Minnesota Legislature
HF 4210
as introduced - 90th Legislature (2017 - 2018) Posted on 03/22/2018 02:25pm
1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11
4.12
A bill for an act
relating to education finance; increasing the number of pupil audits; amending
Minnesota Statutes 2016, section 127A.41, as amended.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 127A.41, as amended by Laws 2017, First
Special Session chapter 5, article 1, section 15, and Laws 2017, chapter 40, article 1, section
16, is amended to read:
127A.41 DISTRIBUTION OF SCHOOL AIDS; APPROPRIATION.
Subdivision 1.
Commissioner duties.
The commissioner shall supervise distribution of
school aids and grants in accordance with law. The commissioner may make rules consistent
with law for the distribution to enable districts to perform efficiently the services required
by law and further education in the state, including reasonable requirements for the reports
and accounts to it as will assure accurate and lawful apportionment of aids. State and federal
aids and discretionary or entitlement grants distributed by the commissioner shall not be
subject to the contract approval procedures of the commissioner of administration or to
chapter 16A, 16B, or 16C. The commissioner shall adopt internal procedures for
administration and monitoring of aids and grants.
Subd. 2.
Errors in distribution.
On determining that the amount of state aid distributed
to a school district is in errornew text begin or has been spent contrary to statutorily established revenue
usesnew text end , the commissioner is authorized to adjust the amount of aid consistent with this
subdivision. On determining that the amount of aid is in excess of the school district's
entitlement, the commissioner is authorized to recover the amount of the excess by any
appropriate means. Notwithstanding the fiscal years designated by the appropriation, the
excess may be recovered by reducing future aid payments to the district. Notwithstanding
any law to the contrary, if the aid reduced is not of the same type as that overpaid, the district
must adjust all necessary financial accounts to properly reflect all revenues earned in
accordance with the uniform financial accounting and reporting standards pursuant to
sections 123B.75 to 123B.83. Notwithstanding the fiscal years designated by the
appropriation, on determining that the amount of an aid paid is less than the school district's
entitlement, the commissioner is authorized to increase such aid from the current
appropriation. If the aid program has been discontinued and has no appropriation, the
appropriation for general education shall be used for recovery or payment of the aid decrease
or increase. Any excess of aid recovery over aid payment shall be canceled to the state
general fund.
Subd. 3.
Audits.
The commissioner shall establish procedures for conducting and shall
conduct audits of district records and files for the purpose of verifying district pupil counts,
levy limitations, deleted text begin anddeleted text end aid entitlementsnew text begin , and appropriate revenue usesnew text end . The commissioner
shall establish procedures for selecting and shall select districts to be audited. Disparities,
if any, between pupil counts, levy limitations, deleted text begin ordeleted text end aid entitlementsnew text begin , or revenue usesnew text end determined
by audit of district records and files and data reported by districts in reports, claims and
other documents shall be reviewed by the commissioner who shall order increases or
decreases accordingly.new text begin The commissioner may reduce an allocation to a district or charter
school if the statutorily prescribed uses of the revenue are not being met.new text end Whenever possible,
the commissioner shall audit at least deleted text begin 25deleted text end new text begin 50new text end districts each year pursuant to this subdivision.
Procedures adopted under this subdivision are not subject to chapter 14, including section
14.386, and may differ from the procedures under section 127A.42.
Subd. 4.
Less than deleted text begin 25deleted text end new text begin 50new text end districts audited.
If the commissioner audits fewer than deleted text begin 25deleted text end new text begin
50new text end districts in a fiscal year pursuant to subdivision 3, the commissioner shall report the
reasons for the number audited to the following legislative committees: house of
representatives education, house of representatives appropriations, senate education, and
senate finance.
Subd. 5.
District appeal of aid reduction; inspection of district schools and accounts
and records.
Public schools shall at all times be open to the inspection of the commissioner.
The accounts and records of any district must be open to inspection by the state auditor, or
the commissioner for the purpose of audits conducted under this section. Each district shall
keep for a minimum of three years at least the following: (1) identification of the annual
session days held, together with a record of the length of each session day, (2) a record of
each pupil's daily attendance, with entrance and withdrawal dates, and (3) identification of
the to-and-from school transportation category for each pupil as defined in section 123B.92,
subdivision 1.
Subd. 7.
Schedule adjustments.
(a) It is the intention of the legislature to encourage
efficient and effective use of staff and facilities by districts. Districts are encouraged to
consider both cost and energy saving measures.
(b) Any district operating a program pursuant to sections 124D.12 to 124D.127 or
124D.128, or operating a commissioner-designated area learning center program under
section 123A.09, or that otherwise receives the approval of the commissioner to operate its
instructional program to avoid an aid reduction in any year, may adjust the annual school
schedule for that program throughout the calendar year.
Subd. 8.
Appropriation transfers.
(a) If a direct appropriation from the general fund
to the department for any education aid or grant authorized in this chapter and chapters
122A, 123A, 123B, 124D, 124E, 125A, 126C, and 134, excluding appropriations under
sections 124D.135, 124D.16, 124D.20, 124D.22, 124D.52, 124D.531, 124D.55, and 124D.56,
exceeds the amount required, the commissioner may transfer the excess to any education
aid or grant appropriation that is insufficient. However, section 126C.20 applies to a
deficiency in the direct appropriation for general education aid. Excess appropriations must
be allocated proportionately among aids or grants that have insufficient appropriations. The
commissioner of management and budget shall make the necessary transfers among
appropriations according to the determinations of the commissioner. If the amount of the
direct appropriation for the aid or grant plus the amount transferred according to this
subdivision is insufficient, the commissioner shall prorate the available amount among
eligible districts. The state is not obligated for any additional amounts.
(b) Transfers for aids paid under section 127A.45, subdivisions 12 and 13, shall be made
during the fiscal year after the fiscal year of the entitlement. Transfers for aids paid under
section 127A.45, subdivisions 11 and 12a, shall be made during the fiscal year of the
appropriation.
Subd. 9.
Appropriation transfers for community education programs.
If a direct
appropriation from the general fund to the Department of Education for an education aid
or grant authorized under section 124D.135, 124D.16, 124D.20, 124D.22, 124D.52,
124D.531, 124D.55, or 124D.56 exceeds the amount required, the commissioner of education
may transfer the excess to any education aid or grant appropriation that is insufficiently
funded under these sections. Excess appropriations shall be allocated proportionately among
aids or grants that have insufficient appropriations. The commissioner of management and
budget shall make the necessary transfers among appropriations according to the
determinations of the commissioner of education. If the amount of the direct appropriation
for the aid or grant plus the amount transferred according to this subdivision is insufficient,
the commissioner shall prorate the available amount among eligible districts. The state is
not obligated for any additional amounts.
deleted text begin Subd. 10. deleted text end
deleted text begin Health and safety aid transfer. deleted text end
deleted text begin
The commissioner, with the approval of the
commissioner of management and budget, annually may transfer an amount from the
appropriation for health and safety aid to the appropriation for debt service aid for the same
fiscal year. The amount of the transfer equals the amount necessary to fund any shortage
in the debt service aid appropriation created by a data correction that occurs between
November 1 and June 30 of the preceding fiscal year.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for fiscal year 2019 and later.
new text end