1.1                          A bill for an act 
  1.2             relating to education finance; restoring categorical 
  1.3             aid for pupil transportation; appropriating money; 
  1.4             amending Minnesota Statutes 2000, sections 123B.92, 
  1.5             subdivision 1, by adding subdivisions; 126C.10, 
  1.6             subdivisions 1, 19; repealing Minnesota Statutes 2000, 
  1.7             section 126C.10, subdivisions 17, 18. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 123B.92, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
  1.12  and section 125A.76, the terms defined in this subdivision have 
  1.13  the meanings given to them. 
  1.14     (a) "Actual expenditure per pupil transported in the 
  1.15  regular and excess transportation categories" means the quotient 
  1.16  obtained by dividing: 
  1.17     (1) the sum of: 
  1.18     (i) all expenditures for transportation in the regular 
  1.19  category, as defined in paragraph (b), clause (1), and the 
  1.20  excess category, as defined in paragraph (b), clause (2), plus 
  1.21     (ii) an amount equal to one year's depreciation on the 
  1.22  district's school bus fleet and mobile units computed on a 
  1.23  straight line basis at the rate of 15 percent per year for 
  1.24  districts operating a program under section 124D.128 for grades 
  1.25  1 to 12 for all students in the district and 12-1/2 percent per 
  1.26  year for other districts of the cost of the fleet, plus 
  2.1      (iii) an amount equal to one year's depreciation on the 
  2.2   district's type three school buses, as defined in section 
  2.3   169.01, subdivision 6, clause (5), which must be used a majority 
  2.4   of the time for pupil transportation purposes, computed on a 
  2.5   straight line basis at the rate of 20 percent per year of the 
  2.6   cost of the type three school buses by: 
  2.7      (2) the number of pupils eligible for transportation in the 
  2.8   regular category, as defined in paragraph (b), clause (1), and 
  2.9   the excess category, as defined in paragraph (b), clause (2).  
  2.10     (b) "Transportation category" means a category of 
  2.11  transportation service provided to pupils as follows:  
  2.12     (1) Regular transportation is:  
  2.13     (i) transportation to and from school during the regular 
  2.14  school year for resident elementary pupils residing one mile or 
  2.15  more from the public or nonpublic school they attend, and 
  2.16  resident secondary pupils residing two miles or more from the 
  2.17  public or nonpublic school they attend, excluding desegregation 
  2.18  transportation and noon kindergarten transportation; but with 
  2.19  respect to transportation of pupils to and from nonpublic 
  2.20  schools, only to the extent permitted by sections 123B.84 to 
  2.21  123B.87; 
  2.22     (ii) transportation of resident pupils to and from language 
  2.23  immersion programs; 
  2.24     (iii) transportation of a pupil who is a custodial parent 
  2.25  and that pupil's child between the pupil's home and the child 
  2.26  care provider and between the provider and the school, if the 
  2.27  home and provider are within the attendance area of the school; 
  2.28  and 
  2.29     (iv) transportation to and from or board and lodging in 
  2.30  another district, of resident pupils of a district without a 
  2.31  secondary school. 
  2.32     For the purposes of this paragraph, a district may 
  2.33  designate a licensed day care facility, respite care facility, 
  2.34  the residence of a relative, or the residence of a person chosen 
  2.35  by the pupil's parent or guardian as the home of a pupil for 
  2.36  part or all of the day, if requested by the pupil's parent or 
  3.1   guardian, and if that facility or residence is within the 
  3.2   attendance area of the school the pupil attends. 
  3.3      (2) Excess transportation is transportation to and from 
  3.4   school during the regular school year for secondary pupils 
  3.5   residing at least one mile but less than two miles from the 
  3.6   public or nonpublic school they attend, and transportation to 
  3.7   and from school for pupils residing less than one mile from 
  3.8   school who are transported because of extraordinary traffic, 
  3.9   drug, or crime hazards. 
  3.10     (3) Desegregation transportation is transportation within 
  3.11  and outside of the district during the regular school year of 
  3.12  pupils to and from schools located outside their normal 
  3.13  attendance areas under a plan for desegregation mandated by the 
  3.14  commissioner or under court order.  
  3.15     (4) "Transportation services for pupils with disabilities" 
  3.16  is: 
  3.17     (i) transportation of pupils with disabilities who cannot 
  3.18  be transported on a regular school bus between home or a respite 
  3.19  care facility and school; 
  3.20     (ii) necessary transportation of pupils with disabilities 
  3.21  from home or from school to other buildings, including centers 
  3.22  such as developmental achievement centers, hospitals, and 
  3.23  treatment centers where special instruction or services required 
  3.24  by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 
  3.25  are provided, within or outside the district where services are 
  3.26  provided; 
  3.27     (iii) necessary transportation for resident pupils with 
  3.28  disabilities required by sections 125A.12, and 125A.26 to 
  3.29  125A.48; 
  3.30     (iv) board and lodging for pupils with disabilities in a 
  3.31  district maintaining special classes; 
  3.32     (v) transportation from one educational facility to another 
  3.33  within the district for resident pupils enrolled on a 
  3.34  shared-time basis in educational programs, and necessary 
  3.35  transportation required by sections 125A.18, and 125A.26 to 
  3.36  125A.48, for resident pupils with disabilities who are provided 
  4.1   special instruction and services on a shared-time basis; 
  4.2      (vi) transportation for resident pupils with disabilities 
  4.3   to and from board and lodging facilities when the pupil is 
  4.4   boarded and lodged for educational purposes; and 
  4.5      (vii) services described in clauses (i) to (vi), when 
  4.6   provided for pupils with disabilities in conjunction with a 
  4.7   summer instructional program that relates to the pupil's 
  4.8   individual education plan or in conjunction with a learning year 
  4.9   program established under section 124D.128. 
  4.10     (5) "Nonpublic nonregular transportation" is: 
  4.11     (i) transportation from one educational facility to another 
  4.12  within the district for resident pupils enrolled on a 
  4.13  shared-time basis in educational programs, excluding 
  4.14  transportation for nonpublic pupils with disabilities under 
  4.15  clause (4); 
  4.16     (ii) transportation within district boundaries between a 
  4.17  nonpublic school and a public school or a neutral site for 
  4.18  nonpublic school pupils who are provided pupil support services 
  4.19  pursuant to section 123B.44; and 
  4.20     (iii) late transportation home from school or between 
  4.21  schools within a district for nonpublic school pupils involved 
  4.22  in after-school activities. 
  4.23     (c) "Mobile unit" means a vehicle or trailer designed to 
  4.24  provide facilities for educational programs and services, 
  4.25  including diagnostic testing, guidance and counseling services, 
  4.26  and health services.  A mobile unit located off nonpublic school 
  4.27  premises is a neutral site as defined in section 123B.41, 
  4.28  subdivision 13. 
  4.29     (d) "Sparsity index" for a district means the greater of .2 
  4.30  or the ratio of the square mile area of the district to the 
  4.31  resident pupil units of the district. 
  4.32     (e) "Density index" for a district means the ratio of the 
  4.33  square mile area of the district to the resident pupil units of 
  4.34  the district.  However, the density index for a district cannot 
  4.35  be greater than .2 or less than .005. 
  4.36     Sec. 2.  Minnesota Statutes 2000, section 123B.92, is 
  5.1   amended by adding a subdivision to read: 
  5.2      Subd. 11.  [TRANSPORTATION FORMULA ALLOWANCE; PREDICTED 
  5.3   BASE COST.] A district's predicted base cost equals the result 
  5.4   of the following computation. 
  5.5      (a) Multiply the transportation formula allowance by the 
  5.6   district's sparsity index, as defined in section 123B.92, 
  5.7   subdivision 1, paragraph (d), raised to the .28 power.  The 
  5.8   transportation formula allowance is $748 for the 2001-2002 base 
  5.9   year. 
  5.10     (b) Multiply the result in paragraph (a) by the district's 
  5.11  density index, as defined in section 123B.92, subdivision 1, 
  5.12  paragraph (e), raised to the .16 power. 
  5.13     (c) Multiply the result in paragraph (b) by the district's 
  5.14  contract transportation index, as defined in Minnesota Statutes 
  5.15  1996, section 124.225, subdivision 1, clause (l), raised to the 
  5.16  1/20 power. 
  5.17     Sec. 3.  Minnesota Statutes 2000, section 123B.92, is 
  5.18  amended by adding a subdivision to read: 
  5.19     Subd. 12.  [BASE YEAR SOFTENING FORMULA.] Each district's 
  5.20  predicted base cost determined according to subdivision 1 must 
  5.21  be adjusted as provided in this subdivision to determine the 
  5.22  district's adjusted predicted base cost for that year.  The 
  5.23  adjusted predicted base cost equals 50 percent of the district's 
  5.24  base cost plus 50 percent of the district's predicted base cost, 
  5.25  but the adjusted predicted base cost cannot be less than 80 
  5.26  percent, nor more than 105 percent, of the base cost. 
  5.27     Sec. 4.  Minnesota Statutes 2000, section 123B.92, is 
  5.28  amended by adding a subdivision to read: 
  5.29     Subd. 13.  [ELIGIBLE CATEGORIES.] Eligible categories for 
  5.30  transportation aid are: 
  5.31     (1) Transportation to and from school during the regular 
  5.32  school year for resident elementary pupils residing one mile or 
  5.33  more from the public school they attend and resident secondary 
  5.34  pupils residing two miles or more from the public school they 
  5.35  attend, excluding special education and desegregation 
  5.36  transportation. 
  6.1      (2) Hazardous transportation for extraordinary traffic, 
  6.2   crime, or drug hazards if (i) the local school board adopts a 
  6.3   plan for hazardous transportation, and (ii) the plan is approved 
  6.4   by the department of children, families, and learning. 
  6.5      Sec. 5.  Minnesota Statutes 2000, section 123B.92, is 
  6.6   amended by adding a subdivision to read: 
  6.7      Subd. 14.  [TRANSPORTATION AID.] (a) A district's 
  6.8   transportation aid, excluding special education and 
  6.9   desegregation transportation, equals the product of: 
  6.10     (1) the district's predicted base cost under subdivision 12 
  6.11  in eligible categories under subdivision 13 during the second 
  6.12  preceding school year; times 
  6.13     (2) the number of pupils eligible for transportation 
  6.14  services residing in the district; times 
  6.15     (3) the ratio of the formula allowance pursuant to section 
  6.16  126C.10, subdivision 2, for the current school year to the 
  6.17  formula allowance pursuant to section 126C.10, subdivision 2, 
  6.18  for the second preceding school year. 
  6.19     (b) If the total appropriation for transportation aid for 
  6.20  any fiscal year is insufficient to pay all districts the full 
  6.21  amount of aid earned, the department of children, families, and 
  6.22  learning shall reduce each district's aid in proportion to the 
  6.23  number of resident pupils in average daily membership in the 
  6.24  district to the state total average daily membership. 
  6.25     (c) Transportation aid must be reserved and used for pupil 
  6.26  transportation services. 
  6.27     Sec. 6.  Minnesota Statutes 2000, section 123B.92, is 
  6.28  amended by adding a subdivision to read: 
  6.29     Subd. 15.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
  6.30  district shall reserve an amount equal to the greater of $500 or 
  6.31  $1.50 times the average daily membership, for that school year 
  6.32  to provide student transportation safety programs under section 
  6.33  123B.90.  This revenue may only be used if the district complies 
  6.34  with the reporting requirements of section 123B.90, 169.4582, or 
  6.35  171.321, subdivision 5. 
  6.36     Sec. 7.  Minnesota Statutes 2000, section 123B.92, is 
  7.1   amended by adding a subdivision to read: 
  7.2      Subd. 16.  [TRANSPORTATION LEVIES.] School districts may 
  7.3   levy for the following pupil transportation services: 
  7.4      (1) for taxes payable in 2002 and later, a school district 
  7.5   may levy an amount equal to the actual cost of late 
  7.6   transportation home from school, between schools within a 
  7.7   district, or between schools in one or more districts that have 
  7.8   an agreement under sections 123A.30, 123A.32, 123A.35 to 
  7.9   123A.43, or 123A.443, for pupils involved in after-school 
  7.10  activities for the school year beginning in the year the levy is 
  7.11  certified.  A district that levies under this subdivision must 
  7.12  provide late transportation from school for students 
  7.13  participating in any academic-related activities provided by the 
  7.14  district if transportation is provided for students 
  7.15  participating in athletic activities; 
  7.16     (2) transportation to and from a commissioner-approved 
  7.17  secondary vocational center for secondary vocational classes for 
  7.18  resident pupils of any of the districts who are members of or 
  7.19  participating in programs at that center; 
  7.20     (3) when necessary, board and lodging for nonresident 
  7.21  pupils with a disability in a district maintaining special 
  7.22  classes; 
  7.23     (4) transportation from one educational facility to another 
  7.24  within the district for resident pupils enrolled on a shared 
  7.25  time basis in educational programs, and necessary transportation 
  7.26  required by sections 125A.18 and 125A.26 to 125A.48, for 
  7.27  resident pupils with a disability who are provided special 
  7.28  instruction and services on a shared time basis; 
  7.29     (5) transportation for resident pupils with disabilities to 
  7.30  and from board and lodging facilities when the pupils are 
  7.31  boarded and lodged for educational purposes; 
  7.32     (6) transportation services when provided for pupils with a 
  7.33  disability in conjunction with a summer instructional program 
  7.34  that is offered for credit or required for graduation or that 
  7.35  provides academic enrichment or remediation.  The reserved 
  7.36  revenue may not be used for recreational sports, leisure 
  8.1   activities, entertainment, recreational activities, crafts, 
  8.2   hobbies, or any other classes of a similar nature.  Summer 
  8.3   programs for a pupil with a disability shall relate to the 
  8.4   pupil's individual education plan; and 
  8.5      (7) transportation to, from, or between educational 
  8.6   facilities located in any of two or more school districts 
  8.7   jointly offering academic classes or secondary vocational 
  8.8   classes not provided at a secondary vocational center for 
  8.9   resident pupils of any of these districts. 
  8.10     Sec. 8.  Minnesota Statutes 2000, section 126C.10, 
  8.11  subdivision 1, is amended to read: 
  8.12     Subdivision 1.  [GENERAL EDUCATION REVENUE.] For fiscal 
  8.13  year 2000 and thereafter, the general education revenue for each 
  8.14  district equals the sum of the district's basic revenue, basic 
  8.15  skills revenue, training and experience revenue, secondary 
  8.16  sparsity revenue, elementary sparsity revenue, transportation 
  8.17  sparsity revenue, total operating capital revenue, equity 
  8.18  revenue, referendum offset adjustment, transition revenue, and 
  8.19  supplemental revenue. 
  8.20     Sec. 9.  Minnesota Statutes 2000, section 126C.10, 
  8.21  subdivision 19, is amended to read: 
  8.22     Subd. 19.  [TRANSITION ALLOWANCE.] (a) A district's 
  8.23  transportation transition allowance for fiscal year 1998 and 
  8.24  later equals the result of the following: 
  8.25     (1) if the result in subdivision 18, paragraph (a), clause 
  8.26  (iii), for fiscal year 1998 is less than the fiscal year 1996 
  8.27  base allowance, the transportation transition allowance equals 
  8.28  the fiscal year 1996 base allowance minus the result in 
  8.29  subdivision 18, paragraph (a), clause (iii); or 
  8.30     (2) if the result in subdivision 18, paragraph (a), clause 
  8.31  (iii), for fiscal year 1998 and later is greater than or equal 
  8.32  to the fiscal year 1996 base allowance, the transportation 
  8.33  transition allowance equals zero. 
  8.34     (b) A district's compensatory transition allowance equals 
  8.35  the greater of zero or the difference between:  
  8.36     (1) the amount of compensatory revenue the district would 
  9.1   have received under Minnesota Statutes 1996, section 124A.22, 
  9.2   subdivision 3, for fiscal year 1998 computed using a basic 
  9.3   formula allowance of $3,281; and 
  9.4      (2) the amount the district receives under subdivision 3; 
  9.5   divided by 
  9.6      (3) the district's actual pupil units for fiscal year 1998. 
  9.7      (c) (b) A district's cooperation transition allowance for 
  9.8   fiscal year 2001 and later equals the greater of zero or the 
  9.9   difference between:  
  9.10     (1) $25,000; and 
  9.11     (2) $67 times the district's resident pupil units for 
  9.12  fiscal year 2001; divided by 
  9.13     (3) the district's resident pupil units for fiscal year 
  9.14  2001. 
  9.15     (d) A district's transition allowance for fiscal years 1999 
  9.16  and 2000 is equal to the sum of its transportation transition 
  9.17  allowance and its compensatory transition allowance.  (c) A 
  9.18  district's transition allowance for fiscal year 2001 and 
  9.19  thereafter is equal to the sum of its transportation transition 
  9.20  allowance, its compensatory transition allowance, and its 
  9.21  cooperation transition allowance. 
  9.22     Sec. 10.  [APPROPRIATION.] 
  9.23     $....... is appropriated in fiscal year 2002 and $....... 
  9.24  is appropriated in fiscal year 2003 from the general fund to the 
  9.25  commissioner of children, families, and learning for pupil 
  9.26  transportation under section 123B.92, subdivision 14. 
  9.27     Sec. 11.  [REPEALER.] 
  9.28     Minnesota Statutes 2000, section 126C.10, subdivisions 17 
  9.29  and 18, are repealed effective July 1, 2001.