1.1 	A bill for an act
1.2 	relating to education; authorizing a school district to create essential services 
1.3 	and priority purposes account in the district general fund; amending Minnesota 
1.4 	Statutes 2006, section 179A.07, by adding a subdivision; proposing coding for 
1.5 	new law in Minnesota Statutes, chapter 123B.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [123B.7495] ESSENTIAL SERVICES AND PRIORITY PURPOSES 
1.8 	ACCOUNT.
1.9 	(a) A school district may create an essential services and priority purposes account 
1.10 	in the general fund. If a district creates this account, the district must specify the purposes 
1.11 	for which money transferred into the account will be used. Funds transferred into the 
1.12 	account shall not be used for any purposes not specified by the district. The district may 
1.13 	specify more than one purpose for the funds in the account. A district may only change 
1.14 	or adjust the purposes of the account on July 1 of an odd-numbered year, except as 
1.15 	provided in paragraph (g).
1.16 	(b) A school district that creates an account under paragraph (a) may make a 
1.17 	permanent fund transfer from the general fund to the essential services and priority 
1.18 	purposes account by July 1 of an odd-numbered year. The amount transferred to the 
1.19 	account must be made as either a specific dollar amount or as a percentage of the district's 
1.20 	general fund. The amount transferred may assume revenues that the district reasonably 
1.21 	anticipates receiving in the next two fiscal years. The district may make more than one 
1.22 	fund transfer to the account. Funds in the account may only be expended by the district 
1.23 	for the purposes specified by the district.
1.24 	(c) The revenue transferred to the essential services and priority purposes account 
1.25 	under paragraph (a) may be used at least for the following purposes: staff development, 
2.1 	class size reduction, budget reserve, classroom technology, betterment of school sites and 
2.2 	facilities, textbooks or other curricular materials, student transportation, school safety, or 
2.3 	music instruction and instrument purchases.
2.4 	(d) A school district that reserves funds in the essential services and priority purposes 
2.5 	account for staff development is not required to reserve funds for staff development 
2.6 	under section 122A.61.
2.7 	(e) A school district that reserves funds in the essential services and priority 
2.8 	purposes account for class size reduction is not required to reserve funds for learning and 
2.9 	development under section 126C.12, subdivision 1.
2.10 	(f) A school district that reserves funds in the essential services and priority purposes 
2.11 	account for gifted and talented programs is not required to reserve its gifted and talented 
2.12 	revenue, under section 126C.10, subdivision 2b, for gifted and talented programs.
2.13 	(g) The school board may, by unanimous vote, change or adjust the purposes of the 
2.14 	essential services and priority purposes account in the general fund at any time during 
2.15 	a calendar year if it is determined that there is an unforeseen emergency pertaining to 
2.16 	the health and safety of students.

2.17 	Sec. 2. Minnesota Statutes 2006, section 179A.07, is amended by adding a subdivision 
2.18 	to read:
2.19 		Subd. 1a.School districts. A school district must not enter into a collective 
2.20 	bargaining agreement that requires the use of money transferred into its essential services 
2.21 	and priority purposes account under section 123B.7495.