5.1of Education, state auditor, or legislative auditor may conduct financial, program, or
5.2compliance audits. A charter school determined to be in statutory operating debt under
5.3sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
5.4    (j) A charter school is a district for the purposes of tort liability under chapter 466.
5.5    (k) A charter school must comply with sections 13.32; 120A.22, subdivision 7;
5.6121A.75 ; and 260B.171, subdivisions 3 and 5.
5.7    (l) A charter school is subject to the Pledge of Allegiance requirement under section
5.8121A.11, subdivision 3 .

5.9    Sec. 9. Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:
5.10    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
5.11The duration of the contract with a sponsor must be for the term contained in the contract
5.12according to subdivision 6. The sponsor may or may not renew a contract at the end of
5.13the term for any ground listed in paragraph (b). A sponsor may unilaterally terminate a
5.14contract during the term of the contract for any ground listed in paragraph (b). At least 60
5.15days before not renewing or terminating a contract, the sponsor shall notify the board of
5.16directors of the charter school of the proposed action in writing. The notice shall state the
5.17grounds for the proposed action in reasonable detail and that the charter school's board of
5.18directors may request in writing an informal hearing before the sponsor within 14 days
5.19of receiving notice of nonrenewal or termination of the contract. Failure by the board of
5.20directors to make a written request for a hearing within the 14-day period shall be treated
5.21as acquiescence to the proposed action. Upon receiving a timely written request for a
5.22hearing, the sponsor shall give reasonable notice to the charter school's board of directors
5.23of the hearing date. The sponsor shall conduct an informal hearing before taking final
5.24action. The sponsor shall take final action to renew or not renew a contract by the last day
5.25of classes in the school year. If the sponsor is a local board, the school's board of directors
5.26may appeal the sponsor's decision to the commissioner.
5.27    (b) A contract may be terminated or not renewed upon any of the following grounds:
5.28    (1) failure to meet the requirements for pupil performance contained in the contract;
5.29    (2) failure to meet generally accepted standards of fiscal management;
5.30    (3) violations of law; or
5.31    (4) other good cause shown.
5.32    If a contract is terminated or not renewed under this paragraph, the school must be
5.33dissolved according to the applicable provisions of chapter 308A or 317A, except when
5.34the commissioner approves the decision of a different eligible sponsor to authorize the
5.35charter school.
6.1    (c) If at the end of a contract term, either the sponsor or the charter school board of
6.2directors wants to voluntarily terminate the contract, a change in sponsors is allowed if the
6.3commissioner approves the decision of a different eligible sponsor to authorize the charter
6.4school. The commissioner shall consider whether the charter school and prospective
6.5new sponsor have addressed any outstanding issues raised by the previous sponsor when
6.6determining whether to grant the change of sponsor. The party intending to terminate the
6.7contract must notify the other party and the commissioner of its intent at least 90 days
6.8before the date on which the contract ends. The sponsor that is a party to the existing
6.9contract at least must inform the approved different eligible sponsor about the fiscal and
6.10student performance of the school. If no different eligible sponsor is approved, the school
6.11must be dissolved according to applicable law and the terms of the contract.
6.12    (d) The commissioner, after providing reasonable notice to the board of directors
6.13of a charter school and the existing sponsor, and after providing an opportunity for a
6.14public hearing, may terminate the existing sponsorial relationship if the charter school
6.15has a history of:
6.16    (1) financial mismanagement; or
6.17    (2) repeated violations of the law.

6.18    Sec. 10. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34,
6.19is amended to read:
6.20    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years
6.212007 and later, 2008, and 2009, the basic alternative teacher compensation aid for a
6.22school district with a plan approved under section 122A.414, subdivision 2b, equals 65
6.2373.1 percent of the alternative teacher compensation revenue under section 122A.415,
6.24subdivision 1 . The basic alternative teacher compensation aid for an intermediate school
6.25district or charter school with a plan approved under section 122A.414, subdivisions 2a
6.26and 2b , if the recipient is a charter school, equals $260 times the number of pupils enrolled
6.27in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
6.28year for a charter school in the first year of operation, times the ratio of the sum of the
6.29alternative teacher compensation aid and alternative teacher compensation levy for all
6.30participating school districts to the maximum alternative teacher compensation revenue
6.31for those districts under section 122A.415, subdivision 1.
6.32    (b) For fiscal years 2010 and later, the basic alternative teacher compensation aid
6.33for a school district with a plan approved under section 122A.414, subdivision 2b, equals
6.3465 percent of the alternative teacher compensation revenue under section 122A.415,
6.35subdivision 1. The basic alternative teacher compensation aid for an intermediate school
7.1district or charter school with a plan approved under section 122A.414, subdivisions 2a
7.2and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled
7.3in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
7.4year for a charter school in the first year of operation, times the ratio of the sum of the
7.5alternative teacher compensation aid and alternative teacher compensation levy for all
7.6participating school districts to the maximum alternative teacher compensation revenue
7.7for those districts under section 122A.415, subdivision 1.
7.8    (b) (c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
7.91 , the state total basic alternative teacher compensation aid entitlement must not exceed
7.10$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount
7.11of alternative teacher compensation aid approved under section 122A.415 so as not to
7.12exceed these limits.
7.13EFFECTIVE DATE.This section is effective the day following final enactment.

7.14    Sec. 11. Minnesota Statutes 2006, section 126C.40, subdivision 6, is amended to read:
7.15    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
7.16by, the commissioner in accordance with the procedures and limits in subdivision 1,
7.17paragraphs (a) and (b), a district, as defined in this subdivision, may:
7.18    (1) purchase real or personal property under an installment contract or may lease
7.19real or personal property with an option to purchase under a lease purchase agreement, by
7.20which installment contract or lease purchase agreement title is kept by the seller or vendor
7.21or assigned to a third party as security for the purchase price, including interest, if any; and
7.22    (2) annually levy the amounts necessary to pay the district's obligations under the
7.23installment contract or lease purchase agreement.
7.24    (b) The obligation created by the installment contract or the lease purchase
7.25agreement must not be included in the calculation of net debt for purposes of section
7.26475.53 , and does not constitute debt under other law. An election is not required in
7.27connection with the execution of the installment contract or the lease purchase agreement.
7.28    (c) The proceeds of the levy authorized by this subdivision must not be used to
7.29acquire a facility to be primarily used for athletic or school administration purposes.
7.30    (d) For the purposes of this subdivision, "district" means:
7.31    (1) a racially isolated school district or a school district with a racially identifiable
7.32school required to have a comprehensive desegregation or integration plan for the
7.33elimination of segregation under Minnesota Rules, parts 3535.0100 to 3535.0180, which
7.34is eligible for revenue under section 124D.86, subdivision 3, clause (1), (2), or (3),
7.35and whose plan has been determined by the commissioner to be in compliance with
8.1Department of Education rules relating to equality of educational opportunity and school
8.2desegregation and, for a district eligible for revenue under section 124D.86, subdivision 3,
8.3clause (4) or (5), where the acquisition of property under this subdivision is determined by
8.4the commissioner to contribute to the implementation of the desegregation plan; or
8.5    (2) a school district that participates in a joint program for interdistrict desegregation
8.6with a district defined in clause (1) if the facility acquired under this subdivision is to
8.7be primarily used for the joint program and the commissioner determines that the joint
8.8programs are being undertaken to implement the districts' desegregation plan.
8.9    (e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
8.10or rent a district-owned building to itself does not apply to levies otherwise authorized
8.11by this subdivision.
8.12    (f) For the purposes of this subdivision, any references in subdivision 1 to building
8.13or land shall include personal property.

8.14    Sec. 12. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is
8.15amended to read:
8.16    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
8.17375.192 , or otherwise, the net tax capacity or referendum market value of any district for
8.18any taxable year is changed after the taxes for that year have been spread by the county
8.19auditor and the local tax rate as determined by the county auditor based upon the original
8.20net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
8.21prior to February 1 of each year, certify to the commissioner of education the amount of
8.22any resulting net revenue loss that accrued to the district during the preceding year. Each
8.23year, the commissioner shall pay an abatement adjustment to the district in an amount
8.24calculated according to the provisions of this subdivision. This amount shall be deducted
8.25from the amount of the levy authorized by section 126C.46. The amount of the abatement
8.26adjustment must be the product of:
8.27    (1) the net revenue loss as certified by the county auditor, times
8.28    (2) the ratio of:
8.29    (i) the sum of the amounts of the district's certified levy in the third preceding year
8.30according to the following:
8.31    (A) section 123B.57, if the district received health and safety aid according to that
8.32section for the second preceding year;
8.33    (B) section 124D.20, if the district received aid for community education programs
8.34according to that section for the second preceding year;
9.1    (C) section 124D.135, subdivision 3, if the district received early childhood family
9.2education aid according to section 124D.135 for the second preceding year;
9.3    (D) section 126C.17, subdivision 6, if the district received referendum equalization
9.4aid according to that section for the second preceding year;
9.5    (E) section 126C.13, if the district received general education aid according to
9.6section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
9.7preceding year;
9.8    (F) (E) section 126C.10, subdivision 13a, if the district received operating capital aid
9.9according to section 126C.10, subdivision 13b, in the second preceding year;
9.10    (G) (F) section 126C.10, subdivision 29, if the district received equity aid according
9.11to section 126C.10, subdivision 30, in the second preceding year;
9.12    (H) (G) section 126C.10, subdivision 32, if the district received transition aid
9.13according to section 126C.10, subdivision 33, in the second preceding year;
9.14    (I) (H) section 123B.53, subdivision 5, if the district received debt service
9.15equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
9.16    (J) (I) section 124D.22, subdivision 3, if the district received school-age care aid
9.17according to section 124D.22, subdivision 4, in the second preceding year;
9.18    (K) (J) section 123B.591, subdivision 3, if the district received deferred maintenance
9.19aid according to section 123B.591, subdivision 4, in the second preceding year; and
9.20    (L) (K) section 126C.10, subdivision 35, if the district received alternative teacher
9.21compensation equalization aid according to section 126C.10, subdivision 36, paragraph
9.22(a), in the second preceding year; to
9.23    (ii) the total amount of the district's certified levy in the third preceding December,
9.24plus or minus auditor's adjustments.

9.25    Sec. 13. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is
9.26amended to read:
9.27    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
9.28district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
9.29decertification of a tax increment district, the school district's aid and levy limitations
9.30must be adjusted for the fiscal year in which the excess tax increment is paid under the
9.31provisions of this subdivision.
9.32    (b) An amount must be subtracted from the district's aid for the current fiscal year
9.33equal to the product of:
9.34    (1) the amount of the payment of excess tax increment to the district, times
9.35    (2) the ratio of:
10.1    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
10.2the excess tax increment is paid according to the following:
10.3    (A) section 123B.57, if the district received health and safety aid according to that
10.4section for the second preceding year;
10.5    (B) section 124D.20, if the district received aid for community education programs
10.6according to that section for the second preceding year;
10.7    (C) section 124D.135, subdivision 3, if the district received early childhood family
10.8education aid according to section 124D.135 for the second preceding year;
10.9    (D) section 126C.17, subdivision 6, if the district received referendum equalization
10.10aid according to that section for the second preceding year;
10.11    (E) section 126C.13, if the district received general education aid according to
10.12section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
10.13preceding year;
10.14    (F) (E) section 126C.10, subdivision 13a, if the district received operating capital aid
10.15according to section 126C.10, subdivision 13b, in the second preceding year;
10.16    (G) (F) section 126C.10, subdivision 29, if the district received equity aid according
10.17to section 126C.10, subdivision 30, in the second preceding year;
10.18    (H) (G) section 126C.10, subdivision 32, if the district received transition aid
10.19according to section 126C.10, subdivision 33, in the second preceding year;
10.20    (I) (H) section 123B.53, subdivision 5, if the district received debt service
10.21equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
10.22    (J) (I) section 124D.22, subdivision 3, if the district received school-age care aid
10.23according to section 124D.22, subdivision 4, in the second preceding year;
10.24    (K) (J) section 123B.591, subdivision 3, if the district received deferred maintenance
10.25aid according to section 123B.591, subdivision 4, in the second preceding year; and
10.26    (L) (K) section 126C.10, subdivision 35, if the district received alternative teacher
10.27compensation equalization aid according to section 126C.10, subdivision 36, paragraph
10.28(a), in the second preceding year; to
10.29    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
10.30auditor's adjustments.
10.31    (c) An amount must be subtracted from the school district's levy limitation for the
10.32next levy certified equal to the difference between:
10.33    (1) the amount of the distribution of excess increment; and
10.34    (2) the amount subtracted from aid pursuant to clause (a).
10.35    If the aid and levy reductions required by this subdivision cannot be made to the aid
10.36for the fiscal year specified or to the levy specified, the reductions must be made from
11.1aid for subsequent fiscal years, and from subsequent levies. The school district must use
11.2the payment of excess tax increment to replace the aid and levy revenue reduced under
11.3this subdivision.
11.4    (d) This subdivision applies only to the total amount of excess increments received
11.5by a district for a calendar year that exceeds $25,000.


11.8    Section 1. Minnesota Statutes 2006, section 120B.02, is amended to read:
11.9120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
11.10STUDENTS.
11.11    (a) The legislature is committed to establishing rigorous academic standards for
11.12Minnesota's public school students. To that end, the commissioner shall adopt in rule
11.13statewide academic standards. The commissioner shall not prescribe in rule or otherwise
11.14the delivery system, classroom assessments, or form of instruction that school sites must
11.15use. For purposes of this chapter, a school site is a separate facility, or a separate program
11.16within a facility that a local school board recognizes as a school site for funding purposes.
11.17    (b) All commissioner actions regarding the rule must be premised on the following:
11.18    (1) the rule is intended to raise academic expectations for students, teachers, and
11.19schools;
11.20    (2) any state action regarding the rule must evidence consideration of school district
11.21autonomy; and
11.22    (3) the Department of Education, with the assistance of school districts, must make
11.23available information about all state initiatives related to the rule to students and parents,
11.24teachers, and the general public in a timely format that is appropriate, comprehensive, and
11.25readily understandable.
11.26    (c) When fully implemented, the requirements for high school graduation in
11.27Minnesota must require students to satisfactorily complete, as determined by the school
11.28district, the course credit requirements under section 120B.024 and: successfully pass
11.29graduation examinations as required under section 120B.30.
11.30    (1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the
11.31basic skills test requirements; and
11.32    (2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass
11.33the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
11.34    (d) The commissioner shall periodically review and report on the state's assessment
11.35process.
12.1    (e) School districts are not required to adopt specific provisions of the federal
12.2School-to-Work programs.

12.3    Sec. 2. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, is
12.4amended to read:
12.5    Subdivision 1. Required academic standards. The following subject areas are
12.6required for statewide accountability:
12.7    (1) language arts;
12.8    (2) mathematics;
12.9    (3) science;
12.10    (4) social studies, including history, geography, economics, and government and
12.11citizenship;
12.12    (5) health and physical education, for which locally developed academic standards
12.13apply; and
12.14    (6) the arts, for which statewide or locally developed academic standards apply, as
12.15determined by the school district. Public elementary and middle schools must offer at least
12.16three and require at least two of the following four arts areas: dance; music; theater; and
12.17visual arts. Public high schools must offer at least three and require at least one of the
12.18following five arts areas: media arts; dance; music; theater; and visual arts.
12.19    The commissioner must submit proposed standards in science and social studies to
12.20the legislature by February 1, 2004.
12.21For purposes of applicable federal law, the academic standards for language arts,
12.22mathematics, and science apply to all public school students, except the very few students
12.23with extreme cognitive or physical impairments for whom an individualized education
12.24plan team has determined that the required academic standards are inappropriate. An
12.25individualized education plan team that makes this determination must establish alternative
12.26standards with appropriate alternate achievement standards based on these academic
12.27standards for students with individualized education plans as described under federal law.
12.28    A school district, no later than the 2007-2008 school year, must adopt graduation
12.29requirements that meet or exceed state graduation requirements established in law or
12.30rule. A school district that incorporates these state graduation requirements before the
12.312007-2008 school year must provide students who enter the 9th grade in or before
12.32the 2003-2004 school year the opportunity to earn a diploma based on existing locally
12.33established graduation requirements in effect when the students entered the 9th grade.
12.34District efforts to develop, implement, or improve instruction or curriculum as a result
13.1of the provisions of this section must be consistent with sections 120B.10, 120B.11,
13.2and 120B.20.
13.3    The commissioner must include the contributions of Minnesota American Indian
13.4tribes and communities as they relate to the academic standards during the review and
13.5revision of the required academic standards.

13.6    Sec. 3. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
13.7    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
13.8revise and appropriately embed technology and information literacy standards consistent
13.9with recommendations from school media specialists into the state's academic standards
13.10and graduation requirements and implement a review cycle for state academic standards
13.11and related benchmarks, consistent with this subdivision. During each review cycle, the
13.12commissioner also must examine the alignment of each required academic standard and
13.13related benchmark with the knowledge and skills students need for college readiness and
13.14advanced work in the particular subject area.
13.15    (b) The commissioner in the 2006-2007 school year must revise and align the state's
13.16academic standards and high school graduation requirements in mathematics to require
13.17that students satisfactorily complete the revised mathematics standards, beginning in the
13.182010-2011 school year. Under the revised standards:
13.19    (1) students must satisfactorily complete an algebra I credit by the end of eighth
13.20grade; and
13.21    (2) students scheduled to graduate in the 2014-2015 school year or later must
13.22satisfactorily complete an algebra II credit or its equivalent.
13.23The commissioner also must ensure that the statewide mathematics assessments
13.24administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school
13.25year are aligned with the state academic standards in mathematics. The commissioner
13.26must ensure that the statewide 11th grade mathematics test assessment administered to
13.27students under clause (2) in grade 11 beginning in the 2013-2014 school year must
13.28include is aligned with state academic standards in mathematics, including algebra II test
13.29items that are aligned with corresponding state academic standards in mathematics. The
13.30commissioner must implement a review of the academic standards and related benchmarks
13.31in mathematics beginning in the 2015-2016 school year.
13.32    (c) The commissioner in the 2007-2008 school year must revise and align the state's
13.33academic standards and high school graduation requirements in the arts to require that
13.34students satisfactorily complete the revised arts standards beginning in the 2010-2011
14.1school year. The commissioner must implement a review of the academic standards and
14.2related benchmarks in arts beginning in the 2016-2017 school year.
14.3    (d) The commissioner in the 2008-2009 school year must revise and align the state's
14.4academic standards and high school graduation requirements in science to require that
14.5students satisfactorily complete the revised science standards, beginning in the 2011-2012
14.6school year. The commissioner also must ensure that the statewide science assessments
14.7administered to students as described under section 120B.30, subdivision 1a, beginning
14.8in the 2011-2012 school year are aligned with the state academic standards in science.
14.9Under the revised standards, students scheduled to graduate in the 2014-2015 school year
14.10or later must satisfactorily complete a chemistry or physics credit. The commissioner
14.11must implement a review of the academic standards and related benchmarks in science
14.12beginning in the 2017-2018 school year.
14.13    (e) The commissioner in the 2009-2010 school year must revise and align the state's
14.14academic standards and high school graduation requirements in language arts to require
14.15that students satisfactorily complete the revised language arts standards beginning in the
14.162012-2013 school year. The commissioner also must ensure that the statewide language
14.17arts assessments administered to students in grades 3 through 8 and grade 10 beginning
14.18in the 2012-2013 school year are aligned with the state academic standards in language
14.19arts. The commissioner must implement a review of the academic standards and related
14.20benchmarks in language arts beginning in the 2018-2019 school year.
14.21    (f) The commissioner in the 2010-2011 school year must revise and align the state's
14.22academic standards and high school graduation requirements in social studies to require
14.23that students satisfactorily complete the revised social studies standards beginning in the
14.242013-2014 school year. The commissioner must implement a review of the academic
14.25standards and related benchmarks in social studies beginning in the 2019-2020 school year.
14.26    (g) School districts and charter schools must revise and align local academic
14.27standards and high school graduation requirements in health, physical education, world
14.28languages, and career and technical education to require students to complete the revised
14.29standards beginning in a school year determined by the school district or charter school.
14.30School districts and charter schools must formally establish a periodic review cycle for
14.31the academic standards and related benchmarks in health, physical education, world
14.32languages, and career and technical education.

14.33    Sec. 4. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:
14.34    Subd. 2. Reimbursement for examination fees. The state may reimburse
14.35college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
15.1school student who has successfully completed one or more college-level courses in high
15.2school in the subject matter of each examination in the following subjects: composition
15.3and literature, mathematics and science, social sciences and history, foreign languages, and
15.4business and humanities. The state may reimburse each student for up to six examination
15.5fees. The commissioner shall establish application procedures and a process and schedule
15.6for fee reimbursements. The commissioner must give priority to reimburse the CLEP
15.7examination fees of students of low-income families.

15.8    Sec. 5. Minnesota Statutes 2007 Supplement, section 120B.15, is amended to read:
15.9120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
15.10    (a) School districts may identify students, locally develop programs, provide
15.11staff development, and evaluate programs to provide gifted and talented students with
15.12challenging educational programs.
15.13    (b) School districts may adopt guidelines for assessing and identifying students for
15.14participation in gifted and talented programs. The guidelines should include the use of:
15.15    (1) multiple and objective criteria; and
15.16    (2) assessments and procedures that are valid and reliable, fair, and based on current
15.17theory and research.; and
15.18    (3) an identification appeals process.
15.19    (c) School districts must adopt procedures for the academic acceleration of gifted
15.20and talented students. These procedures must include how the district will:
15.21    (1) assess a student's readiness and motivation for acceleration; and
15.22    (2) match the level, complexity, and pace of the curriculum to a student to achieve
15.23the best type of academic acceleration for that student.

15.24    Sec. 6. [120B.299] DEFINITIONS.
15.25    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
15.26    Subd. 2. Growth. "Growth" compares the difference between a student's
15.27achievement score at two distinct points in time.
15.28    Subd. 3. Value-added. "Value-added" are models that require longitudinal,
15.29student-level data and vertically scaled assessments to determine what portion of a
15.30student's growth can be explained by inputs related to the environment, school, teacher,
15.31and student, among other inputs.
15.32    Subd. 4. Improvement. "Improvement" compares the average achievement of two
15.33different groups of students at two different points in time. Growth, unlike improvement,
15.34allows educators to compare one student's achievement over time.
16.1    Subd. 5. State growth expectations. "State growth expectations" are an
16.2established statewide growth percentile or standard applicable to all students in a
16.3particular grade benchmarked to an established school year. Beginning in the 2008-2009
16.4school year, state growth expectations are benchmarked to 2007-2008 school year
16.5data until the commissioner next changes the vertically linked scale score. Each time
16.6the commissioner changes the vertically linked scale score, a recognized Minnesota
16.7assessment group composed of assessment and evaluation directors and staff and
16.8researchers, in collaboration with the Independent Office of Educational Accountability
16.9under section 120B.31, subdivision 3, must recommend new state growth expectations
16.10that the commissioner shall consider with the revised standards. For all newly established
16.11state growth expectations, the commissioner also must establish criteria for identifying
16.12schools and school districts that demonstrate exceptional growth in order to advance
16.13educators' professional development and to replicate programs that succeed in meeting
16.14students' diverse learning needs.
16.15EFFECTIVE DATE.This section is effective the day following final enactment.

16.16    Sec. 7. Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1, is
16.17amended to read:
16.18    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
16.19with appropriate technical qualifications and experience and stakeholders, consistent with
16.20subdivision 1a, shall include in the comprehensive assessment system, for each grade
16.21level to be tested, state-constructed tests developed from and aligned with the state's
16.22required academic standards under section 120B.021 and administered annually to all
16.23students in grades 3 through 8 and at the high school level. A state-developed test in a
16.24subject other than writing, developed after the 2002-2003 school year, must include both
16.25machine-scoreable and constructed response questions. The commissioner shall establish
16.26one or more months during which schools shall administer the tests to students each
16.27school year. Schools selected for stand-alone state field testing or other national sampling
16.28by the department must participate as requested. Superintendents or charter school
16.29directors may appeal in writing to the commissioner of education or the commissioner's
16.30designee for exemption from a selected field test if undue hardship is demonstrated. For
16.31students enrolled in grade 8 before the 2005-2006 school year, only Minnesota basic
16.32skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing
16.33requirements for a passing state notation. The passing scores of basic skills tests in reading
16.34and mathematics are the equivalent of 75 percent correct for students entering grade 9 in
16.351997 and thereafter, as based on the first uniform test administration of February 1998.
17.1    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
17.2following options shall fulfill students' state graduation test requirements:
17.3    (1) for reading and mathematics:
17.4    (i) obtaining an achievement level equivalent to or greater than proficient as
17.5determined through a standard setting process on the Minnesota comprehensive
17.6assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
17.7score as determined through a standard setting process on the graduation-required
17.8assessment for diploma in grade 10 for reading and grade 11 for mathematics or
17.9subsequent retests;
17.10    (ii) achieving a passing score as determined through a standard setting process on the
17.11state-identified language proficiency test in reading and the mathematics test for English
17.12language learners or the graduation-required assessment for diploma equivalent of those
17.13assessments for students designated as English language learners;
17.14    (iii) achieving an individual passing score on the graduation-required assessment
17.15for diploma as determined by appropriate state guidelines for students with an individual
17.16education plan or 504 plan;
17.17    (iv) obtaining achievement level equivalent to or greater than proficient as
17.18determined through a standard setting process on the state-identified alternate assessment
17.19or assessments in grade 10 for reading and grade 11 for mathematics for students with
17.20an individual education plan; or
17.21    (v) achieving an individual passing score on the state-identified alternate assessment
17.22or assessments as determined by appropriate state guidelines for students with an
17.23individual education plan; and
17.24    (2) for writing:
17.25    (i) achieving a passing score on the graduation-required assessment for diploma;
17.26    (ii) achieving a passing score as determined through a standard setting process on
17.27the state-identified language proficiency test in writing for students designated as English
17.28language learners;
17.29    (iii) achieving an individual passing score on the graduation-required assessment
17.30for diploma as determined by appropriate state guidelines for students with an individual
17.31education plan or 504 plan; or
17.32    (iv) achieving an individual passing score on the state-identified alternate assessment
17.33or assessments as determined by appropriate state guidelines for students with an
17.34individual education plan.
17.35     (c) The 3rd through 8th grade and high school level test results shall be available
17.36to districts for diagnostic purposes affecting student learning and district instruction and
18.1curriculum, and for establishing educational accountability. The commissioner must
18.2disseminate to the public the test results upon receiving those results.
18.3     (d) State tests must be constructed and aligned with state academic standards. The
18.4testing process and the order of administration shall be determined by the commissioner.
18.5The statewide results shall be aggregated at the site and district level, consistent with
18.6subdivision 1a.
18.7     (e) In addition to the testing and reporting requirements under this section, the
18.8commissioner shall include the following components in the statewide public reporting
18.9system:
18.10    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
18.11school level that provides appropriate, technically sound accommodations, alternate
18.12assessments, or exemptions consistent with applicable federal law, only with parent or
18.13guardian approval, for those very few students for whom the student's individual education
18.14plan team under sections 125A.05 and 125A.06 determines that the general statewide test
18.15is inappropriate for a student, or for a limited English proficiency student under section
18.16124D.59, subdivision 2 ;
18.17    (2) educational indicators that can be aggregated and compared across school
18.18districts and across time on a statewide basis, including average daily attendance, high
18.19school graduation rates, and high school drop-out rates by age and grade level;
18.20    (3) state results on the American College Test; and
18.21    (4) state results from participation in the National Assessment of Educational
18.22Progress so that the state can benchmark its performance against the nation and other
18.23states, and, where possible, against other countries, and contribute to the national effort
18.24to monitor achievement.

18.25    Sec. 8. Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1, is
18.26amended to read:
18.27    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
18.28with appropriate technical qualifications and experience and stakeholders, consistent with
18.29subdivision 1a, shall include in the comprehensive assessment system, for each grade
18.30level to be tested, state-constructed tests developed from and aligned with the state's
18.31required academic standards under section 120B.021 and administered annually to all
18.32students in grades 3 through 8 and at the high school level. A state-developed test in a
18.33subject other than writing, developed after the 2002-2003 school year, must include both
18.34machine-scoreable and constructed response questions. The commissioner shall establish
18.35one or more months during which schools shall administer the tests to students each
19.1school year. For students enrolled in grade 8 before the 2005-2006 school year, only
19.2Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
19.3basic skills testing requirements for a passing state notation. The passing scores of basic
19.4skills tests in reading and mathematics are the equivalent of 75 percent correct for students
19.5entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of
19.6administered in February 1998.
19.7    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
19.8following options shall fulfill students' state graduation test requirements:
19.9    (1) for reading and mathematics:
19.10    (i) obtaining an achievement level equivalent to or greater than proficient as
19.11determined through a standard setting process on the Minnesota comprehensive
19.12assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
19.13score as determined through a standard setting process on the graduation-required
19.14assessment for diploma in grade 10 for reading and grade 11 for mathematics or
19.15subsequent retests;
19.16    (ii) achieving a passing score as determined through a standard setting process on the
19.17state-identified language proficiency test in reading and the mathematics test for English
19.18language learners or the graduation-required assessment for diploma equivalent of those
19.19assessments for students designated as English language learners;
19.20    (iii) achieving an individual passing score on the graduation-required assessment
19.21for diploma as determined by appropriate state guidelines for students with an individual
19.22education plan or 504 plan;
19.23    (iv) obtaining achievement level equivalent to or greater than proficient as
19.24determined through a standard setting process on the state-identified alternate assessment
19.25or assessments in grade 10 for reading and grade 11 for mathematics for students with
19.26an individual education plan; or
19.27    (v) achieving an individual passing score on the state-identified alternate assessment
19.28or assessments as determined by appropriate state guidelines for students with an
19.29individual education plan; and
19.30    (2) for writing:
19.31    (i) achieving a passing score on the graduation-required assessment for diploma;
19.32    (ii) achieving a passing score as determined through a standard setting process on
19.33the state-identified language proficiency test in writing for students designated as English
19.34language learners;
20.1    (iii) achieving an individual passing score on the graduation-required assessment
20.2for diploma as determined by appropriate state guidelines for students with an individual
20.3education plan or 504 plan; or
20.4    (iv) achieving an individual passing score on the state-identified alternate assessment
20.5or assessments as determined by appropriate state guidelines for students with an
20.6individual education plan.
20.7     (c) The 3rd through 8th grade and high school level test results shall be available
20.8to districts for diagnostic purposes affecting student learning and district instruction and
20.9curriculum, and for establishing educational accountability. The commissioner must
20.10disseminate to the public the test results upon receiving those results.
20.11     (d) State tests must be constructed and aligned with state academic standards. The
20.12commissioner shall determine the testing process and the order of administration shall be
20.13determined by the commissioner. The statewide results shall be aggregated at the site and
20.14district level, consistent with subdivision 1a.
20.15     (e) In addition to the testing and reporting requirements under this section, the
20.16commissioner shall include the following components in the statewide public reporting
20.17system:
20.18    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
20.19school level that provides appropriate, technically sound accommodations, alternate
20.20assessments, or exemptions consistent with applicable federal law, only with parent or
20.21guardian approval, for those very few students for whom the student's individual education
20.22plan team under sections 125A.05 and 125A.06 determines that the general statewide test
20.23is inappropriate for a student, or for a limited English proficiency student under section
20.24124D.59, subdivision 2 ;
20.25    (2) educational indicators that can be aggregated and compared across school
20.26districts and across time on a statewide basis, including average daily attendance, high
20.27school graduation rates, and high school drop-out rates by age and grade level;
20.28    (3) state results on the American College Test; and
20.29    (4) state results from participation in the National Assessment of Educational
20.30Progress so that the state can benchmark its performance against the nation and other
20.31states, and, where possible, against other countries, and contribute to the national effort
20.32to monitor achievement.

20.33    Sec. 9. Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1a, is
20.34amended to read:
21.1    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must
21.2develop reading, mathematics, and science assessments aligned with state academic
21.3standards that districts and sites must use to monitor student growth toward achieving
21.4those standards. The commissioner must not develop statewide assessments for academic
21.5standards in social studies, health and physical education, and the arts. The commissioner
21.6must require:
21.7    (1) annual reading and mathematics assessments in grades 3 through 8 and at the
21.8high school level for the 2005-2006 school year and later; and
21.9    (2) annual science assessments in one grade in the grades 3 through 5 span, the
21.10grades 6 through 9 8 span, and a life sciences assessment in the grades 10 9 through 12
21.11span for the 2007-2008 school year and later.
21.12    (b) The commissioner must ensure that all statewide tests administered to elementary
21.13and secondary students measure students' academic knowledge and skills and not students'
21.14values, attitudes, and beliefs.
21.15    (c) Reporting of assessment results must:
21.16    (1) provide timely, useful, and understandable information on the performance of
21.17individual students, schools, school districts, and the state;
21.18    (2) include, by no later than the 2008-2009 school year, a value-added component
21.19that is in addition to a measure for student achievement growth over time growth indicator
21.20of student achievement under section 120B.35, subdivision 3, paragraph (b); and
21.21    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
21.22whether students have met the state's basic skills requirements; and
21.23    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
21.24whether students have met the state's academic standards.
21.25    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
21.26(1), the commissioner must include appropriate, technically sound accommodations or
21.27alternative assessments for the very few students with disabilities for whom statewide
21.28assessments are inappropriate and for students with limited English proficiency.
21.29    (e) A school, school district, and charter school must administer statewide
21.30assessments under this section, as the assessments become available, to evaluate student
21.31progress in achieving the proficiency in the context of the state's grade level academic
21.32standards. If a state assessment is not available, a school, school district, and charter
21.33school must determine locally if a student has met the required academic standards. A
21.34school, school district, or charter school may use a student's performance on a statewide
21.35assessment as one of multiple criteria to determine grade promotion or retention. A
21.36school, school district, or charter school may use a high school student's performance on a
22.1statewide assessment as a percentage of the student's final grade in a course, or place a
22.2student's assessment score on the student's transcript, except as required in paragraph (f).
22.3    (f) A school, district, or charter school must place a student's assessment score
22.4for grade 9 writing, grade 10 language arts, and grade 11 mathematics on the student's
22.5high school transcript.

22.6    Sec. 10. Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 4, is
22.7amended to read:
22.8    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
22.9to provide public and parental access for review of basic skills tests, Minnesota
22.10Comprehensive Assessments, or any other such statewide test and assessment. Upon
22.11receiving a written request, the commissioner must make available to parents or guardians
22.12a copy of their student's actual responses to the test questions to be reviewed by the
22.13parent for their review.

22.14    Sec. 11. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
22.15146, article 2, section 10, is amended to read:
22.16120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
22.17ADJUSTMENTS.
22.18    Subdivision 1. Educational accountability and public reporting. Consistent
22.19with the process direction to adopt a results-oriented graduation rule statewide academic
22.20standards under section 120B.02, the department, in consultation with education and
22.21other system stakeholders, must establish and maintain a coordinated and comprehensive
22.22system of educational accountability and public reporting that promotes higher academic
22.23achievement, preparation for higher academic education, preparation for the world of
22.24work, citizenship consistent with the requirements under sections 120B.021, subdivision
22.251, clause (4), and 120B.024, paragraph (a), clause (4), and the arts.
22.26    Subd. 2. Statewide testing. Each school year, all school districts shall give a
22.27uniform statewide test to students at specified grades to provide information on the status,
22.28needs and performance of Minnesota students.
22.29    Subd. 3. Educational accountability. (a) The Independent Office of Educational
22.30Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
22.31section 28, subdivision 2, is established, and shall be funded through the Board of Regents
22.32of the University of Minnesota. The office shall advise the education committees of
22.33the legislature and the commissioner of education, at least on a biennial basis, on the
22.34degree to which the statewide educational accountability and reporting system includes a
23.1comprehensive assessment framework that measures school accountability for students
23.2achieving the goals described in the state's results-oriented high school graduation
23.3rule. The office shall determine and annually report to the legislature whether and how
23.4effectively:
23.5    (1) the statewide system of educational accountability utilizes uses multiple
23.6indicators to provide valid and reliable comparative and contextual data on students,
23.7schools, districts, and the state, and if not, recommend ways to improve the accountability
23.8reporting system;
23.9    (2) the commissioner makes statistical adjustments when reporting student data over
23.10time, consistent with clause (4);
23.11    (3) the commissioner uses indicators of student achievement growth over time
23.12and a value-added assessment model that estimates the effects of the school and school
23.13district on student achievement to measure school performance, consistent with section
23.14120B.36, subdivision 1 ;
23.15    (4) (3) the commissioner makes data available on students who do not pass one or
23.16more of the state's required GRAD tests and do not receive a diploma as a consequence,
23.17and categorizes these data according to gender, race, eligibility for free or reduced lunch,
23.18and English language proficiency; and
23.19    (5) (4) the commissioner fulfills the requirements under section 127A.095,
23.20subdivision 2 .
23.21    (b) When the office reviews the statewide educational accountability and reporting
23.22system, it shall also consider:
23.23    (1) the objectivity and neutrality of the state's educational accountability system; and
23.24    (2) the impact of a testing program on school curriculum and student learning.
23.25    Subd. 4. Statistical adjustments; student performance data. In developing
23.26policies and assessment processes to hold schools and districts accountable for high
23.27levels of academic standards under section 120B.021, the commissioner shall aggregate
23.28student data over time to report student performance and growth levels measured at the
23.29school, school district, regional, or and statewide level. When collecting and reporting
23.30the performance data, the commissioner shall: (1) acknowledge the impact of significant
23.31demographic factors such as residential instability, the number of single parent families,
23.32parents' level of education, and parents' income level on school outcomes; and (2)
23.33organize and report the data so that state and local policy makers can understand the
23.34educational implications of changes in districts' demographic profiles over time. Any
23.35report the commissioner disseminates containing summary data on student performance
24.1must integrate student performance and the demographic factors that strongly correlate
24.2with that performance.
24.3EFFECTIVE DATE.This section is effective the day following final enactment.

24.4    Sec. 12. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
24.5147, article 8, section 38, is amended to read:
24.6120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
24.7GROWTH.
24.8    Subdivision 1. Adequate yearly progress of schools and students School and
24.9student indicators of growth and achievement. The commissioner must develop and
24.10implement a system for measuring and reporting academic achievement and individual
24.11student progress growth, consistent with the statewide educational accountability and
24.12reporting system. The system components of the system must measure the adequate
24.13yearly progress of schools and the growth of individual students: students' current
24.14achievement in schools under subdivision 2; and individual students' educational
24.15progress growth over time under subdivision 3. The system also must include statewide
24.16measures of student academic achievement and growth that identify schools with high
24.17levels of achievement and growth, and also schools with low levels of achievement
24.18and growth that need improvement. When determining a school's effect, the data must
24.19include both statewide measures of student achievement and, to the extent annual tests
24.20are administered, indicators of achievement growth that take into account a student's
24.21prior achievement. Indicators of achievement and prior achievement must be based on
24.22highly reliable statewide or districtwide assessments. Indicators that take into account a
24.23student's prior achievement must not be used to disregard a school's low achievement or to
24.24exclude a school from a program to improve low achievement levels. The commissioner
24.25by January 15, 2002, must submit a plan for integrating these components to the chairs of
24.26the legislative committees having policy and budgetary responsibilities for elementary
24.27and secondary education.
24.28    Subd. 2. Student academic achievement. (a) Each school year, a school district
24.29must determine if the student achievement levels at each school site meet state and local
24.30expectations. If student achievement levels at a school site do not meet state and local
24.31expectations and the site has not made adequate yearly progress for two consecutive
24.32school years, beginning with the 2001-2002 school year, the district must work with
24.33the school site to adopt a plan to raise student achievement levels to meet state and
24.34local expectations. The commissioner of education shall establish student academic
24.35achievement levels to comply with this paragraph.
25.1    (b) School sites identified as not meeting expectations must develop continuous
25.2improvement plans under section 122A.413 in order to meet state and local expectations
25.3for student academic achievement. The department, at a district's request, must assist the
25.4district and the school site in developing a plan to improve student achievement. The plan
25.5must include parental involvement components.
25.6    (c) The commissioner must:
25.7    (1) provide assistance to assist school sites and districts identified as not meeting
25.8expectations; and
25.9    (2) provide technical assistance to schools that integrate student progress measures
25.10under subdivision 3 in the school continuous improvement plan.
25.11    (d) The commissioner shall establish and maintain a continuous improvement Web
25.12site designed to make data on every school and district available to parents, teachers,
25.13administrators, community members, and the general public.
25.14    Subd. 3. Student progress assessment growth; other state measures. (a)
25.15The state's educational assessment system component measuring individual students'
25.16educational progress must be growth is based, to the extent annual tests are administered,
25.17on indicators of achievement growth that show an individual student's prior achievement.
25.18Indicators of achievement and prior achievement must be based on highly reliable
25.19statewide or districtwide assessments.
25.20    (b) The commissioner must identify effective models for measuring individual
25.21student progress that enable a school district or school site to perform gains-based
25.22growth-based analysis, including evaluating the effects of the teacher, school, and school
25.23district on student achievement over time. At least one model must be A "value-added"
25.24assessment model that must reliably estimates estimate those effects for classroom settings
25.25where a single teacher teaches multiple subjects to the same group of students, for team
25.26teaching arrangements, and for other teaching circumstances.
25.27    (c) If a district has an accountability plan that includes gains-based growth-based
25.28analysis or "value-added" assessment, the commissioner shall, to the extent practicable,
25.29incorporate those measures in determining whether the district or school site meets
25.30expectations. The department must coordinate with the district in evaluating school sites
25.31and continuous improvement plans, consistent with best practices.
25.32    (d) When reporting student performance under section 120B.36, subdivision 1, the
25.33commissioner annually, beginning July 1, 2011, if funding permits, must report two core
25.34measures indicating the extent to which current high school graduates are being prepared
25.35for postsecondary academic and career opportunities:
26.1    (1) a preparation measure indicating the number and percentage of high school
26.2graduates in the most recent school year who completed course work important to
26.3preparing them for postsecondary academic and career opportunities, consistent with the
26.4core academic subjects required for admission to Minnesota's public four-year colleges
26.5and universities as determined by the Minnesota Office of Higher Education under chapter
26.6136A; and
26.7    (2) a rigorous coursework measure indicating the number and percentage of high
26.8school graduates in the most recent school year who successfully completed one or more
26.9college-level advanced placement, international baccalaureate, postsecondary enrollment
26.10options, other rigorous courses of study under section 120B.021, subdivision 1a, or
26.11industry certification courses.
26.12When reporting the core measures under clauses (1) and (2), the commissioner must also
26.13analyze and report separate categories of information using the nine student categories
26.14identified under the federal 2001 No Child Left Behind Act and two student gender
26.15categories of male and female, respectively.
26.16    Subd. 4. Improving schools. Consistent with the requirements of this section, the
26.17commissioner of education must establish a second achievement benchmark to identify
26.18improving schools. The commissioner must recommend to annually report to the public
26.19and the legislature by February 15, 2002, indicators in addition to the achievement
26.20benchmark for identifying improving schools, including an indicator requiring a school
26.21to demonstrate ongoing successful use of best teaching practices, to the extent funding
26.22permits, best practices learned from those schools that demonstrate exceptional growth
26.23compared to state growth expectations.
26.24    Subd. 5. Improving graduation rates for students with emotional or behavioral
26.25disorders. (a) A district must develop strategies in conjunction with parents of students
26.26with emotional or behavioral disorders and the county board responsible for implementing
26.27sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
26.28school, when the district has a drop-out rate for students with an emotional or behavioral
26.29disorder in grades 9 through 12 exceeding 25 percent.
26.30    (b) A district must develop a plan in conjunction with parents of students with
26.31emotional or behavioral disorders and the local mental health authority to increase the
26.32graduation rates of students with emotional or behavioral disorders. A district with a
26.33drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
26.3412 that is in the top 25 percent of all districts shall submit a plan for review and oversight
26.35to the commissioner.
27.1EFFECTIVE DATE.Subdivision 3, paragraph (d), and subdivision 4 are effective
27.2the day following final enactment and must be implemented by the 2010-2011 school year.

27.3    Sec. 13. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
27.4146, article 2, section 11, is amended to read:
27.5120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
27.6    Subdivision 1. School performance report cards. (a) The commissioner shall use
27.7objective criteria based on levels of student performance to report at least student academic
27.8performance under section 120B.35, subdivision 2, a table showing the percentages of
27.9students at and above state growth expectations under section 120B.35, subdivision 3,
27.10paragraph (b), school safety, rigorous coursework under section 120B.35, subdivision 3,
27.11paragraph (c), two separate student-to-teacher ratios that clearly indicate the definition of
27.12teacher consistent with sections 122A.06 and 122A.15 for purposes of determining these
27.13ratios, and staff characteristics excluding salaries, with a value-added component added no
27.14later than the 2008-2009 school year, student enrollment demographics, district mobility,
27.15and extracurricular activities. The report must indicate a school's adequate yearly progress
27.16status, and must not set any designations applicable to high- and low-performing schools
27.17due solely to adequate yearly progress status.
27.18    (b) The commissioner shall develop, annually update, and post on the department
27.19Web site school performance report cards.
27.20    (c) The commissioner must make available the first performance report cards by
27.21November 2003, and during the beginning of each school year thereafter.
27.22    (d) A school or district may appeal its adequate yearly progress status in writing to
27.23the commissioner within 30 days of receiving the notice of its status. The commissioner's
27.24decision to uphold or deny an appeal is final.
27.25    (e) School performance report cards card data are nonpublic data under section
27.2613.02, subdivision 9 , until not later than ten days after the appeal procedure described in
27.27paragraph (d) concludes. The department shall annually post school performance report
27.28cards to its public Web site no later than September 1.
27.29    Subd. 2. Adequate yearly progress data. All data the department receives,
27.30collects, or creates for purposes of determining to determine adequate yearly progress
27.31designations status under Public Law 107-110, section 1116, set state growth expectations,
27.32and determine student growth are nonpublic data under section 13.02, subdivision 9, until
27.33not later than ten days after the appeal procedure described in subdivision 1, paragraph
27.34(d), concludes. Districts must provide parents sufficiently detailed summary data to permit
27.35parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
28.1annually post adequate yearly progress data and state student growth data to its public
28.2Web site no later than September 1.
28.3EFFECTIVE DATE.This section is effective the day following final enactment
28.4and subdivision 1 must be implemented by the 2010-2011 school year.

28.5    Sec. 14. Minnesota Statutes 2006, section 120B.362, is amended to read:
28.6120B.362 VALUE-ADDED ASSESSMENT PROGRAM.
28.7    (a) The commissioner of education must implement a value-added assessment
28.8program to assist school districts, public schools, and charter schools in assessing and
28.9reporting individual students' growth in academic achievement under section 120B.30,
28.10subdivision 1a . The program must use assessments of individual students' academic
28.11achievement to make longitudinal comparisons of each student's academic growth over
28.12time. School districts, public schools, and charter schools may apply to the commissioner
28.13to participate in the initial trial program using a form and in the manner the commissioner
28.14prescribes. The commissioner must select program participants from urban, suburban, and
28.15rural areas throughout the state.
28.16    (b) The commissioner may issue a request for proposals to contract with an
28.17organization that provides a value-added assessment model that reliably estimates school
28.18and school district effects on students' academic achievement over time. The model the
28.19commissioner selects must accommodate diverse data and must use each student's test
28.20data across grades. Data on individual teachers generated under the model are personnel
28.21data under section 13.43.
28.22    (c) The contract under paragraph (b) must be consistent with the definition of "best
28.23value" under section 16C.02, subdivision 4.
28.24EFFECTIVE DATE.This section is effective the day following final enactment.

28.25    Sec. 15. Minnesota Statutes 2006, section 121A.55, is amended to read:
28.26121A.55 POLICIES TO BE ESTABLISHED.
28.27    (a) The commissioner of education shall promulgate guidelines to assist each
28.28school board. Each school board shall establish uniform criteria for dismissal and adopt
28.29written policies and rules to effectuate the purposes of sections 121A.40 to 121A.56.
28.30The policies shall emphasize preventing dismissals through early detection of problems
28.31and shall be designed to address students' inappropriate behavior from recurring. The
28.32policies shall recognize the continuing responsibility of the school for the education of
28.33the pupil during the dismissal period. The alternative educational services, if the pupil
28.34wishes to take advantage of them, must be adequate to allow the pupil to make progress
29.1towards meeting the graduation standards adopted under section 120B.02 and help prepare
29.2the pupil for readmission.
29.3    (b) An area learning center under section 123A.05 may not prohibit an expelled or
29.4excluded pupil from enrolling solely because a district expelled or excluded the pupil. The
29.5board of the area learning center may use the provisions of the Pupil Fair Dismissal Act to
29.6exclude a pupil or to require an admission plan.
29.7    (c) Each school district shall develop a policy and report it to the commissioner on
29.8the appropriate use of peace officers and crisis teams to remove students who have an
29.9individualized education plan from school grounds.
29.10    (d) Each school district must include in the student policies it annually disseminates
29.11to students and their parents an expectation that students cooperate with educators and,
29.12as educators and circumstances direct, provide information to educators on school
29.13disciplinary, classroom, and other education and school matters. For purposes of this
29.14paragraph, the requirements of section 13.04 apply only when a school administrator
29.15asks a student to provide information to the school administrator that may lead to the
29.16student's expulsion.
29.17EFFECTIVE DATE.This section is effective the day following final enactment.

29.18    Sec. 16. Minnesota Statutes 2006, section 122A.07, subdivision 2, is amended to read:
29.19    Subd. 2. Eligibility; board composition. Except for the representatives of higher
29.20education and the public, to be eligible for appointment to the Board of Teaching a person
29.21must be a teacher currently teaching in a Minnesota school and fully licensed for the
29.22position held and have at least five years teaching experience in Minnesota, including the
29.23two years immediately preceding nomination and appointment. Each nominee, other than
29.24a public nominee, must be selected on the basis of professional experience and knowledge
29.25of teacher education, accreditation, and licensure. The board must be composed of:
29.26    (1) six teachers who are currently teaching in a Minnesota school or who were
29.27teaching at the time of the appointment, at least four of whom must be teaching in a
29.28public school;
29.29    (2) one higher education representative, who must be a faculty member preparing
29.30teachers;
29.31    (3) one school administrator; and
29.32    (4) three members of the public, two of whom must be present or former members
29.33of school boards.

29.34    Sec. 17. Minnesota Statutes 2006, section 122A.07, subdivision 3, is amended to read:
30.1    Subd. 3. Vacant position. With the exception of a teacher who retires from
30.2teaching, the position of a member who leaves Minnesota or whose employment status
30.3changes to a category different from that from which appointed is deemed vacant.

30.4    Sec. 18. Minnesota Statutes 2006, section 122A.413, is amended to read:
30.5122A.413 EDUCATIONAL IMPROVEMENT PLAN.
30.6    Subdivision 1. Qualifying plan. A district or intermediate school district may
30.7develop an educational achievement improvement plan to significantly improve students'
30.8achievement by eliminating differences in performance among groups of students defined
30.9by race, ethnicity, and income, among other measures. Districts and intermediate districts
30.10that qualify for the purpose of qualifying for the alternative teacher professional pay
30.11system under section 122A.414 must align the district's educational improvement plan
30.12with section 122A.414. The plan also must include measures for improving school district,
30.13intermediate school district, school site, teacher, and individual student performance.
30.14    Subd. 2. Plan components. The educational improvement plan must be approved
30.15by the school board and have at least these elements:
30.16    (1) assessment and evaluation tools to measure student performance and progress;
30.17    (2) performance goals and benchmarks for improvement a summary of the
30.18assessment data review, separated by student groups defined by race, ethnicity and income
30.19and identifying specific disparities in students' educational achievement;
30.20    (3) to ensure that all students achieve academic proficiency, annual measurable
30.21objectives and progress reports for student groups defined by race, ethnicity and income
30.22that are designed to show continuous and substantial student progress;
30.23    (3) (4) measures of student attendance and completion rates;
30.24    (4) (5) a rigorous professional development system, consistent with section 122A.60,
30.25that is aligned with educational improvement, designed to achieve teaching quality
30.26improvement, and consistent with clearly defined research-based standards;
30.27    (5) (6) measures of student, family, and community involvement and satisfaction;
30.28    (6) (7) a data system about students and their academic progress that provides
30.29parents and the public with understandable information;
30.30    (7) (8) a teacher induction and mentoring program for probationary teachers that
30.31provides continuous learning and sustained teacher support; and
30.32    (8) (9) substantial participation by the exclusive representative of the teachers in
30.33developing the plan.
30.34    Subd. 3. School site accountability. A district or intermediate school district that
30.35develops a plan under subdivisions 1 and 2 must ensure that each school site develops
31.1a board-approved educational achievement improvement plan that is aligned with the
31.2district educational improvement plan under subdivision 2 and developed with the
31.3exclusive representative of the teachers. While a site plan must be consistent with the
31.4district educational improvement plan, it may establish performance goals and benchmarks
31.5that meet or exceed those of the district.
31.6    Subd. 4. Report. A district or intermediate school district participating under this
31.7section annually by October 1 must submit its educational achievement improvement
31.8plan to the commissioner in the form and manner the commissioner determines.
31.9The commissioner annually by January 1 in the next calendar year must submit to
31.10the E-12 education policy and finance committees of the legislature a report on the
31.11progress of districts and intermediate school districts during the preceding school year in
31.12implementing educational achievement improvement plans.
31.13EFFECTIVE DATE.This section is effective the day following final enactment.

31.14    Sec. 19. Minnesota Statutes 2006, section 122A.60, is amended to read:
31.15122A.60 STAFF DEVELOPMENT PROGRAM.
31.16    Subdivision 1. Staff development committee. A school board must use the revenue
31.17authorized in section 122A.61 for in-service education for programs under section
31.18120B.22, subdivision 2 , or for staff development and teacher training plans under this
31.19section. The board must establish an advisory staff development committee to develop the
31.20plan, assist site professional development teams in developing a site plan consistent with
31.21the goals of the plan, and evaluate staff development efforts at the site level. A majority
31.22of the advisory committee and the site professional development team must be teachers
31.23representing various grade levels, subject areas, and special education. The advisory
31.24committee must also include nonteaching staff, parents, and administrators.
31.25    Subd. 1a. Effective staff development activities. (a) Staff development activities
31.26must be aligned with the district and school site staff development plans, based on student
31.27achievement data, focused on student learning goals and used in the classroom setting.
31.28Activities must:
31.29    (1) focus on the school classroom and research-based scientifically-based research
31.30strategies that improve student learning;
31.31    (2) provide opportunities for teachers to practice and improve their instructional
31.32skills over time and receive instructional-based observations using objective
31.33standards-based assessments to assist in the professional growth process;
31.34    (3) provide regular opportunities for teachers to use student data as part of their
31.35daily work to increase student achievement;
32.1    (4) enhance teacher content knowledge and instructional skills;
32.2    (5) align with state and local academic standards;
32.3    (6) provide job embedded or integrated professional development opportunities
32.4during teacher contract day to build professional relationships, foster collaboration among
32.5principals and staff who provide instruction to identify instructional strategies to meet
32.6student learning goals, plan for instruction, practice new teaching strategies, review
32.7the results of implementing strategies, and provide opportunities for teacher-to-teacher
32.8coaching and mentoring; and
32.9    (7) align with the plan of the district or site for an alternative teacher professional
32.10pay system those participating in an alternative professional pay system under section
32.11122A.414.
32.12Staff development activities may also include curriculum development and curriculum
32.13training programs, and activities that provide teachers and other members of site-based
32.14teams training to enhance team performance. The school district also may implement other
32.15staff development activities required by law and activities associated with professional
32.16teacher compensation models.
32.17    (b) Release time provided for teachers to supervise students on field trips and school
32.18activities, or independent tasks not associated with enhancing the teacher's knowledge
32.19and instructional skills, such as preparing report cards, calculating grades, or organizing
32.20classroom materials, may not be counted as staff development time that is financed with
32.21staff development reserved revenue under section 122A.61.
32.22    Subd. 2. Contents of the plan. The plan must be based on student achievement and
32.23include student learning goals, the staff development outcomes under subdivision 3, the
32.24means to achieve the outcomes, and procedures for evaluating progress at each school
32.25site toward meeting education outcomes.
32.26    Subd. 3. Staff development outcomes. The advisory staff development committee
32.27must adopt a staff development plan for increasing teacher effectiveness and improving
32.28student achievement. The plan must be consistent with education outcomes that the
32.29school board determines. The plan must include ongoing staff development activities that
32.30contribute toward continuous improvement in achievement of the following goals:
32.31    (1) improve student achievement of state and local education standards in all areas
32.32of the curriculum by using best practices methods and scientifically-based research;
32.33    (2) effectively meet the needs of a diverse student population, including at-risk
32.34children, English language learners, children with disabilities, and gifted children, within
32.35the regular classroom and other settings;
33.1    (3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
33.2student population that is consistent with the state education diversity rule and the district's
33.3education diversity plan;
33.4    (4) improve staff collaboration and develop mentoring and peer coaching programs
33.5for teachers new to the school or district in their first five years of teaching;
33.6    (5) effectively teach and model violence prevention policy and curriculum that
33.7address early intervention alternatives, issues of harassment, and teach nonviolent
33.8alternatives for conflict resolution; and
33.9    (6) provide teachers and other members of site-based management teams with
33.10appropriate management and financial management skills.
33.11    Subd. 4. Staff development report. (a) By October 15 1 of each year, the district
33.12and site staff development committees shall write and submit a report of staff development
33.13activities and expenditures for the previous year, in the form and manner determined by
33.14the commissioner. The report, signed by the district superintendent and staff development
33.15chair, must include assessment and evaluation data indicating progress toward district and
33.16site staff development goals based on teaching and learning outcomes, including the
33.17percentage of teachers and other staff involved in instruction who participate in effective
33.18staff development activities under subdivision 3.
33.19    (b) The report must break down expenditures for:
33.20    (1) curriculum development and curriculum training programs; and
33.21    (2) staff development training models, workshops, and conferences, and the cost of
33.22releasing teachers or providing substitute teachers for staff development purposes.
33.23    The report also must indicate whether the expenditures were incurred at the district
33.24level or the school site level, and whether the school site expenditures were made possible
33.25by grants to school sites that demonstrate exemplary use of allocated staff development
33.26revenue. These expenditures must be reported using the uniform financial and accounting
33.27and reporting standards.
33.28    (c) The commissioner shall report the staff development progress and expenditure
33.29data to the house of representatives and senate committees having jurisdiction over
33.30education by February 15 each year.

33.31    Sec. 20. Minnesota Statutes 2006, section 122A.61, subdivision 1, is amended to read:
33.32    Subdivision 1. Staff development revenue. A district is required to reserve
33.33an amount equal to at least two percent of the basic revenue under section 126C.10,
33.34subdivision 2 , for in-service education for programs under section 120B.22, subdivision 2,
33.35for with the primary purpose of creating and implementing district and school site staff
34.1development plans, including. Funds may also be used to support plans for challenging
34.2instructional activities and experiences under section 122A.60, and for curriculum
34.3development and programs, other in-service education, teachers' workshops, teacher
34.4conferences, the cost of substitute teachers staff development purposes, preservice and
34.5in-service education for special education professionals and paraprofessionals, and other
34.6related costs for staff development efforts. A district may annually waive the requirement
34.7to reserve their basic revenue under this section if a majority vote of the licensed teachers
34.8in the district and a majority vote of the school board agree to a resolution to waive the
34.9requirement. A district in statutory operating debt is exempt from reserving basic revenue
34.10according to this section. Districts may expend an additional amount of unreserved
34.11revenue for staff development based on their needs. With the exception of amounts
34.12reserved for staff development from revenues allocated directly to school sites, the board
34.13must initially allocate 50 percent of the reserved revenue to each school site in the district
34.14on a per teacher basis, which must be retained by the school site until used. The board may
34.15retain 25 percent to be used for district wide staff development efforts. The remaining
34.1625 percent of the revenue must be used to make grants to school sites for best practices
34.17methods. A grant may be used for any purpose authorized under section 120B.22,
34.18subdivision 2 , 122A.60, or for the costs of curriculum development and programs, other
34.19in-service education, teachers' workshops, teacher conferences, substitute teachers for
34.20staff development purposes, and other staff development efforts, and determined by
34.21the site professional development team. The site professional development team must
34.22demonstrate to the school board the extent to which staff at the site have met the outcomes
34.23of the program. The board may withhold a portion of initial allocation of revenue if the
34.24staff development outcomes are not being met.

34.25    Sec. 21. Minnesota Statutes 2006, section 123B.03, subdivision 1, is amended to read:
34.26    Subdivision 1. Background check required. (a) A school hiring authority, as
34.27defined in subdivision 3, shall request a criminal history background check from the
34.28superintendent of the Bureau of Criminal Apprehension on all individuals who are
34.29offered employment in the school, as defined in subdivision 3. In order to be eligible for
34.30employment, an individual who is offered employment must provide an executed criminal
34.31history consent form and a money order or check payable to either the Bureau of Criminal
34.32Apprehension or the school hiring authority, at the election of the school hiring authority,
34.33in an amount equal to the actual cost to the Bureau of Criminal Apprehension and the
34.34school district of conducting the criminal history background check. A school hiring
34.35authority electing to receive payment may, at its discretion, accept payment in the form of
35.1a negotiable instrument other than a money order or check and shall pay the superintendent
35.2of the Bureau of Criminal Apprehension directly to conduct the background check. The
35.3superintendent of the Bureau of Criminal Apprehension shall conduct the background
35.4check by retrieving criminal history data maintained in the criminal justice information
35.5system computers. A school hiring authority, at its discretion, may elect not to request a
35.6criminal history background check on an individual who holds an initial entrance license
35.7issued by the State Board of Teaching or the commissioner of education within the 12
35.8months preceding an offer of employment.
35.9    (b) A school hiring authority may use the results of a criminal background check
35.10conducted at the request of another school hiring authority if:
35.11    (1) the results of the criminal background check are on file with the other school
35.12hiring authority or otherwise accessible;
35.13    (2) the other school hiring authority conducted a criminal background check within
35.14the previous 12 months;
35.15    (3) the individual who is the subject of the criminal background check executes a
35.16written consent form giving a school hiring authority access to the results of the check; and
35.17    (4) there is no reason to believe that the individual has committed an act subsequent
35.18to the check that would disqualify the individual for employment.
35.19    (c) A school hiring authority may, at its discretion, must request a criminal history
35.20background check from the superintendent of the Bureau of Criminal Apprehension on
35.21any individual who seeks to enter a school or its grounds for the purpose of serving as a
35.22school volunteer or working as an independent contractor or student employee. In order
35.23for an individual to enter a school or its grounds under this paragraph when the school
35.24hiring authority elects to request a criminal history background check on the individual,
35.25the individual first must provide an executed criminal history consent form and a money
35.26order, check, or other negotiable instrument payable to the school district in an amount
35.27equal to the actual cost to the Bureau of Criminal Apprehension and the school district
35.28of conducting the criminal history background check. Notwithstanding section 299C.62,
35.29subdivision 1 , the cost of the criminal history background check under this paragraph is
35.30the responsibility of the individual.
35.31    (d) For all nonstate residents who are offered employment in a school, a school
35.32hiring authority shall request a criminal history background check on such individuals
35.33from the superintendent of the Bureau of Criminal Apprehension and from the government
35.34agency performing the same function in the resident state or, if no government entity
35.35performs the same function in the resident state, from the Federal Bureau of Investigation.
35.36Such individuals must provide an executed criminal history consent form and a money
36.1order, check, or other negotiable instrument payable to the school hiring authority in an
36.2amount equal to the actual cost to the government agencies and the school district of
36.3conducting the criminal history background check. Notwithstanding section 299C.62,
36.4subdivision 1 , the cost of the criminal history background check under this paragraph is
36.5the responsibility of the individual.
36.6    (e) Consistent with the terms in paragraph (a), a school hiring authority, as defined in
36.7subdivision 3, shall request a criminal history background check from the superintendent
36.8of the Bureau of Criminal Apprehension on an individual who elects to provide athletic
36.9coaching services or other extracurricular or cocurricular services to a district, regardless
36.10of the terms of the service.
36.11EFFECTIVE DATE.This section is effective the day following final enactment.

36.12    Sec. 22. Minnesota Statutes 2006, section 123B.03, is amended by adding a
36.13subdivision to read:
36.14    Subd. 1a. Investigation of disciplinary actions taken against prospective
36.15teachers. At the time a school hiring authority conducts the criminal history background
36.16check required under subdivision 1 on an individual offered employment as a teacher, the
36.17school hiring authority must contact the Board of Teaching to determine whether the
36.18board has taken disciplinary action against the teacher based on a board determination
36.19that inappropriate sexual conduct or attempted inappropriate sexual conduct occurred
36.20between the teacher and a student. If disciplinary action has been taken based on this type
36.21of conduct, the school hiring authority must obtain access to data that are public under
36.22sections 13.41, subdivision 5, and 13.43, subdivision 2, that relate to the substance of the
36.23disciplinary action. In addition, the school hiring authority must require the individual
36.24to provide information in the employment application regarding all current and previous
36.25disciplinary actions in Minnesota and other states taken against the individual's teaching
36.26license as a result of inappropriate sexual conduct or attempted inappropriate sexual
36.27conduct with a student and indicate to the applicant that intentionally submitting false or
36.28incomplete information is a ground for dismissal.
36.29EFFECTIVE DATE.This section is effective May 1, 2009.

36.30    Sec. 23. Minnesota Statutes 2006, section 123B.03, subdivision 2, is amended to read:
36.31    Subd. 2. Conditional hiring; discharge. A school hiring authority may hire
36.32an individual pending completion of a background check under subdivision 1 or an
36.33investigation of disciplinary actions under subdivision 1a but shall notify the individual
36.34that the individual's employment may be terminated based on the result of the background
37.1check or investigation. A school hiring authority is not liable for failing to hire or for
37.2terminating an individual's employment based on the result of a background check or
37.3investigation under this section.
37.4EFFECTIVE DATE.This section is effective May 1, 2009.

37.5    Sec. 24. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
37.6is amended to read:
37.7    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
37.8school must employ a superintendent who shall be an ex officio nonvoting member of the
37.9school board. The authority for selection and employment of a superintendent must be
37.10vested in the board in all cases. An individual employed by a board as a superintendent
37.11shall have an initial employment contract for a period of time no longer than three years
37.12from the date of employment. Any subsequent employment contract must not exceed a
37.13period of three years. A board, at its discretion, may or may not renew an employment
37.14contract. A board must not, by action or inaction, extend the duration of an existing
37.15employment contract. Beginning 365 days prior to the expiration date of an existing
37.16employment contract, a board may negotiate and enter into a subsequent employment
37.17contract to take effect upon the expiration of the existing contract. A subsequent contract
37.18must be contingent upon the employee completing the terms of an existing contract. If a
37.19contract between a board and a superintendent is terminated prior to the date specified in
37.20the contract, the board may not enter into another superintendent contract with that same
37.21individual that has a term that extends beyond the date specified in the terminated contract.
37.22A board may terminate a superintendent during the term of an employment contract for any
37.23of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
37.24not rely upon an employment contract with a board to assert any other continuing contract
37.25rights in the position of superintendent under section 122A.40. Notwithstanding the
37.26provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
37.27to the contrary, no individual shall have a right to employment as a superintendent based
37.28on order of employment in any district. If two or more districts enter into an agreement for
37.29the purchase or sharing of the services of a superintendent, the contracting districts have
37.30the absolute right to select one of the individuals employed to serve as superintendent
37.31in one of the contracting districts and no individual has a right to employment as the
37.32superintendent to provide all or part of the services based on order of employment in a
37.33contracting district. The superintendent of a district shall perform the following:
37.34    (1) visit and supervise the schools in the district, report and make recommendations
37.35about their condition when advisable or on request by the board;
38.1    (2) recommend to the board employment and dismissal of teachers;
38.2    (3) superintend school grading practices and examinations for promotions;
38.3    (4) make reports required by the commissioner; and
38.4    (5) by January 10, submit an annual report to the commissioner in a manner
38.5prescribed by the commissioner, in consultation with school districts, identifying the
38.6expenditures that the district requires to ensure an 80 percent student passage rate on
38.7the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
38.8district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
38.9expenditures that the district requires to attain the targeted student passage rate; and
38.10    (6) perform other duties prescribed by the board.
38.11EFFECTIVE DATE.This section is effective the day following final enactment.

38.12    Sec. 25. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4,
38.13is amended to read:
38.14    Subd. 4. Online learning parameters. (a) An online learning student must receive
38.15academic credit for completing the requirements of an online learning course or program.
38.16Secondary credits granted to an online learning student must be counted toward the
38.17graduation and credit requirements of the enrolling district. An online learning provider
38.18must make available to the enrolling district the course syllabus, standard alignment,
38.19content outline, assessment requirements, and contact information for supplemental online
38.20courses taken by students in the enrolling district. The enrolling district must apply the
38.21same graduation requirements to all students, including online learning students, and
38.22must continue to provide nonacademic services to online learning students. If a student
38.23completes an online learning course or program that meets or exceeds a graduation
38.24standard or grade progression requirement at the enrolling district, that standard or
38.25requirement is met. The enrolling district must use the same criteria for accepting online
38.26learning credits or courses as it does for accepting credits or courses for transfer students
38.27under section 124D.03, subdivision 9. The enrolling district may reduce the course
38.28schedule of an online learning student in proportion to the number of online learning
38.29courses the student takes from an online learning provider that is not the enrolling district.
38.30    (b) An online learning student may:
38.31    (1) enroll in supplemental online learning courses during a single school year to a
38.32maximum of 50 percent of the student's full schedule of courses per term. A student may
38.33exceed the supplemental online learning registration limit if the enrolling district grants
38.34permission for supplemental online learning enrollment above the limit, or if an agreement
39.1is made between the enrolling district and the online learning provider for instructional
39.2services;
39.3    (2) complete course work at a grade level that is different from the student's current
39.4grade level; and
39.5    (3) enroll in additional courses with the online learning provider under a separate
39.6agreement that includes terms for payment of any tuition or course fees.
39.7    (c) An online learning student has the same access to the computer hardware and
39.8education software available in a school as all other students in the enrolling district. An
39.9online learning provider must assist an online learning student whose family qualifies
39.10for the education tax credit under section 290.0674 to acquire computer hardware and
39.11educational software for online learning purposes.
39.12    (d) An enrolling district or charter school may offer online learning to its enrolled
39.13students. Such online learning does not generate online learning funds under this section.
39.14Notwithstanding paragraph (e), an enrolling district or charter school that offers online
39.15learning only to its enrolled students is not subject to the reporting requirements or review
39.16criteria under subdivision 7, unless the enrolling district or charter school is a full-time
39.17online provider. A teacher with a Minnesota license must assemble and deliver instruction
39.18to enrolled students receiving online learning from an enrolling district or charter school.
39.19The delivery of instruction occurs when the student interacts with the computer or the
39.20teacher and receives ongoing assistance and assessment of learning. The instruction may
39.21include curriculum developed by persons other than a teacher with a Minnesota license.
39.22    (e) An online learning provider that is not the enrolling district is subject to
39.23the reporting requirements and review criteria under subdivision 7. A teacher with a
39.24Minnesota license must assemble and deliver instruction to online learning students. The
39.25delivery of instruction occurs when the student interacts with the computer or the teacher
39.26and receives ongoing assistance and assessment of learning. The instruction may include
39.27curriculum developed by persons other than a teacher with a Minnesota license. Unless
39.28the commissioner grants a waiver, a teacher providing online learning instruction must not
39.29instruct more than 40 students in any one online learning course or program.
39.30    (f) To enroll in more than 50 percent of the student's full schedule of courses per term
39.31in online learning, the student must qualify to exceed the supplemental online learning
39.32registration limit under paragraph (b) or apply for enrollment to an approved full-time
39.33online learning program following appropriate procedures in subdivision 3, paragraph (a).
39.34Full-time online learning students may enroll in classes at a local school per contract for
39.35instructional services between the online learning provider and the school district.

39.36    Sec. 26. Minnesota Statutes 2006, section 124D.10, subdivision 2a, is amended to read:
40.1    Subd. 2a. Charter School Advisory Council. (a) A Charter School Advisory
40.2Council is established under section 15.059 except that the term for each council member
40.3shall be three years. The advisory council is composed of seven members from throughout
40.4the state who have demonstrated experience with or interest in charter schools. The
40.5members of the council shall be appointed by the commissioner. The advisory council
40.6shall bring to the attention of the commissioner any matters related to charter schools
40.7that the council deems necessary and shall:
40.8    (1) encourage school boards to make full use of charter school opportunities;
40.9    (2) encourage the creation of innovative schools;
40.10    (3) provide leadership and support for charter school sponsors to increase the
40.11innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
40.12    (4) serve an ombudsman function in facilitating the operations of new and existing
40.13charter schools;
40.14    (5) promote timely financial management training for newly elected members of
40.15a charter school board of directors and ongoing training for other members of a charter
40.16school board of directors; and
40.17    (6) facilitate compliance with auditing and other reporting requirements. The
40.18advisory council shall refer all its proposals to the commissioner who shall provide time
40.19for reports from the council.
40.20    (b) The Charter School Advisory Council under this subdivision expires June 30,
40.212007 does not expire and the expiration date provided in section 15.059, subdivision
40.225, does not apply to this section.
40.23EFFECTIVE DATE.This section is effective retroactively from June 30, 2007.

40.24    Sec. 27. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 4, is
40.25amended to read:
40.26    Subd. 4. Formation of school. (a) A sponsor may authorize one or more licensed
40.27teachers under section 122A.18, subdivision 1, to operate a charter school subject to
40.28approval by the commissioner. A board must vote on charter school application for
40.29sponsorship no later than 90 days after receiving the application. The school must be
40.30organized and operated as a cooperative under chapter 308A or nonprofit corporation
40.31under chapter 317A and the provisions under the applicable chapter shall apply to the
40.32school except as provided in this section. Notwithstanding sections 465.717 and 465.719,
40.33a school district may create a corporation for the purpose of creating a charter school.
40.34    (b) Before the operators may form and operate a school, the sponsor must file an
40.35affidavit with the commissioner stating its intent to authorize a charter school. The
41.1affidavit must demonstrate the sponsor's abilities, capacities, and expertise in fulfilling the
41.2responsibilities of a sponsor and state the terms and conditions under which the sponsor
41.3would authorize a charter school and how the sponsor intends to oversee the fiscal and
41.4student performance of the charter school and to comply with the terms of the written
41.5contract between the sponsor and the charter school board of directors under subdivision
41.66 in the form and manner prescribed by the commissioner. The sponsor must submit
41.7an affidavit to the commissioner for each charter school it proposes to authorize. The
41.8commissioner must approve or disapprove the sponsor's proposed authorization within
41.990 days of receipt of the affidavit. Failure to obtain commissioner approval precludes a
41.10sponsor from authorizing the charter school that was the subject of the affidavit.
41.11    (c) The operators authorized to organize and operate a school, before entering into a
41.12contract or other agreement for professional or other services, goods, or facilities, must
41.13incorporate as a cooperative under chapter 308A or as a nonprofit corporation under
41.14chapter 317A and must establish a board of directors composed of at least five nonrelated
41.15members until a timely election for members of the charter school board of directors is
41.16held according to the school's articles and bylaws. A charter school board of directors
41.17must be composed of at least five members. Any staff members who are employed at the
41.18school, including teachers providing instruction under a contract with a cooperative, and
41.19all parents of children enrolled in the school may are eligible to participate in the election
41.20for members of the school's board of directors. Licensed teachers employed at the school,
41.21including teachers providing instruction under a contract with a cooperative, must be a
41.22majority of the members of the board of directors before the school completes its third
41.23year of operation, unless the commissioner waives the requirement for a majority of
41.24licensed teachers on the board. Board of director meetings must comply with chapter 13D.
41.25    (d) The granting or renewal of a charter by a sponsoring entity must not be
41.26conditioned upon the bargaining unit status of the employees of the school.
41.27    (e) The granting or renewal of a charter school by a sponsor must not be contingent
41.28on the charter school being required to contract, lease, or purchase services from the
41.29sponsor. A sponsor is prohibited from entering into a contract to provide management and
41.30financial services for a school that it is authorized to sponsor.
41.31    (e) (f) A sponsor may authorize the operators of a charter school to expand the
41.32operation of the charter school to additional sites or to add additional grades at the school
41.33beyond those described in the sponsor's application as approved by the commissioner only
41.34after submitting a supplemental application to the commissioner in a form and manner
41.35prescribed by the commissioner. The supplemental application must provide evidence that:
41.36    (1) the expansion of the charter school is supported by need and projected enrollment;
42.1    (2) the charter school is fiscally sound;
42.2    (3) the sponsor supports the expansion; and
42.3    (4) the building of the additional site meets all health and safety requirements to
42.4be eligible for lease aid.
42.5    (f) (g) The commissioner annually must provide timely financial management
42.6training to newly elected members of a charter school board of directors and ongoing
42.7training to other members of a charter school board of directors. Training must address
42.8ways to:
42.9    (1) proactively assess opportunities for a charter school to maximize all available
42.10revenue sources;
42.11    (2) establish and maintain complete, auditable records for the charter school;
42.12    (3) establish proper filing techniques;
42.13    (4) document formal actions of the charter school, including meetings of the charter
42.14school board of directors;
42.15    (5) properly manage and retain charter school and student records;
42.16    (6) comply with state and federal payroll record-keeping requirements; and
42.17    (7) address other similar factors that facilitate establishing and maintaining complete
42.18records on the charter school's operations.

42.19    Sec. 28. Minnesota Statutes 2006, section 124D.10, subdivision 4a, is amended to read:
42.20    Subd. 4a. Conflict of interest. (a) A member of a charter school board of directors
42.21is prohibited from serving as a member of the board of directors or as an employee or
42.22agent of or a contractor with a for-profit entity with whom the charter school contracts,
42.23directly or indirectly, for professional services, goods, or facilities. A violation of this
42.24prohibition renders a contract voidable at the option of the commissioner. The charter
42.25school's state aid may be reduced by the commissioner under section 127A.42 if the
42.26charter school board fails to correct violations under this subdivision in a timely manner.
42.27A member of a charter school board of directors who violates this prohibition shall be
42.28individually liable to the charter school for any damage caused by the violation.
42.29    (b) An individual may serve as a member of the board of directors if no conflict of
42.30interest under paragraph (a) exists.
42.31    (c) A member of a charter school board of directors that serves as a member of the
42.32board of directors or as an employee or agent of or a contractor with a nonprofit entity
42.33with whom the charter school contracts, directly or indirectly, for professional services,
42.34goods, or facilities, must disclose all potential conflicts to the commissioner. A violation
42.35of this requirement renders a contract voidable at the option of the commissioner. The
43.1charter school's aid may be reduced by the commissioner under section 127A.42 if the
43.2charter school fails to correct violations under this subdivision in a timely manner.
43.3    (d) The conflict of interest provisions under this subdivision do not apply to
43.4compensation paid to a teacher employed by the charter school who also serves as a
43.5member of the board of directors.
43.6    (e) The conflict of interest provisions under this subdivision do not apply to a teacher
43.7who provides services to a charter school through a cooperative formed under chapter
43.8308A when the teacher also serves on the charter school board of directors.

43.9    Sec. 29. Minnesota Statutes 2006, section 124D.10, subdivision 6, is amended to read:
43.10    Subd. 6. Contract. The sponsor's authorization for a charter school must be in the
43.11form of a written contract signed by the sponsor and the board of directors of the charter
43.12school. The contract must be completed within 90 days of the commissioner's approval
43.13of the sponsor's proposed authorization. The contract for a charter school must be in
43.14writing and contain at least the following:
43.15    (1) a description of a program that carries out one or more of the purposes in
43.16subdivision 1;
43.17    (2) specific outcomes pupils are to achieve under subdivision 10;
43.18    (3) admission policies and procedures;
43.19    (4) management and administration of the school;
43.20    (5) requirements and procedures for program and financial audits;
43.21    (6) how the school will comply with subdivisions 8, 13, 16, and 23;
43.22    (7) assumption of liability by the charter school;
43.23    (8) types and amounts of insurance coverage to be obtained by the charter school;
43.24    (9) the term of the contract, which may be up to three years for the initial contract,
43.25and up to five years for renewed contracts based on the academic, financial, and
43.26operational performance of the school;
43.27    (10) if how the board of directors or the operators of the charter school will provide
43.28special instruction and services for children with a disability under sections 125A.03
43.29to 125A.24, and 125A.65, a description of the financial parameters within which the
43.30charter school will operate to provide the special instruction and services to children
43.31with a disability; and
43.32    (11) the process and criteria the sponsor intends to use to monitor and evaluate the
43.33fiscal and student performance of the charter school, consistent with subdivision 15.

43.34    Sec. 30. Minnesota Statutes 2006, section 124D.10, subdivision 7, is amended to read:
44.1    Subd. 7. Public status; exemption from statutes and rules. A charter school is a
44.2public school and is part of the state's system of public education. Except as provided in
44.3this section, a charter school is exempt from all statutes and rules applicable to a school,
44.4a board, or a district, although it may elect to comply with one or more provisions of
44.5statutes or rules. A charter school is exempt from all statutes and rules applicable to a
44.6school, board, or district unless provided by this section or provided in another section
44.7of statutes or rules.

44.8    Sec. 31. Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:
44.9    Subd. 23. Causes for nonrenewal or termination of charter school contract. (a)
44.10The duration of the contract with a sponsor must be for the term contained in the contract
44.11according to subdivision 6. The sponsor may or may not renew a contract at the end of
44.12the term for any ground listed in paragraph (b). A sponsor may unilaterally terminate a
44.13contract during the term of the contract for any ground listed in paragraph (b). At least 60
44.14days before not renewing or terminating a contract, the sponsor shall notify the board of
44.15directors of the charter school of the proposed action in writing by registered mail. The
44.16notice shall state the grounds for the proposed action in reasonable detail and that the
44.17charter school's board of directors may request in writing an informal hearing before the
44.18sponsor within 14 days of receiving notice of nonrenewal or termination of the contract.
44.19Failure by the board of directors to make a written request for a hearing within the 14-day
44.20period shall be treated as acquiescence to the proposed action. Upon receiving a timely
44.21written request for a hearing, the sponsor shall give reasonable notice to the charter
44.22school's board of directors of the hearing date. The sponsor shall conduct an informal
44.23hearing before taking final action. The sponsor shall take final action to renew or not
44.24renew a contract by the last day of classes in the school year no later than 15 days before
44.25the termination date or the end of the contract. If the sponsor is a local board, the school's
44.26board of directors may appeal the sponsor's decision to the commissioner.
44.27    (b) A contract may be terminated or not renewed upon any of the following grounds:
44.28    (1) failure to meet the requirements for pupil performance contained in the contract;
44.29    (2) failure to meet generally accepted standards of fiscal management;
44.30    (3) violations of law; or
44.31    (4) other good cause shown.
44.32    If a contract is terminated or not renewed under this paragraph, the school must be
44.33dissolved according to the applicable provisions of chapter 308A or 317A, except when
44.34the commissioner approves the decision of a different eligible sponsor to authorize the
44.35charter school.
45.1    (c) If at the end of a contract term, either the sponsor or and the charter school
45.2board of directors wants mutually agree to voluntarily terminate the contract, a change
45.3in sponsors is allowed if the commissioner approves the decision of a different eligible
45.4sponsor to authorize the charter school. The party intending to terminate the contract must
45.5notify the other party and the commissioner of its intent at least 90 days before the date on
45.6which the contract ends. Both parties must jointly submit in writing to the commissioner
45.7its intent to terminate the contract. The sponsor that is a party to the existing contract at
45.8least must inform the approved different eligible sponsor about the fiscal and student
45.9performance of the school. If no different eligible sponsor is approved, the school must be
45.10dissolved according to applicable law and the terms of the contract.
45.11    (d) The commissioner, after providing reasonable notice to the board of directors
45.12of a charter school and the existing sponsor, and after providing an opportunity for a
45.13public hearing, may terminate the existing sponsorial relationship if the charter school
45.14has a history of:
45.15    (1) sustained failure to meet the requirements for pupil performance contained
45.16in the contract;
45.17    (1) (2) financial mismanagement; or
45.18    (2) (3) repeated violations of the law; or
45.19    (4) other good cause shown.

45.20    Sec. 32. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 23a,
45.21is amended to read:
45.22    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
45.23entering a lease of real property with a related party as defined in subdivision 26
45.24this subdivision, unless the lessor is a nonprofit corporation under chapter 317A or a
45.25cooperative under chapter 308A, and the lease cost is reasonable under section 124D.11,
45.26subdivision 4 , clause (1).
45.27    (b) For purposes of this subdivision:
45.28    (1) "related party" means an affiliate or close relative of the other party in question,
45.29an affiliate of a close relative, or a close relative of an affiliate;
45.30    (2) "affiliate" means a person that directly or indirectly, through one or more
45.31intermediaries, controls, is controlled by, or is under common control with another person;
45.32    (3) "close relative" means an individual whose relationship by blood, marriage, or
45.33adoption to another individual is no more remote than first cousin;
45.34    (4) "person" means an individual or entity of any kind; and
46.1    (5) "control" includes the terms "controlling," "controlled by," and "under common
46.2control with" and means the possession, direct or indirect, of the power to direct or cause
46.3the directions of the management, operations, or policies of a person, whether through
46.4ownership of voting securities, by contract, or otherwise.
46.5    (b) (c) A lease of real property to be used for a charter school, not excluded in
46.6paragraph (a), must contain the following statement: "This lease is subject to Minnesota
46.7Statutes, section 124D.10, subdivision 23a."
46.8    (c) (d) If a charter school enters into as lessee a lease with a related party and the
46.9charter school subsequently closes, the commissioner has the right to recover from the
46.10lessor any lease payments in excess of those that are reasonable under section 124D.11,
46.11subdivision 4 , clause (1).

46.12    Sec. 33. Minnesota Statutes 2006, section 125B.07, is amended by adding a
46.13subdivision to read:
46.14    Subd. 8. Technology data and guidelines. (a) The department shall maintain a list
46.15of technology infrastructure data including, but not limited to, the following data:
46.16    (1) instructional technology;
46.17    (2) technology tools;
46.18    (3) network and data systems administration;
46.19    (4) data practices;
46.20    (5) data management; and
46.21    (6) facilities infrastructure.
46.22    Each school must provide the technology data to the department in the form and
46.23manner prescribed by the commissioner. The data must include the impact of each
46.24indicator on student achievement.
46.25    (b) The commissioner shall maintain technology guidelines for uniform data
46.26collections including common data definitions for required elements, a common course
46.27catalogue, common transcript definitions, and district technology infrastructure standards.

46.28    Sec. 34. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
46.29read:
46.30    Subd. 13. Preadvanced placement, advanced placement, international
46.31baccalaureate, and concurrent enrollment programs. For preadvanced placement,
46.32advanced placement, international baccalaureate, and concurrent enrollment programs
46.33under Minnesota Statutes, sections 120B.132 and 124D.091:

46.34		$	6,500,000	.....	2008
46.35		$	6,500,000	.....	2009

47.1    Of this amount, $2,500,000 each year is for concurrent enrollment program aid
47.2under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
47.3commissioner must proportionately reduce the aid payment to each district. Any balance
47.4in the first year does not cancel but is available in the second year.
47.5    The base appropriation for fiscal year 2010 and later is $2,000,000.

47.6    Sec. 35. IMPLEMENTING A STUDENT GROWTH SYSTEM.
47.7    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
47.8subdivision 3, paragraph (b), and to help parents and members of the public compare
47.9the reported data, the commissioner must convene a group of expert school district
47.10assessment and evaluation staff, including a recognized Minnesota assessment group
47.11composed of assessment and evaluation directors and staff and researchers, and interested
47.12stakeholders, including school superintendents, school principals, school teachers, and
47.13parents to examine the actual statewide performance of students using Minnesota's growth
47.14system and establish criteria for identifying schools and school districts that demonstrate
47.15exceptional growth in order to advance educators' professional development and replicate
47.16programs that succeed in meeting students' diverse learning needs.
47.17    (b) The commissioner must submit a written report to the education committees of
47.18the house of representatives and senate by February 15, 2009, describing the criteria for
47.19identifying schools and school districts that demonstrate exceptional growth.
47.20EFFECTIVE DATE.This section is effective the day following final enactment
47.21and applies to school report cards in the 2008-2009 school year and later.

47.22    Sec. 36. GROWTH SYSTEM.
47.23    The growth system used by the commissioner of education to comply with
47.24Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be consistent with
47.25the growth model contained in the document labeled "Educational Report Card Growth
47.26Model 2008" and developed in partnership with the Minnesota Department of Education.
47.27The document must be deposited with the Minnesota Office of the Revisor of Statutes, the
47.28Minnesota Legislative Reference Library, and the Minnesota State Law Library, where
47.29the document shall be maintained until the commissioner implements the growth system
47.30under Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized
47.31Minnesota assessment group composed of assessment and evaluation directors and staff
47.32and researchers under Minnesota Statutes, section 120B.299, subdivision 6, must review
47.33whether the growth model the commissioner uses to comply with Minnesota Statutes,
47.34section 120B.35, subdivision 3, paragraph (b), is consistent with the deposited document
48.1and report its determination to the education committees of the house of representatives
48.2and senate by February 15, 2009.
48.3EFFECTIVE DATE.This section is effective the day following final enactment.

48.4    Sec. 37. REVIVAL AND REENACTMENT.
48.5    Minnesota Statutes, section 124D.10, subdivision 2a, is revived and reenacted
48.6effective retroactively and without interruption from June 30, 2007.

48.7    Sec. 38. REVISOR'S INSTRUCTION.
48.8    In Minnesota Statutes, the revisor of statutes shall renumber section 122A.60,
48.9subdivision 1a, as section 122A.60, subdivision 3a, and make necessary cross-reference
48.10changes consistent with the renumbering.


48.13    Section 1. Minnesota Statutes 2006, section 124D.60, subdivision 1, is amended to
48.14read:
48.15    Subdivision 1. Notice. Within ten 30 days after the enrollment of any pupil in an
48.16instructional program for limited English proficient students, the district in which the pupil
48.17resides must notify the parent by mail. This notice must:
48.18    (1) be in writing in English and in the primary language of the pupil's parents;
48.19    (2) inform the parents that their child has been enrolled in an instructional program
48.20for limited English proficient students;
48.21    (3) contain a simple, nontechnical description of the purposes, method and content
48.22of the program;
48.23    (4) inform the parents that they have the right to visit the educational program for
48.24limited English proficient students in which their child is enrolled;
48.25    (5) inform the parents of the time and manner in which to request and receive a
48.26conference for the purpose of explaining the nature and purpose of the program; and
48.27    (6) inform the parents of their rights to withdraw their child from an educational
48.28program for limited English proficient students and the time and manner in which to do so.
48.29    The department shall, at the request of the district, prepare the notice in the primary
48.30language of the parent.

48.31    Sec. 2. Minnesota Statutes 2007 Supplement, section 125A.14, is amended to read:
48.32125A.14 EXTENDED SCHOOL YEAR.
49.1    A district may provide extended school year services for children with a disability
49.2living within the district and nonresident children temporarily placed in the district
49.3pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the child with
49.4a disability is placed in the district, whichever is later, the providing district shall give
49.5notice to the district of residence of any nonresident children temporarily placed in the
49.6district pursuant to section 125A.15 or 125A.16, of its intention to provide these programs.
49.7Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the district
49.8providing the special instruction and services must apply for special education aid for the
49.9extended school year services. The unreimbursed actual cost of providing the program
49.10for nonresident children with a disability, including the cost of board and lodging, may
49.11be billed to the district of the child's residence and must be paid by the resident district.
49.12Transportation costs must be paid by the district responsible for providing transportation
49.13pursuant to section 125A.15 or 125A.16 and transportation aid must be paid to that district.

49.14    Sec. 3. Minnesota Statutes 2006, section 125A.744, subdivision 3, is amended to read:
49.15    Subd. 3. Implementation. Consistent with section 256B.0625, subdivision 26,
49.16school districts may enroll as medical assistance providers or subcontractors and bill
49.17the Department of Human Services under the medical assistance fee for service claims
49.18processing system for special education services which are covered services under chapter
49.19256B, which are provided in the school setting for a medical assistance recipient, and for
49.20whom the district has secured informed consent consistent with section 13.05, subdivision
49.214 , paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type
49.22of covered service. School districts shall be reimbursed by the commissioner of human
49.23services for the federal share of individual education plan health-related services that
49.24qualify for reimbursement by medical assistance, minus up to five percent retained by the
49.25commissioner of human services for administrative costs, not to exceed $350,000 per
49.26fiscal year. The commissioner may withhold up to five percent of each payment to a
49.27school district. Following the end of each fiscal year, the commissioner shall settle up with
49.28each school district in order to ensure that collections from each district for departmental
49.29administrative costs are made on a pro rata basis according to federal earnings for these
49.30services in each district. A school district is not eligible to enroll as a home care provider
49.31or a personal care provider organization for purposes of billing home care services under
49.32sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human
49.33services issues a bulletin instructing county public health nurses on how to assess for the
49.34needs of eligible recipients during school hours. To use private duty nursing services or
49.35personal care services at school, the recipient or responsible party must provide written
50.1authorization in the care plan identifying the chosen provider and the daily amount
50.2of services to be used at school.

50.3    Sec. 4. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to read:
50.4    Subd. 2. Report. (a) The task force must submit to the education policy and finance
50.5committees of the legislature by February 15, 2008 2009, a report that identifies and
50.6clearly and concisely explains each provision in state law or rule that exceeds or expands
50.7upon a minimum federal requirement contained in law or regulation for providing special
50.8education programs and services to eligible students. The report also must recommend
50.9which state provisions statutes and rules that exceed or expand upon a minimum federal
50.10requirement may be amended to conform with minimum federal requirements or made
50.11more effective as determined by a majority of the task force members. The task force must
50.12recommend rules governing the use of aversive and deprivation procedures by school
50.13district employees or persons under contract with a school district. The task force expires
50.14when it submits its report to the legislature.
50.15    (b) Consistent with subdivision 1, the Department of Education member of the
50.16task force representing regulators shall be replaced with a parent advocate selected by a
50.17statewide organization that advocates on behalf of families with children with disabilities.
50.18    (c) The Department of Education must provide technical assistance at the request of
50.19the task force.
50.20EFFECTIVE DATE.This section is effective the day following final enactment.

50.21    Sec. 5. EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITY RULE.
50.22    The commissioner of education may use the expedited process under Minnesota
50.23Statutes, section 14.389, to conform Minnesota Rule, part 3525.1341, to new federal
50.24requirements on specific learning disabilities under Public Law 108-446, sections 602(30)
50.25and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004,
50.26and its implementing regulations.

50.27    Sec. 6. REPEALER.
50.28Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 125A.20; and
50.29125A.57, and Laws 2006, chapter 263, article 3, section 16, are repealed.
50.30EFFECTIVE DATE.This section is effective the day following final enactment.


51.3    Section 1. Minnesota Statutes 2007 Supplement, section 134.31, subdivision 4a,
51.4is amended to read:
51.5    Subd. 4a. Services to the blind and physically handicapped. The Minnesota
51.6Department of Education shall provide specialized services to the blind and physically
51.7handicapped through the Minnesota Braille and Talking Book Library for the Blind and
51.8Physically Handicapped under a cooperative plan with the National Library Services for
51.9the Blind and Physically Handicapped of the Library of Congress.

51.10    Sec. 2. Minnesota Statutes 2006, section 134.31, subdivision 6, is amended to read:
51.11    Subd. 6. Advisory committee. The commissioner shall appoint an advisory
51.12committee of five members to advise the staff of the Minnesota Braille and Talking
51.13Book Library for the Blind and Physically Handicapped on long-range plans and library
51.14services. Members shall be people who use the library. Section 15.059 governs this
51.15committee except that the committee shall not expire.

51.16    Sec. 3. Minnesota Statutes 2006, section 134.31, is amended by adding a subdivision
51.17to read:
51.18    Subd. 7. Telephone or electronic meetings. (a) Notwithstanding section 13D.01,
51.19the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct
51.20a meeting of its members by telephone or other electronic means so long as the following
51.21conditions are met:
51.22    (1) all members of the committee participating in the meeting, wherever their
51.23physical locations, can hear one another and can hear all discussion and testimony;
51.24    (2) members of the public present at the regular meeting location of the committee
51.25can hear all discussion, testimony, and votes of the members of the committee;
51.26    (3) at least one member of the committee is physically present at the regular meeting
51.27location; and
51.28    (4) all votes are conducted by roll call, so each member's votes on each issue can be
51.29identified and recorded.
51.30    (b) Each member of the committee participating in a meeting by telephone or other
51.31electronic means is considered present at the meeting for purposes of determining quorum
51.32and participating in all proceedings.
51.33    (c) If telephone or other electronic means is used to conduct a meeting, to the extent
51.34practical, the committee shall allow a person to monitor the meeting electronically from a
52.1remote location. The committee may require the person making the connection to pay
52.2for the documented marginal costs that the committee incurs as a result of the additional
52.3connection.
52.4    (d) If telephone or other electronic means is used to conduct a regular, special, or
52.5emergency meeting, the committee shall provide notice of the regular meeting location,
52.6the fact that some members may participate by telephone or other electronic means, and
52.7the provisions of paragraph (c). The timing and method of providing notice is governed
52.8by section 13D.04.


52.11    Section 1. Minnesota Statutes 2006, section 125A.65, subdivision 4, is amended to
52.12read:
52.13    Subd. 4. Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition
52.14charge allowed in subdivision 3, the academies may charge the child's district of residence
52.15for the academy's unreimbursed cost of providing an instructional aide assigned to that
52.16child, after deducting the special education aid under section 125A.76, attributable to the
52.17child, if that aide is required by the child's individual education plan. Tuition received
52.18under this paragraph must be used by the academies to provide the required service.
52.19    (b) For fiscal year 2007 2008 and later, the special education aid paid to the
52.20academies shall be increased by the academy's unreimbursed cost of providing an one
52.21to one instructional aide and behavioral management aides assigned to a child, after
52.22deducting the special education aid under section 125A.76 attributable to the child, if that
52.23aide is the aides are required by the child's individual education plan. Aid received under
52.24this paragraph must be used by the academies to provide the required service.
52.25    (c) For fiscal year 2007 2008 and later, the special education aid paid to the district
52.26of the child's residence shall be reduced by the amount paid to the academies for district
52.27residents under paragraph (b).
52.28    (d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008,
52.29the commissioner shall make an estimated final adjustment payment to the Minnesota
52.30State Academies for general education aid and special education aid for the prior fiscal
52.31year by August 15.
52.32    (e) For fiscal year 2007, the academies may retain receipts received through mutual
52.33agreements with school districts for one to one behavior management aides.
52.34EFFECTIVE DATE.This section is effective the day following final enactment
52.35for revenue in fiscal year 2008.

53.1    Sec. 2. Minnesota Statutes 2006, section 125A.65, is amended by adding a subdivision
53.2to read:
53.3    Subd. 11. Third party reimbursement. The Minnesota State Academies must seek
53.4reimbursement under section 125A.21 from third parties for the cost of services provided
53.5by the Minnesota State Academies whenever the services provided are otherwise covered
53.6by a child's public or private health plan.
53.7EFFECTIVE DATE.This section is effective the day following final enactment
53.8for revenue in fiscal year 2008.


53.11    Section 1. Minnesota Statutes 2006, section 120A.05, subdivision 10a, is amended to
53.12read:
53.13    Subd. 10a. Kindergarten. (a) "Kindergarten" means a program designed for pupils
53.14five years of age on September 1 of the calendar year in which the school year commences
53.15that prepares pupils to enter first grade the following school year. A program designed for
53.16pupils younger than five years of age on September 1 of the calendar year in which the
53.17school year commences that prepares pupils to enter kindergarten the following school
53.18year is a prekindergarten program.
53.19    (b) "Full-day kindergarten" means an academic program that prepares pupils to enter
53.20first grade the following school year, provides a minimum of 850 hours in a school year,
53.21includes curriculum and instruction under section 120B.11, and aligns with academic
53.22standards under section 120B.021, subdivision 1. Revenues and expenditures for full-day
53.23kindergarten must be accounted for in the school district's general fund. Learning activities
53.24provided as a part of a community education program are not kindergarten, and must be
53.25accounted for in the school district's community service fund.

53.26    Sec. 2. Minnesota Statutes 2006, section 123B.36, subdivision 1, is amended to read:
53.27    Subdivision 1. School boards may require fees. (a) For purposes of this
53.28subdivision, "home school" means a home school as defined in sections 120A.22 and
53.29120A.24 with five or fewer students receiving instruction.
53.30    (b) A school board is authorized to require payment of fees in the following areas:
53.31    (1) in any program where the resultant product, in excess of minimum requirements
53.32and at the pupil's option, becomes the personal property of the pupil;
53.33    (2) admission fees or charges for extracurricular activities, where attendance
53.34is optional and where the admission fees or charges a student must pay to attend or
54.1participate in an extracurricular activity is the same for all students, regardless of whether
54.2the student is enrolled in a public or a home school;
54.3    (3) a security deposit for the return of materials, supplies, or equipment;
54.4    (4) personal physical education and athletic equipment and apparel, although any
54.5pupil may personally provide it if it meets reasonable requirements and standards relating
54.6to health and safety established by the board;
54.7    (5) items of personal use or products that a student has an option to purchase such as
54.8student publications, class rings, annuals, and graduation announcements;
54.9    (6) fees specifically permitted by any other statute, including but not limited to
54.10section 171.05, subdivision 2; provided (i) driver education fees do not exceed the actual
54.11cost to the school and school district of providing driver education, and (ii) the driver
54.12education courses are open to enrollment to persons between the ages of 15 and 18 who
54.13reside or attend school in the school district;
54.14    (7) field trips considered supplementary to a district educational program;
54.15    (8) any authorized voluntary student health and accident benefit plan;
54.16    (9) for the use of musical instruments owned or rented by the district, a reasonable
54.17rental fee not to exceed either the rental cost to the district or the annual depreciation plus
54.18the actual annual maintenance cost for each instrument;
54.19    (10) transportation of pupils to and from extracurricular activities conducted at
54.20locations other than school, where attendance is optional;
54.21    (11) transportation to and from school of pupils living within two miles from school
54.22and all other transportation services not required by law. If a district charges fees for
54.23transportation of pupils, it must establish guidelines for that transportation to ensure that
54.24no pupil is denied transportation solely because of inability to pay;
54.25    (12) motorcycle classroom education courses conducted outside of regular school
54.26hours; provided the charge must not exceed the actual cost of these courses to the school
54.27district;
54.28    (13) transportation to and from postsecondary institutions for pupils enrolled under
54.29the postsecondary enrollment options program under section 123B.88, subdivision 22.
54.30Fees collected for this service must be reasonable and must be used to reduce the cost
54.31of operating the route. Families who qualify for mileage reimbursement under section
54.32124D.09, subdivision 22 , may use their state mileage reimbursement to pay this fee. If
54.33no fee is charged, districts must allocate costs based on the number of pupils riding the
54.34route.; and
54.35    (14) the additional cost of an optional full-day kindergarten program in a district or a
54.36charter school that also provides a half-time kindergarten option, except that no fee shall
55.1be charged for providing a child with a disability a free and appropriate public education
55.2in accordance with the child's individualized education program according to section
55.3125A.03. If a district charges fees for a full-day kindergarten program, it must establish a
55.4reasonable sliding fee scale but it shall waive the fee for a participant unable to pay.

55.5    Sec. 3. Minnesota Statutes 2006, section 123B.37, subdivision 1, is amended to read:
55.6    Subdivision 1. Boards shall not charge certain fees. (a) A board is not authorized
55.7to charge fees in the following areas:
55.8    (1) textbooks, workbooks, art materials, laboratory supplies, towels;
55.9    (2) supplies necessary for participation in any instructional course except as
55.10authorized in sections 123B.36 and 123B.38;
55.11    (3) field trips that are required as a part of a basic education program or course;
55.12    (4) graduation caps, gowns, any specific form of dress necessary for any educational
55.13program, and diplomas;
55.14    (5) instructional costs for necessary school personnel employed in any course or
55.15educational program required for graduation except as authorized in section 123B.36,
55.16subdivision 1, clause (14);
55.17    (6) library books required to be utilized for any educational course or program;
55.18    (7) admission fees, dues, or fees for any activity the pupil is required to attend;
55.19    (8) any admission or examination cost for any required educational course or
55.20program;
55.21    (9) locker rentals;
55.22    (10) transportation to and from school of pupils living two miles or more from
55.23school.
55.24    (b) Notwithstanding paragraph (a), clauses (1) and (6), a board may charge fees
55.25for textbooks, workbooks, and library books, lost or destroyed by students. The board
55.26must annually notify parents or guardians and students about its policy to charge a fee
55.27under this paragraph.

55.28    Sec. 4. Minnesota Statutes 2007 Supplement, section 124D.13, subdivision 11, is
55.29amended to read:
55.30    Subd. 11. Teachers. A school board must employ necessary qualified licensed
55.31teachers licensed in early childhood or parent education for its early childhood family
55.32education programs. The Board of Teaching, at its discretion, may grant an applicant a
55.33variance under this subdivision, consistent with sections 122A.09, subdivision 10, and
55.34122A.25, and Board of Teaching rules.
56.1EFFECTIVE DATE.This section is effective the day following final enactment.

56.2    Sec. 5. Minnesota Statutes 2006, section 124D.522, is amended to read:
56.3124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
56.4GRANTS.
56.5    (a) The commissioner, in consultation with the policy review task force under
56.6section 124D.521, may make grants to nonprofit organizations to provide services that
56.7are not offered by a district adult basic education program or that are supplemental to
56.8either the statewide adult basic education program, or a district's adult basic education
56.9program. The commissioner may make grants for: staff development for adult basic
56.10education teachers and administrators; training for volunteer tutors; training, services, and
56.11materials for serving disabled students through adult basic education programs; statewide
56.12promotion of adult basic education services and programs; development and dissemination
56.13of instructional and administrative technology for adult basic education programs;
56.14programs which primarily serve communities of color; adult basic education distance
56.15learning projects, including television instruction programs; and other supplemental
56.16services to support the mission of adult basic education and innovative delivery of adult
56.17basic education services.
56.18    (b) The commissioner must establish eligibility criteria and grant application
56.19procedures. Grants under this section must support services throughout the state, focus on
56.20educational results for adult learners, and promote outcome-based achievement through
56.21adult basic education programs. Beginning in fiscal year 2002, the commissioner may
56.22make grants under this section from the state total adult basic education aid set aside for
56.23supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
56.24for supplemental service grants must be used for grants for adult basic education programs
56.25to encourage and support innovations in adult basic education instruction and service
56.26delivery. A grant to a single organization cannot exceed $100,000 25 percent of the total
56.27supplemental services aid. Nothing in this section prevents an approved adult basic
56.28education program from using state or federal aid to purchase supplemental services.

56.29    Sec. 6. Minnesota Statutes 2006, section 124D.55, is amended to read:
56.30124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
56.31    The commissioner shall pay 60 percent of the fee that is charged to an eligible
56.32individual for the full battery of a general education development (GED) test, but not more
56.33than $20 $40 for an eligible individual."
56.34Amend the title accordingly