1.1 	A bill for an act
1.2 	relating to education finance; providing for early childhood through grade 
1.3 	12 education, including general education, student accountability, education 
1.4 	excellence, charter schools, special programs, facilities and technology, nutrition, 
1.5 	libraries and accounting, early childhood education, self-sufficiency and lifelong 
1.6 	learning, state agencies, and forecast adjustments; appropriating money; 
1.7 	requiring reports;amending Minnesota Statutes 2012, sections 13.319, by adding 
1.8 	a subdivision; 120A.20, subdivision 1; 120A.22, subdivisions 5, 8, 11; 120A.24, 
1.9 	subdivision 1; 120A.41; 120B.02; 120B.125; 120B.128; 120B.30, subdivisions 
1.10 	1, 1a; 120B.36, subdivision 1; 122A.415, by adding subdivisions; 123A.73, 
1.11 	subdivisions 3, 4, 5; 123B.41, subdivision 7; 123B.42, subdivision 3; 123B.53, 
1.12 	subdivision 5; 123B.54; 123B.57, subdivision 4; 123B.591, subdivisions 2, 
1.13 	3; 123B.75, subdivision 5; 123B.92, subdivision 9; 124D.02, subdivision 1; 
1.14 	124D.03, subdivision 12; 124D.10, subdivisions 14, 23a; 124D.11, subdivisions 
1.15 	1, 2, 4, 5; 124D.111, subdivision 1, by adding a subdivision; 124D.119; 
1.16 	124D.128, subdivision 2; 124D.42; 124D.4531; 124D.531, subdivision 1; 
1.17 	124D.65, subdivision 5; 125A.11, subdivision 1; 125A.76, subdivision 4; 
1.18 	125A.79, subdivisions 1, 8; 125B.26, subdivision 4; 126C.05, subdivisions 1, 5, 
1.19 	6, 15; 126C.10, subdivisions 1, 2, 2a, 2c, 3, 7, 8, 13, 13a, 13b, 17, 18, 24, 27, 29, 
1.20 	31, 32, 34, 35, 36, by adding subdivisions; 126C.12, subdivisions 1, 5; 126C.126; 
1.21 	126C.13, subdivisions 4, 5, by adding subdivisions; 126C.15, subdivision 1; 
1.22 	126C.17; 126C.20; 126C.40, subdivisions 1, 6; 126C.44; 127A.45, subdivision 
1.23 	2; 127A.47, subdivisions 7, 8; 127A.51; 128D.11, subdivision 3; 260C.007, 
1.24 	subdivision 19; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First 
1.25 	Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3, 
1.26 	as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10, as 
1.27 	amended; article 2, sections 13; 14; 18; 19; 50, subdivisions 2, as amended, 4, as 
1.28 	amended, 5, as amended, 6, as amended, 7, as amended, 9, as amended; article 
1.29 	3, section 11, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as 
1.30 	amended; article 4, section 10, subdivisions 2, as amended, 3, as amended, 4, 
1.31 	as amended, 6, as amended; article 5, section 12, subdivisions 2, as amended, 
1.32 	3, as amended, 4, as amended; article 6, section 2, subdivisions 2, as amended, 
1.33 	3, as amended, 5, as amended; article 7, section 2, subdivisions 2, as amended, 
1.34 	3, as amended, 4, as amended; article 8, section 2, subdivisions 2, as amended, 
1.35 	3, as amended; article 9, section 3, subdivision 2, as amended; proposing 
1.36 	coding for new law in Minnesota Statutes, chapters 124D; 126C; repealing 
1.37 	Minnesota Statutes 2012, sections 120B.08; 120B.09; 124D.454, subdivisions 
1.38 	10, 11; 125A.76, subdivision 7; 126C.10, subdivisions 13a, 13b, 25, 26, 28, 
1.39 	31a, 31b, 31c, 34, 35, 36; 126C.17, subdivision 13; 127A.50, subdivisions 1, 
2.1 	5; Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 
2.2 	3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16; 3501.0040; 3501.0050; 3501.0060; 
2.3 	3501.0090; 3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 
2.4 	3501.0150; 3501.0160; 3501.0170; 3501.0180; 3501.0200; 3501.0210; 
2.5 	3501.0220; 3501.0230; 3501.0240; 3501.0250; 3501.0270; 3501.0280, subparts 
2.6 	1, 2; 3501.0290; 3501.1000; 3501.1020; 3501.1030; 3501.1040; 3501.1050; 
2.7 	3501.1110; 3501.1120; 3501.1130; 3501.1140; 3501.1150; 3501.1160; 
2.8 	3501.1170; 3501.1180; 3501.1190.
2.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.10 	ARTICLE 1
2.11 	GENERAL EDUCATION

2.12 	Section 1. Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:
2.13 		Subdivision 1.Age limitations; pupils. (a) All schools supported in whole or 
2.14 	in part by state funds are public schools. Admission to a public school is free to any 
2.15 	person who: (1) resides within the district that operates the school; (2) is under 21 years of 
2.16 	age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age 
2.17 	requirements imposed by this section. Notwithstanding the provisions of any law to the 
2.18 	contrary, the conduct of all students under 21 years of age attending a public secondary 
2.19 	school is governed by a single set of reasonable rules and regulations promulgated by the 
2.20 	school board.
2.21 	(b) A person shall not be admitted to a public school (1) as a kindergarten pupil, 
2.22 	unless the pupil is at least five years of age on September 1 of the calendar year in which 
2.23 	the school year for which the pupil seeks admission commences; or (2) as a 1st grade 
2.24 	student, unless the pupil is at least six years of age on September 1 of the calendar year in 
2.25 	which the school year for which the pupil seeks admission commences or has completed 
2.26 	kindergarten; except that any school board may establish a policy for admission of 
2.27 	selected pupils at an earlier age under section 124D.02.
2.28 	(c) A pupil who becomes age 21 after enrollment is eligible for continued free public 
2.29 	school enrollment until at least one of the following occurs: (1) the first September 1 after 
2.30 	the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3) 
2.31 	the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4) 
2.32 	the end of the school year.

2.33 	Sec. 2. Minnesota Statutes 2012, section 120A.41, is amended to read:
2.34 	120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
2.35 	A school board's annual school calendar must include at least 425 hours of 
2.36 	instruction for a kindergarten student without a disability, 935 hours of instruction for a 
3.1 	student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7 
3.2 	though 12, not including summer school. The school calendar for all-day kindergarten 
3.3 	must include at least 850 hours of instruction for the school year. Nothing in this section 
3.4 	permits a school district to adopt a four-day week schedule unless approved by the 
3.5 	commissioner under section 124D.126.

3.6 	Sec. 3. Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:
3.7 		Subd. 3.Voluntary dissolution; referendum revenue. As of the effective date of 
3.8 	the voluntary dissolution of a district and its attachment to one or more existing districts 
3.9 	pursuant to section 123A.46, the authorization for all referendum revenues previously 
3.10 	approved by the voters of all affected districts for those districts pursuant to section 
3.11 	126C.17, subdivision 9, or its predecessor provision, is canceled. However, if all of the 
3.12 	territory of any independent district is included in the enlarged district, and if the adjusted 
3.13 	net tax capacity of taxable property in that territory comprises 90 percent or more of 
3.14 	the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged 
3.15 	district's referendum revenue shall be determined as follows:
3.16 	The referendum revenue shall be the revenue per resident marginal cost adjusted
3.17 	 pupil unit times the number of resident marginal cost adjusted pupil units in the enlarged 
3.18 	district. Any new referendum revenue shall be authorized only after approval is granted 
3.19 	by the voters of the entire enlarged district in an election pursuant to section 126C.17, 
3.20 	subdivision 9.

3.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
3.22 	and later.

3.23 	Sec. 4. Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:
3.24 		Subd. 4.Consolidation; maximum authorized referendum revenues. (a) As 
3.25 	of the effective date of a consolidation pursuant to section 123A.48, if the plan for 
3.26 	consolidation so provides, or if the plan for consolidation makes no provision concerning 
3.27 	referendum revenues, the authorization for all referendum revenues previously approved 
3.28 	by the voters of all affected districts for those districts pursuant to section 126C.17, 
3.29 	subdivision 9, or its predecessor provision shall be recalculated as provided in this 
3.30 	subdivision. The referendum revenue authorization for the newly created district shall 
3.31 	be the revenue per resident marginal cost adjusted pupil unit that would raise an amount 
3.32 	equal to the combined dollar amount of the referendum revenues authorized by each of 
3.33 	the component districts for the year preceding the consolidation, unless the referendum 
4.1 	revenue authorization of the newly created district is subsequently modified pursuant to 
4.2 	section 126C.17, subdivision 9.
4.3 	(b) The referendum allowance for a consolidated district in the years following 
4.4 	consolidation equals the average of the consolidating districts' existing authorities for those 
4.5 	years, weighted by the districts' resident marginal cost adjusted pupil units in the year 
4.6 	preceding consolidation. For purposes of this calculation, the referendum authorities used 
4.7 	for individual districts shall not decrease from year to year until such time as all existing 
4.8 	authorities for all the consolidating districts have fully expired, but shall increase if they 
4.9 	were originally approved with consumer price index-based or other annual increases.
4.10 	(c) The referendum revenue authorization for the newly created district shall continue 
4.11 	for a period of time equal to the longest period authorized for any component district.

4.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
4.13 	and later.

4.14 	Sec. 5. Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:
4.15 		Subd. 5.Alternative method. (a) As of the effective date of a consolidation 
4.16 	pursuant to section 123A.48, if the plan for consolidation so provides, the authorization 
4.17 	for all referendum revenues previously approved by the voters of all affected districts for 
4.18 	those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision 
4.19 	shall be combined as provided in this subdivision. The referendum revenue authorization 
4.20 	for the newly created district may be any allowance per resident marginal cost adjusted
4.21 	 pupil unit provided in the plan for consolidation, but may not exceed the allowance 
4.22 	per resident marginal cost adjusted pupil unit that would raise an amount equal to the 
4.23 	combined dollar amount of the referendum revenues authorized by each of the component 
4.24 	districts for the year preceding the consolidation.
4.25 	(b) The referendum allowance for a consolidated district in the years following 
4.26 	consolidation equals the average of the consolidating districts' existing authorities for those 
4.27 	years, weighted by the districts' resident marginal cost adjusted pupil units in the year 
4.28 	preceding consolidation. For purposes of this calculation, the referendum authorities used 
4.29 	for individual districts shall not decrease from year to year until such time as all existing 
4.30 	authorities for all the consolidating districts have fully expired, but shall increase if they 
4.31 	were originally approved with consumer price index-based or other annual increases.
4.32 	(c) The referendum revenue authorization for the newly created district shall 
4.33 	continue for a period of time equal to the longest period authorized for any component 
4.34 	district. The referendum revenue authorization for the newly created district may be 
4.35 	modified pursuant to section 126C.17, subdivision 9.

5.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
5.2 	and later.

5.3 	Sec. 6. Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:
5.4 		Subd. 7.Elementary pupils. "Elementary pupils" means pupils in grades 
5.5 	kindergarten through 6; provided, each kindergarten pupil in a half-day program shall be 
5.6 	counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42, 
5.7 	and 123B.44 to 123B.48.

5.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015.

5.9 	Sec. 7. Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:
5.10 		Subd. 3.Cost; limitation. (a) The cost per pupil of the textbooks, individualized 
5.11 	instructional or cooperative learning materials, software or other educational technology, 
5.12 	and standardized tests provided for in this section for each school year must not exceed the 
5.13 	statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota 
5.14 	public elementary and secondary schools for textbooks, individualized instructional 
5.15 	materials and standardized tests as computed and established by the department by February 
5.16 	1 of the preceding school year from the most recent public school year data then available.
5.17 	(b) The cost computed in clause (a) shall be increased by an inflation adjustment 
5.18 	equal to the percent of increase in the formula allowance, pursuant to section 126C.10, 
5.19 	subdivision 2, from the second preceding school year to the current school year.
5.20 	 Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in 
5.21 	section 126C.10, subdivision 2, the commissioner shall use the amount of the formula 
5.22 	allowance for the current year minus $411 in determining the inflation adjustment for 
5.23 	fiscal years 2015 and 2016.
5.24 	(c) The commissioner shall allot to the districts or intermediary service areas the 
5.25 	total cost for each school year of providing or loaning the textbooks, individualized 
5.26 	instructional or cooperative learning materials, software or other educational technology, 
5.27 	and standardized tests for the pupils in each nonpublic school. The allotment shall not 
5.28 	exceed the product of the statewide average expenditure per pupil, according to clause 
5.29 	(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils 
5.30 	who make requests pursuant to this section and who are enrolled as of September 15 of 
5.31 	the current school year.

5.32 	Sec. 8. Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:
6.1 		Subd. 9.Nonpublic pupil transportation aid. (a) A district's nonpublic pupil 
6.2 	transportation aid for the 1996-1997 and later school years for transportation services for 
6.3 	nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this 
6.4 	section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does 
6.5 	not limit the obligation to transport pupils under sections 123B.84 to 123B.87.
6.6 	(b) For regular and excess transportation according to subdivision 1, paragraph (b), 
6.7 	clauses (1) and (2), an amount equal to the product of:
6.8 	(1) the district's actual expenditure per pupil transported in the regular and excess 
6.9 	transportation categories during the second preceding school year; times
6.10 	(2) the number of nonpublic school pupils residing in the district who receive regular 
6.11 	or excess transportation service or reimbursement for the current school year; times
6.12 	(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for 
6.13 	the current school year to the formula allowance pursuant to section 126C.10, subdivision 
6.14 	2, for the second preceding school year.
6.15 	(c) For nonpublic nonregular transportation according to subdivision 1, paragraph 
6.16 	(b), clause (5), an amount equal to the product of:
6.17 	(1) the district's actual expenditure for nonpublic nonregular transportation during 
6.18 	the second preceding school year; times
6.19 	(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for 
6.20 	the current school year to the formula allowance pursuant to section 126C.10, subdivision 
6.21 	2, for the second preceding school year.
6.22 	(d) Notwithstanding the amount of the formula allowance for fiscal year 2004
6.23 	 years 2015 and 2016 in section 126C.10, subdivision 2, the commissioner shall use the 
6.24 	amount of the formula allowance for the current year minus $415 $411 in determining 
6.25 	the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal year 2004
6.26 	 years 2015 and 2016.

6.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
6.28 	and later.

6.29 	Sec. 9. Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:
6.30 		Subdivision 1.Kindergarten instruction. The board may establish and maintain 
6.31 	one or more kindergartens for the instruction of children and after July 1, 1974, shall 
6.32 	provide kindergarten instruction for all eligible children, either in the district or in 
6.33 	another district. All children to be eligible for kindergarten must be at least five years 
6.34 	of age on September 1 of the calendar year in which the school year commences. In 
6.35 	addition all children selected under an early admissions policy established by the school 
7.1 	board may be admitted. If established, a board-adopted early admissions policy must 
7.2 	describe the process and procedures for comprehensive evaluation in cognitive, social, 
7.3 	and emotional developmental domains to help determine the child's ability to meet 
7.4 	kindergarten grade expectations and progress to first grade in the subsequent year. The 
7.5 	comprehensive evaluation must use valid and reliable instrumentation, be aligned with 
7.6 	state kindergarten expectations, and include a parent report and teacher observations of 
7.7 	the child's knowledge, skills, and abilities. The early admissions policy must be made 
7.8 	available to parents in an accessible format and is subject to review by the commissioner 
7.9 	of education. The evaluation is subject to section 127A.41. Nothing in this section 
7.10 	shall prohibit a school district from establishing Head Start, prekindergarten, or nursery 
7.11 	school classes for children below kindergarten age. Any school board with evidence that 
7.12 	providing kindergarten will cause an extraordinary hardship on the school district may 
7.13 	apply to the commissioner of education for an exception.

7.14 	Sec. 10. Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:
7.15 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
7.16 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), 
7.17 	in average daily membership enrolled in the district of residence, in another district under 
7.18 	sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 
7.19 	section 124D.10; or for whom the resident district pays tuition under section 123A.18, 
7.20 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 
7.21 	124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 
7.22 	subdivision.
7.23 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
7.24 	by the commissioner and has an individualized education program is counted as the ratio 
7.25 	of the number of hours of assessment and education service to 825 times 1.25 1.0 with a 
7.26 	minimum average daily membership of 0.28, but not more than 1.25 1.0 pupil units.
7.27 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
7.28 	counted as the ratio of the number of hours of assessment service to 825 times 1.25 1.0.
7.29 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
7.30 	by the commissioner is counted as the ratio of the number of hours of assessment and 
7.31 	education services required in the fiscal year by the pupil's individualized education 
7.32 	program to 875, but not more than one.
7.33 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 pupil 
7.34 	units A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil 
7.35 	units if the pupil is enrolled in a free all-day, every day kindergarten program available to 
8.1 	all kindergarten pupils at the pupil's school that meets the minimum hours requirement in 
8.2 	section 120A.41, or is counted as .55 pupil units, if the pupil is not enrolled in a free all-day, 
8.3 	every day kindergarten program available to all kindergarten pupils at the pupil's school.
8.4 	(e) A pupil who is in any of grades 1 to 3 6 is counted as 1.115 1.0 pupil units for 
8.5 	fiscal year 2000 and thereafter.
8.6 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
8.7 	year 1995 and thereafter.
8.8 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.2 pupil units.
8.9 	(h) (g) A pupil who is in the postsecondary enrollment options program is counted 
8.10 	as 1.3 1.2 pupil units.

8.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
8.12 	and later.

8.13 	Sec. 11. Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:
8.14 		Subd. 5.Adjusted pupil units. (a) Adjusted pupil units for a district or charter 
8.15 	school means the sum of:
8.16 	(1) the number of pupil units served, according to subdivision 7, plus
8.17 	(2) pupil units according to subdivision 1 for whom the district or charter school pays 
8.18 	tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
8.19 	subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus
8.20 	(3) pupil units according to subdivision 1 for whom the district or charter school 
8.21 	receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 
8.22 	123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
8.23 	(b) Adjusted marginal cost pupil units means the greater of:
8.24 	(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school 
8.25 	year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
8.26 	(2) the number of adjusted pupil units defined in paragraph (a) for the current school 
8.27 	year.

8.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
8.29 	and later.

8.30 	Sec. 12. Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:
8.31 		Subd. 6.Resident pupil units. (a) Resident pupil units for a district means the 
8.32 	number of pupil units according to subdivision 1 residing in the district.
8.33 	(b) Resident marginal cost pupil units means the greater of:
9.1 	(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year 
9.2 	and .23 times the pupil units defined in paragraph (a) for the previous school year; or
9.3 	(2) the number of resident pupil units defined in paragraph (a) for the current school 
9.4 	year.

9.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
9.6 	and later.

9.7 	Sec. 13. Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:
9.8 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
9.9 	year program under section 124D.128, an area learning center or an alternative learning 
9.10 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
9.11 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
9.12 	subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more 
9.13 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
9.14 	year for a kindergarten student without a disability in a full-day kindergarten program, 
9.15 	or more than 425 hours in a school year for a half-day kindergarten student without a 
9.16 	disability, that pupil may be counted as more than one pupil in average daily membership 
9.17 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
9.18 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
9.19 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
9.20 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
9.21 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
9.22 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number 
9.23 	of hours required for a full-time kindergarten student without a disability in the district to 
9.24 	425 for a kindergarten student without a disability; and (iv) the greater of 425 hours or the 
9.25 	number of hours required for a half-time kindergarten student without a disability in the 
9.26 	district to 425 for a half-day kindergarten student without a disability. Hours that occur 
9.27 	after the close of the instructional year in June shall be attributable to the following fiscal 
9.28 	year. A kindergarten student must not be counted as more than 1.2 pupils in average daily 
9.29 	membership under this subdivision. A student in kindergarten or grades 1 through 12 must 
9.30 	not be counted as more than 1.2 pupils in average daily membership under this subdivision.
9.31 	(b)(i) To receive general education revenue for a pupil in an area learning center 
9.32 	or alternative learning program that has an independent study component, a district 
9.33 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
9.34 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
9.35 	district that has an area learning center or alternative learning program must reserve 
10.1 	revenue in an amount equal to at least 90 percent of the district average general education 
10.2 	revenue per pupil unit, minus an amount equal to the product of the formula allowance 
10.3 	according to section 126C.10, subdivision 2, times .0485 .0465, calculated without basic 
10.4 	skills and transportation sparsity revenue, times the number of pupil units generated by 
10.5 	students attending an area learning center or alternative learning program. The amount of 
10.6 	reserved revenue available under this subdivision may only be spent for program costs 
10.7 	associated with the area learning center or alternative learning program. Basic skills 
10.8 	revenue generated according to section 126C.10, subdivision 4, by pupils attending the 
10.9 	eligible program must be allocated to the program.
10.10 	(ii) General education revenue for a pupil in a state-approved alternative program 
10.11 	without an independent study component must be prorated for a pupil participating for less 
10.12 	than a full year, or its equivalent. The district must develop a continual learning plan for the 
10.13 	pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area 
10.14 	learning center or alternative learning program must reserve revenue in an amount equal to 
10.15 	at least 90 percent of the district average general education revenue per pupil unit, minus 
10.16 	an amount equal to the product of the formula allowance according to section 126C.10, 
10.17 	subdivision 2, times .0485 .0465, calculated without basic skills and transportation sparsity 
10.18 	revenue, times the number of pupil units generated by students attending an area learning 
10.19 	center or alternative learning program. The amount of reserved revenue available under this 
10.20 	subdivision may only be spent for program costs associated with the area learning center or 
10.21 	alternative learning program. Basic skills revenue generated according to section 126C.10, 
10.22 	subdivision 4, by pupils attending the eligible program must be allocated to the program.
10.23 	(iii) General education revenue for a pupil in a state-approved alternative program 
10.24 	that has an independent study component must be paid for each hour of teacher contact 
10.25 	time and each hour of independent study time completed toward a credit or graduation 
10.26 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
10.27 	number of hours of teacher contact time and independent study time divided by 1,020.
10.28 	(iv) For a state-approved alternative program having an independent study 
10.29 	component, the commissioner shall require a description of the courses in the program, the 
10.30 	kinds of independent study involved, the expected learning outcomes of the courses, and 
10.31 	the means of measuring student performance against the expected outcomes.

10.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015.

10.33 	Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
10.34 		Subdivision 1.General education revenue. (a) For fiscal years 2013 and 2014, the 
10.35 	general education revenue for each district equals the sum of the district's basic revenue, 
11.1 	extended time revenue, gifted and talented revenue, small schools revenue, basic skills 
11.2 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
11.3 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
11.4 	alternative teacher compensation revenue, and transition revenue.
11.5 	(b)  For fiscal year 2015 and later, the general education revenue for each district 
11.6 	equals the sum of the district's basic revenue, extended time revenue, gifted and talented 
11.7 	revenue, declining enrollment revenue, small schools revenue, basic supplemental 
11.8 	revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue, 
11.9 	transportation sparsity revenue, total operating capital revenue, equity revenue, pension 
11.10 	adjustment revenue, safe schools revenue, and transition revenue.

11.11 	Sec. 15. Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:
11.12 		Subd. 2.Basic revenue. For fiscal year 2014, the basic revenue for each district 
11.13 	equals the formula allowance times the adjusted marginal cost pupil units for the school 
11.14 	year. The formula allowance for fiscal year 2011 is $5,124. The formula allowance for 
11.15 	fiscal year 2012 is $5,174. For fiscal year 2015 and later, the basic revenue for each district 
11.16 	equals the formula allowance times the adjusted pupil units for the school year. The formula 
11.17 	allowance for fiscal year 2013 and subsequent years is $5,224. The formula allowance for 
11.18 	fiscal year 2014 is $5,276. The formula allowance for fiscal year 2015 and later is $5,687.

11.19 	Sec. 16. Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:
11.20 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue 
11.21 	is equal to the product of $4,601 $4,945 and the sum of the adjusted marginal cost pupil 
11.22 	units of the district for each pupil in average daily membership in excess of 1.0 and less 
11.23 	than 1.2 according to section 126C.05, subdivision 8.
11.24 	(b) A school district's extended time revenue may be used for extended day 
11.25 	programs, extended week programs, summer school, and other programming authorized 
11.26 	under the learning year program.

11.27 	Sec. 17. Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:
11.28 		Subd. 2c.Small schools revenue. A school district, not including a charter school, 
11.29 	is eligible for small schools revenue equal to the product of:
11.30 	(1) $5,224 $540;
11.31 	(2) the district's adjusted marginal cost pupil units for that year; and
11.32 	(3) the greater of zero or the ratio of (i) 1,000 960 less the district's adjusted marginal 
11.33 	cost pupil units for that year, to (ii) 1,000; and 960.
12.1 	(4) 0.10.

12.2 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
12.3 	and later.

12.4 	Sec. 18. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
12.5 	subdivision to read:
12.6 		Subd. 2d.Declining enrollment revenue. A school district's declining enrollment 
12.7 	revenue equals the greater of zero or the product of: (1) 28 percent of the formula 
12.8 	allowance for that year and (2) the difference between the adjusted pupil units for the 
12.9 	preceding year and the adjusted pupil units for the current year.

12.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
12.11 	and later.

12.12 	Sec. 19. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
12.13 	subdivision to read:
12.14 		Subd. 2e.Basic supplemental revenue. The basic supplemental revenue for each 
12.15 	district equals the supplemental allowance times the adjusted pupil units for the school 
12.16 	year. The supplemental allowance for fiscal year 2015 and later years is $56.

12.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
12.18 	and later.

12.19 	Sec. 20. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
12.20 	subdivision to read:
12.21 		Subd. 2f.Safe schools revenue. The safe schools revenue for each district, including 
12.22 	charter schools, equals the safe schools allowance times the district's adjusted pupil units 
12.23 	for the school year. The safe schools allowance for fiscal year 2015 and later years is $34.

12.24 	Sec. 21. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
12.25 	subdivision to read:
12.26 		Subd. 2g.Uses of safe schools revenue. (a) Safe schools revenue, under subdivision 
12.27 	2f, must be reserved and used for directly funding the following purposes or for reimbursing 
12.28 	the cities and counties who contract with the district for the following purposes:
12.29 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
12.30 	peace officers and sheriffs for liaison in services in the district's schools;
13.1 	(2) to pay the costs for a drug abuse prevention program as defined in section 
13.2 	609.101, subdivision 3, paragraph (e), in the elementary schools;
13.3 	(3) to pay the costs for a gang resistance education training curriculum in the 
13.4 	district's schools;
13.5 	(4) to pay the costs for security in the district's schools and on school property;
13.6 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
13.7 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
13.8 	the school district; 
13.9 	(6) to pay the costs for licensed school counselors, licensed school nurses, licensed 
13.10 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
13.11 	dependency counselors to help provide early responses to problems; or
13.12 	(7) to pay the costs for colocating and collaborating with mental health professionals 
13.13 	who are not district employees or contractors.
13.14 	For expenditures under clause (1), the district must initially attempt to contract for 
13.15 	services to be provided by peace officers or sheriffs with the police department of each 
13.16 	city or the sheriff's department of the county within the district containing the school 
13.17 	receiving the services. If a local police department or a county sheriff's department does 
13.18 	not wish to provide the necessary services, the district may contract for these services with 
13.19 	any other police or sheriff's department located entirely or partially within the school 
13.20 	district's boundaries.
13.21 	(b) A school district may reserve up to $2 per adjusted pupil unit of safe schools 
13.22 	revenue for laminated glass for security in the district's schools.

13.23 	Sec. 22. Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:
13.24 		Subd. 3.Compensatory education revenue. (a) For fiscal year 2014, the 
13.25 	compensatory education revenue for each building in the district equals the formula 
13.26 	allowance minus $415 times the compensation revenue pupil units computed according 
13.27 	to section 126C.05, subdivision 3. For fiscal year 2015 and later, the compensatory 
13.28 	education revenue for each building in the district equals the formula allowance minus 
13.29 	$826 times the compensation revenue pupil units computed according to section 126C.05, 
13.30 	subdivision 3. Revenue shall be paid to the district and must be allocated according to 
13.31 	section 126C.15, subdivision 2.
13.32 	(b) When the district contracting with an alternative program under section 124D.69
13.33 	changes prior to the start of a school year, the compensatory revenue generated by pupils 
13.34 	attending the program shall be paid to the district contracting with the alternative program 
14.1 	for the current school year, and shall not be paid to the district contracting with the 
14.2 	alternative program for the prior school year.
14.3 	(c) When the fiscal agent district for an area learning center changes prior to the start 
14.4 	of a school year, the compensatory revenue shall be paid to the fiscal agent district for the 
14.5 	current school year, and shall not be paid to the fiscal agent district for the prior school year.

14.6 	Sec. 23. Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:
14.7 		Subd. 7.Secondary sparsity revenue. (a) A district's secondary sparsity revenue 
14.8 	for a school year equals the sum of the results of the following calculation for each 
14.9 	qualifying high school in the district:
14.10 	(1) the formula allowance for the school year minus $411, multiplied by
14.11 	(2) the secondary average daily membership of pupils served in the high school, 
14.12 	multiplied by
14.13 	(3) the quotient obtained by dividing 400 minus the secondary average daily 
14.14 	membership by 400 plus the secondary daily membership, multiplied by
14.15 	(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus 
14.16 	23 by ten.
14.17 	(b) A newly formed district that is the result of districts combining under the 
14.18 	cooperation and combination program or consolidating under section 123A.48 must 
14.19 	receive secondary sparsity revenue equal to the greater of: (1) the amount calculated 
14.20 	under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary 
14.21 	sparsity revenue the former districts had in the year prior to consolidation, increased for 
14.22 	any subsequent changes in the secondary sparsity formula.

14.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
14.24 	and later.

14.25 	Sec. 24. Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:
14.26 		Subd. 8.Elementary sparsity revenue. A district's elementary sparsity revenue 
14.27 	equals the sum of the following amounts for each qualifying elementary school in the 
14.28 	district:
14.29 	(1) the formula allowance for the year minus $411, multiplied by
14.30 	(2) the elementary average daily membership of pupils served in the school, 
14.31 	multiplied by
14.32 	(3) the quotient obtained by dividing 140 minus the elementary average daily 
14.33 	membership by 140 plus the average daily membership.

15.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
15.2 	and later.

15.3 	Sec. 25. Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:
15.4 		Subd. 13.Total operating capital revenue. (a) Total operating capital revenue for 
15.5 	a district equals the amount determined under paragraph (b) or (c), plus $73 $79 times the 
15.6 	adjusted marginal cost pupil units for the school year. The revenue must be placed in a 
15.7 	reserved account in the general fund and may only be used according to subdivision 14.
15.8 	(b) Capital revenue for a district equals $100 $108 times the district's maintenance 
15.9 	cost index times its adjusted marginal cost pupil units for the school year.
15.10 	(c) The revenue for a district that operates a program under section 124D.128, is 
15.11 	increased by an amount equal to $30 times the number of marginal cost adjusted pupil 
15.12 	units served at the site where the program is implemented.

15.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
15.14 	and later.

15.15 	Sec. 26. Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:
15.16 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
15.17 	year 2007 years 2013 and later 2014 only, a district may levy an amount not more than the 
15.18 	product of its operating capital revenue for the fiscal year times the lesser of one or the 
15.19 	ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating 
15.20 	capital equalizing factor. The operating capital equalizing factor equals $10,194.

15.21 	Sec. 27. Minnesota Statutes 2012, section 126C.10, subdivision 13b, is amended to read:
15.22 		Subd. 13b.Operating capital aid. For fiscal years 2013 and 2014 only, a district's 
15.23 	operating capital aid equals its operating capital revenue minus its operating capital levy 
15.24 	times the ratio of the actual amount levied to the permitted levy.

15.25 	Sec. 28. Minnesota Statutes 2012, section 126C.10, subdivision 17, is amended to read:
15.26 		Subd. 17.Transportation sparsity definitions. The definitions in this subdivision 
15.27 	apply to subdivisions 18 and 19.
15.28 	(a) "Sparsity index" for a district means the greater of .2 or the ratio of the square 
15.29 	mile area of the district to the resident adjusted pupil units of the district.
15.30 	(b) "Density index" for a district means the ratio of the square mile area of the 
15.31 	district to the resident adjusted pupil units of the district. However, the density index for a 
15.32 	district cannot be greater than .2 or less than .005.

16.1 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

16.2 	Sec. 29. Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:
16.3 		Subd. 18.Transportation sparsity revenue allowance. (a) A district's 
16.4 	transportation sparsity allowance equals the greater of zero or the result of the following 
16.5 	computation:
16.6 	(i) Multiply the formula allowance according to subdivision 2, by .1469 .141.
16.7 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
16.8 	26/100 power.
16.9 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
16.10 	13/100 power.
16.11 	(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0465.
16.12 	(v) Subtract the result in clause (iv) from the result in clause (iii).
16.13 	(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 
16.14 	times the adjusted marginal cost pupil units.

16.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
16.16 	and later.

16.17 	Sec. 30. Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:
16.18 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
16.19 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
16.20 	transition revenue, and referendum revenue is less than the value of the school district at 
16.21 	or immediately above the 95th percentile of school districts in its equity region for those 
16.22 	revenue categories; and
16.23 	(2) the school district's administrative offices are not located in a city of the first 
16.24 	class on July 1, 1999.
16.25 	(b) A school district's equity revenue for a qualifying district that receives 
16.26 	referendum revenue under section 126C.17, subdivision 4, equals the product of (1) the 
16.27 	district's adjusted marginal cost pupil units for that year; times (2) the sum of (i) $13, plus 
16.28 	(ii) $75 $100, times the school district's equity index computed under subdivision 27.
16.29 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
16.30 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
16.31 	cost pupil units for that year times $13.
16.32 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
16.33 	equal to the district's resident marginal cost pupil units times the difference between ten 
16.34 	percent of the statewide average amount of referendum revenue per resident marginal cost 
17.1 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
17.2 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
17.3 	that year.
17.4 	(e) A school district's equity revenue for a school district located in the metro equity 
17.5 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
17.6 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
17.7 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
17.8 	additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
17.9 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
17.10 	equity revenue equal to $46 times its adjusted marginal cost pupil units.

17.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
17.12 	and later.

17.13 	Sec. 31. Minnesota Statutes 2012, section 126C.10, subdivision 27, is amended to read:
17.14 		Subd. 27.District equity index. (a) A district's equity index equals the greater 
17.15 	of zero or the ratio of the sum of the district equity gap amount to the regional equity 
17.16 	gap amount $2,000 minus the district's referendum revenue under section 126C.17, 
17.17 	subdivision 4, per adjusted pupil unit to $2,000.
17.18 	(b) A charter school's equity index equals the greater of zero or the ratio of $2,000 
17.19 	minus the school's general education revenue attributable to referendum equalization aid 
17.20 	under section 124D.11, subdivision 1, per adjusted pupil unit to $2,000.

17.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
17.22 	and later.

17.23 	Sec. 32. Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:
17.24 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 2015 and later, 
17.25 	a district may levy an amount not more than the product of its equity revenue for the 
17.26 	fiscal year times the lesser of one or the ratio of its referendum market value per resident 
17.27 	marginal cost pupil unit to $476,000 $538,200.

17.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
17.29 	and later.

17.30 	Sec. 33. Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:
17.31 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the sum of 
17.32 	the transition revenue the district would have received for fiscal year 2015 under Minnesota 
18.1 	Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater of zero or 
18.2 	the product of the ratio of the number of adjusted marginal cost pupil units the district 
18.3 	would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's 
18.4 	adjusted marginal cost pupil units for fiscal year 2004, times the difference between: 
18.5 	(1) the lesser sum of:
18.6 	(i) the district's general education revenue per adjusted marginal cost pupil unit 
18.7 	for fiscal year 2003 or the amount of general education revenue the district would have 
18.8 	received per adjusted marginal cost pupil unit for fiscal year 2004 2015 according to 
18.9 	Minnesota Statutes 2002, 2012, section 126C.10;
18.10 	(ii) the safe school levy the district certified for fiscal year 2014 under Minnesota 
18.11 	Statutes 2012, section 126C.44;
18.12 	(iii) 70 percent of the integration revenue the district received for fiscal year 2013 
18.13 	under Minnesota Statutes 2012, section 124D.86;
18.14 	(iv) the pension adjustment the district would have received for fiscal year 2015 
18.15 	under Minnesota Statutes 2012, section 127A.50;
18.16 	(v) the special education aid the district would have received for fiscal year 2015 
18.17 	under Minnesota Statutes 2012, section 125A.65; and
18.18 	(vi) the special education excess cost aid the district would have received for fiscal 
18.19 	year 2015 under Minnesota Statutes 2012, section 125A.79;  and
18.20 	(2) the sum of the district's:
18.21 	(i) general education revenue for fiscal year 2004 2015 excluding transition revenue 
18.22 	under section 126C.10;
18.23 	(ii) integration revenue for fiscal year 2015 under section 124D.862; and
18.24 	(iii) special education aid for fiscal year 2015 under section 125A.76; and
18.25 	divided by the number of adjusted marginal cost pupil units the district would have 
18.26 	counted for fiscal year 2004 under Minnesota Statutes 2002 2015.
18.27 	(b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of 
18.28 	the product of the district's transition allowance times the district's adjusted marginal cost 
18.29 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
18.30 	(c) (b) A district's transition revenue for fiscal year 2010 2015 and later equals the 
18.31 	sum of the product of the district's transition allowance times the district's adjusted marginal 
18.32 	cost pupil units plus the district's transition for prekindergarten revenue under subdivision 
18.33 	31a plus the district's transition for tuition reciprocity revenue under subdivision 31c.

18.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
18.35 	and later.

19.1 	Sec. 34. Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:
19.2 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005 2015
19.3 	 and later, a district may levy an amount not more than the product of its transition revenue 
19.4 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
19.5 	resident marginal cost pupil unit to $476,000 $538,200.

19.6 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
19.7 	and later.

19.8 	Sec. 35. Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:
19.9 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 2007, 
19.10 	2008, and 2009, the basic alternative teacher compensation aid for a school district 
19.11 	with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of 
19.12 	the alternative teacher compensation revenue under section 122A.415, subdivision 1. 
19.13 	The basic alternative teacher compensation aid for an intermediate school district or 
19.14 	charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if 
19.15 	the recipient is a charter school, equals $260 times the number of pupils enrolled in the 
19.16 	school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
19.17 	year for a charter school in the first year of operation, times the ratio of the sum of the 
19.18 	alternative teacher compensation aid and alternative teacher compensation levy for all 
19.19 	participating school districts to the maximum alternative teacher compensation revenue 
19.20 	for those districts under section 122A.415, subdivision 1.
19.21 	(b) For fiscal years 2010 and later 2013 and 2014 only, the basic alternative 
19.22 	teacher compensation aid for a school with a plan approved under section 122A.414, 
19.23 	subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under 
19.24 	section 122A.415, subdivision 1. The basic alternative teacher compensation aid for 
19.25 	an intermediate school district or charter school with a plan approved under section 
19.26 	122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times 
19.27 	the number of pupils enrolled in the school on October 1 of the previous year, or on 
19.28 	October 1 of the current year for a charter school in the first year of operation, times 
19.29 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
19.30 	compensation levy for all participating school districts to the maximum alternative teacher 
19.31 	compensation revenue for those districts under section 122A.415, subdivision 1.
19.32 	(c) (b) Notwithstanding paragraphsparagraph (a) and (b) and section 122A.415, 
19.33 	subdivision 1, the state total basic alternative teacher compensation aid entitlement must 
19.34 	not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the 
20.1 	amount of alternative teacher compensation aid approved under section 122A.415 so as 
20.2 	not to exceed these limits.

20.3 	Sec. 36. Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:
20.4 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 years 2013
20.5 	 and later 2014 only, the alternative teacher compensation levy for a district receiving basic 
20.6 	alternative teacher compensation aid equals the product of (1) the difference between the 
20.7 	district's alternative teacher compensation revenue and the district's basic alternative 
20.8 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
20.9 	net tax capacity per adjusted pupil unit to $5,634.

20.10 	Sec. 37. Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:
20.11 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year 2007 years 
20.12 	2013 and later 2014 only, a district's alternative teacher compensation equalization aid 
20.13 	equals the district's alternative teacher compensation revenue minus the district's basic 
20.14 	alternative teacher compensation aid minus the district's alternative teacher compensation 
20.15 	levy. If a district does not levy the entire amount permitted, the alternative teacher 
20.16 	compensation equalization aid must be reduced in proportion to the actual amount levied.
20.17 	(b) A district's alternative teacher compensation aid equals the sum of the 
20.18 	district's basic alternative teacher compensation aid and the district's alternative teacher 
20.19 	compensation equalization aid.

20.20 	Sec. 38. Minnesota Statutes 2012, section 126C.10, is amended by adding a 
20.21 	subdivision to read:
20.22 		Subd. 38.Pension adjustment revenue. A school district's pension adjustment 
20.23 	revenue equals the greater of zero or the product of:
20.24 	(1) the difference between the district's adjustment under Minnesota Statutes 2012, 
20.25 	section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state 
20.26 	average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for 
20.27 	fiscal year 2014 per adjusted pupil unit; and
20.28 	(2) the district's adjusted pupil units for the fiscal year.

20.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
20.30 	and later.

20.31 	Sec. 39. Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:
21.1 		Subdivision 1.Revenue. Of a district's general education revenue for fiscal year 
21.2 	2000 2015 and thereafter each school district shall reserve an amount equal to the formula
21.3 	allowance multiplied by the following calculation:
21.4 	(1) the sum of adjusted marginal cost pupils in average daily membership, according 
21.5 	to section 126C.05, subdivision 5, in kindergarten times .057 $299; plus
21.6 	(2) the sum of adjusted marginal cost pupils in average daily membership, according 
21.7 	to section 126C.05, subdivision 5, in grades 1 to 3 6 times .115; plus $459.
21.8 	(3) the sum of adjusted marginal cost pupils in average daily membership, according 
21.9 	to section 126C.05, subdivision 5, in grades 4 to 6 times .06.

21.10 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

21.11 	Sec. 40. Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:
21.12 		Subd. 5.Additional revenue use. If the board of a district determines that the 
21.13 	district has achieved and is maintaining the class sizes specified in subdivision 4, the board 
21.14 	may use the revenue to reduce class size in grades 4, 5, and 6, provide all-day, everyday 
21.15 	kindergarten, prepare and use individualized learning plans, improve program offerings, 
21.16 	purchase instructional material, services, or technology, or provide staff development 
21.17 	needed for reduced class sizes.

21.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015.

21.19 	Sec. 41. Minnesota Statutes 2012, section 126C.126, is amended to read:
21.20 	126C.126 USE OF GENERAL EDUCATION REVENUE FOR ALL-DAY 
21.21 	KINDERGARTEN AND PREKINDERGARTEN.
21.22 	 A school district may spend general education revenue on extended time 
21.23 	kindergarten and prekindergarten programs. At the school board's discretion, the district 
21.24 	may use revenue generated by the full-day kindergarten pupil count under section 
21.25 	126C.05, subdivision 1, paragraph (d), to meet the needs of three- and four-year-olds in the 
21.26 	district. A school district may not use these funds on programs for three- and four-year-old 
21.27 	children while maintaining a fee-based full-day kindergarten program.

21.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
21.29 	and later.

21.30 	Sec. 42. Minnesota Statutes 2012, section 126C.13, is amended by adding a 
21.31 	subdivision to read:
22.1 		Subd. 3a.General education rate. The commissioner must establish the general 
22.2 	education rate by July 1 of each year for levies payable in the following year. The general 
22.3 	education rate must be a rate, rounded up to the nearest hundredth of a percent, that, when 
22.4 	applied to the adjusted net tax capacity for all districts, raises the amount specified in this 
22.5 	subdivision. The general education rate must be the rate that raises $19,520,000 for fiscal 
22.6 	year 2015; $26,219,000 for fiscal year 2016; and $30,004,000 for fiscal year 2017 and 
22.7 	later years. The general education rate may not be changed due to changes or corrections 
22.8 	made to a district's adjusted net tax capacity after the rate has been established. 

22.9 	Sec. 43. Minnesota Statutes 2012, section 126C.13, is amended by adding a 
22.10 	subdivision to read:
22.11 		Subd. 3b.General education levy. To obtain general education revenue, a district 
22.12 	may levy an amount not to exceed the general education rate times the adjusted net tax 
22.13 	capacity of the district for the preceding year. If the amount of the general education 
22.14 	levy would exceed the general education revenue, the general education levy must be 
22.15 	determined according to subdivision 3c.

22.16 	Sec. 44. Minnesota Statutes 2012, section 126C.13, is amended by adding a 
22.17 	subdivision to read:
22.18 		Subd. 3c.General education levy; districts off the formula. (a) If the sum of the 
22.19 	amount of the general education levy and equity levy for a district exceeds the district's 
22.20 	general education revenue, the amount of the general education levy must be limited to 
22.21 	the following:
22.22 	(1) the district's general education revenue minus its equity levy; minus 
22.23 	(2) payments made for the same school year according to section 126C.21, 
22.24 	subdivision 3. 
22.25 	(b) A levy made according to this subdivision shall also be construed to be the levy 
22.26 	made according to subdivision 3b.

22.27 	Sec. 45. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
22.28 		Subd. 4.General education aid. (a) For fiscal years 2007 2013 and later 2014 only, 
22.29 	a district's general education aid is the sum of the following amounts:
22.30 	(1) general education revenue, excluding equity revenue, total operating capital 
22.31 	revenue, alternative teacher compensation revenue, and transition revenue;
22.32 	(2) operating capital aid under section 126C.10, subdivision 13b;
22.33 	(3) equity aid under section 126C.10, subdivision 30;
23.1 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
23.2 	(5) transition aid under section 126C.10, subdivision 33;
23.3 	(6) shared time aid under section 126C.01, subdivision 7;
23.4 	(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
23.5 	(8) online learning aid according to section 124D.096.
23.6 	(b) For fiscal year 2015 and later, a district's general education aid equals:
23.7 	(1) general education revenue, excluding equity revenue and transition revenue, 
23.8 	minus the general education levy, multiplied times the ratio of the actual amount of general 
23.9 	education levied to the permitted general education levy; plus
23.10 	(2) equity aid under section 126C.10, subdivision 30; plus
23.11 	(3) transition aid under section 126C.10, subdivision 33; plus
23.12 	(4) shared time aid under section 126C.10, subdivision 7; plus
23.13 	(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
23.14 	(6) online learning aid under section 124D.096.

23.15 	Sec. 46. Minnesota Statutes 2012, section 126C.13, subdivision 5, is amended to read:
23.16 		Subd. 5.Uses of revenue. Except as provided in sections 126C.10, subdivision
23.17 	 subdivisions 2g and  14; 126C.12; and 126C.15, general education revenue may be used 
23.18 	during the regular school year and the summer for general and special school purposes.

23.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
23.20 	and later.

23.21 	Sec. 47. Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:
23.22 		Subdivision 1.Use of revenue. The basic skills revenue under section 126C.10, 
23.23 	subdivision 4, must be reserved and used to meet the educational needs of pupils who 
23.24 	enroll under-prepared to learn and whose progress toward meeting state or local content 
23.25 	or performance standards is below the level that is appropriate for learners of their age. 
23.26 	Basic skills revenue may also be used for programs designed to prepare children and their 
23.27 	families for kindergarten, provided such programming is cost-effective, research-based, 
23.28 	and includes an evaluation component to measure, record, and publicly report its level of 
23.29 	effectiveness. Any of the following may be provided to meet these learners' needs:
23.30 	(1) direct instructional services under the assurance of mastery program according 
23.31 	to section 124D.66;
23.32 	(2) remedial instruction in reading, language arts, mathematics, other content areas, 
23.33 	or study skills to improve the achievement level of these learners;
24.1 	(3) additional teachers and teacher aides to provide more individualized instruction 
24.2 	to these learners through individual tutoring, lower instructor-to-learner ratios, or team 
24.3 	teaching;
24.4 	(4) a longer school day or week during the regular school year or through a summer 
24.5 	program that may be offered directly by the site or under a performance-based contract 
24.6 	with a community-based organization;
24.7 	(5) comprehensive and ongoing staff development consistent with district and site 
24.8 	plans according to section 122A.60, for teachers, teacher aides, principals, and other 
24.9 	personnel to improve their ability to identify the needs of these learners and provide 
24.10 	appropriate remediation, intervention, accommodations, or modifications;
24.11 	(6) instructional materials, digital learning, and technology appropriate for meeting 
24.12 	the individual needs of these learners;
24.13 	(7) programs to reduce truancy, encourage completion of high school, enhance 
24.14 	self-concept, provide health services, provide nutrition services, provide a safe and secure 
24.15 	learning environment, provide coordination for pupils receiving services from other 
24.16 	governmental agencies, provide psychological services to determine the level of social, 
24.17 	emotional, cognitive, and intellectual development, and provide counseling services, 
24.18 	guidance services, and social work services;
24.19 	(8) bilingual programs, bicultural programs, and programs for English learners;
24.20 	(9) all day kindergarten;
24.21 	(10) early education programs, parent-training programs, school readiness programs, 
24.22 	kindergarten programs for four-year-olds, and other outreach efforts designed to prepare 
24.23 	children for kindergarten;
24.24 	(11) extended school day and extended school year programs; and
24.25 	(11) (12) substantial parent involvement in developing and implementing remedial 
24.26 	education or intervention plans for a learner, including learning contracts between the 
24.27 	school, the learner, and the parent that establish achievement goals and responsibilities of 
24.28 	the learner and the learner's parent or guardian.

24.29 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
24.30 	and later.

24.31 	Sec. 48. Minnesota Statutes 2012, section 126C.17, is amended to read:
24.32 	126C.17 REFERENDUM REVENUE.
24.33 		Subdivision 1.Referendum allowance. (a) For fiscal year 2003 and later, a district's 
24.34 	initial referendum revenue allowance equals the sum of the allowance under section 
25.1 	126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil 
25.2 	unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later, 
25.3 	plus the referendum conversion allowance approved under subdivision 13, minus $415. 
25.4 	For districts with more than one referendum authority, the reduction must be computed 
25.5 	separately for each authority. The reduction must be applied first to the referendum 
25.6 	conversion allowance and next to the authority with the earliest expiration date. A 
25.7 	district's initial referendum revenue allowance may not be less than zero.
25.8 	(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial 
25.9 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
25.10 	authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for 
25.11 	fiscal year 2003 and later.
25.12 	(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals 
25.13 	the sum of:
25.14 	(1) the product of (i) the ratio of the resident marginal cost pupil units the district 
25.15 	would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05, 
25.16 	to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial 
25.17 	referendum allowance plus any additional allowance per resident marginal cost pupil unit 
25.18 	authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal 
25.19 	year 2003 and later, plus
25.20 	(2) any additional allowance per resident marginal cost pupil unit authorized under 
25.21 	subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
25.22 	(a) A district's initial referendum allowance for fiscal year 2015 equals the result of 
25.23 	the following calculations:
25.24 	(1) multiply the referendum allowance the district would have received for fiscal 
25.25 	year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on 
25.26 	elections held before July 1, 2013, by the resident marginal cost pupil units the district 
25.27 	would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
25.28 	(2) add to the result of clause (1) the adjustment the district would have received 
25.29 	under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and 
25.30 	(c), based on elections held before July 1, 2013;
25.31 	(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal 
25.32 	year 2015; and
25.33 	(4) if the result of clause (3) is less than zero, set the allowance to zero.
25.34 	(b) A district's referendum allowance equals the sum of the district's initial 
25.35 	referendum allowance for fiscal year 2015, plus any additional referendum allowance per 
25.36 	adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal 
26.1 	year 2016 or later. For a district with more than one referendum allowance for fiscal year 
26.2 	2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under 
26.3 	paragraph (a) must be divided into components such that the same percentage of the 
26.4 	district's allowance expires at the same time as the old allowances would have expired 
26.5 	under Minnesota Statutes 2012, section 126C.17.
26.6 		Subd. 2.Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal 
26.7 	year 2007 2015 and later, a district's referendum allowance must not exceed the greater of:
26.8 	(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177 
26.9 	times the annual inflationary increase as calculated under paragraph (b) plus (ii) its 
26.10 	referendum conversion allowance for fiscal year 2003, minus (iii) $215;
26.11 	(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the 
26.12 	annual inflationary increase as calculated under paragraph (b); or times the greatest of:
26.13 	(1) $1,845;
26.14 	(2) the sum of the referendum revenue the district would have received for fiscal 
26.15 	year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on 
26.16 	elections held before July 1, 2013, and the adjustment the district would have received 
26.17 	under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and 
26.18 	(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil 
26.19 	units for fiscal year 2015; or
26.20 	(3) the product of the referendum allowance limit the district would have received 
26.21 	for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and 
26.22 	the resident marginal cost pupil units the district would have received for fiscal year 2015 
26.23 	under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the 
26.24 	district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 
26.25 	7, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by 
26.26 	the district's adjusted pupil units for fiscal year 2015; or
26.27 	(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum 
26.28 	revenue authority for each reorganizing district in the year preceding reorganization divided 
26.29 	by its resident marginal cost adjusted pupil units for the year preceding reorganization.
26.30 	(b) For purposes of this subdivision, for fiscal year 2005 2016 and later, "inflationary 
26.31 	increase" means one plus the percentage change in the Consumer Price Index for urban 
26.32 	consumers, as prepared by the United States Bureau of Labor Standards, for the current 
26.33 	fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016 and later, for purposes 
26.34 	of paragraph (a), clause (1) (3), the inflationary increase equals the inflationary increase 
26.35 	for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance 
26.36 	for that year compared with the formula allowance for fiscal year 2008 2015.
27.1 		Subd. 3.Sparsity exception. A district that qualifies for sparsity revenue under 
27.2 	section 126C.10 is not subject to a referendum allowance limit.
27.3 		Subd. 4.Total referendum revenue. The total referendum revenue for each district 
27.4 	equals the district's referendum allowance times the resident marginal cost adjusted pupil 
27.5 	units for the school year.
27.6 		Subd. 5.Referendum equalization revenue. (a) For fiscal year 2003 and later,
27.7 	 A district's referendum equalization revenue equals the sum of the first tier referendum 
27.8 	equalization revenue and the second tier referendum equalization revenue.
27.9 	(b) A district's first tier referendum equalization revenue equals the district's first 
27.10 	tier referendum equalization allowance times the district's resident marginal cost adjusted
27.11 	 pupil units for that year.
27.12 	(c) For fiscal year 2006, a district's first tier referendum equalization allowance 
27.13 	equals the lesser of the district's referendum allowance under subdivision 1 or $500. For 
27.14 	fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser 
27.15 	of the district's referendum allowance under subdivision 1 or $600.
27.16 	For fiscal year 2008 and later, A district's first tier referendum equalization allowance 
27.17 	equals the lesser of the district's referendum allowance under subdivision 1 or $700$775.
27.18 	(d) A district's second tier referendum equalization revenue equals the district's 
27.19 	second tier referendum equalization allowance times the district's resident marginal cost
27.20 	 adjusted pupil units for that year.
27.21 	(e) For fiscal year 2006, a district's second tier referendum equalization allowance 
27.22 	equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent 
27.23 	of the formula allowance, minus the district's first tier referendum equalization allowance. 
27.24 	For fiscal year 2007 and later, A district's second tier referendum equalization allowance 
27.25 	equals the lesser of the district's referendum allowance under subdivision 1 or 26 25 percent 
27.26 	of the formula allowance, minus the district's first tier referendum equalization allowance.
27.27 	(f) Notwithstanding paragraph (e), the second tier referendum allowance for a 
27.28 	district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or 
27.29 	elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's 
27.30 	referendum allowance under subdivision 1 minus the district's first tier referendum 
27.31 	equalization allowance.
27.32 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later, 
27.33 	a district's referendum equalization levy equals the sum of the first tier referendum 
27.34 	equalization levy and the second tier referendum equalization levy.
28.1 	(b) A district's first tier referendum equalization levy equals the district's first tier 
28.2 	referendum equalization revenue times the lesser of one or the ratio of the district's 
28.3 	referendum market value per resident marginal cost pupil unit to $476,000 $538,200.
28.4 	(c) A district's second tier referendum equalization levy equals the district's second 
28.5 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
28.6 	referendum market value per resident marginal cost pupil unit to $270,000 $259,415.
28.7 		Subd. 7.Referendum equalization aid. (a) A district's referendum equalization aid 
28.8 	equals the difference between its referendum equalization revenue and levy.
28.9 	(b) If a district's actual levy for first or second tier referendum equalization revenue 
28.10 	is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
28.11 	(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, 
28.12 	where the referendum equalization aid under paragraph (a) exceeds 90 percent of the 
28.13 	referendum revenue, must not exceed 26 25 percent of the formula allowance times the 
28.14 	district's resident marginal cost adjusted pupil units. A district's referendum levy is 
28.15 	increased by the amount of any reduction in referendum aid under this paragraph.
28.16 		Subd. 7a.Referendum tax base replacement aid. For each school district that 
28.17 	had a referendum allowance for fiscal year 2002 exceeding $415, for each separately 
28.18 	authorized referendum levy, the commissioner of revenue, in consultation with the 
28.19 	commissioner of education, shall certify the amount of the referendum levy in taxes 
28.20 	payable year 2001 attributable to the portion of the referendum allowance exceeding $415 
28.21 	levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section 
28.22 	273.13, excluding the portion of the tax paid by the portion of class 2a property consisting 
28.23 	of the house, garage, and surrounding one acre of land. The resulting amount must be 
28.24 	used to reduce the district's referendum levy amount otherwise determined, and must be 
28.25 	paid to the district each year that the referendum authority remains in effect, is renewed, 
28.26 	or new referendum authority is approved. The aid payable under this subdivision must 
28.27 	be subtracted from the district's referendum equalization aid under subdivision 7. The 
28.28 	referendum equalization aid after the subtraction must not be less than zero.
28.29 		Subd. 7b.Referendum aid guarantee. (a) Notwithstanding subdivision 7, a 
28.30 	district's referendum equalization aid for fiscal year 2015 must not be less than the sum 
28.31 	of the referendum equalization aid the district would have received for fiscal year 2015 
28.32 	under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the 
28.33 	district would have received under Minnesota Statutes 2012, section 127A.47, subdivision 
28.34 	7, paragraphs (a), (b), and (c).
28.35 	(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016 
28.36 	and later, for a district qualifying for additional aid under paragraph (a) for fiscal year 
29.1 	2015, must not be less than the product of (1) the district's referendum equalization aid 
29.2 	for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum 
29.3 	revenue for that school year to the district's referendum revenue for fiscal year 2015, times 
29.4 	(3) the lesser of one or the ratio of the district's referendum market value used for fiscal 
29.5 	year 2015 referendum equalization calculations to the district's referendum market value 
29.6 	used for that year's referendum equalization calculations.
29.7 		Subd. 8.Unequalized referendum levy. Each year, a district may levy an amount 
29.8 	equal to the difference between its total referendum revenue according to subdivision 4 
29.9 	and its referendum equalization revenue according to subdivision 5.
29.10 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
29.11 	subdivision 1, may be increased in the amount approved by the voters of the district 
29.12 	at a referendum called for the purpose. The referendum may be called by the board. 
29.13 	The referendum must be conducted one or two calendar years before the increased levy 
29.14 	authority, if approved, first becomes payable. Only one election to approve an increase 
29.15 	may be held in a calendar year. Unless the referendum is conducted by mail under 
29.16 	subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 
29.17 	first Monday in November. The ballot must state the maximum amount of the increased 
29.18 	revenue per resident marginal cost adjusted pupil unit. The ballot may state a schedule, 
29.19 	determined by the board, of increased revenue per resident marginal cost adjusted pupil 
29.20 	unit that differs from year to year over the number of years for which the increased revenue 
29.21 	is authorized or may state that the amount shall increase annually by the rate of inflation. 
29.22 	For this purpose, the rate of inflation shall be the annual inflationary increase calculated 
29.23 	under subdivision 2, paragraph (b). The ballot may state that existing referendum levy 
29.24 	authority is expiring. In this case, the ballot may also compare the proposed levy authority 
29.25 	to the existing expiring levy authority, and express the proposed increase as the amount, if 
29.26 	any, over the expiring referendum levy authority. The ballot must designate the specific 
29.27 	number of years, not to exceed ten, for which the referendum authorization applies. The 
29.28 	ballot, including a ballot on the question to revoke or reduce the increased revenue amount 
29.29 	under paragraph (c), must abbreviate the term "per resident marginal cost adjusted pupil 
29.30 	unit" as "per pupil." The notice required under section 275.60 may be modified to read, in 
29.31 	cases of renewing existing levies at the same amount per pupil as in the previous year:
29.32 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
29.33 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
29.34 	SCHEDULED TO EXPIRE."
29.35 	The ballot may contain a textual portion with the information required in this 
29.36 	subdivision and a question stating substantially the following:
30.1 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
30.2 	School District No. .., be approved?"
30.3 	If approved, an amount equal to the approved revenue per resident marginal cost
30.4 	 adjusted pupil unit times the resident marginal cost adjusted pupil units for the school 
30.5 	year beginning in the year after the levy is certified shall be authorized for certification 
30.6 	for the number of years approved, if applicable, or until revoked or reduced by the voters 
30.7 	of the district at a subsequent referendum.
30.8 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
30.9 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
30.10 	and the proposed revenue increase. The board need not mail more than one notice to any 
30.11 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
30.12 	those shown to be owners on the records of the county auditor or, in any county where 
30.13 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
30.14 	Every property owner whose name does not appear on the records of the county auditor 
30.15 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
30.16 	has requested in writing that the county auditor or county treasurer, as the case may be, 
30.17 	include the name on the records for this purpose. The notice must project the anticipated 
30.18 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
30.19 	homesteads, apartments, and commercial-industrial property within the school district.
30.20 	The notice for a referendum may state that an existing referendum levy is expiring 
30.21 	and project the anticipated amount of increase over the existing referendum levy in 
30.22 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
30.23 	homesteads, apartments, and commercial-industrial property within the district.
30.24 	The notice must include the following statement: "Passage of this referendum will 
30.25 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
30.26 	the notice may include the following statement: "Passage of this referendum extends an 
30.27 	existing operating referendum at the same amount per pupil as in the previous year."
30.28 	(c) A referendum on the question of revoking or reducing the increased revenue 
30.29 	amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 
30.30 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
30.31 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
30.32 	voters of the district pursuant to paragraph (a) must be available to the school district at 
30.33 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
30.34 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
30.35 	referendum revenue for any specific year and for years thereafter.
31.1 	(d) The approval of 50 percent plus one of those voting on the question is required to 
31.2 	pass a referendum authorized by this subdivision.
31.3 	(e) At least 15 days before the day of the referendum, the district must submit a 
31.4 	copy of the notice required under paragraph (b) to the commissioner and to the county 
31.5 	auditor of each county in which the district is located. Within 15 days after the results 
31.6 	of the referendum have been certified by the board, or in the case of a recount, the 
31.7 	certification of the results of the recount by the canvassing board, the district must notify 
31.8 	the commissioner of the results of the referendum.
31.9 		Subd. 9a.Board-approved extension. (a) Notwithstanding subdivision 9, a school 
31.10 	district with any of its area located within the seven-county metropolitan area that, in one 
31.11 	or more elections, has approved a referendum allowance of at least $400 for at least ten 
31.12 	years, may reauthorize any expiring referendum authority equal to a total of $400 or less 
31.13 	by a board vote. The board may reauthorize this authority for up to five years and may 
31.14 	subsequently reauthorize that authority in increments of five years.
31.15 	(b) Notwithstanding subdivision 9, a school district with any of its area located 
31.16 	within the seven-county metropolitan area that, in one or more elections, has approved 
31.17 	a referendum allowance of less than $400 for at least ten years, may reauthorize the 
31.18 	value of any expiring referendum authority by a board vote. The board may reauthorize 
31.19 	this authority for up to five years and may subsequently reauthorize that authority in 
31.20 	increments of five years.
31.21 	(c) Notwithstanding subdivision 9, a school district with none of its area located 
31.22 	within the seven-county metropolitan area with more than 2,000 pupils in adjusted average 
31.23 	daily membership that, in one or more elections, has approved a referendum allowance of 
31.24 	at least $200 for at least ten years, may reauthorize any expiring referendum authority equal 
31.25 	to a total of $200 or less by a board vote. The board may reauthorize this authority for up 
31.26 	to five years and may subsequently reauthorize that authority in increments of five years.
31.27 	(d) Notwithstanding subdivision 9, a school district with none of its area located 
31.28 	within the seven-county metropolitan area with more than 2,000 pupils in adjusted average 
31.29 	daily membership that, in one or more elections, has approved a referendum allowance of 
31.30 	less than $200 for at least ten years, may reauthorize the value of any expiring referendum 
31.31 	authority by a board vote. The board may reauthorize this authority for up to five years 
31.32 	and may subsequently reauthorize that authority in increments of five years.
31.33 		Subd. 10.School referendum levy; market value. A school referendum levy must 
31.34 	be levied against the referendum market value of all taxable property as defined in section 
31.35 	126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this 
31.36 	subdivision must be certified separately to the county auditor under section 275.07.
32.1 		Subd. 11.Referendum date. (a) Except for a referendum held under paragraph (b), 
32.2 	any referendum under this section held on a day other than the first Tuesday after the first 
32.3 	Monday in November must be conducted by mail in accordance with section 204B.46. 
32.4 	Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum 
32.5 	conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), 
32.6 	must be prepared and delivered by first-class mail at least 20 days before the referendum.
32.7 	(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner 
32.8 	may grant authority to a district to hold a referendum on a different day if the district is in 
32.9 	statutory operating debt and has an approved plan or has received an extension from the 
32.10 	department to file a plan to eliminate the statutory operating debt.
32.11 	(c) The commissioner must approve, deny, or modify each district's request for a 
32.12 	referendum levy on a different day within 60 days of receiving the request from a district.
32.13 		Subd. 13.Referendum conversion allowance. A school district that received 
32.14 	supplemental or transition revenue in fiscal year 2002 may convert its supplemental 
32.15 	revenue conversion allowance and transition revenue conversion allowance to additional 
32.16 	referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority 
32.17 	of the school board must approve the conversion at a public meeting before November 1, 
32.18 	2001. For a district with other referendum authority, the referendum conversion allowance 
32.19 	approved by the board continues until the portion of the district's other referendum 
32.20 	authority with the earliest expiration date after June 30, 2006, expires. For a district 
32.21 	with no other referendum authority, the referendum conversion allowance approved by 
32.22 	the board continues until June 30, 2012.

32.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
32.24 	and later.

32.25 	Sec. 49. [126C.195] COMPENSATORY SUPPLEMENTAL FORMULA AID.
32.26 	A district that has an adjusted pupil unit count that is in the top 20 largest adjusted 
32.27 	pupil unit counts in the prior school year is eligible for the greater of zero or $1,400 times 
32.28 	the sum of the district's pupils eligible for free lunch and one-half of the district's pupils who 
32.29 	are eligible for reduced lunch in the prior school year, minus the amount of compensatory 
32.30 	education revenue received by the district under section 126C.10, subdivision 3, times .35.

32.31 	Sec. 50. Minnesota Statutes 2012, section 126C.20, is amended to read:
32.32 	126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
33.1 	There is annually appropriated from the general fund to the department the 
33.2 	amount necessary for general education aid under section 126C.13, the early graduation 
33.3 	achievement scholarship program under section 120B.08, and the early graduation 
33.4 	military service award program under section 120B.09. This amount must be reduced by 
33.5 	the amount of any money specifically appropriated for the same purpose in any year 
33.6 	from any state fund.

33.7 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2014 and 
33.8 	later.

33.9 	Sec. 51. Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:
33.10 		Subdivision 1.To lease building or land. (a) When an independent or a special 
33.11 	school district or a group of independent or special school districts finds it economically 
33.12 	advantageous to rent or lease a building or land for any instructional purposes or for 
33.13 	school storage or furniture repair, and it determines that the operating capital revenue 
33.14 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
33.15 	apply to the commissioner for permission to make an additional capital expenditure levy 
33.16 	for this purpose. An application for permission to levy under this subdivision must contain 
33.17 	financial justification for the proposed levy, the terms and conditions of the proposed 
33.18 	lease, and a description of the space to be leased and its proposed use.
33.19 	(b) The criteria for approval of applications to levy under this subdivision must 
33.20 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
33.21 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
33.22 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
33.23 	the proposed lease to the space needs and the financial condition of the district. The 
33.24 	commissioner must not authorize a levy under this subdivision in an amount greater than 
33.25 	the cost to the district of renting or leasing a building or land for approved purposes. 
33.26 	The proceeds of this levy must not be used for custodial or other maintenance services. 
33.27 	A district may not levy under this subdivision for the purpose of leasing or renting a 
33.28 	district-owned building or site to itself.
33.29 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
33.30 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
33.31 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
33.32 	building addition or additions used primarily for regular kindergarten, elementary, or 
33.33 	secondary instruction that contains more than 20 percent of the square footage of the 
33.34 	previously existing building.
34.1 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
34.2 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
34.3 	is needed by the district to make payments required by a lease purchase agreement, 
34.4 	installment purchase agreement, or other deferred payments agreement authorized by law, 
34.5 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
34.6 	the commissioner under this paragraph may be in the amount needed by the district to 
34.7 	make payments required by a lease purchase agreement, installment purchase agreement, 
34.8 	or other deferred payments agreement authorized by law, provided that any agreement 
34.9 	include a provision giving the school districts the right to terminate the agreement 
34.10 	annually without penalty.
34.11 	(e) The total levy under this subdivision for a district for any year must not exceed 
34.12 	$150 $162 times the resident adjusted pupil units for the fiscal year to which the levy 
34.13 	is attributable.
34.14 	(f) For agreements for which a review and comment have been submitted to the 
34.15 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
34.16 	this subdivision excludes expenditures on stadiums.
34.17 	(g) The commissioner of education may authorize a school district to exceed the 
34.18 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
34.19 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
34.20 	for not more than five years if the district meets the following criteria:
34.21 	(1) the school district has been experiencing pupil enrollment growth in the 
34.22 	preceding five years;
34.23 	(2) the purpose of the increased levy is in the long-term public interest;
34.24 	(3) the purpose of the increased levy promotes colocation of government services; and
34.25 	(4) the purpose of the increased levy is in the long-term interest of the district by 
34.26 	avoiding over construction of school facilities.
34.27 	(h) A school district that is a member of an intermediate school district may include 
34.28 	in its authority under this section the costs associated with leases of administrative and 
34.29 	classroom space for intermediate school district programs. This authority must not 
34.30 	exceed $43 $46 times the adjusted marginal cost pupil units of the member districts. This 
34.31 	authority is in addition to any other authority authorized under this section.
34.32 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
34.33 	2012 to 2023, a district that is a member of the "Technology and Information Education 
34.34 	Systems" data processing joint board, that finds it economically advantageous to enter into 
34.35 	a lease agreement to finance improvements to a building and land for a group of school 
34.36 	districts or special school districts for staff development purposes, may levy for its portion 
35.1 	of lease costs attributed to the district within the total levy limit in paragraph (e). The total 
35.2 	levy authority under this paragraph shall not exceed $632,000.
35.3 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
35.4 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
35.5 	the commissioner that the lease cost for the administrative space is no greater than the 
35.6 	lease cost for instructional space that the district would otherwise lease. The commissioner 
35.7 	must deny this levy authority unless the district passes a resolution stating its intent to 
35.8 	lease instructional space under this section if the commissioner does not grant authority 
35.9 	under this paragraph. The resolution must also certify that the lease cost for administrative 
35.10 	space under this paragraph is no greater than the lease cost for the district's proposed 
35.11 	instructional lease.

35.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
35.13 	and later.

35.14 	Sec. 52. Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:
35.15 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval 
35.16 	by, the commissioner in accordance with the procedures and limits in subdivision 1, 
35.17 	paragraphs (a) and (b), a district, as defined in this subdivision, may:
35.18 	(1) purchase real or personal property under an installment contract or may lease 
35.19 	real or personal property with an option to purchase under a lease purchase agreement, by 
35.20 	which installment contract or lease purchase agreement title is kept by the seller or vendor 
35.21 	or assigned to a third party as security for the purchase price, including interest, if any; and
35.22 	(2) annually levy the amounts necessary to pay the district's obligations under the 
35.23 	installment contract or lease purchase agreement.
35.24 	(b) The obligation created by the installment contract or the lease purchase 
35.25 	agreement must not be included in the calculation of net debt for purposes of section 
35.26 	475.53, and does not constitute debt under other law. An election is not required in 
35.27 	connection with the execution of the installment contract or the lease purchase agreement.
35.28 	(c) The proceeds of the levy authorized by this subdivision must not be used to 
35.29 	acquire a facility to be primarily used for athletic or school administration purposes.
35.30 	(d) For the purposes of this subdivision, "district" means:
35.31 	(1) a school district which is eligible for revenue under section 124D.86, subdivision 
35.32 	3, clause (1), (2), or (3), and whose Special School District No. 1, Minneapolis, 
35.33 	Independent School District No. 625, St. Paul, Independent School District No. 709, 
35.34 	Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
35.35 	 plan has been determined by the commissioner to be in compliance with Department of 
36.1 	Education rules relating to equality of educational opportunity and school desegregation 
36.2 	and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4) 
36.3 	or (5), where the acquisition of property under this subdivision is determined by the 
36.4 	commissioner to contribute to the implementation of the desegregation plan; or
36.5 	(2) a school district that participates in a joint program for interdistrict desegregation 
36.6 	with a district defined in clause (1) other districts eligible for revenue under section 
36.7 	124D.862  if the facility acquired under this subdivision is to be primarily used for the a
36.8 	 joint program for interdistrict desegregation and the commissioner determines that the 
36.9 	joint programs are being undertaken to implement the districts' desegregation plan.
36.10 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
36.11 	or rent a district-owned building to itself does not apply to levies otherwise authorized 
36.12 	by this subdivision.
36.13 	(f) For the purposes of this subdivision, any references in subdivision 1 to building 
36.14 	or land shall include personal property.

36.15 	Sec. 53. Minnesota Statutes 2012, section 126C.44, is amended to read:
36.16 	126C.44 SAFE SCHOOLS SUPPLEMENTAL LEVY; INTERMEDIATE 
36.17 	SCHOOL DISTRICTS.
36.18 	(a) Each district may make a levy on all taxable property located within the district 
36.19 	for the purposes specified in this section. The maximum amount which may be levied 
36.20 	for all costs under this section shall be equal to $30 multiplied by the district's adjusted 
36.21 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 
36.22 	used for directly funding the following purposes or for reimbursing the cities and counties 
36.23 	who contract with the district for the following purposes: (1) to pay the costs incurred for 
36.24 	the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
36.25 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
36.26 	as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools; 
36.27 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
36.28 	schools; (4) to pay the costs for security in the district's schools and on school property; (5) 
36.29 	to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 
36.30 	opt-in suicide prevention tools, and violence prevention measures taken by the school 
36.31 	district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 
36.32 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
36.33 	dependency counselors to help provide early responses to problems. For expenditures 
36.34 	under clause (1), the district must initially attempt to contract for services to be provided 
36.35 	by peace officers or sheriffs with the police department of each city or the sheriff's 
37.1 	department of the county within the district containing the school receiving the services. If 
37.2 	a local police department or a county sheriff's department does not wish to provide the 
37.3 	necessary services, the district may contract for these services with any other police or 
37.4 	sheriff's department located entirely or partially within the school district's boundaries.
37.5 	(b) A school district that is a member of an intermediate school district may include 
37.6 	in its authority under this section make a levy on all taxable property located within the 
37.7 	district for the costs associated with safe schools activities authorized under paragraph 
37.8 	(a) for intermediate school district programs section 126C.10, subdivision 2g, at an 
37.9 	intermediate school district. This authority must not exceed $10 $11 times the adjusted 
37.10 	marginal cost pupil units of the member districts. This authority is in addition to any other 
37.11 	authority authorized under this section. Revenue raised under this paragraph section  must 
37.12 	be transferred to the intermediate school district.

37.13 	Sec. 54. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
37.14 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
37.15 	special education aid for districts must be adjusted for each pupil attending a nonresident 
37.16 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
37.17 	adjustments must be made according to this subdivision.
37.18 	(a) General education aid paid to a resident district must be reduced by an amount 
37.19 	equal to the referendum equalization aid attributable to the pupil in the resident district.
37.20 	(b) General education aid paid to a district serving a pupil in programs listed in this 
37.21 	subdivision must be increased by an amount equal to the greater of (1) the referendum 
37.22 	equalization aid attributable to the pupil in the nonresident district; or (2) the product of 
37.23 	the district's open enrollment concentration index, the maximum amount of referendum 
37.24 	revenue in the first tier, and the district's net open enrollment pupil units for that year. A 
37.25 	district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 
37.26 	lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 
37.27 	served to its resident pupil units for that year and 0.2. This clause does not apply to a 
37.28 	school district where more than 50 percent of the open enrollment students are enrolled 
37.29 	solely in online learning courses.
37.30 	(c) If the amount of the reduction to be made from the general education aid of the 
37.31 	resident district is greater than the amount of general education aid otherwise due the 
37.32 	district, the excess reduction must be made from other state aids due the district.
37.33 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
37.34 	area learning center, operated according to paragraph (f), providing special instruction and 
37.35 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
38.1 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
38.2 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
38.3 	including a proportionate amount for special transportation and unreimbursed building 
38.4 	lease and debt service costs for facilities used primarily for special education, minus (2) 
38.5 	if the pupil receives special instruction and services outside the regular classroom for 
38.6 	more than 60 percent of the school day, the amount of general education revenue and 
38.7 	referendum aid attributable to that pupil for the portion of time the pupil receives special 
38.8 	instruction and services outside of the regular classroom, excluding portions attributable to 
38.9 	district and school administration, district support services, operations and maintenance, 
38.10 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
38.11 	to that pupil, that is received by the district providing special instruction and services. 
38.12 	For purposes of this paragraph, general education revenue and referendum equalization 
38.13 	aid attributable to a pupil must be calculated using the serving district's average general 
38.14 	education revenue and referendum equalization aid per adjusted pupil unit.
38.15 	(e) For fiscal year 2007 and later, special education aid paid to a resident district must 
38.16 	be reduced by an amount equal to (b) For purposes of this subdivision, the "unreimbursed 
38.17 	cost of providing special education and services" means the difference between: (1) the 
38.18 	actual cost of providing special instruction and services, including special transportation 
38.19 	and unreimbursed building lease and debt service costs for facilities used primarily for 
38.20 	special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as 
38.21 	defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus 
38.22 	(2) if the pupil receives special instruction and services outside the regular classroom for 
38.23 	more than 60 percent of the school day, the amount of general education revenue and 
38.24 	referendum equalization aid attributable to that pupil for the portion of time the pupil 
38.25 	receives special instruction and services outside of the regular classroom, excluding 
38.26 	portions attributable to district and school administration, district support services, 
38.27 	operations and maintenance, capital expenditures, and pupil transportation, minus (3) 
38.28 	special education aid  under section 125A.76 attributable to that pupil, that is received by 
38.29 	the district providing special instruction and services. For purposes of this paragraph, 
38.30 	general education revenue and referendum equalization aid attributable to a pupil must be 
38.31 	calculated using the serving district's average general education revenue and referendum 
38.32 	equalization aid per adjusted pupil unit. 
38.33 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
38.34 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
38.35 	special education and services.
39.1 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
39.2 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
39.3 	education and services provided to students at an intermediate district, cooperative, or 
39.4 	charter school where the percent of students eligible for special education services is at 
39.5 	least 70 percent of the charter school's total enrollment.
39.6 	(e) Special education aid paid to the district or cooperative providing special 
39.7 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
39.8 	must be increased by the amount of the reduction in the aid paid to the resident district
39.9 	 under paragraphs (c) and (d). If the resident district's special education aid is insufficient 
39.10 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
39.11 	due to the district.
39.12 	(f) An area learning center operated by a service cooperative, intermediate district, 
39.13 	education district, or a joint powers cooperative may elect through the action of the 
39.14 	constituent boards to charge the resident district tuition for pupils rather than to have the 
39.15 	general education revenue paid to a fiscal agent school district. Except as provided in 
39.16 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 
39.17 	of the district average general education revenue per pupil unit minus an amount equal 
39.18 	to the product of the formula allowance according to section 126C.10, subdivision 2, 
39.19 	times .0485 .0465, calculated without compensatory revenue and transportation sparsity 
39.20 	revenue, times the number of pupil units for pupils attending the area learning center.

39.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
39.22 	and later.

39.23 	Sec. 55. Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:
39.24 		Subd. 8.Charter schools. (a) The general education aid for districts must be 
39.25 	adjusted for each pupil attending a charter school under section 124D.10. The adjustments 
39.26 	must be made according to this subdivision.
39.27 	(b) General education aid paid to a district in which a charter school not providing 
39.28 	transportation according to section 124D.10, subdivision 16, is located must be increased 
39.29 	by an amount equal to the sum of:
39.30 	(1) the product of: (i) the sum of an amount equal to the product of the formula 
39.31 	allowance according to section 126C.10, subdivision 2, times .0485 .0465, plus the 
39.32 	transportation sparsity allowance for the district; times (ii) the adjusted marginal cost
39.33 	 pupil units attributable to the pupil; plus
39.34 	(2) the product of $223 and the extended time marginal cost pupil units attributable 
39.35 	to the pupil.

40.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
40.2 	and later.

40.3 	Sec. 56. Minnesota Statutes 2012, section 127A.51, is amended to read:
40.4 	127A.51 STATEWIDE AVERAGE REVENUE.
40.5 	By October 1 of each year the commissioner must estimate the statewide average 
40.6 	adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted 
40.7 	general revenue among pupils and districts by computing the ratio of the 95th percentile 
40.8 	to the fifth percentile of adjusted general revenue. The commissioner must provide that 
40.9 	information to all districts.
40.10 	If the disparity in adjusted general revenue as measured by the ratio of the 95th 
40.11 	percentile to the fifth percentile increases in any year, the commissioner shall recommend 
40.12 	to the legislature options for change in the general education formula that will limit the 
40.13 	disparity in adjusted general revenue to no more than the disparity for the previous 
40.14 	school year. The commissioner must submit the recommended options to the education 
40.15 	committees of the legislature by January 15.
40.16 	For purposes of this section and section 126C.10, adjusted general revenue means:
40.17 	(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision 
40.18 	2; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue 
40.19 	under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and 
40.20 	equity revenue under section 126C.10, subdivisions 24a and 24b; and
40.21 	(2) for fiscal year 2003 and later, the sum of basic revenue under section 126C.10, 
40.22 	subdivision 2; referendum revenue under section 126C.17; and equity revenue under 
40.23 	section 126C.10, subdivisions 24a and 24b subdivision 24.

40.24 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
40.25 	and later.

40.26 	Sec. 57. Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:
40.27 		Subd. 3.No election. Subject to the provisions of subdivisions 7 to 10, the school 
40.28 	district may also by a two-thirds majority vote of all the members of its board of education 
40.29 	and without any election by the voters of the district, issue and sell in each calendar year 
40.30 	general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 
40.31 	net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 
40.32 	2003, an amount not to exceed $7,500,000, and for calendar years 2004 to 20162026, 
40.33 	an amount not to exceed $15,000,000; with an additional provision that any amount of 
41.1 	bonds so authorized for sale in a specific year and not sold can be carried forward and 
41.2 	sold in the year immediately following).

41.3 	EFFECTIVE DATE. This section is effective July 1, 2013.

41.4 	Sec. 58. Laws 2007, chapter 146, article 4, section 12, is amended to read:
41.5 	Sec. 12. BONDING AUTHORIZATION.
 41.6 	To provide funds for the acquisition or betterment of school facilities, Independent 
41.7 	School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 
41.8 	the board of directors issue general obligation bonds in one or more series for calendar 
41.9 	years 2008 through 2016 to 2026, as provided in this section. The aggregate principal 
41.10 	amount of any bonds issued under this section for each calendar year must not exceed 
41.11 	$15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 
41.12 	475.59. The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 
41.13 	475. The authority to issue bonds under this section is in addition to any bonding authority 
41.14 	authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 
41.15 	authority authorized under this section must be disregarded in calculating the bonding 
41.16 	limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 
41.17 	section 475.53, subdivision 4.

41.18 	EFFECTIVE DATE. This section is effective July 1, 2013.

41.19 	Sec. 59. SCHOOL DISTRICT LEVY ADJUSTMENTS.
 41.20 		Subdivision 1.Tax rate adjustment. The commissioner of education must adjust 
41.21 	each school district tax rate established under Minnesota Statutes, chapters 120B to 127A, 
41.22 	by multiplying the rate by the ratio of the statewide total tax capacity for assessment year 
41.23 	2012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or 
41.24 	a similarly styled bill passed in a special session, to the statewide total tax capacity for 
41.25 	assessment year 2012.
41.26 		Subd. 2.Equalizing factors. The commissioner of education must adjust each 
41.27 	school district equalizing factor established under Minnesota Statutes, chapters 120B to 
41.28 	127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for 
41.29 	assessment year 2012 as it existed prior to the passage of Regular Session 2013 House 
41.30 	File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax 
41.31 	capacity for assessment year 2012.

41.32 	Sec. 60. APPROPRIATIONS.
 42.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
42.2 	appropriated from the general fund to the Department of Education for the fiscal years 
42.3 	designated.
42.4 		Subd. 2.General education aid. For general education aid under Minnesota 
42.5 	Statutes, section 126C.13, subdivision 4:

42.6		$
	6,045,457,000
	.....
	2014
	
42.7		$
	6,351,602,000
	.....
	2015
	
42.8 	The 2014 appropriation includes $781,842,000 for 2013 and $5,263,615,000 for 
42.9 	2014.
42.10 	The 2015 appropriation includes $857,828,000 for 2014 and $5,493,774,000 for 
42.11 	2015.
42.12 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
42.13 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
42.14 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

42.15		$
	44,000
	.....
	2014
	
42.16		$
	48,000
	.....
	2015
	
42.17 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
42.18 	127A.49:

42.19		$
	2,722,000
	.....
	2014
	
42.20		$
	3,133,000
	.....
	2015
	
42.21 	The 2014 appropriation includes $301,000 for 2013 and $2,421,000 for 2014.
42.22 	The 2015 appropriation includes $410,000 for 2014 and $2,723,000 for 2015.
42.23 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
42.24 	Statutes, section 123A.485:

42.25		$
	468,000
	.....
	2014
	
42.26		$
	479,000
	.....
	2015
	
42.27 	The 2014 appropriation includes $40,000 for 2013 and $428,000 for 2014.
42.28 	The 2015 appropriation includes $72,000 for 2014 and $407,000 for 2015.
42.29 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
42.30 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

42.31		$
	15,376,000
	.....
	2014
	
42.32		$
	15,879,000
	.....
	2015
	
42.33 	The 2014 appropriation includes $2,099,000 for 2013 and $13,277,000 for 2014.
43.1 	The 2015 appropriation includes $2,251,000 for 2014 and $13,628,000 for 2015.
43.2 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
43.3 	under Minnesota Statutes, section 123B.92, subdivision 9:

43.4		$
	18,322,000
	.....
	2014
	
43.5		$
	18,607,000
	.....
	2015
	
43.6 	The 2014 appropriation includes $2,668,000 for 2013 and $15,654,000 for 2014.
43.7 	The 2015 appropriation includes $2,654,000 for 2014 and $15,953,000 for 2015.
43.8 		Subd. 8.One-room schoolhouse. For a grant to Independent School District No. 
43.9 	690, Warroad, to operate the Angle Inlet School:

43.10		$
	65,000
	.....
	2014
	
43.11		$
	65,000
	.....
	2015
	
43.12 		Subd. 9.Compensatory supplemental formula aid. For grants for compensatory 
43.13 	pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:

43.14		$
	6,278,000
	.....
	2014
	
43.15		$
	4,924,000
	.....
	2015
	
43.16 	The 2014 appropriation includes $2,109,000 for 2013 and $4,169,000 for 2014.
43.17 	The 2015 appropriation includes $706,000 for 2014 and $4,218,000 for 2015.
43.18 		Subd. 10.Compensatory revenue pilot project. For grants for participation in the 
43.19 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
43.20 	article 1, section 50, as amended by Laws 2007, chapter 146, article 1, section 21:

43.21		$
	 2,325,000
	2014
		
43.22		$
	 2,325,000
	2015
		
43.23 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
43.24 	No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School District 
43.25 	No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent School 
43.26 	District No. 279, Osseo; $160,000 in each year is for a grant to Independent School District 
43.27 	No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent School District 
43.28 	No. 535, Rochester; $65,000 in each year is for a grant to Independent School District No. 
43.29 	833, South Washington; and $150,000 in each year is for a grant to Independent School 
43.30 	District No. 241, Albert Lea. If a grant to a specific school district is not awarded, the 
43.31 	commissioner may increase the aid amounts to any of the remaining participating school 
43.32 	districts. This appropriation is part of the base budget for subsequent fiscal years.

43.33 	Sec. 61.  REPEALER.
 44.1 	(a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, are repealed for fiscal 
44.2 	year 2014 and later.
44.3 	(b) Minnesota Statutes 2012, sections 126C.10, subdivisions 13a, 13b, 25, 26, 28, 
44.4 	31a, 31b, 31c, 34, 35, and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and 
44.5 	5, are repealed for fiscal year 2015 and later.

44.6 	ARTICLE 2
44.7 	STUDENT ACCOUNTABILITY

44.8 	Section 1. Minnesota Statutes 2012, section 120B.02, is amended to read:
44.9 	120B.02 EDUCATIONAL EXPECTATIONS AND GRADUATION 
44.10 	REQUIREMENTS FOR MINNESOTA'S STUDENTS.
44.11 		Subdivision 1.Educational expectations. (a) The legislature is committed to 
44.12 	establishing rigorous academic standards for Minnesota's public school students. To 
44.13 	that end, the commissioner shall adopt in rule statewide academic standards. The 
44.14 	commissioner shall not prescribe in rule or otherwise the delivery system, classroom 
44.15 	assessments, or form of instruction that school sites must use. For purposes of this chapter, 
44.16 	a school site is a separate facility, or a separate program within a facility that a local school 
44.17 	board recognizes as a school site for funding purposes.
44.18 	(b) All commissioner actions regarding the rule must be premised on the following:
44.19 	(1) the rule is intended to raise academic expectations for students, teachers, and 
44.20 	schools;
44.21 	(2) any state action regarding the rule must evidence consideration of school district 
44.22 	autonomy; and
44.23 	(3) the Department of Education, with the assistance of school districts, must make 
44.24 	available information about all state initiatives related to the rule to students and parents, 
44.25 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
44.26 	readily understandable.
44.27 	(c) When fully implemented, the requirements for high school graduation in 
44.28 	Minnesota must require students to satisfactorily complete, as determined by the school 
44.29 	district, the course credit requirements under section 120B.024, all state academic 
44.30 	standards or local academic standards where state standards do not apply, and successfully 
44.31 	pass graduation examinations as required under section 120B.30.
44.32 	(d) (c) The commissioner shall periodically review and report on the state's 
44.33 	assessment process.
45.1 	(e) (d) School districts are not required to adopt specific provisions of the federal 
45.2 	School-to-Work programs.
45.3 		Subd. 2.Graduation requirements. To graduate from high school, students must 
45.4 	demonstrate to their enrolling school district or school their satisfactory completion of the 
45.5 	credit requirements under section 120B.024 and their attainment of academic standards 
45.6 	and career and college readiness benchmarks on a nationally normed college entrance 
45.7 	exam under section 120B.30. A school district must adopt graduation requirements that 
45.8 	meet or exceed state graduation requirements established in law or rule.

45.9 	EFFECTIVE DATE. This section is effective August 1, 2013, and applies to 
45.10 	students entering grade 8 in the 2013-2014 school year and later.

45.11 	Sec. 2. Minnesota Statutes 2012, section 120B.125, is amended to read:
45.12 	120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION 
45.13 	TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY 
45.14 	CAREER TRACKING PROHIBITED.
45.15 	(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14, 
45.16 	120B.15, 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections, 
45.17 	school districts are strongly encouraged to, beginning in the 2013-2014 school year, must
45.18 	 assist all students by no later than grade 9 to explore their college and career interests and 
45.19 	aspirations and develop a plan for a smooth and successful transition to postsecondary 
45.20 	education or employment. All students' plans must be designed to:
45.21 	(1) provide a comprehensive academic plan for completing a college and 
45.22 	career-ready curriculum premised on meeting state and local academic standards and 
45.23 	developing 21st century skills such as team work, collaboration, and good work habits;
45.24 	(2) emphasize academic rigor and high expectations;
45.25 	(3) help students identify personal learning styles that may affect their postsecondary 
45.26 	education and employment choices;
45.27 	(4) help students succeed at gaining gain access to postsecondary education and 
45.28 	career options;
45.29 	(5) integrate strong academic content into career-focused courses and integrate 
45.30 	relevant career-focused courses into strong academic content;
45.31 	(6) help students and families identify and gain access to appropriate counseling 
45.32 	and other supports and assistance that enable students to complete required coursework, 
45.33 	prepare for postsecondary education and careers, and obtain information about 
45.34 	postsecondary education costs and eligibility for financial aid and scholarship;
46.1 	(7) help students and families identify collaborative partnerships of kindergarten 
46.2 	through grade 12 schools, postsecondary institutions, economic development agencies, and 
46.3 	employers that support students' transition to postsecondary education and employment 
46.4 	and provide students with experiential learning opportunities; and
46.5 	(8) be reviewed and revised at least annually by the student, the student's parent or 
46.6 	guardian, and the school or district to ensure that the student's course-taking schedule 
46.7 	keeps the student "on track" making adequate progress to meet state and local high school 
46.8 	graduation requirements and with a reasonable chance to succeed with employment or 
46.9 	postsecondary education without the need to first complete remedial course work.
46.10 	(b) A school district may develop grade-level curricula or provide instruction that 
46.11 	introduces students to various careers, but must not require any curriculum, instruction, 
46.12 	or employment-related activity that obligates an elementary or secondary student to 
46.13 	involuntarily select a career, career interest, employment goals, or related job training.
46.14 	(c) School districts are encouraged to seek and use revenue and in-kind contributions 
46.15 	from nonstate sources and to seek administrative cost savings through innovative local 
46.16 	funding arrangements, such as the Collaboration Among Rochester Educators (CARE) 
46.17 	model for funding postsecondary enrollment options, among other sources, for purposes 
46.18 	of implementing this section.

46.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.20 	Sec. 3. Minnesota Statutes 2012, section 120B.128, is amended to read:
46.21 	120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM 
46.22 	(EPAS) PROGRAM.
46.23 	(a) School districts and charter schools may elect to participate in the Educational 
46.24 	Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a 
46.25 	longitudinal, systematic approach to student educational and career planning, assessment, 
46.26 	instructional support, and evaluation. The EPAS achievement tests include English, 
46.27 	reading, mathematics, science, and components on planning for high school and 
46.28 	postsecondary education, interest inventory, needs assessments, and student education 
46.29 	plans. These tests are linked to the ACT assessment for college admission and allow 
46.30 	students, parents, teachers, and schools to determine the student's college readiness before 
46.31 	grades 11 and 12.
46.32 	(b) The commissioner of education shall provide ACT Explore tests for students 
46.33 	in grade 8 and the ACT Plan test for students in grade 10 to assess individual student 
47.1 	academic strengths and weaknesses, academic achievement and progress, higher order 
47.2 	thinking skills, and college readiness.
47.3 	(c) Students enrolled in grade 8 through the 2012-2013 school year who have 
47.4 	not yet demonstrated proficiency on the Minnesota comprehensive assessments, the 
47.5 	graduation-required assessments for diploma, or the basic skills testing requirements 
47.6 	prior to high school graduation may satisfy state high school graduation requirements for 
47.7 	assessments in reading, mathematics, and writing by taking the WorkKeys job skills 
47.8 	assessment, a computer-adaptive college placement test, or the ACT assessment for 
47.9 	college admission.
47.10 	(d) The state shall pay the test costs for school districts and charter schools that 
47.11 	choose to participate in the EPAS program public school students to participate in the 
47.12 	assessments under this section. The commissioner shall establish an application procedure 
47.13 	and a process for state payment of costs.

47.14 	EFFECTIVE DATE. This section is effective the day following final enactment 
47.15 	and applies through the 2013-2014 school year.

47.16 	Sec. 4. Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:
47.17 		Subdivision 1.Statewide testing.  (a) The commissioner, with advice from experts 
47.18 	with appropriate technical qualifications and experience and stakeholders, consistent 
47.19 	with subdivision 1a, shall include in the comprehensive assessment system, for each 
47.20 	grade level to be tested, state-constructed tests developed from and as computer-adaptive 
47.21 	reading and mathematics assessments for students that are aligned with the state's required 
47.22 	academic standards under section 120B.021, include multiple choice questions, and be
47.23 	 are administered annually to all students in grades 3 through 8 7. State-developed high 
47.24 	school tests aligned with the state's required academic standards under section 120B.021 
47.25 	and administered to all high school students in a subject other than writing must include 
47.26 	multiple choice questions. The commissioner shall establish one or more months during 
47.27 	which schools shall administer the tests to students each school year. For students enrolled 
47.28 	in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading, 
47.29 	mathematics, and writing shall fulfill students' basic skills testing requirements for a passing 
47.30 	state notation. The passing scores of basic skills tests in reading and mathematics are the 
47.31 	equivalent of 75 percent correct for students entering grade 9 based on the first uniform test 
47.32 	administered in February 1998. Students who have not successfully passed a Minnesota 
47.33 	basic skills test by the end of the 2011-2012 school year must pass the graduation-required 
47.34 	assessments for diploma under paragraph (c), except that for the 2012-2013 and 2013-2014 
47.35 	school years only, these students may satisfy the state's graduation test requirement for 
48.1 	math by complying with paragraph (d), clauses (1) and (3) For students enrolled in grade 8 
48.2 	in the 2005-2006 through 2012-2013 school years, students' state graduation requirements 
48.3 	include the requirements under: (i) section 120B.128, paragraph (c); or (ii) paragraph (c).
48.4 	(b) The state assessment system must be aligned to the most recent revision of 
48.5 	academic standards as described in section 120B.023 in the following manner:
48.6 	(1) mathematics;
48.7 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
48.8 	(ii) high school level beginning in the 2013-2014 school year;
48.9 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
48.10 	school year; and
48.11 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
48.12 	the 2012-2013 school year.
48.13 	(c) For students enrolled in grade 8 in the 2005-2006 2013-2014 school year and 
48.14 	later, only the following options shall fulfill students' state graduation test requirements, 
48.15 	based on a longitudinal, systematic approach to student education and career planning, 
48.16 	assessment, instructional support, and evaluation, include the following:
48.17 	(1) for reading and mathematics:
48.18 	(i) obtaining an achievement level equivalent to or greater than proficient as 
48.19 	determined through a standard setting process on the Minnesota comprehensive 
48.20 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
48.21 	score as determined through a standard setting process on the graduation-required 
48.22 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
48.23 	subsequent retests;
48.24 	(ii) achieving a passing score as determined through a standard setting process 
48.25 	on the state-identified language proficiency test in reading and the mathematics test for 
48.26 	English learners or the graduation-required assessment for diploma equivalent of those 
48.27 	assessments for students designated as English learners;
48.28 	(iii) achieving an individual passing score on the graduation-required assessment for 
48.29 	diploma as determined by appropriate state guidelines for students with an individualized 
48.30 	education program or 504 plan;
48.31 	(iv) obtaining achievement level equivalent to or greater than proficient as 
48.32 	determined through a standard setting process on the state-identified alternate assessment 
48.33 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
48.34 	an individualized education program; or
49.1 	(v) achieving an individual passing score on the state-identified alternate assessment 
49.2 	or assessments as determined by appropriate state guidelines for students with an 
49.3 	individualized education program; and
49.4 	(2) for writing:
49.5 	(i) achieving a passing score on the graduation-required assessment for diploma;
49.6 	(ii) achieving a passing score as determined through a standard setting process on 
49.7 	the state-identified language proficiency test in writing for students designated as English 
49.8 	learners;
49.9 	(iii) achieving an individual passing score on the graduation-required assessment for 
49.10 	diploma as determined by appropriate state guidelines for students with an individualized 
49.11 	education program or 504 plan; or
49.12 	(iv) achieving an individual passing score on the state-identified alternate assessment 
49.13 	or assessments as determined by appropriate state guidelines for students with an 
49.14 	individualized education program.
49.15 	(1) attainment of required academic standards and career and college readiness 
49.16 	benchmarks under section 120B.023  as demonstrated on a nationally normed college 
49.17 	entrance exam;
49.18 	(2) achievement and career and college readiness tests in mathematics, reading, and 
49.19 	writing, consistent with paragraph (e) and, to the extent available, to monitor students' 
49.20 	continuous development of and growth in requisite knowledge and skills; analyze 
49.21 	students' progress and performance levels, identifying students' academic strengths and 
49.22 	diagnosing areas where students require curriculum or instructional adjustments, targeted 
49.23 	interventions, or remediation; and, based on analysis of students' progress and performance 
49.24 	data, determine students' learning and instructional needs and the instructional tools and 
49.25 	best practices that support academic rigor for the student; and
49.26 	(3) consistent with this paragraph and section 120B.125, age-appropriate exploration 
49.27 	and planning activities and career assessments to encourage students to identify personally 
49.28 	relevant career interests and aptitudes and help students and their families develop a 
49.29 	regularly reexamined transition plan for postsecondary education or employment without 
49.30 	need for postsecondary remediation.
49.31 	Based on appropriate state guidelines, students with an individualized education program 
49.32 	may satisfy state graduation requirements by achieving an individual score on the 
49.33 	state-identified alternative assessments.
49.34 	Expectations of schools, districts, and the state for career or college readiness under 
49.35 	this subdivision must be comparable in rigor, clarity of purpose, and rates of student 
49.36 	completion. A student under clause (2) must receive targeted, relevant, academically 
50.1 	rigorous, and resourced instruction, which may include a targeted instruction and 
50.2 	intervention plan focused on improving the student's knowledge and skills in core subjects 
50.3 	so that the student has a reasonable chance to succeed in a career or college without need 
50.4 	for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 
50.5 	124D.49, and related sections, an enrolling school or district must actively encourage a 
50.6 	student in grade 11 or 12 who is identified as academically ready for a career or college 
50.7 	to participate in courses and programs awarding college credit to high school students. 
50.8 	Students are not required to achieve a specified score or level of proficiency on an 
50.9 	assessment under this subdivision to graduate from high school.
50.10 	(d) Students enrolled in grade 8 in any school year from the 2005-2006 school 
50.11 	year to the 2009-2010 school year who do not pass the mathematics graduation-required 
50.12 	assessment for diploma under paragraph (c) are eligible to receive a high school diploma 
50.13 	if they:
50.14 	(1) complete with a passing score or grade all state and local coursework and credits 
50.15 	required for graduation by the school board granting the students their diploma;
50.16 	(2) participate in district-prescribed academic remediation in mathematics; and
50.17 	(3) fully participate in at least two retests of the mathematics GRAD test or until 
50.18 	they pass the mathematics GRAD test, whichever comes first. To improve the secondary 
50.19 	and postsecondary outcomes of all students, the alignment between secondary and 
50.20 	postsecondary education programs and Minnesota's workforce needs, and the efficiency 
50.21 	and cost-effectiveness of secondary and postsecondary programs, the commissioner, after 
50.22 	consulting with the chancellor of the Minnesota State Colleges and Universities and using 
50.23 	a request for proposal process, shall contract for a series of assessments that are consistent 
50.24 	with this subdivision, aligned with state academic standards, and include career and 
50.25 	college readiness benchmarks. Mathematics, reading, and writing assessments for students 
50.26 	in grades 8 and 10 must be predictive of and aligned with a nationally normed assessment 
50.27 	for career and college readiness. This nationally recognized assessment must be a college 
50.28 	entrance exam and given to students in grade 11 or 12. This series of assessments must 
50.29 	include a college placement diagnostic exam and contain career exploration elements. The 
50.30 	commissioner and the chancellor of the Minnesota State Colleges and Universities must 
50.31 	collaborate in aligning instruction and assessments for adult basic education students to 
50.32 	provide the students with diagnostic information about any targeted interventions they 
50.33 	need so that they may seek postsecondary education or employment without need for 
50.34 	postsecondary remediation.
50.35 	(1) Districts and schools, on an annual basis, must use the career exploration 
50.36 	elements in these assessments to help students, beginning no later than grade 9, and their 
51.1 	families explore and plan for postsecondary education or careers based on the students' 
51.2 	interests, aptitudes, and aspirations. Districts and schools must use timely regional labor 
51.3 	market information and partnerships, among other resources, to help students and their 
51.4 	families successfully develop, pursue, review, and revise an individualized plan for 
51.5 	postsecondary education or a career. This process must help increase students' engagement 
51.6 	in and connection to school, improve students' knowledge and skills, and deepen students' 
51.7 	understanding of career pathways as a sequence of academic and career courses that lead 
51.8 	to an industry-recognized credential, an associate's degree, or a bachelor's degree and are 
51.9 	available to all students, whatever their interests and career goals.
51.10 	(2) Students who, based on their growth in academic achievement between grades 8 
51.11 	and 10, show adequate progress toward meeting state career and college readiness must be 
51.12 	given the college entrance exam part of these assessments in grade 11. A student under 
51.13 	this clause who demonstrates attainment of required state academic standards, which 
51.14 	include career and college readiness benchmarks, on these assessments is academically 
51.15 	ready for a career or college and is encouraged to participate in courses and programs 
51.16 	awarding college credit to high school students. Such courses and programs may include 
51.17 	sequential courses of study within broad career areas and technical skill assessments 
51.18 	that extend beyond course grades.
51.19 	(3) All students in grade 11 not subject to clause (2) must be given the college 
51.20 	placement diagnostic exam so that the students, their families, the school, and the district 
51.21 	can use the results to diagnose areas for targeted instruction, intervention, or remediation 
51.22 	and improve students' knowledge and skills in core subjects sufficient for the student 
51.23 	to graduate and have a reasonable chance to succeed in a career or college without 
51.24 	remediation. These students must be given the college entrance exam part of these 
51.25 	assessments in grade 12.
51.26 	(4) A student in clause (3) who demonstrates: (i) attainment of required state 
51.27 	academic standards, which include career and college readiness benchmarks,  on these 
51.28 	assessments; (ii) attainment of career and college readiness benchmarks on the college 
51.29 	placement diagnostic part of these assessments; and, where applicable, (iii) successfully 
51.30 	completes targeted instruction, intervention, or remediation approved by the commissioner 
51.31 	and the chancellor of the Minnesota State Colleges and Universities after consulting with 
51.32 	local school officials and educators, is academically ready for a career or college and is 
51.33 	encouraged to participate in courses and programs awarding college credit to high school 
51.34 	students. Such courses and programs may include sequential courses of study within 
51.35 	broad career areas and technical skill assessments that extend beyond course grades.
52.1 	(5) A study to determine the alignment between these assessments and state 
52.2 	academic standards under this chapter must be conducted. Where alignment exists, the 
52.3 	commissioner must seek federal approval to, and immediately upon receiving approval, 
52.4 	replace the federally required assessments referenced under subdivision 1a and section 
52.5 	120B.35, subdivision 2, with assessments under this paragraph.
52.6 	(e) In developing, supporting, and improving students' academic readiness for a 
52.7 	career or college, schools, districts, and the state must have a continuum of empirically 
52.8 	derived, clearly defined benchmarks focused on students' attainment of knowledge and 
52.9 	skills so that students, their parents, and teachers know how well students must perform to 
52.10 	have a reasonable chance to succeed in a career or college without need for postsecondary 
52.11 	remediation. The commissioner and Minnesota's public postsecondary institutions must 
52.12 	ensure that the foundational knowledge and skills for students' successful performance 
52.13 	in postsecondary employment or education and an articulated series of possible targeted 
52.14 	interventions are clearly identified and satisfy Minnesota's postsecondary admissions 
52.15 	requirements.
52.16 	(f) A school, district, or charter school must place record on the high school 
52.17 	transcript a student's current pass status for each subject that has a required graduation 
52.18 	assessment progress toward career and college readiness.
52.19 	In addition, (g) The school board granting the students their diplomas may formally 
52.20 	decide to include a notation of high achievement on the high school diplomas of those 
52.21 	graduating seniors who, according to established school board criteria, demonstrate 
52.22 	exemplary academic achievement during high school.
52.23 	(e) (h) The 3rd through 8th 7th grade computer-adaptive assessment results and 
52.24 	high school test results shall be available to districts for diagnostic purposes affecting 
52.25 	student learning and district instruction and curriculum, and for establishing educational 
52.26 	accountability. The commissioner must establish empirically derived benchmarks on 
52.27 	adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and 
52.28 	college readiness. The commissioner must disseminate to the public the computer-adaptive 
52.29 	assessments and high school test results upon receiving those results.
52.30 	(f) (i) The 3rd through 8th grade grades 3 through 7 computer-adaptive assessments
52.31 	 and high school tests must be aligned with state academic standards. The commissioner 
52.32 	shall determine the testing process and the order of administration. The statewide results 
52.33 	shall be aggregated at the site and district level, consistent with subdivision 1a.
52.34 	(g) In addition to the testing and reporting requirements under this section, (j) The 
52.35 	commissioner shall include the following components in the statewide public reporting 
52.36 	system:
53.1 	(1) uniform statewide testing computer-adaptive assessments of all students in 
53.2 	grades 3 through 8 7 and testing at the high school level that provides appropriate, 
53.3 	technically sound accommodations or alternate assessments;
53.4 	(2) educational indicators that can be aggregated and compared across school 
53.5 	districts and across time on a statewide basis, including average daily attendance, high 
53.6 	school graduation rates, and high school drop-out rates by age and grade level;
53.7 	(3) state results on the American College Test; and
53.8 	(4) state results from participation in the National Assessment of Educational 
53.9 	Progress so that the state can benchmark its performance against the nation and other 
53.10 	states, and, where possible, against other countries, and contribute to the national effort 
53.11 	to monitor achievement.

53.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
53.13 	and applies to the 2013-2014 school year and later, except that paragraph (a) applies 
53.14 	the day following final enactment and the requirements for using computer-adaptive 
53.15 	mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016 
53.16 	school year and later.

53.17 	Sec. 5. Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:
53.18 		Subd. 1a.Statewide and local assessments; results. (a) For purposes of this 
53.19 	section, the following definitions have the meanings given them.
53.20 	(1) "Computer-adaptive assessments" means fully adaptive assessments.
53.21 	(2) "Fully adaptive assessments" include test items that are on-grade level and items 
53.22 	that may be above or below a student's grade level.
53.23 	(3) "On-grade level" test items contain subject area content that is aligned to state 
53.24 	academic standards for the grade level of the student taking the assessment.
53.25 	(4) "Above-grade level" test items contain subject area content that is above the 
53.26 	grade level of the student taking the assessment and is considered aligned with state 
53.27 	academic standards to the extent it is aligned with content represented in state academic 
53.28 	standards above the grade level of the student taking the assessment. Notwithstanding 
53.29 	the student's grade level, administering above-grade level test items to a student does not 
53.30 	violate the requirement that state assessments must be aligned with state standards.
53.31 	(5) "Below-grade level" test items contain subject area content that is below the 
53.32 	grade level of the student taking the test and is considered aligned with state academic 
53.33 	standards to the extent it is aligned with content represented in state academic standards 
53.34 	below the student's current grade level. Notwithstanding the student's grade level, 
54.1 	administering below-grade level test items to a student does not violate the requirement 
54.2 	that state assessments must be aligned with state standards.
54.3 	(b) The commissioner must use fully adaptive mathematics and reading assessments 
54.4 	for grades 3 through 7 beginning in the 2015-2016 school year and later.
54.5 	(c) For purposes of conforming with existing federal educational accountability 
54.6 	requirements, the commissioner must develop and implement computer-adaptive reading 
54.7 	and mathematics assessments for grades 3 through 8 7, state-developed high school 
54.8 	reading and mathematics tests aligned with state academic standards, and science 
54.9 	assessments under clause (2) that districts and sites must use to monitor student growth 
54.10 	toward achieving those standards. The commissioner must not develop statewide 
54.11 	assessments for academic standards in social studies, health and physical education, and 
54.12 	the arts. The commissioner must require:
54.13 	(1) annual computer-adaptive reading and mathematics assessments in grades 3 
54.14 	through 8 7, and high school reading and mathematics tests; and
54.15 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
54.16 	grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, 
54.17 	and the commissioner must not require students to achieve a passing score on high school 
54.18 	science assessments as a condition of receiving a high school diploma.
54.19 	(d) The commissioner must ensure that for annual computer-adaptive assessments:
54.20 	(1) individual student performance data and achievement reports are available within 
54.21 	three school days of when students take an assessment;
54.22 	(2) growth information is available for each student from the student's first 
54.23 	assessment to each proximate assessment using a constant measurement scale;
54.24 	(3) parents, teachers, and school administrators are able to use elementary and 
54.25 	middle school student performance data to project students' secondary and postsecondary 
54.26 	achievement; and
54.27 	(4) useful diagnostic information about areas of students' academic strengths and 
54.28 	weaknesses is available to teachers and school administrators for improving student 
54.29 	instruction and indicating the specific skills and concepts that should be introduced and 
54.30 	developed for students at given performance levels, organized by strands within subject 
54.31 	areas, and aligned to state academic standards.
54.32 	(b) (e) The commissioner must ensure that all statewide tests administered to 
54.33 	elementary and secondary students measure students' academic knowledge and skills and 
54.34 	not students' values, attitudes, and beliefs.
54.35 	(c) (f) Reporting of assessment results must:
55.1 	(1) provide timely, useful, and understandable information on the performance of 
55.2 	individual students, schools, school districts, and the state;
55.3 	(2) include a value-added growth indicator of student achievement under section 
55.4 	120B.35, subdivision 3, paragraph (b); and
55.5 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
55.6 	whether students have met the state's basic skills requirements; and
55.7 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
55.8 	whether students have met the state's academic standards.
55.9 	(d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d), 
55.10 	clause (1), the commissioner must include appropriate, technically sound accommodations 
55.11 	or alternative assessments for the very few students with disabilities for whom statewide 
55.12 	assessments are inappropriate and for English learners.
55.13 	(e)(h) A school, school district, and charter school must administer statewide 
55.14 	assessments under this section, as the assessments become available, to evaluate student 
55.15 	proficiency progress toward career and college readiness in the context of the state's grade 
55.16 	level academic standards. If a state assessment is not available, a school, school district, 
55.17 	and charter school must determine locally if a student has met the required academic 
55.18 	standards. A school, school district, or charter school may use a student's performance 
55.19 	on a statewide assessment as one of multiple criteria to determine grade promotion or 
55.20 	retention. A school, school district, or charter school may use a high school student's 
55.21 	performance on a statewide assessment as a percentage of the student's final grade in a 
55.22 	course, or place a student's assessment score on the student's transcript.

55.23 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
55.24 	later except the requirements for using computer-adaptive mathematics and reading 
55.25 	assessments for grades 3 through 7 apply in the 2015-2016 school year and later.

55.26 	Sec. 6. Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:
55.27 		Subdivision 1.School performance report cards reports. (a) The commissioner 
55.28 	shall report student academic performance under section 120B.35, subdivision 2; the 
55.29 	percentages of students showing low, medium, and high growth under section 120B.35, 
55.30 	subdivision 3, paragraph (b); school safety and student engagement and connection 
55.31 	under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section 
55.32 	120B.35, subdivision 3, paragraph (c); the percentage of students whose progress and 
55.33 	performance levels are meeting career and college readiness benchmarks under section 
55.34 	120B.30, subdivision 1; two separate student-to-teacher ratios that clearly indicate the 
55.35 	definition of teacher consistent with sections 122A.06 and 122A.15 for purposes of 
56.1 	determining these ratios; staff characteristics excluding salaries; student enrollment 
56.2 	demographics; district mobility; and extracurricular activities. The report also must 
56.3 	indicate a school's adequate yearly progress status under applicable federal law, and must 
56.4 	not set any designations applicable to high- and low-performing schools due solely to 
56.5 	adequate yearly progress status.
56.6 	(b) The commissioner shall develop, annually update, and post on the department 
56.7 	Web site school performance report cards reports.
56.8 	(c) The commissioner must make available performance report cards reports by the 
56.9 	beginning of each school year.
56.10 	(d) A school or district may appeal its adequate yearly progress status in writing to 
56.11 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
56.12 	decision to uphold or deny an appeal is final.
56.13 	(e) School performance report card data are nonpublic data under section 13.02, 
56.14 	subdivision 9, until the commissioner publicly releases the data. The commissioner shall 
56.15 	annually post school performance report cards reports to the department's public Web 
56.16 	site no later than September 1, except that in years when the report card reflects reports 
56.17 	reflect new performance standards, the commissioner shall post the school performance 
56.18 	report cards reports no later than October 1.

56.19 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
56.20 	later.

56.21 	Sec. 7. STATEWIDE ASSESSMENT AND ACCOUNTABILITY; TRANSITION.
 56.22 	Notwithstanding other law to the contrary, students enrolled in grade 8 in the 
56.23 	2005-2006 through 2012-2013 school years are eligible to be assessed under the amended 
56.24 	provisions of Minnesota Statutes, section 120B.30, subdivision 1, to the extent such 
56.25 	assessments are available or under Minnesota Statutes, section 120B.128, paragraph (c). 
56.26 	Other measures of statewide accountability, including student performance, preparation, 
56.27 	rigorous course taking, engagement and connection, and transition into postsecondary 
56.28 	education or the workforce remain in effect.

56.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

56.30 	Sec. 8. CAREER PATHWAYS ADVISORY TASK FORCE.
 56.31 		Subdivision 1.Recommendations. (a) A career pathways advisory task force 
56.32 	is established to recommend to the Minnesota legislature, consistent with Minnesota 
57.1 	Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3, how to structurally 
57.2 	redesign secondary and postsecondary education to:
57.3 	(1) improve secondary and postsecondary outcomes for students and adult learners;
57.4 	(2) align secondary and postsecondary education programs serving students and 
57.5 	adult learners;
57.6 	(3) align secondary and postsecondary education programs and Minnesota's 
57.7 	workforce needs; and
57.8 	(4) measure and evaluate the combined efficacy of Minnesota's public kindergarten 
57.9 	through grade 12 and postsecondary education programs.
57.10 	(b) Advisory task force members, in preparing these recommendations, must 
57.11 	seek the advice of education providers, employers, policy makers, and other interested 
57.12 	stakeholders and must at least consider how to:
57.13 	(1) better inform students about career options, occupational trends, and educational 
57.14 	paths leading to viable and rewarding careers and reduce the gap between the demand for 
57.15 	and preparation of a skilled Minnesota workforce;
57.16 	(2) in consultation with a student's family, develop and periodically adapt, as 
57.17 	needed, an education and work plan for each student aligned with the student's personal 
57.18 	and professional interests, abilities, skills, and aspirations;
57.19 	(3) improve monitoring of high school students' progress with targeted interventions 
57.20 	and support and remove the need for remedial instruction;
57.21 	(4) increase and accelerate opportunities for secondary school students to earn 
57.22 	postsecondary credits leading to a certificate, industry license, or degree;
57.23 	(5) better align high school courses and expectations and postsecondary 
57.24 	credit-bearing courses;
57.25 	(6) better align high school standards and assessments, postsecondary readiness 
57.26 	measures and entrance requirements, and the expectations of Minnesota employers;
57.27 	(7) increase the rates at which students complete a postsecondary certificate, 
57.28 	industry license, or degree; and
57.29 	(8) provide graduates of two-year and four-year postsecondary institutions with the 
57.30 	foundational skills needed for civic engagement, ongoing employment, and continuous 
57.31 	learning.
57.32 		Subd. 2.Membership. The Career Pathways Advisory Task Force shall have 15 
57.33 	members appointed by July 15, 2013, as follows:
57.34 	(1) one member appointed by the Minnesota Association of Career and Technical 
57.35 	Administrators;
58.1 	(2) one member appointed by the Minnesota Association for Career and Technical 
58.2 	Education;
58.3 	(3) one member appointed by the University of Minnesota who is a faculty member 
58.4 	working to develop career and technical educators in Minnesota;
58.5 	(4) one member appointed by the Minnesota State Colleges and Universities who is 
58.6 	a faculty member working to develop career and technical educators in Minnesota;
58.7 	(5) one member appointed by the National Research Center for Career and Technical 
58.8 	Education;
58.9 	(6) one member appointed by the Minnesota Department of Education;
58.10 	(7) one member appointed by the Minnesota Board of Teaching;
58.11 	(8) one member appointed by the Minnesota Association of Colleges for Teacher 
58.12 	Education;
58.13 	(9) one member appointed by the Minnesota State Colleges and Universities from 
58.14 	faculty for foundational skills and general education; and
58.15 	(10) six members appointed by the commissioner of education who have expertise in 
58.16 	any of the areas with which the task force has been charged in subdivision 1.
58.17 		Subd. 3.Terms. Each member shall serve until the task force sunsets, unless 
58.18 	replaced by their appointing authority.
58.19 		Subd. 4.First meeting; acting chair; chair. The commissioner of education shall 
58.20 	convene the first meeting by August 15, 2013, and shall act as chair until the task force 
58.21 	elects a chair from among its members at the first meeting.
58.22 		Subd. 5.Compensation. The task force members shall not be compensated and 
58.23 	their expenses shall not be reimbursed.
58.24 		Subd. 6.Staff; technical assistance. The commissioner of education, on request 
58.25 	by the task force, will provide technical assistance and provide staff assistance sufficient 
58.26 	for the task force to carry out its duties.
58.27 		Subd. 7.Report. By February 15, 2014, the task force shall submit a written 
58.28 	report describing its recommendations to the chairs and ranking minority members of the 
58.29 	legislative committees and divisions with primary jurisdiction over kindergarten through 
58.30 	grade 12 education.
58.31 		Subd. 8.Sunset. The task force expires the day after the task force reports to the 
58.32 	legislature, or February 15, 2014, whichever is earlier.

58.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

58.34 	Sec. 9. APPROPRIATIONS.
 59.1 		Subdivision 1.Minnesota Department of Education. The sums indicated in this 
59.2 	section are appropriated from the general fund to the Department of Education for the 
59.3 	fiscal years designated.
59.4 		Subd. 2.Statewide testing and reporting system. For the statewide testing and 
59.5 	reporting system under Minnesota Statutes, section 120B.30:

59.6		$
	16,518,000
	.....
	2014
	
59.7		$
	19,198,000
	.....
	2015
	
59.8 	Any balance in the first year does not cancel but is available in the second year.

59.9 	Sec. 10.  REPEALER.
 59.10 	 Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5, 
59.11 	6, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090; 
59.12 	3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160; 
59.13 	3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240; 
59.14 	3501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020; 
59.15 	3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140; 
59.16 	3501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, are repealed effective the 
59.17 	day following final enactment.

59.18 	ARTICLE 3
59.19 	EDUCATION EXCELLENCE

59.20 	Section 1. Minnesota Statutes 2012, section 120A.22, subdivision 5, is amended to read:
59.21 		Subd. 5.Ages and terms. (a) Every child between seven and 1617 years of age must 
59.22 	receive instruction unless the child has graduated. Every child under the age of seven who 
59.23 	is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days, 
59.24 	or other kindergarten programs shall receive instruction. Except as provided in subdivision 
59.25 	6, a parent may withdraw a child under the age of seven from enrollment at any time.
59.26 	(b) A school district by annual board action may require children subject to this 
59.27 	subdivision to receive instruction in summer school. A district that acts to require children 
59.28 	to receive instruction in summer school shall establish at the time of its action the criteria 
59.29 	for determining which children must receive instruction.
59.30 	(c) A pupil 16 years of age or older who meets the criteria of section 124D.68, 
59.31 	subdivision 2, may be assigned to an area learning center. Such assignment may be made 
59.32 	only after consultation with the principal, area learning center director, and parent or 
59.33 	guardian.

60.1 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
60.2 	later.

60.3 	Sec. 2. Minnesota Statutes 2012, section 120A.22, subdivision 8, is amended to read:
60.4 		Subd. 8.Withdrawal from school. Any student between 16 and 18who is 17 years 
60.5 	old who seeks to withdraw from school, and the student's parent or guardian must:
60.6 	(1) attend a meeting with school personnel to discuss the educational opportunities 
60.7 	available to the student, including alternative educational opportunities; and
60.8 	(2) sign a written election to withdraw from school.

60.9 	Sec. 3. Minnesota Statutes 2012, section 120A.22, subdivision 11, is amended to read:
60.10 		Subd. 11.Assessment of performance. (a) Each year the performance of every 
60.11 	child ages seven through 16 and every child ages 16 through 17 for which an initial 
60.12 	report was filed pursuant to section 120A.24, subdivision 1, after the child is 16 and who 
60.13 	is not enrolled in a public school must be assessed using a nationally norm-referenced 
60.14 	standardized achievement examination. The superintendent of the district in which the 
60.15 	child receives instruction and the person in charge of the child's instruction must agree about 
60.16 	the specific examination to be used and the administration and location of the examination.
60.17 	(b) To the extent the examination in paragraph (a) does not provide assessment in 
60.18 	all of the subject areas in subdivision 9, the parent must assess the child's performance 
60.19 	in the applicable subject area. This requirement applies only to a parent who provides 
60.20 	instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
60.21 	(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 
60.22 	child's performance on the total battery score is at or below the 30th percentile or one 
60.23 	grade level below the performance level for children of the same age, the parent must 
60.24 	obtain additional evaluation of the child's abilities and performance for the purpose of 
60.25 	determining whether the child has learning problems.
60.26 	(d) A child receiving instruction from a nonpublic school, person, or institution that 
60.27 	is accredited by an accrediting agency, recognized according to section 123B.445, or 
60.28 	recognized by the commissioner, is exempt from the requirements of this subdivision.

60.29 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
60.30 	later.

60.31 	Sec. 4. Minnesota Statutes 2012, section 120A.24, subdivision 1, is amended to read:
60.32 		Subdivision 1.Reports to superintendent. (a) The person or nonpublic school in 
60.33 	charge of providing instruction to a child must submit to the superintendent of the district 
61.1 	in which the child resides the name, birth date, and address of the child; the annual tests 
61.2 	intended to be used under section 120A.22, subdivision 11, if required; the name of each 
61.3 	instructor; and evidence of compliance with one of the requirements specified in section 
61.4 	120A.22, subdivision 10:
61.5 	(1) by October 1 of the first school year the child receives instruction after reaching 
61.6 	the age of seven;
61.7 	(2) within 15 days of when a parent withdraws a child from public school after 
61.8 	age seven to provide instruction in a nonpublic school that is not accredited by a 
61.9 	state-recognized accredited agency;
61.10 	(3) within 15 days of moving out of a district; and
61.11 	(4) by October 1 after a new resident district is established.
61.12 	(b) The person or nonpublic school in charge of providing instruction to a child 
61.13 	between the ages of seven and 16 and every child ages 16 through 17 for which an 
61.14 	initial report was filed pursuant to this subdivision after the child is 16 must submit, by 
61.15 	October 1 of each school year, a letter of intent to continue to provide instruction under 
61.16 	this section for all students under the person's or school's supervision and any changes to 
61.17 	the information required in paragraph (a) for each student.
61.18 	(c) The superintendent may collect the required information under this section 
61.19 	through an electronic or Web-based format, but must not require electronic submission of 
61.20 	information under this section from the person in charge of reporting under this subdivision.

61.21 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
61.22 	later.

61.23 	Sec. 5. Minnesota Statutes 2012, section 122A.415, is amended by adding a 
61.24 	subdivision to read:
61.25 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal year 2015 
61.26 	and later, the basic alternative teacher compensation aid for a school with a plan approved 
61.27 	under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher 
61.28 	compensation revenue under subdivision 1. The basic alternative teacher compensation 
61.29 	aid for an intermediate school district or charter school with a plan approved under section 
61.30 	122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times 
61.31 	the number of pupils enrolled in the school on October 1 of the previous year, or on 
61.32 	October 1 of the current year for a charter school in the first year of operation, times 
61.33 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
61.34 	compensation levy for all participating school districts to the maximum alternative teacher 
61.35 	compensation revenue for those districts under subdivision 1.
62.1 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
62.2 	teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2015 
62.3 	and later. The commissioner must limit the amount of alternative teacher compensation 
62.4 	aid approved under this section so as not to exceed these limits.

62.5 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
62.6 	later.

62.7 	Sec. 6. Minnesota Statutes 2012, section 122A.415, is amended by adding a 
62.8 	subdivision to read:
62.9 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2015 and later, 
62.10 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
62.11 	compensation aid equals the product of (1) the difference between the district's alternative 
62.12 	teacher compensation revenue and the district's basic alternative teacher compensation 
62.13 	aid, times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per 
62.14 	adjusted pupil unit to $6,742.

62.15 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
62.16 	later.

62.17 	Sec. 7. Minnesota Statutes 2012, section 122A.415, is amended by adding a 
62.18 	subdivision to read:
62.19 		Subd. 6.Alternative teacher compensation equalization aid. (a) For fiscal year 
62.20 	2015 and later, a district's alternative teacher compensation equalization aid equals the 
62.21 	district's alternative teacher compensation revenue minus the district's basic alternative 
62.22 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
62.23 	district does not levy the entire amount permitted, the alternative teacher compensation 
62.24 	equalization aid must be reduced in proportion to the actual amount levied.
62.25 	(b) A district's alternative teacher compensation aid equals the sum of the 
62.26 	district's basic alternative teacher compensation aid and the district's alternative teacher 
62.27 	compensation equalization aid.

62.28 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
62.29 	later.

62.30 	Sec. 8. Minnesota Statutes 2012, section 124D.03, subdivision 12, is amended to read:
62.31 		Subd. 12.Termination of enrollment. A district may terminate the enrollment 
62.32 	of a nonresident student enrolled under this section or section 124D.08 at the end of a 
63.1 	school year if the student meets the definition of a habitual truant under section 260C.007, 
63.2 	subdivision 19, the student has been provided appropriate services under chapter 260A, 
63.3 	and the student's case has been referred to juvenile court. A district may also terminate the 
63.4 	enrollment of a nonresident student over the age of 16 17 enrolled under this section if the 
63.5 	student is absent without lawful excuse for one or more periods on 15 school days and has 
63.6 	not lawfully withdrawn from school under section 120A.22, subdivision 8.

63.7 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
63.8 	later.

63.9 	Sec. 9. Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:
63.10 		Subd. 2.Commissioner designation. (a) A state-approved alternative program 
63.11 	designated by the state must be a site. A state-approved alternative program must provide 
63.12 	services to students who meet the criteria in section 124D.68 and who are enrolled in:
63.13 	(1) a district that is served by the state-approved alternative program; or
63.14 	(2) a charter school located within the geographic boundaries of a district that is 
63.15 	served by the state-approved alternative program.
63.16 	(b) A school district or charter school may be approved biennially by the state to 
63.17 	provide additional instructional programming that results in grade level acceleration. The 
63.18 	program must be designed so that students make grade progress during the school year 
63.19 	and graduate prior to the students' peers.
63.20 	(c) (b) To be designated, a district, charter school, or state-approved alternative 
63.21 	program must demonstrate to the commissioner that it will:
63.22 	(1) provide a program of instruction that permits pupils to receive instruction 
63.23 	throughout the entire year; and
63.24 	(2) develop and maintain a separate record system that, for purposes of section 
63.25 	126C.05, permits identification of membership attributable to pupils participating in the 
63.26 	program. The record system and identification must ensure that the program will not have 
63.27 	the effect of increasing the total average daily membership attributable to an individual 
63.28 	pupil as a result of a learning year program. The record system must include the date the 
63.29 	pupil originally enrolled in a learning year program, the pupil's grade level, the date of 
63.30 	each grade promotion, the average daily membership generated in each grade level, the 
63.31 	number of credits or standards earned, and the number needed to graduate.
63.32 	(d) (c) A student who has not completed a school district's graduation requirements 
63.33 	may continue to enroll in courses the student must complete in order to graduate until 
63.34 	the student satisfies the district's graduation requirements or the student is 21 years old, 
63.35 	whichever comes first.

64.1 	Sec. 10. Minnesota Statutes 2012, section 124D.42, is amended to read:
64.2 	124D.42 READING AND MATH CORPS.
64.3 		Subd. 6.Program training. The commission must, within available resources:
64.4 	(1) orient each grantee organization in the nature, philosophy, and purpose of the 
64.5 	program;
64.6 	(2) build an ethic of community service through general community service training; 
64.7 	and
64.8 	(3) provide guidance on integrating programmatic-based measurement into program 
64.9 	models.
64.10 		Subd. 8.Minnesota reading corps program. (a) A Minnesota reading corps 
64.11 	program is established to provide ServeMinnesota Innovation AmeriCorps members with 
64.12 	a data-based problem-solving model of literacy instruction to use in helping to train local 
64.13 	Head Start program providers, other prekindergarten program providers, and staff in 
64.14 	schools with students in kindergarten through grade 3 to evaluate and teach early literacy 
64.15 	skills, including comprehensive, scientifically based reading instruction under section 
64.16 	122A.06, subdivision 4, to children age 3 to grade 3.
64.17 	(b) Literacy programs under this subdivision must comply with the provisions 
64.18 	governing literacy program goals and data use under section 119A.50, subdivision 3, 
64.19 	paragraph (b).
64.20 	(c) The commission must submit a biennial report to the committees of the 
64.21 	legislature with jurisdiction over kindergarten through grade 12 education that records and 
64.22 	evaluates program data to determine the efficacy of the programs under this subdivision.
64.23 		Subd. 9.Minnesota math corps program. (a) A Minnesota math corps program is 
64.24 	established to give ServeMinnesota AmeriCorps members a data-based problem-solving 
64.25 	model of mathematics instruction useful for providing elementary and middle school 
64.26 	students and their teachers with instructional support to meet state academic standards in 
64.27 	mathematics.
64.28 	(b) The commission must submit a biennial report to the committees of the 
64.29 	legislature with jurisdiction over kindergarten through grade 12 education that records and 
64.30 	evaluates program data to determine the efficacy of the programs under this subdivision.

64.31 	EFFECTIVE DATE. This section is effective July 1, 2013.

64.32 	Sec. 11. Minnesota Statutes 2012, section 124D.4531, is amended to read:
64.33 	124D.4531 CAREER AND TECHNICAL LEVY REVENUE.
65.1 		Subdivision 1.Career and technical levy revenue. (a) A district with a career and 
65.2 	technical program approved under this section for the fiscal year in which the levy is 
65.3 	certified may levy an amount is eligible for career and technical revenue equal to 35 percent 
65.4 	of approved expenditures in the fiscal year in which the levy is certified for the following:
65.5 	(1) salaries paid to essential, licensed personnel providing direct instructional 
65.6 	services to students in that fiscal year, including extended contracts, for services rendered 
65.7 	in the district's approved career and technical education programs, excluding salaries 
65.8 	reimbursed by another school district under clause (2);
65.9 	(2) amounts paid to another Minnesota school district for salaries of essential, 
65.10 	licensed personnel providing direct instructional services to students in that fiscal year for 
65.11 	services rendered in the district's approved career and technical education programs;
65.12 	(2)(3) contracted services provided by a public or private agency other than a 
65.13 	Minnesota school district or cooperative center under subdivision 7;
65.14 	(3)(4) necessary travel between instructional sites by licensed career and technical 
65.15 	education personnel;
65.16 	(4)(5) necessary travel by licensed career and technical education personnel for 
65.17 	vocational student organization activities held within the state for instructional purposes;
65.18 	(5)(6) curriculum development activities that are part of a five-year plan for 
65.19 	improvement based on program assessment;
65.20 	(6)(7) necessary travel by licensed career and technical education personnel for 
65.21 	noncollegiate credit-bearing professional development; and
65.22 	(7)(8) specialized vocational instructional supplies.
65.23 	(b) Up to ten percent of a district's career and technical levy revenue may be spent on 
65.24 	equipment purchases. Districts using the career and technical levy revenue for equipment 
65.25 	purchases must report to the department on the improved learning opportunities for 
65.26 	students that result from the investment in equipment.
65.27 	(c) The district must recognize the full amount of this levy as revenue for the fiscal 
65.28 	year in which it is certified.
65.29 	(d) The amount of the levy certified revenue calculated under this subdivision may 
65.30 	not exceed $17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013, 
65.31 	and $15,393,000$24,224,000 for taxes payable in 2014.
65.32 	(e) If the estimated levy revenue exceeds the amount in paragraph (d), the 
65.33 	commissioner must reduce the percentage in paragraph (a), clause (2), until the estimated 
65.34 	levy revenue no longer exceeds the limit in paragraph (d).
65.35 		Subd. 1a.Career and technical levy. (a) For fiscal year 2014 only, a district may 
65.36 	levy an amount not more than the product of its career and technical revenue times the 
66.1 	lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal cost pupil 
66.2 	unit in the fiscal year in which the levy is certified to the career and technical revenue 
66.3 	equalizing factor. The career and technical revenue equalizing factor for fiscal year 2014 
66.4 	equals $9,497.
66.5 	(b) For fiscal year 2015 and later, a district may levy an amount not more than 
66.6 	the product of its career and technical revenue times the lesser of one or the ratio of its 
66.7 	adjusted net tax capacity per adjusted pupil unit in the fiscal year in which the levy is 
66.8 	certified to the career and technical revenue equalizing factor. The career and technical 
66.9 	revenue equalizing factor for fiscal year 2015 and later equals $10,058.
66.10 		Subd. 1b.Career and technical aid. For fiscal year 2014 and later, a district's 
66.11 	career and technical aid equals its career and technical revenue less its career and technical 
66.12 	levy. If the district levy is less than the permitted levy, the district's career and technical 
66.13 	aid shall be reduced proportionately.
66.14 		Subd. 2.Allocation from cooperative centers and intermediate districts. For 
66.15 	purposes of this section, a cooperative center or an intermediate district must allocate its 
66.16 	approved expenditures for career and technical education programs among participating 
66.17 	districts.
66.18 		Subd. 3.Levy Revenue guarantee. Notwithstanding subdivision 1, paragraph (a), 
66.19 	the career and technical education levy revenue for a district is not less than the lesser of:
66.20 	(1) the district's career and technical education levy authority revenue for the 
66.21 	previous fiscal year; or
66.22 	(2) 100 percent of the approved expenditures for career and technical programs 
66.23 	included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.
66.24 		Subd. 3a.Levy, pay 2012-2014 Revenue adjustments. Notwithstanding 
66.25 	subdivisions 1, 1a, and 3, for taxes payable in 2012 to 2014 only, the department must 
66.26 	calculate the career and technical levy authority revenue for each district according to 
66.27 	Minnesota Statutes 2010, section 124D.4531, and adjust the levy authority revenue for 
66.28 	each district proportionately to meet the statewide levy revenue target under subdivision 1, 
66.29 	paragraph (d). For purposes of calculating the levy revenue guarantee under subdivision 
66.30 	3, the career and technical education levy authority revenue for the previous fiscal year 
66.31 	is the levy authority revenue according to Minnesota Statutes 2010, section 124D.4531, 
66.32 	before adjustments to meet the statewide levy revenue target.
66.33 		Subd. 4.District reports. Each district or cooperative center must report data to the 
66.34 	department for all career and technical education programs as required by the department 
66.35 	to implement the career and technical levy revenue formula.
67.1 		Subd. 5.Allocation from districts participating in agreements for secondary 
67.2 	education or interdistrict cooperation. For purposes of this section, a district with a 
67.3 	career and technical program approved under this section that participates in an agreement 
67.4 	under section 123A.30 or 123A.32 must allocate its levy revenue authority under this 
67.5 	section among participating districts.

67.6 	EFFECTIVE DATE. This section is effective for fiscal year 2014 and later.

67.7 	Sec. 12. Minnesota Statutes 2012, section 124D.65, subdivision 5, is amended to read:
67.8 		Subd. 5.School district EL revenue. (a) A district's English learner programs 
67.9 	revenue equals the product of (1) $700 in fiscal year 2004 and later $705 times (2) the 
67.10 	greater of 20 or the adjusted marginal cost average daily membership of eligible English 
67.11 	learners enrolled in the district during the current fiscal year.
67.12 	(b) A pupil ceases to generate state English learner aid in the school year following 
67.13 	the school year in which the pupil attains the state cutoff score on a commissioner-provided 
67.14 	assessment that measures the pupil's emerging academic English.

67.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
67.16 	and later.

67.17 	Sec. 13. [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
67.18 		Subdivision 1.Program to close the academic achievement and opportunity 
67.19 	gap. The "Achievement and Integration for Minnesota" program is established to 
67.20 	promote diversity, pursue racial and economic integration, and increase student academic 
67.21 	achievement and equitable educational opportunities in Minnesota public schools. The 
67.22 	program must serve students of varying racial, ethnic, and economic backgrounds, taking 
67.23 	into account unique geographic and demographic particularities affecting students, 
67.24 	schools, and districts including race, neighborhood locations and characteristics, grades, 
67.25 	socioeconomic status, academic performance, and language barriers. Eligible districts 
67.26 	must use the revenue under section 124D.862 to pursue racial and economic integration in 
67.27 	schools through: (1) in-school educational practices and integrated learning environments 
67.28 	created to prepare all students to be effective citizens, enhance social cohesion, and 
67.29 	reinforce democratic values; and (2) corresponding and meaningful policies and curricula 
67.30 	and trained instructors, administrators, school counselors, and other advocates who support 
67.31 	and enhance in-school practices and integrated learning environments under this section. 
67.32 	In-school practices and integrated learning environments must promote increased student 
68.1 	academic achievement, cultural fluency, cross-cultural interactivities, communication and 
68.2 	pedagogy, graduation and educational attainment rates, and parent involvement.
68.3 		Subd. 2.Plan components. (a) The school board of each eligible district must 
68.4 	formally develop and implement a long-term comprehensive plan that identifies the 
68.5 	collaborative structures and systems, in-school strategies, inclusive best educational 
68.6 	practices, and partnerships with higher education institutions and industries required 
68.7 	to effect this section and increase the academic achievement of all students. Plan 
68.8 	components may include: innovative and integrated prekindergarten through grade 12 
68.9 	learning environments that offer students school enrollment choices; family engagement 
68.10 	initiatives that involve families in their students' academic life and success; professional 
68.11 	development opportunities for teachers and administrators focused on improving the 
68.12 	academic achievement of all students; increased programmatic opportunities focused 
68.13 	on rigor and college and career readiness for underserved students, including students 
68.14 	enrolled in alternative learning centers under section 123A.05, public alternative programs 
68.15 	under section 126C.05, subdivision 15, or contract alternative programs under section 
68.16 	124D.69, among other underserved students; or recruitment and retention of teachers and 
68.17 	administrators with diverse backgrounds. The plan must specify district and school goals 
68.18 	for reducing the disparity in academic achievement among all racial and ethnic categories of 
68.19 	students and promoting racial and economic integration in schools and districts over time.
68.20 	(b) Among other requirements, an eligible district must implement a cost-effective, 
68.21 	research-based intervention that includes formative assessment practices to reduce the 
68.22 	disparity in student academic achievement between the highest and lowest performing 
68.23 	racial and ethnic categories of students as measured by student demonstration of 
68.24 	proficiency on state reading and math assessments.
68.25 	(c) Eligible districts must collaborate in creating efficiencies and eliminating the 
68.26 	duplication of programs and services under this section, which may include forming a 
68.27 	single, seven-county metropolitan areawide partnership of eligible districts for this purpose.
68.28 		Subd. 3.Biennial progress; budget process. (a) To receive revenue under section 
68.29 	124D.862, the school board of an eligible district must hold at least one formal hearing by 
68.30 	March 1 in the year preceding the current biennium to report to the public its progress in 
68.31 	realizing the goals identified in its plan.  At the hearing, the board must provide the public 
68.32 	with longitudinal data demonstrating district and school progress in reducing the disparity 
68.33 	in student academic achievement among all racial and ethnic categories of students and 
68.34 	realizing racial and economic integration, consistent with its plan and the measures in 
68.35 	paragraph (b). The district also must submit to the commissioner by March 1 in the year 
68.36 	preceding the current biennium a detailed biennial budget for continuing to implement 
69.1 	its plan and the commissioner must review and approve or disapprove the budget by 
69.2 	June 1 of that year.
69.3 	(b) The longitudinal data required under paragraph (a) must be based on student 
69.4 	growth and progress toward proficiency in reading, mathematics, and writing, as defined 
69.5 	under section 120B.299, and one or more of the following measures:
69.6 	(1) the number of world language proficiency or high achievement certificates 
69.7 	awarded under section 120B.022, subdivision 1, paragraphs (b) and (c);
69.8 	(2) adequate yearly progress under section 120B.35, subdivision 2;
69.9 	(3) preparation for postsecondary academic and career opportunities under section 
69.10 	120B.35, subdivision 3, paragraph (c), clause (1);
69.11 	(4) rigorous coursework completed under section 120B.35, subdivision 3, paragraph 
69.12 	(c), clause (2); or
69.13 	(5) school safety and students' engagement and connection at school under section 
69.14 	120B.35, subdivision 3, paragraph (d).
69.15 		Subd. 4.Evaluation. The commissioner must evaluate the efficacy of district 
69.16 	plans in reducing the disparity in student academic achievement among all racial and 
69.17 	ethnic categories of students and realizing racial and economic integration and report the 
69.18 	commissioner's findings to the kindergarten through grade 12 education committees of the 
69.19 	legislature by February 1 every fourth year beginning February 1, 2017.

69.20 	EFFECTIVE DATE. This section is effective for fiscal year 2014 and later.

69.21 	Sec. 14. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
69.22 		Subdivision 1.Eligibility. A school district is eligible for achievement and 
69.23 	integration revenue under this section if the district has a biennial achievement and 
69.24 	integration plan approved by the department under section 124D.861. Priority for funding 
69.25 	must be given to eligible school districts that include methods that have been effective in 
69.26 	reducing disparities in student achievement in the district's biennial plan.
69.27 		Subd. 2.Achievement and integration revenue. (a) For fiscal year 2014, initial 
69.28 	achievement and integration revenue for an eligible district equals the lesser of the 
69.29 	district's expenditure for the fiscal year under its budget according to subdivision 1a or the 
69.30 	greater of: (1) 90 percent of the district's integration revenue for fiscal year 2013 under 
69.31 	Minnesota Statutes 2012, section 124D.86, or (2) the sum of: (i) $327 times the district's 
69.32 	adjusted pupil units for the prior fiscal year computed using the pupil unit weights effective 
69.33 	under section 126C.05 for fiscal year 2015 and later, times the district's enrollment of 
69.34 	protected students as a percent of its total enrollment on October 1 of the prior fiscal year, 
69.35 	plus (ii) $100 times the district's adjusted pupil units for the prior fiscal year computed 
70.1 	using the pupil unit weights effective under section 126C.05 for fiscal year 2015 and later 
70.2 	times the district's enrollment of protected students as a percent of its total enrollment on 
70.3 	October 1 of the prior fiscal year times the district's focus rating for the prior fiscal year 
70.4 	under Minnesota's 2012 Elementary and Secondary Education Act flexibility request.
70.5 	(b) For fiscal year 2015 and later, initial achievement and integration revenue for 
70.6 	an eligible district equals the lesser of the district's expenditure for the fiscal year under 
70.7 	its budget according to subdivision 1a or the greater of: (1) 63 percent of the district's 
70.8 	integration revenue for fiscal year 2013 under Minnesota Statutes 2012, section 124D.86, 
70.9 	or (2) the sum of: (i) $229 times the district's adjusted pupil units for the prior fiscal year 
70.10 	computed using the pupil unit weights effective under section 126C.05 for fiscal year 2015 
70.11 	and later, times the district's enrollment of protected students as a percent of its total 
70.12 	enrollment on October 1 of the prior fiscal year, plus (ii) $70 times the district's adjusted 
70.13 	pupil units for the prior fiscal year computed using the pupil unit weights effective under 
70.14 	section 126C.05 for fiscal year 2015 and later, times the district's enrollment of protected 
70.15 	students as a percent of its total enrollment on October 1 of the prior fiscal year times the 
70.16 	district's focus rating for the prior fiscal year under Minnesota's 2012 Elementary and 
70.17 	Secondary Education Act flexibility request.
70.18 	(c) In each year, .02 percent of each district's initial achievement and integration 
70.19 	revenue is transferred to the Department of Education for the oversight and accountability 
70.20 	activities required under this section and section 124D.861.
70.21 	(d) A district that did not meet its achievement goals established in section 124D.861 
70.22 	for the previous biennium must report to the commissioner the reasons why the goals were 
70.23 	not met. The district must submit a two-year improvement plan to achieve the unmet goals 
70.24 	from its achievement and integration plan. A district that does not meet its goals in the 
70.25 	improvement plan must have its initial achievement and integration revenue reduced by 
70.26 	20 percent for the current year.
70.27 	(e) Any revenue saved by the reductions in paragraph (d) must be proportionately 
70.28 	reallocated on a per adjusted pupil unit basis to all districts that met their achievement 
70.29 	goals in the previous biennium.
70.30 		Subd. 3.Achievement and integration aid. A district's achievement and 
70.31 	integration aid for fiscal year 2014 equals the difference between the district's achievement 
70.32 	and integration revenue and its achievement and integration levy. A district's achievement 
70.33 	and integration aid for fiscal year 2015 and later equals the district's achievement and 
70.34 	integration revenue.
70.35 		Subd. 4.Achievement and integration levy.  For fiscal year 2014 only, a district 
70.36 	may levy an amount equal to 30 percent of the district's achievement and integration 
71.1 	revenue as defined in subdivision 2. The Department of Education must adjust the levy 
71.2 	for taxes payable in 2014 by the difference between the levy under this section and the 
71.3 	amount levied by the district under Laws 2011, First Special Session chapter 11, article 2, 
71.4 	section 49, paragraph (f).
71.5 		Subd. 5.Revenue reserved. Integration revenue received under this section must 
71.6 	be reserved and used only for the programs authorized in subdivision 6.
71.7 		Subd. 6.Revenue uses. At least 80 percent of a district's achievement and 
71.8 	integration revenue received under this section must be used for innovative and integrated 
71.9 	learning environments, family engagement activities, and other approved programs 
71.10 	providing direct services to students. Up to 20 percent of the revenue may be used for 
71.11 	professional development and staff development activities, and not more than ten percent 
71.12 	of this share of the revenue may be used for administrative expenditures.

71.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
71.14 	and later.

71.15 	Sec. 15. Minnesota Statutes 2012, section 260C.007, subdivision 19, is amended to read:
71.16 		Subd. 19.Habitual truant. "Habitual truant" means a child under the age of 1617 
71.17 	years who is absent from attendance at school without lawful excuse for seven school days 
71.18 	per school year if the child is in elementary school or for one or more class periods on 
71.19 	seven school days per school year if the child is in middle school, junior high school, or 
71.20 	high school, or a child who is 16 or 17 years of age who is absent from attendance at school 
71.21 	without lawful excuse for one or more class periods on seven school days per school year
71.22 	 and who has not lawfully withdrawn from school under section 120A.22, subdivision 8.

71.23 	EFFECTIVE DATE. This section is effective for the 2014-2015 school year and 
71.24 	later.

71.25 	Sec. 16. Laws 2011, First Special Session chapter 11, article 2, section 13, the effective 
71.26 	date, is amended to read:

71.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
71.28 	and applies beginning in the 2014-20152015-2016 school year and later.

71.29 	Sec. 17. Laws 2011, First Special Session chapter 11, article 2, section 14, the effective 
71.30 	date, is amended to read:

72.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
72.2 	and applies beginning in the 2014-20152015-2016 school year and later.

72.3 	Sec. 18. Laws 2011, First Special Session chapter 11, article 2, section 18, the effective 
72.4 	date, is amended to read:

72.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
72.6 	and applies beginning in the 2014-20152015-2016 school year and later.

72.7 	Sec. 19. Laws 2011, First Special Session chapter 11, article 2, section 19, the effective 
72.8 	date, is amended to read:

72.9 	EFFECTIVE DATE. This section is effective the day following final enactment 
72.10 	and applies beginning in the 2014-20152015-2016 school year and later.

72.11 	Sec. 20. APPROPRIATIONS.
 72.12 		Subdivision 1.Department of Education. The sums indicated in this section are 
72.13 	appropriated from the general fund to the Department of Education for the fiscal years 
72.14 	designated.
72.15 		Subd. 2.Integration aid. For integration aid under Minnesota Statutes, section 
72.16 	124D.86, and Minnesota Statutes, section 124D.862:

72.17		$
	75,495,000
	.....
	2014
	
72.18		$
	68,617,000
	.....
	2015
	
72.19 	The 2014 appropriation includes $17,197,000 for 2013 and $58,298,000 for 2014.
72.20 	The 2015 appropriation includes $9,886,000 for 2014 and $58,731,000 for 2015.
72.21 		Subd. 3.Literacy incentive aid. For literacy incentive aid under Minnesota 
72.22 	Statutes, section 124D.98:

72.23		$
	52,035,000
	.....
	2014
	
72.24		$
	53,812,000
	.....
	2015
	
72.25 	The 2014 appropriation includes $6,607,000 for 2013 and $45,428,000 for 2014.
72.26 	The 2015 appropriation includes $7,704,000 for 2014 and $46,108,000 for 2015.
72.27 		Subd. 4.Interdistrict desegregation or integration transportation grants. For 
72.28 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
72.29 	section 124D.87:

73.1		$
	13,968,000
	.....
	2014
	
73.2		$
	14,712,000
	.....
	2015
	
73.3 		Subd. 5.Success for the future. For American Indian success for the future grants 
73.4 	under Minnesota Statutes, section 124D.81:

73.5		$
	2,118,000
	.....
	2014
	
73.6		$
	2,137,000
	.....
	2015
	
73.7 	The 2014 appropriation includes $290,000 for 2013 and $1,828,000 for 2014.
73.8 	The 2015 appropriation includes $309,000 for 2014 and $1,828,000 for 2015.
73.9 		Subd. 6.American Indian teacher preparation grants. For joint grants to assist 
73.10 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

73.11		$
	190,000
	.....
	2014
	
73.12		$
	190,000
	.....
	2015
	
73.13 		Subd. 7.Tribal contract schools. For tribal contract school aid under Minnesota 
73.14 	Statutes, section 124D.83:

73.15		$
	2,052,000
	.....
	2014
	
73.16		$
	2,190,000
	.....
	2015
	
73.17 	The 2014 appropriation includes $266,000 for 2013 and $1,786,000 for 2014.
73.18 	The 2015 appropriation includes $303,000 for 2014 and $1,887,000 for 2015.
73.19 		Subd. 8.Early childhood programs at tribal schools. For early childhood family 
73.20 	education programs at tribal contract schools under Minnesota Statutes, section 124D.83, 
73.21 	subdivision 4:

73.22		$
	68,000
	.....
	2014
	
73.23		$
	68,000
	.....
	2015
	
73.24 		Subd. 9.Examination fees; teacher training and support programs. (a) For 
73.25 	students' advanced placement and international baccalaureate examination fees under 
73.26 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
73.27 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
73.28 	subdivision 1:

73.29		$
	4,500,000
	.....
	2014
	
73.30		$
	4,500,000
	.....
	2015
	
73.31 	(b) The advanced placement program shall receive 75 percent of the appropriation 
73.32 	each year and the international baccalaureate program shall receive 25 percent of the 
73.33 	appropriation each year. The department, in consultation with representatives of the 
74.1 	advanced placement and international baccalaureate programs selected by the Advanced 
74.2 	Placement Advisory Council and the Minnesota Association of IB World Schools, 
74.3 	respectively, shall determine the amounts of the expenditures each year for examination 
74.4 	fees and training and support programs for each program.
74.5 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
74.6 	$500,000 each year is for teachers to attend subject matter summer training programs 
74.7 	and follow-up support workshops approved by the advanced placement or international 
74.8 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
74.9 	advanced placement or international baccalaureate summer training program or workshop 
74.10 	shall be the same. The commissioner shall determine the payment process and the amount 
74.11 	of the subsidy.
74.12 	(d) The commissioner shall pay all examination fees for all students of low-income 
74.13 	families under Minnesota Statutes, section 120B.13, subdivision 3, and, to the extent 
74.14 	of available appropriations, shall also pay examination fees for students sitting for an 
74.15 	advanced placement examination, international baccalaureate examination, or both.
74.16 	Any balance in the first year does not cancel but is available in the second year.
74.17 		Subd. 10.Concurrent enrollment program. For concurrent enrollment programs 
74.18 	under Minnesota Statutes, section 124D.091:

74.19		$
	2,000,000
	.....
	2014
	
74.20		$
	2,000,000
	.....
	2015
	
74.21 	If the appropriation is insufficient, the commissioner must proportionately reduce 
74.22 	the aid payment to each district.
74.23 	Any balance in the first year does not cancel but is available in the second year.
74.24 		Subd. 11.Collaborative urban educator. For the collaborative urban educator 
74.25 	grant program:

74.26		$
	528,000
	.....
	2014
	
74.27		$
	528,000
	.....
	2015
	
74.28 	$200,000 each year is for the Southeast Asian teacher program at Concordia 
74.29 	University, St. Paul; $164,000 each year is for the collaborative educator program at 
74.30 	the University of St. Thomas; and $164,000 each year is for the Center for Excellence 
74.31 	in Urban Teaching at Hamline University.
74.32 	Any balance in the first year does not cancel but is available in the second year.
74.33 	Each institution shall prepare for the legislature, by January 15 of each year, a 
74.34 	detailed report regarding the funds used. The report must include the number of teachers 
74.35 	prepared as well as the diversity for each cohort of teachers produced.
75.1 		Subd. 12.ServeMinnesota program. For funding ServeMinnesota programs under 
75.2 	Minnesota Statutes, sections 124D.37 to 124D.45:

75.3		$
	900,000
	.....
	2014
	
75.4		$
	900,000
	.....
	2015
	
75.5 	A grantee organization may provide health and child care coverage to the dependents 
75.6 	of each participant enrolled in a full-time ServeMinnesota program to the extent such 
75.7 	coverage is not otherwise available.
75.8 		Subd. 13.Student organizations. For student organizations:

75.9		$
	725,000
	.....
	2014
	
75.10		$
	725,000
	.....
	2015
	
75.11 	$46,000 each year is for student organizations serving health occupations (HOSA).
75.12 	$43,000 each year is for student organizations serving service occupations (HERO).
75.13 	$100,000 each year is for student organizations serving trade and industry 
75.14 	occupations (Skills USA, secondary and postsecondary).
75.15 	$95,000 each year is for student organizations serving business occupations (BPA, 
75.16 	secondary and postsecondary).
75.17 	$150,000 each year is for student organizations serving agriculture occupations 
75.18 	(FFA, PAS).
75.19 	$142,000 each year is for student organizations serving family and consumer science 
75.20 	occupations (FCCLA).
75.21 	$109,000 each year is for student organizations serving marketing occupations 
75.22 	(DECA and DECA collegiate).
75.23 	$40,000 each year is for the Minnesota Foundation for Student Organizations.
75.24 	Any balance in the first year does not cancel but is available in the second year.
75.25 		Subd. 14.Early childhood literacy programs. For early childhood literacy 
75.26 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

75.27		$
	4,875,000
	.....
	2014
	
75.28		$
	4,875,000
	.....
	2015
	
75.29 	Up to $4,875,000 each year is for leveraging federal and private funding to support 
75.30 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
75.31 	ServeMinnesota, including costs associated with the training and teaching of early literacy 
75.32 	skills to children age three to grade 3 and the evaluation of the impact of the program 
75.33 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
75.34 	Any balance in the first year does not cancel but is available in the second year.
76.1 		Subd. 15.Minnesota math corps program. For the Minnesota math corps program 
76.2 	under Minnesota Statutes, section 124D.42, subdivision 9.

76.3		$
	750,000
	.....
	2014
	
76.4		$
	750,000
	.....
	2015
	
76.5 	Any unexpended balance in the first year does not cancel but is available in the 
76.6 	second year.
76.7 		Subd. 16.Alternative compensation. For alternative teacher compensation aid 
76.8 	under Minnesota Statutes, section 122A.415, subdivision 4:

76.9		$
	59,711,000
	.....
	2015
	
76.10 	The 2015 appropriation includes $0 for 2014 and $59,711,000 for 2015.
76.11 		Subd. 17.Teacher development and evaluation pilot grant program. For 
76.12 	grants to school districts to participate in the teacher development and evaluation pilot 
76.13 	grant program:

76.14		$
	683,000
	.....
	2014
	
76.15 	This is a onetime appropriation.
76.16 		Subd. 18.Career and technical aid. For career and technical aid under Minnesota 
76.17 	Statutes, section 124D.4531, subdivision 1b:

76.18		$
	7,551,000
	.....
	2014
	
76.19		$
	8,798,000
	.....
	2015
	
76.20 	The 2014 appropriation includes $0 for 2014 and $7,551,000 for 2015.
76.21 	The 2015 appropriation includes $1,280,000 for 2014 and $7,518,000 for 2015.

76.22 	ARTICLE 4
76.23 	CHARTER SCHOOLS

76.24 	Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 14, is amended to 
76.25 	read:
76.26 		Subd. 14.Annual public reports. (a) A charter school must publish an annual report 
76.27 	approved by the board of directors. The annual report must at least include information 
76.28 	on school enrollment, student attrition, governance and management, staffing, finances, 
76.29 	academic performance, operational performance, innovative practices and implementation, 
76.30 	and future plans. A charter school must distribute the annual report by publication, mail, 
76.31 	or electronic means to the commissioner, authorizer, school employees, and parents and 
77.1 	legal guardians of students enrolled in the charter school and must also post the report on 
77.2 	the charter school's official Web site. The reports are public data under chapter 13.
77.3 	(b) An authorizer must annually compile the individual reports of all schools it 
77.4 	charters and that are published in accordance with paragraph (a), and submit a portfolio 
77.5 	report to the commissioner in the form and manner determined by the commissioner and 
77.6 	to the public. An authorizer's annual portfolio report must include:
77.7 	(1) the academic and financial performance of all operating charter schools overseen 
77.8 	by the authorizer;
77.9 	(2) the status of the authorizer's charter school portfolio, identifying all charter 
77.10 	schools in each of the following categories: approved, but not open; open and operating; 
77.11 	and closed, including the year closed and reason for closure;
77.12 	(3) the authorizing function provided by the authorizer to the charter schools within 
77.13 	its portfolio, including the authorizer's financial plan that is submitted to the commissioner 
77.14 	under this section; and
77.15 	(4) the process for overseeing and evaluating all charter schools it authorizes to 
77.16 	ensure compliance with all statutory and contractual obligations to increase students' 
77.17 	academic performance and achievement.

77.18 	Sec. 2. Minnesota Statutes 2012, section 124D.10, subdivision 23a, is amended to read:
77.19 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
77.20 	entering a lease of real property with a related party unless the lessor is a school district, a 
77.21 	nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the 
77.22 	lease cost is reasonable under section 124D.11, subdivision 4, clause (1).
77.23 	(b) For purposes of this section and section 124D.11:
77.24 	(1) "related party" means an affiliate or immediate relative of the other party in 
77.25 	question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
77.26 	(2) "affiliate" means a person that directly or indirectly, through one or more 
77.27 	intermediaries, controls, is controlled by, or is under common control with another person;
77.28 	(3) "immediate family" means an individual whose relationship by blood, marriage, 
77.29 	adoption, or partnering is no more remote than first cousin;
77.30 	(4) "person" means an individual or entity of any kind; and
77.31 	(5) "control" means the ability to affect the management, operations, or policy 
77.32 	actions or decisions of a person, whether through ownership of voting securities, by 
77.33 	contract, or otherwise.
78.1 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
78.2 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
78.3 	section 124D.10, subdivision 23a."
78.4 	(d) If a charter school enters into as lessee a lease with a related party and the 
78.5 	charter school subsequently closes, the commissioner has the right to recover from the 
78.6 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
78.7 	subdivision 4, clause (1).

78.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2013 
78.9 	and later.

78.10 	Sec. 3. Minnesota Statutes 2012, section 124D.11, subdivision 1, is amended to read:
78.11 		Subdivision 1.General education revenue. (a) General education revenue must 
78.12 	be paid to a charter school as though it were a district. The general education revenue 
78.13 	for each adjusted marginal cost pupil unit is the state average general education revenue 
78.14 	per pupil unit, plus the referendum equalization aid allowance in the pupil's district of 
78.15 	residence, minus an amount equal to the product of the formula allowance according to 
78.16 	section 126C.10, subdivision 2, times .0485 .0465, calculated without basic skills revenue, 
78.17 	extended time revenue, alternative teacher compensation revenue,equity revenue, teacher 
78.18 	development and evaluation revenue, pension adjustment revenue, transition revenue, and 
78.19 	transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic 
78.20 	alternative teacher compensation aid according to section 126C.10, subdivision 34,equity 
78.21 	revenue, pension adjustment revenue, and transition revenue as though the school were a 
78.22 	school district. The general education revenue for each extended time marginal cost
78.23 	 pupil unit equals $4,378 $4,722.
78.24 	(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, 
78.25 	general education revenue shall be computed using the number of adjusted pupil units 
78.26 	in the current fiscal year.

78.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
78.28 	and later.

78.29 	Sec. 4. Minnesota Statutes 2012, section 124D.11, subdivision 2, is amended to read:
78.30 		Subd. 2.Transportation revenue. Transportation revenue must be paid to a charter 
78.31 	school that provides transportation services according to section 124D.10, subdivision 16, 
78.32 	according to this subdivision. Transportation aid shall equal transportation revenue.
79.1 	In addition to the revenue under subdivision 1, a charter school providing 
79.2 	transportation services must receive general education aid equal to the sum of the product 
79.3 	of (i) an amount equal to the product of the formula allowance according to section 
79.4 	126C.10, subdivision 2, times .0485 .0465, plus the transportation sparsity allowance for 
79.5 	the school district in which the charter school is located times (ii) the adjusted marginal 
79.6 	cost pupil units, plus the product of $223 times the extended time marginal cost pupil units.

79.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
79.8 	and later.

79.9 	Sec. 5. Minnesota Statutes 2012, section 124D.11, subdivision 4, is amended to read:
79.10 		Subd. 4.Building lease aid. (a) When a charter school finds it economically 
79.11 	advantageous to rent or lease a building or land for any instructional purposes and it 
79.12 	determines that the total operating capital revenue under section 126C.10, subdivision 
79.13 	13, is insufficient for this purpose, it may apply to the commissioner for building lease 
79.14 	aid for this purpose. The commissioner must review the lease as provided in section 
79.15 	124D.10, subdivision 17, and either approve or deny a lease aid application using the 
79.16 	following criteria:
79.17 	(1) the reasonableness of the price based on current market values;
79.18 	(2) the extent to which the lease conforms to applicable state laws and rules; and
79.19 	(3) the appropriateness of the proposed lease in the context of the space needs and 
79.20 	financial circumstances of the charter school.
79.21 	A charter school must not use the building lease aid it receives for custodial, maintenance 
79.22 	service, utility, or other operating costs. 
79.23 	(b) The amount of annual building lease aid per pupil unit served for a charter school 
79.24 	for any year leasing a building from any private, nonprofit, nonsectarian organization; any 
79.25 	private property owner or any sectarian organization; or an affiliated building corporation, 
79.26 	school district, or other governmental entity on which debt or capital lease obligations 
79.27 	remain based on original issuance for building purchase, construction, or renovation shall 
79.28 	not exceed the lesser of (a) (1) 90 percent of the approved cost or (b) (2) the product of the 
79.29 	pupil units served for the current school year times $1,200 $1,314.
79.30 	(c) The annual building lease contract amount for a charter school leasing from a 
79.31 	related nonprofit organization, a parent company, an affiliated building corporation, a 
79.32 	school district, a charter school, or other governmental entity on which the original debt 
79.33 	or capital lease obligations related to the original building purchase, construction, or 
79.34 	renovation have been retired shall be no greater than the lesser of (1) $3 per square foot; 
80.1 	or (2) the product of pupil units served for the current school year times $200. Lease 
80.2 	aid is calculated as 90 percent of the lesser of (i) $3 per square foot, or (ii) the product 
80.3 	of pupil units served times $200.
80.4 	(d) The annual lease contract and lease aid for a site with ownership as provided in 
80.5 	paragraph (c) occupied by a charter school, where the building is expanded, improved, or 
80.6 	sold, may be subject to the provisions of paragraph (c).

80.7 	EFFECTIVE DATE. This section is effective July 1, 2014.

80.8 	Sec. 6. APPROPRIATIONS.
 80.9 		Subdivision 1.Department of Education. The sums indicated in this section are 
80.10 	appropriated from the general fund to the Department of Education for the fiscal years 
80.11 	designated.
80.12 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
80.13 	Statutes, section 124D.11, subdivision 4: 

80.14		$
	54,384,000
	.....
	2014
	
80.15		$
	58,020,000
	.....
	2015
	
80.16 	The 2014 appropriation includes $6,819,000 for 2013 and $47,565,000 for 2014.
80.17 	The 2015 appropriation includes $8,066,000 for 2014 and $49,954,000 for 2015.

80.18 	ARTICLE 5
80.19 	SPECIAL PROGRAMS

80.20 	Section 1. Minnesota Statutes 2012, section 124D.11, subdivision 5, is amended to read:
80.21 		Subd. 5.Special education aid. (a) Except as provided in subdivision 2, special 
80.22 	education aid must be paid to a charter school according to section 125A.76, as though 
80.23 	it were a school district.
80.24 	(b) For fiscal year 2006, the charter school may charge tuition to the district of 
80.25 	residence as follows:
80.26 	(1) if the charter school does not receive general education revenue on behalf of 
80.27 	the student according to subdivision 1, tuition shall be charged as provided in section 
80.28 	125A.11; or
80.29 	(2) if the charter school receives general education revenue on behalf of the student 
80.30 	according to subdivision 1, tuition shall be charged as provided in section 127A.47, 
80.31 	subdivision 7, paragraph (d).
81.1 	(c) (b) For fiscal year 2007 2015 and later, the special education aid paid to the 
81.2 	charter school shall be adjusted as follows:
81.3 	(1) if the charter school does not receive general education revenue on behalf of 
81.4 	the student according to subdivision 1, the aid shall be adjusted as provided in section 
81.5 	125A.11; or
81.6 	(2) if the charter school receives general education revenue on behalf of the student 
81.7 	according to subdivision 1, the aid shall be adjusted as provided in section 127A.47, 
81.8 	subdivision 7, paragraph paragraphs (b) to (d).

81.9 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

81.10 	Sec. 2. Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:
81.11 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
81.12 	when a school district provides instruction and services outside the district of residence, 
81.13 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
81.14 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
81.15 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
81.16 	the sum of (1) the actual cost of providing special instruction and services to the child 
81.17 	including a proportionate amount for special transportation and unreimbursed building 
81.18 	lease and debt service costs for facilities used primarily for special education, plus (2) 
81.19 	the amount of general education revenue and referendum aid attributable to the pupil, 
81.20 	minus (3) the amount of special education aid for children with a disability received 
81.21 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
81.22 	outside the regular classroom for more than 60 percent of the school day, the amount of 
81.23 	general education revenue and referendum aid, excluding portions attributable to district 
81.24 	and school administration, district support services, operations and maintenance, capital 
81.25 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
81.26 	the pupil receives special instruction and services outside of the regular classroom. If 
81.27 	the boards involved do not agree upon the tuition rate, either board may apply to the 
81.28 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
81.29 	a date for a hearing or request a written statement from each board, giving each board 
81.30 	at least ten days' notice, and after the hearing or review of the written statements the 
81.31 	commissioner must make an order fixing the tuition rate, which is binding on both school 
81.32 	districts. General education revenue and referendum equalization aid attributable to a 
81.33 	pupil must be calculated using the resident district's average general education revenue 
81.34 	and referendum equalization aid per adjusted pupil unit.
82.1 	(b) (a) For fiscal year 2007 2015 and later, when a school district provides special 
82.2 	instruction and services for a pupil with a disability as defined in section 125A.02 outside 
82.3 	the district of residence, excluding a pupil for whom an adjustment to special education 
82.4 	aid is calculated according to section 127A.47, subdivision 7, paragraph (e) paragraphs (b) 
82.5 	to (d), special education aid paid to the resident district must be reduced by an amount 
82.6 	equal to (1) the actual cost of providing special instruction and services to the pupil, 
82.7 	including a proportionate amount for special transportation and unreimbursed building 
82.8 	lease and debt service costs for facilities used primarily for special education, plus (2) 
82.9 	the amount of general education revenue and referendum equalization aid attributable 
82.10 	to that pupil, calculated using the resident district's average general education revenue 
82.11 	and referendum equalization aid per adjusted pupil unit excluding basic skills revenue, 
82.12 	elementary sparsity revenue and secondary sparsity revenue, minus (3) the amount of 
82.13 	special education aid for children with a disability under section 125A.76 received on 
82.14 	behalf of that child, minus (4) if the pupil receives special instruction and services outside 
82.15 	the regular classroom for more than 60 percent of the school day, the amount of general 
82.16 	education revenue and referendum equalization aid, excluding portions attributable to 
82.17 	district and school administration, district support services, operations and maintenance, 
82.18 	capital expenditures, and pupil transportation, attributable to that pupil for the portion of 
82.19 	time the pupil receives special instruction and services outside of the regular classroom, 
82.20 	calculated using the resident district's average general education revenue and referendum 
82.21 	equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity 
82.22 	revenue and secondary sparsity revenue and the serving district's basic skills revenue, 
82.23 	elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit. 
82.24 	Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a 
82.25 	fiscal agent school district, the general education revenue and referendum equalization 
82.26 	aid attributable to a pupil must be calculated using the resident district's average general 
82.27 	education revenue and referendum equalization aid excluding compensatory revenue, 
82.28 	elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid 
82.29 	to the district or cooperative providing special instruction and services for the pupil 
82.30 	must be increased by the amount of the reduction in the aid paid to the resident district. 
82.31 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
82.32 	7, shall be recognized and reported as revenues and expenditures on the resident school 
82.33 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
82.34 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
82.35 	shall be made to other state aid due to the district.
83.1 	(c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 127A.47, 
83.2 	subdivision 7, paragraphs (b) to (d) and (e), a charter school where more than 30 percent 
83.3 	of enrolled students receive special education and related services, a site approved under 
83.4 	section 125A.515, an intermediate district, a special education cooperative, or a school 
83.5 	district that served as the applicant agency for a group of school districts for federal 
83.6 	special education aids for fiscal year 2006 may apply to the commissioner for authority to 
83.7 	charge the resident district an additional amount to recover any remaining unreimbursed 
83.8 	costs of serving pupils with a disability. The application must include a description of the 
83.9 	costs and the calculations used to determine the unreimbursed portion to be charged to the 
83.10 	resident district. Amounts approved by the commissioner under this paragraph must be 
83.11 	included in the tuition billings or aid adjustments under paragraph (a) or (b), or section 
83.12 	127A.47, subdivision 7, paragraph (d) or (e) paragraphs (b) to (d), as applicable.
83.13 	(d) (c) For purposes of this subdivision and section 127A.47, subdivision 7, 
83.14 	paragraphs (d) and (e), "general education revenue and referendum equalization aid" 
83.15 	means the sum of the general education revenue according to section 126C.10, subdivision 
83.16 	1, excluding alternative teacher compensation revenue, plus the referendum equalization 
83.17 	aid according to section 126C.17, subdivision 7, as adjusted according to section 127A.47, 
83.18 	subdivision 7, paragraphs (a) to (c).

83.19 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

83.20 	Sec. 3. Minnesota Statutes 2012, section 125A.76, subdivision 4, is amended to read:
83.21 		Subd. 4.State total special education aid. The state total special education aid 
83.22 	equals $529,247,000 for fiscal year 2007, $694,063,000 for fiscal year 2008, $719,470,000 
83.23 	for fiscal year 2009, $735,693,000 for fiscal year 2010, and $786,586,000 for fiscal year 
83.24 	2011 $869,357,000 for fiscal year 2013, $916,575,000 for fiscal year 2014, $976,895,000 
83.25 	for fiscal year 2015, $1,037,655,000 for fiscal year 2016, and $1,100,577,000 for fiscal 
83.26 	year 2017. The state total special education aid for later fiscal years equals:
83.27 	(1) the state total special education aid for the preceding fiscal year; times
83.28 	(2) the program growth factor; times
83.29 	(3) the greater of one, or the ratio of the state total average daily membership for the 
83.30 	current fiscal year to the state total average daily membership for the preceding fiscal year.

83.31 	Sec. 4. Minnesota Statutes 2012, section 125A.79, subdivision 1, is amended to read:
83.32 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
83.33 	subdivision apply.
83.34 	(a) "Unreimbursed special education cost" means the sum of the following:
84.1 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
84.2 	transportation services eligible for revenue under section 125A.76; plus
84.3 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
84.4 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
84.5 	(3) revenue for teachers' salaries, contracted services, supplies, equipment, and 
84.6 	transportation services under section 125A.76; minus
84.7 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
84.8 	eligible for revenue under section 125A.76, subdivision 2.
84.9 	(b) "General revenue" for a school district means the sum of the general education 
84.10 	revenue according to section 126C.10, subdivision 1, excludingalternative teacher 
84.11 	compensation revenue, minus transportation sparsity revenue minus total operating 
84.12 	capital revenue. "General revenue" for a charter school means the sum of the general 
84.13 	education revenue according to section 124D.11, subdivision 1, and transportation revenue 
84.14 	according to section 124D.11, subdivision 2, excluding alternative teacher compensation 
84.15 	revenue, minus referendum equalization aid minus transportation sparsity revenue minus 
84.16 	operating capital revenue.
84.17 	(c) "Average daily membership" has the meaning given it in section 126C.05.
84.18 	(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.

84.19 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

84.20 	Sec. 5. Minnesota Statutes 2012, section 125A.79, subdivision 8, is amended to read:
84.21 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
84.22 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
84.23 	treatment facility by court action in a state that does not have a reciprocity agreement with 
84.24 	the commissioner under section 125A.155, the resident school district shall submit the 
84.25 	balance of the tuition bills, minus the general education revenue, excluding basic skills 
84.26 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
84.27 	attributable to the pupil, calculated using the resident district's average general education 
84.28 	revenue and referendum equalization aid per adjusted pupil unit minus the special 
84.29 	education contracted services initial revenue attributable to the pupil.

84.30 	EFFECTIVE DATE. This section is effective for fiscal year 2015 and later.

84.31 	Sec. 6. APPROPRIATIONS.
 85.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
85.2 	appropriated from the general fund to the Department of Education for the fiscal years 
85.3 	designated.
85.4 		Subd. 2.Special education; regular. For special education aid under Minnesota 
85.5 	Statutes, section 125A.75:

85.6		$
	901,904,000
	.....
	2014
	
85.7		$
	 968,149,000
	.....
	2015
	
85.8 	The 2014 appropriation includes $118,232,000 for 2013 and $783,672,000 for 2014.
85.9 	The 2015 appropriation includes $132,903,000 for 2014 and $835,246,000 for 2015.
85.10 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
85.11 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
85.12 	within the district boundaries for whom no district of residence can be determined:

85.13		$
	1,655,000
	.....
	2014
	
85.14		$
	1,752,000
	.....
	2015
	
85.15 	If the appropriation for either year is insufficient, the appropriation for the other 
85.16 	year is available.
85.17 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
85.18 	services under Minnesota Statutes, section 125A.75, subdivision 1:

85.19		$
	342,000
	.....
	2014
	
85.20		$
	355,000
	.....
	2015
	
85.21 	The 2014 appropriation includes $45,000 for 2013 and $297,000 for 2014.
85.22 	The 2015 appropriation includes $50,000 for 2014 and $305,000 for 2015.
85.23 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
85.24 	Statutes, section 125A.79, subdivision 7:

85.25		$
	117,841,000
	.....
	2014
	
85.26		$
	121,897,000
	.....
	2015
	
85.27 	The 2014 appropriation includes $42,030,000 for 2013 and $75,811,000 for 2014.
85.28 	The 2015 appropriation includes $44,009,000 for 2014 and $77,888,000 for 2015.
85.29 		Subd. 6.Court-placed special education revenue. For reimbursing serving school 
85.30 	districts for unreimbursed eligible expenditures attributable to children placed in the serving 
85.31 	school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

85.32		$
	54,000
	.....
	2014
	
85.33		$
	55,000
	.....
	2015
	
86.1 		Subd. 7.Special education out-of-state tuition. For special education out-of-state 
86.2 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

86.3		$
	250,000
	.....
	2014
	
86.4		$
	250,000
	.....
	2015

86.5 	Sec. 7.  REPEALER.
 86.6 	Minnesota Statutes 2012, sections 124D.454, subdivisions 10 and 11; and 125A.76, 
86.7 	subdivision 7, are repealed.

86.8 	ARTICLE 6
86.9 	FACILITIES AND TECHNOLOGY

86.10 	Section 1. Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:
86.11 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
86.12 	district equals the sum of the first tier equalized debt service levy and the second tier 
86.13 	equalized debt service levy.
86.14 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
86.15 	service equalization revenue times the lesser of one or the ratio of:
86.16 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
86.17 	the year before the year the levy is certified by the adjusted pupil units in the district for 
86.18 	the school year ending in the year prior to the year the levy is certified; to
86.19 	(2) $3,049 $3,550.
86.20 	(c) A district's second tier equalized debt service levy equals the district's second tier 
86.21 	debt service equalization revenue times the lesser of one or the ratio of:
86.22 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
86.23 	the year before the year the levy is certified by the adjusted pupil units in the district for 
86.24 	the school year ending in the year prior to the year the levy is certified; to
86.25 	(2) $7,622 $7,900.

86.26 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
86.27 	later.

86.28 	Sec. 2. Minnesota Statutes 2012, section 123B.54, is amended to read:
86.29 	123B.54 DEBT SERVICE APPROPRIATION.
86.30 	(a) $21,727,000 $25,191,000 in fiscal year 2014 2016 and $24,201,000 $22,773,000
86.31 	 in fiscal year 2015 2017 and later are appropriated from the general fund to the 
87.1 	commissioner of education for payment of debt service equalization aid under section 
87.2 	123B.53.
87.3 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
87.4 	money specifically appropriated for the same purpose in any year from any state fund.

87.5 	EFFECTIVE DATE. This section is effective for revenue in fiscal year 2015 and 
87.6 	later.

87.7 	Sec. 3. Minnesota Statutes 2012, section 123B.57, subdivision 4, is amended to read:
87.8 		Subd. 4.Health and safety levy. To receive health and safety revenue, a district 
87.9 	may levy an amount equal to the district's health and safety revenue as defined in 
87.10 	subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by 
87.11 	dividing the adjusted net tax capacity of the district for the year preceding the year the 
87.12 	levy is certified by the adjusted marginal cost pupil units in the district for the school year 
87.13 	to which the levy is attributable, to $2,796 $3,165.

87.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
87.15 	and later.

87.16 	Sec. 4. Minnesota Statutes 2012, section 123B.591, subdivision 2, is amended to read:
87.17 		Subd. 2.Deferred maintenance revenue. The deferred maintenance revenue for 
87.18 	an eligible school district equals the product of $60 $64 times the adjusted marginal cost
87.19 	 pupil units for the school year times the lesser of one or the ratio of the district's average 
87.20 	age of building space to 35 years.

87.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
87.22 	and later.

87.23 	Sec. 5. Minnesota Statutes 2012, section 123B.591, subdivision 3, is amended to read:
87.24 		Subd. 3.Deferred maintenance levy. To obtain deferred maintenance revenue for 
87.25 	fiscal year 2008 and later, a district may levy an amount not more than the product of its 
87.26 	deferred maintenance revenue for the fiscal year times the lesser of one or the ratio of its 
87.27 	adjusted net tax capacity per adjusted marginal cost pupil unit to $5,621 $5,965.

87.28 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
87.29 	and later.

87.30 	Sec. 6. Minnesota Statutes 2012, section 125B.26, subdivision 4, is amended to read:
88.1 		Subd. 4.District aid. For fiscal year 2006 and later, a district, charter school, 
88.2 	or intermediate school district's Internet access equity aid equals the district, charter 
88.3 	school, or intermediate school district's approved cost for the previous fiscal year 
88.4 	according to subdivision 1 exceeding $15 $16 times the district's adjusted marginal 
88.5 	cost pupil units for the previous fiscal year or no reduction if the district is part of an 
88.6 	organized telecommunications access cluster. Equity aid must be distributed to the 
88.7 	telecommunications access cluster for districts, charter schools, or intermediate school 
88.8 	districts that are members of the cluster or to individual districts, charter schools, or 
88.9 	intermediate school districts not part of a telecommunications access cluster.

88.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
88.11 	and later.

88.12 	Sec. 7. DISABLED ACCESS LEVY AUTHORITY; TRACY.
 88.13 	Notwithstanding the time limit in Minnesota Statutes, section 123B.58, subdivision 
88.14 	3, Independent School District No. 2904, Tracy, may levy its remaining disabled access 
88.15 	levy authority over two years, beginning with taxes payable in 2015.

88.16 	EFFECTIVE DATE. This section is effective for levies certified in 2014 and later.

88.17 	Sec. 8. ELEVATOR REPAIR LEVY; NORMAN COUNTY WEST SCHOOL 
88.18 	DISTRICT.
 88.19 	For taxes payable in 2015 and 2016, Independent School District No. 2527, 
88.20 	Norman County West, may levy for an amount not to exceed $27,500 in each year. The 
88.21 	proceeds of this levy must be used to refurbish an existing elevator with new electrical and 
88.22 	mechanical components.

88.23 	EFFECTIVE DATE. This section is effective for taxes payable in 2015 and 2016.

88.24 	Sec. 9. APPROPRIATIONS.
 88.25 		Subdivision 1.Department of Education. The sums indicated in this section are 
88.26 	appropriated from the general fund to the Department of Education for the fiscal years 
88.27 	designated.
88.28 		Subd. 2.Health and safety revenue. For health and safety aid according to 
88.29 	Minnesota Statutes, section 123B.57, subdivision 5:

88.30		$
	458,000
	.....
	2014
	
88.31		$
	435,000
	.....
	2015
	
89.1 	The 2014 appropriation includes $26,000 for 2013 and $432,000 for 2014.
89.2 	The 2015 appropriation includes $73,000 for 2014 and $362,000 for 2015.
89.3 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
89.4 	Statutes, section 123B.53, subdivision 6:

89.5		$
	18,909,000
	.....
	2014
	
89.6		$
	24,986,000
	.....
	2015
	
89.7 	The 2014 appropriation includes $2,397,000 for 2013 and $16,512,000 for 2014.
89.8 	The 2015 appropriation includes $2,800,000 for 2014 and $22,186,000 for 2015.
89.9 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
89.10 	according to Minnesota Statutes, section 123B.59, subdivision 1:

89.11		$
	19,114,000
	.....
	2014
	
89.12		$
	19,287,000
	.....
	2015
	
89.13 	The 2014 appropriation includes $2,623,000 for 2013 and $16,491,000 for 2014.
89.14 	The 2015 appropriation includes $2,796,000 for 2014 and $16,491,000 for 2015.
89.15 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
89.16 	access:

89.17		$
	3,750,000
	.....
	2014
	
89.18		$
	3,750,000
	.....
	2015
	
89.19 	If the appropriation amount is insufficient, the commissioner shall reduce the 
89.20 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
89.21 	revenue for fiscal years 2014 and 2015 shall be prorated.
89.22 	Any balance in the first year does not cancel but is available in the second year.
89.23 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
89.24 	Minnesota Statutes, section 123B.591, subdivision 4:

89.25		$
	3,532,000
	.....
	2014
	
89.26		$
	3,729,000
	.....
	2015
	
89.27 	The 2014 appropriation includes $456,000 for 2013 and $3,076,000 for 2014.
89.28 	The 2015 appropriation includes $521,000 for 2014 and $3,208,000 for 2015.

89.29 	ARTICLE 7
89.30 	NUTRITION, LIBRARIES, AND ACCOUNTING

89.31 	Section 1. Minnesota Statutes 2012, section 123B.75, subdivision 5, is amended to read:
90.1 		Subd. 5.Levy recognition. (a) For fiscal years 2009 and 2010, in June of each 
90.2 	year, the school district must recognize as revenue, in the fund for which the levy was 
90.3 	made, the lesser of:
90.4 	(1) the sum of May, June, and July school district tax settlement revenue received in 
90.5 	that calendar year, plus general education aid according to section 126C.13, subdivision 
90.6 	4, received in July and August of that calendar year; or
90.7 	(2) the sum of:
90.8 	(i) 31 percent of the referendum levy certified according to section 126C.17, in 
90.9 	calendar year 2000; and
90.10 	(ii) the entire amount of the levy certified in the prior calendar year according to 
90.11 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
90.12 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a), 
90.13 	and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
90.14 	(iii) zero percent of the amount of the levy certified in the prior calendar year for the 
90.15 	school district's general and community service funds, plus or minus auditor's adjustments, 
90.16 	not including the levy portions that are assumed by the state, that remains after subtracting 
90.17 	the referendum levy certified according to section 126C.17 and the amount recognized 
90.18 	according to item (ii).
90.19 	(b) For fiscal year 2011 and later years, in June of each year, the school district must 
90.20 	recognize as revenue, in the fund for which the levy was made, the lesser of:
90.21 	(1) the sum of May, June, and July school district tax settlement revenue received in 
90.22 	that calendar year, plus general education aid according to section 126C.13, subdivision 
90.23 	4, received in July and August of that calendar year; or
90.24 	(2) the sum of:
90.25 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
90.26 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
90.27 	according to section 126C.17 in calendar year 2000; plus
90.28 	(ii) the entire amount of the levy certified in the prior calendar year according to 
90.29 	section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue under 
90.30 	sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, subdivision 4, for 
90.31 	Special School District No. 1, Minneapolis, Independent School District No. 625, St. 
90.32 	Paul, and Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, 
90.33 	paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, 
90.34 	subdivision 6; plus
90.35 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
90.36 	school district's general and community service funds, plus or minus auditor's adjustments, 
91.1 	that remains after subtracting the referendum levy certified according to section 126C.17 
91.2 	and the amount recognized according to item (ii).

91.3 	Sec. 2. Minnesota Statutes 2012, section 124D.111, subdivision 1, is amended to read:
91.4 		Subdivision 1.School lunch aid computation. Each school year, the state must pay 
91.5 	participants in the national school lunch program the amount of 1214 cents for each full 
91.6 	paid, reduced reduced-price, and free student lunch served to students.

91.7 	EFFECTIVE DATE. This section is effective July 1, 2013.

91.8 	Sec. 3. Minnesota Statutes 2012, section 124D.111, is amended by adding a 
91.9 	subdivision to read:
91.10 		Subd. 4.Inability to pay. A school that provides meals under this section must not 
91.11 	deny a child lunch or provide that child with an alternative meal if that child qualifies for a 
91.12 	reduced-price meal and that child or that child's parent or guardian provides notice to the 
91.13 	school that the family does not have sufficient funds to pay for the lunch.

91.14 	Sec. 4. Minnesota Statutes 2012, section 124D.119, is amended to read:
91.15 	124D.119 SUMMER FOOD SERVICE REPLACEMENT AID.
91.16 	States funds are available to compensate department-approved summer food 
91.17 	program sponsors for reduced federal operating reimbursement rates under Public Law 
91.18 	104-193, the federal summer food service program. A sponsor is eligible for summer food 
91.19 	service replacement aid equal to the sum of the following amounts:. Reimbursement shall 
91.20 	be made on December 15 based on total meals served by each sponsor from the end of the 
91.21 	school year to the beginning of the next school year on a pro rata basis. 
91.22 	(1) for breakfast service, up to four cents per breakfast served by the sponsor during 
91.23 	the current program year;
91.24 	(2) for lunch or supper service, up to 14 cents per lunch or supper served by the 
91.25 	sponsor during the current program year; and
91.26 	(3) for supplement service, up to ten cents per supplement served by the sponsor 
91.27 	during the current program year.

91.28 	Sec. 5. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
91.29 		Subd. 2.Definitions. (a) "Other district receipts" means payments by county 
91.30 	treasurers pursuant to section 276.10, apportionments from the school endowment fund 
91.31 	pursuant to section 127A.33, apportionments by the county auditor pursuant to section 
92.1 	127A.34, subdivision 2, and payments to school districts by the commissioner of revenue 
92.2 	pursuant to chapter 298.
92.3 	(b) "Cumulative amount guaranteed" means the product of
92.4 	(1) the cumulative disbursement percentage shown in subdivision 3; times
92.5 	(2) the sum of
92.6 	(i) the current year aid payment percentage of the estimated aid and credit 
92.7 	entitlements paid according to subdivision 13; plus
92.8 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
92.9 	(iii) the other district receipts.
92.10 	(c) "Payment date" means the date on which state payments to districts are made 
92.11 	by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 
92.12 	or a weekday which is a legal holiday, the payment shall be made on the immediately 
92.13 	preceding business day. The commissioner may make payments on dates other than 
92.14 	those listed in subdivision 3, but only for portions of payments from any preceding 
92.15 	payment dates which could not be processed by the electronic funds transfer method due 
92.16 	to documented extenuating circumstances.
92.17 	(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 
92.18 	fiscal year 2011, and 60 in fiscal years 2012 and later 85.5 in fiscal year 2014 and later.

92.19 	Sec. 6. CYRUS AND MORRIS SCHOOL DISTRICT CONSOLIDATION.
 92.20 		Subdivision 1.Purpose. The legislature finds that an orderly, voluntary 
92.21 	consolidation of Independent School Districts Nos. 611, Cyrus, and 769, Morris, promotes 
92.22 	the well-being of the students and increases educational efficiency in those school districts.
92.23 		Subd. 2.Remediation costs. Independent School District No. 611, Cyrus, may 
92.24 	identify all health and safety remediation costs related to the demolition of the Cyrus 
92.25 	school building and submit those amounts to the commissioner of education for approval. 
92.26 	Any approved costs may be included either in the district's health and safety plan or in the 
92.27 	bonding authority authorized under subdivision 3.
92.28 		Subd. 3.Facility bonds. Independent School District No. 611, Cyrus, may issue 
92.29 	general obligation bonds without an election under Minnesota Statutes, chapter 475, after 
92.30 	a public meeting of the school board with notice given by mail according to Minnesota 
92.31 	Statutes, section 123B.09, subdivision 11, in an amount not to exceed $1,000,000 
92.32 	approved by the commissioner of education for the costs associated with demolishing the 
92.33 	Cyrus school building. The bonds must be repaid within ten years of issuance. Any excess 
92.34 	bond proceeds after bonds are repaid must be credited back to the taxpayers of the former 
92.35 	Independent School District No. 611, Cyrus.
93.1 		Subd. 4.Reorganization operating debt determined. Independent School District 
93.2 	No. 611, Cyrus, must estimate its reorganization operating debt according to Minnesota 
93.3 	Statutes, section 123B.82, and submit that amount to the commissioner of education 
93.4 	for approval.
93.5 		Subd. 5.Reorganization operating debt bonds. Independent School District No. 
93.6 	611, Cyrus, may issue general obligation bonds without an election under Minnesota 
93.7 	Statutes, chapter 475, after a public meeting of the school board with notice given by mail 
93.8 	according to Minnesota Statutes, section 123B.09, subdivision 11, in an amount not to 
93.9 	exceed the reorganization operating debt approved by the commissioner of education 
93.10 	under subdivision 4. The bonds must be repaid within six years of issuance.
93.11 		Subd. 6.Repayment. The bonded debt issued under this section remains payable 
93.12 	by the taxable property located within the boundaries of former Independent School  
93.13 	District No. 611, Cyrus.

93.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

93.15 	Sec. 7. RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.
 93.16 	Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph 
93.17 	(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions 
93.18 	of Minnesota Statutes, section 124D.041, and the agreement shall not apply to Independent 
93.19 	School District No. 402, Hendricks.

93.20 	EFFECTIVE DATE. This section is effective for the 2013-2014 school year and 
93.21 	later.

93.22 	Sec. 8. APPROPRIATIONS.
 93.23 		Subdivision 1.Department of Education. The sums indicated in this section are 
93.24 	appropriated from the general fund to the Department of Education for the fiscal years 
93.25 	designated.
93.26 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
93.27 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

93.28		$
	14,596,000
	.....
	2014
	
93.29		$
	14,888,000
	.....
	2015
	
93.30 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
93.31 	Statutes, section 124D.1158:

94.1		$
	5,711,000
	.....
	2014
	
94.2		$
	6,022,000
	.....
	2015
	
94.3 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
94.4 	section 124D.118:

94.5		$
	1,039,000
	.....
	2014
	
94.6		$
	1,049,000
	.....
	2015
	
94.7 		Subd. 5.Summer food service replacement aid. For summer food service 
94.8 	replacement aid under Minnesota Statutes, section 124D.119:

94.9		$
	150,000
	.....
	2014
	
94.10		$
	150,000
	.....
	2015
	
94.11 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
94.12 	Statutes, section 134.355:

94.13		$
	13,448,000
	.....
	2014
	
94.14		$
	13,570,000
	.....
	2015
	
94.15 	The 2014 appropriation includes $1,845,000 for 2013 and $11,603,000 for 2014.
94.16 	The 2015 appropriation includes $1,967,000 for 2014 and $11,603,000 for 2015.
94.17 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
94.18 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

94.19		$
	1,288,000
	.....
	2014
	
94.20		$
	1,300,000
	.....
	2015
	
94.21 	The 2014 appropriation includes $176,000 for 2013 and $1,112,000 for 2014.
94.22 	The 2015 appropriation includes $188,000 for 2014 and $1,112,000 for 2015.
94.23 		Subd. 8.Electronic library for Minnesota. For statewide licenses to online 
94.24 	databases selected in cooperation with the Minnesota Office of Higher Education for 
94.25 	school media centers, public libraries, state government agency libraries, and public 
94.26 	or private college or university libraries:

94.27		$
	900,000
	.....
	2014
	
94.28		$
	900,000
	.....
	2015
	
94.29 	Any balance in the first year does not cancel but is available in the second year.
94.30 		Subd. 9.Regional library telecommunications aid. For regional library 
94.31 	telecommunications aid under Minnesota Statutes, section 134.355:

95.1		$
	2,279,000
	.....
	2014
	
95.2		$
	2,300,000
	.....
	2015
	
95.3 	The 2014 appropriation includes $312,000 for 2013 and $1,967,000 for 2014.
95.4 	The 2015 appropriation includes $333,000 for 2014 and $1,967,000 for 2015.

95.5 	ARTICLE 8
95.6 	EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND 
95.7 	LIFELONG LEARNING

95.8 	Section 1. Minnesota Statutes 2012, section 13.319, is amended by adding a 
95.9 	subdivision to read:
95.10 		Subd. 9.Early learning scholarships. Section 124D.143 governs data under the 
95.11 	early learning scholarship program.

95.12 	Sec. 2. [124D.143] EARLY LEARNING SCHOLARSHIPS.
95.13 		Subdivision 1.Early learning scholarships established. The Office of Early 
95.14 	Learning must oversee the early learning scholarship program in consultation with the 
95.15 	Minnesota Departments of Education, Human Services, and Health.
95.16 		Subd. 2.Duties. The Office of Early Learning shall administer the early learning 
95.17 	scholarship program, establish participation standards for children and their families, 
95.18 	develop criteria for qualifying providers based on section 124D.142, and contract for 
95.19 	administrative services as necessary with a resource and referral organization under 
95.20 	section 119B.19, or other nonprofit or public entity.
95.21 		Subd. 3.Definitions. (a) The terms defined in the subdivision apply to this section.
95.22 	(b) "Director" means the director of the Office of Early Learning.
95.23 	(c) "Eligible program" means a Head Start program under section 119A.50, school 
95.24 	readiness program under section 124D.15, or other school district child-based program 
95.25 	designed to provide early education services to children not yet in kindergarten, licensed 
95.26 	center-based child care program under chapter 245A, or licensed family child care 
95.27 	program under chapter 245A or other program providing early learning opportunities. 
95.28 	(d) "Income" has the meaning given in section 119B.011, subdivision 15. 
95.29 	(e) "Parent" means the parent or legal guardian of a child.
95.30 	(f) "Prospective program" means an eligible program that makes a commitment to 
95.31 	enhance its quality of education and care and demonstrates to the director's satisfaction that 
95.32 	the program is pursuing a program rating. For fiscal years 2016 and later, a prospective 
95.33 	program must cite a hardship or demonstrate a special circumstance as to why the program 
95.34 	is not yet ready to enter the rating process before the director may grant it eligibility.
96.1 	(g) "Rated program" means an eligible program that receives one, two, three, or four 
96.2 	stars under the quality rating and improvement system established in section 124D.142.
96.3 		Subd. 4.Participant eligibility. The parent of a child who will be at least three 
96.4 	years of age as of September 1 of the year of application, is eligible to apply for an early 
96.5 	learning scholarship if the family's income is at or below 185 percent of the federal 
96.6 	poverty level. The director of the Office of Early Learning may specify the form and 
96.7 	manner of the application for a scholarship. The director may establish a method to 
96.8 	determine family income but a parent meets this requirement by documenting their child's 
96.9 	identification through another public funding eligibility process, including the free and 
96.10 	reduced-price lunch program, National School Lunch Act, United States Code, title 
96.11 	42, section 1751, part 210; Head Start under federal Improving Head Start for School 
96.12 	Readiness Act of 2007; Minnesota family investment program under chapter 256J; the 
96.13 	Federal Supplemental Nutrition Assistance Program; and child care assistance programs 
96.14 	under chapter 119B, and no further information to verify income is required. A parent 
96.15 	under age 21 who is pursuing a high school or general education equivalency diploma is 
96.16 	eligible for an early learning scholarship if the parent has a child age zero to five years old 
96.17 	and meets the income eligibility requirements in this subdivision.
96.18 		Subd. 5.Scholarship amount. (a) The director annually shall determine the 
96.19 	maximum scholarship amounts based on the results of the rate survey conducted under 
96.20 	section 119B.13, subdivision 1, paragraph (b), and may establish a range of scholarship 
96.21 	amounts taking into account the child's level of need and geographic location. The 
96.22 	director shall establish a scholarship amount schedule according to the eligible program's 
96.23 	rating under subdivision 3, paragraph (g), and prospective programs under subdivision 
96.24 	3, paragraph (f). The scholarship amounts may be designed to be layered around other 
96.25 	assistance programs available to that child. The director shall not consider local funds 
96.26 	allocated to support an early learning program when layering scholarships around other 
96.27 	assistance programs. Eligible providers must be notified of the scholarship allocations 
96.28 	available in their geographic location.
96.29 	(b) The director shall try to maintain a statewide annual average scholarship amount 
96.30 	of $6,000 per scholarship recipient and report annually to the legislature the actual average 
96.31 	statewide scholarship amount per scholarship recipient.
96.32 		Subd. 6.Award of scholarships. (a) The director shall establish application 
96.33 	timelines and determine the schedule for awarding scholarships that meet operational 
96.34 	needs of eligible programs. The director may prioritize applications on factors including 
96.35 	family income, geographic location, and needs of the child. By March 15, eligible 
96.36 	programs may notify the director of the number of scholarship-eligible children who are 
97.1 	eligible under subdivision 4 and who have applied for enrollment in that program. To 
97.2 	facilitate enrollment planning, by April 15, the director shall notify eligible programs that 
97.3 	have provided enrollment information under this paragraph of the scholarship status of 
97.4 	each applicant. To the extent practicable and taking into account family mobility, the 
97.5 	scholarships must be awarded to eligible recipients beginning April 15 of each year for a 
97.6 	child's participation in a program starting in July, August, or September of that year. Any 
97.7 	siblings of a child who has been awarded a scholarship under this section must be awarded 
97.8 	a scholarship upon request provided the sibling attends the same program. A child who 
97.9 	has received a scholarship under this section must continue to receive a scholarship until 
97.10 	that child enrolls in kindergarten or turns six years of age.
97.11 	(b) A three- or four-star rated program that has a waiting list of children eligible for 
97.12 	scholarships may notify the director of the program's desire to serve additional children in 
97.13 	order to accommodate scholarship recipients. The director may designate a predetermined 
97.14 	number of scholarship slots for that program and notify the program of that number.
97.15 	(c) A scholarship recipient may choose any available program and is not required to 
97.16 	enroll in a program with a predetermined number of slots.
97.17 	(d) A child who receives a scholarship who has not completed development 
97.18 	screening under sections 121A.16 to 121A.19 must complete that screening within 45 
97.19 	days of first attending an eligible program.
97.20 	(e) The director shall report annually to the legislature on a summary of the 
97.21 	geographic distribution of scholarships throughout the state.
97.22 		Subd. 7.Scholarship recipient choice of programs. A scholarship recipient may 
97.23 	choose to apply to any rated program or prospective program for acceptance. If the 
97.24 	scholarship recipient has not been accepted and subsequently enrolled in a rated program 
97.25 	within ten months of receipt of the scholarship, the scholarship cancels and the recipient 
97.26 	must reapply in order to be eligible for another scholarship.
97.27 		Subd. 8.Building quality. For fiscal years 2014 and 2015 only, the director must 
97.28 	develop a streamlined process to encourage eligible programs to enter the rating program. 
97.29 	As a part of building quality in the system of providers, the director may grant a parent 
97.30 	authority to use a scholarship at a prospective program.
97.31 		Subd. 9.Provider reimbursement. The director may determine the form and 
97.32 	method of payment to the fiscal agent for each program serving a scholarship recipient. 
97.33 	The director may make quarterly payments on behalf of the scholarship recipient in 
97.34 	advance of the services provided to the child, or arrange other payment methods for 
97.35 	providers. The director may request information as necessary from providers to verify 
97.36 	scholarship payments.
98.1 		Subd. 10.Earned income calculation. Scholarships paid to providers on behalf 
98.2 	of eligible parents must not be counted as earned income for the purposes of medical 
98.3 	assistance, MinnesotaCare, Minnesota family investment program, diversionary work 
98.4 	program, child care assistance, or Head Start programs. Scholarships paid to providers on 
98.5 	behalf of eligible parents must not be considered child care funds for the purposes of the 
98.6 	child care assistance program under chapter 119B.
98.7 		Subd. 11.Student identification number. The director shall collect from 
98.8 	participating programs data including, but not limited to, demographic, socioeconomic, 
98.9 	participation, and assessment information related to scholarship recipients. Data on 
98.10 	scholarship recipients are private data on individuals as defined in section 13.02, 
98.11 	subdivision 12. 
98.12 		Subd. 12.Report required. The director, in consultation with the children's 
98.13 	cabinet, shall develop and implement a plan to publicize and increase parent awareness of 
98.14 	early learning scholarships. The director must report the results of the outreach efforts to 
98.15 	the legislature by January 15 of each year.

98.16 	Sec. 3. Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to read:
98.17 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
98.18 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
98.19 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
98.20 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
98.21 	fiscal years equals:
98.22 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
98.23 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
98.24 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
98.25 	(2) the lesser of:
98.26 	(i) 1.02 1.03; or
98.27 	(ii) the average growth in state total contact hours over the prior ten program years.
98.28 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
98.29 	aid must be set aside for adult basic education supplemental service grants under section 
98.30 	124D.522.
98.31 	(b) The state total adult basic education aid, excluding basic population aid, equals 
98.32 	the difference between the amount computed in paragraph (a), and the state total basic 
98.33 	population aid under subdivision 2.

98.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2014 
98.35 	and later.

99.1 	Sec. 4. EARLY LEARNING SCHOLARSHIPS; FISCAL YEAR 2014 ONLY.
 99.2 	Notwithstanding the timelines in Minnesota Statutes, section 124D.143, for fiscal 
99.3 	year 2014 only, the director shall establish an expedited process to award scholarships 
99.4 	to eligible recipients attending three- or four-star rated programs to accommodate those 
99.5 	eligible programs with fall enrollment deadlines.

99.6 	Sec. 5. APPROPRIATIONS.
 99.7 		Subdivision 1.Department of Education. The sums indicated in this section are 
99.8 	appropriated from the general fund to the Department of Education for the fiscal years 
99.9 	designated.
99.10 		Subd. 2.School readiness. For revenue for school readiness programs under 
99.11 	Minnesota Statutes, sections 124D.15 and 124D.16:

99.12		$
	10,004,000
	.....
	2014
	
99.13		$
	10,159,000
	.....
	2015
	
99.14 	The 2014 appropriation includes $1,372,000 for 2013 and $8,632,000 for 2014.
99.15 	The 2015 appropriation includes $1,463,000 for 2014 and $8,696,000 for 2015.
99.16 		Subd. 3.Early childhood family education aid. For early childhood family 
99.17 	education aid under Minnesota Statutes, section 124D.135:

99.18		$
	21,879,000
	.....
	2014
	
99.19		$
	22,422,000
	.....
	2015
	
99.20 	The 2014 appropriation includes $3,008,000 for 2013 and $18,871,000 for 2014.
99.21 	The 2015 appropriation includes $3,200,000 for 2014 and $19,222,000 for 2015.
99.22 		Subd. 4.Early childhood education scholarships. For early childhood education 
99.23 	scholarships under Minnesota Statutes, section 124D.143:

99.24		$
	25,000,000
	.....
	2014
	
99.25		$
	25,000,000
	.....
	2015
	
99.26 	The 2014 appropriation includes $950,000 for administrative costs to run the 
99.27 	program.
99.28 	The 2015 appropriation includes $950,000 for administrative costs to run the 
99.29 	program.
99.30 	Any balance in the first year does not cancel but is available in the second year.
99.31 		Subd. 5.Parent-child home program. For a grant to the parent-child home 
99.32 	program:

100.1		$
	250,000
	.....
	2014
	
100.2		$
	250,000
	.....
	2015
	
100.3 	The grant must be used for an evidence-based and research-validated early childhood 
100.4 	literacy and school readiness program for children ages 16 months to four years at its 
100.5 	existing suburban program location. The program must expand to one additional urban 
100.6 	and one additional rural program location for fiscal years 2014 and 2015.
100.7 		Subd. 6.Health and developmental screening aid. For health and developmental 
100.8 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

100.9		$
	3,390,000
	.....
	2014
	
100.10		$
	3,345,000
	.....
	2015
	
100.11 	The 2014 appropriation includes $474,000 for 2013 and $2,916,000 for 2014.
100.12 	The 2015 appropriation includes $494,000 for 2014 and $2,851,000 for 2015.
100.13 		Subd. 7.Head Start program. For Head Start programs under Minnesota Statutes, 
100.14 	section 119A.52:

100.15		$
	20,100,000
	.....
	2014
	
100.16		$
	20,100,000
	.....
	2015
	
100.17 		Subd. 8.Educate parents partnership. For the educate parents partnership under 
100.18 	Minnesota Statutes, section 124D.129:

100.19		$
	49,000
	.....
	2014
	
100.20		$
	49,000
	.....
	2015
	
100.21 		Subd. 9.Kindergarten entrance assessment initiative and intervention 
100.22 	program. For the kindergarten entrance assessment initiative and intervention program 
100.23 	under Minnesota Statutes, section 124D.162:

100.24		$
	281,000
	.....
	2014
	
100.25		$
	281,000
	.....
	2015
	
100.26 		Subd. 10.Community education aid. For community education aid under 
100.27 	Minnesota Statutes, section 124D.20:

100.28		$
	926,000
	.....
	2014
	
100.29		$
	1,056,000
	.....
	2015
	
100.30 	The 2014 appropriation includes $118,000 for 2013 and $808,000 for 2014.
100.31 	The 2015 appropriation includes $137,000 for 2014 and $919,000 for 2015.
101.1 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
101.2 	programs under Minnesota Statutes, section 124D.56:

101.3		$
	704,000
	.....
	2014
	
101.4		$
	710,000
	.....
	2015
	
101.5 	The 2014 appropriation includes $96,000 for 2013 and $608,000 for 2014.
101.6 	The 2015 appropriation includes $102,000 for 2014 and $608,000 for 2015.
101.7 		Subd. 12.Hearing-impaired adults. For programs for hearing-impaired adults 
101.8 	under Minnesota Statutes, section 124D.57:

101.9		$
	70,000
	.....
	2014
	
101.10		$
	70,000
	.....
	2015
	
101.11 		Subd. 13.School-age care revenue. For extended day aid under Minnesota 
101.12 	Statutes, section 124D.22:

101.13		$
	1,000
	.....
	2014
	
101.14		$
	1,000
	.....
	2015
	
101.15 	The 2014 appropriation includes $0 for 2013 and $1,000 for 2014.
101.16 	The 2015 appropriation includes $0 for 2014 and $1,000 for 2015.
101.17 		Subd. 14.Adult basic education aid. For adult basic education aid under 
101.18 	Minnesota Statutes, section 124D.531:

101.19		$
	46,978,000
	.....
	2014
	
101.20		$
	48,816,000
	.....
	2015
	
101.21 	The 2014 appropriation includes $6,284,000 for 2013 and $40,694,000 for 2014.
101.22 	The 2015 appropriation includes $6,901,000 for 2014 and $41,915,000 for 2015.
101.23 		Subd. 15.GED tests. For payment of 60 percent of the costs of GED tests under 
101.24 	Minnesota Statutes, section 124D.55:

101.25		$
	125,000
	.....
	2014
	
101.26		$
	125,000
	.....
	2015

101.27 	ARTICLE 9
101.28 	STATE AGENCIES

101.29 	Section 1. DEPARTMENT OF EDUCATION.
 101.30 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
101.31 	indicated in this section are appropriated from the general fund to the Department of 
101.32 	Education for the fiscal years designated.
102.1 		Subd. 2.Department. (a) For the Department of Education:

102.2		$
	22,283,000
	.....
	2014
	
102.3		$
	19,996,000
	.....
	2015
	
102.4 	Any balance in the first year does not cancel but is available in the second year.
102.5 	(b) $260,000 each year is for the Minnesota Children's Museum.
102.6 	(c) $41,000 each year is for the Minnesota Academy of Science.
102.7 	(d) $50,000 each year is for the Duluth Children's Museum.
102.8 	(e) $618,000 each year is for the Board of Teaching. Any balance in the first year 
102.9 	does not cancel but is available in the second year.
102.10 	(f) $167,000 each year is for the Board of School Administrators. Any balance in 
102.11 	the first year does not cancel but is available in the second year.
102.12 	(g) $1,500,000 in fiscal year 2014 and $263,000 in fiscal year 2015 only is for 
102.13 	transfers to the Office of Enterprise Technology to develop model Individuals with 
102.14 	Disabilities Education Act (IDEA) online-available paperwork for special needs students. 
102.15 	Any ongoing information technology support or costs for online IDEA paperwork will be 
102.16 	incorporated into the service-level agreement and will be paid to the Office of Enterprise 
102.17 	Technology by the department under the rates and mechanisms specified in that agreement. 
102.18 	Any balance in the first year does not cancel but is available in the second year.
102.19 	(h) $250,000 each year is for the School Finance Division to enhance financial 
102.20 	data analysis.
102.21 	(i) $300,000 in fiscal year 2014 only is for a grant to the Northeast Service 
102.22 	Cooperative for a pilot project related to energy conservation programs in Northeast 
102.23 	Service Cooperative member school districts.
102.24 	(j) $500,000 each year is to assist school districts in implementing an antibullying 
102.25 	policy.
102.26 	(k) $125,000 each year is appropriated to the Minnesota Humanities Commission 
102.27 	for civics education.
102.28 	(l) $35,000 each year is for a transfer to the governor's office.
102.29 	(m) $750,000 in fiscal year 2014 only is for departmental costs associated with 
102.30 	teacher development and evaluation.
102.31 	(n) The expenditures of federal grants and aids as shown in the biennial budget 
102.32 	document and its supplements are approved and appropriated and shall be spent as 
102.33 	indicated. 
102.34 	(o) None of the amounts appropriated under this subdivision may be used for 
102.35 	Minnesota's Washington, D.C. office.
102.36 	(p) The base in fiscal year 2016 and later is $19,733,000.
103.1 		Subd. 3.Board of Teaching; licensure by portfolio. For the Board of Teaching 
103.2 	for licensure by portfolio:

103.3		$
	30,000
	.....
	2014
	
103.4		$
	30,000
	.....
	2015
	
103.5 	This appropriation is from the educator licensure portfolio account of the special 
103.6 	revenue fund.

103.7 	Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 103.8 	The sums indicated in this section are appropriated from the general fund to the 
103.9 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

103.10		$
	11,591,000
	.....
	2014
	
103.11		$
	11,591,000
	.....
	2015
	
103.12 	Any balance in the first year does not cancel but is available in the second year.

103.13 	Sec. 3. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 103.14 	The sums in this section are appropriated from the general fund to the Perpich 
103.15 	Center for Arts Education for the fiscal years designated:

103.16		$
	7,478,000
	.....
	2014
	
103.17		$
	7,478,000
	.....
	2015
	
103.18 	$750,000 each year is to develop an arts curriculum.
103.19 	Any balance in the first year does not cancel but is available in the second year.

103.20 	ARTICLE 10
103.21 	FORECAST ADJUSTMENTS
103.22 	A. GENERAL EDUCATION

103.23 	Section 1. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
103.24 	2, as amended by Laws 2012, chapter 292, article 2, section 1, is amended to read:
103.25 		Subd. 2.General education aid. For general education aid under Minnesota 
103.26 	Statutes, section 126C.13, subdivision 4:

103.27		$
	5,379,068,000
	.....
	2012
	
103.28
103.29		$
	5,844,995,000
7,153,701,000
	.....
	2013
	
103.30 	The 2012 appropriation includes $1,660,922,000 for 2011 and $3,718,146,000 
103.31 	for 2012.
104.1 	The 2013 appropriation includes $2,038,568,000 for 2012 and $3,806,427,000
104.2 	 $5,115,133,000 for 2013.

104.3 	Sec. 2. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
104.4 	3, as amended by Laws 2012, chapter 292, article 2, section 2, is amended to read:
104.5 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
104.6 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
104.7 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

104.8		$
	42,000
	.....
	2012
	
104.9104.10
		$
	46,000
40,000
	.....
	2013

104.11 	Sec. 3. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
104.12 	4, as amended by Laws 2012, chapter 292, article 2, section 3, is amended to read:
104.13 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
104.14 	127A.49:

104.15		$
	1,406,000
	.....
	2012
	
104.16
104.17		$
	2,072,000
2,503,000
	.....
	2013
	
104.18 	The 2012 appropriation includes $346,000 for 2011 and $1,060,000 for 2012.
104.19 	The 2013 appropriation includes $588,000 for 2012 and $1,484,000 $1,915,000
104.20 	 for 2013.

104.21 	Sec. 4. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
104.22 	5, as amended by Laws 2012, chapter 292, article 2, section 4, is amended to read:
104.23 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
104.24 	Statutes, section 123A.485:

104.25		$
	145,000
	.....
	2012
	
104.26
104.27		$
	193,000
260,000
	.....
	2013
	
104.28 	The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
104.29 	The 2013 appropriation includes $0 for 2012 and $193,000 $260,000 for 2013.

104.30 	Sec. 5. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
104.31 	6, as amended by Laws 2012, chapter 292, article 2, section 5, is amended to read:
104.32 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
104.33 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

105.1		$
	14,302,000
	.....
	2012
	
105.2
105.3		$
	15,594,000
18,969,000
	.....
	2013
	
105.4 	The 2012 appropriation includes $4,161,000 for 2011 and $10,141,000 for 2012.
105.5 	The 2013 appropriation includes $5,629,000 for 2012 and $9,965,000 $13,340,000
105.6 	 for 2013.

105.7 	Sec. 6. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
105.8 	7, as amended by Laws 2012, chapter 292, article 2, section 6, is amended to read:
105.9 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
105.10 	under Minnesota Statutes, section 123B.92, subdivision 9:

105.11		$
	17,757,000
	.....
	2012
	
105.12
105.13		$
	19,036,000
23,648,000
	.....
	2013
	
105.14 	The 2012 appropriation includes $5,700,000 for 2011 and $12,057,000 for 2012.
105.15 	The 2013 appropriation includes $6,694,000 for 2012 and $12,342,000 $16,954,000
105.16 	 for 2013.

105.17 	Sec. 7. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision 
105.18 	10, as amended by Laws 2012, chapter 292, article 2, section 7, is amended to read:
105.19 		Subd. 10.Compensatory pilot project formula aid. For grants for compensatory 
105.20 	pilot project formula aid as calculated under this subdivision:

105.21
105.22		$
	9,368,000
13,403,000
	.....
	2013
	
105.23 	For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20 
105.24 	largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of 
105.25 	compensatory pupil units, minus the amount of compensatory education revenue received 
105.26 	by the district under Minnesota Statutes, section 126C.10, subdivision 3.
105.27 	The 2013 appropriation includes $0 for 2012 and $9,368,000 $13,403,000 for 2013.
105.28 	This is a onetime appropriation.
105.29 	B. EDUCATION EXCELLENCE

105.30 	Sec. 8. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
105.31 	2, as amended by Laws 2012, chapter 292, article 2, section 8, is amended to read:
105.32 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
105.33 	Statutes, section 124D.11, subdivision 4:

106.1		$
	42,806,000
	.....
	2012
	
106.2
106.3		$
	48,978,000
60,067,000
	.....
	2013
	
106.4 	The 2012 appropriation includes $12,642,000 for 2011 and $30,164,000 for 2012.
106.5 	The 2013 appropriation includes $16,746,000 for 2012 and $32,232,000 $43,321,000
106.6 	 for 2013.

106.7 	Sec. 9. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
106.8 	4, as amended by Laws 2012, chapter 292, article 2, section 10, is amended to read:
106.9 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
106.10 	124D.86:

106.11		$
	61,181,000
	.....
	2012
	
106.12
106.13		$
	65,498,000
79,329,000
	.....
	2013
	
106.14 	The 2012 appropriation includes $19,272,000 for 2011 and $41,909,000 for 2012.
106.15 	The 2013 appropriation includes $23,268,000 for 2012 and $42,230,000 $56,061,000
106.16 	 for 2013.
106.17 	The base for the final payment in fiscal year 2014 for fiscal year 2013 is $31,668,000
106.18 	 $17,197,000.

106.19 	Sec. 10. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
106.20 	5, as amended by Laws 2012, chapter 292, article 2, section 11, is amended to read:
106.21 		Subd. 5.Literacy incentive aid. For literacy incentive aid under Minnesota 
106.22 	Statutes, section 124D.98:

106.23
106.24		$
	31,241,000
41,978,000
	.....
	2013
	
106.25 	The 2013 appropriation includes $0 for 2012 and $31,241,000 $41,978,000 for 2013.

106.26 	Sec. 11. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
106.27 	6, as amended by Laws 2012, chapter 292, article 2, section 12, is amended to read:
106.28 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
106.29 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
106.30 	section 124D.87:

106.31		$
	13,262,000
	.....
	2012
	
106.32
106.33		$
	13,966,000
13,260,000
	.....
	2013

107.1 	Sec. 12. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
107.2 	7, as amended by Laws 2012, chapter 292, article 2, section 13, is amended to read:
107.3 		Subd. 7.Success for the future. For American Indian success for the future grants 
107.4 	under Minnesota Statutes, section 124D.81:

107.5		$
	2,013,000
	.....
	2012
	
107.6
107.7		$
	2,137,000
2,609,000
	.....
	2013
	
107.8 	The 2012 appropriation includes $638,000 for 2011 and $1,375,000 for 2012.
107.9 	The 2013 appropriation includes $762,000 for 2012 and $1,375,000 $1,847,000
107.10 	 for 2013.

107.11 	Sec. 13. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision 
107.12 	9, as amended by Laws 2012, chapter 292, article 2, section 14, is amended to read:
107.13 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
107.14 	Statutes, section 124D.83:

107.15		$
	1,791,000
	.....
	2012
	
107.16
107.17		$
	1,969,000
2,353,000
	.....
	2013
	
107.18 	The 2012 appropriation includes $600,000 for 2011 and $1,191,000 for 2012.
107.19 	The 2013 appropriation includes $660,000 for 2012 and $1,309,000 $1,693,000
107.20 	 for 2013.
107.21 	C. SPECIAL EDUCATION

107.22 	Sec. 14. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
107.23 	2, as amended by Laws 2012, chapter 292, article 2, section 15, is amended to read:
107.24 		Subd. 2.Special education; regular. For special education aid under Minnesota 
107.25 	Statutes, section 125A.75:

107.26		$
	767,845,000
	.....
	2012
	
107.27
107.28		$
	856,386,000
1,046,423,000
	.....
	2013
	
107.29 	The 2012 appropriation includes $235,975,000 for 2011 and $531,870,000 for 2012.
107.30 	The 2013 appropriation includes $295,299,000 for 2012 and $561,087,000
107.31 	 $751,124,000 for 2013.

107.32 	Sec. 15. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
107.33 	3, as amended by Laws 2012, chapter 292, article 2, section 16, is amended to read:
108.1 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
108.2 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
108.3 	within the district boundaries for whom no district of residence can be determined:

108.4		$
	1,508,000
	.....
	2012
	
108.5
108.6		$
	1,593,000
1,570,000
	.....
	2013
	
108.7 	If the appropriation for either year is insufficient, the appropriation for the other 
108.8 	year is available.

108.9 	Sec. 16. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
108.10 	4, as amended by Laws 2012, chapter 292, article 2, section 17, is amended to read:
108.11 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
108.12 	services under Minnesota Statutes, section 125A.75, subdivision 1:

108.13		$
	314,000
	.....
	2012
	
108.14
108.15		$
	321,000
407,000
	.....
	2013
	
108.16 	The 2012 appropriation includes $107,000 for 2011 and $207,000 for 2012.
108.17 	The 2013 appropriation includes $114,000 for 2012 and $207,000 $293,000 for 2013.

108.18 	Sec. 17. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision 
108.19 	5, as amended by Laws 2012, chapter 292, article 2, section 18, is amended to read:
108.20 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
108.21 	Statutes, section 125A.79, subdivision 7:

108.22		$
	107,557,000
	.....
	2012
	
108.23
108.24		$
	115,269,000
134,121,000
	.....
	2013
	
108.25 	The 2012 appropriation includes $53,449,000 for 2011 and $54,108,000 for 2012.
108.26 	The 2013 appropriation includes $59,607,000 for 2012 and $55,662,000 $74,514,000
108.27 	 for 2013.
108.28 	D. FACILITIES AND TECHNOLOGY

108.29 	Sec. 18. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
108.30 	2, as amended by Laws 2012, chapter 292, article 2, section 19, is amended to read:
108.31 		Subd. 2.Health and safety revenue. For health and safety aid according to 
108.32 	Minnesota Statutes, section 123B.57, subdivision 5:

109.1		$
	98,000
	.....
	2012
	
109.2
109.3		$
	157,000
200,000
	.....
	2013
	
109.4 	The 2012 appropriation includes $39,000 for 2011 and $59,000 for 2012.
109.5 	The 2013 appropriation includes $32,000 for 2012 and $125,000 $168,000 for 2013.

109.6 	Sec. 19. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
109.7 	3, as amended by Laws 2012, chapter 292, article 2, section 20, is amended to read:
109.8 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
109.9 	Statutes, section 123B.53, subdivision 6:

109.10		$
	11,625,000
	.....
	2012
	
109.11
109.12		$
	16,342,000
20,237,000
	.....
	2013
	
109.13 	The 2012 appropriation includes $2,604,000 for 2011 and $9,021,000 for 2012.
109.14 	The 2013 appropriation includes $5,008,000 for 2012 and $11,334,000 $15,229,000
109.15 	 for 2013.

109.16 	Sec. 20. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
109.17 	4, as amended by Laws 2012, chapter 292, article 2, section 21, is amended to read:
109.18 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
109.19 	according to Minnesota Statutes, section 123B.59, subdivision 1:

109.20		$
	18,187,000
	.....
	2012
	
109.21
109.22		$
	19,287,000
23,549,000
	.....
	2013
	
109.23 	The 2012 appropriation includes $5,785,000 for 2011 and $12,402,000 for 2012.
109.24 	The 2013 appropriation includes $6,885,000 for 2012 and $12,402,000 $16,664,000
109.25 	 for 2013.

109.26 	Sec. 21. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision 
109.27 	6, as amended by Laws 2012, chapter 292, article 2, section 22, is amended to read:
109.28 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
109.29 	Minnesota Statutes, section 123B.591, subdivision 4:

109.30		$
	2,331,000
	.....
	2012
	
109.31
109.32		$
	3,141,000
3,817,000
	.....
	2013
	
109.33 	The 2012 appropriation includes $676,000 for 2011 and $1,655,000 for 2012.
110.1 	The 2013 appropriation includes $918,000 for 2012 and $2,223,000 $2,899,000
110.2 	 for 2013.
110.3 	E. NUTRITION AND LIBRARIES

110.4 	Sec. 22. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
110.5 	2, as amended by Laws 2012, chapter 292, article 2, section 23, is amended to read:
110.6 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
110.7 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

110.8		$
	12,285,000
	.....
	2012
	
110.9110.10
		$
	12,524,000
12,266,000
	.....
	2013

110.11 	Sec. 23. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
110.12 	3, as amended by Laws 2012, chapter 292, article 2, section 24, is amended to read:
110.13 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
110.14 	Statutes, section 124D.1158:

110.15		$
	5,247,000
	.....
	2012
	
110.16
110.17		$
	5,560,000
5,417,000
	.....
	2013

110.18 	Sec. 24. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision 
110.19 	4, as amended by Laws 2012, chapter 292, article 2, section 25, is amended to read:
110.20 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
110.21 	section 124D.118:

110.22		$
	1,025,000
	.....
	2012
	
110.23
110.24		$
	1,035,000
1,019,000
	.....
	2013

110.25 	Sec. 25. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
110.26 	2, as amended by Laws 2012, chapter 292, article 2, section 26, is amended to read:
110.27 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
110.28 	Statutes, section 134.355:

110.29		$
	12,797,000
	.....
	2012
	
110.30
110.31		$
	13,570,000
16,569,000
	.....
	2013
	
110.32 	The 2012 appropriation includes $4,071,000 for 2011 and $8,726,000 for 2012.
111.1 	The 2013 appropriation includes $4,844,000 for 2012 and $8,726,000 $11,725,000
111.2 	 for 2013.

111.3 	Sec. 26. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
111.4 	3, as amended by Laws 2012, chapter 292, article 2, section 27, is amended to read:
111.5 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
111.6 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

111.7		$
	1,226,000
	.....
	2012
	
111.8
111.9		$
	1,300,000
1,588,000
	.....
	2013
	
111.10 	The 2012 appropriation includes $390,000 for 2011 and $836,000 for 2012.
111.11 	The 2013 appropriation includes $464,000 for 2012 and $836,000 $1,124,000 for 
111.12 	2013.

111.13 	Sec. 27. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision 
111.14 	5, as amended by Laws 2012, chapter 292, article 2, section 28, is amended to read:
111.15 		Subd. 5.Regional library telecommunications aid. For regional library 
111.16 	telecommunications aid under Minnesota Statutes, section 134.355:

111.17		$
	2,169,000
	.....
	2012
	
111.18
111.19		$
	2,300,000
2,809,000
	.....
	2013
	
111.20 	The 2012 appropriation includes $690,000 for 2011 and $1,479,000 for 2012.
111.21 	The 2013 appropriation includes $821,000 for 2012 and $1,479,000 $1,988,000
111.22 	 for 2013.
111.23 	F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND 
111.24 	LIFELONG LEARNING

111.25 	Sec. 28. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
111.26 	2, as amended by Laws 2012, chapter 292, article 2, section 29, is amended to read:
111.27 		Subd. 2.School readiness. For revenue for school readiness programs under 
111.28 	Minnesota Statutes, sections 124D.15 and 124D.16:

111.29		$
	9,444,000
	.....
	2012
	
111.30
111.31		$
	10,095,000
12,326,000
	.....
	2013
	
111.32 	The 2012 appropriation includes $2,952,000 for 2011 and $6,492,000 for 2012.
112.1 	The 2013 appropriation includes $3,603,000 for 2012 and $6,492,000 $8,723,000
112.2 	 for 2013.

112.3 	Sec. 29. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
112.4 	3, as amended by Laws 2012, chapter 292, article 2, section 30, is amended to read:
112.5 		Subd. 3.Early childhood family education aid. For early childhood family 
112.6 	education aid under Minnesota Statutes, section 124D.135:

112.7		$
	21,099,000
	.....
	2012
	
112.8
112.9		$
	22,358,000
27,197,000
	.....
	2013
	
112.10 	The 2012 appropriation includes $6,542,000 for 2011 and $14,557,000 for 2012.
112.11 	The 2013 appropriation includes $8,082,000 for 2012 and $14,276,000 $19,115,000
112.12 	 for 2013.

112.13 	Sec. 30. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision 
112.14 	4, as amended by Laws 2012, chapter 292, article 2, section 31, is amended to read:
112.15 		Subd. 4.Health and developmental screening aid. For health and developmental 
112.16 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

112.17		$
	3,359,000
	.....
	2012
	
112.18
112.19		$
	3,543,000
4,287,000
	.....
	2013
	
112.20 	The 2012 appropriation includes $1,066,000 for 2011 and $2,293,000 for 2012.
112.21 	The 2013 appropriation includes $1,273,000 for 2012 and $2,270,000 $3,014,000
112.22 	 for 2013.

112.23 	Sec. 31. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 
112.24 	2, as amended by Laws 2012, chapter 292, article 2, section 32, is amended to read:
112.25 		Subd. 2.Community education aid. For community education aid under 
112.26 	Minnesota Statutes, section 124D.20:

112.27		$
	442,000
	.....
	2012
	
112.28
112.29		$
	746,000
926,000
	.....
	2013
	
112.30 	The 2012 appropriation includes $134,000 for 2011 and $308,000 for 2012.
112.31 	The 2013 appropriation includes $170,000 for 2012 and $576,000 $756,000 for 2013.

112.32 	Sec. 32. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision 
112.33 	3, as amended by Laws 2012, chapter 292, article 2, section 33, is amended to read:
113.1 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
113.2 	programs under Minnesota Statutes, section 124D.56:

113.3		$
	654,000
	.....
	2012
	
113.4
113.5		$
	710,000
867,000
	.....
	2013
	
113.6 	The 2012 appropriation includes $197,000 for 2011 and $457,000 for 2012.
113.7 	The 2013 appropriation includes $253,000 for 2012 and $457,000 $614,000 for 2013.

113.8 	Sec. 33. Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision 
113.9 	2, as amended by Laws 2012, chapter 292, article 2, section 34, is amended to read:
113.10 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
113.11 	Statutes, section 124D.531:

113.12		$
	42,526,000
	.....
	2012
	
113.13
113.14		$
	45,901,000
56,113,000
	.....
	2013
	
113.15 	The 2012 appropriation includes $13,364,000 for 2011 and $29,162,000 for 2012.
113.16 	The 2013 appropriation includes $16,190,000 for 2012 and $29,711,000 $39,923,000
113.17 	 for 2013.