SF 3551

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 04/21/2026 09:43 a.m.

A bill for an act
relating to education; providing supplemental funding for prekindergarten through
grade 12 education; modifying provisions for prekindergarten through grade 12
education including general education, education excellence, teachers, school
facilities and student safety; making forecast adjustments; requiring reports;
transferring money; appropriating money; amending Minnesota Statutes 2024,
sections 122A.20, subdivisions 1, 2; 123B.63, subdivision 3; 124D.094, subdivision
2; 124D.65, by adding a subdivision; 126C.10, subdivision 14; 126C.15, subdivision
1; 126C.17, subdivision 9; 260E.15; 260E.28, subdivision 1; 275.60; 471.6161,
by adding a subdivision; 609.352, subdivisions 1, 4, by adding subdivisions;
Minnesota Statutes 2025 Supplement, sections 126C.10, subdivision 3; 126C.15,
subdivision 2; 260E.065, by adding a subdivision; 260E.20, subdivision 1; Laws
2023, chapter 55, article 8, section 19, subdivision 5, as amended; Laws 2024,
chapter 115, article 1, section 22, subdivision 2; article 10, section 5, subdivision
2; Laws 2025, First Special Session chapter 10, article 1, section 28, subdivisions
2, 3, 5, 8, 10, 11, 12; article 2, section 24, subdivisions 2, 4, 14, 15, 24; article 3,
section 15, subdivisions 3, 6, 13; article 5, section 19, subdivision 2; article 6,
section 6, subdivisions 2, 7; article 7, section 11, subdivisions 2, 4, 7, 8, 9; article
8, section 18, subdivisions 3, 5, 6; article 9, section 11, subdivisions 2, 3, 4, 6, 10;
article 10, section 10, subdivisions 3, 4, 6; article 11, section 2, subdivisions 2, 4;
proposing coding for new law in Minnesota Statutes, chapter 121A; repealing
Minnesota Statutes 2024, section 120B.30, subdivision 15; Minnesota Statutes
2025 Supplement, section 124F.01.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2024, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

(a) A district may levy the local tax rate
approved by a majority of the electors voting on the question to provide funds for an approved
project. The election must take place no more than five years before the estimated date of
commencement of the project. The referendum must be held on a date authorized by section
205A.05, subdivision 1a. A district must meet the requirements of section 123B.71 for
projects funded under this section. If a review and comment is required under section
123B.71, subdivision 8, a referendum for a project not receiving a positive review and
comment by the commissioner must be approved by at least 60 percent of the voters at the
election.

(b) The referendum may be called by the school board and may be held:

(1) separately, before an election for the issuance of obligations for the project under
chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project under
chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the capital
project levy and the issuance of obligations for the project under chapter 475. Any obligations
authorized for a project may be issued within five years of the date of the election.

(c) The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or negative
review and comment from the commissioner, state the maximum amount of the capital
project levy as a percentage of net tax capacity, state the amount that will be raised by that
local tax rate in the first year it is to be levied, and state the maximum number of years that
the levy authorization will apply.

The ballot must contain a textual portion with the information required in this section
and a question stating substantially the following:

"Shall the capital project levy proposed by the board of .......... School District No. ..........
be approved?"

If approved, the amount provided by the approved local tax rate applied to the net tax
capacity for the year preceding the year the levy is certified may be certified for the number
of years, not to exceed ten, approved.

(d) If the district proposes a new capital project to begin at the time the existing capital
project expires and at the same maximum tax rate, the general description on the ballot may
state that the capital project levy is being renewed and that the tax rate is not being increased
from the previous year's rate. An election to renew authority under this paragraph may be
called at any time that is otherwise authorized by this subdivision. deleted text begin The ballot notice required
under section 275.60 may be modified to read:
deleted text end

deleted text begin "BY VOTING YES ON THIS BALLOT QUESTION, YOU ARE VOTING TO RENEW
AN EXISTING CAPITAL PROJECTS REFERENDUM THAT IS SCHEDULED TO
EXPIRE."
deleted text end

(e) In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

(f) The district must notify the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to elections held on or after September 1, 2026.
new text end

Sec. 2.

Minnesota Statutes 2024, section 124D.65, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Reserve account. new text end

new text begin English learner revenue under subdivisions 5 and 5a must
be maintained in a reserve account within the general fund.
new text end

Sec. 3.

Minnesota Statutes 2025 Supplement, section 126C.10, subdivision 3, is amended
to read:

Subd. 3.

Compensatory education revenue.

(a) A district's compensatory revenue
equals the sum of its compensatory revenue for each building in the district and the amounts
designated under Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision
8, for fiscal year 2017. Revenue shall be paid to the district and must be allocated according
to section 126C.15, subdivision 2.

(b) For fiscal years 2024, 2025, and 2026, the compensatory education revenue for each
building in the district equals the formula allowance minus $839 times the compensation
revenue pupil units computed according to section 126C.05, subdivision 3.

(c) For fiscal year 2027 and later, the compensatory education revenue for each building
in the district equals its compensatory pupils multiplied by the building compensatory
allowance.

(d) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the alternative
program for the prior school year.

(e) When the fiscal agent district for an area learning center changes prior to the start of
a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

(f) Notwithstanding paragraph deleted text begin (c) deleted text end new text begin (b) new text end , for fiscal year 2026, if the sum of the amounts
calculated under paragraph deleted text begin (c) deleted text end new text begin (b) new text end is less than $838,947,000, the commissioner must
proportionately increase the revenue to each building until the total statewide revenue
calculated for each building equals $838,947,000.

(g) Notwithstanding paragraph (c), for fiscal year 2027 and later, if the sum of the
amounts calculated under paragraph (c) is less than $857,152,000, the commissioner must
proportionately increase the revenue to each building until the total statewide revenue
calculated for each building equals $857,152,000.

new text begin (h) Notwithstanding paragraph (c), for fiscal year 2027 only, the compensatory education
revenue for each building equals the greater of:
new text end

new text begin (1) the amount calculated for the building under paragraphs (c) and (g); or
new text end

new text begin (2) the building minimum amount calculated under paragraph (i).
new text end

new text begin (i) For purposes of paragraph (h), the building minimum amount equals the product of:
new text end

new text begin (1) the compensatory education revenue for the building for fiscal year 2026;
new text end

new text begin (2) the lesser of one or the ratio of the number of pupils enrolled in the building on
October 1, 2025, to the number of pupils enrolled in the building on October 1, 2024; and
new text end

new text begin (3) 0.823.
new text end

Sec. 4.

Minnesota Statutes 2024, section 126C.10, subdivision 14, is amended to read:

Subd. 14.

Uses of total operating capital revenue.

Total operating capital revenue may
be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes;

(3) to rent or lease buildings, including the costs of building repair or improvement that
are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school buildings
with permanent attached fixtures, including library media centers and gender-neutral
single-user restrooms, locker room privacy stalls, or other spaces with privacy features,
including single-user shower stalls, changing stalls, or other single-user facilities;

(5) for a surplus school building that is used substantially for a public nonschool purpose;

(6) to eliminate barriers or increase access to school buildings by individuals with a
disability;

(7) to bring school buildings into compliance with the State Fire Code adopted according
to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make
asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel or
transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section
296A.01;

(11) for energy audits for school buildings and to modify buildings if the audit indicates
the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123B.51, subdivision 4;

(13) to pay special assessments levied against school property but not to pay assessments
for service charges;

(14) to pay principal and interest on state loans for energy conservation according to
section 216C.37 or loans made under the Douglas J. Johnson Economic Protection Trust
Fund Act according to sections 298.292 to 298.297;

(15) to purchase or lease interactive telecommunications equipment;

(16) by board resolution, to transfer money into the debt redemption fund to: (i) pay the
amounts needed to meet, when due, principal and interest payments on certain obligations
issued according to chapter 475; or (ii) pay principal and interest on debt service loans or
capital loans according to section 126C.70;

(17) to pay operating capital-related assessments of any entity formed under a cooperative
agreement between two or more districts;

(18) to purchase or lease computers and related hardware, software, and annual licensing
fees, copying machines, telecommunications equipment, and other noninstructional
equipment;

(19) to purchase or lease assistive technology or equipment for instructional programs;

(20) to purchase textbooks as defined in section 123B.41, subdivision 2;

(21) to purchase new and replacement library media resources or technology;

(22) to lease or purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related
equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a
results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required for
students with individualized education programs; and

(iii) other classroom information management needs;

(24) to pay personnel costs directly related to the acquisition, operation, and maintenance
of telecommunications systems, computers, related equipment, and network and applications
software;

(25) to pay the costs directly associated with closing a school facility, including moving
and storage costs;

(26) to pay the costs of supplies and equipment necessary to provide access to menstrual
products at no charge to students in restrooms and as otherwise needed in school facilities;
deleted text begin and
deleted text end

(27) to pay the costs of the opiate antagonists required under section 121A.224 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (28) to pay utility service costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2027 and later.
new text end

Sec. 5.

Minnesota Statutes 2024, section 126C.15, subdivision 1, is amended to read:

Subdivision 1.

Use of revenue.

(a) The deleted text begin basic skills deleted text end new text begin compensatory new text end revenue under section
126C.10, deleted text begin subdivision 4 deleted text end new text begin subdivision 3 new text end , must be reserved and used to meet the educational
needs of pupils who enroll under-prepared to learn and whose progress toward meeting
state or local content or performance standards is below the level that is appropriate for
learners of their age. deleted text begin Basic skills deleted text end new text begin Compensatory new text end revenue may also be used for programs
designed to prepare children and their families for entry into school whether the student
first enrolls in kindergarten or first grade.

deleted text begin (b) For fiscal years prior to fiscal year 2024, any of the following may be provided to
meet these learners' needs:
deleted text end

deleted text begin (1) direct instructional services under the assurance of mastery program according to
section 124D.66;
deleted text end

deleted text begin (2) remedial instruction in reading, language arts, mathematics, other content areas, or
study skills to improve the achievement level of these learners;
deleted text end

deleted text begin (3) additional teachers and teacher aides to provide more individualized instruction to
these learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;
deleted text end

deleted text begin (4) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract with
a community-based organization;
deleted text end

deleted text begin (5) comprehensive and ongoing staff development consistent with district and site plans
according to section 122A.60 and to implement plans under section 120B.12, subdivision
4a, for teachers, teacher aides, principals, and other personnel to improve their ability to
identify the needs of these learners and provide appropriate remediation, intervention,
accommodations, or modifications;
deleted text end

deleted text begin (6) instructional materials, digital learning, and technology appropriate for meeting the
individual needs of these learners;
deleted text end

deleted text begin (7) programs to reduce truancy, encourage completion of high school, enhance
self-concept, provide health services, provide nutrition services, provide a safe and secure
learning environment, provide coordination for pupils receiving services from other
governmental agencies, provide psychological services to determine the level of social,
emotional, cognitive, and intellectual development, and provide counseling services, guidance
services, and social work services;
deleted text end

deleted text begin (8) bilingual programs, bicultural programs, and programs for English learners;
deleted text end

deleted text begin (9) all-day kindergarten;
deleted text end

deleted text begin (10) early education programs, parent-training programs, school readiness programs,
kindergarten programs for four-year-olds, voluntary home visits under section 142D.10,
subdivision 4, and other outreach efforts designed to prepare children for kindergarten;
deleted text end

deleted text begin (11) extended school day and extended school year programs; and
deleted text end

deleted text begin (12) substantial parent involvement in developing and implementing remedial education
or intervention plans for a learner, including learning contracts between the school, the
learner, and the parent that establish achievement goals and responsibilities of the learner
and the learner's parent or guardian.
deleted text end

deleted text begin (c) For fiscal year 2024 and later, deleted text end new text begin (b) new text end A district's deleted text begin basic skills deleted text end new text begin compensatory new text end revenue must
be used for:

(1) remedial instruction and necessary materials in reading, language arts, mathematics,
other content areas, or study skills to improve the achievement level of these learners;

(2) additional teachers and teacher aides to provide more individualized instruction to
these learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;

(3) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract with
a community-based organization;

(4) programs to reduce truancy; provide counseling services, guidance services, and
social work services; and provide coordination for pupils receiving services from other
governmental agencies;

(5) bilingual programs, bicultural programs, and programs for English learners;

(6) early education programs, parent-training programs, early childhood special education,
school readiness programs, kindergarten programs for four-year-olds, voluntary home visits
under section 142D.10, subdivision 4, and other outreach efforts designed to prepare children
for kindergarten;

(7) transition programs operated by school districts for special education students until
the age of 22;

(8) substantial parent involvement in developing and implementing remedial education
or intervention plans for a learner, including learning contracts between the school, the
learner, and the parent that establish achievement goals and responsibilities of the learner
and the learner's parent or guardian; and

(9) professional development for teachers on meeting the needs of English learners,
using assessment tools and data to monitor student progress, and reducing the use of
exclusionary discipline, and training for tutors and staff in extended day programs to enhance
staff's knowledge in content areas.

Sec. 6.

Minnesota Statutes 2025 Supplement, section 126C.15, subdivision 2, is amended
to read:

Subd. 2.

Building allocation.

(a) A district or cooperative must allocate at least 80
percent of its compensatory revenue to each school building in the district or cooperative
where the children who have generated the revenue are served unless the school district or
cooperative has received permission under Laws 2005, First Special Session chapter 5,
article 1, section 50, to allocate compensatory revenue according to student performance
measures developed by the school board.

(b) A district or cooperative may allocate no more than 20 percent of the amount of
compensatory revenue that the district receives to school sites according to a plan adopted
by the school board. The money reallocated under this paragraph must be spent for the
purposes listed in subdivision 1, but may be spent on students in any grade, including
students attending school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means
education site as defined in section 123B.04, subdivision 1.

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue generated
by students served at a cooperative unit shall be paid to the cooperative unit.

(e) A district or cooperative with school building openings, school building closings,
changes in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district or cooperative must report to the department any
adjustments it makes according to this paragraph and the department must use the adjusted
compensatory revenue allocations in preparing the report required under section 123B.76,
subdivision 3, paragraph (c).

(f) For fiscal years 2026 deleted text begin and deleted text end new text begin , new text end 2027 new text begin , and 2028 new text end only, notwithstanding the percentages
specified in paragraphs (a) and (b), a district may allocate up to 40 percent of the amount
of compensatory revenue that the district receives to school sites according to a plan adopted
by the school board, consistent with the purposes listed in subdivision 1.

Sec. 7.

Minnesota Statutes 2024, section 126C.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board. The
referendum must be conducted one or two calendar years before the increased levy authority,
if approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under subdivision 11,
paragraph (a), the referendum must be held on the first Tuesday after the first Monday in
November. The ballot must state the maximum amount of the increased revenue per adjusted
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per adjusted pupil unit that differs from year to year over the number of years for which the
increased revenue is authorized or may state that the amount shall increase annually by the
rate of inflation. For this purpose, the rate of inflation shall be the annual inflationary increase
calculated under subdivision 2, paragraph (b). The ballot may state that existing referendum
levy authority is expiring. In this case, the ballot may also compare the proposed levy
authority to the existing expiring levy authority, and express the proposed increase as the
amount, if any, over the expiring referendum levy authority. The ballot must designate the
specific number of years, not to exceed ten, for which the referendum authorization applies.
The ballot, including a ballot on the question to revoke or reduce the increased revenue
amount under paragraph (c), must abbreviate the term "per adjusted pupil unit" as "per
pupil." deleted text begin The notice required under section 275.60 may be modified to read, in cases of
renewing existing levies at the same amount per pupil as in the previous year:
deleted text end

deleted text begin "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING TO
EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS SCHEDULED
TO EXPIRE."
deleted text end

The ballot may contain a textual portion with the information required in this subdivision
and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of ......., School
District No. .., be approved?"

If approved, an amount equal to the approved revenue per adjusted pupil unit times the
adjusted pupil units for the school year beginning in the year after the levy is certified shall
be authorized for certification for the number of years approved, if applicable, or until
revoked or reduced by the voters of the district at a subsequent referendum.

(b) The board must deliver by mail at least 15 days but no more than 45 days before the
day of the referendum to each taxpayer a notice of the referendum and the proposed revenue
increase. The board need not mail more than one notice to any taxpayer. For the purpose
of giving mailed notice under this subdivision, owners must be those shown to be owners
on the records of the county auditor or, in any county where tax statements are mailed by
the county treasurer, on the records of the county treasurer. Every property owner whose
name does not appear on the records of the county auditor or the county treasurer is deemed
to have waived this mailed notice unless the owner has requested in writing that the county
auditor or county treasurer, as the case may be, include the name on the records for this
purpose. The notice must project the anticipated amount of tax increase in annual dollars
for typical residential homesteads, agricultural homesteads, apartments, and
commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring and
project the anticipated amount of increase over the existing referendum levy in the first
year, if any, in annual dollars for typical residential homesteads, agricultural homesteads,
apartments, and commercial-industrial property within the district.

deleted text begin The notice must include the following statement: "Passage of this referendum will result
in an increase in your property taxes." However, in cases of renewing existing levies, the
notice may include the following statement: "Passage of this referendum extends an existing
operating referendum at the same amount per pupil as in the previous year."
deleted text end

(c) A referendum on the question of revoking or reducing the increased revenue amount
authorized pursuant to paragraph (a) may be called by the board. A referendum to revoke
or reduce the revenue amount must state the amount per adjusted pupil unit by which the
authority is to be reduced. Revenue authority approved by the voters of the district pursuant
to paragraph (a) must be available to the school district at least once before it is subject to
a referendum on its revocation or reduction for subsequent years. Only one revocation or
reduction referendum may be held to revoke or reduce referendum revenue for any specific
year and for years thereafter.

(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(e) At least 15 days before the day of the referendum, the district must submit a copy of
the notice required under paragraph (b) to the commissioner and to the county auditor of
each county in which the district is located. Within 15 days after the results of the referendum
have been certified by the board, or in the case of a recount, the certification of the results
of the recount by the canvassing board, the district must notify the commissioner of the
results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to elections held on or after September 1, 2026.
new text end

Sec. 8.

Minnesota Statutes 2024, section 275.60, is amended to read:

275.60 LEVY OR BOND REFERENDUM; BALLOT NOTICE.

(a) Notwithstanding any general or special law or any charter provisions, deleted text begin but subject to
section 126C.17, subdivision 9, deleted text end any question submitted to the voters by any local
governmental subdivision at a general or special election deleted text begin after June 8, 1995, deleted text end authorizing a
property tax levy or tax rate increase, including the issuance of debt obligations payable in
whole or in part from property taxes, must include on the ballot the following notice in
boldface type:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING FOR A
PROPERTY TAX INCREASE."

(b) For purposes of this section and section 275.61, "local governmental subdivision"
includes counties, home rule and statutory cities, towns, deleted text begin school districts, deleted text end and all special
taxing districts. This statement is in addition to any general or special laws or any charter
provisions that govern the contents of a ballot question and, in the case of a question on the
issuance of debt obligations, may be supplemented by a description of revenues pledged to
payment of the obligations that are intended as the primary source of payment.

deleted text begin (c) This section does not apply to a school district bond election if the debt service
payments are to be made entirely from transfers of revenue from the capital fund to the debt
service fund.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to elections held on or after September 1, 2026.
new text end

Sec. 9.

Laws 2024, chapter 115, article 1, section 22, subdivision 2, is amended to read:

Subd. 2.

Attendance pilot program.

(a) For attendance pilot program aid:

$

4,687,000

.....

2025

(b) Of the amount in paragraph (a), the department must provide aid to the participating
districts in the following amounts:

(1) $1,022,000 for Special School District No. 1, Minneapolis;

(2) $253,000 for Independent School District No. 13, Columbia Heights;

(3) $196,000 for Independent School District No. 38, Red Lake;

(4) $281,000 for Independent School District No. 47, Sauk Rapids-Rice;

(5) $398,000 for Independent School District No. 77, Mankato;

(6) $374,000 for Independent School District No. 152, Moorhead;

(7) $164,000 for Independent School District No. 166, Cook County;

(8) $185,000 for Independent School District No. 177, Windom;

(9) $378,000 for Independent School District No. 191, Burnsville;

(10) $670,000 for Independent School District No. 535, Rochester;

(11) $266,000 for Independent School District No. 659, Northfield; and

(12) $170,000 for Independent School District No. 695, Chisholm.

(c) Up to $330,000 is available for the department to administer the pilot program and
to support attendance data analysis and use.

(d) Aid payments to school districts must be paid 100 percent in fiscal year 2025. Districts
may use the aid in the 2024-2025, 2025-2026, and 2026-2027 school years. If a school
district withdraws from the student attendance pilot program prior to the completion of the
pilot project, the commissioner must proportionately reduce the district's aid amount and
reduce the school district's other aid amounts by that same amount.

(e) This is a onetime appropriation and is available until June 30, deleted text begin 2026 deleted text end new text begin 2027 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10. new text begin SCHOOL DISTRICT FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Ivanhoe Public Schools. new text end

new text begin Notwithstanding Minnesota Statutes, section
123B.79, 123B.80, or 142D.11, subdivision 9, on June 30, 2026, Independent School District
No. 403, Ivanhoe, may permanently transfer up to $68,000 from its early childhood family
education reserve balance in the community service fund to its undesignated balance in the
general fund, provided that the school board approves the transfer.
new text end

new text begin Subd. 2. new text end

new text begin Maple Lake Public Schools. new text end

new text begin Notwithstanding Minnesota Statutes, section
123B.79, 123B.80, or 475.61, subdivision 4, on June 30, 2026, Independent School District
No. 881, Maple Lake Public Schools, may permanently transfer up to $1,800,000 from its
building construction fund to the reserved account for operating capital in the general fund
without making a levy reduction, provided that the school board approves the transfer.
new text end

new text begin Subd. 3. new text end

new text begin Moorhead Area Public Schools. new text end

new text begin (a) Notwithstanding Minnesota Statutes,
section 123B.79, 123B.80, or 124D.20, subdivision 10, on June 30, 2026, Independent
School District No. 152, Moorhead Area Public Schools, may permanently transfer up to
$80,114 from its restricted fund balance in the community service fund to its undesignated
balance in the general fund, provided that the school board approves the transfer.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 123B.595, subdivisions 10, 11, and 12;
123B.79; or 123B.80, on June 30, 2026, Independent School District No. 152, Moorhead
Area Public Schools, may permanently transfer up to $150,388 from its long-term facilities
maintenance reserve account in the general fund to its undesignated balance in the general
fund, provided that the school board approves the transfer.
new text end

new text begin Subd. 4. new text end

new text begin West St. Paul-Mendota Heights-Eagan. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79, 123B.80, or 475.61, subdivision 4, on June 30, 2026, Independent School
District No. 197, West St. Paul-Mendota Heights-Eagan, may permanently transfer up to
$4,500,000 from its building construction fund to the reserve account for operating capital
in the general fund without making a levy reduction, provided that the school board approves
the transfer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11. new text begin APPROPRIATION.
new text end

new text begin $34,879,000 in fiscal year 2027 is appropriated from the general fund to the commissioner
of education for additional general education aid.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2024, section 124D.094, subdivision 2, is amended to read:

Subd. 2.

Digital instruction.

(a) An enrolling district may provide digital instruction,
including blended instruction and online instruction, to the district's own enrolled students.
Enrolling districts may establish agreements to provide digital instruction, including blended
instruction and online instruction, to students enrolled in the cooperating schools.

(b) When online instruction is provided, an online teacher as defined under subdivision
1, paragraph (h), shall perform all duties of teacher of record under Minnesota Rules, part
8710.0310. Unless the commissioner grants a waiver, a teacher providing online instruction
shall not instruct more than 40 students in any one online learning course or section.

(c) Students receiving online instruction full time shall be reported as enrolled in an
online instructional site under subdivision 1, paragraph (g).

(d) Curriculum used for digital instruction shall be aligned with Minnesota's current
academic standards and benchmarks.

(e) Digital instruction shall be accessible to students under sections 504 and 508 of the
federal Rehabilitation Act and Title II of the federal Americans with Disabilities Act.

(f) An enrolling district providing digital instruction and a supplemental online course
provider shall assist an enrolled student whose family qualifies for the education tax credit
under section 290.0674 to acquire computer hardware and educational software so they
may participate in digital instruction. Funds provided to a family to support digital instruction
or supplemental online courses may only be used for qualifying expenses as determined by
the provider. Nonconsumable materials purchased with public education funds remain the
property of the provider. Records for any funds provided must be available for review by
the public or the department.

(g) An enrolling district providing digital instruction shall establish and document
procedures for determining attendance for membership and keep accurate records of daily
attendance under section 120A.21.

new text begin (h) A joint powers cooperative or an intermediate district may provide online instruction
to students from its member districts as authorized under the joint powers cooperative or
intermediate district's board policy. The joint powers cooperative or intermediate district
must notify the resident member district when a student applies or indicates their intent to
enroll in online instruction provided by the joint powers cooperative or intermediate district.
Each student shall be reported as enrolled in the joint powers cooperative or intermediate
district providing instruction.
new text end

Sec. 2.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 4,
is amended to read:

Subd. 4.

College entrance examination reimbursement.

(a) To reimburse districts for
the costs of college entrance examination fees for students who are eligible for free or
reduced-price meals who take the ACT or SAT test under Minnesota Statutes, section
120B.30, subdivision 16:

	$	1,011,000	.....	2026
	$	1,011,000	.....	2027

new text begin (b) Up to $800,000 of funds remaining from this appropriation may be used by the
commissioner of education for college entrance exam reimbursement system updates and
maintenance, provided that districts have been fully reimbursed for college entrance exam
fees. The authority provided to the commissioner under this paragraph is onetime.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Any balance remaining in fiscal year 2026 is available in fiscal year 2027. new text begin Any
balance remaining in fiscal year 2027 is available in fiscal year 2028.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2024, section 120B.30, subdivision 15, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2025 Supplement, section 124F.01, new text end new text begin is repealed.
new text end

ARTICLE 3

TEACHERS

Section 1.

Minnesota Statutes 2024, section 471.6161, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin School districts and charter schools; reports. new text end

new text begin (a) For purposes of this
subdivision, an entity offering or providing group health insurance includes both health
plan companies and third-party administrators of health plans.
new text end

new text begin (b) By July 15, 2026, and July 1 each year thereafter, the Legislative Budget Office must
send an annual survey regarding health insurance costs to all school districts and charter
schools in this state.
new text end

new text begin (c) The annual survey must be completed by the school district or charter school using
data from its most recent plan year, be returned to the Legislative Budget Office by September
1 of each year, and provide the following information about school employees who meet
the definition of public employee under section 179A.03, subdivision 14:
new text end

new text begin (1) the total number of salaried employees;
new text end

new text begin (2) the total number of nonsalaried or hourly employees;
new text end

new text begin (3) for those participating in the group health insurance offered by the school district or
charter school, the total number of people, as of May 1, in each of the following categories:
new text end

new text begin (i) salaried employees;
new text end

new text begin (ii) nonsalaried or hourly employees; and
new text end

new text begin (iii) retirees and any other persons who continue to receive coverage through the school
district's or charter school's health plan after separation from employment;
new text end

new text begin (4) the total number of employees not participating in the health plan;
new text end

new text begin (5) the total number of insured persons covered by the health plan;
new text end

new text begin (6) the total dollar amount the school district or charter school paid in health insurance
premiums on behalf of all employees, not including employee contributions transmitted to
an entity providing group health insurance coverage or payments made on behalf of former
employees;
new text end

new text begin (7) if a school district or charter school funds an individual coverage health reimbursement
arrangement, the total amount contributed by the school district or charter school;
new text end

new text begin (8) the total amount employees paid in health insurance premiums;
new text end

new text begin (9) an accounting of all forms of compensation, either direct or indirect, including but
not limited to fees, commissions, incentives, or rewards of any kind paid to a broker or
agent, regardless of whether it was billed as a flat fee, or percentage of premium and whether
paid directly by the school district or charter school or through the entity offering group
health insurance;
new text end

new text begin (10) the name of any entity providing group health insurance the school district or charter
school has contracted with and the expiration date of the contract;
new text end

new text begin (11) the date range of the most recent plan year;
new text end

new text begin (12) for each type of health plan offered to employees of a school district or charter
school:
new text end

new text begin (i) the name of the plan and its actuarial value, using the minimum value calculator
information required in bid proposals under section 471.6161, subdivision 8, paragraph (d),
clause (2), and described in the Code of Federal Regulations, title 45, section 156.145. The
plan data must also delineate amounts for single, family, and two-party plans, if offered;
new text end

new text begin (ii) the monthly contribution by the school district or charter school for each employee
group per plan, including contributions to individual coverage health reimbursement
arrangements;
new text end

new text begin (iii) the amount per month an employee must pay in health insurance premiums for the
plan; and
new text end

new text begin (iv) the plan design for each type of plan including:
new text end

new text begin (A) in-network deductibles;
new text end

new text begin (B) in-network out-of-pocket limits;
new text end

new text begin (C) out-of-network limits;
new text end

new text begin (D) co-payment;
new text end

new text begin (E) the employee's share of coinsurance; and
new text end

new text begin (F) the prescription annual out of pocket maximum, if separate from subitem (B);
new text end

new text begin (13) the dollar or percentage cost for all prescription levels, commonly generic or tier
1, formulary or tier 2, and nonformulary or tier 3;
new text end

new text begin (14) the total amount of annual contributions, per employee, paid by the school district
or charter school to an individual coverage health reimbursement arrangement or health
savings account, excluding amounts contributed solely to a health care retirement account;
new text end

new text begin (15) the total amount assessed by the entity providing group health insurance as an
administrative fee and the rate of the fee assessed;
new text end

new text begin (16) if a school district is self-insured, the total amount that is in a district set aside health
insurance reserve account; and
new text end

new text begin (17) any additional items as determined by the Legislative Budget Office.
new text end

new text begin (d) The Legislative Budget Office must compile information from the surveys described
above and provide a report by December 1 of each year to the chairs and ranking minority
members of the legislative committees with jurisdiction over education and health insurance.
The Legislative Budget Office must post the report, including the executive summary and
all underlying data received from school districts and charter schools, on its public website.
Data posted on the Legislative Budget Office's website must be in a standardized format.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Laws 2024, chapter 115, article 10, section 5, subdivision 2, is amended to read:

Subd. 2.

Information technology costs.

(a) For information technology costs of the
Professional Educator Licensing and Standards Board:

$

2,767,000

.....

2025

(b) This is a onetime appropriation and is available until June 30, deleted text begin 2027 deleted text end new text begin 2029 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Laws 2025, First Special Session chapter 10, article 3, section 15, subdivision 6,
is amended to read:

Subd. 6.

Educator tuition assistance program.

(a) For the educator tuition assistance
program under Minnesota Statutes, section 122A.635:

	$	4,440,000	.....	2026
	$	4,440,000	.....	2027

(b) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, up to $100,000
of the appropriation in each year is available for grant administration.

(c) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

new text begin (d) These appropriations are available until June 30, 2031.
new text end

new text begin (e) Grant awards must be made by fiscal year 2027.
new text end

Sec. 4. new text begin FUNDING TRANSFER FROM GROW YOUR OWN TO SPECIAL
EDUCATION PATHWAY GRANT.
new text end

new text begin In fiscal year 2027 only, up to $20,000,000 may be transferred from the Grow Your
Own new teacher program account under Minnesota Statutes, section 122A.73, in the special
revenue fund to the special education teacher pathway program account under Minnesota
Statutes, section 122A.77, in the special revenue fund.
new text end

Sec. 5. new text begin ONETIME FUND TRANSFER; PROFESSIONAL EDUCATOR LICENSING
AND STANDARDS BOARD.
new text end

new text begin (a) Notwithstanding any law to the contrary, on June 30, 2026, the Professional Educator
Licensing and Standards Board may permanently transfer any unexpended amount remaining
in the background studies account in the special revenue fund, estimated to be $150,000,
to the board's operating appropriation in the general fund. This is a onetime transfer.
new text end

new text begin (b) The amount transferred under paragraph (a) is appropriated in fiscal year 2026 to
the Professional Educator Licensing and Standards Board for the board's online educator
licensing system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text begin APPROPRIATION; LEGISLATIVE COORDINATING COMMISSION.
new text end

new text begin $18,000 in fiscal year 2026 and $74,000 in fiscal year 2027 are appropriated from the
general fund to the Legislative Coordinating Commission for the Legislative Budget Office
to complete the annual report required by Minnesota Statutes, section 471.6161, subdivision
9. The base for this appropriation is $36,000 in fiscal year 2028 and later.
new text end

Sec. 7. new text begin APPROPRIATION; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sum indicated in this section is
appropriated from the general fund to the Department of Education for the fiscal year
designated.
new text end

new text begin Subd. 2. new text end

new text begin Paraprofessional supports specialist. new text end

new text begin For a paraprofessional supports specialist
at the Department of Education to provide resources, technical assistance, and training for
paraprofessionals, school districts, and charter schools and to monitor implementation of
paraprofessional requirements:
new text end

new text begin $ new text end

new text begin 186,000 new text end

new text begin ..... new text end

new text begin 2027 new text end

ARTICLE 4

SCHOOL FACILITIES AND STUDENT SAFETY

Section 1.

new text begin [121A.036] ANONYMOUS THREAT REPORTING SYSTEM.
new text end

new text begin Subdivision 1. new text end

new text begin Definition; evidence-based. new text end

new text begin For purposes of this section, "evidence-based"
means a program or practice that:
new text end

new text begin (1) demonstrates a statistically significant effect on relevant outcomes based on:
new text end

new text begin (i) strong evidence from at least one well-designed and well-implemented experimental
study;
new text end

new text begin (ii) moderate evidence from at least one well-designed and well-implemented
quasi-experimental study; or
new text end

new text begin (iii) promising evidence from at least one well-designed and well-implemented
correlational study with statistical controls for selection bias; or
new text end

new text begin (2) demonstrates a rationale based on high-quality research findings or positive evaluation
that the program or practice is likely to improve relevant outcomes, and includes ongoing
efforts to examine the effects of the program or practice.
new text end

new text begin Subd. 2. new text end

new text begin Local anonymous threat reporting system. new text end

new text begin (a) A school district or charter
school is encouraged to implement a local anonymous threat reporting system. A local
anonymous threat reporting system must:
new text end

new text begin (1) support anonymous reporting 24 hours a day using a mobile application and a
multilingual crisis center at a minimum;
new text end

new text begin (2) include crisis centers staffed by persons with evidence-based counseling and crisis
intervention training;
new text end

new text begin (3) promptly forward reported information to the appropriate school-based team;
new text end

new text begin (4) support a coordinated response by schools, 911 telecommunicators, and sworn law
enforcement to an identified crisis when response by schools and sworn law enforcement
is to be reasonably expected to ensure public safety and welfare;
new text end

new text begin (5) require and certify the training of a school-based team in each school to receive
notice of any report submitted through the anonymous threat reporting system concerning
the school, school personnel, or an enrolled student;
new text end

new text begin (6) promote public awareness and education about the anonymous threat reporting system
and reporting methods before launching the system;
new text end

new text begin (7) implement an evidence-based student violence prevention training that teaches
students how to identify observable warning signs and signals of an individual who may be
at risk of self-harm, the importance of taking threats seriously and seeking help, and how
to use the anonymous threat reporting system to report a person who is at risk of self-harm;
and
new text end

new text begin (8) comply with data practices under chapter 13 and the Family Educational Rights and
Privacy Act of 1974, United States Code, title 20, section 1232g.
new text end

new text begin (b) A school that implements its own system may enter into a contract to develop and
implement an anonymous threat reporting system that meets the requirements of this
subdivision.
new text end

new text begin (c) In addition to the system requirements under paragraph (a), a third party providing
a local anonymous threat reporting system to a school must establish:
new text end

new text begin (1) a website to educate students on the availability of the anonymous threat reporting
system and provide guidance on how and when to use the system; and
new text end

new text begin (2) a toll-free hotline that can be used to provide anonymous tips regarding dangerous,
violent, threatening, harmful, or potentially harmful activity that occurs or is threatened on
school property or relates to an enrolled student or school personnel.
new text end

new text begin (d) A district or charter school that establishes a local anonymous threat reporting system
must form a school-based team at each school site comprised of at least three school
employees.
new text end

new text begin (e) A nonpublic school may implement a local anonymous threat reporting system but
is not subject to the requirements of this subdivision.
new text end

new text begin (f) A district or charter school must report the following information to the Department
of Education, in the form and manner determined by the commissioner:
new text end

new text begin (1) whether the district or charter school has implemented a local anonymous threat
reporting system, and if so:
new text end

new text begin (i) the third party that provided the system;
new text end

new text begin (ii) contact information for each school-based team; and
new text end

new text begin (iii) the number of reports received through the local anonymous threat reporting system,
how the reports were received, and the number of false reports received; and
new text end

new text begin (2) whether the district or charter school has notified students, families, employees, and
community members with information about the statewide anonymous threat reporting
system under subdivision 3.
new text end

new text begin (g) A school district or charter school that issues an identification card to students must
provide the contact information for the anonymous threat reporting system on the student
identification cards.
new text end

new text begin Subd. 3. new text end

new text begin Statewide anonymous threat reporting system; school requirements. new text end

new text begin (a) A
district or charter school that does not implement its own local anonymous threat reporting
system under subdivision 2 is encouraged to provide to students, families, employees, and
community members information about the Department of Public Safety's statewide
anonymous threat reporting system and how to use the system by:
new text end

new text begin (1) posting on the district's or charter school's website information about the Department
of Public Safety's statewide anonymous threat reporting system;
new text end

new text begin (2) including information in the student handbook about the Department of Public Safety's
statewide anonymous threat reporting system; and
new text end

new text begin (3) notifying parents annually of the availability of the Department of Public Safety's
statewide anonymous threat reporting system.
new text end

new text begin (b) A school district or charter school that does not implement its own local anonymous
threat reporting system and issues an identification card to its students must provide the
contact information for the statewide anonymous threat reporting system on the student
identification cards.
new text end

new text begin Subd. 4. new text end

new text begin Department of Education. new text end

new text begin (a) By September 1, 2027, the Department of
Education must, in collaboration with the Department of Public Safety, provide a list of
third parties that provide anonymous threat reporting systems that meet the requirements
under this section to all schools where a Minnesota resident may fulfill the compulsory
instruction requirements under section 120A.22. The list must include third parties that offer
free or low-cost anonymous threat reporting systems.
new text end

new text begin (b) By January 15, 2029, and each year thereafter, the commissioner of education must
submit a report to the chairs and the ranking minority members of the legislative committees
with jurisdiction over kindergarten through grade 12 education and public safety that includes
the following information:
new text end

new text begin (1) the total number of schools using a local anonymous threat reporting system or the
Department of Public Safety's anonymous threat reporting system;
new text end

new text begin (2) the total number of reports received through a local anonymous threat reporting
system for the preceding school year; and
new text end

new text begin (3) for all reports received through a local anonymous threat reporting system since July
1, 2026, the following information disaggregated by school site:
new text end

new text begin (i) the type of reports received;
new text end

new text begin (ii) the method by which the report was received; and
new text end

new text begin (iii) the number of false reports received.
new text end

new text begin Subd. 5. new text end

new text begin Funding sources. new text end

new text begin (a) A district or charter school may accept funding for an
anonymous threat reporting system from public and private sources, including state or
federal funding, that is available to increase school safety. Acceptance of funding from a
public or private source does not abrogate or modify the anonymous threat reporting system
requirements established under this section.
new text end

new text begin (b) The Department of Education must use existing resources to meet the requirements
under this section.
new text end

Sec. 2.

Minnesota Statutes 2024, section 122A.20, subdivision 1, is amended to read:

Subdivision 1.

Grounds for revocation, suspension, or denial.

(a) The Professional
Educator Licensing and Standards Board or Board of School Administrators, whichever
has jurisdiction over a teacher's licensure, may, on the written complaint of the school board
employing a teacher, a teacher organization, or any other interested person, refuse to issue,
refuse to renew, suspend, or revoke a teacher's license to teach for any of the following
causes:

(1) immoral character or conduct;

(2) failure, without justifiable cause, to teach for the term of the teacher's contract;

(3) gross inefficiency or willful neglect of duty;

(4) failure to meet licensure requirements; or

(5) fraud or misrepresentation in obtaining a license.

The written complaint must specify the nature and character of the charges.

(b) The Professional Educator Licensing and Standards Board or Board of School
Administrators, whichever has jurisdiction over a teacher's licensure, shall refuse to issue,
refuse to renew, or automatically revoke a teacher's license to teach without the right to a
hearing upon receiving a certified copy of a conviction showing that the teacher has been
convicted of child abuse, as defined in section 609.185, sex trafficking in the first degree
under section 609.322, subdivision 1, sex trafficking in the second degree under section
609.322, subdivision 1a, engaging in hiring, or agreeing to hire a minor to engage in
prostitution under section 609.324, subdivision 1, sexual abuse under section 609.342,
609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3, solicitation
of children to engage in sexual conduct or communication of sexually explicit materials to
children new text begin , or grooming new text end under section 609.352, interference with privacy under section 609.746
or harassment or stalking under section 609.749 and the victim was a minor, using minors
in a sexual performance under section 617.246, possessing pornographic works involving
a minor under section 617.247, or any other offense not listed in this paragraph that requires
the person to register as a predatory offender under section 243.166, or a crime under a
similar law of another state or the United States. The board shall send notice of this licensing
action to the district in which the teacher is currently employed.

(c) A person whose license to teach has been revoked, not issued, or not renewed under
paragraph (b), may petition the board to reconsider the licensing action if the person's
conviction for child abuse or sexual abuse is reversed by a final decision of the court of
appeals or the supreme court or if the person has received a pardon for the offense. The
petitioner shall attach a certified copy of the appellate court's final decision or the pardon
to the petition. Upon receiving the petition and its attachment, the board shall schedule and
hold a disciplinary hearing on the matter under section 214.10, subdivision 2, unless the
petitioner waives the right to a hearing. If the board finds that, notwithstanding the reversal
of the petitioner's criminal conviction or the issuance of a pardon, the petitioner is disqualified
from teaching under paragraph (a), clause (1), the board shall affirm its previous licensing
action. If the board finds that the petitioner is not disqualified from teaching under paragraph
(a), clause (1), it shall reverse its previous licensing action.

(d) For purposes of this subdivision, the Professional Educator Licensing and Standards
Board is delegated the authority to suspend or revoke coaching licenses.

Sec. 3.

Minnesota Statutes 2024, section 122A.20, subdivision 2, is amended to read:

Subd. 2.

Mandatory reporting.

(a) A school board, superintendent, charter school
board, charter school executive director, or charter school authorizer must report to the
Professional Educator Licensing and Standards Board, the Board of School Administrators,
or the Board of Trustees of the Minnesota State Colleges and Universities, whichever has
jurisdiction over the teacher's or administrator's license, when its teacher or administrator
is discharged or resigns from employment after a charge is filed with the school board under
section 122A.41, subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7, or after
charges are filed that are grounds for discharge under section 122A.40, subdivision 13,
paragraph (a), clauses (1) to (5), or when a teacher or administrator is suspended or resigns
while an investigation is pending under section 122A.40, subdivision 13, paragraph (a),
clauses (1) to (5), or chapter 260E; or 122A.41, subdivisions 6, clauses (1), (2), and (3),
and 7; or when a teacher or administrator is suspended without an investigation under section
122A.41, subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7, or chapter 260E.
The report must be made to the appropriate licensing board within ten days after the
discharge, suspension, or resignation has occurred. The licensing board to which the report
is made must investigate the report for violation of subdivision 1 and the reporting board,
administrator, or authorizer must cooperate in the investigation. Notwithstanding any
provision in chapter 13 or any law to the contrary, upon written request from the licensing
board having jurisdiction over the license, a board, charter school, authorizer, charter school
executive director, or school superintendent shall provide the licensing board with information
about the teacher or administrator from the district's files, any termination or disciplinary
proceeding, any settlement or compromise, or any investigative file. Upon written request
from the appropriate licensing board, a board or school superintendent may, at the discretion
of the board or school superintendent, solicit the written consent of a student and the student's
parent to provide the licensing board with information that may aid the licensing board in
its investigation and license proceedings. The licensing board's request need not identify a
student or parent by name. The consent of the student and the student's parent must meet
the requirements of chapter 13 and Code of Federal Regulations, title 34, section 99.30.
The licensing board may provide a consent form to the district. Any data transmitted to any
board under this section is private data under section 13.02, subdivision 12, notwithstanding
any other classification of the data when it was in the possession of any other agency.

(b) The licensing board to which a report is made must transmit to the Attorney General's
Office any record or data it receives under this subdivision for the sole purpose of having
the Attorney General's Office assist that board in its investigation. When the Attorney
General's Office has informed an employee of the appropriate licensing board in writing
that grounds exist to suspend or revoke a teacher's license to teach, that licensing board
must consider suspending or revoking or decline to suspend or revoke the teacher's or
administrator's license within 45 days of receiving a stipulation executed by the teacher or
administrator under investigation or a recommendation from an administrative law judge
that disciplinary action be taken.

(c) The Professional Educator Licensing and Standards Board and Board of School
Administrators must report to the appropriate law enforcement authorities a revocation,
suspension, or agreement involving a loss of license, relating to a teacher or administrator's
inappropriate sexual conduct with a minor. For purposes of this section, "law enforcement
authority" means a police department, county sheriff, or Tribal police department. A report
by the Professional Educator Licensing and Standards Board to appropriate law enforcement
authorities does not diminish, modify, or otherwise affect the responsibilities of a school
board or any person mandated to report abuse under chapter 260E.

new text begin (d) A police department or county sheriff must notify the appropriate licensing board
when a teacher is criminally charged with an offense listed in subdivision 1, paragraph (b),
or is charged with any other offense not listed in this section that requires the person to
register as a predatory offender under section 243.166.
new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 260E.065, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Commissioner of children, youth, and families; education-related mandated
reporter training module on grooming. new text end

new text begin (a) By August 1, 2027, the commissioner of
children, youth, and families must update the existing mandated reporter training that is
specifically applicable to professionals or professionals' delegates engaged in education, to
include but not be limited to:
new text end

new text begin (1) the requirement to report allegations of maltreatment involving students ages 18
through 21, including students receiving special education services, up to and including
graduation and the issuance of a secondary or high school diploma; and
new text end

new text begin (2) addressing grooming and threatened sexual abuse, including the duty to report
grooming as maltreatment under section 260E.06, and how to identify the signs of grooming.
new text end

new text begin (b) The commissioner must consult with the Department of Education while updating
the training.
new text end

Sec. 5.

Minnesota Statutes 2024, section 260E.15, is amended to read:

260E.15 SCREENING GUIDELINES.

(a) Child protection staff, supervisors, and others involved in child protection screening
shall follow the guidance provided in the maltreatment screening guidelines issued by the
commissioner and, when notified by the commissioner, shall immediately implement updated
procedures and protocols.

(b) Any modification to the screening guidelines must be preapproved by the
commissioner and must not be less protective of children than is mandated by statute. The
county agency must consult with the county attorney before proposing modifications to the
commissioner. The guidelines may provide additional protection for children but must not
limit reports that are screened in or provide additional limits on consideration of reports
that were screened out in making a screening determination.

new text begin (c) The screening guidelines issued by the commissioner must not limit an agency's
ability to screen in and investigate a report of alleged maltreatment that occurred more than
three years prior to the date of the report.
new text end

Sec. 6.

Minnesota Statutes 2025 Supplement, section 260E.20, subdivision 1, is amended
to read:

Subdivision 1.

General duties.

(a) The local welfare agency shall offer services to
prevent future maltreatment, safeguarding and enhancing the welfare of the maltreated child,
and supporting and preserving family life whenever possible.

(b) If the report alleges a violation of a criminal statute involving maltreatment or child
endangerment under section 609.378, the local law enforcement agency and local welfare
agency shall coordinate the planning and execution of their respective investigation and
assessment efforts to avoid a duplication of fact-finding efforts and multiple interviews.
Each agency shall prepare a separate report of the results of the agency's investigation or
assessment.

(c) In cases of alleged child maltreatment resulting in death, the local agency may rely
on the fact-finding efforts of a law enforcement investigation to make a determination of
whether or not maltreatment occurred.

(d) When necessary, the local welfare agency shall seek authority to remove the child
from the custody of a parent, guardian, or adult with whom the child is living.

(e) In performing any of these duties, the local welfare agency shall maintain an
appropriate record.

(f) In conducting a family assessment, noncaregiver human trafficking assessment, or
investigation, the local welfare agency shall gather information on the existence of substance
abuse and domestic violence.

(g) If the family assessment, noncaregiver human trafficking assessment, or investigation
indicates there is a potential for abuse of alcohol or other drugs by the parent, guardian, or
person responsible for the child's care, the local welfare agency must coordinate a
comprehensive assessment pursuant to section 245G.05.

(h) The agency may use either a family assessment or investigation to determine whether
the child is safe when responding to a report resulting from birth match data under section
260E.03, subdivision 23, paragraph (c). If the child subject of birth match data is determined
to be safe, the agency shall consult with the county attorney to determine the appropriateness
of filing a petition alleging the child is in need of protection or services under section
260C.007, subdivision 6, clause (16), in order to deliver needed services. If the child is
determined not to be safe, the agency and the county attorney shall take appropriate action
as required under section 260C.503, subdivision 2.

(i) When conducting any family assessment, noncaregiver human trafficking assessment,
or investigation, the agency shall ask the child, if age appropriate; parents; extended family;
and reporter about the child's heritage, including the child's Tribal lineage pursuant to section
260.761 and the child's race, culture, and ethnicity pursuant to section 260.63, subdivision
10.

new text begin (j) Nothing in this chapter shall prevent a local welfare agency or local law enforcement
agency from investigating alleged maltreatment that occurred more than three years prior
to the date of the maltreatment report.
new text end

Sec. 7.

Minnesota Statutes 2024, section 260E.28, subdivision 1, is amended to read:

Subdivision 1.

Immediate investigation for alleged maltreatment in a facility.

(a)
The commissioner of human services; children, youth, and families; health; or education,
whichever is responsible for investigating the report, shall immediately investigate if the
report alleges that:

(1) a child who is in the care of a facility as defined in section 260E.03 is the victim of
maltreatment in a facility by an individual in that facility or has been the victim of
maltreatment in a facility by an individual in that facility within the three years preceding
the report; or

(2) a child is the victim of maltreatment in a facility by an individual in a facility defined
in section 260E.03, subdivision 6, while in the care of that facility within the three years
preceding the report.

(b) The commissioner of the agency responsible for investigating the report shall arrange
for the transmittal to the commissioner of reports received by local agencies and may delegate
to a local welfare agency the duty to investigate reports. The commissioner of the agency
responsible for investigating the report or local welfare agency may interview any children
who are or have been in the care of a facility under investigation and the children's parents,
guardians, or legal custodians.

(c) In conducting an investigation under this section, the commissioner has the powers
and duties specified for a local welfare agency under this chapter.

new text begin (d) Nothing in this chapter shall prevent the agency responsible for screening and
investigating allegations of maltreatment from investigating alleged maltreatment that
occurred more than three years prior to the date of the maltreatment report.
new text end

Sec. 8.

Minnesota Statutes 2024, section 609.352, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section:

(a) "child" means a person 15 years of age or younger;

new text begin (b) "pattern" means two or more instances of conduct;
new text end

deleted text begin (b) deleted text end new text begin (c) new text end "sexual conduct" means sexual contact of the individual's primary genital area,
sexual penetration as defined in section 609.341, or sexual performance as defined in section
617.246; and

deleted text begin (c) deleted text end new text begin (d) new text end "solicit" means commanding, entreating, or attempting to persuade a specific
person in person, by telephone, by letter, or by computerized or other electronic means.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 9.

Minnesota Statutes 2024, section 609.352, is amended by adding a subdivision to
read:

new text begin Subd. 2c. new text end

new text begin Grooming. new text end

new text begin (a) A person 18 years of age or older commits the felony offense
of grooming, and may be sentenced as provided in subdivision 4, if the person:
new text end

new text begin (1) expresses the desire or intent to engage in sexual conduct with a child; and
new text end

new text begin (2) engages in a deliberate pattern of conduct to methodically develop a false trusting
relationship with the child that is intended to strategically manipulate the child to engage
in sexual conduct with the person at a future time, regardless of whether any sexual conduct
occurs.
new text end

new text begin (b) For purposes of this subdivision, a deliberate pattern of conduct may include but is
not limited to:
new text end

new text begin (1) communications or conversations sharing desires about sexual intimacy or sexual
contact between the person and the child;
new text end

new text begin (2) normalizing sexualized physical conduct or attempts to initiate such conduct;
new text end

new text begin (3) watching the child undress or appearing undressed in front of the child; or
new text end

new text begin (4) use of threats or control in an attempt to ensure secrecy or compliance from the child.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 10.

Minnesota Statutes 2024, section 609.352, is amended by adding a subdivision
to read:

new text begin Subd. 2d. new text end

new text begin Violations by persons in positions of authority. new text end

new text begin A person who commits any
of the acts described in subdivisions 2 through 2c is guilty of a felony if:
new text end

new text begin (1) the person is in a current or recent position of authority, as defined in section 609.341,
subdivision 10, over the victim;
new text end

new text begin (2) the person is more than 36 months older than the victim; and
new text end

new text begin (3) the victim is under the age of 18 years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 11.

Minnesota Statutes 2024, section 609.352, is amended by adding a subdivision
to read:

new text begin Subd. 2e. new text end

new text begin School violations. new text end

new text begin A person who commits any of the acts described in
subdivisions 2 through 2c is guilty of a felony if:
new text end

new text begin (1) the person is a licensed educator employed or contracted to provide service for an
elementary, middle, or secondary school; and
new text end

new text begin (2) the victim, regardless of age, is enrolled as a student at the school.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 12.

Minnesota Statutes 2024, section 609.352, subdivision 4, is amended to read:

Subd. 4.

Penalty.

A person convicted under subdivision 2 deleted text begin or deleted text end new text begin , new text end 2a new text begin , 2c, 2d, or 2e new text end is guilty
of a felony and may be sentenced to imprisonment for not more than five years, or to payment
of a fine of not more than $10,000, or both.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2026, and applies to crimes
committed on or after that date.
new text end

Sec. 13.

Laws 2023, chapter 55, article 8, section 19, subdivision 5, as amended by Laws
2024, chapter 115, article 8, section 4, is amended to read:

Subd. 5.

Grants for gender-neutral single-user restrooms.

(a) For grants to school
districts for remodeling, constructing, or repurposing space for gender-neutral single-user
restrooms:

	$	1,000,000	.....	2024
	$	1,000,000	.....	2025

(b) A school district or a cooperative unit under Minnesota Statutes, section 123A.24,
subdivision 2, may apply for a grant of not more than $75,000 per site under this subdivision
in the form and manner specified by the commissioner. The commissioner must award at
least one grant under this subdivision to Independent School District No. 709, Duluth, for
a demonstration grant for a project awaiting construction.

(c) The commissioner must ensure that grants are awarded to schools to reflect the
geographic diversity of the state.

(d) Up to $75,000 each year is available for grant administration and monitoring.

(e) By February 1 of each year, the commissioner must annually report to the committees
of the legislature with jurisdiction over education on the number of grants that were awarded
each year and the number of grant applications that were unfunded during that year.

(f) Any balance in the first year does not cancel but is available in the second year.

new text begin (g) These appropriations are available until June 30, 2029.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Laws 2025, First Special Session chapter 10, article 8, section 18, subdivision 5,
is amended to read:

Subd. 5.

Grants for gender-neutral single-user restrooms.

(a) For grants to school
districts for remodeling, constructing, or repurposing space for gender-neutral single-user
restrooms:

	$	1,000,000	.....	2026
	$	1,000,000	.....	2027

(b) A school district or a cooperative unit under Minnesota Statutes, section 123A.24,
subdivision 2, may apply for a grant of not more than $75,000 per site under this subdivision
in the form and manner specified by the commissioner.

(c) The commissioner must ensure that grants are awarded to schools to reflect the
geographic diversity of the state.

(d) Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, up to $75,000
of the appropriation in each year is available for grant administration.

(e) By February 1 of each new text begin even-numbered new text end year, the commissioner must deleted text begin annually deleted text end report
to the legislative committees with jurisdiction over kindergarten through grade 12 education
on the number of grants that were awarded each year and the number of grant applications
that were unfunded each year.

(f) Any balance remaining in fiscal year 2026 is available in fiscal year 2027.

new text begin (g) These appropriations are available until June 30, 2031.
new text end

Sec. 15. new text begin APPROPRIATION; SCHOOL SAFETY AID AND GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin School safety aid. new text end

new text begin For fiscal year 2027 only, the school safety aid for a
school district, charter school, intermediate district or other cooperative unit, or American
Indian Tribal contract school eligible for aid under Minnesota Statutes, section 124D.83,
equals $44 times the number of pupils enrolled in the school on October 1, 2025.
new text end

new text begin Subd. 2. new text end

new text begin Nonpublic schools; grants. new text end

new text begin (a) A nonpublic school may apply for a school
safety grant in the form and manner determined by the commissioner of education. For
purposes of this section, "nonpublic school" has the meaning given in Minnesota Statutes,
section 123B.41, subdivision 9, excluding a home school.
new text end

new text begin (b) The commissioner must prioritize grant awards to nonpublic schools with lower
fiscal capacity, according to criteria developed by the commissioner.
new text end

new text begin (c) The commissioner must make grant awards no later than June 30, 2027.
new text end

new text begin Subd. 3. new text end

new text begin Eligible uses. new text end

new text begin Aid or grant funds awarded under this section may be used for
any purpose authorized for the use of safe schools revenue under Minnesota Statutes, section
126C.44, subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) One hundred percent of the school safety aid must be paid
in fiscal year 2027 on a schedule determined by the commissioner.
new text end

new text begin (b) For a charter school in the first year of operation, the commissioner of education
must calculate aid under subdivision 1 using the school's enrollment for the current fiscal
year.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin (a) By January 15, 2028, the commissioner must make a preliminary
report to the legislative committees with jurisdiction over kindergarten through grade 12
education on the grants awarded to nonpublic schools under this section. The report must
detail the recipient, amount, and intended use of each grant.
new text end

new text begin (b) By January 15, 2030, the commissioner must make a final report to the legislative
committees with jurisdiction over kindergarten through grade 12 education on the grants
awarded to nonpublic schools under this section. The report must detail the recipient, amount,
and reported use of each grant.
new text end

new text begin (c) The reports must be filed according to Minnesota Statutes, section 3.195.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin (a) $38,312,000 in fiscal year 2027 is appropriated from the
general fund to the commissioner of education for school safety aid under subdivision 1.
This is a onetime appropriation.
new text end

new text begin (b) $1,688,000 in fiscal year 2027 is appropriated from the general fund to the
commissioner of education for school safety grants to nonpublic schools under subdivision
2. This is a onetime appropriation and is available until June 30, 2029. Notwithstanding
Minnesota Statutes, section 16B.98, subdivision 14, up to five percent of the appropriation
is available for grant administration.
new text end

ARTICLE 5

FORECAST ADJUSTMENTS

Section 1.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision
2, is amended to read:

Subd. 2.

General education aid.

(a) For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:

	$	deleted text begin 8,509,608,000 deleted text end new text begin 8,550,641,000 new text end	.....	2026
	$	deleted text begin 8,765,730,000 deleted text end new text begin 8,774,520,000 new text end	.....	2027

(b) The 2026 appropriation includes $783,251,000 for 2025 and deleted text begin $7,726,357,000 deleted text end new text begin
$7,767,390,000 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $807,134,000 deleted text end new text begin $802,177,000 new text end for 2026 and
deleted text begin $7,958,596,000 deleted text end new text begin $7,972,343,000 new text end for 2027.

Sec. 2.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 3,
is amended to read:

Subd. 3.

Abatement aid.

(a) For abatement aid under Minnesota Statutes, section
127A.49:

	$	deleted text begin 1,929,000 deleted text end new text begin 1,262,000 new text end	.....	2026
	$	deleted text begin 2,340,000 deleted text end new text begin 1,231,000 new text end	.....	2027

(b) The 2026 appropriation includes $140,000 for 2025 and deleted text begin $1,789,000 deleted text end new text begin $1,122,000 new text end for
2026.

(c) The 2027 appropriation includes deleted text begin $198,000 deleted text end new text begin $124,000 new text end for 2026 and deleted text begin $2,142,000 deleted text end new text begin
$1,107,000 new text end for 2027.

Sec. 3.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 5,
is amended to read:

Subd. 5.

Career and technical aid.

(a) For career and technical aid under Minnesota
Statutes, section 124D.4531, subdivision 1b:

	$	deleted text begin 451,000 deleted text end new text begin 505,000 new text end	.....	2026
	$	deleted text begin 350,000 deleted text end new text begin 432,000 new text end	.....	2027

(b) The 2026 appropriation includes $85,000 for 2025 and deleted text begin $366,000 deleted text end new text begin $420,000 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $40,000 deleted text end new text begin $46,000 new text end for 2026 and deleted text begin $310,000 deleted text end new text begin $386,000 new text end
for 2027.

Sec. 4.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 8,
is amended to read:

Subd. 8.

Consolidation transition aid.

(a) For consolidation transition aid under
Minnesota Statutes, section 123A.485:

	$	deleted text begin 572,000 deleted text end new text begin -0- new text end	.....	2026
	$	deleted text begin 350,000 deleted text end new text begin 693,000 new text end	.....	2027

(b) The 2026 appropriation includes $0 for 2025 and deleted text begin $572,000 deleted text end new text begin $0 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $64,000 deleted text end new text begin $0 new text end for 2026 and deleted text begin $286,000 deleted text end new text begin $693,000 new text end for
2027.

Sec. 5.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 10,
is amended to read:

Subd. 10.

Enrollment options transportation.

For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

	$	deleted text begin 25,000 deleted text end new text begin 23,000 new text end	.....	2026
	$	deleted text begin 27,000 deleted text end new text begin 24,000 new text end	.....	2027

Sec. 6.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 11,
is amended to read:

Subd. 11.

Nonpublic pupil education aid.

(a) For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

	$	deleted text begin 25,349,000 deleted text end new text begin 24,188,000 new text end	.....	2026
	$	deleted text begin 27,160,000 deleted text end new text begin 24,879,000 new text end	.....	2027

(b) The 2026 appropriation includes $2,355,000 for 2025 and deleted text begin $22,994,000 deleted text end new text begin $21,833,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $2,554,000 deleted text end new text begin $2,425,000 new text end for 2026 and deleted text begin $24,606,000 deleted text end new text begin
$22,454,000 new text end for 2027.

Sec. 7.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 12,
is amended to read:

Subd. 12.

Nonpublic pupil transportation aid.

(a) For nonpublic pupil transportation
aid under Minnesota Statutes, section 123B.92, subdivision 9:

	$	deleted text begin 28,123,000 deleted text end new text begin 28,985,000 new text end	.....	2026
	$	deleted text begin 29,359,000 deleted text end new text begin 32,270,000 new text end	.....	2027

(b) The 2026 appropriation includes $2,609,000 for 2025 and deleted text begin $25,514,000 deleted text end new text begin $26,376,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $2,834,000 deleted text end new text begin $2,930,000 new text end for 2026 and deleted text begin $26,525,000 deleted text end new text begin
$29,340,000 new text end for 2027.

Sec. 8.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 2,
is amended to read:

Subd. 2.

Achievement and integration aid.

(a) For achievement and integration aid
under Minnesota Statutes, section 124D.862:

	$	deleted text begin 85,619,000 deleted text end new text begin 85,232,000 new text end	.....	2026
	$	deleted text begin 85,222,000 deleted text end new text begin 87,576,000 new text end	.....	2027

(b) The 2026 appropriation includes $8,446,000 for 2025 and deleted text begin $77,173,000 deleted text end new text begin $76,786,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $8,575,000 deleted text end new text begin $8,690,000 new text end for 2026 and deleted text begin $76,647,000 deleted text end new text begin
$78,886,000 new text end for 2027.

Sec. 9.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 14,
is amended to read:

Subd. 14.

Interdistrict desegregation or integration transportation grants.

For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

	$	deleted text begin 16,396,000 deleted text end new text begin 15,918,000 new text end	.....	2026
	$	deleted text begin 18,157,000 deleted text end new text begin 17,628,000 new text end	.....	2027

Sec. 10.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision
15, is amended to read:

Subd. 15.

Literacy aid.

(a) For literacy aid under Minnesota Statutes, section 124D.98:

	$	deleted text begin 40,686,000 deleted text end new text begin 40,106,000 new text end	.....	2026
	$	deleted text begin 40,897,000 deleted text end new text begin 40,799,000 new text end	.....	2027

(b) The 2026 appropriation includes $4,057,000 for 2025 and deleted text begin $36,629,000 deleted text end new text begin $36,049,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $4,069,000 deleted text end new text begin $4,005,000 new text end for 2026 and deleted text begin $36,828,000 deleted text end new text begin
$36,794,000 new text end for 2027.

Sec. 11.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision
24, is amended to read:

Subd. 24.

Paraprofessional training.

(a) For compensation associated with paid
orientation and professional development for paraprofessionals under Minnesota Statutes,
section 121A.642:

	$	deleted text begin 4,721,000 deleted text end new text begin 4,141,000 new text end	.....	2026
	$	deleted text begin 5,000,000 deleted text end new text begin 4,935,000 new text end	.....	2027

(b) The 2026 appropriation includes $221,000 for 2025 and deleted text begin $4,500,000 deleted text end new text begin $3,920,000 new text end for
2026.

(c) The 2027 appropriation includes deleted text begin $500,000 deleted text end new text begin $435,000 new text end for 2026 and $4,500,000 for
2027.

Sec. 12.

Laws 2025, First Special Session chapter 10, article 3, section 15, subdivision 3,
is amended to read:

Subd. 3.

Alternative teacher compensation aid.

(a) For alternative teacher compensation
aid under Minnesota Statutes, section 122A.415, subdivision 4:

	$	deleted text begin 88,717,000 deleted text end new text begin 88,756,000 new text end	.....	2026
	$	deleted text begin 87,942,000 deleted text end new text begin 88,744,000 new text end	.....	2027

(b) The 2026 appropriation includes $8,814,000 for fiscal year 2025 and deleted text begin $79,903,000 deleted text end new text begin
$79,942,000 new text end for fiscal year 2026.

(c) The 2027 appropriation includes deleted text begin $8,878,000 deleted text end new text begin $8,882,000 new text end for fiscal year 2026 and
deleted text begin $79,064,000 deleted text end new text begin $79,862,000 new text end for fiscal year 2027.

Sec. 13.

Laws 2025, First Special Session chapter 10, article 3, section 15, subdivision
13, is amended to read:

Subd. 13.

Student support personnel aid.

(a) For student support personnel aid under
Minnesota Statutes, section 124D.901:

	$	deleted text begin 44,950,000 deleted text end new text begin 44,869,000 new text end	.....	2026
	$	deleted text begin 45,772,000 deleted text end new text begin 45,806,000 new text end	.....	2027

(b) The 2026 appropriation includes $3,655,000 for fiscal year 2025 and deleted text begin $41,295,000 deleted text end new text begin
$41,214,000 new text end for fiscal year 2026.

(c) The 2027 appropriation includes deleted text begin $4,588,000 deleted text end new text begin $4,579,000 new text end for fiscal year 2026 and
deleted text begin $41,184,000 deleted text end new text begin $41,227,000 new text end for fiscal year 2027.

Sec. 14.

Laws 2025, First Special Session chapter 10, article 5, section 19, subdivision 2,
is amended to read:

Subd. 2.

Charter school building lease aid.

(a) For building lease aid under Minnesota
Statutes, section 124E.22:

	$	deleted text begin 96,453,000 deleted text end new text begin 97,089,000 new text end	.....	2026
	$	deleted text begin 99,135,000 deleted text end new text begin 99,721,000 new text end	.....	2027

(b) The 2026 appropriation includes $9,391,000 for 2025 and deleted text begin $87,062,000 deleted text end new text begin $87,698,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $9,673,000 deleted text end new text begin $9,744,000 new text end for 2026 and deleted text begin $89,462,000 deleted text end new text begin
$89,977,000 new text end for 2027.

Sec. 15.

Laws 2025, First Special Session chapter 10, article 6, section 6, subdivision 2,
is amended to read:

Subd. 2.

American Indian education aid.

(a) For American Indian education aid under
Minnesota Statutes, section 124D.81, subdivision 2a:

	$	deleted text begin 20,646,000 deleted text end new text begin 20,739,000 new text end	.....	2026
	$	deleted text begin 21,548,000 deleted text end new text begin 21,593,000 new text end	.....	2027

(b) The 2026 appropriation includes $1,973,000 for 2025 and deleted text begin $18,673,000 deleted text end new text begin $18,766,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $2,074,000 deleted text end new text begin $2,085,000 new text end for 2026 and deleted text begin $19,474,000 deleted text end new text begin
$19,508,000 new text end for 2027.

Sec. 16.

Laws 2025, First Special Session chapter 10, article 6, section 6, subdivision 7,
is amended to read:

Subd. 7.

Tribal contract school aid.

(a) For Tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	deleted text begin 2,313,000 deleted text end new text begin 1,415,000 new text end	.....	2026
	$	deleted text begin 2,554,000 deleted text end new text begin 1,895,000 new text end	.....	2027

(b) The 2026 appropriation includes $221,000 for 2025 and deleted text begin $2,092,000 deleted text end new text begin $1,194,000 new text end for
2026.

(c) The 2027 appropriation includes deleted text begin $232,000 deleted text end new text begin $132,000 new text end for 2026 and deleted text begin $2,322,000 deleted text end new text begin
$1,763,000 new text end for 2027.

Sec. 17.

Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 2,
is amended to read:

Subd. 2.

Aid for children with disabilities.

(a) For aid under Minnesota Statutes, section
125A.75, subdivision 3, for children with disabilities placed in residential facilities within
district boundaries for whom no district of residence can be determined:

	$	deleted text begin 2,240,000 deleted text end new text begin 1,944,000 new text end	.....	2026
	$	deleted text begin 2,570,000 deleted text end new text begin 2,310,000 new text end	.....	2027

(b) If the appropriation for either year is insufficient, the appropriation for the other year
is available.

Sec. 18.

Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 4,
is amended to read:

Subd. 4.

Court-placed special education revenue.

For reimbursing serving school
districts for unreimbursed eligible expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

	$	deleted text begin 41,000 deleted text end new text begin -0- new text end	.....	2026
	$	42,000	.....	2027

Sec. 19.

Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 7,
is amended to read:

Subd. 7.

Special education; regular.

(a) For special education aid under Minnesota
Statutes, section 125A.76:

	$	deleted text begin 2,775,484,000 deleted text end new text begin 2,845,456,000 new text end	.....	2026
	$	deleted text begin 3,017,316,000 deleted text end new text begin 3,169,149,000 new text end	.....	2027

(b) The 2026 appropriation includes $322,670,000 for 2025 and deleted text begin $2,452,814,000 deleted text end new text begin
$2,522,786,000 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $345,285,000 deleted text end new text begin $355,135,000 new text end for 2026 and
deleted text begin $2,672,031,000 deleted text end new text begin $2,814,014,000 new text end for 2027.

Sec. 20.

Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 8,
is amended to read:

Subd. 8.

Special education separate sites and programs.

(a) For aid for special
education separate sites and programs under Minnesota Statutes, section 125A.81, subdivision
4:

	$	deleted text begin 4,470,000 deleted text end new text begin 4,542,000 new text end	.....	2026
	$	deleted text begin 4,695,000 deleted text end new text begin 4,778,000 new text end	.....	2027

(b) The 2026 appropriation includes $427,000 for 2025 and deleted text begin $4,043,000 deleted text end new text begin $4,115,000 new text end for
2026.

(c) The 2027 appropriation includes deleted text begin $449,000 deleted text end new text begin $457,000 new text end for 2026 and deleted text begin $4,246,000 deleted text end new text begin
$4,321,000 new text end for 2027.

Sec. 21.

Laws 2025, First Special Session chapter 10, article 7, section 11, subdivision 9,
is amended to read:

Subd. 9.

Travel for home-based services.

(a) For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	deleted text begin 488,000 deleted text end new text begin 439,000 new text end	.....	2026
	$	deleted text begin 538,000 deleted text end new text begin 477,000 new text end	.....	2027

(b) The 2026 appropriation includes $44,000 for 2025 and deleted text begin $444,000 deleted text end new text begin $395,000 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $49,000 deleted text end new text begin $43,000 new text end for 2026 and deleted text begin $489,000 deleted text end new text begin $434,000 new text end
for 2027.

Sec. 22.

Laws 2025, First Special Session chapter 10, article 8, section 18, subdivision 3,
is amended to read:

Subd. 3.

Debt service equalization aid.

(a) For debt service equalization aid under
Minnesota Statutes, section 123B.53, subdivision 6:

	$	16,218,000	.....	2026
	$	deleted text begin 14,327,000 deleted text end new text begin 16,034,000 new text end	.....	2027

(b) The 2026 appropriation includes $1,986,000 for 2025 and $14,232,000 for 2026.

(c) The 2027 appropriation includes $1,581,000 for 2026 and deleted text begin $12,746,000 deleted text end new text begin $14,453,000 new text end
for 2027.

Sec. 23.

Laws 2025, First Special Session chapter 10, article 8, section 18, subdivision 6,
is amended to read:

Subd. 6.

Long-term facilities maintenance equalized aid.

(a) For long-term facilities
maintenance equalized aid under Minnesota Statutes, section 123B.595, subdivision 9:

	$	deleted text begin 97,104,000 deleted text end new text begin 97,124,000 new text end	.....	2026
	$	deleted text begin 97,910,000 deleted text end new text begin 97,373,000 new text end	.....	2027

(b) The 2026 appropriation includes $10,719,000 for 2025 and deleted text begin $86,385,000 deleted text end new text begin $86,405,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $9,597,000 deleted text end new text begin $9,600,000 new text end for 2026 and deleted text begin $88,313,000 deleted text end new text begin
$87,773,000 new text end for 2027.

Sec. 24.

Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 2,
is amended to read:

Subd. 2.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

	$	deleted text begin 387,000 deleted text end new text begin 335,000 new text end	.....	2026
	$	deleted text begin 387,000 deleted text end new text begin 335,000 new text end	.....	2027

Sec. 25.

Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 3,
is amended to read:

Subd. 3.

School breakfast.

For school breakfast aid under Minnesota Statutes, section
124D.1158:

	$	deleted text begin 57,642,000 deleted text end new text begin 55,535,000 new text end	.....	2026
	$	deleted text begin 60,413,000 deleted text end new text begin 58,520,000 new text end	.....	2027

Sec. 26.

Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 4,
is amended to read:

Subd. 4.

School lunch.

For school lunch aid under Minnesota Statutes, section 124D.111,
including the amounts for the free school meals program:

	$	deleted text begin 264,162,000 deleted text end new text begin 254,884,000 new text end	.....	2026
	$	deleted text begin 276,392,000 deleted text end new text begin 268,160,000 new text end	.....	2027

Sec. 27.

Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision 6,
is amended to read:

Subd. 6.

Basic system support.

(a) For basic system support aid under Minnesota
Statutes, section 134.355:

	$	deleted text begin 17,995,000 deleted text end new text begin 17,954,000 new text end	.....	2026
	$	deleted text begin 18,372,000 deleted text end new text begin 18,438,000 new text end	.....	2027

(b) The 2026 appropriation includes $1,752,000 for 2025 and deleted text begin $16,243,000 deleted text end new text begin $16,202,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $1,804,000 deleted text end new text begin $1,800,000 new text end for 2026 and deleted text begin $16,568,000 deleted text end new text begin
$16,638,000 new text end for 2027.

Sec. 28.

Laws 2025, First Special Session chapter 10, article 9, section 11, subdivision
10, is amended to read:

Subd. 10.

School library aid.

(a) For school library aid under Minnesota Statutes, section
124D.992:

	$	deleted text begin 14,394,000 deleted text end new text begin 14,413,000 new text end	.....	2026
	$	deleted text begin 13,321,000 deleted text end new text begin 13,307,000 new text end	.....	2027

(b) The 2026 appropriation includes $2,376,000 for 2025 and deleted text begin $12,018,000 deleted text end new text begin $12,037,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $1,336,000 deleted text end new text begin $1,337,000 new text end for 2026 and deleted text begin $11,985,000 deleted text end new text begin
$11,970,000 new text end for 2027.

Sec. 29.

Laws 2025, First Special Session chapter 10, article 10, section 10, subdivision
3, is amended to read:

Subd. 3.

Developmental screening aid.

(a) For transfer to the Department of Education
for developmental screening aid under Minnesota Statutes, sections 142D.091 and 142D.093:

	$	deleted text begin 4,127,000 deleted text end new text begin 4,103,000 new text end	.....	2026
	$	deleted text begin 4,083,000 deleted text end new text begin 4,056,000 new text end	.....	2027

(b) The 2026 appropriation includes $414,000 for 2025 and deleted text begin $3,713,000 deleted text end new text begin $3,689,000 new text end for
2026.

(c) The 2027 appropriation includes deleted text begin $412,000 deleted text end new text begin $410,000 new text end for 2026 and deleted text begin $3,671,000 deleted text end new text begin
$3,646,000 new text end for 2027.

Sec. 30.

Laws 2025, First Special Session chapter 10, article 10, section 10, subdivision
4, is amended to read:

Subd. 4.

Early childhood family education aid.

(a) For transfer to the Department of
Education for early childhood family education aid under Minnesota Statutes, section
142D.11:

	$	deleted text begin 39,365,000 deleted text end new text begin 39,139,000 new text end	.....	2026
	$	deleted text begin 41,300,000 deleted text end new text begin 39,710,000 new text end	.....	2027

(b) The 2026 appropriation includes $3,792,000 for 2025 and deleted text begin $35,573,000 deleted text end new text begin $35,347,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $3,952,000 deleted text end new text begin $3,926,000 new text end for 2026 and deleted text begin $37,348,000 deleted text end new text begin
$35,784,000 new text end for 2027.

Sec. 31.

Laws 2025, First Special Session chapter 10, article 10, section 10, subdivision
6, is amended to read:

Subd. 6.

Home visiting aid.

(a) For transfer to the Department of Education for home
visiting aid under Minnesota Statutes, section 142D.11:

	$	deleted text begin 245,000 deleted text end new text begin 234,000 new text end	.....	2026
	$	deleted text begin 222,000 deleted text end new text begin 224,000 new text end	.....	2027

(b) The 2026 appropriation includes $28,000 for 2025 and deleted text begin $217,000 deleted text end new text begin $206,000 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $24,000 deleted text end new text begin $23,000 new text end for 2026 and deleted text begin $198,000 deleted text end new text begin $201,000 new text end
for 2027.

Sec. 32.

Laws 2025, First Special Session chapter 10, article 11, section 2, subdivision 2,
is amended to read:

Subd. 2.

Adult basic education aid.

(a) For adult basic education aid under Minnesota
Statutes, section 124D.531:

	$	deleted text begin 55,281,000 deleted text end new text begin 55,380,000 new text end	.....	2026
	$	deleted text begin 56,919,000 deleted text end new text begin 56,794,000 new text end	.....	2027

(b) The 2026 appropriation includes $5,401,000 for 2025 and deleted text begin $49,880,000 deleted text end new text begin $49,979,000 new text end
for 2026.

(c) The 2027 appropriation includes deleted text begin $5,542,000 deleted text end new text begin $5,553,000 new text end for 2026 and deleted text begin $51,377,000 deleted text end new text begin
$51,241,000 new text end for 2027.

Sec. 33.

Laws 2025, First Special Session chapter 10, article 11, section 2, subdivision 4,
is amended to read:

Subd. 4.

Community education aid.

(a) For community education aid under Minnesota
Statutes, section 124D.20:

	$	deleted text begin 10,080,000 deleted text end new text begin 9,926,000 new text end	.....	2026
	$	deleted text begin 11,815,000 deleted text end new text begin 11,673,000 new text end	.....	2027

(b) The 2026 appropriation includes $871,000 for 2025 and deleted text begin $9,209,000 deleted text end new text begin $9,055,000 new text end for
2026.

(c) The 2027 appropriation includes deleted text begin $1,023,000 deleted text end new text begin $1,006,000 new text end for 2026 and deleted text begin $10,792,000 deleted text end new text begin
$10,667,000 new text end for 2027.

Sec. 34. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 33 are effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: S3551-1

120B.30 GENERAL REQUIREMENTS; STATEWIDE ASSESSMENTS.

Subd. 15.

Disruptions.

The commissioner shall establish a reporting system for teachers, administrators, and students to report service disruptions and technical interruptions. The information reported through this system shall be maintained in a database accessible through the department's website.

124F.01 INNOVATION RESEARCH ZONES PILOT PROGRAM.

Subdivision 1.

Establishment; requirements for participation; research zone plans.

(a) The innovation research zone pilot program is established to improve student and school outcomes consistent with the comprehensive achievement and civic readiness requirements under section 120B.11. Innovation zone partnerships allow school districts and charter schools to research and implement innovative education programming models designed to better prepare students for the world of the 21st century.

(b) One or more school districts or charter schools may join together to form an innovation zone partnership. The partnership may include other nonschool partners, including postsecondary institutions, other units of local government, nonprofit organizations, and for-profit organizations. An innovation zone plan must be collaboratively developed in concert with the school's instructional staff.

(c) An innovation research zone partnership must research and implement innovative education programs and models that are based on proposed hypotheses. An innovation zone plan may include an emerging practice not yet supported by peer-reviewed research. Examples of innovation zone research may include, but are not limited to:

(1) personalized learning, allowing students to excel at their own pace and according to their interests, aspirations, and unique needs;

(2) the use of competency outcomes rather than seat time and course completion to fulfill standards, credits, and other graduation requirements;

(3) multidisciplinary, real-world, inquiry-based, and student-directed models designed to make learning more engaging and relevant, including documenting and validating learning that takes place beyond the school day and school walls;

(4) models of instruction designed to close the achievement gap, including new models for age three to grade 3 models, English as a second language models, early identification and prevention of mental health issues, and others;

(5) new partnerships between secondary schools and postsecondary institutions, employers, or career training institutions enabling students to complete industry certifications, postsecondary education credits, and other credentials;

(6) new methods of collaborative leadership including the expansion of schools where teachers have larger professional roles;

(7) new ways to enhance parental and community involvement in learning;

(8) new models of professional development for educators, including embedded professional development; or

(9) new models in other areas such as whole child instruction, social-emotional skill development, technology-based or blended learning, parent and community involvement, professional development and mentoring, and models that increase the return on investment.

(d) An innovation zone plan submitted to the commissioner must describe:

(1) how the plan will improve student and school outcomes consistent with the comprehensive achievement and civic readiness requirements under section 120B.11;

(2) the role of each partner in the zone;

(3) the research methodology used for each proposed action in the plan;

(4) the exemptions from statutes and rules in subdivision 2 that the research zone partnership will use;

(5) a description of how teachers and other educational staff from the affected school sites will be included in the planning and implementation process;

(6) a detailed description of expected outcomes and graduation standards;

(7) a timeline for implementing the plan and assessing the outcomes; and

(8) how results of the plan will be disseminated.

The governing board for each partner must approve the innovation zone plan.

(e) Upon unanimous approval of the initial innovation zone partners and approval of the commissioner of education, the innovation zone partnership may extend membership to other partners. A new partner's membership is effective 30 days after the innovation zone partnership notifies the commissioner of the proposed change in membership unless the commissioner disapproves the new partner's membership.

(f) Notwithstanding any other law to the contrary, a school district or charter school participating in an innovation zone partnership under this section continues to receive all revenue and maintains its taxation authority in the same manner as before its participation in the innovation zone partnership. The innovation zone school district and charter school partners remain organized and governed by their respective school boards with general powers under chapter 123B or 124E and remain subject to any employment agreements under chapters 122A and 179A. School district and charter school employees participating in an innovation zone partnership remain employees of their respective school district or charter school.

(g) An innovation zone partnership may submit its plan at any time to the commissioner in the form and manner specified by the commissioner. The commissioner must approve or reject the plan after reviewing the recommendation of the Innovation Research Zone Advisory Panel. An initial innovation zone plan that has been rejected by the commissioner may be resubmitted to the commissioner after the innovation zone partnership has modified the plan to meet each individually identified objection.

Subd. 2.

Exemptions from laws and rules.

(a) Notwithstanding any other law to the contrary, an innovation zone partner with an approved plan is exempt from each of the following state education laws and rules specifically identified in its plan:

(1) any law or rule from which a district-created, site-governed school under section 123B.045 is exempt;

(2) any statute or rule from which the commissioner has exempted another district or charter school, as identified in the list published on the Department of Education's website under subdivision 4, paragraph (b);

(3) online learning program approval under section 124D.095, subdivision 7, if the school district or charter school offers a course or program online combined with direct access to a teacher for a portion of that course or program;

(4) restrictions on extended time revenue under section 126C.10, subdivision 2a, for a student who meets the criteria of section 124D.68, subdivision 2; and

(5) any required hours of instruction in any class or subject area for a student who is meeting all competencies consistent with the graduation standards described in the innovation zone plan.

(b) The exemptions under this subdivision must not be construed as exempting an innovation zone partner from the Minnesota Comprehensive Assessments.

Subd. 3.

Innovation Research Zone Advisory Panel.

(a) The commissioner must establish and convene an Innovation Research Zone Advisory Panel to review all innovation zone plans submitted for approval.

(b) The panel must be composed of nine members. One member must be appointed by each of the following organizations: Educators for Excellence, Education Minnesota, Minnesota Association of Secondary School Principals, Minnesota Elementary School Principals' Association, Minnesota Association of School Administrators, Minnesota School Boards Association, Minnesota Association of Charter Schools, and the Office of Higher Education. The commissioner must appoint one member with expertise in evaluation and research.

Subd. 4.

Commissioner approval.

(a) Upon recommendation of the Innovation Research Zone Advisory Panel, the commissioner may approve up to three innovation zone plans in the seven-county metropolitan area and up to three in greater Minnesota. If an innovation zone partnership fails to implement its innovation zone plan as described in its application and according to the stated timeline, upon recommendation of the Innovation Research Zone Advisory Panel, the commissioner must alert the partnership members and provide the opportunity to remediate. If implementation continues to fail, the commissioner must suspend or terminate the innovation zone plan.

(b) The commissioner must publish a list of the exemptions the commissioner has granted to a district or charter school on the Department of Education's website by July 1, 2017. The list must be updated annually.

Subd. 5.

Project evaluation, dissemination, and report to legislature.

Each research zone partnership must submit project data to the commissioner in the form and manner provided for in the approved application. At least once every two years, the commissioner must analyze each innovation zone's progress in realizing the objectives of the innovation zone partnership's plan. The commissioner must summarize and categorize innovation zone plans and submit a report to the legislative committees having jurisdiction over education by February 1 of each odd-numbered year in accordance with section 3.195.