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HF 3593

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

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 school district reciprocity agreements;
amending Minnesota Statutes 2006, sections 124D.04, subdivisions 3, 6, 8, 9;
124D.05, by adding a subdivision; 125A.76, by adding a subdivision; 126C.10,
subdivision 31, by adding a subdivision; 127A.45, subdivision 16; proposing
coding for new law in Minnesota Statutes, chapter 124D.

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

Section 1.

Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to
read:


Subd. 3.

Pupils in adjoining states.

new text begin Except as provided under an agreement with
an adjoining state under section 124D.041,
new text end a non-Minnesota pupil who resides in an
adjoining state in a district that borders Minnesota may enroll in a Minnesota district if
either the board of the district in which the pupil resides or state in which the pupil resides
pays tuition to the district in which the pupil is enrolled.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 2.

Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:


Subd. 6.

Tuition payments.

new text begin (a) new text end In each odd-numbered year, before March 1, the
commissioner must agree to rates of tuition for Minnesota elementary and secondary
pupils attending in other states for the next two fiscal years when the other state agrees to
negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the
designated authority in each state for pupils who reside in an adjoining state and enroll in
a Minnesota district. The rates must be at least equal to the tuition specified in section
124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate,
a Minnesota school district may negotiate a tuition rate with the school district in the other
state that sends a pupil to or receives a pupil from the Minnesota school district. The
tuition rate for a pupil with a disability must be equal to the actual cost of instruction and
services provided. The resident district of a Minnesota pupil attending in another state
under this section must pay the amount of tuition agreed upon in this section to the district
of attendance, prorated on the basis of the proportion of the school year attended.

new text begin (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached
between Minnesota and an adjoining state under section 124D.041, the provisions of
section 124D.041 and the agreement shall apply to all enrollment transfers between
Minnesota and the adjoining state, and provisions of paragraph (a) and subdivision 9
shall not apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 3.

Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:


Subd. 8.

Effective if reciprocal.

This section is effective with respect to deleted text begin South
Dakota upon enactment of provisions by South Dakota that the commissioner determines
are essentially similar to the provisions for Minnesota pupils in this section. This section
is effective with respect to
deleted text end any deleted text begin otherdeleted text end bordering state upon enactment of provisions by the
bordering state that the commissioner determines are essentially similar to the provisions
for Minnesota pupils in this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 4.

Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:


Subd. 9.

Appeal to the commissioner.

If a Minnesota school district cannot agree
with an adjoining state on a tuition rate for a Minnesota student attending school in that
state and that state has met the requirements in subdivision 8, then the student's parent or
guardian may request that the commissioner deleted text begin agree ondeleted text end new text begin setnew text end a tuition rate for the student. The
Minnesota district must pay the amount of tuition the commissioner deleted text begin agrees upondeleted text end new text begin setsnew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 5.

new text begin [124D.041] RECIPROCITY WITH ADJOINING STATES.
new text end

new text begin Subdivision 1. new text end

new text begin Agreements. new text end

new text begin The commissioner may enter into an agreement
with the designated authority from an adjoining state to establish an enrollment options
program between Minnesota and the adjoining state.
new text end

new text begin (a) Any agreement entered into under this section must specify the following:
new text end

new text begin (1) for students who are not residents of Minnesota, the enrollment options program
applies only to a student whose resident school district borders Minnesota;
new text end

new text begin (2) the commissioner must negotiate equal, reciprocal rates with the designated
authority from the adjoining state;
new text end

new text begin (3) if the adjoining state sends more students to Minnesota than Minnesota sends
to the adjoining state, the adjoining state will pay Minnesota the rate agreed upon under
clause (2) for the excess number of students sent to Minnesota;
new text end

new text begin (4) if Minnesota sends more students to the adjoining state than the adjoining state
sends to Minnesota, Minnesota will pay the adjoining state the rate agreed upon under
clause (2) for the excess number of students sent to the adjoining state;
new text end

new text begin (5) the application procedures for the enrollment options program between
Minnesota and the adjoining state;
new text end

new text begin (6) the reasons for which an application for the enrollment options program between
Minnesota and the adjoining state may be denied; and
new text end

new text begin (7) that a Minnesota school district is not responsible for transportation for any
resident student attending school in an adjoining state under the provisions of this section.
However, a Minnesota school district may, at its discretion, provide transportation services
for such a student.
new text end

new text begin (b) Any agreement entered into under this section may specify additional terms
relating to any student in need of special education and related services pursuant to chapter
125A. Any additional terms must apply equally to both states.
new text end

new text begin Subd. 2. new text end

new text begin Pupil accounting. new text end

new text begin (a) Any student from an adjoining state enrolled in
Minnesota under this section is included in receiving school district's average daily
membership and pupil units according to section 126C.05 as if the student was a resident
of another Minnesota school district attending the receiving school district under section
124D.03.
new text end

new text begin (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this
section is included in the resident school district's average daily membership and pupil
units according to section 126C.05 as if the student was a resident of the district attending
another Minnesota school district under section 124D.03.
new text end

new text begin Subd. 3. new text end

new text begin Procedures. new text end

new text begin (a) The Department of Education must establish procedures
relating to the application process, the collection or payment of funds under the provisions
of any agreement established under this section, and the collection of data necessary to
implement any agreement established under this section.
new text end

new text begin (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established
between Minnesota and an adjoining state pursuant to this section, the provisions of this
section and the agreement shall apply to all enrollment transfers between Minnesota and
the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary,
including provisions relating to tuition payments, shall not apply.
new text end

new text begin (c) Notwithstanding paragraph (a), any payments to adjoining states under this
section shall be made according to section 127A.45, subdivision 16.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 6.

Minnesota Statutes 2006, section 124D.05, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Exception. new text end

new text begin Notwithstanding subdivisions 1 and 2, if an agreement is
reached between Minnesota and an adjoining state under section 124D.041, the provisions
of section 124D.041 and the agreement shall apply to all enrollment transfers between
Minnesota and the adjoining state, and provisions of subdivisions 1 and 2 to the contrary,
including provisions relating to tuition payments, shall not apply.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 7.

Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Adjustments for tuition reciprocity with adjoining states. new text end

new text begin (a) If an
agreement is reached between Minnesota and an adjoining state under section 124D.041
that requires a special education tuition payment from Minnesota to the adjoining state,
the tuition payment shall be made from the special education aid appropriation for that
year, and the state total special education aid under subdivision 4 shall be reduced by the
amount of the payment.
new text end

new text begin (b) If an agreement is reached between Minnesota and an adjoining state under
section 124D.041 that requires a special education tuition payment from an adjoining state
to Minnesota, the special education aid appropriation for that year and the state total
special education aid under subdivision 4 shall be increased by the amount of the payment.
new text end

new text begin (c) If an agreement is reached between Minnesota and an adjoining state under
section 124D.041 that requires special education tuition payments to be made between
the two states, and not between districts in the two states, the special education aid for a
Minnesota school district serving a student with a disability from the adjoining state shall
be calculated according to section 127A.47, subdivision 7, except that no reduction shall
be made in the special education aid paid to the resident district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:


Subd. 31.

Transition revenue.

(a) A district's transition allowance equals the
greater of zero or the product of the ratio of the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002
to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference
between: (1) the lesser of the district's general education revenue per adjusted marginal
cost pupil unit for fiscal year 2003 or the amount of general education revenue the district
would have received per adjusted marginal cost pupil unit for fiscal year 2004 according
to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year
2004 excluding transition revenue divided by the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.

(b) A district's transition revenue for fiscal year 2006 deleted text begin and laterdeleted text end new text begin through 2008new text end equals
the sum of the product of the district's transition allowance times the district's adjusted
marginal cost pupil units plus the district's transition for prekindergarten revenue under
subdivision 31a.

new text begin (c) A district's transition revenue for fiscal year 2009 and later equals the sum of
the product of the district's transition allowance times the district's adjusted marginal cost
pupil units plus the district's transition for prekindergarten revenue under subdivision 31a
plus the district's transition for tuition reciprocity revenue under subdivision 31c.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 9.

Minnesota Statutes 2006, section 126C.10, is amended by adding a subdivision
to read:


new text begin Subd. 31c. new text end

new text begin Transition for tuition reciprocity revenue. new text end

new text begin For the first year that a
tuition reciprocity agreement with an adjoining state is in effect under section 124D.041
and later, a school district's transition for tuition reciprocity revenue equals the greater of
zero or the difference between the sum of the general education revenue and net tuition
revenue the district would have received for pupils enrolled under section 124D.041 for
the first year the agreement is in effect if the agreement had not been in effect, and the
sum of the district's general education revenue and net tuition revenue for the first year
the agreement is in effect.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Sec. 10.

Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:


Subd. 16.

Payments to third parties.

Notwithstanding subdivision 3, the current
year aid payment percentage of the amounts under deleted text begin sectiondeleted text end new text begin sectionsnew text end 123A.26, subdivision
3
, new text begin and 124D.041, new text end shall be paid in equal installments on August 30, December 30, and
March 30, with a final adjustment payment on October 30 of the next fiscal year of the
remaining amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end