HF 2345

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing parent choice in education; appropriating money;
proposing coding for new law in Minnesota Statutes, chapter 124D.

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

Section 1.

new text begin [124D.031] TITLE.
new text end

new text begin Sections 124D.032 to 124D.0391 are known as the "Parent Choice in Education Act."
new text end

Sec. 2.

new text begin [124D.032] FINDINGS AND PURPOSE.
new text end

new text begin The legislature finds that:
new text end

new text begin (1) parents are best informed to make decisions for their children, including the
educational setting that will best serve their children's interests and educational needs;
new text end

new text begin (2) the establishment of this choice in education program is justified on the basis of
funding the educational needs of school-age children as determined by their parents;
new text end

new text begin (3) school-age children are the primary beneficiaries of the choice in education
program and any benefit to nonpublic schools, whether sectarian or secular, is indirect
and incidental;
new text end

new text begin (4) the choice in education program is available to the parents of school-age
children, solely on the basis of income level for the year immediately preceding the year
for which a scholarship is sought, and not on the basis of sex, race, religion, national
origin, or any other criteria; and
new text end

new text begin (5) the choice in education program is:
new text end

new text begin (i) enacted for the valid secular purpose of tailoring a child's education to that child's
specific needs as determined by the parent;
new text end

new text begin (ii) neutral with respect to religion; and
new text end

new text begin (iii) limited in its assistance to a parent, who may choose to use the scholarship to
offset tuition or fees charged by a nonpublic school, either sectarian or secular, in which
enrollment of the parent's child is sought, solely as a result of the parent's genuine and
independent private choices.
new text end

Sec. 3.

new text begin [124D.033] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 124D.031 to 124D.0391, the
definitions in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Eligible nonpublic school. new text end

new text begin "Eligible nonpublic school" means a nonpublic
school that meets the requirements of section 124D.035.
new text end

new text begin Subd. 3. new text end

new text begin Income eligibility guideline. new text end

new text begin "Income eligibility guideline" means the
maximum annual income allowed to qualify for free and reduced-price meals for the
applicable household size as published by the United States Department of Agriculture
by notice in the Federal Register.
new text end

new text begin Subd. 4. new text end

new text begin Parent. new text end

new text begin "Parent" includes a child's legal guardian.
new text end

new text begin Subd. 5. new text end

new text begin Scholarship student. new text end

new text begin "Scholarship student" means a student who receives
a scholarship under sections 124D.031 to 124D.0391.
new text end

new text begin Subd. 6. new text end

new text begin Tuition. new text end

new text begin "Tuition" means amounts charged for attending a nonpublic
school, excluding fees for extracurricular activities or transportation to the nonpublic
school.
new text end

Sec. 4.

new text begin [124D.034] ESTABLISHMENT; ELIGIBILITY; APPLICATION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The parent choice in education program is
established to award scholarships to students to attend a nonpublic school.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To qualify for a scholarship under this section:
new text end

new text begin (1) the student's custodial parent is a Minnesota resident;
new text end

new text begin (2) the student meets the age limitations under section 120A.20; and
new text end

new text begin (3) the student meets one or more of the following criteria:
new text end

new text begin (i) the student was born after September 1, 2001;
new text end

new text begin (ii) the student was enrolled as a full-time student in a Minnesota public school
on January 1, 2007;
new text end

new text begin (iii) the student was not a Minnesota resident on January 1, 2007; or
new text end

new text begin (iv) the student's parents had an annual income less than or equal to 100 percent of
the income eligibility guideline in the calendar year immediately preceding the school
year for which a scholarship is sought.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) To receive a scholarship, the parent of a student shall
submit an application to the commissioner by the June 1 preceding the school year for
which a scholarship is sought, except the deadline for submitting an application for the
2007-2008 school year is July 1, 2007. In addition to the application, the student's parent
shall submit documentation verifying income as required by the commissioner. The
commissioner may waive the application deadline.
new text end

new text begin (b) The commissioner shall award scholarships by the July 1 preceding the school
year for which a scholarship is sought, except the deadline for awarding scholarships for
the 2007-2008 school year is August 1, 2007.
new text end

new text begin (c) The scholarship application form must contain the following statement:
new text end

new text begin "I acknowledge that:
new text end

new text begin (1) A nonpublic school may not provide the same level of services that are provided
in a public school.
new text end

new text begin (2) The nonpublic school in which I have chosen to enroll my child has disclosed to
me the teaching credentials of the school's teachers and the school's accreditation status.
new text end

new text begin (3) I will assume full financial responsibility for the education of my scholarship
student if I accept this scholarship.
new text end

new text begin (4) Special education instruction and services are provided according to section
125A.18 for students attending a nonpublic school.
new text end

new text begin (d) Upon acceptance of the scholarship, the parent assumes full financial
responsibility for the education of the scholarship student for the period in which the
student receives the scholarship.
new text end

new text begin (e) A student's parent, at any time, may remove the student from a nonpublic school
and place the student in another eligible nonpublic school and retain the scholarship.
new text end

Sec. 5.

new text begin [124D.035] ELIGIBLE NONPUBLIC SCHOOLS.
new text end

new text begin (a) To be eligible to enroll a scholarship student, a nonpublic school must:
new text end

new text begin (1) have a physical location in Minnesota where the scholarship students attend
classes and have direct contact with the school's teachers;
new text end

new text begin (2) contract with an independent certified public accountant to perform the following
duties:
new text end

new text begin (i)(A) determine that working capital is at least 80 percent of average quarterly
expenditures by taking total expenditures for a year and dividing it by four and then
dividing average quarterly expenditures into working capital; and
new text end

new text begin (B) for a school in the first year of operation, use the estimated budget to estimate
average quarterly expenditures;
new text end

new text begin (ii)(A) determine that scholarship payments are accounted for separately and
reconciled to student records; and
new text end

new text begin (B) for the first year of operation, determine that procedures are in place for this
accounting;
new text end

new text begin (iii)(A) determine that expenditures of scholarship funds have been made for
education expenses and are consistent with other tuition expenditures; and
new text end

new text begin (B) for the first year of operation, determine that procedures are in place for the
accounting under this paragraph; and
new text end

new text begin (iv) submit a report that includes the information from items (i) to (iii) to the
commissioner when the nonpublic school applies to accept scholarship students and every
four years thereafter, except that the commissioner may delay the date when the report
shall be submitted for nonpublic schools applying to accept scholarship students in the
2007-2008 school year;
new text end

new text begin (3) comply with chapter 363A and section 121A.04;
new text end

new text begin (4) meet state and local health and safety laws;
new text end

new text begin (5) disclose to the parent of each prospective student, before the student is enrolled,
that special education services will be provided to the student according to section
125A.18;
new text end

new text begin (6) annually assess the achievement of students by participating in the statewide
testing and reporting system under section 120B.30;
new text end

new text begin (7) employ or contract with teachers as defined under section 122A.15, subdivision
1, who hold valid licenses to perform the particular service for which they are employed
in the school;
new text end

new text begin (8) provide to parents the teaching credentials of the school's teachers; and
new text end

new text begin (9) provide, upon request to any person, a statement indicating which, if any,
organizations have accredited the nonpublic school.
new text end

new text begin (b) The following nonpublic schools are not eligible to enroll scholarship students:
new text end

new text begin (1) a school with an enrollment of fewer than 40 students;
new text end

new text begin (2) a school that operates in a residence; or
new text end

new text begin (3) a residential treatment facility licensed by the state.
new text end

new text begin (c) Except as provided in paragraph (a), a nonpublic school intending to enroll
scholarship students shall submit an application to the commissioner by April 1 of the
school year preceding the school year in which it intends to enroll scholarship students. A
nonpublic school intending to enroll scholarship students in the 2007-2008 school year
shall submit an application by June 15, 2007.
new text end

new text begin (d) The commissioner shall:
new text end

new text begin (1) approve a nonpublic school's application to enroll scholarship students if the
nonpublic school meets the eligibility requirements of this section; and
new text end

new text begin (2) make available to the public a list of eligible nonpublic schools:
new text end

new text begin (i) for the 2008-2009 school year and each school year thereafter, by the April 30
preceding the school year; and
new text end

new text begin (ii) for the 2007-2008 school year, by July 1, 2007.
new text end

Sec. 6.

new text begin [124D.036] SCHOLARSHIP PAYMENTS; APPROPRIATION.
new text end

new text begin (a) Scholarships shall be awarded by the commissioner to the extent money is
appropriated by the legislature for that purpose. The legislature shall annually appropriate
money to the commissioner from the general fund to make scholarship payments for
all students projected to apply for scholarships. If money is not available to pay for all
scholarships requested, the scholarships shall be allocated on a random basis except that
preference shall be given to students who received scholarships in the previous year. If
money is insufficient in a school year to pay for all the continuing scholarships:
new text end

new text begin (1) new scholarships must not be awarded during that school year;
new text end

new text begin (2) the money available for scholarships shall be prorated among the eligible
students who received scholarships in the previous year; and
new text end

new text begin (3) the commissioner shall request a supplemental appropriation from the legislature
to make full scholarship payments.
new text end

new text begin (b) Scholarships shall be awarded based upon the income of a scholarship student's
parents in the calendar year immediately preceding the school year for which a scholarship
is sought. The commissioner shall specify how the income of a prospective scholarship
student's parents shall be determined according to this paragraph. A scholarship shall
be based upon parent income as follows:
new text end

new text begin (1) if the parents are married, the income of both parents;
new text end

new text begin (2) if a parent is widowed, the income of the widowed parent;
new text end

new text begin (3) if a parent is widowed and has remarried, the income of the parent and stepparent;
new text end

new text begin (4) if the parents are divorced, the income of the parent with whom the scholarship
student resided for the greatest amount of time during the past 12 months;
new text end

new text begin (5) if the parents are divorced and the scholarship student resided with each parent
an equal amount of time, the income of the parent who provided more financial support
during the past 12 months;
new text end

new text begin (6) if the divorced parent with whom the scholarship student resided for the greatest
amount of time or who provided the greatest financial support has remarried, the income
of the parent and stepparent; and
new text end

new text begin (7) if the scholarship student resides with a guardian, the income of the guardian,
unless the guardian's income is exempt by the commissioner.
new text end

new text begin (c) Parent income is determined as follows:
new text end

new text begin (1) if a parent filed federal or state income tax forms, income shall be based upon
adjusted gross income as listed on the income tax forms;
new text end

new text begin (2) if a parent was exempt from filing federal and state income tax forms, income
shall be based on income earned from work; and
new text end

new text begin (3) documentation from a parent verifying income.
new text end

new text begin (d) The commissioner shall compare the income of a scholarship student's parents
to the maximum annual incomes listed in the income eligibility guideline as defined in
section 124D.033, subdivision 3, to set the scholarship amount. In determining scholarship
amounts, the commissioner shall use:
new text end

new text begin (1) the income eligibility guideline in effect for the school year immediately
preceding the school year for which a scholarship is sought; and
new text end

new text begin (2) the scholarship student's household size as the applicable household size for the
purpose of determining maximum annual income under the income eligibility guideline.
new text end

new text begin (e) Full-year scholarships shall be awarded in the amounts shown in the following
table, or for the actual amount of tuition at the nonpublic school for a full year, whichever
is less.
new text end

new text begin Annual Income: new text end	new text begin Scholarship Amount: new text end
new text begin Less than or equal to 100 percent of the income eligibility guideline new text end	new text begin $3,000 new text end
new text begin Greater than 100 percent but less than or equal to 125 percent of the income eligibility guideline new text end	new text begin $2,750 new text end
new text begin Greater than 125 percent but less than or equal to 150 percent of the income eligibility guideline new text end	new text begin $2,500 new text end
new text begin Greater than 150 percent but less than or equal to 175 percent of the income eligibility guideline new text end	new text begin $2,250 new text end
new text begin Greater than 175 percent but less than or equal to 200 percent of the income eligibility guideline new text end	new text begin $2,000 new text end
new text begin Greater than 200 percent but less than or equal to 225 percent of the income eligibility guideline new text end	new text begin $1,750 new text end
new text begin Greater than 225 percent but less than or equal to 250 percent of the income eligibility guideline new text end	new text begin $1,000 new text end
new text begin Greater than 250 percent of the income eligibility guideline new text end	new text begin $500 new text end

new text begin (f) The full-year scholarship amounts shown in the table in paragraph (e) apply to
scholarships for all grades except kindergarten. The full-year scholarship amount for
kindergarten shall be .55 times the amounts shown in the table in paragraph (e).
new text end

new text begin (g) The commissioner shall annually increase the full-year scholarship amounts
shown in the table in paragraph (e) by the same percentage inflationary increase in the
value of the weighted pupil unit.
new text end

new text begin (h) Except as provided in this section, upon review and receipt of documentation that
verifies a student's admission to, or continuing enrollment and attendance at, a nonpublic
school, the commissioner shall make scholarship payments in four equal amounts no later
than September 1, November 1, February 1, and April 15 of each school year in which
the scholarship student attends the nonpublic school. The commissioner shall make a
scholarship payment before the first quarterly payment of the school year, if a nonpublic
school requires partial payment of tuition before the start of the school year to reserve
space for a student admitted to the school.
new text end

new text begin (i) A parent of a scholarship student and the student's nonpublic school shall notify
the commissioner if the student does not have continuing enrollment and attendance
at the nonpublic school.
new text end

new text begin (j)(1) The commissioner shall make scholarship payments by check made payable to
the student's parent and sent by the commissioner to the nonpublic school. The parent
shall restrictively endorse the check for the nonpublic school's use.
new text end

new text begin (2) A person, on behalf of a nonpublic school, may not accept a power of attorney
from a parent to sign a warrant referred to in clause (1), and a parent of a scholarship
student may not give a power of attorney designating a person, on behalf of a nonpublic
school, as the parent's attorney in fact.
new text end

Sec. 7.

new text begin [124D.037] DISTRICT IMPACT MONEY.
new text end

new text begin (a) A school district shall receive money to lessen potential impacts due to the
reduction in general education revenue resulting from the transfer of scholarship students
from the district to a nonpublic school.
new text end

new text begin (b) A school district shall count in adjusted average daily membership for purposes
of receiving general revenue under section 126C.10, each scholarship student who:
new text end

new text begin (1) transfers from the school district to a nonpublic school; and
new text end

new text begin (2) resides within the boundaries of the school district.
new text end

new text begin (c) Each transferred scholarship student meeting the criteria of paragraph (b) shall
be counted in adjusted average daily membership in the resident school district as the
lesser of:
new text end

new text begin (1) for five years following the transfer;
new text end

new text begin (2) until the student graduates from high school if within five years of the date of
transfer;
new text end

new text begin (3) the student leaves school; or
new text end

new text begin (4) until the student transfers back to the school district, if the student transfers
back to the school district within five years.
new text end

new text begin (d) For each year a school district counts transferred scholarship students in adjusted
average daily membership as provided in this section, the commissioner shall deduct from
general education revenue distributed to the school district an amount equal to the number
of transferred scholarship students counted in adjusted average daily membership times
the average scholarship amount for scholarship students statewide.
new text end

Sec. 8.

new text begin [124D.038] ENFORCEMENT AND PENALTIES.
new text end

new text begin (a) The commissioner shall require nonpublic schools to submit signed affidavits
ensuring the nonpublic school will comply with the requirements of sections 124D.034
to 124D.036. If a school fails to submit a signed affidavit after having an opportunity to
provide explanations and request delays, the commissioner may:
new text end

new text begin (1) deny the nonpublic school permission to enroll scholarship students; and
new text end

new text begin (2) interrupt disbursement of or withhold scholarship payments.
new text end

new text begin (b) The commissioner may investigate complaints for an alleged violation of
sections 124D.034 to 124D.036. Upon a finding that sections 124D.034 to 124D.036 are
violated, the commissioner may:
new text end

new text begin (1) deny a nonpublic school permission to enroll scholarship students;
new text end

new text begin (2) interrupt disbursement of or withhold scholarship payments; or
new text end

new text begin (3) issue an order for repayment of scholarship payments obtained.
new text end

Sec. 9.

new text begin [124D.039] LIMITATION ON REGULATION OF NONPUBLIC
SCHOOLS.
new text end

new text begin Nothing in sections 124D.031 to 124D.0391 grants additional authority to any state
agency or school district to regulate nonpublic schools except as expressly set forth in
sections 124D.031 to 124D.0391.
new text end

Sec. 10.

new text begin [124D.0391] REPORT.
new text end

new text begin The commissioner shall evaluate the parent choice in education program and its
impact on student achievement after the end of the 2013-2014 school year and report on
its finding to the house of representatives and senate committees having jurisdiction over
kindergarten through grade 12 education.
new text end

Sec. 11. new text begin RULEMAKING AUTHORITY.
new text end

new text begin In accordance with chapter 14, the commissioner shall adopt rules consistent with
sections 124D.031 to 124D.0391:
new text end

new text begin (1) establishing the application process for the scholarship program, including
procedures to allow a parent to apply for a scholarship online;
new text end

new text begin (2) establishing how the income of a scholarship student's parents shall be
determined; and
new text end

new text begin (3) the application process for nonpublic schools and scholarship students.
new text end

Sec. 12. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2008 is appropriated from the general fund to the commissioner
of education for the Parent Choice in Education program established in section 124D.034.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 11 are effective the day following final enactment.
new text end