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HF 3485

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/14/2022 04:57pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/15/2022
1st Engrossment Posted on 03/14/2022

Current Version - 1st Engrossment

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A bill for an act
relating to education finance; increasing the age range of children served by
school-age care programs; increasing funding for wrap-around care programs;
providing for wrap-around care revenue; appropriating money; amending Minnesota
Statutes 2020, sections 124D.19, subdivision 11, by adding a subdivision; 124D.20,
subdivision 8; 124D.22; 127A.49, subdivision 2; Minnesota Statutes 2021
Supplement, section 127A.49, subdivision 3; Laws 2021, First Special Session
chapter 13, article 10, section 1, subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 124D.19, subdivision 11, is amended to read:


Subd. 11.

School-age care programs.

(a) A school board may offer, as part of a
community education program, a school-age care program for children from kindergarten
through grade deleted text begin 6deleted text end new text begin 8new text end for the purpose of expanding students' learning opportunities. If the school
board chooses not to offer a school-age care program, it may allow an appropriate insured
community group, for profit entity or nonprofit organization to use available school facilities
for the purpose of offering a school-age care program.

(b) A school-age care program must include the following:

(1) adult supervised programs while school is not in session;

(2) parental involvement in program design and direction;

(3) partnerships with the kindergarten through grade 12 system, and other public, private,
or nonprofit entities;

(4) opportunities for trained secondary school pupils to work with younger children in
a supervised setting as part of a community service program; and

(5) access to available school facilities, including the gymnasium, sports equipment,
computer labs, and media centers, when not otherwise in use as part of the operation of the
school. The school district may establish reasonable rules relating to access to these facilities
and may require that:

(i) the organization request access to the facilities and prepare and maintain a schedule
of proposed use;

(ii) the organization provide evidence of adequate insurance to cover the activities to be
conducted in the facilities; and

(iii) the organization prepare and maintain a plan demonstrating the adequacy and training
of staff to supervise the use of the facilities.

(c) The district may charge a sliding fee based upon family income for school-age care
programs. The district may receive money from other public or private sources for the
school-age care program. The board of the district must develop standards for school-age
child care programs. The commissioner of education may not adopt rules for school-age
care programs.

(d) The district shall maintain a separate account within the community services fund
for all funds related to the school-age care program.

(e) A district is encouraged to coordinate the school-age care program with its special
education, vocational education, adult basic education, early childhood family education
programs, kindergarten through grade 12 instruction and curriculum services, youth
development and youth service agencies, and with related services provided by other
governmental agencies and nonprofit agencies.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 124D.19, is amended by adding a subdivision to
read:


new text begin Subd. 11a. new text end

new text begin Preschool care new text end

new text begin In addition to other authority, a school district that offers a
1.16 licensed child care program serving children age 33 months or older or a program
exempt 1.17 from licensure under section 245A.03, subdivision 2, paragraph (a), clause (5),
may offer, 1.18 as part of a community education program, a preschool care program for
the portion of the 1.19 day a child is not enrolled in early childhood special education,
voluntary prekindergarten, 1.20 school readiness plus, or school readiness.
new text end

Sec. 3.

Minnesota Statutes 2020, section 124D.20, subdivision 8, is amended to read:


Subd. 8.

Uses of general revenue.

(a) General community education revenue may be
used for:

(1) nonvocational, recreational, and leisure time activities and programs;

(2) programs for adults with disabilities, if the programs and budgets are approved by
the department;

(3) adult basic education programs, according to section 124D.52;

(4) summer programs for elementary and secondary pupils;

(5) implementation of a youth development plan;

(6) implementation of a youth service program;

(7) early childhood family education programs, according to section 124D.13;

(8) school readiness programs, according to section 124D.15; and

(9) school-age care programs, according to section 124D.19, subdivision 11deleted text begin .deleted text end new text begin ; and
new text end

new text begin preschool care programs, according to section 124D.19, subdivision 11a.
new text end

(b) In addition to money from other sources, a district may use up to ten percent of its
community education revenue for equipment that is used exclusively in community education
programs. This revenue may be used only for the following purposes:

(1) to purchase or lease computers and related materials;

(2) to purchase or lease equipment for instructional programs; and

(3) to purchase textbooks and library books.

(c) General community education revenue must not be used to subsidize the direct activity
costs for adult enrichment programs. Direct activity costs include, but are not limited to,
the cost of the activity leader or instructor, cost of materials, or transportation costs.

Sec. 4.

Minnesota Statutes 2020, section 124D.22, is amended to read:


124D.22 deleted text begin SCHOOL-AGEdeleted text end new text begin WRAP-AROUNDnew text end CARE REVENUE.

Subdivision 1.

Eligibility.

A district that offers a school-age care program according to
section 124D.19, subdivision 11new text begin , or a preschool care program according to section 124D.19,
subdivision 11a
new text end , is eligible for deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care revenue for the additional costs
of providing services to children with disabilities or to children experiencing family or
related problems of a temporary nature who participate in the school-age care programnew text begin or
the preschool care program
new text end .

Subd. 2.

deleted text begin School-agedeleted text end new text begin Wrap-aroundnew text end care revenue.

The deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care
revenue for an eligible district equals the approved additional cost of providing services to
children with disabilities or children experiencing family or related problems of a temporary
nature who participate in the school-age care programnew text begin or the preschool care programnew text end .

Subd. 3.

deleted text begin School-agedeleted text end new text begin Wrap-aroundnew text end care levy.

new text begin For fiscal year 2023 and later, new text end to obtain
deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care revenue, a school district may levy an amount equal to the
district's deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care revenue as defined in subdivision 2 multiplied by
the lesser of one, or the ratio of the quotient derived by dividing the adjusted net tax capacity
of the district for the year before the year the levy is certified by the resident pupil units in
the district for the school year to which the levy is attributable, to deleted text begin $2,318deleted text end new text begin $15,747new text end .

Subd. 4.

deleted text begin School-agedeleted text end new text begin Wrap-aroundnew text end care aid.

A district's deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care
aid is the difference between its deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care revenue and its deleted text begin school-agedeleted text end new text begin
wrap-around
new text end care levy. If a district does not levy the entire amount permitted, deleted text begin school-agedeleted text end new text begin
wrap-around
new text end care aid must be reduced in proportion to the actual amount levied.

Sec. 5.

Minnesota Statutes 2020, section 127A.49, subdivision 2, is amended to read:


Subd. 2.

Abatements.

Whenever by virtue of chapter 278, sections 270C.86, 375.192,
or otherwise, the net tax capacity or referendum market value of any district for any taxable
year is changed after the taxes for that year have been spread by the county auditor and the
local tax rate as determined by the county auditor based upon the original net tax capacity
is applied upon the changed net tax capacities, the county auditor must, prior to February
1 of each year, certify to the commissioner of education the amount of any resulting net
revenue loss that accrued to the district during the preceding year. Each year, the
commissioner must pay an abatement adjustment to the district in an amount calculated
according to the provisions of this subdivision. This amount must be deducted from the
amount of the levy authorized by section 126C.46. The amount of the abatement adjustment
must be the product of:

(1) the net revenue loss as certified by the county auditor, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy in the third preceding year
according to the following:

(A) section 123B.595, if the district received long-term facilities maintenance aid
according to that section for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs
according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family
education aid according to section 124D.135 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization aid
according to that section for the second preceding year;

(E) section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;

(F) section 126C.10, subdivision 29, if the district received equity aid according to
section 126C.10, subdivision 30, in the second preceding year;

(G) section 126C.10, subdivision 32, if the district received transition aid according to
section 126C.10, subdivision 33, in the second preceding year;

(H) section 123B.53, subdivision 5, if the district received debt service equalization aid
according to section 123B.53, subdivision 6, in the second preceding year;

(I) section 123B.535, subdivision 4, if the district received natural disaster debt service
equalization aid according to section 123B.535, subdivision 5, in the second preceding year;

(J) section 124D.22, subdivision 3, if the district received deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care
aid according to section 124D.22, subdivision 4, in the second preceding year;

(K) section 126C.10, subdivision 2e, paragraph (b), if the district received local optional
aid according to section 126C.10, subdivision 2e, paragraph (c), in the second preceding
year; and

(L) section 122A.415, subdivision 5, if the district received alternative teacher
compensation equalization aid according to section 122A.415, subdivision 6, paragraph (a),
in the second preceding year; to

(ii) the total amount of the district's certified levy in the third preceding December, plus
or minus auditor's adjustments.

Sec. 6.

Minnesota Statutes 2021 Supplement, section 127A.49, subdivision 3, is amended
to read:


Subd. 3.

Excess tax increment.

(a) If a return of excess tax increment is made to a
district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
decertification of a tax increment district, the school district's aid and levy limitations must
be adjusted for the fiscal year in which the excess tax increment is paid under the provisions
of this subdivision.

(b) An amount must be subtracted from the district's aid for the current fiscal year equal
to the product of:

(1) the amount of the payment of excess tax increment to the district in the preceding
year, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy in the third preceding year
according to the following:

(A) section 123B.57, if the district received health and safety aid according to that section
for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs
according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family
education aid according to section 124D.135 for the second preceding year;

(D) section 126C.17, subdivision 6, if the district received referendum equalization aid
according to that section for the second preceding year;

(E) section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;

(F) section 126C.10, subdivision 29, if the district received equity aid according to
section 126C.10, subdivision 30, in the second preceding year;

(G) section 126C.10, subdivision 32, if the district received transition aid according to
section 126C.10, subdivision 33, in the second preceding year;

(H) section 123B.53, subdivision 5, if the district received debt service equalization aid
according to section 123B.53, subdivision 6, in the second preceding year;

(I) section 123B.535, subdivision 4, if the district received natural disaster debt service
equalization aid according to section 123B.535, subdivision 5, in the second preceding year;

(J) section 124D.22, subdivision 3, if the district received deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care
aid according to section 124D.22, subdivision 4, in the second preceding year; and

(K) section 122A.415, subdivision 5, if the district received alternative teacher
compensation equalization aid according to section 122A.415, subdivision 6, paragraph (a),
in the second preceding year; to

(ii) the total amount of the district's certified levy in the third preceding year, plus or
minus auditor's adjustments.

(c) An amount must be subtracted from the school district's levy limitation for the next
levy certified equal to the difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision cannot be made to the aid for
the fiscal year specified or to the levy specified, the reductions must be made from aid for
subsequent fiscal years, and from subsequent levies. The school district must use the payment
of excess tax increment to replace the aid and levy revenue reduced under this subdivision.

(d) This subdivision applies only to the total amount of excess increments received by
a district for a calendar year that exceeds $25,000.

Sec. 7.

Laws 2021, First Special Session chapter 13, article 10, section 1, subdivision 5,
is amended to read:


Subd. 5.

deleted text begin School-agedeleted text end new text begin Wrap-aroundnew text end care aid.

For deleted text begin school-agedeleted text end new text begin wrap-aroundnew text end care aid under
Minnesota Statutes, section 124D.22:

$
1,000
.....
2022
$
deleted text begin 1,000
deleted text end new text begin 8,439,000
new text end
.....
2023

The 2022 appropriation includes $0 for 2021 and $1,000 for 2022.

The 2023 appropriation includes $0 for 2022 and deleted text begin $1,000deleted text end new text begin $8,439,000new text end for 2023.