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HF 923

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2013 02:27pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2013

Current Version - as introduced

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6.1

A bill for an act
relating to education finance; phasing out the special education tuition
reimbursement for nonresident students; amending Minnesota Statutes 2012,
sections 125A.11, subdivision 1; 127A.47, subdivision 7.

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

Section 1.

Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:


Subdivision 1.

Nonresident tuition rate; other costs.

deleted text begin (a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum equalization aid attributable to a
pupil must be calculated using the resident district's average general education revenue
and referendum equalization aid per adjusted pupil unit.
deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end For fiscal year deleted text begin 2007deleted text end new text begin 2014new text end and later, when a school district provides special
instruction and services for a pupil with a disability as defined in section 125A.02 outside
the district of residence, excluding a pupil for whom an adjustment to special education
aid is calculated according to section 127A.47, subdivision 7, paragraph deleted text begin (e)deleted text end new text begin (d)new text end , special
education aid paid to the resident district must be reduced by an amount equal to (1)
the actual cost of providing special instruction and services to the pupil, including a
proportionate amount for special transportation and unreimbursed building lease and
debt service costs for facilities used primarily for special education, plus (2) the amount
of general education revenue and referendum equalization aid attributable to that pupil,
calculated using the resident district's average general education revenue and referendum
equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity
revenue and secondary sparsity revenue, minus (3) the amount of special education aid for
children with a disability received on behalf of that child, minus (4) if the pupil receives
special instruction and services outside the regular classroom for more than 60 percent
of the school day, the amount of general education revenue and referendum equalization
aid, excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives special instruction
and services outside of the regular classroom, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
and the serving district's basic skills revenue, elementary sparsity revenue and secondary
sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
served by a cooperative unit without a fiscal agent school district, the general education
revenue and referendum equalization aid attributable to a pupil must be calculated using
the resident district's average general education revenue and referendum equalization aid
excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
revenue. Special education aid paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the amount of the reduction in
the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
expenditures on the resident school district's books of account under sections 123B.75
and 123B.76. If the resident district's special education aid is insufficient to make the full
adjustment, the remaining adjustment shall be made to other state aid due to the district.

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (a) deleted text begin and (b)deleted text end and section 127A.47,
subdivision 7
, deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (d) deleted text begin and (e)deleted text end , a charter school where more than 30
percent of enrolled students receive special education and related services, a site approved
under section 125A.515, an intermediate district, a special education cooperative, or a
school district that served as the applicant agency for a group of school districts for federal
special education aids for fiscal year 2006 may apply to the commissioner for authority to
charge the resident district an additional amount to recover any remaining unreimbursed
costs of serving pupils with a disability. The application must include a description of the
costs and the calculations used to determine the unreimbursed portion to be charged to the
resident district. Amounts approved by the commissioner under this paragraph must be
included in the tuition billings or aid adjustments under paragraph (a) deleted text begin or (b)deleted text end , or section
127A.47, subdivision 7, paragraph (d) deleted text begin or (e)deleted text end , as applicable.

deleted text begin (d)deleted text end new text begin (c)new text end For purposes of this subdivision and section 127A.47, subdivision 7,
deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (d) deleted text begin and (e)deleted text end , "general education revenue and referendum equalization
aid" means the sum of the general education revenue according to section 126C.10,
subdivision 1, excluding alternative teacher compensation revenue, plus the referendum
equalization aid according to section 126C.17, subdivision 7, as adjusted according to
section 127A.47, subdivision 7, paragraphs (a) to (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

deleted text begin (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.
deleted text end

deleted text begin (e) For fiscal year 2007 and later, special education aid paid to a resident district must
be reduced by an amount equal to
deleted text end new text begin (d) For purposes of this subdivision, the "unreimbursed
cost of providing special education and services" means the difference between:
new text end (1) the
actual cost of providing special instruction and services, including special transportation
and unreimbursed building lease and debt service costs for facilities used primarily for
special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as
defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus (2)
if the pupil receives special instruction and services outside the regular classroom for more
than 60 percent of the school day, the amount of general education revenue and referendum
equalization aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.

new text begin (e) Special education aid paid to a resident district must be reduced by the following
amounts:
new text end

new text begin (1) for fiscal year 2015, by an amount equal to 90 percent of the unreimbursed cost
of providing special education and services;
new text end

new text begin (2) for fiscal year 2016, by an amount equal to 66 percent of the unreimbursed cost
of providing special education and services; and
new text end

new text begin (3) for fiscal year 2017, by an amount equal to 33 percent of the unreimbursed cost
of providing special education and services.
new text end

new text begin For fiscal years 2018 and later, special education aid paid to a resident district is not
reduced except as provided in paragraph (f).
new text end

new text begin (f) Notwithstanding paragraph (e), special education aid paid to a resident district
must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
education and services provided to students at an intermediate district, a cooperative, or a
charter school where the percentage of students eligible for special education services is at
least 70 percent of the charter school's total enrollment.
new text end

new text begin (g) new text end Special education aid paid to the district or cooperative providing special
instruction and services for the pupil, or to the fiscal agent district for a cooperative,
must be increased by the amount of the reduction in the aid paid to the resident district
new text begin under paragraphs (e) and (f)new text end . If the resident district's special education aid is insufficient
to make the full adjustment, the remaining adjustment shall be made to other state aids
due to the district.

deleted text begin (f)deleted text end new text begin (h)new text end An area learning center operated by a service cooperative, intermediate
district, education district, or a joint powers cooperative may elect through the action of
the constituent boards to charge the resident district tuition for pupils rather than to have
the general education revenue paid to a fiscal agent school district. Except as provided in
paragraph deleted text begin (d) ordeleted text end (e)new text begin or (f)new text end , the district of residence must pay tuition equal to at least 90
percent of the district average general education revenue per pupil unit minus an amount
equal to the product of the formula allowance according to section 126C.10, subdivision
2
, times .0485, calculated without compensatory revenue and transportation sparsity
revenue, times the number of pupil units for pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end