1.1.................... moves to amend H.F. No. 2083 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2011 Supplement, section 123B.41, subdivision 2, is
1.6amended to read:
1.7    Subd. 2. Textbook. (a) "Textbook" means any book or book substitute, including
1.8electronic books as well as other printed materials delivered electronically, which a pupil
1.9uses as a text or text substitute in a particular class or program in the school regularly
1.10attended and a copy of which is expected to be available for the individual use of each
1.11pupil in this class or program.
1.12(b) For purposes of calculating the annual nonpublic pupil aid entitlement for
1.13textbooks, the term shall be limited to books, workbooks, or manuals, whether bound
1.14or in loose-leaf form, as well as electronic books and other printed materials delivered
1.15electronically, intended for use as a principal source of study material for a given class or a
1.16group of students.
1.17(c) For purposes of sections 123B.40 to 123B.48, the term includes terms "textbook"
1.18and "software or other educational technology" include only such secular, neutral, and
1.19nonideological textbooks materials as are available, used by, or of benefit to Minnesota
1.20public school pupils.
1.21EFFECTIVE DATE.This section is effective July 1, 2012.

1.22    Sec. 2. Minnesota Statutes 2010, section 123B.41, is amended by adding a subdivision
1.23to read:
2.1    Subd. 5a. Software or other educational technology. For purposes of sections
2.2123B.42 and 123B.43, "software or other educational technology" includes software,
2.3programs, applications, hardware, and any other electronic educational technology.
2.4EFFECTIVE DATE.This section is effective July 1, 2012.

2.5    Sec. 3. Minnesota Statutes 2010, section 123B.42, is amended to read:
2.6123B.42 TEXTBOOKS; INDIVIDUAL INSTRUCTION OR COOPERATIVE
2.7LEARNING MATERIAL; STANDARD TESTS.
2.8    Subdivision 1. Providing education materials and tests. The commissioner of
2.9education shall promulgate rules under the provisions of chapter 14 requiring that in
2.10each school year, based upon formal requests by or on behalf of nonpublic school pupils
2.11in a nonpublic school, the local districts or intermediary service areas must purchase or
2.12otherwise acquire textbooks, individualized instructional or cooperative learning materials,
2.13software or other educational technology, and standardized tests and loan or provide them
2.14for use by children enrolled in that nonpublic school. These textbooks, individualized
2.15instructional or cooperative learning materials, software or other educational technology,
2.16and standardized tests must be loaned or provided free to the children for the school year
2.17for which requested. The loan or provision of the textbooks, individualized instructional or
2.18cooperative learning materials, and standardized tests shall be subject to rules prescribed
2.19by the commissioner of education.
2.20    Subd. 1a. Curriculum; electronic components. A school district that provides
2.21curriculum to resident students that has both physical and electronic components must
2.22make the electronic component accessible to a resident student in a home school in
2.23compliance with sections 120A.22 and 120A.24 at the request of the student or the
2.24student's parent or guardian, provided that the district does not incur more than an
2.25incidental cost as a result of providing access electronically.
2.26    Subd. 2. Title to education materials and tests. The title to textbooks,
2.27individualized instructional or cooperative learning materials, software or other
2.28educational technology, and standardized testing materials must remain in the servicing
2.29school district or intermediary service area, and possession or custody may be granted
2.30or charged to administrators of the nonpublic school attended by the nonpublic school
2.31pupil or pupils to whom the textbooks, individualized instructional or cooperative learning
2.32materials, or standardized tests are loaned or provided.
2.33    Subd. 3. Cost; limitation. (a) The cost per pupil of the textbooks, individualized
2.34instructional or cooperative learning materials, software or other educational technology,
3.1and standardized tests provided for in this section for each school year must not exceed the
3.2statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
3.3public elementary and secondary schools for textbooks, individualized instructional
3.4materials and standardized tests as computed and established by the department by
3.5February 1 of the preceding school year from the most recent public school year data
3.6then available.
3.7(b) The cost computed in clause (a) shall be increased by an inflation adjustment
3.8equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
3.9subdivision 2 , from the second preceding school year to the current school year.
3.10(c) The commissioner shall allot to the districts or intermediary service areas the
3.11total cost for each school year of providing or loaning the textbooks, individualized
3.12instructional or cooperative learning materials, software or other educational technology,
3.13and standardized tests for the pupils in each nonpublic school. The allotment shall not
3.14exceed the product of the statewide average expenditure per pupil, according to clause
3.15(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
3.16who make requests pursuant to this section and who are enrolled as of September 15 of
3.17the current school year.
3.18EFFECTIVE DATE.This section is effective July 1, 2012.

3.19    Sec. 4. Minnesota Statutes 2010, section 123B.43, is amended to read:
3.20123B.43 USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.
3.21(a) The commissioner shall assure that textbooks and individualized instructional
3.22materials loaned to nonpublic school pupils are secular, neutral, nonideological and that
3.23they are incapable of diversion for religious use.
3.24(b) Textbooks and, individualized instructional materials, software and other
3.25technology must not be used in religious courses, devotional exercises, religious training
3.26or any other religious activity.
3.27(c) Textbooks and individualized instructional materials must be loaned only to
3.28individual pupils upon the request of a parent or guardian or the pupil on a form designated
3.29for this use by the commissioner. The request forms shall provide for verification by the
3.30parent or guardian or pupil that the requested textbooks and individualized instructional
3.31materials are for the use of the individual pupil in connection with a program of instruction
3.32in the pupil's elementary or secondary school.
3.33(d) The servicing school district or the intermediary service area must take
3.34adequate measures to ensure an accurate and periodic inventory of all textbooks and ,
4.1 individualized instructional materials, software and other technology loaned to elementary
4.2and secondary school pupils attending nonpublic schools. The commissioner of education
4.3shall promulgate rules under the provisions of chapter 14 to terminate the eligibility of any
4.4nonpublic school pupil if the commissioner determines, after notice and opportunity for
4.5hearing, that the textbooks or, individualized instructional materials, or software or other
4.6technology have been used in a manner contrary to the provisions of section 123B.41,
4.7subdivision 5 , 123B.42, or this section or any rules promulgated by the commissioner
4.8of education.
4.9(e) Nothing contained in section 123B.41, subdivision 5, 123B.42, or this section
4.10shall be construed to authorize the making of any payments to a nonpublic school or its
4.11faculty, staff or administrators for religious worship or instruction or for any other purpose.
4.12EFFECTIVE DATE.This section is effective July 1, 2012.

4.13    Sec. 5. Minnesota Statutes 2010, section 126C.10, subdivision 28, is amended to read:
4.14    Subd. 28. Equity region. For the purposes of computing equity revenue under
4.15subdivision 24, a district whose with its administrative offices on July 1, 1999, is office
4.16located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington County on
4.17January 1, 2012, is part of the metro equity region. Districts whose administrative offices
4.18on July 1, 1999, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or
4.19Washington County All other districts are part of the rural equity region.
4.20EFFECTIVE DATE.This section is effective for revenue for fiscal years 2013
4.21and later.

4.22    Sec. 6. Minnesota Statutes 2011 Supplement, section 127A.33, is amended to read:
4.23127A.33 SCHOOL ENDOWMENT FUND; APPORTIONMENT.
4.24(a) The commissioner shall apportion the school endowment fund semiannually
4.25on the first Monday in March and September in each year, to districts whose schools
4.26have been in session at least nine months. The apportionment shall be in proportion to
4.27each district's adjusted average daily membership during the preceding year. Any annual
4.28apportionment in excess of $28 per pupil in adjusted average daily membership must be
4.29reserved and used only for the school technology purposes listed in paragraph (b). The
4.30apportionment shall not be paid to a district for pupils for whom tuition is received by
4.31the district.
4.32(b) For purposes of this section, revenue reserved under paragraph (a) for school
4.33technology purposes may only be used:
5.1(1) to purchase or lease computers and related materials, copying machines,
5.2telecommunications equipment, and other noninstructional equipment;
5.3(2) to purchase or lease assistive technology or equipment for instructional programs;
5.4(3) to purchase new and replacement library media resources or technology;
5.5(4) to pay for ongoing or recurring telecommunications or Internet access costs
5.6associated with Internet access, data lines, and video links; or
5.7(5) to pay for service provider installation fees for installation of new
5.8telecommunications lines or increased bandwidth.
5.9EFFECTIVE DATE.This section is effective for apportionments occurring on or
5.10after July 1, 2012.

5.11    Sec. 7. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
5.122, is amended to read:
5.13    Subd. 2. General education aid. For general education aid under Minnesota
5.14Statutes, section 126C.13, subdivision 4:

5.15 5.16		$	5,112,037,000 5,720,705,000	.....	2012
5.17 5.18		$	5,850,065,000 5,854,570,000	.....	2013

5.19The 2012 appropriation includes $1,678,539,000 $1,660,922,000 for 2011 and
5.20$3,433,498,000 $4,059,783,000 for 2012.
5.21The 2013 appropriation includes $2,297,765,000 $1,696,931,000 for 2012 and
5.22$3,552,300,000 $4,157,639,000 for 2013.

5.23    Sec. 8. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
5.243, is amended to read:
5.25    Subd. 3. Enrollment options transportation. For transportation of pupils attending
5.26postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
5.27of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

5.28		$	31,000 42,000	.....	2012
5.29		$	32,000 46,000	.....	2013

5.30    Sec. 9. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
5.314, is amended to read:
5.32    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
5.33127A.49 :

6.1 6.2		$	1,294,000 1,503,000	.....	2012
6.3 6.4		$	1,627,000 2,111,000	.....	2013

6.5The 2012 appropriation includes $346,000 for 2011 and $948,000 $1,157,000 for
6.62012.
6.7The 2013 appropriation includes $631,000 $491,000 for 2012 and $996,000
6.8$1,620,000 for 2013.

6.9    Sec. 10. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
6.105, is amended to read:
6.11    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
6.12Statutes, section 123A.485:

6.13		$	145,000	.....	2012
6.14		$	180,000 211,000	.....	2013

6.15The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
6.16The 2013 appropriation includes $0 for 2012 and $180,000 $211,000 for 2013.

6.17    Sec. 11. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
6.186, is amended to read:
6.19    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
6.20Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

6.21 6.22		$	14,598,000 15,232,000	.....	2012
6.23 6.24		$	16,198,000 15,578,000	.....	2013

6.25The 2012 appropriation includes $5,078,000 $4,161,000 for 2011 and $9,520,000
6.26$11,071,000 for 2012.
6.27The 2013 appropriation includes $6,346,000 $4,699,000 for 2012 and $9,852,000
6.28$10,879,000 for 2013.

6.29    Sec. 12. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
6.307, is amended to read:
6.31    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
6.32under Minnesota Statutes, section 123B.92, subdivision 9:

7.1 7.2		$	17,178,000 18,864,000	.....	2012
7.3 7.4		$	19,056,000 19,061,000	.....	2013

7.5The 2012 appropriation includes $5,895,000 $5,700,000 for 2011 and $11,283,000
7.6$13,164,000 for 2012.
7.7The 2013 appropriation includes $7,521,000 $5,587,000 for 2012 and $11,535,000
7.8$13,474,000 for 2013.

7.9    Sec. 13. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
7.1010, is amended to read:
7.11    Subd. 10. Compensatory pilot project formula aid. For grants for compensatory
7.12pilot project formula aid as calculated under this subdivision:

7.13 7.14

$

9,776,000 10,228,000

.....

2013

7.15For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20
7.16largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of
7.17compensatory pupil units, minus the amount of compensatory education revenue received
7.18by the district under Minnesota Statutes, section 126C.10, subdivision 3.
7.19The 2013 appropriation includes $0 for 2012 and $9,776,000 $10,228,000 for 2013.
7.20This is a onetime appropriation.

7.21    Sec. 14. EFFECTIVE DATE.
7.22Unless otherwise specified, this article is effective the day following final enactment.


7.25    Section 1. Minnesota Statutes 2010, section 13.43, subdivision 2, is amended to read:
7.26    Subd. 2. Public data. (a) Except for employees described in subdivision 5 and
7.27subject to the limitations described in subdivision 5a, the following personnel data on
7.28current and former employees, volunteers, and independent contractors of a government
7.29entity is public:
7.30    (1) name; employee identification number, which must not be the employee's Social
7.31Security number; actual gross salary; salary range; terms and conditions of employment
7.32relationship; contract fees; actual gross pension; the value and nature of employer paid
7.33fringe benefits; and the basis for and the amount of any added remuneration, including
7.34expense reimbursement, in addition to salary;
8.1    (2) job title and bargaining unit; job description; education and training background;
8.2and previous work experience;
8.3    (3) date of first and last employment;
8.4    (4) the existence and status of any complaints or charges against the employee,
8.5regardless of whether the complaint or charge resulted in a disciplinary action;
8.6    (5) the final disposition of any disciplinary action together with the specific reasons
8.7for the action and data documenting the basis of the action, excluding data that would
8.8identify confidential sources who are employees of the public body;
8.9    (6) the terms of any agreement settling any dispute or other arrangement arising out
8.10of an employment relationship, including (i) a buyout agreement as defined in section
8.11123B.143, subdivision 2 , paragraph (a), (ii) a settlement agreement for a lump sum
8.12payment made in lieu of salary or other compensation, or (iii) any agreement settling any
8.13dispute; except that the agreement must include specific reasons for the agreement if it
8.14involves the payment of more than $10,000 of public money;
8.15    (7) work location; a work telephone number; badge number; work-related continuing
8.16education; and honors and awards received; and
8.17    (8) payroll time sheets or other comparable data that are only used to account for
8.18employee's work time for payroll purposes, except to the extent that release of time sheet
8.19data would reveal the employee's reasons for the use of sick or other medical leave
8.20or other not public data.
8.21    (b) For purposes of this subdivision, a final disposition occurs when the government
8.22entity makes its final decision about the disciplinary action, regardless of the possibility of
8.23any later proceedings or court proceedings. Final disposition includes a resignation by an
8.24individual when the resignation occurs after the final decision of the government entity,
8.25or arbitrator. In the case of arbitration proceedings arising under collective bargaining
8.26agreements, a final disposition occurs at the conclusion of the arbitration proceedings,
8.27or upon the failure of the employee to elect arbitration within the time provided by the
8.28collective bargaining agreement. A disciplinary action does not become public data if an
8.29arbitrator sustains a grievance and reverses all aspects of any disciplinary action.
8.30    (c) The government entity may display a photograph of a current or former employee
8.31to a prospective witness as part of the government entity's investigation of any complaint
8.32or charge against the employee.
8.33    (d) A complainant has access to a statement provided by the complainant to a
8.34government entity in connection with a complaint or charge against an employee.
8.35    (e) Notwithstanding paragraph (a), clause (5), upon completion of an investigation
8.36of a complaint or charge against a public official, or if a public official resigns or is
9.1terminated from employment while the complaint or charge is pending, all data relating to
9.2the complaint or charge are public, unless access to the data would jeopardize an active
9.3investigation or reveal confidential sources. For purposes of this paragraph, "public
9.4official" means:
9.5    (1) the head of a state agency and deputy and assistant state agency heads;
9.6    (2) members of boards or commissions required by law to be appointed by the
9.7governor or other elective officers; and
9.8    (3) executive or administrative heads of departments, bureaus, divisions, or
9.9institutions within state government.
9.10EFFECTIVE DATE.This section is effective the day following final enactment
9.11and applies to any agreement entered into or modified after that date.

9.12    Sec. 2. Minnesota Statutes 2011 Supplement, section 122A.245, subdivision 1, is
9.13amended to read:
9.14    Subdivision 1. Requirements. (a) To improve academic excellence, improve ethnic
9.15and cultural diversity in the classroom, and close the academic achievement gap, the
9.16Board of Teaching must approve qualified teacher preparation programs under this section
9.17that are a means to acquire a two-year limited-term license, which the board may renew
9.18one time for an additional one-year term, and to prepare for acquiring a standard license.
9.19The following entities are eligible to participate under this section:
9.20(1) a school district or charter school that forms a partnership with a college or
9.21university that has a board-approved alternative teacher preparation program; or
9.22(2) a school district or charter school, after consulting with a college or university
9.23with a board-approved teacher preparation program, forms a partnership with a nonprofit
9.24corporation organized under chapter 317A for an education-related purpose that has a
9.25board-approved teacher preparation program.
9.26(b) Before participating in this program, a candidate must:
9.27(1) have a bachelor's degree with a 3.0 or higher grade point average unless the
9.28board waives the grade point average requirement based on board-adopted criteria;
9.29(2) pass the reading, writing, and mathematics skills examination under section
9.30122A.09, subdivision 4 , paragraph (b); and
9.31(3) obtain qualifying scores on applicable board-approved rigorous content area and
9.32pedagogy examinations under section 122A.09, subdivision 4, paragraph (e).
9.33(c) The Board of Teaching must issue a two-year limited-term license to a person
9.34who enrolls in an alternative teacher preparation program. This limited-term license is not
9.35a provisional license under section 122A.40 or section 122A.41.
10.1EFFECTIVE DATE.This section is effective the day following final enactment.

10.2    Sec. 3. Minnesota Statutes 2010, section 122A.40, subdivision 10, is amended to read:
10.3    Subd. 10. Negotiated unrequested leave of absence. (a) The school board and
10.4the exclusive bargaining representative of the teachers may negotiate a plan providing for
10.5unrequested leave of absence without pay or fringe benefits for as many teachers as may
10.6be necessary because of discontinuance of position, lack of pupils, financial limitations, or
10.7merger of classes caused by consolidation of districts. Failing to successfully negotiate
10.8such a plan, the provisions of subdivision 11 shall apply. The negotiated plan must not
10.9include provisions which would result in the exercise of seniority by a teacher holding a
10.10provisional license, other than a vocational education license if required for the position,
10.11contrary to the provisions of subdivision 11, clause paragraph (c), or the reinstatement of a
10.12teacher holding a provisional license, other than a vocational education license required
10.13for the position, contrary to the provisions of subdivision 11, clause (e) paragraph (f).
10.14The provisions of section 179A.16 do not apply for the purposes of this subdivision.
10.15Notwithstanding other law to the contrary, the school board and the exclusive bargaining
10.16representative of the teachers may negotiate a plan to base unrequested leave of absence
10.17decisions on teachers' subject matter licensure fields and evaluation outcomes, from the
10.18least to most effective category under subdivision 8 and from least to greatest seniority,
10.19including probationary teachers, within each category, which if negotiated, must be
10.20consistent with subdivision 11, paragraph (n).
10.21(b) Notwithstanding other law to the contrary, if a school board fails to successfully
10.22negotiate a plan under paragraph (a), the provisions of subdivision 11 apply unless a
10.23majority of school board members formally decides to place teachers on unrequested leave
10.24of absence based on teachers' subject matter licensure fields and evaluation outcomes,
10.25from the least to most effective category under subdivision 8 and from least to greatest
10.26seniority, including probationary teachers, within each effectiveness category; the decision
10.27must be consistent with subdivision 11, paragraph (n). In such a case the board must
10.28develop, publish, and implement an unrequested leave of absence plan based on teachers'
10.29subject matter licensure fields and evaluation outcomes, from the least to most effective
10.30category under subdivision 8 and from least to greatest seniority, including probationary
10.31teachers, within each effectiveness category, and subdivision 11, paragraphs (a) through
10.32(m), do not apply.
10.33(c) For purposes of placing a teacher on unrequested leave of absence or recalling a
10.34teacher from unrequested leave of absence, nothing in this subdivision requires a school
10.35board to reassign a teacher with more seniority to a different subject matter licensure
11.1field or to a substantially different grade level assignment in order to accommodate the
11.2seniority claims of a teacher who is similarly licensed and effective but with less seniority.
11.3For purposes of this subdivision, a teacher holding a provisional license in a subject
11.4area includes a teacher who has received a waiver or variance to teach that subject from
11.5the Minnesota Board of Teaching. "A substantially different grade level assignment"
11.6means an assignment between kindergarten, grades 1 through 6, junior high school, and
11.7senior high school.
11.8(d) Nothing in this subdivision permits a school board to use a teacher's remuneration
11.9as the basis for making unrequested leave of absence or discharge decisions.
11.10EFFECTIVE DATE.This section is effective the day following final enactment
11.11and applies to negotiated plans agreed to after that date.

11.12    Sec. 4. Minnesota Statutes 2010, section 122A.40, subdivision 11, is amended to read:
11.13    Subd. 11. Unrequested leave of absence. The board may place on unrequested
11.14leave of absence, without pay or fringe benefits, as many teachers as may be necessary
11.15because of discontinuance of position, lack of pupils, financial limitations, or merger
11.16of classes caused by consolidation or reorganization of districts under chapter 123A.
11.17The unrequested leave is effective at the close of the school year. In placing teachers on
11.18unrequested leave, the board is governed by the following provisions:
11.19(a) The board may place probationary teachers on unrequested leave first in the
11.20inverse order of their employment. A teacher who has acquired continuing contract rights
11.21must not be placed on unrequested leave of absence while probationary teachers are
11.22retained in positions for which the teacher who has acquired continuing contract rights is
11.23licensed;
11.24(b) Teachers who have acquired continuing contract rights shall be placed on
11.25unrequested leave of absence in fields in which they are licensed in the inverse order
11.26in which they were employed by the school district. In the case of equal seniority, the
11.27order in which teachers who have acquired continuing contract rights shall be placed on
11.28unrequested leave of absence in fields in which they are licensed is negotiable;
11.29(c) Notwithstanding the provisions of clause paragraph (b), a teacher is not entitled
11.30to exercise any seniority when that exercise results in that teacher being retained by the
11.31district in a field for which the teacher holds only a provisional license, as defined by the
11.32board of teaching, unless that exercise of seniority results in the placement on unrequested
11.33leave of absence of another teacher who also holds a provisional license in the same field.
11.34The provisions of this clause paragraph do not apply to vocational education licenses
11.35required for available positions;
12.1(d) Notwithstanding clauses paragraphs (a), (b) and (c), if the placing of a
12.2probationary teacher on unrequested leave before a teacher who has acquired continuing
12.3rights, the placing of a teacher who has acquired continuing contract rights on unrequested
12.4leave before another teacher who has acquired continuing contract rights but who has
12.5greater seniority, or the restriction imposed by the provisions of clause paragraph (c) would
12.6place the district in violation of its affirmative action program, the district may retain the
12.7probationary teacher, the teacher with less seniority, or the provisionally licensed teacher;
12.8(e) For purposes of placing a teacher on unrequested leave of absence or recalling a
12.9teacher from unrequested leave of absence, nothing in this subdivision requires a school
12.10board to reassign a teacher with more seniority to a different subject matter licensure
12.11field or to a substantially different grade level assignment in order to accommodate
12.12the seniority claims of a teacher who is similarly licensed and effective but with less
12.13seniority. "A substantially different grade level assignment" means an assignment between
12.14kindergarten, grades 1 through 6, junior high school, and senior high school;
12.15(f) Teachers placed on unrequested leave of absence must be reinstated to the
12.16positions from which they have been given leaves of absence or, if not available, to other
12.17available positions in the school district in fields in which they are licensed. Reinstatement
12.18must be in the inverse order of placement on leave of absence. A teacher must not be
12.19reinstated to a position in a field in which the teacher holds only a provisional license,
12.20other than a vocational education license if required for the position, while another teacher
12.21who holds a nonprovisional license in the same field remains on unrequested leave.
12.22The order of reinstatement of teachers who have equal seniority and who are placed on
12.23unrequested leave in the same school year is negotiable;
12.24(f) (g) Appointment of a new teacher must not be made while there is available, on
12.25unrequested leave, a teacher who is properly licensed to fill such vacancy, unless the
12.26teacher fails to advise the school board within 30 days of the date of notification that a
12.27position is available to that teacher who may return to employment and assume the duties
12.28of the position to which appointed on a future date determined by the board;
12.29(g) (h) A teacher placed on unrequested leave of absence may engage in teaching
12.30or any other occupation during the period of this leave;
12.31(h) (i) The unrequested leave of absence must not impair the continuing contract
12.32rights of a teacher or result in a loss of credit for previous years of service;
12.33(i) (j) Consistent with paragraph (n) and subdivision 10, the unrequested leave of
12.34absence of a teacher who is categorized as effective or better under subdivision 8, who
12.35is placed on unrequested leave of absence, and who is not reinstated shall continue for a
12.36period of five years, after which the right to reinstatement shall terminate terminates. The
13.1teacher's right to reinstatement shall also terminate terminates if the teacher fails to file
13.2with the board by April 1 of any each year a written statement requesting reinstatement;
13.3(k) Consistent with paragraph (n) and subdivision 10, the unrequested leave of
13.4absence of a teacher who is categorized as ineffective or less under subdivision 8, who
13.5is placed on unrequested leave of absence, and who is not reinstated continues for the
13.6following school year only, after which the teacher's right to reinstatement terminates. The
13.7teacher's right to reinstatement also terminates if the teacher fails to file with the board by
13.8April 1 in that following school year a written statement requesting reinstatement;
13.9(j) (l) The same provisions applicable to terminations of probationary or continuing
13.10contracts in subdivisions 5 and 7 must apply to placement on unrequested leave of absence;
13.11(k) (m) Nothing in this subdivision shall be construed to impair the rights of teachers
13.12placed on unrequested leave of absence to receive unemployment benefits if otherwise
13.13eligible.;
13.14(n) Beginning in the 2016-2017 school year and later, and notwithstanding any
13.15contradictory provisions in this subdivision, a school board must place teachers on
13.16unrequested leave of absence based on their subject matter licensure fields and most recent
13.17evaluation outcomes, from the least to most effective category under subdivision 8 and
13.18from least to greatest seniority, including probationary teachers, within each effectiveness
13.19category. A school board is not required to reassign a teacher with more seniority
13.20to a different subject matter licensure field or to a substantially different grade level
13.21assignment in order to accommodate the seniority claims of a teacher who is similarly
13.22licensed and effective but with less seniority. A school board may decide not to renew a
13.23probationary teacher's contract as it sees fit. The school board must make available to the
13.24public in a readily accessible format the unrequested leave of absence plan it develops and
13.25implements under this paragraph.
13.26(o) For purposes of this subdivision, a teacher who holds a provisional license in a
13.27subject area includes a teacher who has received a waiver or variance to teach that subject
13.28from the Minnesota Board of Teaching.
13.29EFFECTIVE DATE.This section is effective the day following final enactment
13.30except that paragraph (n) is effective for the 2016-2017 school year and later.

13.31    Sec. 5. Minnesota Statutes 2010, section 122A.40, subdivision 13, is amended to read:
13.32    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
13.33(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
13.34of the following grounds:
13.35(1) immoral conduct, insubordination, or conviction of a felony;
14.1(2) conduct unbecoming a teacher which requires the immediate removal of the
14.2teacher from classroom or other duties;
14.3(3) failure without justifiable cause to teach without first securing the written release
14.4of the school board;
14.5(4) gross inefficiency which the teacher has failed to correct after reasonable written
14.6notice;
14.7(5) willful neglect of duty; or
14.8(6) continuing physical or mental disability subsequent to a 12 months leave of
14.9absence and inability to qualify for reinstatement in accordance with subdivision 12.
14.10For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
14.11discriminatory practice described in section 363A.13.
14.12Prior to discharging a teacher under this paragraph, the board must notify the
14.13teacher in writing and state its ground for the proposed discharge in reasonable detail.
14.14Within ten days after receipt of this notification the teacher may make a written request
14.15for a hearing before the board and it shall be granted before final action is taken. The
14.16board may, however, suspend a teacher with pay pending the conclusion of such the
14.17hearing and determination of the issues raised in the hearing after charges have been
14.18filed which constitute ground for discharge. If a teacher has been charged with a felony
14.19and the underlying conduct that is the subject of the felony charge is a ground for a
14.20proposed immediate discharge, the suspension pending the conclusion of the hearing and
14.21determination of the issues may be without pay. If a hearing under this paragraph is held,
14.22the board must reimburse the teacher for any salary or compensation withheld if the
14.23final decision of the board or the arbitrator does not result in a penalty to or suspension,
14.24termination, or discharge of the teacher.
14.25(b) A board must discharge a continuing-contract teacher, effective immediately,
14.26upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
14.27teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
14.28EFFECTIVE DATE.This section is effective the day following final enactment.

14.29    Sec. 6. Minnesota Statutes 2011 Supplement, section 122A.41, subdivision 6, is
14.30amended to read:
14.31    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
14.32in paragraph (b), causes for the discharge or demotion of a teacher either during or after
14.33the probationary period must be:
14.34(1) immoral character, conduct unbecoming a teacher, or insubordination;
15.1(2) failure without justifiable cause to teach without first securing the written release
15.2of the school board having the care, management, or control of the school in which the
15.3teacher is employed;
15.4(3) inefficiency in teaching or in the management of a school, consistent with
15.5subdivision 5, paragraph (b);
15.6(4) affliction with active tuberculosis or other communicable disease must be
15.7considered as cause for removal or suspension while the teacher is suffering from such
15.8disability; or
15.9(5) discontinuance of position or lack of pupils.
15.10Notwithstanding other law to the contrary, the school board and the exclusive
15.11representative of the teachers may negotiate an agreement to discharge or demote
15.12teachers under clause (5) based on their subject matter licensure fields and evaluation
15.13outcomes, from the least to most effective category under subdivision 5 and from least to
15.14greatest seniority, including probationary teachers, within each effectiveness category.
15.15Alternatively, the majority of the school board members may formally decide to discharge
15.16or demote teachers under clause (5) based on their subject matter licensure fields and
15.17evaluation outcomes, from the least to most effective category under subdivision 5 and
15.18from least to greatest seniority, including probationary teachers, within each effectiveness
15.19category; in this case the board must develop and implement a discharge and demotion
15.20plan based on teachers' subject matter licensure fields and evaluation outcomes, from the
15.21least to most effective category and from least to greatest seniority, including probationary
15.22teachers, within each effectiveness category. Beginning in the 2016-2017 school year and
15.23later, and notwithstanding any contradictory provisions in this subdivision, the school
15.24board must discharge or demote teachers under clause (5) based on their subject matter
15.25licensure fields and most recent evaluation outcomes, from the least to most effective
15.26category under subdivision 5 and from least to greatest seniority, including probationary
15.27teachers, within each effectiveness category. Nothing in this subdivision permits a school
15.28board to use a teacher's remuneration as the basis for making discharge or demotion
15.29decisions. The school board must make available to the public in a readily accessible
15.30format any discharge and demotion plan it develops to implement clause (5) of this
15.31paragraph.
15.32For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
15.33discriminatory practice described in section 363A.13.
15.34(b) A probationary or continuing-contract teacher must be discharged immediately
15.35upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
15.36teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
16.1EFFECTIVE DATE.This section is effective the day following final enactment
16.2and applies to negotiated plans agreed to after that date.

16.3    Sec. 7. Minnesota Statutes 2010, section 122A.41, subdivision 14, is amended to read:
16.4    Subd. 14. Services terminated by discontinuance or lack of pupils; preference
16.5given. (a) To the extent consistent with paragraph (c) and subdivision 6, paragraph (a),
16.6clause (5), a teacher whose services are terminated on account of discontinuance of
16.7position or lack of pupils must receive first consideration for other positions in the district
16.8for which that teacher is qualified. In the event If it becomes is necessary to discontinue
16.9one or more positions, in making such discontinuance, teachers must be discontinued in
16.10any department in the inverse order in which they were employed, unless a board and the
16.11exclusive representative of teachers in the district negotiate a plan providing otherwise.
16.12(b) Notwithstanding the provisions of clause paragraph (a), and to the extent
16.13consistent with paragraph (c) and subdivision 6, paragraph (a), a teacher is not entitled
16.14to exercise any seniority when that exercise results in that teacher being retained by the
16.15district in a field for which the teacher holds only a provisional license, as defined by the
16.16Board of Teaching, unless that exercise of seniority results in the termination of services,
16.17on account of discontinuance of position or lack of pupils, of another teacher who also
16.18holds a provisional license in the same field. The provisions of this clause do not apply
16.19to vocational education licenses.
16.20(c) For purposes of discharging, demoting, or recalling a teacher whose services are
16.21terminated under this subdivision, nothing in this subdivision requires a school board to
16.22reassign a teacher with more seniority to a different subject matter licensure field or to a
16.23substantially different grade level assignment in order to accommodate the seniority claims
16.24of a teacher who is similarly licensed and effective but with less seniority. "A substantially
16.25different grade level assignment" means an assignment between kindergarten, grades 1
16.26through 6, junior high school, and senior high school.
16.27(d) Notwithstanding the provisions of clause paragraph (a), and to the extent
16.28consistent with paragraph (c) and subdivision 6, paragraph (a), a teacher must not be
16.29reinstated to a position in a field in which the teacher holds only a provisional license,
16.30other than a vocational education license if required for the position, while another teacher
16.31who holds a nonprovisional license in the same field is available for reinstatement.
16.32(e) For purposes of this subdivision, a teacher who holds a provisional license in a
16.33subject area includes a teacher who has received a waiver or variance to teach that subject
16.34from the Minnesota Board of Teaching.
16.35EFFECTIVE DATE.This section is effective the day following final enactment.

17.1    Sec. 8. Minnesota Statutes 2010, section 123A.75, subdivision 1, is amended to read:
17.2    Subdivision 1. Teacher assignment. (a) As of the effective date of a consolidation
17.3in which a district is divided or the dissolution of a district and its attachment to two or
17.4more existing districts, each teacher employed by an affected district shall be assigned to
17.5the newly created or enlarged district on the basis of a ratio of the pupils assigned to each
17.6district according to the new district boundaries. The district receiving the greatest number
17.7of pupils must be assigned the teacher with the greatest seniority, and the remaining
17.8teachers must be alternately assigned to each district until the district receiving the fewest
17.9pupils has received its ratio of teachers who will not be retiring before the effective date of
17.10the consolidation or dissolution.
17.11(b) Notwithstanding paragraph (a), the board and the exclusive representative of
17.12teachers in each district involved in the consolidation or dissolution and attachment may
17.13negotiate a plan for assigning teachers to each newly created or enlarged district.
17.14(c) Notwithstanding other law to the contrary, the provisions of this section apply
17.15only to the extent they are consistent with section 122A.40, subdivisions 8, 10, and 11.
17.16EFFECTIVE DATE.This section is effective the day following final enactment.

17.17    Sec. 9. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
17.182, is amended to read:
17.19    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
17.20Statutes, section 124D.11, subdivision 4:

17.21 17.22		$	43,203,000 45,573,000	.....	2012
17.23 17.24		$	52,359,000 49,168,000	.....	2013

17.25The 2012 appropriation includes $13,336,000 $12,642,000 for 2011 and $29,867,000
17.26$32,931,000 for 2012.
17.27The 2013 appropriation includes $19,910,000 $13,979,000 for 2012 and $32,449,000
17.28$35,189,000 for 2013.

17.29    Sec. 10. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
17.303, is amended to read:
17.31    Subd. 3. Charter school start-up aid. For charter school start-up cost aid under
17.32Minnesota Statutes, section 124D.11, subdivision 8:

17.33		$	171,000 164,000	.....	2012
17.34		$	34,000 19,000	.....	2013

18.1The 2012 appropriation includes $119,000 for 2011 and $52,000 $45,000 for 2012.
18.2The 2013 appropriation includes $34,000 $19,000 for 2012 and $0 for 2013.

18.3    Sec. 11. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
18.44, is amended to read:
18.5    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
18.6124D.86 :

18.7 18.8		$	59,599,000 65,027,000	.....	2012
18.9 18.10		$	67,432,000 65,526,000	.....	2013

18.11The 2012 appropriation includes $19,272,000 for 2011 and $40,327,000 $45,755,000
18.12for 2012.
18.13The 2013 appropriation includes $26,884,000 $19,422,000 for 2012 and $40,548,000
18.14$46,104,000 for 2013.
18.15The base for the final payment in fiscal year 2014 for fiscal year 2013 is $34,828,000
18.16$27,794,000.

18.17    Sec. 12. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
18.185, is amended to read:
18.19    Subd. 5. Literacy incentive aid. For literacy incentive aid under Minnesota
18.20Statutes, section 124D.98:

18.21 18.22

$

29,151,000 34,107,000

.....

2013

18.23The 2013 appropriation includes $0 for 2012 and $29,151,000 $34,107,000 for 2013.

18.24    Sec. 13. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
18.256, is amended to read:
18.26    Subd. 6. Interdistrict desegregation or integration transportation grants. For
18.27interdistrict desegregation or integration transportation grants under Minnesota Statutes,
18.28section 124D.87:

18.29 18.30		$	14,917,000 13,262,000	.....	2012
18.31 18.32		$	16,612,000 13,966,000	.....	2013

19.1    Sec. 14. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
19.27, is amended to read:
19.3    Subd. 7. Success for the future. For American Indian success for the future grants
19.4under Minnesota Statutes, section 124D.81:

19.5 19.6		$	1,924,000 2,139,000	.....	2012
19.7		$	2,137,000	.....	2013

19.8The 2012 appropriation includes $641,000 $638,000 for 2011 and $1,283,000
19.9$1,501,000 for 2012.
19.10The 2013 appropriation includes $854,000 $636,000 for 2012 and $1,283,000
19.11$1,501,000 for 2013.

19.12    Sec. 15. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
19.139, is amended to read:
19.14    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
19.15Statutes, section 124D.83:

19.16 19.17		$	1,883,000 1,900,000	.....	2012
19.18 19.19		$	2,206,000 1,980,000	.....	2013

19.20The 2012 appropriation includes $600,000 for 2011 and $1,283,000 $1,300,000
19.21for 2012.
19.22The 2013 appropriation includes $855,000 $551,000 for 2012 and $1,351,000
19.23$1,429,000 for 2013.

19.24    Sec. 16. EFFECTIVE DATE.
19.25Unless otherwise specified, this article is effective the day following final enactment.


19.28    Section 1. Laws 2011, First Special Session chapter 11, article 3, section 11,
19.29subdivision 2, is amended to read:
19.30    Subd. 2. Special education; regular. For special education aid under Minnesota
19.31Statutes, section 125A.75:

19.32 19.33		$	732,658,000 816,648,000	.....	2012
19.34 19.35		$	855,605,000 859,067,000	.....	2013

20.1The 2012 appropriation includes $235,975,000 for 2011 and $496,683,000
20.2$580,673,000 for 2012.
20.3The 2013 appropriation includes $331,121,000 $246,496,000 for 2012 and
20.4$524,484,000 $612,571,000 for 2013.

20.5    Sec. 2. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 3,
20.6is amended to read:
20.7    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
20.8section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
20.9within the district boundaries for whom no district of residence can be determined:

20.10 20.11		$	1,648,000 1,508,000	.....	2012
20.12 20.13		$	1,745,000 1,593,000	.....	2013

20.14If the appropriation for either year is insufficient, the appropriation for the other
20.15year is available.

20.16    Sec. 3. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 4,
20.17is amended to read:
20.18    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
20.19services under Minnesota Statutes, section 125A.75, subdivision 1:

20.20		$	322,000 333,000	.....	2012
20.21		$	358,000 321,000	.....	2013

20.22The 2012 appropriation includes $107,000 for 2011 and $215,000 $226,000 for 2012.
20.23The 2013 appropriation includes $142,000 $95,000 for 2012 and $216,000 $226,000
20.24for 2013.

20.25    Sec. 4. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 5,
20.26is amended to read:
20.27    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
20.28Statutes, section 125A.79, subdivision 7:

20.29 20.30		$	103,978,000 112,522,000	.....	2012
20.31 20.32		$	115,304,000 115,411,000	.....	2013

20.33The 2012 appropriation includes $53,449,000 for 2011 and $50,529,000 $59,073,000
20.34for 2012.
21.1The 2013 appropriation includes $63,273,000 $54,642,000 for 2012 and $52,031,000
21.2$60,769,000 for 2013.

21.3    Sec. 5. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 6,
21.4is amended to read:
21.5    Subd. 6. Court-placed special education revenue. For reimbursing serving
21.6school districts for unreimbursed eligible expenditures attributable to children placed in
21.7the serving school district by court action under Minnesota Statutes, section 125A.79,
21.8subdivision 4 :

21.9		$	80,000 52,000	.....	2012
21.10		$	82,000 53,000	.....	2013

21.11    Sec. 6. EFFECTIVE DATE.
21.12Unless otherwise specified, this article is effective the day following final enactment.


21.15    Section 1. Laws 2011, First Special Session chapter 11, article 4, section 10,
21.16subdivision 2, is amended to read:
21.17    Subd. 2. Health and safety revenue. For health and safety aid according to
21.18Minnesota Statutes, section 123B.57, subdivision 5:

21.19		$	111,000 103,000	.....	2012
21.20		$	114,000 164,000	.....	2013

21.21The 2012 appropriation includes $39,000 for 2011 and $72,000 $64,000 for 2012.
21.22The 2013 appropriation includes $48,000 $27,000 for 2012 and $66,000 $137,000
21.23for 2013.

21.24    Sec. 2. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
21.253, is amended to read:
21.26    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
21.27Statutes, section 123B.53, subdivision 6:

21.28 21.29		$	11,022,000 12,453,000	.....	2012
21.30 21.31		$	19,484,000 16,554,000	.....	2013

21.32The 2012 appropriation includes $2,604,000 for 2011 and $8,418,000 $9,849,000
21.33for 2012.
22.1The 2013 appropriation includes $5,611,000 $4,180,000 for 2012 and $13,873,000
22.2$12,374,000 for 2013.

22.3    Sec. 3. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
22.44, is amended to read:
22.5    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
22.6according to Minnesota Statutes, section 123B.59, subdivision 1:

22.7 22.8		$	17,359,000 19,325,000	.....	2012
22.9		$	19,287,000	.....	2013

22.10The 2012 appropriation includes $5,786,000 $5,785,000 for 2011 and $11,573,000
22.11$13,540,000 for 2012.
22.12The 2013 appropriation includes $7,714,000 $5,747,000 for 2012 and $11,573,000
22.13$13,540,000 for 2013.

22.14    Sec. 4. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
22.156, is amended to read:
22.16    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
22.17Minnesota Statutes, section 123B.591, subdivision 4:

22.18 22.19		$	2,234,000 2,483,000	.....	2012
22.20 22.21		$	2,972,000 3,193,000	.....	2013

22.22The 2012 appropriation includes $676,000 for 2011 and $1,558,000 $1,807,000
22.23for 2012.
22.24The 2013 appropriation includes $1,038,000 $766,000 for 2012 and $1,934,000
22.25$2,427,000 for 2013.

22.26    Sec. 5. LEASE LEVY; ADMINISTRATIVE SPACE; FARIBAULT.
22.27Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
22.28School District No. 656, Faribault, may lease administrative space under Minnesota
22.29Statutes, section 126C.40, subdivision 1, if the district can demonstrate to the satisfaction
22.30of the commissioner of education that the administrative space is less expensive than
22.31instructional space that the district would otherwise lease. The commissioner must
22.32deny this levy authority unless the district passes a resolution stating its intent to lease
22.33instructional space under Minnesota Statutes, section 126C.40, subdivision 1, if the
22.34commissioner does not grant authority under this section. The resolution must also certify
23.1that a lease of administrative space under this section is less expensive than the district's
23.2proposed instructional lease. Levy authority under this section shall not exceed the total
23.3levy authority under Minnesota Statutes, section 126C.40, subdivision 1, paragraph (e).
23.4EFFECTIVE DATE.This section is effective for taxes payable in 2013 and later.

23.5    Sec. 6. EFFECTIVE DATE.
23.6Unless otherwise specified, this article is effective the day following final enactment.


23.9    Section 1. Minnesota Statutes 2011 Supplement, section 124D.11, subdivision 9, is
23.10amended to read:
23.11    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section
23.12127A.45, subdivision 3 , if the current year aid payment percentage under section
23.13127A.45, subdivision 2 , paragraph (d), is 90 or greater, aid payments for the current
23.14fiscal year to a charter school shall be of an equal amount on each of the 24 payment
23.15dates. Notwithstanding section 127A.45, subdivision 3, if the current year aid payment
23.16percentage under section 127A.45, subdivision 2, paragraph (d), is less than 90, aid
23.17payments for the current fiscal year to a charter school shall be:
23.18(1) of an equal amount on each of the 16 payment dates in July through February
23.19if the aid payment percent is 60 or less;
23.20(2) of an equal amount on each of the 19 payment dates in July through April if
23.21the aid percent is between 60 and 70; and
23.22(3) of an equal amount on each of the 21 payment dates in July through May if the
23.23aid percent is between 70 and 90 .
23.24(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
23.25operation on or prior to June 30 of a school year, for the payment periods occurring after
23.26the school ceases serving students, the commissioner shall withhold the estimated state aid
23.27owed the school. The charter school board of directors and authorizer must submit to the
23.28commissioner a closure plan under chapter 308A or 317A, and financial information about
23.29the school's liabilities and assets. After receiving the closure plan, financial information,
23.30an audit of pupil counts, documentation of lease expenditures, and monitoring of special
23.31education expenditures, the commissioner may release cash withheld and may continue
23.32regular payments up to the current year payment percentages if further amounts are
23.33owed. If, based on audits and monitoring, the school received state aid in excess of the
23.34amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
24.1overpayment. For a charter school ceasing operations prior to, or at the end of, a school
24.2year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
24.3be made after receiving the closure plan, audit of pupil counts, monitoring of special
24.4education expenditures, documentation of lease expenditures, and school submission of
24.5Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
24.6final year of operation. Final payment may be made upon receipt of audited financial
24.7statements under section 123B.77, subdivision 3.
24.8(c) If a charter school fails to comply with the commissioner's directive to return,
24.9for cause, federal or state funds administered by the department, the commissioner may
24.10withhold an amount of state aid sufficient to satisfy the directive.
24.11(d) If, within the timeline under section 471.425, a charter school fails to pay the state
24.12of Minnesota, a school district, intermediate school district, or service cooperative after
24.13receiving an undisputed invoice for goods and services, the commissioner may withhold
24.14an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
24.15aid to the interested state agency, school district, intermediate school district, or service
24.16cooperative. An interested state agency, school district, intermediate school district, or
24.17education cooperative shall notify the commissioner when a charter school fails to pay an
24.18undisputed invoice within 75 business days of when it received the original invoice.
24.19(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
24.20of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
24.21of student attendance for that school year.
24.22(f) In order to receive state aid payments under this subdivision, a charter school in
24.23its first three years of operation must submit a school calendar in the form and manner
24.24requested by the department and a quarterly report to the Department of Education. The
24.25report must list each student by grade, show the student's start and end dates, if any,
24.26with the charter school, and for any student participating in a learning year program,
24.27the report must list the hours and times of learning year activities. The report must be
24.28submitted not more than two weeks after the end of the calendar quarter to the department.
24.29The department must develop a Web-based reporting form for charter schools to use
24.30when submitting enrollment reports. A charter school in its fourth and subsequent year of
24.31operation must submit a school calendar and enrollment information to the department in
24.32the form and manner requested by the department.
24.33(g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
24.34school and satisfaction of creditors, cash and investment balances remaining shall be
24.35returned to the state.
25.1(h) A charter school must have a valid, signed contract under section 124D.10,
25.2subdivision 6, on file at the Department of Education at least 15 days prior to the date of
25.3first payment of state aid for the fiscal year.
25.4(i) State aid entitlements shall be computed for a charter school only for the
25.5portion of a school year for which it has a valid, signed contract under section 124D.10,
25.6subdivision 6.
25.7EFFECTIVE DATE.This section is effective for fiscal year 2013 and later.

25.8    Sec. 2. Minnesota Statutes 2010, section 124D.111, subdivision 3, is amended to read:
25.9    Subd. 3. School food service fund. (a) The expenses described in this subdivision
25.10must be recorded as provided in this subdivision.
25.11(b) In each district, the expenses for a school food service program for pupils must
25.12be attributed to a school food service fund. Under a food service program, the school
25.13food service may prepare or serve milk, meals, or snacks in connection with school or
25.14community service activities.
25.15(c) Revenues and expenditures for food service activities must be recorded in the
25.16food service fund. The costs of processing applications, accounting for meals, preparing
25.17and serving food, providing kitchen custodial services, and other expenses involving the
25.18preparing of meals or the kitchen section of the lunchroom may be charged to the food
25.19service fund or to the general fund of the district. The costs of lunchroom supervision,
25.20lunchroom custodial services, lunchroom utilities, and other administrative costs of the
25.21food service program must be charged to the general fund.
25.22That portion of superintendent and fiscal manager costs that can be documented as
25.23attributable to the food service program may be charged to the food service fund provided
25.24that the school district does not employ or contract with a food service director or other
25.25individual who manages the food service program, or food service management company.
25.26If the cost of the superintendent or fiscal manager is charged to the food service fund,
25.27the charge must be at a wage rate not to exceed the statewide average for food service
25.28directors as determined by the department.
25.29(d) Capital expenditures for the purchase of food service equipment must be made
25.30from the general fund and not the food service fund, unless two conditions apply:
25.31(1) the unreserved balance in the food service fund at the end of the last fiscal year is
25.32greater than the cost of the equipment to be purchased; and.
25.33(2) the department has approved the purchase of the equipment.
25.34(e) If the two conditions condition set out in paragraph (d) apply applies, the
25.35equipment may be purchased from the food service fund.
26.1(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit
26.2is not eliminated by revenues from food service operations in the next fiscal year, then the
26.3deficit must be eliminated by a permanent fund transfer from the general fund at the end of
26.4that second fiscal year. However, if a district contracts with a food service management
26.5company during the period in which the deficit has accrued, the deficit must be eliminated
26.6by a payment from the food service management company.
26.7(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service
26.8fund for up to three years without making the permanent transfer if the district submits
26.9to the commissioner by January 1 of the second fiscal year a plan for eliminating that
26.10deficit at the end of the third fiscal year.
26.11(h) If a surplus in the food service fund exists at the end of a fiscal year for three
26.12successive years, a district may recode for that fiscal year the costs of lunchroom
26.13supervision, lunchroom custodial services, lunchroom utilities, and other administrative
26.14costs of the food service program charged to the general fund according to paragraph (c)
26.15and charge those costs to the food service fund in a total amount not to exceed the amount
26.16of surplus in the food service fund.
26.17EFFECTIVE DATE.This section is effective for food service equipment purchases
26.18made on or after July 1, 2012.

26.19    Sec. 3. Minnesota Statutes 2011 Supplement, section 127A.45, subdivision 2, is
26.20amended to read:
26.21    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
26.22treasurers pursuant to section 276.10, apportionments from the school endowment fund
26.23pursuant to section 127A.33, apportionments by the county auditor pursuant to section
26.24127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
26.25pursuant to chapter 298.
26.26(b) "Cumulative amount guaranteed" means the product of
26.27(1) the cumulative disbursement percentage shown in subdivision 3; times
26.28(2) the sum of
26.29(i) the current year aid payment percentage of the estimated aid and credit
26.30entitlements paid according to subdivision 13; plus
26.31(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
26.32(iii) the other district receipts.
26.33(c) "Payment date" means the date on which state payments to districts are made
26.34by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
26.35or a weekday which is a legal holiday, the payment shall be made on the immediately
27.1preceding business day. The commissioner may make payments on dates other than
27.2those listed in subdivision 3, but only for portions of payments from any preceding
27.3payment dates which could not be processed by the electronic funds transfer method due
27.4to documented extenuating circumstances.
27.5(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
27.6fiscal year 2011, and 60 70.2 in fiscal years 2012 year 2012 and later.
27.7EFFECTIVE DATE.This section is effective the day following final enactment.

27.8    Sec. 4. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
27.92, is amended to read:
27.10    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
27.11section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

27.12 27.13		$	12,626,000 12,285,000	.....	2012
27.14 27.15		$	12,878,000 12,524,000	.....	2013

27.16    Sec. 5. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
27.173, is amended to read:
27.18    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
27.19Statutes, section 124D.1158:

27.20 27.21		$	4,759,000 5,247,000	.....	2012
27.22 27.23		$	4,875,000 5,560,000	.....	2013

27.24    Sec. 6. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
27.254, is amended to read:
27.26    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
27.27section 124D.118:

27.28 27.29		$	1,084,000 1,025,000	.....	2012
27.30 27.31		$	1,105,000 1,035,000	.....	2013

27.32    Sec. 7. BALANCES CANCELED TO GENERAL FUND.
28.1$430,094,000 of the unobligated balance in the budget reserve account created in
28.2Minnesota Statutes, section 16A.152, subdivision 1a, is canceled to the general fund
28.3in fiscal year 2012.

28.4    Sec. 8. EFFECTIVE DATE.
28.5Unless otherwise specified, this article is effective the day following final enactment.


28.8    Section 1. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
28.92, is amended to read:
28.10    Subd. 2. Basic system support. For basic system support grants under Minnesota
28.11Statutes, section 134.355:

28.12 28.13		$	12,213,000 13,598,000	.....	2012
28.14 28.15		$	13,570,000 13,570,000	.....	2013

28.16The 2012 appropriation includes $4,071,000 for 2011 and $8,142,000 $9,527,000
28.17for 2012.
28.18The 2013 appropriation includes $5,428,000 $4,043,000 for 2012 and $8,142,000
28.19$9,527,000 for 2013.

28.20    Sec. 2. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 3,
28.21is amended to read:
28.22    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
28.23Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

28.24 28.25		$	1,170,000 1,303,000	.....	2012
28.26		$	1,300,000	.....	2013

28.27The 2012 appropriation includes $390,000 for 2011 and $780,000 $913,000 for 2012.
28.28The 2013 appropriation includes $520,000 $387,000 for 2012 and $780,000
28.29$913,000 for 2013.

28.30    Sec. 3. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 5,
28.31is amended to read:
28.32    Subd. 5. Regional library telecommunications aid. For regional library
28.33telecommunications aid under Minnesota Statutes, section 134.355:

29.1 29.2		$	2,070,000 2,305,000	.....	2012
29.3		$	2,300,000	.....	2013

29.4The 2012 appropriation includes $690,000 for 2011 and $1,380,000 $1,615,000
29.5for 2012.
29.6The 2013 appropriation includes $920,000 $685,000 for 2012 and $1,380,000
29.7$1,615,000 for 2013.

29.8    Sec. 4. EFFECTIVE DATE.
29.9Unless otherwise specified, this article is effective the day following final enactment.


29.12    Section 1. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
29.132, is amended to read:
29.14    Subd. 2. School readiness. For revenue for school readiness programs under
29.15Minnesota Statutes, sections 124D.15 and 124D.16:

29.16 29.17		$	9,085,000 10,039,000	.....	2012
29.18		$	10,095,000	.....	2013

29.19The 2012 appropriation includes $3,028,000 $2,952,000 for 2011 and $6,057,000
29.20$7,087,000 for 2012.
29.21The 2013 appropriation includes $4,038,000 $3,008,000 for 2012 and $6,057,000
29.22$7,087,000 for 2013.

29.23    Sec. 2. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 3,
29.24is amended to read:
29.25    Subd. 3. Early childhood family education aid. For early childhood family
29.26education aid under Minnesota Statutes, section 124D.135:

29.27 29.28		$	20,191,000 22,435,000	.....	2012
29.29 29.30		$	22,977,000 22,332,000	.....	2013

29.31The 2012 appropriation includes $6,542,000 for 2011 and $13,649,000 $15,893,000
29.32for 2012.
29.33The 2013 appropriation includes $9,099,000 $6,746,000 for 2012 and $13,878,000
29.34$15,586,000 for 2013.

30.1    Sec. 3. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 4,
30.2is amended to read:
30.3    Subd. 4. Health and developmental screening aid. For health and developmental
30.4screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

30.5 30.6		$	3,211,000 3,570,000	.....	2012
30.7 30.8		$	3,550,000 3,541,000	.....	2013

30.9The 2012 appropriation includes $1,066,000 for 2011 and $2,145,000 $2,504,000
30.10for 2012.
30.11The 2013 appropriation includes $1,429,000 $1,062,000 for 2012 and $2,121,000
30.12$2,479,000 for 2013.

30.13    Sec. 4. REPEALER.
30.14Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; and 124D.16,
30.15subdivisions 6 and 7, are repealed.

30.16    Sec. 5. EFFECTIVE DATE.
30.17Unless otherwise specified, this article is effective the day following final enactment.


30.20    Section 1. Minnesota Statutes 2010, section 124D.518, is amended by adding a
30.21subdivision to read:
30.22    Subd. 4a. Service disruption. "Service disruption" means the loss of student
30.23contact time due to a natural disaster including, but not limited to, floods, tornadoes, and
30.24fires, or the loss of student contact hours caused by a party other than the adult basic
30.25education program or consortium including, but not limited to, building relocations and
30.26transportation disruptions. A service disruption occurs only if:
30.27(1) the loss of contact hours is sufficient to cause the consortium to lose revenue
30.28equal to at least ten percent of the aid generated under section 124D.531, subdivision 3,
30.29clause (2); or
30.30(2) the loss of contact hours is sufficient to cause the program to lose revenue equal to
30.31at least 15 percent of the aid generated under section 124D.531, subdivision 3, clause (2).
30.32EFFECTIVE DATE.This section is effective for aid for fiscal year 2013 and later.

31.1    Sec. 2. Minnesota Statutes 2010, section 124D.518, subdivision 3, is amended to read:
31.2    Subd. 3. Contact hours. (a) "Contact hours" means the number of hours during
31.3which a student was engaged in learning activities provided by an approved adult
31.4education program. Contact hours excludes homework but includes interactive distance
31.5learning. The commissioner may only reallocate contact hours among programs to adjust
31.6for changes in program membership between the first prior program year and the current
31.7program year based on the actual contact hours reported for the first prior program year.
31.8The commissioner may adjust a program or consortium's contact hours due to a service
31.9disruption according to the process established in section 124D.531, subdivision 10.
31.10(b) For revenue beginning in fiscal year 2002, contact hours for a provider of adult
31.11basic education services funded in fiscal year 2000, but not eligible for basic population
31.12aid in fiscal year 2001, is computed by multiplying the provider's contact hours by 1.03.
31.13(c) For aid in fiscal year 2001, contact hours in fiscal year 2000 equals the number
31.14of full-time equivalent learners times the contact hours. A level one full-time equivalent
31.15learner is equal to 240 contact hours and a level two full-time learner is equal to 408
31.16contact hours.
31.17EFFECTIVE DATE.This section is effective for aid for fiscal year 2013 and later.

31.18    Sec. 3. Minnesota Statutes 2010, section 124D.531, is amended by adding a
31.19subdivision to read:
31.20    Subd. 10. Contact hours in cases of disruption of services. An adult basic
31.21education program or consortium that has been subject to a service disruption may apply
31.22to the commissioner in the form and manner established by the commissioner for an
31.23adjusted number of contact hours. The program or consortium must demonstrate to the
31.24commissioner's satisfaction that the loss in contact hours due to the service disruption was
31.25outside of the control of the adult basic education program or its consortium and that the
31.26program or consortium took reasonable actions to avoid the loss of contact hours. If the
31.27commissioner approves the program or consortium's request, the commissioner may
31.28adjust the number of contact hours of the program, and if applicable, of the consortium,
31.29but in no case may the adjusted contact hours yield an aid amount for a consortium
31.30under subdivision 3, clause (2), greater than the most recent two-year average aid under
31.31that clause.
31.32EFFECTIVE DATE.This section is effective for aid for fiscal year 2013 and later.

32.1    Sec. 4. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 2,
32.2is amended to read:
32.3    Subd. 2. Community education aid. For community education aid under
32.4Minnesota Statutes, section 124D.20:

32.5		$	429,000 470,000	.....	2012
32.6		$	665,000 771,000	.....	2013

32.7The 2012 appropriation includes $134,000 for 2011 and $295,000 $336,000 for 2012.
32.8The 2013 appropriation includes $196,000 $142,000 for 2012 and $469,000
32.9$629,000 for 2013.

32.10    Sec. 5. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 3,
32.11is amended to read:
32.12    Subd. 3. Adults with disabilities program aid. For adults with disabilities
32.13programs under Minnesota Statutes, section 124D.56:

32.14		$	639,000 696,000	.....	2012
32.15		$	710,000	.....	2013

32.16The 2012 appropriation includes $213,000 $197,000 for 2011 and $426,000
32.17$499,000 for 2012.
32.18The 2013 appropriation includes $284,000 $211,000 for 2012 and $426,000
32.19$499,000 for 2013.

32.20    Sec. 6. Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision 2,
32.21is amended to read:
32.22    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
32.23Statutes, section 124D.531:

32.24 32.25		$	40,545,000 45,202,000	.....	2012
32.26 32.27		$	45,842,000 45,951,000	.....	2013

32.28The 2012 appropriation includes $13,365,000 $13,364,000 for 2011 and $27,180,000
32.29$31,838,000 for 2012.
32.30The 2013 appropriation includes $18,119,000 $13,514,000 for 2012 and $27,723,000
32.31$32,437,000 for 2013.

32.32    Sec. 7. REPEALER.
32.33Minnesota Statutes 2010, sections 124D.135, subdivisions 8 and 9; 124D.16,
32.34subdivisions 6 and 7; and 124D.20, subdivisions 11 and 12, are repealed.
33.1EFFECTIVE DATE.This section is effective for revenue for fiscal years 2014
33.2and later.

33.3    Sec. 8. EFFECTIVE DATE.
33.4Unless otherwise specified, this article is effective the day following final
33.5enactment."
33.6Amend the title accordingly