1.1                          A bill for an act 
  1.2             relating to education finance; focusing education 
  1.3             funding on the classroom; increasing efficiencies in 
  1.4             state government; eliminating duplicative programs; 
  1.5             amending Minnesota Statutes 2002, sections 124D.11, 
  1.6             subdivision 6; 124D.135, subdivisions 1, 3; 124D.20, 
  1.7             subdivisions 1, 5; 124D.531, subdivision 7; 126C.17, 
  1.8             by adding a subdivision; repealing Minnesota Statutes 
  1.9             2002, sections 119A.12; 119A.37; 119A.445; 119A.52; 
  1.10            120B.23; 121A.16; 121A.17; 122A.62; 122A.63; 122A.64; 
  1.11            122A.65; 123B.59, subdivisions 6, 7; 124D.081; 
  1.12            124D.115; 124D.1156; 124D.117; 124D.135, subdivision 
  1.13            4; 124D.15; 124D.16; 124D.17; 124D.20, subdivisions 3, 
  1.14            4, 4a, 6, 7; 124D.221; 124D.23; 124D.39; 124D.40; 
  1.15            124D.41; 124D.42; 124D.43; 124D.44; 124D.45; 124D.81; 
  1.16            124D.83; 124D.84; 126C.445; 126C.455; 129C.10; 
  1.17            129C.15; 129C.20; 129C.25; 129C.26; Laws 1993, chapter 
  1.18            224, article 8, section 20, subdivision 2, as amended; 
  1.19            Laws 2000, chapter 489, article 2, section 36, as 
  1.20            amended; Laws 2001, First Special Session chapter 6, 
  1.21            article 2, section 70. 
  1.22  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.23     Section 1.  Minnesota Statutes 2002, section 124D.11, 
  1.24  subdivision 6, is amended to read: 
  1.25     Subd. 6.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
  1.26  school is eligible to receive other aids, grants, and revenue 
  1.27  according to chapters 120A to 129C, as though it were a district.
  1.28     (b) Notwithstanding paragraph (a), a charter school may not 
  1.29  receive aid, a grant, or revenue if a levy is required to obtain 
  1.30  the money, except as otherwise provided in this section.  
  1.31     (c) Federal aid received by the state must be paid to the 
  1.32  school, if it qualifies for the aid as though it were a school 
  1.33  district. 
  2.1      (d) A charter school may receive money from any source for 
  2.2   capital facilities needs.  In the year-end report to the 
  2.3   commissioner of children, families, and learning, the charter 
  2.4   school shall report the total amount of funds received from 
  2.5   grants and other outside sources. 
  2.6      (e) Notwithstanding paragraph (a) or (b), a charter school 
  2.7   may apply for a grant to receive the aid portion of integration 
  2.8   revenue under section 124D.86, subdivision 3, for enrolled 
  2.9   students who are residents of a district that is eligible for 
  2.10  integration revenue.  The commissioner shall determine grant 
  2.11  recipients and may adopt application guidelines.  The grants 
  2.12  must be competitively determined and must demonstrate that 
  2.13  enrolling pupils in the charter school contributes to 
  2.14  desegregation or integration purposes as determined by the 
  2.15  commissioner.  If the charter school has elected not to provide 
  2.16  transportation under section 124D.10, subdivision 16, the aid 
  2.17  shall be reduced by the amount per pupil unit specified for the 
  2.18  district where the charter school is located under section 
  2.19  123B.92, subdivision 8. 
  2.20     Sec. 2.  Minnesota Statutes 2002, section 124D.135, 
  2.21  subdivision 1, is amended to read: 
  2.22     Subdivision 1.  [REVENUE.] The revenue for early childhood 
  2.23  family education programs for a school district equals $113.50 
  2.24  for fiscal years 2000 and 2001 and $120 for 2002 and later 
  2.25  fiscal years times the greater of: 
  2.26     (1) 150; or 
  2.27     (2) the number of people under five years of age residing 
  2.28  in the district on October 1 of the previous school year 2004 
  2.29  and 2005 equals the district's levy for the program for fiscal 
  2.30  year 2003. 
  2.31     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.32  fiscal year 2004 and later.  
  2.33     Sec. 3.  Minnesota Statutes 2002, section 124D.135, 
  2.34  subdivision 3, is amended to read: 
  2.35     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] For 
  2.36  fiscal year 2001 to obtain early childhood family education 
  3.1   revenue, a district may levy an amount equal to the tax rate of 
  3.2   .5282 percent times the adjusted tax capacity of the district 
  3.3   for the year preceding the year the levy is certified.  
  3.4   Beginning with levies for fiscal year 2002, by September 30 of 
  3.5   each year, the commissioner shall establish a tax rate for early 
  3.6   childhood education revenue that raises $21,027,000 for fiscal 
  3.7   year 2002 and $22,135,000 in fiscal year 2003 and each 
  3.8   subsequent year.  If the amount of the early childhood family 
  3.9   education levy would exceed the early childhood family education 
  3.10  revenue, the early childhood family education levy must equal 
  3.11  the early childhood family education revenue years 2004 and 
  3.12  2005, a school district's early childhood family education levy 
  3.13  equals the amount that the district levied for the program for 
  3.14  fiscal year 2003. 
  3.15     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.16  fiscal year 2004 and later.  
  3.17     Sec. 4.  Minnesota Statutes 2002, section 124D.20, 
  3.18  subdivision 1, is amended to read: 
  3.19     Subdivision 1.  [TOTAL COMMUNITY EDUCATION REVENUE.] Total 
  3.20  community education revenue equals the sum of a district's 
  3.21  general community education revenue, youth service program 
  3.22  revenue, and youth after-school enrichment revenue district's 
  3.23  total community education levy for fiscal year 2003. 
  3.24     <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  3.25  fiscal year 2004 and later.  
  3.26     Sec. 5.  Minnesota Statutes 2002, section 124D.20, 
  3.27  subdivision 5, is amended to read: 
  3.28     Subd. 5.  [TOTAL COMMUNITY EDUCATION LEVY.] To obtain A 
  3.29  school district's total community education revenue, a district 
  3.30  operating a youth after-school enrichment program under section 
  3.31  124D.19, subdivision 12, may levy the amount raised by a maximum 
  3.32  tax rate of .7431 percent times the adjusted net tax capacity of 
  3.33  the district.  To obtain total community education revenue, a 
  3.34  district not operating a youth after-school enrichment program 
  3.35  may levy the amount raised by a maximum tax rate of .4795 
  3.36  percent times the adjusted net tax capacity of the district.  If 
  4.1   the amount of the total community education levy would exceed 
  4.2   the total community education revenue, the total community 
  4.3   education levy shall be determined according to subdivision 
  4.4   6 levy for fiscal years 2004 and 2005 equals its total community 
  4.5   education levy for fiscal year 2003. 
  4.6      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  4.7   fiscal year 2004 and later.  
  4.8      Sec. 6.  Minnesota Statutes 2002, section 124D.531, 
  4.9   subdivision 7, is amended to read: 
  4.10     Subd. 7.  [PROGRAM AUDITS.] Programs that receive aid under 
  4.11  this section must maintain records that support the aid 
  4.12  payments.  The commissioner may audit these records upon 
  4.13  request.  The commissioner must establish procedures for 
  4.14  conducting fiscal audits of adult basic education programs 
  4.15  according to the schedule in this subdivision.  In calendar year 
  4.16  2003, the commissioner must audit one-half of approved adult 
  4.17  basic education programs that received aid for fiscal year 2002, 
  4.18  and in calendar year 2004, the commissioner must audit the 
  4.19  remaining unaudited programs for aid received in fiscal year 
  4.20  2003.  Beginning with fiscal year 2005, the commissioner must, 
  4.21  at a minimum, audit each adult basic education program once 
  4.22  every five years.  The commissioner must establish procedures to 
  4.23  reconcile any discrepancies between aid payments based on 
  4.24  information reported to the commissioner and aid estimates based 
  4.25  on a program audit. 
  4.26     Sec. 7.  Minnesota Statutes 2002, section 126C.17, is 
  4.27  amended by adding a subdivision to read: 
  4.28     Subd. 14.  [REFERENDUM FOR COMMUNITY EDUCATION 
  4.29  PROGRAMS.] (a) A referendum may be called for the purpose of 
  4.30  funding community education programs.  If a referendum for 
  4.31  community education programs is called, the provisions of 
  4.32  subdivision 9 apply. 
  4.33     (b) Community education referendum revenue is raised 
  4.34  entirely through the local levy and must be levied against the 
  4.35  referendum market value of the district as provided in 
  4.36  subdivision 10.  
  5.1      Sec. 8.  [TRANSFER OF FUNDS.] 
  5.2      Any funds remaining in the children's trust fund as of June 
  5.3   30, 2003, are transferred to the undesignated fund balance of 
  5.4   the state general fund.  
  5.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  5.6   following final enactment.  
  5.7      Sec. 9.  [SALE OF PERPICH CENTER FOR THE ARTS.] 
  5.8      As of July 1, 2003, the Perpich Center for the Arts 
  5.9   education is declared surplus state property and is no longer 
  5.10  needed for state purposes.  The commissioner of administration 
  5.11  is directed to sell the property in accordance with Minnesota 
  5.12  Statutes, section 16A.695.  The provisions of Minnesota 
  5.13  Statutes, sections 16C.23, subdivision 6, and 94.10, subdivision 
  5.14  1, requiring the commissioner to first offer to sell this 
  5.15  property to other units of government do not apply to this sale. 
  5.16     Sec. 10.  [REPEALER.] 
  5.17     (a) Minnesota Statutes 2002, sections 119A.12; 119A.37; 
  5.18  119A.445; 119A.52; 120B.23; 121A.16; 121A.17; 122A.62; 122A.63; 
  5.19  122A.64; 122A.65; 123B.59, subdivisions 6 and 7; 124D.081; 
  5.20  124D.115; 124D.1156; 124D.117; 124D.135, subdivision 4; 124D.15; 
  5.21  124D.16; 124D.17; 124D.20, subdivisions 3, 4, 4a, 6, and 7; 
  5.22  124D.221; 124D.23; 124D.39; 124D.40; 124D.41; 124D.42; 124D.43; 
  5.23  124D.44; 124D.45; 124D.81; 124D.83; 124D.84; 126C.445; 126C.455; 
  5.24  129C.10; 129C.15; 129C.20; 129C.25; and 129C.26, are repealed 
  5.25  for revenue for fiscal year 2004. 
  5.26     (b) Laws 1993, chapter 224, article 8, section 20, 
  5.27  subdivision 2, as amended by Laws 1994, chapter 647, article 8, 
  5.28  section 29; Laws 2000, chapter 489, article 2, section 36, as 
  5.29  amended by Laws 2001, First Special Session chapter 6, article 
  5.30  1, section 44; and Laws 2001, First Special Session chapter 6, 
  5.31  article 2, section 70, are repealed. 
  5.32     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2003.