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HF 2296

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2014 02:01pm

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

Current Version - as introduced

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A bill for an act
relating to education finance; modifying the allocation of compensatory revenue;
amending Minnesota Statutes 2012, section 126C.15, subdivision 5, by adding a
subdivision; Minnesota Statutes 2013 Supplement, section 126C.15, subdivision
2.

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

Section 1.

Minnesota Statutes 2013 Supplement, section 126C.15, subdivision 2, is
amended to read:


Subd. 2.

Building allocation.

(a) A district or cooperative must allocatenew text begin at least 50
percent of
new text end its compensatory revenue to each school building in the district or cooperative
where the children who have generated the revenue are served unless the school district or
cooperative has received permission under Laws 2005, First Special Session chapter 5,
article 1, section 50, to allocate compensatory revenue according to student performance
measures developed by the school board.

(b) deleted text begin Notwithstanding paragraph (a),deleted text end A district or cooperative deleted text begin maydeleted text end new text begin shallnew text end allocate deleted text begin up to
five percent of
deleted text end the new text begin remaining new text end amount of compensatory revenue deleted text begin that the districtdeleted text end new text begin itnew text end receives
to school sites according to a plan adopted by the deleted text begin schooldeleted text end new text begin governingnew text end boarddeleted text begin , and adeleted text end new text begin of the
new text end district or cooperative deleted text begin may allocate up to an additional five percent of its compensatory
revenue for activities under subdivision 1, clause (10), according to a plan adopted by
the school board
deleted text end . new text begin The plan must be submitted in the form and manner specified by the
commissioner and included with the district's annual expenditure report under subdivision
5.
new text end The money reallocated under this paragraph must be spent for the purposes listed in
subdivision 1, but may be spent on students in any grade, including students attending
school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
generated by students served at a cooperative unit shall be paid to the cooperative unit.

(e) A district or cooperative with school building openings, school building
closings, changes in attendance area boundaries, or other changes in programs or student
demographics between the prior year and the current year may reallocate compensatory
revenue among sites to reflect these changes. A district or cooperative must report to the
department any adjustments it makes according to this paragraph and the department must
use the adjusted compensatory revenue allocations in preparing the report required under
section 123B.76, subdivision 3, paragraph (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2015
and later.
new text end

Sec. 2.

Minnesota Statutes 2012, section 126C.15, subdivision 5, is amended to read:


Subd. 5.

Annual expenditure report.

Each year a district that receives basic skills
revenue must submit a report identifying the expenditures it incurred to meet the needs
of eligible learners under subdivision 1. The report must conform to uniform financial
and reporting standards established for this purpose. Using valid and reliable data and
measurement criteria, the report also must determine whether increased expenditures
raised student achievement levels.new text begin If school site allocations are adjusted by the school
board under subdivision 2, paragraph (b), the report must determine whether the board's
increased flexibility raised student achievement levels.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports submitted on or after
July 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2012, section 126C.15, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Commissioner's report. new text end

new text begin The commissioner must report to the education
committees of the legislature by February 15 of each odd-numbered year on the effects
on student achievement of the reallocation of basic skills revenue under subdivision 2,
paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end