1.1 	A bill for an act
1.2 	relating to education; providing funding and policy modifications for early 
1.3 	childhood, kindergarten through grade 12, and adult education, including 
1.4 	general education, education excellence, special education, facilities, nutrition, 
1.5 	community education, self-sufficiency and lifelong learning, and state agencies; 
1.6 	making forecast adjustments; appropriating money;amending Minnesota 
1.7 	Statutes 2012, sections 121A.19; 122A.40, subdivision 13; 122A.41, subdivision 
1.8 	6; 122A.415, subdivision 1; 123A.05, subdivision 2; 123A.485; 123A.64; 
1.9 	123B.71, subdivisions 8, 9; 124D.09, subdivisions 9, 13; 124D.111, by adding 
1.10 	a subdivision; 124D.16, subdivision 2; 124D.522; 124D.531, subdivision 3; 
1.11 	124D.59, subdivision 2; 125A.76, subdivision 2; 126C.10, subdivisions 25, 26; 
1.12 	127A.45, subdivisions 2, 3; 127A.49, subdivisions 2, 3; 129C.10, subdivision 3, 
1.13 	by adding a subdivision; Minnesota Statutes 2013 Supplement, sections 123B.53, 
1.14 	subdivisions 1, 5; 123B.54; 123B.75, subdivision 5; 124D.11, subdivision 1; 
1.15 	124D.111, subdivision 1; 124D.165, subdivision 5; 124D.531, subdivision 1; 
1.16 	124D.65, subdivision 5; 124D.862, subdivisions 1, 2; 125A.0942; 125A.11, 
1.17 	subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 
1.18 	8; 126C.05, subdivision 15; 126C.10, subdivisions 2, 2a, 2d, 24, 31; 126C.17, 
1.19 	subdivisions 6, 7b, 9, 9a; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 
1.20 	7; Laws 2012, chapter 263, section 1; Laws 2013, chapter 116, article 1, section 
1.21 	58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 
1.22 	11, 15, 20; article 4, section 9, subdivision 2; article 5, section 31, subdivisions 
1.23 	2, 3, 4, 8; article 6, section 12, subdivisions 2, 3, 4, 5, 6; article 7, section 21, 
1.24 	subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 10, 11, 14; 
1.25 	article 9, sections 1, subdivision 2; 2; proposing coding for new law in Minnesota 
1.26 	Statutes, chapters 123A; 123B; 124D; 129C; repealing Minnesota Statutes 2012, 
1.27 	section 123B.71, subdivision 1.
1.28 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29 	ARTICLE 1
1.30 	GENERAL EDUCATION

1.31 	Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
2.1 		Subd. 2.Reserve revenue. Each district that is a member of an area learning center 
2.2 	or alternative learning program must reserve revenue in an amount equal to the sum of 
2.3 	(1) at least 90 and no more than 100 percent of the district average general education 
2.4 	revenue per adjusted pupil unit minus an amount equal to the product of the formula 
2.5 	allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated 
2.6 	without basic skills revenue and transportation sparsity revenue, times the number of 
2.7 	pupil units attending an area learning center or alternative learning program under this 
2.8 	section, plus (2) the amount of basic skills revenue generated by pupils attending the area 
2.9 	learning center or alternative learning program. The amount of reserved revenue under 
2.10 	this subdivision may only be spent on program costs associated with the area learning 
2.11 	center or alternative learning program.

2.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
2.13 	and later.

2.14 	Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is 
2.15 	amended to read:
2.16 		Subd. 5.Levy recognition.  For fiscal year 2011 2014 and later years, in June of 
2.17 	each year, the school district must recognize as revenue, in the fund for which the levy 
2.18 	was made, the lesser of:
2.19 	(1) the sum of May, June, and July school district tax settlement revenue received in 
2.20 	that calendar year, plus general education aid according to section 126C.13, subdivision 
2.21 	4, received in July and August of that calendar year; or
2.22 	(2) the sum of:
2.23 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
2.24 	126C.17 in the prior calendar year, or 31 percent of the referendum levy certified 
2.25 	according to section 126C.17 in calendar year 2000; plus
2.26 	(ii) the entire amount of the levy certified in the prior calendar year according 
2.27 	to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue 
2.28 	under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special 
2.29 	School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and 
2.30 	Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a), 
2.31 	and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
2.32 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the 
2.33 	school district's general and community service funds, plus or minus auditor's adjustments, 
2.34 	that remains after subtracting the referendum levy certified according to section 126C.17 
2.35 	and the amount recognized according to item (ii).

3.1 	Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
3.2 		Subd. 9.Enrollment priority. A postsecondary institution shall give priority to its 
3.3 	postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses. 
3.4 	A postsecondary institution may provide information about its programs to a secondary 
3.5 	school or to a pupil or parent and it may advertise or otherwise recruit or solicit a 
3.6 	secondary pupil to enroll in its programs on educational and programmatic grounds only. 
3.7 	An institution must not enroll secondary pupils, for postsecondary enrollment options 
3.8 	purposes, in remedial, developmental, or other courses that are not college level except 
3.9 	when a student eligible to participate in the graduation incentives program under section 
3.10 	124D.68 enrolls full time in a middle or early college program specifically designed to 
3.11 	allow the student to earn dual high school and college credit. In this case, the student shall 
3.12 	receive developmental college credit and not college credit for completing remedial or 
3.13 	developmental courses. Once a pupil has been enrolled in a postsecondary course under 
3.14 	this section, the pupil shall not be displaced by another student.

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

3.16 	Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
3.17 		Subd. 13.Financial arrangements. For a pupil enrolled in a course under this 
3.18 	section, the department must make payments according to this subdivision for courses that 
3.19 	were taken for secondary credit.
3.20 	The department must not make payments to a school district or postsecondary 
3.21 	institution for a course taken for postsecondary credit only. The department must not 
3.22 	make payments to a postsecondary institution for a course from which a student officially 
3.23 	withdraws during the first 14 days of the quarter or semester or who has been absent from 
3.24 	the postsecondary institution for the first 15 consecutive school days of the quarter or 
3.25 	semester and is not receiving instruction in the home or hospital.
3.26 	A postsecondary institution shall receive the following:
3.27 	(1) for an institution granting quarter credit, the reimbursement per credit hour shall 
3.28 	be an amount equal to 88 percent of the product of the formula allowance minus $415
3.29 	 $425, multiplied by 1.3 1.2, and divided by 45; or
3.30 	(2) for an institution granting semester credit, the reimbursement per credit hour 
3.31 	shall be an amount equal to 88 percent of the product of the general revenue formula 
3.32 	allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
3.33 	The department must pay to each postsecondary institution 100 percent of the 
3.34 	amount in clause (1) or (2) within 30 days of receiving initial enrollment information 
3.35 	each quarter or semester. If changes in enrollment occur during a quarter or semester, 
4.1 	the change shall be reported by the postsecondary institution at the time the enrollment 
4.2 	information for the succeeding quarter or semester is submitted. At any time the 
4.3 	department notifies a postsecondary institution that an overpayment has been made, the 
4.4 	institution shall promptly remit the amount due.

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

4.6 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is 
4.7 	amended to read:
4.8 		Subdivision 1.General education revenue.  General education revenue must be 
4.9 	paid to a charter school as though it were a district. The general education revenue 
4.10 	for each adjusted pupil unit is the state average general education revenue per pupil 
4.11 	unit, plus the referendum equalization aid allowance in the pupil's district of residence, 
4.12 	minus an amount equal to the product of the formula allowance according to section 
4.13 	126C.10, subdivision 2, times .0466, calculated without declining enrollment revenue, 
4.14 	local optional revenue, basic skills revenue, extended time revenue, pension adjustment 
4.15 	revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment 
4.16 	revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and 
4.17 	transition revenue as though the school were a school district. The general education 
4.18 	revenue for each extended time pupil unit equals $4,794.

4.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
4.20 	and later.

4.21 	Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
4.22 		Subd. 2.English learner. (a) "English learner" means a pupil in kindergarten 
4.23 	through grade 12 who meets the following requirements:
4.24 	(1) the pupil, as declared by a parent or guardian first learned a language other than 
4.25 	English, comes from a home where the language usually spoken is other than English, or 
4.26 	usually speaks a language other than English; and
4.27 	(2) the pupil is determined by a valid assessment measuring the pupil's English 
4.28 	language proficiency and by developmentally appropriate measures, which might include 
4.29 	observations, teacher judgment, parent recommendations, or developmentally appropriate 
4.30 	assessment instruments, to lack the necessary English skills to participate fully in 
4.31 	academic classes taught in English.
4.32 	(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school 
4.33 	in grades any grade 4 through 12 who was enrolled in a Minnesota public school on 
5.1 	the dates during in the previous school year when a commissioner provided took a 
5.2 	commissioner-provided assessment that measures measuring the pupil's emerging 
5.3 	academic English was administered, shall not be counted as an English learner in 
5.4 	calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
5.5 	 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil 
5.6 	scored below the state cutoff score or is otherwise counted as a nonproficient participant 
5.7 	on an the assessment measuring the pupil's emerging academic English provided by the 
5.8 	commissioner during the previous school year, or, in the judgment of the pupil's classroom 
5.9 	teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate 
5.10 	academic language proficiency in English, including oral academic language, sufficient to 
5.11 	successfully and fully participate in the general core curriculum in the regular classroom.
5.12 	(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 
5.13 	12 shall not be counted as an English learner in calculating English learner pupil units 
5.14 	under section 126C.05, subdivision 17, and shall not generate state English learner aid 
5.15 	under section 124D.65, subdivision 5, if:
5.16 	(1) the pupil is not enrolled during the current fiscal year in an educational program 
5.17 	for English learners in accordance with under sections 124D.58 to 124D.64; or
5.18 	(2) the pupil has generated five six  or more years of average daily membership in 
5.19 	Minnesota public schools since July 1, 1996.

5.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
5.21 	and later.

5.22 	Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.65, subdivision 5, is 
5.23 	amended to read:
5.24 		Subd. 5.School district EL revenue. (a) A district's English learner programs 
5.25 	revenue equals the product of (1) $704 $726 times (2) the greater of 20 or the adjusted 
5.26 	average daily membership of eligible English learners enrolled in the district during the 
5.27 	current fiscal year.
5.28 	(b) A pupil ceases to generate state English learner aid in the school year following 
5.29 	the school year in which the pupil attains the state cutoff score on a commissioner-provided 
5.30 	assessment that measures the pupil's emerging academic English.

5.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
5.32 	and later.

5.33 	Sec. 8. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
6.1 		Subdivision 1.Approved recovery program. "Approved recovery program" means 
6.2 	a course of instruction offered by a recovery school that provides academic services, 
6.3 	assistance with recovery, and continuing care to students recovering from substance abuse 
6.4 	or dependency. A recovery program may be offered in a transitional academic setting 
6.5 	designed to meet graduation requirements. A recovery program must be approved by the 
6.6 	commissioner of education. The commissioner may specify the manner and form of the 
6.7 	application for the approval of a recovery school or recovery program.
6.8 		Subd. 2. Eligibility. An approved recovery program is eligible for an annual 
6.9 	recovery program grant of up to $125,000 to pay for a portion of the costs of recovery 
6.10 	program support staff under this section. "Recovery program support staff" means licensed 
6.11 	alcohol and chemical dependency counselors, licensed school counselors, licensed school 
6.12 	psychologists, licensed school nurses, and licensed school social workers.

6.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
6.14 	and later.

6.15 	Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is 
6.16 	amended to read:
6.17 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
6.18 	year program under section 124D.128, an area learning center or an alternative learning 
6.19 	program approved by the commissioner under sections 123A.05 and 123A.06, or a 
6.20 	contract alternative program under section 124D.68, subdivision 3, paragraph (d), or 
6.21 	subdivision 4, for more than 1,020 hours in a school year for a secondary student, more 
6.22 	than 935 hours in a school year for an elementary student, more than 850 hours in a school 
6.23 	year for a kindergarten student without a disability in an all-day kindergarten program, 
6.24 	or more than 425 hours in a school year for a half-day kindergarten student without a 
6.25 	disability, that pupil may be counted as more than one pupil in average daily membership 
6.26 	for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must 
6.27 	be determined by the ratio of the number of hours of instruction provided to that pupil in 
6.28 	excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time 
6.29 	secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours 
6.30 	or the number of hours required for a full-time elementary pupil in the district to 935 for 
6.31 	an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the 
6.32 	number of hours required for a full-time kindergarten student without a disability in the 
6.33 	district to 425 850 for a kindergarten student without a disability; and (iv) the greater of 
6.34 	425 hours or the number of hours required for a half-time kindergarten student without a 
6.35 	disability in the district to 425 for a half-day kindergarten student without a disability. 
7.1 	Hours that occur after the close of the instructional year in June shall be attributable to 
7.2 	the following fiscal year. A student in kindergarten or grades 1 through 12 must not be 
7.3 	counted as more than 1.2 pupils in average daily membership under this subdivision.
7.4 	(b)(i) To receive general education revenue for a pupil in an area learning center 
7.5 	or alternative learning program that has an independent study component, a district 
7.6 	must meet the requirements in this paragraph. The district must develop, for the pupil, 
7.7 	a continual learning plan consistent with section 124D.128, subdivision 3. Each school 
7.8 	district that has an area learning center or alternative learning program must reserve 
7.9 	revenue in an amount equal to at least 90 and not more than 100 percent of the district 
7.10 	average general education revenue per pupil unit, minus an amount equal to the product 
7.11 	of the formula allowance according to section 126C.10, subdivision 2, times .0466, 
7.12 	calculated without basic skills and transportation sparsity revenue, times the number of 
7.13 	pupil units generated by students attending an area learning center or alternative learning 
7.14 	program. The amount of reserved revenue available under this subdivision may only be 
7.15 	spent for program costs associated with the area learning center or alternative learning 
7.16 	program. Basic skills revenue generated according to section 126C.10, subdivision 4, by 
7.17 	pupils attending the eligible program must be allocated to the program.
7.18 	(ii) General education revenue for a pupil in a state-approved alternative program 
7.19 	without an independent study component must be prorated for a pupil participating for 
7.20 	less than a full year, or its equivalent. The district must develop a continual learning plan 
7.21 	for the pupil, consistent with section 124D.128, subdivision 3. Each school district that 
7.22 	has an area learning center or alternative learning program must reserve revenue in an 
7.23 	amount equal to at least 90 and not more than 100 percent of the district average general 
7.24 	education revenue per pupil unit, minus an amount equal to the product of the formula 
7.25 	allowance according to section 126C.10, subdivision 2, times .0466, calculated without 
7.26 	basic skills and transportation sparsity revenue, times the number of pupil units generated 
7.27 	by students attending an area learning center or alternative learning program. The amount 
7.28 	of reserved revenue available under this subdivision may only be spent for program costs 
7.29 	associated with the area learning center or alternative learning program. Basic skills 
7.30 	revenue generated according to section 126C.10, subdivision 4, by pupils attending the 
7.31 	eligible program must be allocated to the program.
7.32 	(iii) General education revenue for a pupil in a state-approved alternative program 
7.33 	that has an independent study component must be paid for each hour of teacher contact 
7.34 	time and each hour of independent study time completed toward a credit or graduation 
7.35 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
7.36 	number of hours of teacher contact time and independent study time divided by 1,020.
8.1 	(iv) For a state-approved alternative program having an independent study 
8.2 	component, the commissioner shall require a description of the courses in the program, the 
8.3 	kinds of independent study involved, the expected learning outcomes of the courses, and 
8.4 	the means of measuring student performance against the expected outcomes.

8.5 	Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is 
8.6 	amended to read:
8.7 		Subd. 2.Basic revenue. For fiscal year 2014, the basic revenue for each district 
8.8 	equals the formula allowance times the adjusted marginal cost pupil units for the school 
8.9 	year. For fiscal year 2015 and later, the basic revenue for each district equals the formula 
8.10 	allowance times the adjusted pupil units for the school year. The formula allowance for 
8.11 	fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The 
8.12 	formula allowance for fiscal year 2015 and later is $5,806 $5,864.

8.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
8.14 	and later.

8.15 	Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, 
8.16 	is amended to read:
8.17 		Subd. 2a.Extended time revenue. (a) A school district's extended time revenue for 
8.18 	fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal 
8.19 	cost pupil units of the district for each pupil in average daily membership in excess of 1.0 
8.20 	and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended 
8.21 	time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum 
8.22 	of the adjusted pupil units of the district for each pupil in average daily membership in 
8.23 	excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
8.24 	(b) A school district's extended time revenue may be used for extended day 
8.25 	programs, extended week programs, summer school, and other programming authorized 
8.26 	under the learning year program.

8.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
8.28 	and applies to revenue for fiscal year 2014 and later.

8.29 	Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, 
8.30 	is amended to read:
8.31 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
9.1 	(1) the school district's adjusted pupil unit amount of basic revenue, transition 
9.2 	revenue, and referendum revenue is less than the value of the school district at or 
9.3 	immediately above the 95th percentile of school districts in its equity region for those 
9.4 	revenue categories; and
9.5 	(2) the school district's administrative offices are not located in a city of the first 
9.6 	class on July 1, 1999.
9.7 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
9.8 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil 
9.9 	units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's 
9.10 	equity index computed under subdivision 27.
9.11 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
9.12 	under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil 
9.13 	units for that year times $14.
9.14 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
9.15 	equal to the district's resident adjusted pupil units times the difference between ten percent 
9.16 	of the statewide average amount of referendum revenue per resident adjusted pupil unit for 
9.17 	that year and the district's referendum revenue per resident adjusted pupil unit. A school 
9.18 	district's revenue under this paragraph must not exceed $100,000 for that year.
9.19 	(e) A school district's equity revenue for a school district located in the metro equity 
9.20 	region or a school district with its administrative offices located in any Minnesota county 
9.21 	in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area delineated in 
9.22 	2009 by the United States Census Bureau equals the amount computed in paragraphs (b), 
9.23 	(c), and (d) multiplied by 1.25.
9.24 	(f) A school district's additional equity revenue equals $50 times its adjusted pupil 
9.25 	units.

9.26 	EFFECTIVE DATE. The changes in paragraph (d) are effective for revenue for 
9.27 	fiscal year 2015 and later. The changes in paragraph (e) are effective for revenue for 
9.28 	fiscal years 2017 and later.

9.29 	Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
9.30 		Subd. 25.Regional equity gap. The regional equity gap equals the difference 
9.31 	between the value of the school district at or immediately above the fifth percentile of 
9.32 	adjusted general revenue per adjusted marginal cost pupil unit and the value of the school 
9.33 	district at or immediately above the 95th percentile of adjusted general revenue per 
9.34 	adjusted marginal cost pupil unit.

10.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
10.2 	and later.

10.3 	Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
10.4 		Subd. 26.District equity gap. A district's equity gap equals the greater of zero 
10.5 	or the difference between the district's adjusted general revenue and the value of the 
10.6 	school district at or immediately above the regional 95th percentile of adjusted general 
10.7 	revenue per adjusted marginal cost pupil unit.

10.8 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
10.9 	and later.

10.10 	Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31, 
10.11 	is amended to read:
10.12 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
10.13 	sum of the transition revenue the district would have received for fiscal year 2015 under 
10.14 	Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater 
10.15 	of zero or the difference between:
10.16 	(1) the sum of:
10.17 	(i) the general education revenue the district would have received for fiscal year 
10.18 	2015 according to Minnesota Statutes 2012, section 126C.10;
10.19 	(ii) the integration revenue the district received for fiscal year 2013 under Minnesota 
10.20 	Statutes 2012, section 124D.86;
10.21 	(iii) the pension adjustment the district would have received for fiscal year 2015 
10.22 	under Minnesota Statutes 2012, section 127A.50;
10.23 	(iv) the special education aid the district would have received for fiscal year 2015 
10.24 	under Minnesota Statutes 2012, section 125A.76; and
10.25 	(v) the special education excess cost aid the district would have received for fiscal 
10.26 	year 2015 under Minnesota Statutes 2012, section 125A.79; and
10.27 	(2) the sum of the district's:
10.28 	(i) general education revenue for fiscal year 2015 excluding transition revenue 
10.29 	under this section;
10.30 	(ii) achievement and integration revenue for fiscal year 2015 under section 
10.31 	124D.862; and
10.32 	(iii) special education aid for fiscal year 2015 under section 125A.76; and
10.33 	(iv) alternative teacher compensation revenue for fiscal year 2015 under section 
10.34 	122A.415,
11.1 	divided by the number of adjusted pupil units for fiscal year 2015.
11.2 	(b) A district's transition revenue for fiscal year 2015 and later equals the product of 
11.3 	the district's transition allowance times the district's adjusted pupil units.

11.4 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
11.5 	and later.

11.6 	Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is 
11.7 	amended to read:
11.8 		Subd. 6.Referendum equalization levy. (a) For fiscal year 2003 and later,
11.9 	 A district's referendum equalization levy equals the sum of the first tier referendum 
11.10 	equalization levy, the second tier referendum equalization levy, and the third tier 
11.11 	referendum equalization levy.
11.12 	(b) A district's first tier referendum equalization levy equals the district's first tier 
11.13 	referendum equalization revenue times the lesser of one or the ratio of the district's 
11.14 	referendum market value per resident pupil unit to $880,000.
11.15 	(c) A district's second tier referendum equalization levy equals the district's second 
11.16 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
11.17 	referendum market value per resident pupil unit to $510,000.
11.18 	(d) A district's third tier referendum equalization levy equals the district's third 
11.19 	tier referendum equalization revenue times the lesser of one or the ratio of the district's 
11.20 	referendum market value per resident pupil unit to $290,000.

11.21 	Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b, 
11.22 	is amended to read:
11.23 		Subd. 7b.Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum 
11.24 	of a district's referendum equalization aid and location equity aid under section 126C.10, 
11.25 	subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum 
11.26 	equalization aid the district would have received for fiscal year 2015 under Minnesota 
11.27 	Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have 
11.28 	received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs 
11.29 	(a), (b), and (c).
11.30 	(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and 
11.31 	location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later, 
11.32 	for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must 
11.33 	not be less than the product of (1) the district's referendum equalization aid for fiscal year 
11.34 	2015, times (2) the lesser of one or the ratio of the district's referendum revenue for that 
12.1 	school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser 
12.2 	of one or the ratio of the district's referendum market value used for fiscal year 2015 
12.3 	referendum equalization calculations to the district's referendum market value used for 
12.4 	that year's referendum equalization calculations.

12.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
12.6 	and later.

12.7 	Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is 
12.8 	amended to read:
12.9 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
12.10 	subdivision 1, may be increased in the amount approved by the voters of the district 
12.11 	at a referendum called for the purpose. The referendum may be called by the board. 
12.12 	The referendum must be conducted one or two calendar years before the increased levy 
12.13 	authority, if approved, first becomes payable. Only one election to approve an increase 
12.14 	may be held in a calendar year. Unless the referendum is conducted by mail under 
12.15 	subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the 
12.16 	first Monday in November. The ballot must state the maximum amount of the increased 
12.17 	revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board, 
12.18 	of increased revenue per adjusted pupil unit that differs from year to year over the number 
12.19 	of years for which the increased revenue is authorized or may state that the amount shall 
12.20 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
12.21 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
12.22 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
12.23 	compare the proposed levy authority to the existing expiring levy authority, and express 
12.24 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
12.25 	The ballot must designate the specific number of years, not to exceed ten, for which the 
12.26 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
12.27 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
12.28 	"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may 
12.29 	be modified to read, in cases of renewing existing levies at the same amount per pupil 
12.30 	as in the previous year:
12.31 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
12.32 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
12.33 	SCHEDULED TO EXPIRE."
12.34 	The ballot may contain a textual portion with the information required in this 
12.35 	subdivision and a question stating substantially the following:
13.1 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
13.2 	School District No. .., be approved?"
13.3 	If approved, an amount equal to the approved revenue per adjusted pupil unit times 
13.4 	the adjusted pupil units for the school year beginning in the year after the levy is certified 
13.5 	shall be authorized for certification for the number of years approved, if applicable, or 
13.6 	until revoked or reduced by the voters of the district at a subsequent referendum.
13.7 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
13.8 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
13.9 	and the proposed revenue increase. The board need not mail more than one notice to any 
13.10 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
13.11 	those shown to be owners on the records of the county auditor or, in any county where 
13.12 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
13.13 	Every property owner whose name does not appear on the records of the county auditor 
13.14 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
13.15 	has requested in writing that the county auditor or county treasurer, as the case may be, 
13.16 	include the name on the records for this purpose. The notice must project the anticipated 
13.17 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
13.18 	homesteads, apartments, and commercial-industrial property within the school district.
13.19 	The notice for a referendum may state that an existing referendum levy is expiring 
13.20 	and project the anticipated amount of increase over the existing referendum levy in 
13.21 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
13.22 	homesteads, apartments, and commercial-industrial property within the district.
13.23 	The notice must include the following statement: "Passage of this referendum will 
13.24 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
13.25 	the notice may include the following statement: "Passage of this referendum extends an 
13.26 	existing operating referendum at the same amount per pupil as in the previous year."
13.27 	(c) A referendum on the question of revoking or reducing the increased revenue 
13.28 	amount authorized pursuant to paragraph (a) may be called by the board. A referendum to 
13.29 	revoke or reduce the revenue amount must state the amount per resident marginal cost
13.30 	 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved 
13.31 	by the voters of the district pursuant to paragraph (a) must be available to the school 
13.32 	district at least once before it is subject to a referendum on its revocation or reduction for 
13.33 	subsequent years. Only one revocation or reduction referendum may be held to revoke or 
13.34 	reduce referendum revenue for any specific year and for years thereafter.
13.35 	(d) The approval of 50 percent plus one of those voting on the question is required to 
13.36 	pass a referendum authorized by this subdivision.
14.1 	(e) At least 15 days before the day of the referendum, the district must submit a 
14.2 	copy of the notice required under paragraph (b) to the commissioner and to the county 
14.3 	auditor of each county in which the district is located. Within 15 days after the results 
14.4 	of the referendum have been certified by the board, or in the case of a recount, the 
14.5 	certification of the results of the recount by the canvassing board, the district must notify 
14.6 	the commissioner of the results of the referendum.

14.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
14.8 	and later.

14.9 	Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a, 
14.10 	is amended to read:
14.11 		Subd. 9a.Board-approved referendum allowance. Notwithstanding subdivision 
14.12 	9, a school district may convert up to $300 per adjusted pupil unit of referendum authority 
14.13 	from voter approved to board approved by a board vote. A district with less than $300 per 
14.14 	adjusted pupil unit of referendum authority after the local optional revenue subtraction 
14.15 	under subdivision 1 may authorize new referendum authority up to the difference between 
14.16 	$300 per adjusted pupil unit and the district's referendum authority. The board may 
14.17 	authorize this levy for up to five years and may subsequently reauthorize that authority 
14.18 	in increments of up to five years.

14.19 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
14.20 	and later.

14.21 	Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
14.22 	126C.44 SAFE SCHOOLS LEVY.
14.23 	(a) Each district may make a levy on all taxable property located within the district 
14.24 	for the purposes specified in this section. The maximum amount which may be levied for 
14.25 	all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil 
14.26 	units for the school year. The proceeds of the levy must be reserved and used for directly 
14.27 	funding the following purposes or for reimbursing the cities and counties who contract 
14.28 	with the district for the following purposes:
14.29 	(1) to pay the costs incurred for the salaries, benefits, and transportation costs of 
14.30 	peace officers and sheriffs for liaison in services in the district's schools;
14.31 	(2) to pay the costs for a drug abuse prevention program as defined in section 
14.32 	609.101, subdivision 3, paragraph (e), in the elementary schools;
15.1 	(3) to pay the costs for a gang resistance education training curriculum in the 
15.2 	district's schools;
15.3 	(4) to pay the costs for security in the district's schools and on school property;
15.4 	(5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
15.5 	voluntary opt-in suicide prevention tools, and violence prevention measures taken by 
15.6 	the school district;
15.7 	(6) to pay costs for licensed school counselors, licensed school nurses, licensed 
15.8 	school social workers, licensed school psychologists, and licensed alcohol and chemical 
15.9 	dependency counselors to help provide early responses to problems;
15.10 	(7) to pay for facility security enhancements including laminated glass, public 
15.11 	announcement systems, emergency communications devices, and equipment and facility 
15.12 	modifications related to violence prevention and facility security;
15.13 	(8) to pay for costs associated with improving the school climate; or
15.14 	(9) to pay costs for colocating and collaborating with mental health professionals 
15.15 	who are not district employees or contractors.
15.16 	(b) For expenditures under paragraph (a), clause (1), the district must initially 
15.17 	attempt to contract for services to be provided by peace officers or sheriffs with the 
15.18 	police department of each city or the sheriff's department of the county within the district 
15.19 	containing the school receiving the services. If a local police department or a county 
15.20 	sheriff's department does not wish to provide the necessary services, the district may 
15.21 	contract for these services with any other police or sheriff's department located entirely or 
15.22 	partially within the school district's boundaries.
15.23 	(c) A school district that is a member of an intermediate school district may 
15.24 	include in its authority under this section the costs associated with safe schools activities 
15.25 	authorized under paragraph (a) for intermediate school district programs. This authority 
15.26 	must not exceed $10 $15  times the adjusted marginal cost pupil units of the member 
15.27 	districts. This authority is in addition to any other authority authorized under this section. 
15.28 	Revenue raised under this paragraph must be transferred to the intermediate school district.

15.29 	EFFECTIVE DATE. This section is effective for taxes payable in 2015 and later.

15.30 	Sec. 21. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
15.31 		Subd. 2.Definitions. (a) "Other district receipts" means payments by county 
15.32 	treasurers pursuant to section 276.10, apportionments from the school endowment fund 
15.33 	pursuant to section 127A.33, apportionments by the county auditor pursuant to section 
15.34 	127A.34, subdivision 2, and payments to school districts by the commissioner of revenue 
15.35 	pursuant to chapter 298.
16.1 	(b) "Cumulative amount guaranteed" means the product of
16.2 	(1) the cumulative disbursement percentage shown in subdivision 3; times
16.3 	(2) the sum of
16.4 	(i) the current year aid payment percentage of the estimated aid and credit 
16.5 	entitlements paid according to subdivision 13; plus
16.6 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
16.7 	(iii) the other district receipts.
16.8 	(c) "Payment date" means the date on which state payments to districts are made 
16.9 	by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday, 
16.10 	or a weekday which is a legal holiday, the payment shall be made on the immediately 
16.11 	preceding business day. The commissioner may make payments on dates other than 
16.12 	those listed in subdivision 3, but only for portions of payments from any preceding 
16.13 	payment dates which could not be processed by the electronic funds transfer method due 
16.14 	to documented extenuating circumstances.
16.15 	(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in 
16.16 	fiscal year 2011, and 60in fiscal years 2012 and later 90.

16.17 	Sec. 22. Minnesota Statutes 2012, section 127A.45, subdivision 3, is amended to read:
16.18 		Subd. 3.Payment dates and percentages. (a) The commissioner shall pay to a 
16.19 	district on the dates indicated an amount computed as follows: the cumulative amount 
16.20 	guaranteed minus the sum of (1) the district's other district receipts through the current 
16.21 	payment, and (2) the aid and credit payments through the immediately preceding payment. 
16.22 	For purposes of this computation, the payment dates and the cumulative disbursement 
16.23 	percentages are as follows:

16.24		Payment date
	Percentage
		
16.25	Payment 1
	July 15:
	5.5
		
16.26	Payment 2
	July 30:
	8.0
		
16.27	Payment 3
	August 15:
	17.5
		
16.28	Payment 4
	August 30:
	20.0
		
16.29	Payment 5
	September 15:
	22.5
		
16.30	Payment 6
	September 30:
	25.0
		
16.31	Payment 7
	October 15:
	27.0
		
16.32	Payment 8
	October 30:
	30.0
		
16.33	Payment 9
	November 15:
	32.5
		
16.34	Payment 10
	November 30:
	36.5
		
16.35	Payment 11
	December 15:
	42.0
		
16.36	Payment 12
	December 30:
	45.0
		
16.37	Payment 13
	January 15:
	50.0
		
17.1	Payment 14
	January 30:
	54.0
		
17.2	Payment 15
	February 15:
	58.0
		
17.3	Payment 16
	February 28:
	63.0
		
17.4	Payment 17
	March 15:
	68.0
		
17.5	Payment 18
	March 30:
	74.0
		
17.6	Payment 19
	April 15:
	78.0
		
17.7	Payment 20
	April 30:
	85.0
		
17.8	Payment 21
	May 15:
	90.0
		
17.9	Payment 22
	May 30:
	95.0
		
17.10	Payment 23
	June 20:
	100.0
		
17.11 	(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay 
17.12 	to a school district or charter school on the dates indicated an amount computed as follows:

17.13
17.14	Payment 3
	August 15: the final adjustment for the prior fiscal year for the state paid 
property tax credits established in section 273.1392
	
17.15
17.16	Payment 4
	August 30: 30 percent of the final adjustment for the prior fiscal year for 
all aid entitlements except state paid property tax credits
	
17.17
17.18	Payment 6
	September 30: 40 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
17.19
17.20	Payment 8
	October 30: 30 percent of the final adjustment for the prior fiscal year 
for all aid entitlements except state paid property tax credits
	
17.21 	(c) Notwithstanding paragraph (b), if the current year aid payment percentage 
17.22 	under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under 
17.23 	paragraph (a), the commissioner shall pay to a charter school on the dates indicated an 
17.24 	amount computed as follows:

17.25
17.26	Payment 1
	July 15: 75 percent of the final adjustment for the prior fiscal year for 
all aid entitlements
	
17.27
17.28	Payment 8
	October 30: 25 percent of the final adjustment for the prior fiscal year 
for all aid entitlements

17.29 	EFFECTIVE DATE. This section is effective July 1, 2015.

17.30 	Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is 
17.31 	amended to read:
17.32 		Subd. 7.Alternative attendance programs. (a) The general education aid and 
17.33 	special education aid for districts must be adjusted for each pupil attending a nonresident 
17.34 	district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The 
17.35 	adjustments must be made according to this subdivision.
17.36 	(b) For purposes of this subdivision, the "unreimbursed cost of providing special 
17.37 	education and services" means the difference between: (1) the actual cost of providing 
17.38 	special instruction and services, including special transportation and unreimbursed 
18.1 	building lease and debt service costs for facilities used primarily for special education, for 
18.2 	a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section 
18.3 	125A.51, who is enrolled in a program listed in this subdivision, minus (2) if the pupil 
18.4 	receives special instruction and services outside the regular classroom for more than 
18.5 	60 percent of the school day, the amount of general education revenue and referendum 
18.6 	equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable 
18.7 	to that pupil for the portion of time the pupil receives special instruction and services 
18.8 	outside of the regular classroom, excluding portions attributable to district and school 
18.9 	administration, district support services, operations and maintenance, capital expenditures, 
18.10 	and pupil transportation, minus (3) special education aid under section 125A.76 
18.11 	attributable to that pupil, that is received by the district providing special instruction and 
18.12 	services. For purposes of this paragraph, general education revenue and referendum 
18.13 	equalization aid attributable to a pupil must be calculated using the serving district's 
18.14 	average general education revenue and referendum equalization aid per adjusted pupil unit.
18.15 	(c) For fiscal year 2015 and later, special education aid paid to a resident district 
18.16 	must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing 
18.17 	special education and services.
18.18 	(d) Notwithstanding paragraph (c), special education aid paid to a resident district 
18.19 	must be reduced by an amount equal to 100 percent of the unreimbursed cost of special 
18.20 	education and services provided to students at an intermediate district, cooperative, or 
18.21 	charter school where the percent of students eligible for special education services is at 
18.22 	least 70 percent of the charter school's total enrollment.
18.23 	(e) Special education aid paid to the district or cooperative providing special 
18.24 	instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
18.25 	must be increased by the amount of the reduction in the aid paid to the resident district 
18.26 	under paragraphs (c) and (d). If the resident district's special education aid is insufficient 
18.27 	to make the full adjustment, the remaining adjustment shall be made to other state aids 
18.28 	due to the district.
18.29 	(f) An area learning center operated by a service cooperative, intermediate district, 
18.30 	education district, or a joint powers cooperative may elect through the action of the 
18.31 	constituent boards to charge the resident district tuition for pupils rather than to have the 
18.32 	general education revenue paid to a fiscal agent school district. Except as provided in 
18.33 	paragraph (e), the district of residence must pay tuition equal to at least 90 and no more 
18.34 	than 100 percent of the district average general education revenue per pupil unit minus 
18.35 	an amount equal to the product of the formula allowance according to section 126C.10, 
18.36 	subdivision 2, times .0466, calculated without compensatory revenue and transportation 
19.1 	sparsity revenue, times the number of pupil units for pupils attending the area learning 
19.2 	center.

19.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
19.4 	and later.

19.5 	Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
19.6 	Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND 
19.7 	SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
 19.8 		Subdivision 1.Establishment; requirements for participation. (a) A five-year
19.9 	 pilot project for the 2013-2014 through 2017-2018 school years is established to improve 
19.10 	student and school outcomes by allowing groups of school districts to work together to 
19.11 	provide innovative education programs and activities and share district resources. The 
19.12 	pilot project may last until June 30, 2018, or for up to five years, whichever is less, except 
19.13 	that innovation partnerships formed during the period of the pilot project may continue 
19.14 	past June 30, 2018, with the agreement of the partnership members.
19.15 	(b) To participate in this pilot project to improve student and school outcomes, a 
19.16 	group of two or more school districts must collaborate with school staff and receive formal 
19.17 	school board approval to form a partnership. The partnership must develop a plan to 
19.18 	provide challenging programmatic options for students, create professional development 
19.19 	opportunities for educators, increase student engagement and connection and challenging 
19.20 	learning opportunities for students, or demonstrate efficiencies in delivering financial and 
19.21 	other services. The plan must establish:
19.22 	(1) collaborative educational goals and objectives;
19.23 	(2) strategies and processes to implement those goals and objectives, including a 
19.24 	budget process with periodic expenditure reviews;
19.25 	(3) valid and reliable measures to evaluate progress in realizing the goals and 
19.26 	objectives;
19.27 	(4) an implementation timeline; and
19.28 	(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee 
19.29 	schedules, and legal considerations needed to fully implement the plan.
19.30 	A partnership may invite additional districts to join the partnership during the pilot 
19.31 	project term after notifying the commissioner.
19.32 	(c) A partnership of interested districts must apply by February 1, 2013, of any year
19.33 	 to the education commissioner in the form and manner the commissioner determines, 
19.34 	consistent with this section. The application must contain the formal approval adopted by 
19.35 	the school board in each district to participate in the plan.
20.1 	(d) Notwithstanding other law to the contrary, a participating school district under 
20.2 	this section continues to: receive revenue and maintain its taxation authority; be organized 
20.3 	and governed by an elected school board with general powers under Minnesota Statutes, 
20.4 	section 123B.02; and be subject to employment agreements under Minnesota Statutes, 
20.5 	chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue 
20.6 	to remain employees of the employing school district.
20.7 		Subd. 2.Commissioner's role. Interested groups of school districts must submit 
20.8 	a completed application to the commissioner by March 1, 2013, of any year in the form 
20.9 	and manner determined by the commissioner. The education commissioner must convene 
20.10 	an advisory panel composed of a teacher appointed by Education Minnesota, a school 
20.11 	principal appointed by the Minnesota Association of Secondary School Principals, a 
20.12 	school board member appointed by the Minnesota School Boards Association, and a 
20.13 	school superintendent appointed by the Minnesota Association of School Administrators 
20.14 	to advise the commissioner on applicants' qualifications to participate in this pilot project. 
20.15 	The commissioner must select between three and may select up to six qualified applicants 
20.16 	under subdivision 1 by April 1, 2013, of any year to participate in this pilot project, 
20.17 	ensuring an equitable geographical distribution of project participants to the extent 
20.18 	practicable. The commissioner must select only those applicants that fully comply with 
20.19 	the requirements in subdivision 1. The commissioner must terminate a project participant 
20.20 	that fails to effectively implement the goals and objectives contained in its application and 
20.21 	according to its stated timeline.
20.22 		Subd. 3.Pilot project evaluation. Participating school districts must submit pilot 
20.23 	project data to the commissioner in the form and manner determined by the commissioner. 
20.24 	The education commissioner must analyze participating districts' progress in realizing 
20.25 	their educational goals and objectives to work together in providing innovative education 
20.26 	programs and activities and sharing resources. The commissioner must include the 
20.27 	analysis of best practices in a report to the legislative committees with jurisdiction over 
20.28 	kindergarten through grade 12 education finance and policy on the efficacy of this pilot 
20.29 	project. The commissioner may shall submit an interim project report at any time by 
20.30 	February 1, 2016, and must submit a final report to the legislature by February 1, 2018
20.31 	 2019, recommending whether or not to continue or expand the pilot project.

20.32 	Sec. 25. Laws 2012, chapter 263, section 1, the effective date, is amended to read:

20.33 	EFFECTIVE DATE. This section is effective the day following final enactment 
20.34 	and applies to the 2013-2014 through 2017-2018 school years.

21.1 	Sec. 26. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
21.2 		Subd. 2.General education aid. For general education aid under Minnesota 
21.3 	Statutes, section 126C.13, subdivision 4:

21.4
21.5		$
	6,051,766,000
6,851,972,000
	.....
	2014
	
21.6
21.7		$
	6,370,640,000
6,495,698,000
	.....
	2015
	
21.8 	The 2014 appropriation includes $781,842,000 $780,709,000 for 2013 and 
21.9 	$5,269,924,000 $6,071,263,000 for 2014.
21.10 	The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and 
21.11 	$5,547,600,000 $5,906,601,000 for 2015.

21.12 	Sec. 27. APPROPRIATIONS.
 21.13 		Subdivision 1.Department of Education. The sums indicated in this section are 
21.14 	appropriated from the general fund to the Department of Education for the fiscal years 
21.15 	designated.
21.16 		Subd. 2.Recovery program grants. For recovery program grants under Minnesota 
21.17 	Statutes, section 124D.695:

21.18		$
	500,000
	.....
	2015

21.19 	Sec. 28. REVISOR'S INSTRUCTION.
 21.20 	In Minnesota Statutes, the revisor of statutes shall change the term "location equity" 
21.21 	to "local optional."

21.22 	ARTICLE 2
21.23 	EDUCATION EXCELLENCE

21.24 	Section 1. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to 
21.25 	read:
21.26 		Subd. 13.Immediate discharge. (a) Except as otherwise provided in paragraph 
21.27 	(b), a board may discharge a continuing-contract teacher, effective immediately, upon any 
21.28 	of the following grounds:
21.29 	(1) immoral conduct, insubordination, or conviction of a felony;
21.30 	(2) conduct unbecoming a teacher which requires the immediate removal of the 
21.31 	teacher from classroom or other duties;
22.1 	(3) failure without justifiable cause to teach without first securing the written release 
22.2 	of the school board;
22.3 	(4) gross inefficiency which the teacher has failed to correct after reasonable written 
22.4 	notice;
22.5 	(5) willful neglect of duty; or
22.6 	(6) continuing physical or mental disability subsequent to a 12 months leave of 
22.7 	absence and inability to qualify for reinstatement in accordance with subdivision 12.
22.8 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
22.9 	discriminatory practice described in section 363A.13.
22.10 	Prior to discharging a teacher under this paragraph, the board must notify the teacher 
22.11 	in writing and state its ground for the proposed discharge in reasonable detail. Within 
22.12 	ten days after receipt of this notification the teacher may make a written request for a 
22.13 	hearing before the board and it shall be granted before final action is taken. The board 
22.14 	may suspend a teacher with pay pending the conclusion of the hearing and determination 
22.15 	of the issues raised in the hearing after charges have been filed which constitute ground for 
22.16 	discharge. If a teacher has been charged with a felony and the underlying conduct that 
22.17 	is the subject of the felony charge is a ground for a proposed immediate discharge, the 
22.18 	suspension pending the conclusion of the hearing and determination of the issues may be 
22.19 	without pay. If a hearing under this paragraph is held, the board must reimburse the teacher 
22.20 	for any salary or compensation withheld if the final decision of the board or the arbitrator 
22.21 	does not result in a penalty to or suspension, termination, or discharge of the teacher.
22.22 	(b) A board must discharge a continuing-contract teacher, effective immediately, 
22.23 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
22.24 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
22.25 	(c) When a teacher is discharged under paragraph (b) or when the commissioner 
22.26 	makes a final determination of child maltreatment involving a teacher under section 
22.27 	626.556, subdivision 11, the school principal or other person having administrative 
22.28 	control of the school must include in the teacher's employment record the information 
22.29 	contained in the record of the disciplinary action or the final maltreatment determination, 
22.30 	consistent with the definition of public data under section 13.41, subdivision 5, and must 
22.31 	provide the Board of Teaching and the licensing division at the department with the 
22.32 	necessary and relevant information to enable the Board of Teaching and the department's 
22.33 	licensing division to fulfill their statutory and administrative duties related to issuing, 
22.34 	renewing, suspending, or revoking a teacher's license. Information received by the Board 
22.35 	of Teaching or the licensing division at the department under this paragraph is governed 
22.36 	by section 13.41 or other applicable law governing data of the receiving entity. In addition 
23.1 	to the background check required under section 123B.03, a school board or other school 
23.2 	hiring authority must contact the Board of Teaching and the department to determine 
23.3 	whether the teacher's license has been suspended or revoked, consistent with the discharge 
23.4 	and final maltreatment determinations identified in this paragraph.

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

23.6 	Sec. 2. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
23.7 		Subd. 6.Grounds for discharge or demotion. (a) Except as otherwise provided 
23.8 	in paragraph (b), causes for the discharge or demotion of a teacher either during or after 
23.9 	the probationary period must be:
23.10 	(1) immoral character, conduct unbecoming a teacher, or insubordination;
23.11 	(2) failure without justifiable cause to teach without first securing the written release 
23.12 	of the school board having the care, management, or control of the school in which the 
23.13 	teacher is employed;
23.14 	(3) inefficiency in teaching or in the management of a school, consistent with 
23.15 	subdivision 5, paragraph (b);
23.16 	(4) affliction with active tuberculosis or other communicable disease must be 
23.17 	considered as cause for removal or suspension while the teacher is suffering from such 
23.18 	disability; or
23.19 	(5) discontinuance of position or lack of pupils.
23.20 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
23.21 	discriminatory practice described in section 363A.13.
23.22 	(b) A probationary or continuing-contract teacher must be discharged immediately 
23.23 	upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the 
23.24 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
23.25 	(c) When a teacher is discharged under paragraph (b) or when the commissioner 
23.26 	makes a final determination of child maltreatment involving a teacher under section 
23.27 	626.556, subdivision 11, the school principal or other person having administrative 
23.28 	control of the school must include in the teacher's employment record the information 
23.29 	contained in the record of the disciplinary action or the final maltreatment determination, 
23.30 	consistent with the definition of public data under section 13.41, subdivision 5, and must 
23.31 	provide the Board of Teaching and the licensing division at the department with the 
23.32 	necessary and relevant information to enable the Board of Teaching and the department's 
23.33 	licensing division to fulfill their statutory and administrative duties related to issuing, 
23.34 	renewing, suspending, or revoking a teacher's license. Information received by the Board 
23.35 	of Teaching or the licensing division at the department under this paragraph is governed 
24.1 	by section 13.41 or other applicable law governing data of the receiving entity. In addition 
24.2 	to the background check required under section 123B.03, a school board or other school 
24.3 	hiring authority must contact the Board of Teaching and the department to determine 
24.4 	whether the teacher's license has been suspended or revoked, consistent with the discharge 
24.5 	and final maltreatment determinations identified in this paragraph.

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

24.7 	Sec. 3. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
24.8 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
24.9 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
24.10 	application approved by the commissioner is eligible for alternative teacher compensation 
24.11 	revenue.
24.12 	(b) For school district and intermediate school district applications, the commissioner 
24.13 	must consider only those applications to participate that are submitted jointly by a 
24.14 	district and the exclusive representative of the teachers. The application must contain an 
24.15 	alternative teacher professional pay system agreement that:
24.16 	(1) implements an alternative teacher professional pay system consistent with 
24.17 	section 122A.414; and
24.18 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
24.19 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
24.20 	district may enter into a contract for a term of two or four years.
24.21 	Alternative teacher compensation revenue for a qualifying school district or site in 
24.22 	which the school board and the exclusive representative of the teachers agree to place 
24.23 	teachers in the district or at the site on the alternative teacher professional pay system 
24.24 	equals $260 times the number of pupils enrolled at the district or site on October 1 of 
24.25 	the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
24.26 	intermediate school district must be calculated under section 126C.10, subdivision 34
24.27 	 subdivision 4, paragraphs (a) and (b).
24.28 	(c) For a newly combined or consolidated district, the revenue shall be computed 
24.29 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
24.30 	into the combination or consolidation. The commissioner may adjust the revenue computed 
24.31 	for a site using prior year data to reflect changes attributable to school closings, school 
24.32 	openings, or grade level reconfigurations between the prior year and the current year.
24.33 	(d) The revenue is available only to school districts, intermediate school districts, 
24.34 	school sites, and charter schools that fully implement an alternative teacher professional 
24.35 	pay system by October 1 of the current school year.

25.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
25.2 	and later.

25.3 	Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is 
25.4 	amended to read:
25.5 		Subdivision 1.Initial achievement and integration revenue. (a) An eligible 
25.6 	district's initial achievement and integration revenue equals the lesser of 100.3 percent of 
25.7 	the district's expenditures under the budget approved by the commissioner under section 
25.8 	124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive 
25.9 	revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil 
25.10 	units for that year times the ratio of the district's enrollment of protected students for the 
25.11 	previous school year to total enrollment for the previous school year and (2) the greater of 
25.12 	zero or 66 percent of the difference between the district's integration revenue for fiscal 
25.13 	year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
25.14 	(b) In each year, 0.3 percent of each district's initial achievement and integration 
25.15 	revenue is transferred to the department for the oversight and accountability activities 
25.16 	required under this section and section 124D.861.

25.17 	EFFECTIVE DATE. This section is effective the day following final enactment 
25.18 	and applies to revenue for fiscal year 2014 and later.

25.19 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is 
25.20 	amended to read:
25.21 		Subd. 2.Incentive revenue. An eligible school district's maximum incentive 
25.22 	revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must 
25.23 	be A district's incentive revenue equals the lesser of the maximum incentive revenue 
25.24 	or the district's expenditures for implementing a voluntary plan to reduce racial and 
25.25 	economic enrollment disparities through intradistrict and interdistrict activities that have 
25.26 	been approved as a part of the district's achievement and integration plan under the budget 
25.27 	approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).

25.28 	EFFECTIVE DATE. This section is effective the day following final enactment 
25.29 	and applies to revenue for fiscal year 2014 and later.

25.30 	Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 11, is amended to read:
25.31 		Subd. 11.Concurrent enrollment program. For concurrent enrollment programs 
25.32 	under Minnesota Statutes, section 124D.091:

26.1		$
	2,000,000
	.....
	2014
	
26.2
26.3		$
	2,000,000
3,897,000
	.....
	2015
	
26.4 	If the appropriation is insufficient, the commissioner must proportionately reduce 
26.5 	the aid payment to each district.
26.6 	Any balance in the first year does not cancel but is available in the second year. The 
26.7 	annual base budget for this program is $2,000,000 for fiscal years 2016 and 2017.

26.8 	Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
26.9 		Subd. 15.Early childhood literacy programs. For early childhood literacy 
26.10 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

26.11		$
	4,125,000
	.....
	2014
	
26.12
26.13		$
	4,125,000
 4,625,000
	.....
	2015
	
26.14 	Up to $4,125,000 eachin the first year and $4,625,000 in the second year is for 
26.15 	leveraging federal and private funding to support AmeriCorps members serving in the 
26.16 	Minnesota Reading Corps program established by ServeMinnesota, including costs 
26.17 	associated with the training and teaching of early literacy skills to children age three 
26.18 	to grade 3 and the evaluation of the impact of the program under Minnesota Statutes, 
26.19 	sections 124D.38, subdivision 2, and 124D.42, subdivision 6. Up to $500,000 in fiscal 
26.20 	year 2015 must be used to support priority and focus schools as defined by the Department 
26.21 	of Education and to expand kindergarten programming.
26.22 	Any balance in the first year does not cancel but is available in the second year.

26.23 	Sec. 8. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER 
26.24 	PROFESSIONAL PAY SYSTEM AND TEACHER DEVELOPMENT AND 
26.25 	EVALUATION PROGRAM.
 26.26 	To better align Minnesota's alternative teacher professional pay system under 
26.27 	Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher development 
26.28 	and evaluation program under Minnesota Statutes, sections 122A.40, subdivision 8, and 
26.29 	122A.41, subdivision 5, and effect and fund an improved alignment of this system and 
26.30 	program, the commissioner of education must consult with stakeholders, including, but 
26.31 	not limited to, representatives of the Minnesota Association of School Administrators, 
26.32 	the Minnesota Association of Secondary School Principals, the Minnesota Elementary 
26.33 	School Principals' Association, Education Minnesota, Schools for Equity in Education, the 
26.34 	Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota 
26.35 	School Boards Association, the Department of Education, the College of Education 
27.1 	and Human Development at the University of Minnesota, the Minnesota Association 
27.2 	of the Colleges for Teacher Education, licensed elementary and secondary school 
27.3 	teachers employed in school districts with an alternative teacher professional pay system 
27.4 	agreement and licensed elementary and secondary school teachers employed in school 
27.5 	districts without an alternative teacher professional pay system agreement, where one or 
27.6 	more of these teachers may be a master teacher, peer evaluator, in another teacher leader 
27.7 	position, or national board certified teacher, a teacher or school administrator employed in 
27.8 	a Minnesota charter school with an alternative teacher professional pay system agreement 
27.9 	and a teacher or school administrator employed in a Minnesota charter school without an 
27.10 	alternative teacher professional pay system agreement, a parent or guardian of a student 
27.11 	currently enrolled in a Minnesota public school, the Association of Metropolitan School 
27.12 	Districts, and the Minnesota Rural Education Association. The commissioner also must 
27.13 	consult with members of the house of representatives and members of the senate.
27.14 	The commissioner, by February 1, 2015, must submit to the education policy and 
27.15 	finance committees of the legislature written recommendations on better aligning and 
27.16 	financing the alternative teacher professional pay system and teacher development and 
27.17 	evaluation program.

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

27.19 	Sec. 9. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
 27.20 	(a) The commissioner of education must consult with experts knowledgeable about 
27.21 	secondary and postsecondary career and technical education programs to determine the 
27.22 	content and status of particular career and technical education programs in Minnesota 
27.23 	school districts, including cooperating districts under Minnesota Statutes, 123A.33, 
27.24 	subdivision 2, integration districts, and postsecondary institutions partnering with school 
27.25 	districts or offering courses through PSEO or career and technical programs and the rates 
27.26 	of student participation and completion for these various programs, including: agriculture, 
27.27 	food, and natural resources; architecture and construction; arts, audiovisual technology, 
27.28 	and communications; business management and administration; computer science; family 
27.29 	and consumer science; finance; health science; hospitality and tourism; human services; 
27.30 	information technology; manufacturing; marketing; science, technology, engineering, and 
27.31 	mathematics; and transportation, distribution, and logistics.
27.32 	(b) To accomplish paragraph (a) and to understand the current role of local school 
27.33 	districts and postsecondary institutions in providing career and technical education 
27.34 	programs, the commissioner of education, in consultation with experts, also must examine 
27.35 	the extent to which secondary and postsecondary education programs offer students a 
28.1 	progression of coordinated, nonduplicative courses that adequately prepare students to 
28.2 	successfully complete a career and technical education program.
28.3 	(c) The commissioner of education must submit a report by February 1, 2015, 
28.4 	to the education policy and finance committees of the legislature, consistent with this 
28.5 	section, and include information about each district's dedicated equipment, resources, and 
28.6 	relationships with postsecondary institutions and the local business community.

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

28.8 	Sec. 10. APPROPRIATIONS.
 28.9 		Subdivision 1.Department of Education. The sums indicated in this section are 
28.10 	appropriated from the general fund to the Department of Education for the fiscal years 
28.11 	designated.
28.12 		Subd. 2.Career and technical program inventory. For the career and technical 
28.13 	program inventory program under section 9:

28.14		$
	150,000
	.....
	2015
	
28.15 	This is a onetime appropriation.
28.16 		Subd. 3.Teacher Professional Pay System and Teacher Evaluation Program 
28.17 	alignment. For the alignment and reporting activities under section 8:

28.18		$
	25,000
	.....
	2015

28.19 	ARTICLE 3
28.20 	SPECIAL EDUCATION

28.21 	Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
28.22 	125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
28.23 		Subdivision 1.Restrictive procedures plan. (a) Schools that intend to use 
28.24 	restrictive procedures shall maintain and make publicly accessible in an electronic format 
28.25 	on a school or district Web site or make a paper copy available upon request describing a 
28.26 	restrictive procedures plan for children with disabilities that at least:
28.27 	(1) lists the restrictive procedures the school intends to use;
28.28 	(2) describes how the school will implement a range of positive behavior strategies 
28.29 	and provide links to mental health services;
28.30 	(3) describes how the school will provide training on de-escalation techniques, 
28.31 	consistent with section 122A.09, subdivision 4, paragraph (k);
29.1 	(4) describes how the school will monitor and review the use of restrictive 
29.2 	procedures, including:
29.3 	(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a), 
29.4 	clause (5); and
29.5 	(ii) convening an oversight committee to undertake a quarterly review of the use 
29.6 	of restrictive procedures based on patterns or problems indicated by similarities in the 
29.7 	time of day, day of the week, duration of the use of a procedure, the individuals involved, 
29.8 	or other factors associated with the use of restrictive procedures; the number of times a 
29.9 	restrictive procedure is used schoolwide and for individual children; the number and types 
29.10 	of injuries, if any, resulting from the use of restrictive procedures; whether restrictive 
29.11 	procedures are used in nonemergency situations; the need for additional staff training; and 
29.12 	proposed actions to minimize the use of restrictive procedures; and
29.13 	(4) (5) includes a written description and documentation of the training staff 
29.14 	completed under subdivision 5.
29.15 	(b) Schools annually must publicly identify oversight committee members who 
29.16 	must at least include:
29.17 	(1) a mental health professional, school psychologist, or school social worker;
29.18 	(2) an expert in positive behavior strategies;
29.19 	(3) a special education administrator; and
29.20 	(4) a general education administrator.
29.21 		Subd. 2.Restrictive procedures. (a) Restrictive procedures may be used only 
29.22 	by a licensed special education teacher, school social worker, school psychologist, 
29.23 	behavior analyst certified by the National Behavior Analyst Certification Board, a person 
29.24 	with a master's degree in behavior analysis, other licensed education professional, 
29.25 	paraprofessional under section 120B.363, or mental health professional under section 
29.26 	245.4871, subdivision 27, who has completed the training program under subdivision 5.
29.27 	(b) A school shall make reasonable efforts to notify the parent on the same day a 
29.28 	restrictive procedure is used on the child, or if the school is unable to provide same-day 
29.29 	notice, notice is sent within two days by written or electronic means or as otherwise 
29.30 	indicated by the child's parent under paragraph (d) (f).
29.31 	(c) The district must hold a meeting of the individualized education program team, 
29.32 	conduct or review a functional behavioral analysis, review data, consider developing 
29.33 	additional or revised positive behavioral interventions and supports, consider actions to 
29.34 	reduce the use of restrictive procedures, and modify the individualized education program 
29.35 	or behavior intervention plan as appropriate. The district must hold the meeting: within 
29.36 	ten calendar days after district staff use restrictive procedures on two separate school 
30.1 	days within 30 calendar days or a pattern of use emerges and the child's individualized 
30.2 	education program or behavior intervention plan does not provide for using restrictive 
30.3 	procedures in an emergency; or at the request of a parent or the district after restrictive 
30.4 	procedures are used. The district must review use of restrictive procedures at a child's 
30.5 	annual individualized education program meeting when the child's individualized 
30.6 	education program provides for using restrictive procedures in an emergency.
30.7 	(d) If the individualized education program team under paragraph (c) determines 
30.8 	that existing interventions and supports are ineffective in reducing the use of restrictive 
30.9 	procedures or the district uses restrictive procedures on a child on ten or more school days 
30.10 	during the same school year, the team, as appropriate, either must consult with other 
30.11 	professionals working with the child; consult with experts in behavior analysis, mental 
30.12 	health, communication, or autism; consult with culturally competent professionals; 
30.13 	review existing evaluations, resources, and successful strategies; or consider whether to 
30.14 	reevaluate the child.
30.15 	(e) At the individualized education program meeting under paragraph (c), the team 
30.16 	must review any known medical or psychological limitations, including any medical 
30.17 	information the parent provides voluntarily, that contraindicate the use of a restrictive 
30.18 	procedure, consider whether to prohibit that restrictive procedure, and document any 
30.19 	prohibition in the individualized education program or behavior intervention plan.
30.20 	(f) An individualized education program team may plan for using restrictive 
30.21 	procedures and may include these procedures in a child's individualized education 
30.22 	program or behavior intervention plan; however, the restrictive procedures may be used 
30.23 	only in response to behavior that constitutes an emergency, consistent with this section. 
30.24 	The individualized education program or behavior intervention plan shall indicate how the 
30.25 	parent wants to be notified when a restrictive procedure is used.
30.26 		Subd. 3.Physical holding or seclusion. (a) Physical holding or seclusion may be 
30.27 	used only in an emergency. A school that uses physical holding or seclusion shall meet the 
30.28 	following requirements:
30.29 	(1) physical holding or seclusion is the least intrusive intervention that effectively 
30.30 	responds to the emergency;
30.31 	(2) physical holding or seclusion is not used to discipline a noncompliant child;
30.32 	(3) physical holding or seclusion ends when the threat of harm ends and the staff 
30.33 	determines the child can safely return to the classroom or activity;
30.34 	(4) staff directly observes the child while physical holding or seclusion is being used;
31.1 	(5) each time physical holding or seclusion is used, the staff person who implements 
31.2 	or oversees the physical holding or seclusion documents, as soon as possible after the 
31.3 	incident concludes, the following information:
31.4 	(i) a description of the incident that led to the physical holding or seclusion;
31.5 	(ii) why a less restrictive measure failed or was determined by staff to be 
31.6 	inappropriate or impractical;
31.7 	(iii) the time the physical holding or seclusion began and the time the child was 
31.8 	released; and
31.9 	(iv) a brief record of the child's behavioral and physical status;
31.10 	(6) the room used for seclusion must:
31.11 	(i) be at least six feet by five feet;
31.12 	(ii) be well lit, well ventilated, adequately heated, and clean;
31.13 	(iii) have a window that allows staff to directly observe a child in seclusion;
31.14 	(iv) have tamperproof fixtures, electrical switches located immediately outside the 
31.15 	door, and secure ceilings;
31.16 	(v) have doors that open out and are unlocked, locked with keyless locks that 
31.17 	have immediate release mechanisms, or locked with locks that have immediate release 
31.18 	mechanisms connected with a fire and emergency system; and
31.19 	(vi) not contain objects that a child may use to injure the child or others;
31.20 	(7) before using a room for seclusion, a school must:
31.21 	(i) receive written notice from local authorities that the room and the locking 
31.22 	mechanisms comply with applicable building, fire, and safety codes; and
31.23 	(ii) register the room with the commissioner, who may view that room; and
31.24 	(8) until August 1, 2015, a school district may use prone restraints with children 
31.25 	age five or older if:
31.26 	(i) the district has provided to the department a list of staff who have had specific 
31.27 	training on the use of prone restraints;
31.28 	(ii) the district provides information on the type of training that was provided and 
31.29 	by whom;
31.30 	(iii) only staff who received specific training use prone restraints;
31.31 	(iv) each incident of the use of prone restraints is reported to the department within 
31.32 	five working days on a form provided by the department; and
31.33 	(v) the district, before using prone restraints, must review any known medical or 
31.34 	psychological limitations that contraindicate the use of prone restraints.
31.35 	The department must collect data on districts' use of prone restraints and publish the data 
31.36 	in a readily accessible format on the department's Web site on a quarterly basis.
32.1 	(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must 
32.2 	recommend to the commissioner specific and measurable implementation and outcome 
32.3 	goals for reducing the use of restrictive procedures and the commissioner must submit to 
32.4 	the legislature a report on districts' progress in reducing the use of restrictive procedures 
32.5 	that recommends how to further reduce these procedures and eliminate the use of prone 
32.6 	restraints. The statewide plan includes the following components: measurable goals; the 
32.7 	resources, training, technical assistance, mental health services, and collaborative efforts 
32.8 	needed to significantly reduce districts' use of prone restraints; and recommendations 
32.9 	to clarify and improve the law governing districts' use of restrictive procedures. The 
32.10 	commissioner must consult with interested stakeholders when preparing the report, 
32.11 	including representatives of advocacy organizations, special education directors, teachers, 
32.12 	paraprofessionals, intermediate school districts, school boards, day treatment providers, 
32.13 	county social services, state human services department staff, mental health professionals, 
32.14 	and autism experts. By June 30 each year, districts must report summary data on their 
32.15 	use of restrictive procedures to the department, in a form and manner determined by the 
32.16 	commissioner. The summary data must include information about the use of restrictive 
32.17 	procedures, including use of reasonable force under section 121A.582.
32.18 		Subd. 4.Prohibitions. The following actions or procedures are prohibited:
32.19 	(1) engaging in conduct prohibited under section 121A.58;
32.20 	(2) requiring a child to assume and maintain a specified physical position, activity, 
32.21 	or posture that induces physical pain;
32.22 	(3) totally or partially restricting a child's senses as punishment;
32.23 	(4) presenting an intense sound, light, or other sensory stimuli using smell, taste, 
32.24 	substance, or spray as punishment;
32.25 	(5) denying or restricting a child's access to equipment and devices such as walkers, 
32.26 	wheelchairs, hearing aids, and communication boards that facilitate the child's functioning, 
32.27 	except when temporarily removing the equipment or device is needed to prevent injury 
32.28 	to the child or others or serious damage to the equipment or device, in which case the 
32.29 	equipment or device shall be returned to the child as soon as possible;
32.30 	(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or 
32.31 	physical abuse under section 626.556;
32.32 	(7) withholding regularly scheduled meals or water;
32.33 	(8) denying access to bathroom facilities; and
32.34 	(9) physical holding that restricts or impairs a child's ability to breathe, restricts or 
32.35 	impairs a child's ability to communicate distress, places pressure or weight on a child's 
33.1 	head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in 
33.2 	straddling a child's torso.
33.3 		Subd. 5.Training for staff. (a) To meet the requirements of subdivision 1, staff 
33.4 	who use restrictive procedures, including paraprofessionals, shall complete training in 
33.5 	the following skills and knowledge areas:
33.6 	(1) positive behavioral interventions;
33.7 	(2) communicative intent of behaviors;
33.8 	(3) relationship building;
33.9 	(4) alternatives to restrictive procedures, including techniques to identify events and 
33.10 	environmental factors that may escalate behavior;
33.11 	(5) de-escalation methods;
33.12 	(6) standards for using restrictive procedures only in an emergency;
33.13 	(7) obtaining emergency medical assistance;
33.14 	(8) the physiological and psychological impact of physical holding and seclusion;
33.15 	(9) monitoring and responding to a child's physical signs of distress when physical 
33.16 	holding is being used;
33.17 	(10) recognizing the symptoms of and interventions that may cause positional 
33.18 	asphyxia when physical holding is used;
33.19 	(11) district policies and procedures for timely reporting and documenting each 
33.20 	incident involving use of a restricted procedure; and
33.21 	(12) schoolwide programs on positive behavior strategies.
33.22 	(b) The commissioner, after consulting with the commissioner of human services, 
33.23 	must develop and maintain a list of training programs that satisfy the requirements of 
33.24 	paragraph (a). The commissioner also must develop and maintain a list of experts to 
33.25 	help individualized education program teams reduce the use of restrictive procedures. 
33.26 	The district shall maintain records of staff who have been trained and the organization 
33.27 	or professional that conducted the training. The district may collaborate with children's 
33.28 	community mental health providers to coordinate trainings.
33.29 		Subd. 6.Behavior supports; reasonable force. (a) School districts are encouraged 
33.30 	to establish effective schoolwide systems of positive behavior interventions and supports.
33.31 	(b) Nothing in this section or section 125A.0941 precludes the use of reasonable 
33.32 	force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015 
33.33 	school year and later, districts must collect and submit to the commissioner summary 
33.34 	data, consistent with subdivision 3, paragraph (b), on district use of reasonable force 
33.35 	that is consistent with the definition of physical holding or seclusion for a child with a 
33.36 	disability under this section.

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

34.2 	Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is 
34.3 	amended to read:
34.4 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2015 and 
34.5 	later, when a school district provides special instruction and services for a pupil with 
34.6 	a disability as defined in section 125A.02 outside the district of residence, excluding 
34.7 	a pupil for whom an adjustment to special education aid is calculated according to 
34.8 	section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the 
34.9 	resident district must be reduced by an amount equal to (1) the actual cost of providing 
34.10 	special instruction and services to the pupil, including a proportionate amount for special 
34.11 	transportation and unreimbursed building lease and debt service costs for facilities used 
34.12 	primarily for special education, plus (2) the amount of general education revenue and 
34.13 	referendum equalization aid attributable to that pupil, calculated using the resident district's 
34.14 	average general education revenue and referendum equalization aid per adjusted pupil 
34.15 	unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity 
34.16 	revenue, minus (3) the amount of special education aid for children with a disability 
34.17 	under section 125A.76 received on behalf of that child, minus (4) if the pupil receives 
34.18 	special instruction and services outside the regular classroom for more than 60 percent 
34.19 	of the school day, the amount of general education revenue and referendum equalization 
34.20 	aid, excluding portions attributable to district and school administration, district support 
34.21 	services, operations and maintenance, capital expenditures, and pupil transportation, 
34.22 	attributable to that pupil for the portion of time the pupil receives special instruction 
34.23 	and services outside of the regular classroom, calculated using the resident district's 
34.24 	average general education revenue and referendum equalization aid per adjusted pupil unit 
34.25 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
34.26 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
34.27 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
34.28 	served by a cooperative unit without a fiscal agent school district, the general education 
34.29 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
34.30 	the resident district's average general education revenue and referendum equalization aid 
34.31 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
34.32 	revenue. Special education aid paid to the district or cooperative providing special 
34.33 	instruction and services for the pupil must be increased by the amount of the reduction in 
34.34 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
34.35 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
35.1 	expenditures on the resident school district's books of account under sections 123B.75 
35.2 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
35.3 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
35.4 	(b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs 
35.5 	(b) to (d), a charter school where more than 30 percent of enrolled students receive special 
35.6 	education and related services, a site approved under section 125A.515, an intermediate 
35.7 	district, a special education cooperative, or a school district that served as the applicant 
35.8 	agency for a group of school districts for federal special education aids for fiscal year 
35.9 	2006 may apply to the commissioner for authority to charge the resident district an 
35.10 	additional amount to recover any remaining unreimbursed costs of serving pupils with 
35.11 	a disability. The application must include a description of the costs and the calculations 
35.12 	used to determine the unreimbursed portion to be charged to the resident district. Amounts 
35.13 	approved by the commissioner under this paragraph must be included in the tuition billings 
35.14 	or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs 
35.15 	(b) to (d), as applicable.
35.16 	(c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
35.17 	(d) and (e) paragraph (b), "general education revenue and referendum equalization aid" 
35.18 	means the sum of the general education revenue according to section 126C.10, subdivision 
35.19 	1, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph 
35.20 	(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.

35.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
35.22 	and later.

35.23 	Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is 
35.24 	amended to read:
35.25 		Subdivision 1.Definitions. (a) For the purposes of this section and section 125A.79, 
35.26 	the definitions in this subdivision apply.
35.27 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
35.28 	For the purposes of computing basic revenue pursuant to this section, each child with a 
35.29 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
35.30 	(c) "Essential personnel" means teachers, cultural liaisons, related services, and 
35.31 	support services staff providing services to students. Essential personnel may also include 
35.32 	special education paraprofessionals or clericals providing support to teachers and students 
35.33 	by preparing paperwork and making arrangements related to special education compliance 
35.34 	requirements, including parent meetings and individualized education programs. Essential 
35.35 	personnel does not include administrators and supervisors.
36.1 	(d) "Average daily membership" has the meaning given it in section 126C.05.
36.2 	(e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015, 
36.3 	1.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the 
36.4 	program growth factor for the previous year for fiscal year 2018 and later.
36.5 	(f) "Nonfederal special education expenditure" means all direct expenditures that 
36.6 	are necessary and essential to meet the district's obligation to provide special instruction 
36.7 	and services to children with a disability according to sections 124D.454, 125A.03 to 
36.8 	125A.24, 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by 
36.9 	the department under section 125A.75, subdivision 4, excluding expenditures:
36.10 	(1) reimbursed with federal funds;
36.11 	(2) reimbursed with other state aids under this chapter;
36.12 	(3) for general education costs of serving students with a disability;
36.13 	(4) for facilities;
36.14 	(5) for pupil transportation; and
36.15 	(6) for postemployment benefits.
36.16 	(g) "Old formula special education expenditures" means expenditures eligible for 
36.17 	revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
36.18 	(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy 
36.19 	for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and 
36.20 	fringe benefits of one-to-one instructional and behavior management aides and one-to-one 
36.21 	licensed, certified professionals assigned to a child attending the academy, if the aides or 
36.22 	professionals are required by the child's individualized education program.
36.23 	(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 
36.24 	2014 and 2.27 percent for fiscal year 2015.
36.25 	(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 
36.26 	for fiscal year 2015.
36.27 	(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100 
36.28 	for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education 
36.29 	aid increase limit for the previous fiscal year and $40.

36.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
36.31 	and later.

36.32 	Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
36.33 		Subd. 2.Special education initial aid. The special education initial aid equals the 
36.34 	sum of the following amounts computed using current year data:
37.1 	(1) 68 percent of the salary of each essential person employed in the district's program 
37.2 	for children with a disability during the fiscal year, whether the person is employed by one 
37.3 	or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
37.4 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
37.5 	for the Blind, 68 percent of the salary of each one to one one-to-one instructional and 
37.6 	behavior management aide and one-to-one licensed, certified professional assigned to 
37.7 	a child attending the academy, if the aides or professionals are required by the child's 
37.8 	individualized education program;
37.9 	(3) for special instruction and services provided to any pupil by contracting with 
37.10 	public, private, or voluntary agencies other than school districts, in place of special 
37.11 	instruction and services provided by the district, 52 percent of the difference between 
37.12 	the amount of the contract and the general education revenue, excluding basic skills 
37.13 	revenue and alternative teacher compensation revenue, and referendum equalization aid 
37.14 	attributable to a pupil, calculated using the resident district's average general education 
37.15 	revenue and referendum equalization aid per adjusted pupil unit for the fraction of the 
37.16 	school day the pupil receives services under the contract. This includes children who 
37.17 	are residents of the state, receive services under this subdivision and subdivision 1, and 
37.18 	are placed in a care and treatment facility by court action in a state that does not have a 
37.19 	reciprocity agreement with the commissioner under section 125A.155 as provided for in 
37.20 	section 125A.79, subdivision 8;
37.21 	(4) for special instruction and services provided to any pupil by contracting for 
37.22 	services with public, private, or voluntary agencies other than school districts, that are 
37.23 	supplementary to a full educational program provided by the school district, 52 percent of 
37.24 	the amount of the contract for that pupil;
37.25 	(5) for supplies and equipment purchased or rented for use in the instruction of 
37.26 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
37.27 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
37.28 	not to exceed an average of $47 in any one school year for each child with a disability 
37.29 	receiving instruction;
37.30 	(6) for fiscal years 1997 and later, special education base revenue shall include 
37.31 	amounts under clauses (1) to (5) for special education summer programs provided during 
37.32 	the base year for that fiscal year;
37.33 	(7) the cost of providing transportation services for children with disabilities under 
37.34 	section 123B.92, subdivision 1, paragraph (b), clause (4); and
37.35 	(8) the district's transition-disabled program initial aid according to section 
37.36 	124D.454, subdivision 3.
38.1 	The department shall establish procedures through the uniform financial accounting 
38.2 	and reporting system to identify and track all revenues generated from third-party billings 
38.3 	as special education revenue at the school district level; include revenue generated from 
38.4 	third-party billings as special education revenue in the annual cross-subsidy report; and 
38.5 	exclude third-party revenue from calculation of excess cost aid to the districts.

38.6 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
38.7 	and later.

38.8 	Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is 
38.9 	amended to read:
38.10 		Subd. 2a.Special education initial aid. For fiscal year 2016 and later, a district's 
38.11 	special education initial aid equals the sum of:
38.12 	(1) the lesser least of 62 percent of the district's old formula special education 
38.13 	expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50 
38.14 	percent of the district's nonfederal special education expenditures for the prior year, 
38.15 	excluding pupil transportation expenditures, or 56 percent of the product of the sum of the 
38.16 	following amounts, computed using prior fiscal year data, and the program growth factor:
38.17 	(i) the product of the district's average daily membership served and the sum of:
38.18 	(A) $450; plus
38.19 	(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
38.20 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
38.21 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
38.22 	(C) .008 times the district's average daily membership served; plus
38.23 	(ii) $10,400 times the December 1 child count for the primary disability areas of 
38.24 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
38.25 	(iii) $18,000 times the December 1 child count for the primary disability areas of 
38.26 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
38.27 	(iv) $27,000 times the December 1 child count for the primary disability areas of 
38.28 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
38.29 	physically impaired, visually impaired, and deafblind; plus
38.30 	(2) the cost of providing transportation services for children with disabilities under 
38.31 	section 123B.92, subdivision 1, paragraph (b), clause (4).

38.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
38.33 	and later.

39.1 	Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is 
39.2 	amended to read:
39.3 		Subd. 2b.Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross 
39.4 	subsidy reduction aid for a school district, not including a charter school, equals the 
39.5 	lesser of (a) the product of the cross subsidy reduction aid limit and the district's average 
39.6 	daily membership served or (b) the sum of the product of the cross subsidy reduction aid 
39.7 	percentage, the district's average daily membership served, and the sum of:
39.8 	(1) $450; plus
39.9 	(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1 
39.10 	who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 
39.11 	who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
39.12 	(3) .008 times the district's average daily membership served; plus the product of the 
39.13 	cross subsidy aid percentage and the sum of:
39.14 	(i) $10,100 times the December 1 child count for the primary disability areas of 
39.15 	autism spectrum disorders, developmental delay, and severely multiply impaired; plus
39.16 	(ii) $17,500 times the December 1 child count for the primary disability areas of 
39.17 	deaf and hard-of-hearing and emotional or behavioral disorders; plus
39.18 	(iii) $26,000 times the December 1 child count for the primary disability areas of 
39.19 	developmentally cognitive mild-moderate, developmentally cognitive severe-profound, 
39.20 	physically impaired, visually impaired, and deafblind.

39.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
39.22 	and applies to revenue for fiscal year 2014 and later.

39.23 	Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is 
39.24 	amended to read:
39.25 		Subd. 2c.Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a 
39.26 	district's special education aid equals the sum of the district's special education initial aid 
39.27 	under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and 
39.28 	the district's excess cost aid under section 125A.79, subdivision 7.
39.29 	(b) For fiscal year 2016 and later, a district's special education aid equals the sum of 
39.30 	the district's special education initial aid under subdivision 2a and the district's excess cost 
39.31 	aid under section 125A.79, subdivision 5.
39.32 	(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for 
39.33 	a school district must not exceed the sum of the special education aid the district would 
39.34 	have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76 
39.35 	and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and 
40.1 	127A.47, subdivision 7, and the product of the district's average daily membership served 
40.2 	and the special education aid increase limit.
40.3 	(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education 
40.4 	aid for a school district must not exceed the sum of: (i) the product of the district's average 
40.5 	daily membership served and the special education aid increase limit and (ii) the product 
40.6 	of the sum of the special education aid the district would have received for fiscal year 2016 
40.7 	under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according 
40.8 	to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of 
40.9 	the district's average daily membership served for the current fiscal year to the district's 
40.10 	average daily membership served for fiscal year 2016, and the program growth factor.
40.11 	(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education 
40.12 	aid for a school district, not including a charter school, must not be less than the lesser of 
40.13 	(1) the district's nonfederal special education expenditures for that fiscal year or (2) the 
40.14 	product of the sum of the special education aid the district would have received for fiscal 
40.15 	year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted 
40.16 	according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the 
40.17 	ratio of the district's adjusted daily membership for the current fiscal year to the district's 
40.18 	average daily membership for fiscal year 2016, and the program growth factor.

40.19 	EFFECTIVE DATE. This section is effective the day following final enactment 
40.20 	and applies to revenue for fiscal year 2014 and later.

40.21 	Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is 
40.22 	amended to read:
40.23 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
40.24 	subdivision apply.
40.25 	(a) "Unreimbursed old formula special education expenditures" means:
40.26 	(1) old formula special education expenditures for the prior fiscal year; minus
40.27 	(2) for fiscal years 2014 and 2015, the sum of the special education aid under section 
40.28 	125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under 
40.29 	section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education 
40.30 	initial aid under section 125A.76, subdivision 2a; minus
40.31 	(3) the amount of general education revenue, excluding local optional revenue, plus 
40.32 	local optional aid and referendum equalization aid for the prior fiscal year attributable 
40.33 	to pupils receiving special instruction and services outside the regular classroom for 
40.34 	more than 60 percent of the school day for the portion of time the pupils receive special 
40.35 	instruction and services outside the regular classroom, excluding portions attributable to 
41.1 	district and school administration, district support services, operations and maintenance, 
41.2 	capital expenditures, and pupil transportation.
41.3 	(b) "Unreimbursed nonfederal special education expenditures" means:
41.4 	(1) nonfederal special education expenditures for the prior fiscal year; minus
41.5 	(2) special education initial aid under section 125A.76, subdivision 2a; minus
41.6 	(3) for fiscal year 2016 and later, the amount of general education revenue and 
41.7 	referendum equalization aid for the prior fiscal year attributable to pupils receiving 
41.8 	special instruction and services outside the regular classroom for more than 60 percent of 
41.9 	the school day for the portion of time the pupils receive special instruction and services 
41.10 	outside of the regular classroom, excluding portions attributable to district and school 
41.11 	administration, district support services, operations and maintenance, capital expenditures, 
41.12 	and pupil transportation.
41.13 	(c) "General revenue" for a school district means the sum of the general education 
41.14 	revenue according to section 126C.10, subdivision 1, excluding alternative teacher 
41.15 	compensation revenue, minus transportation sparsity revenue minus, local optional 
41.16 	revenue, and total operating capital revenue. "General revenue" for a charter school means 
41.17 	the sum of the general education revenue according to section 124D.11, subdivision 1, and 
41.18 	transportation revenue according to section 124D.11, subdivision 2, excluding alternative 
41.19 	teacher compensation revenue, minus referendum equalization aid minus, transportation 
41.20 	sparsity revenue minus, and operating capital revenue.

41.21 	EFFECTIVE DATE. This section is effective the day following final enactment 
41.22 	and applies to revenue for fiscal year 2014 and later.

41.23 	Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is 
41.24 	amended to read:
41.25 		Subd. 5.Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
41.26 	 excess cost aid equals the greater of:
41.27 	(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal 
41.28 	special education expenditures and (ii) 7.0 percent of the district's general revenue;
41.29 	(2) 62 percent of the difference between (i) the district's unreimbursed old formula 
41.30 	special education expenditures and (ii) 2.5 percent of the district's general revenue; or
41.31 	(3) zero.

41.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
41.33 	and later.

42.1 	Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is 
42.2 	amended to read:
42.3 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
42.4 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
42.5 	treatment facility by court action in a state that does not have a reciprocity agreement with 
42.6 	the commissioner under section 125A.155, the resident school district shall submit the 
42.7 	balance receive special education out-of-state tuition aid equal to the amount of the tuition 
42.8 	bills, minus (1) the general education revenue, excluding basic skills revenue and the local 
42.9 	optional levy attributable to the pupil, calculated using the resident district's average 
42.10 	general education revenue per adjusted pupil unit, and (2) the referendum equalization aid 
42.11 	attributable to the pupil, calculated using the resident district's average general education 
42.12 	revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special 
42.13 	education contracted services initial revenueaid attributable to the pupil.

42.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
42.15 	and later.

42.16 	Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
42.17 		Subd. 8.Special education paperwork cost savings. (a) For the contract to 
42.18 	customize a statewide online reporting system and effect special education paperwork 
42.19 	cost savings:

42.20		$
	1,763,000
	.....
	2014
	
42.21 	For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and 
42.22 	must be expended according to this subdivision for online due process reporting.
42.23 	(b) To ensure a strong focus on outcomes for children with disabilities informs 
42.24 	federal and state compliance and accountability requirements and to increase opportunities 
42.25 	for special educators and related-services providers to focus on teaching children with 
42.26 	disabilities, the commissioner must customize a streamlined, user-friendly statewide 
42.27 	online system, with a single model online form, for effectively and efficiently collecting 
42.28 	and reporting required special education-related data to individuals with a legitimate 
42.29 	educational interest and who are authorized by law to access the data.
42.30 	(c) The commissioner must consult with qualified experts, including information 
42.31 	technology specialists, licensed special education teachers and directors of special 
42.32 	education, related-services providers, third-party vendors, a designee of the commissioner 
42.33 	of human services, parents of children with disabilities, representatives of advocacy groups 
42.34 	representing children with disabilities, and representatives of school districts and special 
43.1 	education cooperatives on integrating, field testing, customizing, and sustaining this simple, 
43.2 	easily accessible, efficient, and effective online data system for uniform statewide reporting 
43.3 	of required due process compliance data. Among other outcomes, the system must:
43.4 	(1) reduce special education teachers' paperwork burden and thereby increase the 
43.5 	teachers' opportunities to focus on teaching children;
43.6 	(2) to the extent authorized by chapter 13 or other applicable state or federal law 
43.7 	governing access to and dissemination of educational records, provide for efficiently 
43.8 	and effectively transmitting the records of all transferring children with disabilities, 
43.9 	including highly mobile and homeless children with disabilities, among others, and avoid 
43.10 	fragmented service delivery;
43.11 	(3) address language and other barriers and disparities that prevent parents from 
43.12 	understanding and communicating information about the needs of their children with 
43.13 	disabilities; and
43.14 	(4) help continuously improve the interface among the online systems serving 
43.15 	children with disabilities in order to maintain and reinforce the children's ability to learn.
43.16 	(d) The commissioner must use the federal Office of Special Education Programs 
43.17 	model forms for the (1) individualized education program, (2) notice of procedural 
43.18 	safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate 
43.19 	and customize a state-sponsored universal special education online case management 
43.20 	system, consistent with the requirements of state law and this subdivision for customizing 
43.21 	a statewide online reporting system. The commissioner must use a request for proposal 
43.22 	process to contract for the technology and software needed for customizing the online 
43.23 	system in order for the system to be fully functional, consistent with the requirements of 
43.24 	this subdivision. This online system must be made available to school districts without 
43.25 	charge beginning in the 2015-2016 school year. All actions in which data in the system 
43.26 	are entered, updated, accessed, or shared or disseminated outside of the system, must be 
43.27 	recorded in a data audit trail. The audit trail must identify the user responsible for the 
43.28 	action, and the date and time the action occurred. Data contained in the audit trail maintain 
43.29 	the same classification as the underlying data that was affected by the action, and may be 
43.30 	accessed by the responsible authority at any time for purposes of auditing the system's 
43.31 	user activity and security safeguards. For the 2015-2016 through 2017-2018 school years, 
43.32 	school districts may use this online system or may contract with an outside vendor for 
43.33 	compliance reporting. Beginning in the 2018-2019 school year and later, school districts 
43.34 	must use this online system for compliance reporting.
43.35 	(e) Consistent with this subdivision, the commissioner must establish a public 
43.36 	Internet Web interface to provide information to educators, parents, and the public about 
44.1 	the form and content of required special education reports, to respond to queries from 
44.2 	educators, parents, and the public about specific aspects of special education reports and 
44.3 	reporting, and to use the information garnered from the interface to streamline and revise 
44.4 	special education reporting on the online system under this subdivision. The public Internet 
44.5 	Web interface must not provide access to the educational records of any individual child.
44.6 	(f) The commissioner annually by February 1 must submit to the legislature a report 
44.7 	on the status, recent changes, and sustainability of the online system under this subdivision.

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

44.9 	Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE 
44.10 	RECOMMENDATIONS.
 44.11 	The commissioner of education must use the expedited rulemaking process under 
44.12 	Minnesota Statutes, section 14.389, including subdivision 5, to make the rule changes 
44.13 	recommended by the Special Education Case Load and Rule Alignment Task Force in 
44.14 	its 2014 report entitled "Recommendations for Special Education Case Load and Rule 
44.15 	Alignment" submitted to the legislature on February 15, 2014.

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

44.17 	Sec. 13. APPROPRIATION.
 44.18 		Subdivision 1.Department of Education. The sums indicated in this section are 
44.19 	appropriated from the general fund to the Department of Education for the fiscal years 
44.20 	designated.
44.21 		Subd. 2.Department assistance. For the commissioner of education to assist 
44.22 	school districts in meeting the needs of children who have experienced a high use of prone 
44.23 	restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

44.24		$
	250,000
	.....
	2015
	
44.25 	The commissioners of education and human services, or their designees, must 
44.26 	discuss coordinating use of funds and personnel available for this purpose within their 
44.27 	respective departments. This is a onetime appropriation.

44.28 	ARTICLE 4
44.29 	FACILITIES

44.30 	Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
45.1 		Subdivision 1.Schools may be jointly operated. Two or more school districts may 
45.2 	agree to jointly operate a secondary facility. The districts may choose to operate the 
45.3 	facility according to a joint powers agreement under section 123A.78 or 471.59.
45.4 		Subd. 2.Expanded program offerings. A jointly operated secondary program 
45.5 	seeking funding under section 123A.485 must demonstrate to the commissioner's 
45.6 	satisfaction that the jointly operated program provides enhanced learning opportunities and 
45.7 	broader curriculum offerings to the students attending that program. The commissioner 
45.8 	must approve or disapprove a cooperative secondary program within 60 days of receipt of 
45.9 	an application.
45.10 		Subd. 3.Transfer of employees. If an employee is transferred between two 
45.11 	employer members of the joint powers agreement under this section, the employee's 
45.12 	length of service under section 122A.40, subdivision 5, remains uninterrupted. The 
45.13 	employee shall receive credit on the receiving district's salary schedule for the employee's 
45.14 	educational attainment and years of continuous service in the sending district, or shall 
45.15 	receive a comparable salary, whichever is greater. The employee shall receive credit for 
45.16 	accrued sick leave and rights to severance benefits as if the employee had been employed 
45.17 	by the receiving district during the employee's years of employment in the sending district.
45.18 		Subd. 4.Revenue. An approved program that is jointly operated under this section 
45.19 	is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections 
45.20 	123A.44 to 123A.446.
45.21 		Subd. 5.Duty to maintain elementary and secondary schools met. A school 
45.22 	district operating a joint facility under this section meets the requirements of section 
45.23 	123A.64.
45.24 		Subd. 6.Estimated market value limit exclusion. Bonds for a cooperative facility 
45.25 	operated under this section issued by a member school district are not subject to the net 
45.26 	debt limit under section 475.53, subdivision 4. 
45.27 		Subd. 7.Allocation of levy authority for joint facility. For purposes of determining 
45.28 	each member district's school levy, a jointly operated secondary program may allocate 
45.29 	program costs to each member district according to the joint powers agreement and each 
45.30 	member district may include those costs in its tax levy. The joint powers agreement may 
45.31 	choose to allocate costs on any basis adopted as part of the joint powers agreement.
45.32 		Subd. 8.Effect of consolidation. The joint powers agreement may allow member 
45.33 	school districts that choose to consolidate to continue to certify levies separately based on 
45.34 	each component district's characteristics.
45.35 		Subd. 9.Bonds. A joint powers district formed under this section may issue bonds 
45.36 	according to section 123A.78 or its member districts may issue bonds individually after 
46.1 	complying with this subdivision. The joint powers board must submit the project for 
46.2 	review and comment under section 123B.71. The joint powers board must hold a hearing 
46.3 	on the proposal. If the bonds are not issued under section 123A.78, each member district 
46.4 	of the joint powers district must submit the question of authorizing borrowing of funds for 
46.5 	the project to the voters of the district at a special election. The question submitted shall 
46.6 	state the total amount of funding needed from that district. The member district may issue 
46.7 	the bonds according to chapter 475 and certify the levy required by section 475.61 only if 
46.8 	a majority of those voting on the question in that district vote in the affirmative and only 
46.9 	after the board has adopted a resolution pledging the full faith and credit of that unit. The 
46.10 	resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy 
46.11 	shortages that, together with other funds available, would allow the member school board 
46.12 	to pay the principal and interest on the obligations. The clerk of the joint powers board 
46.13 	must certify the vote of any bond elections to the commissioner. Bonds issued under this 
46.14 	section first qualify for debt service equalization aid in fiscal year 2018.
46.15 		Subd. 10.Election. A district entering into a joint powers agreement under this 
46.16 	section may conduct a referendum seeking approval for a new facility. This election may 
46.17 	be held separately or at the same time as a bond election under subdivision 9. If the 
46.18 	election is held at the same time, the questions may be asked separately or as a conjunctive 
46.19 	question. The question must be approved by a majority of those voting on the question. 
46.20 	If asked separately and the question fails, a district may not proceed with the sale of 
46.21 	bonds according to subdivision 9.

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

46.23 	Sec. 2. Minnesota Statutes 2012, section 123A.485, is amended to read:
46.24 	123A.485 CONSOLIDATION TRANSITION REVENUE AID.
46.25 		Subdivision 1.Eligibility and use. A district that operates a cooperative facility 
46.26 	under section 123A.482 or that has been reorganized after June 30, 1994, under section 
46.27 	123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
46.28 	 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
46.29 	 aid may only be used according to this section. Revenue must be used for the following 
46.30 	purposes and may be distributed among these purposes at the discretion of the district or 
46.31 	the governing board of the cooperative facility:
46.32 	(1) to offer early retirement incentives as provided by section 123A.48, subdivision 
46.33 	23;
46.34 	(2) to reduce operating debt as defined in section 123B.82;
47.1 	(3) to enhance learning opportunities for students in the reorganized district; and
47.2 	(4) to repay building debt; or
47.3 	(5) for other costs incurred in the reorganization.
47.4 	Revenue received and utilized under clause (3) or (4) (5) may be expended for 
47.5 	operating, facilities, and/or equipment.
47.6 		Subd. 2.Aid. (a) Consolidation transition aid is equal to $200 $300 times the 
47.7 	number of resident adjusted pupil units in the newly created cooperative facility under 
47.8 	section 123A.482 or the consolidated district in the year of consolidation and $100 times 
47.9 	the number of resident pupil units in the first year following the year of consolidation
47.10 	 under section 123A.48. The number of pupil units used to calculate aidin either year 
47.11 	shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts 
47.12 	consolidating July 1, 1995, and thereafter A district may receive aid under this section for 
47.13 	not more than five years except as provided in subdivision 4.
47.14 	(b) If the total appropriation for consolidation transition aid for any fiscal year, plus 
47.15 	any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all 
47.16 	districts the full amount of aid earned, the department must first pay the districts in the first 
47.17 	year following the year of consolidation the full amount of aid earned and distribute any 
47.18 	remaining funds to the newly created districts in the first year of consolidation.
47.19 		Subd. 3.Levy. If the aid available in subdivision 2 is insufficient to cover the costs 
47.20 	of the district under section 123A.48, subdivision 23, the district may levy the difference 
47.21 	over a period of time not to exceed three years.
47.22 		Subd. 4.New districts. If a district enters into a cooperative secondary facilities 
47.23 	program or consolidates with another district that has received aid under section 123A.39, 
47.24 	subdivision 3, or 123A.485 for a combination or consolidation taking effect within 
47.25 	six years of the effective date of the new consolidation or the start of the cooperative 
47.26 	secondary facilities program, only the pupil units in the district or districts not previously
47.27 	 cooperating or reorganized must be counted for aid purposes under subdivision 2. If 
47.28 	two or more districts consolidate and all districts received aid under subdivision 2 for a 
47.29 	consolidation taking effect within six years of the effective date of the new consolidation, 
47.30 	only one quarter of the pupil units in the newly created district must be used to determine 
47.31 	aid under subdivision 2.

47.32 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2017 
47.33 	and later.

48.1 	Sec. 3. Minnesota Statutes 2012, section 123A.64, is amended to read:
48.2 	123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY 
48.3 	SCHOOLS.
48.4 	Each district must maintain classified elementary and secondary schools, grades 1 
48.5 	through 12, unless the district is exempt according to section 123A.61 or 123A.62, has 
48.6 	made an agreement with another district or districts as provided in sections 123A.30, 
48.7 	123A.32, or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a 
48.8 	grant under sections 123A.441 to 123A.446, or has formed a cooperative under section 
48.9 	123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or 
48.10 	123A.32 must operate a school with the number of grades required by those sections. A 
48.11 	district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or 
48.12 	has received a grant under sections 123A.441 to 123A.446 must operate a school for the 
48.13 	grades not included in the agreement, but not fewer than three grades.

48.14 	Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is 
48.15 	amended to read:
48.16 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
48.17 	revenue of a district is defined as follows:
48.18 	(1) the amount needed to produce between five and six percent in excess of the 
48.19 	amount needed to meet when due the principal and interest payments on the obligations 
48.20 	of the district for eligible projects according to subdivision 2, including the amounts 
48.21 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
48.22 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
48.23 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
48.24 	5, paragraph (a), minus
48.25 	(2) the amount of debt service excess levy reduction for that school year calculated 
48.26 	according to the procedure established by the commissioner.
48.27 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
48.28 	(1) obligations under section 123B.61;
48.29 	(2) the part of debt service principal and interest paid from the taconite environmental 
48.30 	protection fund or Douglas J. Johnson economic protection trust, excluding the portion of 
48.31 	taconite payments from the Iron Range school consolidation and cooperatively operated 
48.32 	school account under section 298.28, subdivision 7a;
48.33 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
48.34 	amended by Laws 1992, chapter 499, article 5, section 24; and
48.35 	(4) obligations under section 123B.62; and
49.1 	(5) obligations equalized under section 123B.535.
49.2 	(c) For purposes of this section, if a preexisting school district reorganized under 
49.3 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
49.4 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
49.5 	service equalization aid must be computed separately for each of the preexisting districts.
49.6 	(d) For purposes of this section, the adjusted net tax capacity determined according 
49.7 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
49.8 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.

49.9 	EFFECTIVE DATE. This section is effective for fiscal year 2017 and later.

49.10 	Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is 
49.11 	amended to read:
49.12 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
49.13 	district equals the sum of the first tier equalized debt service levy and the second tier 
49.14 	equalized debt service levy.
49.15 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
49.16 	service equalization revenue times the lesser of one or the ratio of:
49.17 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
49.18 	the year before the year the levy is certified by the adjusted pupil units in the district for 
49.19 	the school year ending in the year prior to the year the levy is certified; to
49.20 	(2) $3,550 $4,970.
49.21 	(c) A district's second tier equalized debt service levy equals the district's second tier 
49.22 	debt service equalization revenue times the lesser of one or the ratio of:
49.23 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
49.24 	the year before the year the levy is certified by the adjusted pupil units in the district for 
49.25 	the school year ending in the year prior to the year the levy is certified; to
49.26 	(2) $7,900 $8,000.

49.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2016 
49.28 	and later.

49.29 	Sec. 6. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
49.30 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible natural 
49.31 	disaster debt service revenue of a district is defined as the amount needed to produce 
49.32 	between five and six percent in excess of the amount needed to meet when due the 
50.1 	principal and interest payments on the obligations of the district that would otherwise 
50.2 	qualify under section 123B.53 under the following conditions:
50.3 	(1) the district was impacted by a natural disaster event or area occurring January 
50.4 	1, 2005, or later, as declared by the President of the United States of America, which is 
50.5 	eligible for Federal Emergency Management Agency payments;
50.6 	(2) the natural disaster caused $500,000 or more in damages to school district 
50.7 	buildings; and
50.8 	(3) the repair and replacement costs are not covered by insurance payments or 
50.9 	Federal Emergency Management Agency payments.
50.10 	(b) For purposes of this section, the adjusted net tax capacity equalizing factor 
50.11 	equals the quotient derived by dividing the total adjusted net tax capacity of all school 
50.12 	districts in the state for the year before the year the levy is certified by the total number of 
50.13 	adjusted pupil units in the state for the year prior to the year the levy is certified.
50.14 	(c) For purposes of this section, the adjusted net tax capacity determined according 
50.15 	to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property 
50.16 	generally exempted from ad valorem taxes under section 272.02, subdivision 64.
50.17 		Subd. 2.Notification. A district eligible for natural disaster debt service 
50.18 	equalization revenue under subdivision 1 must notify the commissioner of the amount of 
50.19 	its intended natural disaster debt service revenue calculated under subdivision 1 for all 
50.20 	bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
50.21 		Subd. 3.Natural disaster debt service equalization revenue. The debt service 
50.22 	equalization revenue of a district equals the greater of zero or the eligible debt service 
50.23 	revenue, minus the greater of zero or the difference between:
50.24 	(1) the amount raised by a levy of ten percent times the adjusted net tax capacity 
50.25 	of the district; and
50.26 	(2) the district's eligible debt service revenue under section 123B.53.
50.27 		Subd. 4.Equalized natural disaster debt service levy. A district's equalized 
50.28 	natural disaster debt service levy equals the district's natural disaster debt service 
50.29 	equalization revenue times the lesser of one or the ratio of:
50.30 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
50.31 	the year before the year the levy is certified by the adjusted pupil units in the district for 
50.32 	the school year ending in the year prior to the year the levy is certified; to
50.33 	(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
50.34 		Subd. 5.Natural disaster debt service equalization aid. A district's natural 
50.35 	disaster debt service equalization aid equals the difference between the district's natural 
51.1 	disaster debt service equalization revenue and the district's equalized natural disaster 
51.2 	debt service levy.
51.3 		Subd. 6.Natural disaster debt service equalization aid payment schedule. Debt 
51.4 	service equalization aid must be paid according to section 127A.45, subdivision 10.

51.5 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and 
51.6 	revenue for fiscal year 2017 and later.

51.7 	Sec. 7. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
51.8 	123B.54 DEBT SERVICE APPROPRIATION.
51.9 	(a) The amount necessary to make debt service equalization aid payments under 
51.10 	section sections123B.53and 123B.535 is annually appropriated from the general fund to 
51.11 	the commissioner of education.
51.12 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
51.13 	money specifically appropriated for the same purpose in any year from any state fund.

51.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
51.15 	and later.

51.16 	Sec. 8. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
51.17 		Subd. 8.Review and comment. A school district, a special education cooperative, 
51.18 	or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not 
51.19 	initiate an installment contract for purchase or a lease agreement, hold a referendum for 
51.20 	bonds, nor solicit bids for new construction, expansion, or remodeling of an educational 
51.21 	facility that requires an expenditure in excess of $500,000 per school site if it has a capital 
51.22 	loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital 
51.23 	loan outstanding, prior to review and comment by the commissioner. The commissioner 
51.24 	may exempt A facility addition, maintenance project, or remodeling project funded only 
51.25 	with general education aid and levy revenue, deferred maintenance revenue, alternative 
51.26 	facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond 
51.27 	proceeds, or health and safety revenue is exempt from this provision after reviewing a 
51.28 	written request from a school district describing the scope of work. A capital project under 
51.29 	section 123B.63 addressing only technology is exempt from this provision if the district 
51.30 	submits a school board resolution stating that funds approved by the voters will be used 
51.31 	only as authorized in section 126C.10, subdivision 14. A school board shall not separate 
51.32 	portions of a single project into components to avoid the requirements of this subdivision.

52.1 	Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
52.2 		Subd. 9.Information required. A school board proposing to construct, expand, 
52.3 	or remodel a facility described in that requires a review and comment under subdivision 
52.4 	8 shall submit to the commissioner a proposal containing information including at least 
52.5 	the following:
52.6 	(1) the geographic area and population to be served, preschool through grade 12 
52.7 	student enrollments for the past five years, and student enrollment projections for the 
52.8 	next five years;
52.9 	(2) a list of existing facilities by year constructed, their uses, and an assessment of 
52.10 	the extent to which alternate facilities are available within the school district boundaries 
52.11 	and in adjacent school districts;
52.12 	(3) a list of the specific deficiencies of the facility that demonstrate the need for a 
52.13 	new or renovated facility to be provided, the process used to determine the deficiencies, a 
52.14 	list of those deficiencies that will and will not be addressed by the proposed project, and a 
52.15 	list of the specific benefits that the new or renovated facility will provide to the students, 
52.16 	teachers, and community users served by the facility;
52.17 	(4) the relationship of the project to any priorities established by the school district, 
52.18 	educational cooperatives that provide support services, or other public bodies in the 
52.19 	service area;
52.20 	(5) a description of the pedestrian, bicycle, and transit connections between the 
52.21 	school and nearby residential areas that make it easier for children, teachers, and parents 
52.22 	to get to the school by walking, bicycling, and taking transit;
52.23 	(6) a specification of how the project maximizes the opportunity for cooperative use 
52.24 	of existing park, recreation, and other public facilities and whether and how the project 
52.25 	will increase collaboration with other governmental or nonprofit entities;
52.26 	(7) (4) a description of the project, including the specification of site and outdoor 
52.27 	space acreage and square footage allocations for classrooms, laboratories, and support 
52.28 	spaces; estimated expenditures for the major portions of the project; and the dates the 
52.29 	project will begin and be completed;
52.30 	(8) (5) a specification of the source of financing the project, including applicable 
52.31 	statutory citations; the scheduled date for a bond issue or school board action; a schedule 
52.32 	of payments, including debt service equalization aid; and the effect of a bond issue on 
52.33 	local property taxes by the property class and valuation;
52.34 	(9) an analysis of how the proposed new or remodeled facility will affect school 
52.35 	district operational or administrative staffing costs, and how the district's operating budget 
52.36 	will cover any increased operational or administrative staffing costs;
53.1 	(10) a description of the consultation with local or state transportation officials 
53.2 	on multimodal school site access and safety issues, and the ways that the project will 
53.3 	address those issues;
53.4 	(11) a description of how indoor air quality issues have been considered and a 
53.5 	certification that the architects and engineers designing the facility will have professional 
53.6 	liability insurance;
53.7 	(12) as required under section 123B.72, for buildings coming into service after July 1, 
53.8 	2002, a certification that the plans and designs for the extensively renovated or new facility's 
53.9 	heating, ventilation, and air conditioning systems will meet or exceed code standards; will 
53.10 	provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and 
53.11 	will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
53.12 	(13) a specification of any desegregation requirements that cannot be met by any 
53.13 	other reasonable means;
53.14 	(14) a specification of how the facility will utilize environmentally sustainable 
53.15 	school facility design concepts;
53.16 	(15) a description of how the architects and engineers have considered the American 
53.17 	National Standards Institute Acoustical Performance Criteria, Design Requirements 
53.18 	and Guidelines for Schools of the maximum background noise level and reverberation 
53.19 	times; and
53.20 	(16) any existing information from the relevant local unit of government about the 
53.21 	cumulative costs to provide infrastructure to serve the school, such as utilities, sewer, 
53.22 	roads, and sidewalks.
53.23 	(6) documents obligating the school district and contractors to comply with items (i) 
53.24 	to (vii) in planning and executing the project:
53.25 	(i) section 471.346 governing municipal contracts;
53.26 	(ii) sustainable design;
53.27 	(iii) school facility commissioning under section 123B.72 certifying the plans and 
53.28 	designs for the heating, ventilating, air conditioning, and air filtration for an extensively 
53.29 	renovated or new facility meet or exceed current code standards, including the ASHRAE 
53.30 	air filtration standard 52.1;
53.31 	(iv) American National Standards Institute Acoustical Performance Criteria, Design 
53.32 	Requirements and Guidelines for Schools on maximum background noise level and 
53.33 	reverberation times;
53.34 	(v) State Fire Code;
53.35 	(vi) chapter 326B governing building codes; and
54.1 	(vii) consultation with affected government units about the impact of the project 
54.2 	on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic, 
54.3 	access to mass transit, and safe access for pedestrians and cyclists.

54.4 	Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d, 
54.5 	is amended to read:
54.6 		Subd. 2d.Declining enrollment revenue. (a) A school district's declining 
54.7 	enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the 
54.8 	formula allowance for that year and (2) the difference between the adjusted pupil units for 
54.9 	the preceding year and the adjusted pupil units for the current year.
54.10 	(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil 
54.11 	enrolled at the Crosswinds school shall not generate declining enrollment revenue for the 
54.12 	district or charter school in which the pupil was last counted in average daily membership.

54.13 	Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is 
54.14 	amended to read:
54.15 		Subd. 8.Taconite payment and other reductions. (1) Reductions in levies 
54.16 	pursuant to subdivision 1 must be made prior to the reductions in clause (2).
54.17 	(2) Notwithstanding any other law to the contrary, districts that have revenue 
54.18 	pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed 
54.19 	under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34 
54.20 	to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon 
54.21 	severed mineral values must reduce the levies authorized by this chapter and chapters 
54.22 	120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the 
54.23 	previous year's revenue specified under this clause and the amount attributable to the same 
54.24 	production year distributed to the cities and townships within the school district under 
54.25 	section 298.28, subdivision 2, paragraph (c).
54.26 	(3) The amount of any voter approved referendum, facilities down payment, and 
54.27 	debt levies shall not be reduced by more than 50 percent under this subdivision, except 
54.28 	that payments under section 298.28, subdivision 7a, may reduce the debt service levy by 
54.29 	more than 50 percent. In administering this paragraph, the commissioner shall first reduce 
54.30 	the nonvoter approved levies of a district; then, if any payments, severed mineral value 
54.31 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
54.32 	reduce any voter approved referendum levies authorized under section 126C.17; then, if 
54.33 	any payments, severed mineral value tax revenue or recognized revenue under paragraph 
54.34 	(2) remains, the commissioner shall reduce any voter approved facilities down payment 
55.1 	levies authorized under section 123B.63 and then, if any payments, severed mineral value 
55.2 	tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall 
55.3 	reduce any voter approved debt levies.
55.4 	(4) Before computing the reduction pursuant to this subdivision of the health and 
55.5 	safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner 
55.6 	shall ascertain from each affected school district the amount it proposes to levy under 
55.7 	each section or subdivision. The reduction shall be computed on the basis of the amount 
55.8 	so ascertained.
55.9 	(5) To the extent the levy reduction calculated under paragraph (2) exceeds the 
55.10 	limitation in paragraph (3), an amount equal to the excess must be distributed from the 
55.11 	school district's distribution under sections 298.225, 298.28, and 477A.15 in the following 
55.12 	year to the cities and townships within the school district in the proportion that their 
55.13 	taxable net tax capacity within the school district bears to the taxable net tax capacity of 
55.14 	the school district for property taxes payable in the year prior to distribution. No city or 
55.15 	township shall receive a distribution greater than its levy for taxes payable in the year prior 
55.16 	to distribution. The commissioner of revenue shall certify the distributions of cities and 
55.17 	towns under this paragraph to the county auditor by September 30 of the year preceding 
55.18 	distribution. The county auditor shall reduce the proposed and final levies of cities and 
55.19 	towns receiving distributions by the amount of their distribution. Distributions to the cities 
55.20 	and towns shall be made at the times provided under section 298.27.

55.21 	Sec. 12. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
55.22 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
55.23 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
55.24 	any taxable year is changed after the taxes for that year have been spread by the county 
55.25 	auditor and the local tax rate as determined by the county auditor based upon the original 
55.26 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
55.27 	prior to February 1 of each year, certify to the commissioner of education the amount of 
55.28 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
55.29 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
55.30 	calculated according to the provisions of this subdivision. This amount shall be deducted 
55.31 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
55.32 	adjustment must be the product of:
55.33 	(1) the net revenue loss as certified by the county auditor, times
55.34 	(2) the ratio of:
56.1 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
56.2 	according to the following:
56.3 	(A) section 123B.57, if the district received health and safety aid according to that 
56.4 	section for the second preceding year;
56.5 	(B) section 124D.20, if the district received aid for community education programs 
56.6 	according to that section for the second preceding year;
56.7 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
56.8 	education aid according to section 124D.135 for the second preceding year;
56.9 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
56.10 	aid according to that section for the second preceding year;
56.11 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
56.12 	according to section 126C.10, subdivision 13b, in the second preceding year;
56.13 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
56.14 	section 126C.10, subdivision 30, in the second preceding year;
56.15 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
56.16 	to section 126C.10, subdivision 33, in the second preceding year;
56.17 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
56.18 	aid according to section 123B.53, subdivision 6, in the second preceding year;
56.19 	(I) section 123B.535, subdivision 4, if the district received natural disaster debt 
56.20 	service equalization aid according to section 123B.535, subdivision 5, in the second 
56.21 	preceding year;
56.22 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
56.23 	according to section 124D.22, subdivision 4, in the second preceding year;
56.24 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
56.25 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
56.26 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
56.27 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
56.28 	(a), in the second preceding year; to
56.29 	(ii) the total amount of the district's certified levy in the third preceding December, 
56.30 	plus or minus auditor's adjustments.

56.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
56.32 	and later.

56.33 	Sec. 13. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
56.34 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
56.35 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
57.1 	decertification of a tax increment district, the school district's aid and levy limitations 
57.2 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
57.3 	provisions of this subdivision.
57.4 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
57.5 	equal to the product of:
57.6 	(1) the amount of the payment of excess tax increment to the district, times
57.7 	(2) the ratio of:
57.8 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
57.9 	the excess tax increment is paid according to the following:
57.10 	(A) section 123B.57, if the district received health and safety aid according to that 
57.11 	section for the second preceding year;
57.12 	(B) section 124D.20, if the district received aid for community education programs 
57.13 	according to that section for the second preceding year;
57.14 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
57.15 	education aid according to section 124D.135 for the second preceding year;
57.16 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
57.17 	aid according to that section for the second preceding year;
57.18 	(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
57.19 	according to section 126C.10, subdivision 13b, in the second preceding year;
57.20 	(F) section 126C.10, subdivision 29, if the district received equity aid according to 
57.21 	section 126C.10, subdivision 30, in the second preceding year;
57.22 	(G) section 126C.10, subdivision 32, if the district received transition aid according 
57.23 	to section 126C.10, subdivision 33, in the second preceding year;
57.24 	(H) section 123B.53, subdivision 5, if the district received debt service equalization 
57.25 	aid according to section 123B.53, subdivision 6, in the second preceding year;
57.26 	(I) section 123B.535, subdivision 4, if the district received natural disaster debt 
57.27 	service equalization aid according to section 123B.535, subdivision 5, in the second 
57.28 	preceding year;
57.29 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
57.30 	according to section 124D.22, subdivision 4, in the second preceding year;
57.31 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
57.32 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
57.33 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
57.34 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
57.35 	(a), in the second preceding year; to
58.1 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
58.2 	auditor's adjustments.
58.3 	(c) An amount must be subtracted from the school district's levy limitation for the 
58.4 	next levy certified equal to the difference between:
58.5 	(1) the amount of the distribution of excess increment; and
58.6 	(2) the amount subtracted from aid pursuant to clause (a).
58.7 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
58.8 	for the fiscal year specified or to the levy specified, the reductions must be made from 
58.9 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
58.10 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
58.11 	this subdivision.
58.12 	(d) This subdivision applies only to the total amount of excess increments received 
58.13 	by a district for a calendar year that exceeds $25,000.

58.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2017 
58.15 	and later.

58.16 	Sec. 14. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
58.17 		Subd. 3.Powers and duties of board. (a) The board has the powers necessary for 
58.18 	the care, management, and control of the Perpich Center for Arts Education and any other 
58.19 	school authorized in this chapter, and all its their real and personal property. The powers 
58.20 	shall include, but are not limited to, those listed in this subdivision.
58.21 	(b) The board may employ and discharge necessary employees, and contract for 
58.22 	other services to ensure the efficient operation of the Center for Arts Education and any 
58.23 	other school authorized in this chapter.
58.24 	(c) The board may receive and award grants. The board may establish a charitable 
58.25 	foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for 
58.26 	educational purposes and hold, manage, invest, and dispose of them and the proceeds 
58.27 	and income of them according to the terms and conditions of the gift, grant, bequest, or 
58.28 	devise and its acceptance. The board must adopt internal procedures to administer and 
58.29 	monitor aids and grants.
58.30 	(d) The board may establish or coordinate evening, continuing education, extension, 
58.31 	and summer programs for teachers and pupils.
58.32 	(e) The board may identify pupils who have artistic talent, either demonstrated or 
58.33 	potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more 
58.34 	than one art form.
58.35 	(f) The board must educate pupils with artistic talent by providing:
59.1 	(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th 
59.2 	grades. The total number of pupils accepted under this clause and clause (2) shall not 
59.3 	exceed 310;
59.4 	(2) additional instruction to pupils for a 13th grade. Pupils eligible for this 
59.5 	instruction are those enrolled in 12th grade who need extra instruction and who apply 
59.6 	to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes 
59.7 	established by the board;
59.8 	(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
59.9 	(4) summer arts institutes for pupils in grades 9 to 12;
59.10 	(5) artist mentor and extension programs in regional sites; and
59.11 	(6) teacher education programs for indirect curriculum delivery.
59.12 	(g) The board may determine the location for the Perpich Center for Arts Education 
59.13 	and any additional facilities related to the center, including the authority to lease a 
59.14 	temporary facility.
59.15 	(h) The board must plan for the enrollment of pupils on an equal basis from each 
59.16 	congressional district.
59.17 	(i) The board may establish task forces as needed to advise the board on policies and 
59.18 	issues. The task forces expire as provided in section 15.059, subdivision 6.
59.19 	(j) The board may request the commissioner of education for assistance and services.
59.20 	(k) The board may enter into contracts with other public and private agencies 
59.21 	and institutions for residential and building maintenance services if it determines that 
59.22 	these services could be provided more efficiently and less expensively by a contractor 
59.23 	than by the board itself. The board may also enter into contracts with public or private 
59.24 	agencies and institutions, school districts or combinations of school districts, or service 
59.25 	cooperatives to provide supplemental educational instruction and services.
59.26 	(l) The board may provide or contract for services and programs by and for the 
59.27 	Center for Arts Education, including a store, operating in connection with the center; 
59.28 	theatrical events; and other programs and services that, in the determination of the board, 
59.29 	serve the purposes of the center.
59.30 	(m) The board may provide for transportation of pupils to and from the Center for 
59.31 	Arts Education for all or part of the school year, as the board considers advisable and 
59.32 	subject to its rules. Notwithstanding any other law to the contrary, the board may charge a 
59.33 	reasonable fee for transportation of pupils. Every driver providing transportation of pupils 
59.34 	under this paragraph must possess all qualifications required by the commissioner of 
59.35 	education. The board may contract for furnishing authorized transportation under rules 
59.36 	established by the commissioner of education and may purchase and furnish gasoline to a 
60.1 	contract carrier for use in the performance of a contract with the board for transportation 
60.2 	of pupils to and from the Center for Arts Education. When transportation is provided, 
60.3 	scheduling of routes, establishment of the location of bus stops, the manner and method of 
60.4 	transportation, the control and discipline of pupils, and any other related matter is within 
60.5 	the sole discretion, control, and management of the board.
60.6 	(n) The board may provide room and board for its pupils. If the board provides room 
60.7 	and board, it shall charge a reasonable fee for the room and board. The fee is not subject 
60.8 	to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
60.9 	(o) The board may establish and set fees for services and programs. If the board sets 
60.10 	fees not authorized or prohibited by the Minnesota public school fee law, it may do so 
60.11 	without complying with the requirements of section 123B.38.
60.12 	(p) The board may apply for all competitive grants administered by agencies of the 
60.13 	state and other government or nongovernment sources.

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

60.15 	Sec. 15. Minnesota Statutes 2012, section 129C.10, is amended by adding a 
60.16 	subdivision to read:
60.17 		Subd. 5a.Interdistrict voluntary integration magnet program. Notwithstanding 
60.18 	Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate 
60.19 	an interdistrict integration magnet program according to section 129C.30. For fiscal year 
60.20 	2016 and later, the board must have an approved achievement and integration plan and 
60.21 	budget under section 124D.861.

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

60.23 	Sec. 16. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
60.24 		Subdivision 1.Definitions. (a) The following terms having the meanings given 
60.25 	them for this chapter.
60.26 	(b) "Board" means the board of directors of the Perpich Center for Arts Education.
60.27 	(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during 
60.28 	the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration 
60.29 	District.
60.30 		Subd. 2.Board to operate the Crosswinds school. The board may operate the 
60.31 	Crosswinds school with the powers and duties granted to it under this chapter. A student 
60.32 	may apply to the Crosswinds school under section 124D.03 and the Crosswinds school 
60.33 	may accept students under that section.
61.1 		Subd. 3.General education funding. General education revenue must be paid to 
61.2 	the Crosswinds school as though it were a district. The general education revenue for each 
61.3 	adjusted pupil unit is the state average general education revenue per pupil unit, plus 
61.4 	the referendum equalization aid allowance in the pupil's district of residence, minus an 
61.5 	amount equal to the product of the formula allowance according to section 126C.10, 
61.6 	subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue, 
61.7 	extended time revenue, pension adjustment revenue, transition revenue, and transportation 
61.8 	sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue, 
61.9 	pension adjustment revenue, and transition revenue as though the school were a school 
61.10 	district. The general education revenue for each extended time pupil unit equals $4,794.
61.11 		Subd. 4.Special education funding. Special education aid must be paid to the 
61.12 	Crosswinds school according to sections 125A.76 and 125A.79, as though it were a 
61.13 	school district. The special education aid paid to the Crosswinds school shall be adjusted 
61.14 	as follows:
61.15 	(1) if the Crosswinds school does not receive general education revenue on behalf of 
61.16 	the student according to subdivision 3, the aid shall be adjusted as provided in section 
61.17 	125A.11; or
61.18 	(2) if the Crosswinds school receives general education revenue on behalf of the 
61.19 	student according to subdivision 3, the aid shall be adjusted as provided in section 
61.20 	127A.47, subdivision 7, paragraphs (b) to (d).
61.21 		Subd. 5.Pupil transportation.  (a) For fiscal year 2015 only, a member district of 
61.22 	Joint Powers District No. 6067, East Metro Integration District, must transport pupils 
61.23 	enrolled at the Crosswinds school in the same manner as they were transported in fiscal 
61.24 	year 2014. 
61.25 	(b) Pupil transportation expenses under this section are reimbursable under section 
61.26 	124D.87.
61.27 		Subd. 6.Achievement and integration aid. For fiscal year 2016 and later, the 
61.28 	Crosswinds school is eligible for achievement and integration aid under section 124D.862 
61.29 	as if it were a school district.
61.30 		Subd. 7.Other aids, grants, revenue. (a) The Crosswinds school is eligible to 
61.31 	receive other aids, grants, and revenue according to chapters 120A to 129C as though it 
61.32 	were a district.
61.33 	(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a 
61.34 	grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue 
61.35 	replaces levy revenue that is not general education revenue, except as otherwise provided 
61.36 	in this section.
62.1 	(c) Federal aid received by the state must be paid to the school if it qualifies for 
62.2 	the aid as though it were a school district.
62.3 	(d) In the year-end report to the commissioner of education, the Crosswinds school 
62.4 	shall report the total amount of funds received from grants and other outside sources.
62.5 		Subd. 8.Year-round programming. The Crosswinds school may operate as a 
62.6 	flexible learning year program under sections 124D.12 to 124D.127.
62.7 		Subd. 9.Data requirements. The commissioner of education shall require the 
62.8 	Crosswinds school to follow the budget and accounting procedures required for school 
62.9 	districts and the Crosswinds school shall report all data to the Department of Education in 
62.10 	the form and manner required by the commissioner.

62.11 	Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 5, is amended to read:
62.12 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
62.13 	access:

62.14		$
	3,750,000
	.....
	2014
	
62.15
62.16		$
	3,750,000
8,750,000
	.....
	2015
	
62.17 	If the appropriation amount is insufficient, the commissioner shall reduce the 
62.18 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
62.19 	revenue for fiscal years 2014 and 2015 shall be prorated.
62.20 	Any balance in the first year does not cancel but is available in the second year.
62.21 	 The base appropriation for this program for fiscal years 2016 and 2017 is $8,750,000 
62.22 	for each year.

62.23 	Sec. 18. HARAMBEE COMMUNITY SCHOOL TRANSITION.
 62.24 		Subdivision 1.Facilities. Notwithstanding the appropriations of state general 
62.25 	obligation bond proceeds in Laws 1994, chapter 643, section 14, subdivision 7, to Joint 
62.26 	Powers District No. 6067, East Metro Integration District, to acquire and better the 
62.27 	Harambee community school, in Maplewood, the real and personal property of the 
62.28 	Harambee school, may be conveyed to Independent School District No. 623, Roseville, 
62.29 	for operation of a multidistrict integration facility that serves students in any grade from 
62.30 	early education through grade 12.
62.31 		Subd. 2.Student enrollment. A student enrolled in the Harambee community 
62.32 	school during the 2013-2014 school year may continue to enroll in the Harambee 
62.33 	community school in any subsequent year. For the 2014-2015 school year and later, other 
62.34 	students may apply for enrollment under Minnesota Statutes, section 124D.03.
63.1 		Subd. 3.Compensatory revenue; literacy aid; alternative compensation 
63.2 	revenue. For the 2014-2015 school year only, the Department of Education must calculate 
63.3 	compensatory revenue, literacy aid, and alternative compensation revenue for the 
63.4 	Harambee community school based on the October 1, 2013, enrollment counts.
63.5 		Subd. 4.Year-round programming. Harambee community school may operate as 
63.6 	a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
63.7 		Subd. 5.Pupil transportation. The board may transport pupils enrolled in the 
63.8 	2013-2014 school year to and from the Harambee community school in succeeding school 
63.9 	years regardless of the students' districts of residence. Pupil transportation expenses under 
63.10 	this section are reimbursable under Minnesota Statutes, section 124D.87.

63.11 	Sec. 19. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
 63.12 		Subdivision 1.Transfer. Notwithstanding the appropriation of state general 
63.13 	obligation bond proceeds in Laws 1998, chapter 404, section 5, subdivision 5; Laws 1999, 
63.14 	chapter 240, article 1, section 3; Laws 2000, chapter 492, article 1, section 5, subdivision 
63.15 	2; Laws 2001, First Special Session chapter 12, section 2, subdivision 2; and Laws 
63.16 	2005, chapter 20, article 1, section 5, subdivision 3, to acquire and better the Crosswinds 
63.17 	school facilities by the Joint Powers District No. 6067, East Metro Integration District, 
63.18 	in Woodbury, the Crosswinds school may be conveyed to the Perpich Center for Arts 
63.19 	Education for use as an east metropolitan area integration magnet school.
63.20 		Subd. 2.Student enrollment. Any student enrolled in the Crosswinds school 
63.21 	during the 2013-2014 school year may continue to enroll in the Crosswinds school in 
63.22 	any subsequent year. For the 2014-2015 school year and later, a student may apply for 
63.23 	enrollment to the school under Minnesota Statutes, section 124D.03.
63.24 		Subd. 3.Compensatory revenue, literacy aid, and alternative compensation 
63.25 	revenue. For the 2014-2015 school year only, the Department of Education must calculate 
63.26 	compensatory revenue, literacy aid, and alternative compensation revenue for the 
63.27 	Crosswinds school based on the October 1, 2013, enrollment counts at that site.
63.28 		Subd. 4.Title 1 funding. To the extent possible, the Department of Education 
63.29 	must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding 
63.30 	as if the program were still operated by Joint Powers District No. 6067, East Metro 
63.31 	Integration District.

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

63.33 	Sec. 20. LEASE LEVY; TRANSPORTATION HUB FOR ROSEMOUNT-APPLE 
63.34 	VALLEY-EAGAN SCHOOL DISTRICT.
 64.1 	Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent 
64.2 	School District No. 196, Rosemount-Apple Valley-Eagan, may lease a transportation 
64.3 	hub under Minnesota Statutes, section 126C.40, subdivision 1. Levy authority under 
64.4 	this section shall not exceed the total levy authority under Minnesota Statutes, section 
64.5 	126C.40, subdivision 1, paragraph (e).

64.6 	EFFECTIVE DATE. This section is effective for taxes payable in 2015 and later.

64.7 	Sec. 21.  REPEALER.
 64.8 	Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.

64.9 	ARTICLE 5
64.10 	NUTRITION

64.11 	Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1, 
64.12 	is amended to read:
64.13 		Subdivision 1.School lunch aid computation. Each school year, the state must 
64.14 	pay participants in the national school lunch program the amount of 12.5 cents for each 
64.15 	full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price 
64.16 	lunch served to students.

64.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
64.18 	and later.

64.19 	Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a 
64.20 	subdivision to read:
64.21 		Subd. 4.No fees. A participant that receives school lunch aid under this section 
64.22 	must make lunch available without charge to all participating students who qualify for 
64.23 	free or reduced-price meals. The participant must also ensure that any reminders for 
64.24 	payment of outstanding student meal balances do not demean or stigmatize any child 
64.25 	participating in the school lunch program.

64.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
64.27 	and later.

64.28 	Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
64.29 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
64.30 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

65.1
65.2		$
	13,032,000
12,417,000
	.....
	2014
	
65.3
65.4		$
	13,293,000
16,185,000
	.....
	2015

65.5 	ARTICLE 6
65.6 	EARLY EDUCATION, COMMUNITY EDUCATION, SELF-SUFFICIENCY 
65.7 	AND LIFELONG LEARNING

65.8 	Section 1. Minnesota Statutes 2012, section 121A.19, is amended to read:
65.9 	121A.19 DEVELOPMENTAL SCREENING AID.
65.10 	Each school year, the state must pay a district for each child or student screened by 
65.11 	the district according to the requirements of section 121A.17. The amount of state aid 
65.12 	for each child or student screened shall be: (1) $75 $80 for a child screened at age three; 
65.13 	(2) $50 $55 for a child screened at age four; (3) $40 for a child screened at age five or 
65.14 	six prior to kindergarten; and (4) $30 for a student screened within 30 days after first 
65.15 	enrolling in a public school kindergarten if the student has not previously been screened 
65.16 	according to the requirements of section 121A.17. If this amount of aid is insufficient, 
65.17 	the district may permanently transfer from the general fund an amount that, when added 
65.18 	to the aid, is sufficient. Developmental screening aid shall not be paid for any student 
65.19 	who is screened more than 30 days after the first day of attendance at a public school 
65.20 	kindergarten, except if a student transfers to another public school kindergarten within 
65.21 	30 days after first enrolling in a Minnesota public school kindergarten program. In this 
65.22 	case, if the student has not been screened, the district to which the student transfers may 
65.23 	receive developmental screening aid for screening that student when the screening is 
65.24 	performed within 30 days of the transfer date.

65.25 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
65.26 	and later.

65.27 	Sec. 2. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
65.28 		Subd. 2.Amount of aid. (a) A district is eligible to receive school readiness aid 
65.29 	for eligible prekindergarten pupils enrolled in a school readiness program under section 
65.30 	124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been 
65.31 	approved by the commissioner.
65.32 	(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid 
65.33 	equal to:
66.1 	(1) the number of four-year-old children in the district on October 1 for the previous 
66.2 	school year times the ratio of 50 percent of the total school readiness aid for that year to 
66.3 	the total number of four-year-old children reported to the commissioner for the previous 
66.4 	school year; plus
66.5 	(2) the number of pupils enrolled in the school district from families eligible for the 
66.6 	free or reduced school lunch program for the previous school year times the ratio of 
66.7 	50 percent of the total school readiness aid for that year to the total number of pupils 
66.8 	in the state from families eligible for the free or reduced school lunch program for the 
66.9 	previous school year.
66.10 	(c) For fiscal year 2015 and later, total school readiness aid equals $12,000,000.

66.11 	EFFECTIVE DATE. This section is effective for state aid for fiscal year 2015 
66.12 	and later.

66.13 	Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, is 
66.14 	amended to read:
66.15 		Subd. 5.Report required. The commissioner shall contract with an independent 
66.16 	contractor to evaluate the early learning scholarship program. The evaluation must 
66.17 	include recommendations regarding the appropriate scholarship amount, efficiency, and 
66.18 	effectiveness of the administration, and impact on kindergarten readiness. By January 
66.19 	15, 2016, the commissioner shall submit a written copy of the evaluation to the chairs 
66.20 	and ranking minority members of the legislative committees and divisions with primary 
66.21 	jurisdiction over kindergarten through grade 12 education.

66.22 	Sec. 4. Minnesota Statutes 2012, section 124D.522, is amended to read:
66.23 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
66.24 	GRANTS.
66.25 	(a) The commissioner, in consultation with the policy review task force under 
66.26 	section 124D.521, may make grants to nonprofit organizations to provide services that 
66.27 	are not offered by a district adult basic education program or that are supplemental to 
66.28 	either the statewide adult basic education program, or a district's adult basic education 
66.29 	program. The commissioner may make grants for: staff development for adult basic 
66.30 	education teachers and administrators; training for volunteer tutors; training, services, and 
66.31 	materials for serving disabled students through adult basic education programs; statewide 
66.32 	promotion of adult basic education services and programs; development and dissemination 
66.33 	of instructional and administrative technology for adult basic education programs; 
67.1 	programs which primarily serve communities of color; adult basic education distance 
67.2 	learning projects, including television instruction programs; and other supplemental 
67.3 	services to support the mission of adult basic education and innovative delivery of adult 
67.4 	basic education services.
67.5 	(b) The commissioner must establish eligibility criteria and grant application 
67.6 	procedures. Grants under this section must support services throughout the state, focus on 
67.7 	educational results for adult learners, and promote outcome-based achievement through 
67.8 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
67.9 	make grants under this section from the state total adult basic education aid set aside for 
67.10 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
67.11 	for supplemental service grants must be used for grants for adult basic education programs 
67.12 	to encourage and support innovations in adult basic education instruction and service 
67.13 	delivery. A grant to a single organization cannot exceed 20 40 percent of the total 
67.14 	supplemental services aid. Nothing in this section prevents an approved adult basic 
67.15 	education program from using state or federal aid to purchase supplemental services.

67.16 	Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is 
67.17 	amended to read:
67.18 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
67.19 	education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid 
67.20 	during the previous fiscal year as a result of adjustments under subdivision 4, paragraph 
67.21 	(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later 
67.22 	fiscal years equals:
67.23 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
67.24 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
67.25 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
67.26 	(2) the lesser of:
67.27 	(i) 1.025 1.03; or
67.28 	(ii) the average growth in state total contact hours over the prior ten program years.
67.29 	Beginning in fiscal year 2002, two Three percent of the state total adult basic 
67.30 	education aid must be set aside for adult basic education supplemental service grants 
67.31 	under section 124D.522.
67.32 	(b) The state total adult basic education aid, excluding basic population aid, equals 
67.33 	the difference between the amount computed in paragraph (a), and the state total basic 
67.34 	population aid under subdivision 2.

68.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2015 
68.2 	and later.

68.3 	Sec. 6. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
68.4 		Subd. 3.Program revenue. Adult basic education programs established under 
68.5 	section 124D.52 and approved by the commissioner are eligible for revenue under this 
68.6 	subdivision. For fiscal year 2001 and later, adult basic education revenue for each 
68.7 	approved program equals the sum of:
68.8 	(1) the basic population aid under subdivision 2 for districts participating in the 
68.9 	program during the current program year; plus
68.10 	(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the 
68.11 	ratio of the contact hours for students participating in the program during the first prior 
68.12 	program year to the state total contact hours during the first prior program year; plus
68.13 	(3) eight percent times the amount computed in subdivision 1, paragraph (b), times 
68.14 	the ratio of the enrollment of English learners during the second prior school year in 
68.15 	districts participating in the program during the current program year to the state total 
68.16 	enrollment of English learners during the second prior school year in districts participating 
68.17 	in adult basic education programs during the current program year; plus
68.18 	(4) eight percent times the amount computed in subdivision 1, paragraph (b), times 
68.19 	the ratio of the latest federal census count of the number of adults aged 20 25 or older 
68.20 	with no diploma residing in the districts participating in the program during the current 
68.21 	program year to the latest federal census count of the state total number of adults aged 20
68.22 	 25 or older with no diploma residing in the districts participating in adult basic education 
68.23 	programs during the current program year.

68.24 	Sec. 7. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
68.25 		Subd. 2.School readiness. For revenue for school readiness programs under 
68.26 	Minnesota Statutes, sections 124D.15 and 124D.16:

68.27
68.28		$
	10,095,000
10,458,000
	.....
	2014
	
68.29
68.30		$
	10,159,000
11,809,000
	.....
	2015
	
68.31 	The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
68.32 	 for 2014.
68.33 	The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
68.34 	 $10,800,000 for 2015.

69.1 	Sec. 8. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
69.2 		Subd. 4.Health and developmental screening aid. For health and developmental 
69.3 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

69.4		$
	3,421,000
	.....
	2014
	
69.5
69.6		$
	3,344,000
3,569,000
	.....
	2015
	
69.7 	The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
69.8 	The 2015 appropriation includes $463,000 for 2014 and $2,881,000 $3,106,000
69.9 	 for 2015.

69.10 	Sec. 9. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
69.11 		Subd. 14.Adult basic education aid. For adult basic education aid under 
69.12 	Minnesota Statutes, section 124D.531:

69.13
69.14		$
	47,005,000
48,782,000
	.....
	2014
	
69.15
69.16		$
	48,145,000
48,415,000
	.....
	2015
	
69.17 	The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
69.18 	 for 2014.
69.19 	The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
69.20 	 $43,693,000 for 2015.

69.21 	Sec. 10. APPROPRIATIONS.
 69.22 		Subdivision 1.Department of Education. The sums indicated in this section are 
69.23 	appropriated from the general fund to the Department of Education for the fiscal years 
69.24 	designated.
69.25 		Subd. 2.Northside Achievement Zone. (a) For a grant to the Northside 
69.26 	Achievement Zone:

69.27		$
	1,132,000
	.....
	2015
	
69.28 	(b) Funds appropriated in this subdivision are to reduce multigenerational poverty 
69.29 	and the educational achievement gap through increased enrollment of families within 
69.30 	the zone, and may be used for Northside Achievement Zone programming and services 
69.31 	consistent with federal Promise Neighborhood program agreements and requirements.
69.32 	(c) The Northside Achievement Zone shall submit a report by October 1, 2015, to 
69.33 	the chairs of the legislative committees with jurisdiction over early childhood through 
70.1 	grade 12 education policy and finance that, at a minimum, summarizes program activities, 
70.2 	specifies performance measures, and analyzes program outcomes.
70.3 	(d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.
70.4 		Subd. 3.St. Paul Promise Neighborhood. (a) For a grant to the St. Paul Promise 
70.5 	Neighborhood:

70.6		$
	1,132,000
	.....
	2015
	
70.7 	(b) Funds appropriated in this subdivision are to reduce multigenerational poverty 
70.8 	and the educational achievement gap through increased enrollment of families within the 
70.9 	zone, and may be used for St. Paul Promise Neighborhood programming and services 
70.10 	consistent with federal Promise Neighborhood program agreements and requirements. 
70.11 	(c) The St. Paul Promise Neighborhood shall submit a report by October 1, 2015, to 
70.12 	the chairs of the legislative committees with jurisdiction over early childhood through 
70.13 	grade 12 education policy and finance that, at a minimum, summarizes program activities, 
70.14 	specifies performance measures, and analyzes program outcomes.
70.15 	(d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.

70.16 	ARTICLE 7
70.17 	STATE AGENCIES

70.18 	Section 1. Laws 2013, chapter 116, article 9, section 1, subdivision 2, is amended to read:
70.19 		Subd. 2.Department. (a) For the Department of Education:

70.20		$
	20,058,000
	.....
	2014
	
70.21
70.22		$
	19,308,000
 19,716,000
	.....
	2015
	
70.23 	Any balance in the first year does not cancel but is available in the second year.
70.24 	(b) $260,000 each year is for the Minnesota Children's Museum.
70.25 	(c) $41,000 each year is for the Minnesota Academy of Science.
70.26 	(d) $50,000 each year is for the Duluth Children's Museum.
70.27 	(e) $618,000 eachin fiscal year 2014 and $718,000 in fiscal year is2015 only are
70.28 	 for the Board of Teaching. Any balance in the first year does not cancel but is available 
70.29 	in the second year.
70.30 	(f) $167,000 eachin fiscal year 2014 and $225,000 in fiscal year is2015 are for 
70.31 	the Board of School Administrators. Any balance in the first year does not cancel but 
70.32 	is available in the second year.
70.33 	(g) $75,000 in fiscal year 2015 only is for The Works Museum.
71.1 	(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center 
71.2 	for hands-on science, technology, engineering, and math (STEM) education.
71.3 	(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263, 
71.4 	section 1.
71.5 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
71.6 	document and its supplements are approved and appropriated and shall be spent as 
71.7 	indicated.
71.8 	(h) (k) None of the amounts appropriated under this subdivision may be used for 
71.9 	Minnesota's Washington, D.C. office.
71.10 	(i) (l) $250,000 each year is for the School Finance Division to enhance financial 
71.11 	data analysis.
71.12 	(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with 
71.13 	teacher development and evaluation. Any balance in the first year does not cancel and 
71.14 	is available in the second year.

71.15 	Sec. 2. Laws 2013, chapter 116, article 9, section 2, is amended to read:
71.16 	Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 71.17 	The sums indicated in this section are appropriated from the general fund to the 
71.18 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

71.19		$
	11,749,000
	.....
	2014
	
71.20
71.21		$
	11,664,000
11,964,000
	.....
	2015
	
71.22 	$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading 
71.23 	kitchen facilities. Any balance in the first year does not cancel but is available in the 
71.24 	second year.

71.25 	Sec. 3. APPROPRIATION; RESPONSES TO HEALTH INSURANCE 
71.26 	TRANSPARENCY ACT BID REQUESTS.
 71.27 	(a) $294,000 is appropriated for fiscal year 2015 from the general fund to the 
71.28 	commissioner of management and budget to comply with the requirements relating to 
71.29 	health insurance transparency similar to those proposed in House File 2180, if enacted in 
71.30 	the 2014 regular legislative session. This is a onetime appropriation.
71.31 	(b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner 
71.32 	of management and budget shall report by January 15, 2015, to the legislative chairs 
71.33 	and ranking minority members with jurisdiction over state government finance on the 
71.34 	ongoing costs incurred by the public employees insurance program in compliance with 
72.1 	the requirements of the health insurance transparency act and may request additional 
72.2 	appropriations, if necessary.

72.3 	ARTICLE 8
72.4 	FORECAST ADJUSTMENTS
72.5 	A. GENERAL EDUCATION

72.6 	Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to 
72.7 	read:
72.8 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
72.9 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
72.10 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

72.11
72.12		$
	44,000
37,000
	.....
	2014
	
72.13
72.14		$
	48,000
40,000
	.....
	2015

72.15 	Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
72.16 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
72.17 	127A.49:

72.18
72.19		$
	2,747,000
2,876,000
	.....
	2014
	
72.20
72.21		$
	3,136,000
3,103,000
	.....
	2015
	
72.22 	The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
72.23 	 for 2014.
72.24 	The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
72.25 	 $2,817,000 for 2015.

72.26 	Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
72.27 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
72.28 	Statutes, section 123A.485:

72.29
72.30		$
	472,000
585,000
	.....
	2014
	
72.31
72.32		$
	480,000
254,000
	.....
	2015
	
72.33 	The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
73.1 	The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
73.2 	 for 2015.

73.3 	Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
73.4 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
73.5 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

73.6
73.7		$
	15,582,000
16,068,000
	.....
	2014
	
73.8
73.9		$
	16,169,000
16,074,000
	.....
	2015
	
73.10 	The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
73.11 	 for 2014.
73.12 	The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
73.13 	 $14,522,000 for 2015.

73.14 	Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
73.15 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
73.16 	under Minnesota Statutes, section 123B.92, subdivision 9:

73.17
73.18		$
	18,565,000
18,566,000
	.....
	2014
	
73.19
73.20		$
	18,946,000
17,646,000
	.....
	2015
	
73.21 	The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
73.22 	 for 2014.
73.23 	The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
73.24 	 $15,880,000 for 2015.

73.25 	Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
73.26 		Subd. 11.Career and technical aid. For career and technical aid under Minnesota 
73.27 	Statutes, section 124D.4531, subdivision 1b:

73.28
73.29		$
	4,320,000
3,959,000
	.....
	2014
	
73.30
73.31		$
	5,680,000
5,172,000
	.....
	2015
	
73.32 	The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
73.33 	The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
73.34 	 $4,733,000 for 2015.
73.35 	B. EDUCATION EXCELLENCE

74.1 	Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
74.2 		Subd. 3.Achievement and integration aid. For achievement and integration aid 
74.3 	under Minnesota Statutes, section 124D.862:

74.4
74.5		$
	58,911,000
55,609,000
	.....
	2014
	
74.6
74.7		$
	68,623,000
62,692,000
	.....
	2015
	
74.8 	The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
74.9 	The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
74.10 	 $56,514,000 for 2015.

74.11 	Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
74.12 		Subd. 4.Literacy incentive aid. For literacy incentive aid under Minnesota 
74.13 	Statutes, section 124D.98:

74.14
74.15		$
	52,514,000
50,998,000
	.....
	2014
	
74.16
74.17		$
	53,818,000
47,458,000
	.....
	2015
	
74.18 	The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
74.19 	 for 2014.
74.20 	The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
74.21 	 $42,526,000 for 2015.

74.22 	Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
74.23 		Subd. 5.Interdistrict desegregation or integration transportation grants. For 
74.24 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
74.25 	section 124D.87:

74.26
74.27		$
	13,968,000
13,521,000
	.....
	2014
	
74.28
74.29		$
	14,712,000
14,248,000
	.....
	2015

74.30 	Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
74.31 		Subd. 6.Success for the future. For American Indian success for the future grants 
74.32 	under Minnesota Statutes, section 124D.81:

74.33
74.34		$
	2,137,000
2,214,000
	.....
	2014
	
74.35		$
	2,137,000
	.....
	2015
	
75.1 	The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
75.2 	 for 2014.
75.3 	The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
75.4 	 $1,924,000 for 2015.

75.5 	Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
75.6 		Subd. 8.Tribal contract schools. For tribal contract school aid under Minnesota 
75.7 	Statutes, section 124D.83:

75.8
75.9		$
	2,080,000
2,144,000
	.....
	2014
	
75.10
75.11		$
	2,230,000
2,152,000
	.....
	2015
	
75.12 	The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
75.13 	 for 2014.
75.14 	The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
75.15 	 $1,944,000 for 2015.

75.16 	Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to 
75.17 	read:
75.18 		Subd. 20.Alternative compensation. For alternative teacher compensation aid 
75.19 	under Minnesota Statutes, section 122A.415, subdivision 4:

75.20
75.21		$
	60,340,000
71,599,000
	.....
	2015
	
75.22 	The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.
75.23 	C. CHARTER SCHOOLS

75.24 	Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
75.25 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
75.26 	Statutes, section 124D.11, subdivision 4: 

75.27
75.28		$
	54,484,000
54,763,000
	.....
	2014
	
75.29
75.30		$
	59,533,000
58,294,000
	.....
	2015
	
75.31 	The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
75.32 	 for 2014.
75.33 	The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
75.34 	 $52,967,000 for 2015.
76.1 	D. SPECIAL PROGRAMS

76.2 	Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
76.3 		Subd. 2.Special education; regular. For special education aid under Minnesota 
76.4 	Statutes, section 125A.75:

76.5
76.6		$
	997,725,000
1,038,514,000
	.....
	2014
	
76.7
76.8		$
	1,108,211,000
1,111,641,000
	.....
	2015
	
76.9 	The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
76.10 	 $920,282,000 for 2014.
76.11 	The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and 
76.12 	$938,282,000 $982,092,000 for 2015.

76.13 	Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
76.14 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
76.15 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
76.16 	within the district boundaries for whom no district of residence can be determined:

76.17
76.18		$
	1,655,000
1,548,000
	.....
	2014
	
76.19
76.20		$
	1,752,000
1,674,000
	.....
	2015
	
76.21 	If the appropriation for either year is insufficient, the appropriation for the other 
76.22 	year is available.

76.23 	Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
76.24 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
76.25 	services under Minnesota Statutes, section 125A.75, subdivision 1:

76.26
76.27		$
	345,000
351,000
	.....
	2014
	
76.28
76.29		$
	355,000
346,000
	.....
	2015
	
76.30 	The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
76.31 	The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
76.32 	 for 2015.
76.33 	E. FACILITIES AND TECHNOLOGY

76.34 	Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
77.1 		Subd. 2.Health and safety revenue. For health and safety aid according to 
77.2 	Minnesota Statutes, section 123B.57, subdivision 5:

77.3
77.4		$
	463,000
473,000
	.....
	2014
	
77.5
77.6		$
	434,000
651,000
	.....
	2015
	
77.7 	The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
77.8 	The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
77.9 	 for 2015.

77.10 	Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
77.11 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
77.12 	Statutes, section 123B.53, subdivision 6:

77.13
77.14		$
	19,083,000
19,778,000
	.....
	2014
	
77.15
77.16		$
	25,060,000
22,591,000
	.....
	2015
	
77.17 	The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
77.18 	 for 2014.
77.19 	The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
77.20 	 $20,660,000 for 2015.

77.21 	Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
77.22 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
77.23 	according to Minnesota Statutes, section 123B.59, subdivision 1:

77.24
77.25		$
	19,287,000
19,982,000
	.....
	2014
	
77.26		$
	19,287,000
	.....
	2015
	
77.27 	The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
77.28 	 for 2014.
77.29 	The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
77.30 	 $17,359,000 for 2015.

77.31 	Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
77.32 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
77.33 	Minnesota Statutes, section 123B.591, subdivision 4:

78.1
78.2		$
	3,564,000
3,858,000
	.....
	2014
	
78.3
78.4		$
	3,730,000
4,024,000
	.....
	2015
	
78.5 	The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
78.6 	 for 2014.
78.7 	The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
78.8 	 $3,646,000 for 2015.
78.9 	F. NUTRITION AND LIBRARIES

78.10 	Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
78.11 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
78.12 	Statutes, section 124D.1158:

78.13
78.14		$
	5,711,000
5,308,000
	.....
	2014
	
78.15
78.16		$
	6,022,000
5,607,000
	.....
	2015

78.17 	Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
78.18 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
78.19 	section 124D.118:

78.20
78.21		$
	1,039,000
992,000
	.....
	2014
	
78.22
78.23		$
	1,049,000
1,002,000
	.....
	2015

78.24 	Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
78.25 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
78.26 	Statutes, section 134.355:

78.27
78.28		$
	13,570,000
14,058,000
	.....
	2014
	
78.29
78.30		$
	13,570,000
13,570,000
	.....
	2015
	
78.31 	The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
78.32 	 for 2014.
78.33 	The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
78.34 	 $12,213,000 for 2015.

79.1 	Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
79.2 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
79.3 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

79.4
79.5		$
	1,300,000
1,346,000
	.....
	2014
	
79.6		$
	1,300,000
	.....
	2015
	
79.7 	The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
79.8 	 for 2014.
79.9 	The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
79.10 	 $1,170,000 for 2015.

79.11 	Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
79.12 		Subd. 9.Regional library telecommunications aid. For regional library 
79.13 	telecommunications aid under Minnesota Statutes, section 134.355:

79.14
79.15		$
	2,300,000
2,382,000
	.....
	2014
	
79.16		$
	2,300,000
	.....
	2015
	
79.17 	The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
79.18 	 for 2014.
79.19 	The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
79.20 	 $2,070,000 for 2015.
79.21 	G. EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, 
79.22 	AND LIFELONG LEARNING

79.23 	Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
79.24 		Subd. 3.Early childhood family education aid. For early childhood family 
79.25 	education aid under Minnesota Statutes, section 124D.135:

79.26
79.27		$
	22,078,000
22,797,000
	.....
	2014
	
79.28
79.29		$
	22,425,000
22,001,000
	.....
	2015
	
79.30 	The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
79.31 	 for 2014.
79.32 	The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
79.33 	 $19,803,000 for 2015.

79.34 	Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
80.1 		Subd. 10.Community education aid. For community education aid under 
80.2 	Minnesota Statutes, section 124D.20:

80.3
80.4		$
	935,000
955,000
	.....
	2014
	
80.5
80.6		$
	1,056,000
1,060,000
	.....
	2015
	
80.7 	The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
80.8 	The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
80.9 	 for 2015.

80.10 	Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
80.11 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
80.12 	programs under Minnesota Statutes, section 124D.56:

80.13
80.14		$
	710,000
735,000
	.....
	2014
	
80.15		$
	710,000
	.....
	2015
	
80.16 	The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
80.17 	The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
80.18 	 for 2015.