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Minnesota Legislature

Office of the Revisor of Statutes

HF 4328

as introduced - 90th Legislature (2017 - 2018) Posted on 04/12/2018 04:47pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to education finance; providing funding for prekindergarten through grade
12 education, including general education, education excellence, special education,
facilities and technology, libraries, early childhood and family support,
self-sufficiency and lifelong learning, and state agencies; appropriating money;
amending Minnesota Statutes 2016, sections 120B.30, subdivision 1a; 122A.63,
subdivisions 1, 4, 5, 6, by adding a subdivision; 123B.595, by adding a subdivision;
123B.61; 124D.151, subdivision 2; 125A.76, subdivisions 1, 2a; 125A.79,
subdivision 5; 126C.10, subdivisions 2d, 2e, 24; 126C.126; 126C.17, subdivisions
1, 2, 5, 6, 7, 7a; 126C.44; 134.355, subdivision 10; 245C.02, by adding a
subdivision; 245C.12; Minnesota Statutes 2017 Supplement, sections 120B.30,
subdivision 1; 122A.415, subdivision 4; 124D.151, subdivisions 5, 6; 124D.165,
subdivisions 2, 3; 124D.55; 124D.83, subdivision 2; 126C.05, subdivision 1;
126C.10, subdivision 13a; 245C.08, subdivision 1; Laws 2017, First Special Session
chapter 5, article 1, section 19, subdivision 2; article 2, section 57, subdivisions
25, 26; article 4, section 12, subdivision 2, as amended; article 8, section 9,
subdivisions 2, 5, 6; article 10, section 6, subdivision 3; article 11, sections 9,
subdivision 2; 12; proposing coding for new law in Minnesota Statutes, chapters
124D; 245C; repealing Minnesota Statutes 2016, sections 122A.63, subdivisions
7, 8; 126C.17, subdivision 9a; Laws 2017, First Special Session chapter 5, article
8, section 8.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2016, section 126C.10, subdivision 2e, is amended to read:


Subd. 2e.

Local optional revenue.

(a) new text beginFor fiscal year 2019, new text endlocal optional revenue for
a school district equals $424 times the adjusted pupil units of the district for that school
year.new text begin For fiscal year 2020 and later, local optional revenue for a school district equals the
sum of the district's first tier local optional revenue and second tier local optional revenue.
A district's first tier local optional revenue equals $300 times the adjusted pupil units of the
district for that school year. A district's second tier local optional revenue equals $424 times
the adjusted pupil units of the district for that school year.
new text end

(b) new text beginFor fiscal year 2019, new text enda district's local optional levy equals its local optional revenue
times the lesser of one or the ratio of its referendum market value per resident pupil unit to
$510,000. new text beginFor fiscal year 2020 and later, a district's local optional levy equals the sum of
the first tier local optional levy and the second tier local optional levy. A district's first tier
local optional levy equals the district's first tier local optional revenue times the lesser of
one or the ratio of the district's referendum market value per resident pupil unit to $880,000.
A district's second tier local optional levy equals the district's second tier local optional
revenue times the lesser of one or the ratio of the district's referendum market value per
resident pupil unit to $510,000.
new text endThe local optional revenue levy must be spread on referendum
market value. A district may levy less than the permitted amount.

(c) A district's local optional aid equals its local optional revenue less its local optional
levydeleted text begin, times the ratio of the actual amount levied to the permitted levydeleted text end.new text begin If a district's actual
levy for first or second tier local optional revenue is less than its maximum levy limit for
that tier, aid shall be proportionately reduced.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 2.

Minnesota Statutes 2017 Supplement, section 126C.10, subdivision 13a, is amended
to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue, a district may
levy an amount not more than the product of its operating capital revenue for the fiscal year
times the lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to
the operating capital equalizing factor. The operating capital equalizing factor equals deleted text begin$15,740
for fiscal year 2017,
deleted text end $20,548 for fiscal year 2018, $24,241 for fiscal year 2019, deleted text beginand $22,912deleted text endnew text begin
$23,953
new text end for fiscal year 2020new text begin, and $24,005 for fiscal year 2021new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 3.

Minnesota Statutes 2016, section 126C.10, subdivision 24, is amended to read:


Subd. 24.

Equity revenue.

(a) A school district qualifies for equity revenue if:

(1) the school district's adjusted pupil unit amount of basic revenue, transition revenue,
new text begin first tier local optional revenue, new text endand referendum revenue is less than the value of the school
district at or immediately above the 95th percentile of school districts in its equity region
for those revenue categories; and

(2) the school district's administrative offices are not located in a city of the first class
on July 1, 1999.

(b) Equity revenue deleted text beginfor a qualifying district that receives referendum revenue under
section 126C.17, subdivision 4,
deleted text end equals the product of (1) the district's adjusted pupil units
for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's equity
index computed under subdivision 27.

deleted text begin (c) Equity revenue for a qualifying district that does not receive referendum revenue
under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil units
for that year times $14.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end A school district's equity revenue is increased by the greater of zero or an amount
equal to the district's adjusted pupil units times the difference between ten percent of the
statewide average amount of referendum revenue new text beginand first tier local optional revenue new text endper
adjusted pupil unit for that year and new text beginthe sum of new text endthe district's referendum revenue new text beginand first
tier local optional revenue
new text endper adjusted pupil unit. A school district's revenue under this
paragraph must not exceed $100,000 for that year.

deleted text begin (e)deleted text endnew text begin (d)new text end A school district's equity revenue for a school district located in the metro equity
region equals the amount computed in paragraphs (b)deleted text begin,deleted text end new text beginand new text end(c)deleted text begin, and (d)deleted text end multiplied by 1.25.

deleted text begin (f)deleted text endnew text begin (e)new text end For fiscal years 2017, 2018, and 2019 for a school district not included in paragraph
deleted text begin (e)deleted text endnew text begin (d)new text end, a district's equity revenue equals the amount computed in paragraphs (b)deleted text begin,deleted text endnew text begin andnew text end (c)deleted text begin,
and (d)
deleted text end multiplied by 1.16. For fiscal year 2020 and later for a school district not included
in paragraph deleted text begin(e)deleted text endnew text begin (d)new text end, a district's equity revenue equals the amount computed in paragraphs
(b)deleted text begin,deleted text endnew text begin andnew text end (c)deleted text begin, and (d)deleted text end multiplied by 1.25.

deleted text begin (g)deleted text endnew text begin (f)new text end A school district's additional equity revenue equals $50 times its adjusted pupil
units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 4.

Minnesota Statutes 2016, section 126C.17, subdivision 1, is amended to read:


Subdivision 1.

Referendum allowance.

(a) A district's initial referendum allowance new text beginfor
fiscal year 2020 and later
new text endequals the result of the following calculations:

deleted text begin (1) multiply the referendum allowance the district would have received for fiscal year
2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on elections
held before July 1, 2013, by the resident marginal cost pupil units the district would have
counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
deleted text end

deleted text begin (2) add to the result of clause (1) the adjustment the district would have received under
Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based
on elections held before July 1, 2013;
deleted text end

deleted text begin (3) divide the result of clause (2) by the district's adjusted pupil units for fiscal year
2015;
deleted text end

deleted text begin (4) add to the result of clause (3) any additional referendum allowance per adjusted pupil
unit authorized by elections held between July 1, 2013, and December 31, 2013;
deleted text end

deleted text begin (5) add to the result in clause (4) any additional referendum allowance resulting from
inflation adjustments approved by the voters prior to January 1, 2014;
deleted text end

deleted text begin (6) subtract from the result of clause (5), the sum of a district's actual local optional levy
and local optional aid under section 126C.10, subdivision 2e, divided by the adjusted pupil
units of the district for that school year; and
deleted text end

new text begin (1) subtract $424 from the district's allowance under Minnesota Statutes 2017, section
126C.17, subdivision 1, paragraph (a), clause (5);
new text end

new text begin (2) if the result of clause (1) is less than zero, set the allowance to zero;
new text end

new text begin (3) add to the result in clause (2) any new referendum allowance authorized between
July 1, 2013, and December 31, 2013, under Minnesota Statutes 2013, section 126C.17,
subdivision 9a;
new text end

new text begin (4) add to the result in clause (3) any additional referendum allowance per adjusted pupil
unit authorized between January 1, 2014, and June 30, 2018;
new text end

new text begin (5) subtract from the result in clause (4) any allowances expiring in fiscal year 2016,
2017, 2018, or 2019;
new text end

new text begin (6) subtract $300 from the result in clause (5); and
new text end

(7) if the result of clause (6) is less than zero, set the allowance to zero.

(b) A district's referendum allowance equals the sum of the district's initial referendum
allowance, plus any new referendum allowance authorized deleted text beginbetween July 1, 2013, and
December 31, 2013, under subdivision 9a, plus any additional referendum allowance per
adjusted pupil unit authorized after December 31, 2013,
deleted text endnew text begin after July 1, 2018,new text end minus any
allowances expiring in fiscal year deleted text begin2016deleted text endnew text begin 2020new text end or later, new text beginplus any inflation adjustments for
fiscal year 2020 and later approved by the voters prior to July 1, 2018,
new text endprovided that the
allowance may not be less than zero. deleted text beginFor a district with more than one referendum allowance
for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated
under paragraph (a), clause (3), must be divided into components such that the same
percentage of the district's allowance expires at the same time as the old allowances would
have expired under Minnesota Statutes 2012, section 126C.17.
deleted text end For a district with more than
one allowance for fiscal year 2015 that expires in the same year, the reduction under
paragraph (a), deleted text beginclausedeleted text endnew text begin clauses (1) andnew text end (6), deleted text beginto offset local optional revenuedeleted text end shall be made first
from any allowances that do not have an inflation adjustment approved by the voters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 5.

Minnesota Statutes 2016, section 126C.17, subdivision 2, is amended to read:


Subd. 2.

Referendum allowance limit.

(a) Notwithstanding subdivision 1, for fiscal
year deleted text begin2015deleted text endnew text begin 2020new text end and later, a district's referendum allowance must not exceed the annual
inflationary increase as calculated under paragraph (b) times the deleted text begingreatestdeleted text endnew text begin greaternew text end of:

(1) deleted text begin$1,845deleted text endnew text begin $1,712.53new text end;

(2) the sum of the referendum revenue the district would have received for fiscal year
2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on elections
held before July 1, 2013, and the adjustment the district would have received under Minnesota
Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and (c), based on elections
held before July 1, 2013, divided by the district's adjusted pupil units for fiscal year 2015new text begin,
minus $300
new text end;new text begin or
new text end

deleted text begin (3) the product of the referendum allowance limit the district would have received for
fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and the
resident marginal cost pupil units the district would have received for fiscal year 2015 under
Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the district
would have received under Minnesota Statutes 2012, section 127A.47, subdivision 7,
paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by the
district's adjusted pupil units for fiscal year 2015; minus $424; or
deleted text end

deleted text begin (4)deleted text endnew text begin (3)new text end for a newly reorganized district created after July 1, 2013, the referendum revenue
authority for each reorganizing district in the year preceding reorganization divided by its
adjusted pupil units for the year preceding reorganization.

(b) For purposes of this subdivision, for fiscal year deleted text begin2016deleted text endnew text begin 2021new text end and later, "inflationary
increase" means one plus the percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor Standards, for the current
fiscal year to fiscal year deleted text begin2015deleted text endnew text begin 2020new text end. deleted text beginFor fiscal year 2016 and later, for purposes of paragraph
(a), clause (3), the inflationary increase equals one-fourth of the percentage
deleted text enddeleted text beginincrease in the
formula allowance for that year compared with the formula allowance for fiscal year 2015.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 6.

Minnesota Statutes 2016, section 126C.17, subdivision 5, is amended to read:


Subd. 5.

Referendum equalization revenue.

(a) A district's referendum equalization
revenue equals the sum of the first tier referendum equalization revenue and the second tier
referendum equalization revenuedeleted text begin, and the third tier referendum equalization revenuedeleted text end.

(b) A district's first tier referendum equalization revenue equals the district's first tier
referendum equalization allowance times the district's adjusted pupil units for that year.

(c) A district's first tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or deleted text begin$300deleted text endnew text begin $460new text end.

(d) A district's second tier referendum equalization revenue equals the district's second
tier referendum equalization allowance times the district's adjusted pupil units for that year.

(e) A district's second tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or deleted text begin$760, minus the district's first tier
referendum equalization allowance.
deleted text end

deleted text begin (f) A district's third tier referendum equalization revenue equals the district's third tier
referendum equalization allowance times the district's adjusted pupil units for that year.
deleted text end

deleted text begin (g) A district's third tier referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or
deleted text end 25 percent of the formula allowance,
minus the sum of new text begin$300 and new text endthe district's first tier referendum equalization allowance deleted text beginand
second tier referendum equalization allowance
deleted text end.

deleted text begin (h)deleted text endnew text begin (f)new text end Notwithstanding paragraph deleted text begin(g)deleted text endnew text begin (e)new text end, the deleted text beginthirddeleted text endnew text begin secondnew text end tier referendum allowance
for a district qualifying for secondary sparsity revenue under section 126C.10, subdivision
7
, or elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
referendum allowance under subdivision 1 minus the deleted text beginsum of thedeleted text end district's first tier referendum
equalization allowance deleted text beginand second tier referendum equalization allowancedeleted text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 7.

Minnesota Statutes 2016, section 126C.17, subdivision 6, is amended to read:


Subd. 6.

Referendum equalization levy.

(a) A district's referendum equalization levy
equals the sum of the first tier referendum equalization levydeleted text begin,deleted text endnew text begin andnew text end the second tier referendum
equalization levydeleted text begin, and the third tier referendum equalization levydeleted text end.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin$880,000deleted text endnew text begin $510,000new text end.

(c) A district's second tier referendum equalization levy equals the district's second tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to deleted text begin$510,000deleted text endnew text begin $290,000new text end.

deleted text begin (d) A district's third tier referendum equalization levy equals the district's third tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident pupil unit to $290,000.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 8.

Minnesota Statutes 2016, section 126C.17, subdivision 7, is amended to read:


Subd. 7.

Referendum equalization aid.

(a) A district's referendum equalization aid
equals the difference between its referendum equalization revenue and levy.

(b) If a district's actual levy for firstdeleted text begin,deleted text endnew text begin ornew text end seconddeleted text begin, or thirddeleted text end tier referendum equalization
revenue is less than its maximum levy limit for that tier, aid shall be proportionately reduced.

(c) Notwithstanding paragraph (a), the referendum equalization aid for a district, where
the referendum equalization aid under paragraph (a) exceeds 90 percent of the referendum
revenue, must not exceed 25 percent of new text beginthe difference between new text endthe formula allowance new text beginand
$300
new text endtimes the district's adjusted pupil units. A district's referendum levy is increased by
the amount of any reduction in referendum aid under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 9.

Minnesota Statutes 2016, section 126C.17, subdivision 7a, is amended to read:


Subd. 7a.

Referendum tax base replacement aid.

For each school district that had a
referendum allowance for fiscal year 2002 exceeding $415, for each separately authorized
referendum levy, the commissioner of revenue, in consultation with the commissioner of
education, shall certify the amount of the referendum levy in taxes payable year 2001
attributable to the portion of the referendum allowance exceeding $415 levied against
property classified as class 2, noncommercial 4c(1), or 4c(4), under section 273.13, excluding
the portion of the tax paid by the portion of class 2a property consisting of the house, garage,
and surrounding one acre of land. The resulting amount must be used to reduce the district's
referendum levy new text beginor first tier local optional levy new text endamount otherwise determined, and must be
paid to the district each year that the referendum new text beginor first tier local optional new text endauthority remains
in effect, is renewed, or new referendum authority is approved. The aid payable under this
subdivision must be subtracted from the district's referendum equalization aid under
subdivision 7. The referendum equalization aid new text beginand the first tier local optional aid new text endafter the
subtraction must not be less than zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 10.

Minnesota Statutes 2016, section 126C.44, is amended to read:


126C.44 SAFE SCHOOLS deleted text beginLEVYdeleted text endnew text begin REVENUEnew text end.

new text begin Subdivision 1. new text end

new text begin Safe schools revenue. new text end

(a) deleted text beginEach district may make a levy on all taxable
property located within the district for the purposes specified in this section. The maximum
amount which may be levied for all costs under this section shall be equal to $36 multiplied
by
deleted text endnew text begin For fiscal year 2019 only, the initial safe schools revenue for a school district equals the
greater of $54 times the district's adjusted pupil units for the school year, or $22,500.
new text end

new text begin (b) For fiscal year 2019 only, the cooperative safe schools revenue for a school district
that is a member of an intermediate school district equals $22.50 times the district's adjusted
pupil units for the school year. For fiscal year 2019 only, the cooperative safe schools
revenue for a school district that is a member of a cooperative unit other than an intermediate
district that enrolls students equals $7.50 times the district's adjusted pupil units for the
school year.
new text end

new text begin (c) For fiscal year 2020 and later, the initial safe schools revenue for a school district
equals the greater of $72 times
new text end the district's adjusted pupil units for the school yearnew text begin, or
$30,000
new text end.

new text begin (d) For fiscal year 2020 and later, the cooperative safe schools revenue for a school
district that is a member of an intermediate school district equals $30 times the district's
adjusted pupil units for the school year. For fiscal year 2020 and later, the cooperative safe
schools revenue for a school district that is a member of a cooperative unit other than an
intermediate district that enrolls students equals $15 times the district's adjusted pupil units
for the school year. Revenue raised under this paragraph and paragraph (b) must be
transferred to the intermediate school district or other cooperative unit of which the district
is a member and used only for costs associated with safe schools activities authorized under
subdivision 5, paragraph (a), clauses (1) to (9). If the district is a member of more than one
cooperative unit that enrolls students, the revenue must be allocated among the cooperative
units.
new text end

new text begin (e) For fiscal year 2019 and later, the safe schools revenue for a school district equals
the sum of the district's initial safe schools revenue and the district's cooperative safe schools
revenue.
new text end

new text begin Subd. 2. new text end

new text begin Safe schools levy. new text end

new text begin (a) For fiscal year 2019 only, a district's safe schools levy
equals $36 times the district's adjusted pupil units for the school year.
new text end

new text begin (b) For fiscal year 2019 only, the safe schools levy for a school district that is a member
of an intermediate school district is increased by an amount equal to $15 times the district's
adjusted pupil units for the school year.
new text end

new text begin (c) To obtain safe schools revenue for fiscal year 2020 and later, a district may levy an
amount not more than the product of its safe schools revenue for the fiscal year times the
lesser of one or the ratio of its adjusted net tax capacity per adjusted pupil unit to the safe
schools equalizing factor. The safe schools equalizing factor equals 60 percent of the state
average net tax capacity per adjusted pupil unit for all school districts.
new text end

new text begin Subd. 3. new text end

new text begin Safe schools aid. new text end

new text begin A district's safe schools aid equals its safe schools revenue
minus its safe schools levy, times the ratio of the actual amount levied to the permitted levy.
new text end

new text begin Subd. 4. new text end

new text begin Safe schools revenue for a charter school. new text end

new text begin (a) For fiscal year 2019, safe
schools revenue for a charter school equals $18 times the adjusted pupil units for the school
year. For fiscal year 2020 and later, safe schools revenue for a charter school equals $36
times the adjusted pupil units for the school year.
new text end

new text begin (b) The revenue must be reserved and used only for costs associated with safe schools
activities authorized under subdivision 5, paragraph (a), clauses (1) to (9), or for building
lease expenses not funded by charter school building lease aid that are attributable to facility
security enhancements made by the landlord after March 1, 2018.
new text end

new text begin Subd. 5. new text end

new text begin Uses of safe schools revenue. new text end

new text begin(a)new text end The deleted text beginproceeds of the levydeleted text end new text beginrevenue new text endmust be
reserved and used for directly funding the following purposes or for reimbursing the cities
and counties who contract with the district for the following purposes:

(1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace
officers and sheriffs for liaison in services in the district's schools;

(2) to pay the costs for a drug abuse prevention program as defined in section 609.101,
subdivision 3
, paragraph (e), in the elementary schools;

(3) to pay the costs for a gang resistance education training curriculum in the district's
schools;

(4) to pay the costs for security in the district's schools and on school property;

(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
voluntary opt-in suicide prevention tools, and violence prevention measures taken by the
school district;

(6) to pay costs for licensed school counselors, licensed school nurses, licensed school
social workers, licensed school psychologists, and licensed alcohol and chemical dependency
counselors to help provide early responses to problems;

(7) to pay for facility security enhancements including laminated glass, public
announcement systems, emergency communications devices, and equipment and facility
modifications related to violence prevention and facility security;

(8) to pay for costs associated with improving the school climate; deleted text beginor
deleted text end

(9) to pay costs for colocating and collaborating with mental health professionals who
are not district employees or contractorsdeleted text begin.deleted text endnew text begin; or
new text end

new text begin (10) by board resolution, to transfer money into the debt redemption fund to pay the
amounts needed to meet, when due, principal and interest payments on obligations issued
under sections 123B.61 and 123B.62 for purposes included in clause (7).
new text end

(b) For expenditures under paragraph (a), clause (1), the district must initially attempt
to contract for services to be provided by peace officers or sheriffs with the police department
of each city or the sheriff's department of the county within the district containing the school
receiving the services. If a local police department or a county sheriff's department does
not wish to provide the necessary services, the district may contract for these services with
any other police or sheriff's department located entirely or partially within the school district's
boundaries.

deleted text begin (c) A school district that is a member of an intermediate school district may include in
its authority under this section the costs associated with safe schools activities authorized
under paragraph (a) for intermediate school district programs. This authority must not exceed
$15 times the adjusted pupil units of the member districts. This authority is in addition to
any other authority authorized under this section. Revenue raised under this paragraph must
be transferred to the intermediate school district.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 11.

Laws 2017, First Special Session chapter 5, article 1, section 19, subdivision 2,
is amended to read:


Subd. 2.

General education aid.

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

$
deleted text begin 7,032,051,000 deleted text end new text begin
7,078,769,000
new text end
.....
2018
$
deleted text begin 7,227,809,000
deleted text end new text begin 7,239,364,000
new text end
.....
2019

The 2018 appropriation includes $686,828,000 for 2017 and deleted text begin$6,345,223,000deleted text endnew text begin
$6,391,941,000
new text end for 2018.

The 2019 appropriation includes deleted text begin$705,024,000deleted text endnew text begin $683,110,000new text end for 2018 and
deleted text begin $6,522,785,000deleted text endnew text begin $6,556,254,000new text end for 2019.

Sec. 12. new text beginAPPROPRIATION.
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 Safe schools revenue. new text end

new text begin For safe schools revenue under Minnesota Statutes,
section 126C.44, subdivision 1:
new text end

new text begin $
new text end
new text begin 19,814,000
new text end
new text begin .....
new text end
new text begin 2019
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 126C.17, subdivision 9a, new text end new text begin is repealed effective for
revenue for fiscal year 2020 and later.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2017 Supplement, section 120B.30, subdivision 1, is amended
to read:


Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts with
appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade level
to be tested, state-constructed tests developed as computer-adaptive reading and mathematics
assessments for students that are aligned with the state's required academic standards under
section 120B.021, include multiple choice questions, and are administered annually to all
students in grades 3 through 8. State-developed high school tests aligned with the state's
required academic standards under section 120B.021 and administered to all high school
students in a subject other than writing must include multiple choice questions. The
commissioner shall establish one or more months during which schools shall administer
the tests to students each school year.

(1) Students enrolled in grade 8 through the 2009-2010 school year are eligible to be
assessed under (i) the graduation-required assessment for diploma in reading, mathematics,
or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1, paragraphs (c),
clauses (1) and (2), and (d), (ii) the WorkKeys job skills assessment, (iii) the Compass
college placement test, (iv) the ACT assessment for college admission, (v) a nationally
recognized armed services vocational aptitude test.

(2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012 school year are eligible
to be assessed under (i) the graduation-required assessment for diploma in reading,
mathematics, or writing under Minnesota Statutes 2012, section 120B.30, subdivision 1,
paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills assessment, (iii) the Compass
college placement test, (iv) the ACT assessment for college admission, (v) a nationally
recognized armed services vocational aptitude test.

(3) For students under clause (1) or (2), a school district may substitute a score from an
alternative, equivalent assessment to satisfy the requirements of this paragraph.

(b) The state assessment system must be aligned to the most recent revision of academic
standards as described in section 120B.023 in the following manner:

(1) mathematics;

(i) grades 3 through 8 beginning in the 2010-2011 school year; and

(ii) high school level beginning in the 2013-2014 school year;

(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
school year; and

(3) language arts and reading; grades 3 through 8 and high school level beginning in the
2012-2013 school year.

(c) For students enrolled in grade 8 in the 2012-2013 school year and later, students'
state graduation requirements, based on a longitudinal, systematic approach to student
education and career planning, assessment, instructional support, and evaluation, include
the following:

(1) achievement and career and college readiness in mathematics, reading, and writing,
consistent with paragraph (k) and to the extent available, to monitor students' continuous
development of and growth in requisite knowledge and skills; analyze students' progress
and performance levels, identifying students' academic strengths and diagnosing areas where
students require curriculum or instructional adjustments, targeted interventions, or
remediation; and, based on analysis of students' progress and performance data, determine
students' learning and instructional needs and the instructional tools and best practices that
support academic rigor for the student; and

(2) consistent with this paragraph and section 120B.125, age-appropriate exploration
and planning activities and career assessments to encourage students to identify personally
relevant career interests and aptitudes and help students and their families develop a regularly
reexamined transition plan for postsecondary education or employment without need for
postsecondary remediation.

Based on appropriate state guidelines, students with an individualized education program
may satisfy state graduation requirements by achieving an individual score on the
state-identified alternative assessments.

(d) Expectations of schools, districts, and the state for career or college readiness under
this subdivision must be comparable in rigor, clarity of purpose, and rates of student
completion.

A student under paragraph (c), clause (1), must receive targeted, relevant, academically
rigorous, and resourced instruction, which may include a targeted instruction and intervention
plan focused on improving the student's knowledge and skills in core subjects so that the
student has a reasonable chance to succeed in a career or college without need for
postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091, 124D.49,
and related sections, an enrolling school or district must actively encourage a student in
grade 11 or 12 who is identified as academically ready for a career or college to participate
in courses and programs awarding college credit to high school students. Students are not
required to achieve a specified score or level of proficiency on an assessment under this
subdivision to graduate from high school.

(e) Though not a high school graduation requirement, students are encouraged to
participate in a nationally recognized college entrance exam. To the extent state funding
for college entrance exam fees is available, a district must pay the cost, one time, for an
interested student in grade 11 or 12 who is eligible for a free or reduced-price meal, to take
a nationally recognized college entrance exam before graduating. A student must be able
to take the exam under this paragraph at the student's high school during the school day and
at any one of the multiple exam administrations available to students in the district. A district
may administer the ACT or SAT or both the ACT and SAT to comply with this paragraph.
If the district administers only one of these two tests and a free or reduced-price meal eligible
student opts not to take that test and chooses instead to take the other of the two tests, the
student may take the other test at a different time or location and remains eligible for the
examination fee reimbursement. Notwithstanding sections 123B.34 to 123B.39, a school
district may require a student that is not eligible for a free or reduced-price meal to pay the
cost of taking a nationally recognized college entrance exam. The district must waive the
cost for a student unable to pay.

(f) The commissioner and the chancellor of the Minnesota State Colleges and Universities
must collaborate in aligning instruction and assessments for adult basic education students
and English learners to provide the students with diagnostic information about any targeted
interventions, accommodations, modifications, and supports they need so that assessments
and other performance measures are accessible to them and they may seek postsecondary
education or employment without need for postsecondary remediation. When administering
formative or summative assessments used to measure the academic progress, including the
oral academic development, of English learners and inform their instruction, schools must
ensure that the assessments are accessible to the students and students have the modifications
and supports they need to sufficiently understand the assessments.

(g) Districts and schools, on an annual basis, must use career exploration elements to
help students, beginning no later than grade 9, and their families explore and plan for
postsecondary education or careers based on the students' interests, aptitudes, and aspirations.
Districts and schools must use timely regional labor market information and partnerships,
among other resources, to help students and their families successfully develop, pursue,
review, and revise an individualized plan for postsecondary education or a career. This
process must help increase students' engagement in and connection to school, improve
students' knowledge and skills, and deepen students' understanding of career pathways as
a sequence of academic and career courses that lead to an industry-recognized credential,
an associate's degree, or a bachelor's degree and are available to all students, whatever their
interests and career goals.

(h) A student who demonstrates attainment of required state academic standards, which
include career and college readiness benchmarks, on high school assessments under
subdivision 1a is academically ready for a career or college and is encouraged to participate
in courses awarding college credit to high school students. Such courses and programs may
include sequential courses of study within broad career areas and technical skill assessments
that extend beyond course grades.

(i) As appropriate, students through grade 12 must continue to participate in targeted
instruction, intervention, or remediation and be encouraged to participate in courses awarding
college credit to high school students.

(j) In developing, supporting, and improving students' academic readiness for a career
or college, schools, districts, and the state must have a continuum of empirically derived,
clearly defined benchmarks focused on students' attainment of knowledge and skills so that
students, their parents, and teachers know how well students must perform to have a
reasonable chance to succeed in a career or college without need for postsecondary
remediation. The commissioner, in consultation with local school officials and educators,
and Minnesota's public postsecondary institutions must ensure that the foundational
knowledge and skills for students' successful performance in postsecondary employment
or education and an articulated series of possible targeted interventions are clearly identified
and satisfy Minnesota's postsecondary admissions requirements.

(k) For students in grade 8 in the 2012-2013 school year and later, a school, district, or
charter school must record on the high school transcript a student's progress toward career
and college readiness, and for other students as soon as practicable.

(l) The school board granting students their diplomas may formally decide to include a
notation of high achievement on the high school diplomas of those graduating seniors who,
according to established school board criteria, demonstrate exemplary academic achievement
during high school.

(m) The 3rd through 8th grade computer-adaptive assessment results and high school
test results shall be available to districts for diagnostic purposes affecting student learning
and district instruction and curriculum, and for establishing educational accountability. deleted text beginThe
commissioner must establish empirically derived benchmarks on adaptive assessments in
grades 3 through 8.
deleted text end The commissioner, in consultation with the chancellor of the Minnesota
State Colleges and Universities, must establish empirically derived benchmarks on the high
school tests that reveal a trajectory toward career and college readiness consistent with
section 136F.302, subdivision 1a. The commissioner must disseminate to the public the
deleted text begin computer-adaptive assessments anddeleted text end high school test results upon receiving those results.

(n) The grades 3 through 8 computer-adaptive assessments and high school tests must
be aligned with state academic standards. The commissioner shall determine the testing
process and the order of administration. The statewide results shall be aggregated at the site
and district level, consistent with subdivision 1a.

(o) The commissioner shall include the following components in the statewide public
reporting system:

(1) uniform statewide computer-adaptive assessments of all students in grades 3 through
8 and testing at the high school levels that provides appropriate, technically sound
accommodations or alternate assessments;

(2) educational indicators that can be aggregated and compared across school districts
and across time on a statewide basis, including average daily attendance, high school
graduation rates, and high school drop-out rates by age and grade level;

(3) state results on the American College Test; and

(4) state results from participation in the National Assessment of Educational Progress
so that the state can benchmark its performance against the nation and other states, and,
where possible, against other countries, and contribute to the national effort to monitor
achievement.

(p) For purposes of statewide accountability, "career and college ready" means a high
school graduate has the knowledge, skills, and competencies to successfully pursue a career
pathway, including postsecondary credit leading to a degree, diploma, certificate, or
industry-recognized credential and employment. Students who are career and college ready
are able to successfully complete credit-bearing coursework at a two- or four-year college
or university or other credit-bearing postsecondary program without need for remediation.

(q) For purposes of statewide accountability, "cultural competence," "cultural
competency," or "culturally competent" means the ability of families and educators to
interact effectively with people of different cultures, native languages, and socioeconomic
backgrounds.

Sec. 2.

Minnesota Statutes 2016, section 120B.30, subdivision 1a, is amended to read:


Subd. 1a.

Statewide and local assessments; results.

deleted text begin (a) For purposes of this section,
the following definitions have the meanings given them.
deleted text end

deleted text begin (1) "Computer-adaptive assessments" means fully adaptive assessments.
deleted text end

deleted text begin (2) "Fully adaptive assessments" include test items that are on-grade level and items that
may be above or below a student's grade level.
deleted text end

deleted text begin (3) "On-grade level" test items contain subject area content that is aligned to state
academic standards for the grade level of the student taking the assessment.
deleted text end

deleted text begin (4) "Above-grade level" test items contain subject area content that is above the grade
level of the student taking the assessment and is considered aligned with state academic
standards to the extent it is aligned with content represented in state academic standards
above the grade level of the student taking the assessment. Notwithstanding the student's
grade level, administering above-grade level test items to a student does not violate the
requirement that state assessments must be aligned with state standards.
deleted text end

deleted text begin (5) "Below-grade level" test items contain subject area content that is below the grade
level of the student taking the test and is considered aligned with state academic standards
to the extent it is aligned with content represented in state academic standards below the
student's current grade level. Notwithstanding the student's grade level, administering
below-grade level test items to a student does not violate the requirement that state
assessments must be aligned with state standards.
deleted text end

deleted text begin (b) The commissioner must use fully adaptive mathematics and reading assessments for
grades 3 through 8.
deleted text end

deleted text begin (c)deleted text endnew text begin (a)new text end For purposes of conforming with existing federal educational accountability
requirements, the commissioner must develop and implement computer-adaptive reading
and mathematics assessments for grades 3 through 8, state-developed high school reading
and mathematics tests aligned with state academic standards, a high school writing test
aligned with state standards when it becomes available, and science assessments under
clause (2) that districts and sites must use to monitor student growth toward achieving those
standards. The commissioner must not develop statewide assessments for academic standards
in social studies, health and physical education, and the arts. The commissioner must require:

(1) annual computer-adaptive reading and mathematics assessments in grades 3 through
8, and high school reading, writing, and mathematics tests; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the grades
6 through 8 span, and a life sciences assessment in the grades 9 through 12 span, and the
commissioner must not require students to achieve a passing score on high school science
assessments as a condition of receiving a high school diploma.

deleted text begin (d)deleted text endnew text begin (b)new text end The commissioner must ensure that for annual computer-adaptive assessments:

(1) individual student performance data and achievement reports are available within
three school days of when students take an assessment except in a year when an assessment
reflects new performance standards;

(2) growth information is available for each student from the student's first assessment
to each proximate assessment using a constant measurement scale;

(3) parents, teachers, and school administrators are able to use elementary and middle
school student performance data to project students' secondary and postsecondary
achievement; and

(4) useful diagnostic information about areas of students' academic strengths and
weaknesses is available to teachers and school administrators for improving student
instruction and indicating the specific skills and concepts that should be introduced and
developed for students at given performance levels, organized by strands within subject
areas, and aligned to state academic standards.

deleted text begin (e)deleted text endnew text begin (c)new text end The commissioner must ensure that all state tests administered to elementary and
secondary students measure students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

deleted text begin (f)deleted text endnew text begin (d)new text end Reporting of state assessment results must:

(1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;

(2) include a growth indicator of student achievement; and

(3) determine whether students have met the state's academic standards.

deleted text begin (g)deleted text endnew text begin (e)new text end Consistent with applicable federal law, the commissioner must include appropriate,
technically sound accommodations or alternative assessments for the very few students with
disabilities for whom statewide assessments are inappropriate and for English learners.

deleted text begin (h)deleted text endnew text begin (f)new text end A school, school district, and charter school must administer statewide assessments
under this section, as the assessments become available, to evaluate student progress toward
career and college readiness in the context of the state's academic standards. A school,
school district, or charter school may use a student's performance on a statewide assessment
as one of multiple criteria to determine grade promotion or retention. A school, school
district, or charter school may use a high school student's performance on a statewide
assessment as a percentage of the student's final grade in a course, or place a student's
assessment score on the student's transcript.

Sec. 3.

Minnesota Statutes 2017 Supplement, section 122A.415, subdivision 4, is amended
to read:


Subd. 4.

Basic alternative teacher compensation aid.

(a) The basic alternative teacher
compensation aid for a school with a plan approved under section 122A.414, subdivision
2b
, equals 65 percent of the alternative teacher compensation revenue under subdivision 1.
The basic alternative teacher compensation aid for a charter school with a plan approved
under section 122A.414, subdivisions 2a and 2b, equals $260 times the number of pupils
enrolled in the school on October 1 of the previous year, or on October 1 of the current year
for a charter school in the first year of operation, times the ratio of the sum of the alternative
teacher compensation aid and alternative teacher compensation levy for all participating
school districts to the maximum alternative teacher compensation revenue for those districts
under subdivision 1.

(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed deleted text begin$75,840,000 for fiscal year 2016 anddeleted text end
$88,118,000 for fiscal year 2017 and laternew text begin, except that if the aid for fiscal year 2019 and
later exceeds this limit for participants approved before January 1, 2018, due to an increase
in enrollment or number of licensed teachers for existing participants, the limit is increased
by the amount needed to fully fund the basic alternative compensation aid for the existing
participants
new text end. The commissioner must limit the amount of alternative teacher compensation
aid approved under this section so as not to exceed deleted text beginthese limitsdeleted text endnew text begin this limitnew text end by not approving
new participants or by prorating the aid among participating districts, intermediate school
districts, school sites, and charter schools. The commissioner may also reallocate a portion
of the allowable aid for the biennium from the second year to the first year to meet the needs
of approved participants.

(c) Basic alternative teacher compensation aid for an intermediate district or other
cooperative unit equals $3,000 times the number of licensed teachers employed by the
intermediate district or cooperative unit on October 1 of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 4.

Minnesota Statutes 2016, section 122A.63, subdivision 1, is amended to read:


Subdivision 1.

Establishment.

(a) A grant program is established to assist American
Indian people to become teachers and to provide additional education for American Indian
teachers. The commissioner may award a joint grant to each of the following:

(1) the Duluth campus of the University of Minnesota and Independent School District
No. 709, Duluth;

(2) Bemidji State University and Independent School District No. 38, Red Lake;

(3) Moorhead State University and one of the school districts located within the White
Earth Reservation; and

(4) Augsburg College, Independent School District No. 625, St. Paul, and Special School
District No. 1, Minneapolis.

(b) If additional funds are available, the commissioner may award additional joint grants
to other postsecondary institutions and school districts.

new text begin (c) Grantees may enter into contracts with tribal, technical, and community colleges and
four-year postsecondary institutions to identify and provide grants to students at those
institutions interested in the field of education. Each grantee is eligible to and may contract
with partner institutions to provide professional development and supplemental services to
a tribal, technical, or community college or four-year postsecondary institution, including
identification of prospective students, provision of instructional supplies and materials, and
provision of grant money to students. A contract with a tribal, technical, or community
college or four-year postsecondary institution includes coordination of student identification,
professional development, and mentorship services.
new text end

Sec. 5.

Minnesota Statutes 2016, section 122A.63, subdivision 4, is amended to read:


Subd. 4.

Grant amount.

The commissioner may award a joint grant in the amount it
determines to be appropriate. The grant shall include money for the postsecondary institution,
school district, new text beginand new text endstudent deleted text beginscholarships, and student loansdeleted text endnew text begin grantsnew text end.

Sec. 6.

Minnesota Statutes 2016, section 122A.63, subdivision 5, is amended to read:


Subd. 5.

Information to student applicants.

At the time a student applies for a
deleted text begin scholarship and loandeleted text endnew text begin grantnew text end, the student shall be provided information about the fields of
licensure needed by school districts in the part of the state within which the district receiving
the joint grant is located. The information shall be acquired and periodically updated by the
recipients of the joint grantnew text begin and their contracted partner institutionsnew text end. Information provided
to students shall clearly state that scholarship and loan decisions are not based upon the
field of licensure selected by the student.

Sec. 7.

Minnesota Statutes 2016, section 122A.63, subdivision 6, is amended to read:


Subd. 6.

Eligibility for deleted text beginscholarships and loansdeleted text endnew text begin student grantsnew text end.

The following Indian
people are eligible for deleted text beginscholarshipsdeleted text endnew text begin student grantsnew text end:

new text begin (1) a student having origins in any of the original peoples of North America and
maintaining cultural identification through tribal affiliation or community recognition;
new text end

deleted text begin (1)deleted text endnew text begin (2)new text end a student, including a teacher aide employed by a district receiving a joint grantnew text begin
or their contracted partner school
new text end, who intends to become a teacher new text beginor who is interested in
the field of education
new text endand who is enrolled in a postsecondary institution new text beginor their contracted
partner institutions
new text endreceiving a joint grant;

deleted text begin (2)deleted text endnew text begin (3)new text end a licensed employee of a district receiving a joint grantnew text begin or a contracted partner
school
new text end, who is enrolled in a master of education program; and

deleted text begin (3)deleted text endnew text begin (4)new text end a student who, after applying for federal and state financial aid and an Indian
scholarship according to section 136A.126, has financial needs that remain unmet. Financial
need shall be determined according to the congressional methodology for needs determination
or as otherwise set in federal law.

deleted text begin A person who has actual living expenses in addition to those addressed by the
congressional methodology for needs determination, or as otherwise set in federal law, may
receive a loan according to criteria established by the commissioner. A contract shall be
executed between the state and the student for the amount and terms of the loan.
deleted text end new text begin Priority
shall be given to a student who is tribally enrolled and then to first- and second-generation
descendants.
new text end

Sec. 8.

Minnesota Statutes 2016, section 122A.63, is amended by adding a subdivision to
read:


new text begin Subd. 9. new text end

new text begin Eligible programming. new text end

new text begin (a) The grantee institutions and the contracted partner
institutions may provide grants to students progressing toward educational goals in any area
of teacher licensure, including an associate of arts, bachelor's, master's, or doctoral degree
in the following:
new text end

new text begin (1) any educational certification necessary for employment;
new text end

new text begin (2) early childhood family education or prekindergarten licensure;
new text end

new text begin (3) elementary and secondary education;
new text end

new text begin (4) school administration; or
new text end

new text begin (5) any educational program that provides services to American Indian students in
prekindergarten through grade 12.
new text end

new text begin (b) For purposes of recruitment, the grantees or their partner contracted institutions shall
agree to work with their respective organizations to hire an American Indian work-study
student or other American Indian staff to conduct initial information queries and to contact
persons working in schools to provide programming regarding education professions to a
high school student who may be interested in education as a profession.
new text end

new text begin (c) At least 80 percent of the grants awarded under this section must be used for student
grants. No more than 20 percent of the grants awarded under this section may be used for
recruitment or administration of the student grants.
new text end

Sec. 9.

Minnesota Statutes 2017 Supplement, section 124D.83, subdivision 2, is amended
to read:


Subd. 2.

Revenue amount.

An American Indian-controlled tribal contract or grant school
that is located on a reservation within the state and that complies with the requirements in
subdivision 1 is eligible to receive tribal contract or grant school aid. The amount of aid is
derived by:

(1) multiplying the formula allowance under section 126C.10, subdivision 2, less $170,
times the difference between (i) the resident pupil units as defined in section 126C.05,
subdivision 6
, in average daily membership, excluding section 126C.05, subdivision 13,
and (ii) the number of pupils for the current school year, weighted according to section
126C.05, subdivision 1, receiving benefits under section 123B.42 or 123B.44 or for which
the school is receiving reimbursement under section 124D.69;

(2) adding to the result in clause (1) an amount equal to the product of the formula
allowance under section 126C.10, subdivision 2, less $300 times the tribal contract
compensation revenue pupil units;

(3) subtracting from the result in clause (2) the amount of money allotted to the school
by the federal government through Indian School Equalization Program of the Bureau of
Indian Affairs, according to Code of Federal Regulations, title 25, part 39, subparts A to E,
for the basic program as defined by deleted text beginsectiondeleted text endnew text begin partnew text end 39.11, paragraph (b), for the base rate as
applied to kindergarten through twelfth grade, excluding small school adjustments and
additional weighting, but not money allotted through subparts F to L for contingency funds,
school board training, student training, interim maintenance and minor repair, interim
administration cost, prekindergarten, and operation and maintenance, and the amount of
money that is received according to section 124D.69;

(4) dividing the result in clause (3) by the sum of the resident pupil units in average daily
membership, excluding section 126C.05, subdivision 13, plus the tribal contract compensation
revenue pupil units; and

(5) multiplying the sum of the resident pupil units, including section 126C.05, subdivision
13
, in average daily membership plus the tribal contract compensation revenue pupil units
by the lesser of $3,230 deleted text beginfor fiscal years 2016 to 2019 and $1,500 for fiscal year 2020 and
later
deleted text end or the result in clause (4).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 10.

Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 25,
is amended to read:


Subd. 25.

College entrance examination reimbursement.

To reimburse districts for
students who qualify under Minnesota Statutes, section 120B.30, subdivision 1, paragraph
(e), for payment of their college entrance examination fee:

$
1,511,000
.....
2018
$
1,511,000
.....
2019

The commissioner must reimburse school districts for their costs for free or reduced-price
meal eligible students who take the ACT or SAT test under Minnesota Statutes, section
120B.30, subdivision 1.

Any balance in the first year does not cancel but is available in the second year.new text begin Any
balance in the second year does not cancel and may be carried forward until October 31 of
the following fiscal year.
new text end

Sec. 11.

Laws 2017, First Special Session chapter 5, article 2, section 57, subdivision 26,
is amended to read:


Subd. 26.

Alternative teacher compensation aid.

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

$
deleted text begin 89,863,000 deleted text end new text begin
90,131,000
new text end
.....
2018
$
deleted text begin 89,623,000
deleted text end new text begin 90,636,000
new text end
.....
2019

The 2018 appropriation includes $8,917,000 for 2017 and deleted text begin$80,946,000deleted text endnew text begin $81,214,000new text end for
2018.

The 2019 appropriation includes deleted text begin$8,994,000deleted text endnew text begin $9,023,000new text end for 2018 and deleted text begin$80,629,000deleted text endnew text begin
$81,613,000
new text end for 2019.

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 122A.63, subdivisions 7 and 8, new text end new text begin are repealed.
new text end

ARTICLE 3

SPECIAL EDUCATION

Section 1.

Minnesota Statutes 2016, section 125A.76, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section and section 125A.79,
the definitions in this subdivision apply.

(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the
purposes of computing basic revenue pursuant to this section, each child with a disability
shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural liaisons, related services, and support
services staff providing services to students. Essential personnel may also include special
education paraprofessionals or clericals providing support to teachers and students by
preparing paperwork and making arrangements related to special education compliance
requirements, including parent meetings and individualized education programs. Essential
personnel does not include administrators and supervisors.

(d) "Average daily membership" has the meaning given it in section 126C.05.

(e) "Program growth factor" means deleted text begin1.046 for fiscal years 2012 through 2015, 1.0 for
fiscal year 2016, 1.046 for fiscal year 2017, and
deleted text end the product of 1.046 and the program growth
factor for the previous year for fiscal year 2018 and later.

(f) "Nonfederal special education expenditure" means all direct expenditures that are
necessary and essential to meet the district's obligation to provide special instruction and
services to children with a disability according to sections 124D.454, 125A.03 to 125A.24,
125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by the
department under section 125A.75, subdivision 4, excluding expenditures:

(1) reimbursed with federal funds;

(2) reimbursed with other state aids under this chapter;

(3) for general education costs of serving students with a disability;

(4) for facilities;

(5) for pupil transportation; and

(6) for postemployment benefits.

(g) "Old formula special education expenditures" means expenditures eligible for revenue
under Minnesota Statutes 2012, section 125A.76, subdivision 2.

(h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and fringe
benefits of one-to-one instructional and behavior management aides and one-to-one licensed,
certified professionals assigned to a child attending the academy, if the aides or professionals
are required by the child's individualized education program.

deleted text begin (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year 2014 and
2.27 percent for fiscal year 2015.
deleted text end

deleted text begin (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48 for fiscal
year 2015.
deleted text end

deleted text begin (k)deleted text endnew text begin (i)new text end "Special education aid increase limit" means deleted text begin$80 for fiscal year 2016, $100deleted text endnew text begin $210new text end
for fiscal year deleted text begin2017deleted text endnew text begin 2019new text end, and, for fiscal year deleted text begin2018deleted text endnew text begin 2020new text end and later, the sum of the special
education aid increase limit for the previous fiscal year and $40.

deleted text begin (l)deleted text endnew text begin (j)new text end "District" means a school district, a charter school, or a cooperative unit as defined
in section 123A.24, subdivision 2. Notwithstanding section 123A.26, cooperative units as
defined in section 123A.24, subdivision 2, are eligible to receive special education aid under
this section and section 125A.79.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 2.

Minnesota Statutes 2016, section 125A.76, subdivision 2a, is amended to read:


Subd. 2a.

Special education initial aid.

For fiscal year deleted text begin2016deleted text endnew text begin 2019new text end and later, a district's
special education initial aid equals the sum of:

(1) the deleted text beginleastdeleted text endnew text begin lessernew text end of deleted text begin62 percent of the district's old formula special education
expenditures for the prior fiscal year, excluding pupil transportation expenditures,
deleted text end 50 percent
of the district's nonfederal special education expenditures for the prior year, excluding pupil
transportation expenditures, or 56 percent of the product of the sum of the following amounts,
computed using prior fiscal year data, and the program growth factor:

(i) the product of the district's average daily membership served and the sum of:

(A) $450; plus

(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1 who
are eligible to receive free lunch plus one-half of the pupils enrolled on October 1 who are
eligible to receive reduced-price lunch to the total October 1 enrollment; plus

(C) .008 times the district's average daily membership served; plus

(ii) deleted text begin$10,400deleted text endnew text begin $13,300new text end times the December 1 child count for the primary disability areas
of autism spectrum disorders, developmental delay, and severely multiply impaired; plus

(iii) deleted text begin$18,000deleted text endnew text begin $19,200new text end times the December 1 child count for the primary disability areas
of deaf and hard-of-hearing and emotional or behavioral disorders; plus

(iv) deleted text begin$27,000deleted text endnew text begin $25,200new text end times the December 1 child count for the primary disability areas
of developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
physically impaired, visually impaired, and deafblind; plus

(2) the cost of providing transportation services for children with disabilities under
section 123B.92, subdivision 1, paragraph (b), clause (4).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 3.

Minnesota Statutes 2016, section 125A.79, subdivision 5, is amended to read:


Subd. 5.

Excess cost aid.

For fiscal year deleted text begin2016deleted text endnew text begin 2019new text end and later, a district's excess cost
aid equals the greater of:

(1) 56 percent of the difference between (i) the district's unreimbursed nonfederal special
education expenditures and (ii) 7.0 percent of the product of the ratio of $5,831 to the formula
allowance for the prior year and the district's general revenue;

(2) 62 percent of the difference between (i) the district's unreimbursed old formula special
education expenditures and (ii) deleted text begin2.5deleted text endnew text begin 2.3new text end percent of the product of the ratio of $5,831 to the
formula allowance for the prior year and the district's general revenue; or

(3) zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 4.

Laws 2017, First Special Session chapter 5, article 4, section 12, subdivision 2, as
amended by Laws 2017, First Special Session chapter 7, section 12, is amended to read:


Subd. 2.

Special education; regular.

For special education aid under Minnesota Statutes,
section 125A.75:

$
deleted text begin 1,341,161,000 deleted text end new text begin
1,366,903,000
new text end
.....
2018
$
deleted text begin 1,426,827,000
deleted text end new text begin 1,484,860,000
new text end
.....
2019

The 2018 appropriation includes $156,403,000 for 2017 and deleted text begin$1,184,758,000deleted text endnew text begin
$1,210,500,000
new text end for 2018.

The 2019 appropriation includes deleted text begin$166,667,000deleted text endnew text begin $170,291,000new text end for 2018 and
deleted text begin $1,260,160,000deleted text endnew text begin $1,314,569,000new text end for 2019.

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2016, section 123B.595, is amended by adding a subdivision
to read:


new text begin Subd. 13. new text end

new text begin Allocation from districts participating in agreements for secondary
education or interdistrict cooperation.
new text end

new text begin For purposes of this section, a district with revenue
authority under subdivision 1 for indoor air quality, fire alarm and suppression, and asbestos
abatement projects under section 123B.57, subdivision 6, with an estimated cost of $100,000
or more per site and that participates in an agreement under section 123A.30 or 123A.32
may allocate the revenue authority among participating districts.
new text end

Sec. 2.

Minnesota Statutes 2016, section 123B.61, is amended to read:


123B.61 PURCHASE OF CERTAIN EQUIPMENT.

new text begin (a) new text endThe board of a district may issue general obligation certificates of indebtedness or
capital notes subject to the district debt limits to:

deleted text begin (a)deleted text endnew text begin (1)new text end purchase vehicles, computers, telephone systems, cable equipment, photocopy
and office equipment, technological equipment for instruction, new text beginpublic announcement systems,
emergency communications devices, other equipment related to violence prevention and
facility security,
new text endand other capital equipment having an expected useful life at least as long
as the terms of the certificates or notes;

deleted text begin (b)deleted text endnew text begin (2)new text end purchase computer hardware and software, without regard to its expected useful
life, whether bundled with machinery or equipment or unbundled, together with application
development services and training related to the use of the computer; and

deleted text begin (c)deleted text endnew text begin (3)new text end prepay special assessments.

new text begin (b) new text endThe certificates or notes must be payable in not more than ten years and must be
issued on the terms and in the manner determined by the board, except that certificates or
notes issued to prepay special assessments must be payable in not more than 20 years. The
certificates or notes may be issued by resolution and without the requirement for an election.
The certificates or notes are general obligation bonds for purposes of section 126C.55.

new text begin (c) new text endA tax levy must be made for the payment of the principal and interest on the
certificates or notes, in accordance with section 475.61, as in the case of bonds. The sum
of the tax levies under this section and section 123B.62 for each year must not exceed the
lesser new text beginof the sum new text endof the amount of the district's total operating capital revenuenew text begin and safe
schools revenue
new text end or the sum of the district's levy in the general and community service funds
excluding the adjustments under this section for the year preceding the year the initial debt
service levies are certified.

new text begin (d) new text endThe district's general fund levy for each year must be reduced by the sum ofnew text begin:
new text end

(1) the amount of the tax levies for debt service certified for each year for payment of
the principal and interest on the certificates or notes issued under this section as required
by section 475.61deleted text begin,deleted text endnew text begin;
new text end

(2) the amount of the tax levies for debt service certified for each year for payment of
the principal and interest on bonds issued under section 123B.62deleted text begin,deleted text endnew text begin;new text end and

(3) any excess amount in the debt redemption fund used to retire bonds, certificates, or
notes issued under this section or section 123B.62 after April 1, 1997, other than amounts
used to pay capitalized interest.

new text begin (e)new text end If the district's general fund levy is less than the amount of the reduction, the balance
shall be deducted first from the district's community service fund levy, and next from the
district's general fund or community service fund levies for the following year.

new text begin (f)new text end A district using an excess amount in the debt redemption fund to retire the certificates
or notes shall report the amount used for this purpose to the commissioner by July 15 of the
following fiscal year. A district having an outstanding capital loan under section 126C.69
or an outstanding debt service loan under section 126C.68 must not use an excess amount
in the debt redemption fund to retire the certificates or notes.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

ARTICLE 5

LIBRARIES

Section 1.

Minnesota Statutes 2016, section 134.355, subdivision 10, is amended to read:


Subd. 10.

Award of funds.

The commissioner of education shall develop an application
and a reporting form and procedures for regional library telecommunications aid. Aid shall
be based on actual costs including, but not limited to, connections, as documented in e-rate
funding commitment decision letters for category one services and acceptable documentation
for category two services and funds available for this purpose. The commissioner shall make
payments directly to the regional public library system.new text begin Any unspent funds must be
transferred to telecommunications equity aid under section 125B.26 and made available to
districts or charter schools that employ a licensed media specialist or licensed librarian.
new text end

ARTICLE 6

EARLY CHILDHOOD AND FAMILY SUPPORT

Section 1.

Minnesota Statutes 2016, section 124D.151, subdivision 2, is amended to read:


Subd. 2.

Program requirements.

(a) A voluntary prekindergarten program provider
must:

(1) provide instruction through play-based learning to foster children's social and
emotional development, cognitive development, physical and motor development, and
language and literacy skills, including the native language and literacy skills of English
learners, to the extent practicable;

(2) measure each child's cognitive and social skills using a formative measure aligned
to the state's early learning standards when the child enters and again before the child leaves
the program, screening and progress monitoring measures, and deleted text beginothersdeleted text endnew text begin other age-appropriate
versions
new text end from the state-approved menu of kindergarten entry profile measures;

(3) provide comprehensive program content including the implementation of curriculum,
assessment, and instructional strategies aligned with the state early learning standards, and
kindergarten through grade 3 academic standards;

(4) provide instructional content and activities that are of sufficient length and intensity
to address learning needs including offering a program with at least 350 hours of instruction
per school year for a prekindergarten student;

(5) provide voluntary prekindergarten instructional staff salaries comparable to the
salaries of local kindergarten through grade 12 instructional staff;

(6) coordinate appropriate kindergarten transition with families, community-based
prekindergarten programs, and school district kindergarten programs;

(7) involve parents in program planning and transition planning by implementing parent
engagement strategies that include culturally and linguistically responsive activities in
prekindergarten through third grade that are aligned with early childhood family education
under section 124D.13;

(8) coordinate with relevant community-based services, including health and social
service agencies, to ensure children have access to comprehensive services;

(9) coordinate with all relevant school district programs and services including early
childhood special education, homeless students, and English learners;

(10) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children;

(11) provide high-quality coordinated professional development, training, and coaching
for both school district and community-based early learning providers that is informed by
a measure of adult-child interactions and enables teachers to be highly knowledgeable in
early childhood curriculum content, assessment, native and English language development
programs, and instruction; and

(12) implement strategies that support the alignment of professional development,
instruction, assessments, and prekindergarten through grade 3 curricula.

(b) A voluntary prekindergarten program must have teachers knowledgeable in early
childhood curriculum content, assessment, native and English language programs, and
instruction.

(c) Districts and charter schools must include their strategy for implementing and
measuring the impact of their voluntary prekindergarten program under section 120B.11
and provide results in their world's best workforce annual summary to the commissioner of
education.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 124D.151, subdivision 5, is amended
to read:


Subd. 5.

Application process; priority for high poverty schools.

(a) deleted text beginTo qualify for
program approval for fiscal year 2017, a district or charter school must submit an application
to the commissioner by July 1, 2016.
deleted text end To qualify for program approval for deleted text beginfiscal year 2018
and later
deleted text endnew text begin voluntary prekindergarten under this section or school readiness plus under section
124D.152
new text end, a district or charter school must submit an application to the commissioner by
January 30 of the fiscal year prior to the fiscal year in which the program will be
implemented. The application must include:

(1) a description of the proposed program, including the number of hours per week the
program will be offered at each school site or mixed-delivery location;

(2) an estimate of the number of eligible children to be served in the program at each
school site or mixed-delivery location; and

(3) a statement of assurances signed by the superintendent or charter school director that
the proposed program meets the requirements of subdivision 2new text begin or section 124D.152,
subdivision 2
new text end.

(b) The commissioner must review all applications submitted deleted text beginfor fiscal year 2017 by
August 1, 2016, and must review all applications submitted for fiscal year 2018 and later
deleted text end
by March 1 of the fiscal year in which the applications are received and determine whether
each application meets the requirements of paragraph (a).

(c) The commissioner must divide all applications for new or expanded voluntary
prekindergarten programs under this section new text beginand school readiness plus programs under
section 124D.152
new text endmeeting the requirements of paragraph (a) deleted text beginand school readiness plus
programs
deleted text end into deleted text beginfourdeleted text endnew text begin fivenew text end groups as follows: the Minneapolis deleted text beginanddeleted text endnew text begin school district; thenew text end St. Paul
school deleted text begindistrictsdeleted text endnew text begin districtnew text end; other school districts located in the metropolitan equity region as
defined in section 126C.10, subdivision 28; school districts located in the rural equity region
as defined in section 126C.10, subdivision 28; and charter schools. Within each group, the
applications must be ordered by rank using a sliding scale based on the following criteria:

(1) concentration of kindergarten students eligible for free or reduced-price lunches by
school site on October 1 of the previous school year. A school site may contract to partner
with a community-based provider or Head Start under subdivision 3 or establish an early
childhood center and use the concentration of kindergarten students eligible for free or
reduced-price meals from a specific school site as long as those eligible children are
prioritized and guaranteed services at the mixed-delivery site or early education center. For
school district programs to be operated at locations that do not have free and reduced-price
lunch concentration data for kindergarten programs for October 1 of the previous school
year, including mixed-delivery programs, the school district average concentration of
kindergarten students eligible for free or reduced-price lunches must be used for the rank
ordering;

(2) presence or absence of a three- or four-star Parent Aware rated program within the
school district or close proximity of the district. School sites with the highest concentration
of kindergarten students eligible for free or reduced-price lunches that do not have a three-
or four-star Parent Aware program within the district or close proximity of the district shall
receive the highest priority, and school sites with the lowest concentration of kindergarten
students eligible for free or reduced-price lunches that have a three- or four-star Parent
Aware rated program within the district or close proximity of the district shall receive the
lowest priority; and

(3) whether the district has implemented a mixed delivery system.

(d) The limit on participation for the programs as specified in subdivision 6 must initially
be allocated among the deleted text beginfourdeleted text endnew text begin fivenew text end groups based on each group's percentage share of the
statewide kindergarten enrollment on October 1 of the previous school year. Within each
group, the participation limit deleted text beginfor fiscal years 2018 and 2019deleted text end must first be allocated to school
sites approved for aid in the previous year to ensure that those sites are funded for the same
number of participants as approved for the previous year. The remainder of the participation
limit for each group must be allocated among school sites in priority order until that region's
share of the participation limit is reached. If the participation limit is not reached for all
groups, the remaining amount must be allocated to the highest priority school sites, as
designated under this section, not funded in the initial allocation on a statewide basis. deleted text beginFor
fiscal year 2020 and later, the participation limit must first be allocated to school sites
approved for aid in fiscal year 2017, and then to school sites approved for aid in fiscal year
2018 based on the statewide rankings under paragraph (c).
deleted text end

(e) Once a school site or a mixed delivery site under subdivision 3 is approved for aid
under this subdivision, it shall remain eligible for aid if it continues to meet program
requirements, regardless of changes in the concentration of students eligible for free or
reduced-price lunches.

(f) If the total number of participants approved based on applications submitted under
paragraph (a) is less than the participation limit under subdivision 6, the commissioner must
notify all school districts and charter schools of the amount that remains available within
30 days of the initial application deadline under paragraph (a), and complete a second round
of allocations based on applications received within 60 days of the initial application deadline.

(g) Procedures for approving applications submitted under paragraph (f) shall be the
same as specified in paragraphs (a) to (d), except that the allocations shall be made to the
highest priority school sites not funded in the initial allocation on a statewide basis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2020 and later.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 124D.151, subdivision 6, is amended
to read:


Subd. 6.

Participation limits.

(a) Notwithstanding section 126C.05, subdivision 1,
paragraph deleted text begin(d)deleted text endnew text begin (c)new text end, the pupil units for a voluntary prekindergarten program for an eligible
school district or charter school must not exceed 60 percent of the kindergarten pupil units
for that school district or charter school under section 126C.05, subdivision 1, paragraph
deleted text begin (e)deleted text endnew text begin (d)new text end.

(b) In reviewing applications under subdivision 5, deleted text beginthe commissioner must limit the
estimated state aid entitlement approved under this section to $27,092,000 for fiscal year
2017. If the actual state aid entitlement based on final data exceeds the limit in any year,
the aid of the participating districts must be prorated so as not to exceed the limit.
deleted text end

deleted text begin (c) The commissioner must limit the total number of funded participants in the voluntary
prekindergarten program under this section to not more than 3,160.
deleted text end

deleted text begin (d) Notwithstanding paragraph (c),deleted text end the commissioner must limit the total number of
participants in the voluntary prekindergarten and school readiness plus programs to not
more than 6,160 participants for fiscal year 2018 and 7,160 participants for fiscal year 2019.new text begin
For fiscal year 2020 and later, the commissioner must limit the total number of participants
in the voluntary prekindergarten and school readiness plus programs to not more than 105
percent of the participation limit for the previous fiscal year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin The changes to paragraph (a) of this subdivision are effective for
revenue for fiscal year 2019 and later. The changes to paragraphs (b) to (d) are effective
for revenue for fiscal year 2020 and later.
new text end

Sec. 4.

Minnesota Statutes 2017 Supplement, section 124D.165, subdivision 2, is amended
to read:


Subd. 2.

Family eligibility.

(a) For a family to receive an early learning scholarship,
parents or guardians must meet the following eligibility requirements:

(1) have an eligible child; and

(2) have income equal to or less than 185 percent of federal poverty level income in the
current calendar year, or be able to document their child's current participation in the free
and reduced-price lunch program or Child and Adult Care Food Program, National School
Lunch Act, United States Code, title 42, sections 1751 and 1766; the Food Distribution
Program on Indian Reservations, Food and Nutrition Act, United States Code, title 7, sections
2011-2036; Head Start under the federal Improving Head Start for School Readiness Act
of 2007; Minnesota family investment program under chapter 256J; child care assistance
programs under chapter 119B; the supplemental nutrition assistance program; or placement
in foster care under section 260C.212.

(b) An "eligible child" means a child who has not yet enrolled in kindergarten and is:

(1) deleted text beginat least three butdeleted text end not yet five years of age on September 1 of the current school year;

deleted text begin (2) a sibling from birth to age five of a child who has been awarded a scholarship under
this section provided the sibling attends the same program as long as funds are available;
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end the child of a parent under age 21 who is pursuing a high school degree or a
course of study for a high school equivalency test; or

deleted text begin (4)deleted text endnew text begin (3)new text end homeless, in foster care, or in need of child protective services.

(c) A child who has received a scholarship under this section must continue to receive
a scholarship each year until that child is eligible for kindergarten under section 120A.20
and as long as funds are available.

(d) Early learning scholarships may not be counted as earned income for the purposes
of medical assistance under chapter 256B, MinnesotaCare under chapter 256L, Minnesota
family investment program under chapter 256J, child care assistance programs under chapter
119B, or Head Start under the federal Improving Head Start for School Readiness Act of
2007.

(e) A child from an adjoining state whose family resides at a Minnesota address as
assigned by the United States Postal Service, who has received developmental screening
under sections 121A.16 to 121A.19, who intends to enroll in a Minnesota school district,
and whose family meets the criteria of paragraph (a) is eligible for an early learning
scholarship under this section.

Sec. 5.

Minnesota Statutes 2017 Supplement, section 124D.165, subdivision 3, is amended
to read:


Subd. 3.

Administration.

(a) The commissioner shall establish application timelines
and determine the schedule for awarding scholarships that meets operational needs of eligible
families and programs. The commissioner must give highest priority to applications from
children who:

(1) have a parent under age 21 who is pursuing a high school diploma or a course of
study for a high school equivalency test;

(2) are in foster care or otherwise in need of protection or services; or

(3) have experienced homelessness in the last 24 months, as defined under the federal
McKinney-Vento Homeless Assistance Act, United States Code, title 42, section 11434a.

The commissioner may prioritize applications on additional factors including family
income, geographic location, and whether the child's family is on a waiting list for a publicly
funded program providing early education or child care services.

(b) The commissioner shall establish a target for the average scholarship amount per
child based on the results of the rate survey conducted under section 119B.02.

(c) A four-star rated program that has children eligible for a scholarship enrolled in or
on a waiting list for a program beginning in July, August, or September may notify the
commissioner, in the form and manner prescribed by the commissioner, each year of the
program's desire to enhance program services or to serve more children than current funding
provides. The commissioner may designate a predetermined number of scholarship slots
for that program and notify the program of that number. For fiscal year 2018 and later, the
statewide amount of funding directly designated by the commissioner must not exceed the
funding directly designated for fiscal year 2017. Beginning July 1, 2016, a school district
or Head Start program qualifying under this paragraph may use its established registration
process to enroll scholarship recipients and may verify a scholarship recipient's family
income in the same manner as for other program participants.

(d) A scholarship is awarded for a 12-month period. If the scholarship recipient has not
been accepted and subsequently enrolled in a rated program within ten months of the
awarding of the scholarship, the scholarship cancels and the recipient must reapply in order
to be eligible for another scholarship. A child may not be awarded more than one scholarship
in a 12-month period.

(e) A child who receives a scholarship who has not completed development screening
under sections 121A.16 to 121A.19 must complete that screening within 90 days of first
attending an eligible program.

(f) For fiscal year 2017 and later, a school district or Head Start program enrolling
scholarship recipients under paragraph (c) may apply to the commissioner, in the form and
manner prescribed by the commissioner, for direct payment of state aid. Upon receipt of
the application, the commissioner must pay each program directly for each approved
scholarship recipient enrolled under paragraph (c) according to the metered payment system
or another schedule established by the commissioner.

new text begin (g) Any balance in the first year does not cancel but is available in the second year. Any
balance in the second year does not cancel and may be carried forward until October 1 of
the following fiscal year.
new text end

Sec. 6.

new text begin [124D.176] HELP ME GROW PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of this section is to develop and implement a
comprehensive and collaborative access, information, referral, and follow-up system for
pregnant and parenting families with children from birth to age 8.
new text end

new text begin Subd. 2. new text end

new text begin Establishment and administration. new text end

new text begin The commissioner of education shall
provide funding and shall work cooperatively through interagency agreements with the
commissioners of human services and health to implement this section.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The Help Me Grow program shall facilitate collaboration across
sectors, including child health, early learning and education, and family supports by:
new text end

new text begin (1) providing child health care provider outreach to support early detection, intervention,
and knowledge about local resources;
new text end

new text begin (2) identifying and providing access to detection tools used to identify young children
at risk for developmental and behavioral problems; and
new text end

new text begin (3) linking children and families to appropriate community-based services, including
those that promote family economic stability.
new text end

new text begin (b) The Help Me Grow program shall provide community outreach that includes support
for, and participation in, the Help Me Grow program, including disseminating information
on the program and compiling and maintaining a resource directory consistent with section
256.975, subdivision 7, paragraph (b), clauses (1) and (2), that includes but is not limited
to:
new text end

new text begin (1) primary and specialty medical care providers;
new text end

new text begin (2) early childhood education and child care programs;
new text end

new text begin (3) developmental disabilities assessment and intervention programs;
new text end

new text begin (4) mental health services;
new text end

new text begin (5) family and social support programs;
new text end

new text begin (6) child advocacy and legal services;
new text end

new text begin (7) public health services and resources; and
new text end

new text begin (8) other appropriate early childhood information.
new text end

new text begin (c) The Help Me Grow program shall develop a centralized access point for parents and
professionals to obtain information, resources, and other support services.
new text end

new text begin (d) The Help Me Grow program shall collect data to increase understanding of all aspects
of the current and ongoing system under this section, including identification of gaps in
service, barriers to finding and receiving appropriate service, and lack of resources.
new text end

new text begin Subd. 4. new text end

new text begin Review. new text end

new text begin The Departments of Education, Health, and Human Services must
annually review the following:
new text end

new text begin (1) outcomes achieved by the Help Me Grow program;
new text end

new text begin (2) alignment with overall early childhood goals and objectives; and
new text end

new text begin (3) impacts on young children.
new text end

Sec. 7.

Minnesota Statutes 2017 Supplement, section 126C.05, subdivision 1, is amended
to read:


Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the age
of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), in
average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
chapter 124E; or for whom the resident district pays tuition under section 123A.18, 123A.22,
123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03
to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by
the commissioner and has an individualized education program is counted as the ratio of
the number of hours of assessment and education service to 825 times 1.0 with a minimum
average daily membership of 0.28, but not more than 1.0 pupil unit.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is counted
as the ratio of the number of hours of assessment service to 825 times 1.0.

deleted text begin (c) A kindergarten pupil with a disability who is enrolled in a program approved by the
commissioner is counted as the ratio of the number of hours of assessment and education
services required in the fiscal year by the pupil's individualized education program to 875,
but not more than one.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end A prekindergarten pupil who is not included in paragraph (a) or (b) and is enrolled
in an approved voluntary prekindergarten program under section 124D.151 is counted as
the ratio of the number of hours of instruction to 850 times 1.0, but not more than 0.6 pupil
units.

deleted text begin (e)deleted text endnew text begin (d)new text end A kindergarten pupil deleted text beginwho is not included in paragraph (c)deleted text end is counted as 1.0 pupil
unit if the pupil is enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
section 120A.41, or is counted as .55 pupil unit, if the pupil is not enrolled in a free all-day,
every day kindergarten program available to all kindergarten pupils at the pupil's school.

deleted text begin (f)deleted text endnew text begin (e)new text end A pupil who is in any of grades 1 to 6 is counted as 1.0 pupil unit.

deleted text begin (g)deleted text endnew text begin (f)new text end A pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

deleted text begin (h)deleted text endnew text begin (g)new text end A pupil who is in the postsecondary enrollment options program is counted as
1.2 pupil units.

deleted text begin (i)deleted text endnew text begin (h)new text end deleted text beginFor fiscal years 2018 and 2019 only,deleted text end A prekindergarten pupil who:

(1) is not included in paragraph (a), (b), or (d);

(2) is enrolled in a school readiness plus program; and

(3) has one or more of the risk factors specified by the eligibility requirements for a
school readiness plus program,

is counted as the ratio of the number of hours of instruction to 850 times 1.0, but not more
than 0.6 pupil units. A pupil qualifying under this paragraph must be counted in the same
manner as a voluntary prekindergarten student for all general education and other school
funding formulas.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 8.

Minnesota Statutes 2016, section 126C.10, subdivision 2d, is amended to read:


Subd. 2d.

Declining enrollment revenue.

(a) A school district's declining enrollment
revenue equals the greater of zero or the product of: (1) 28 percent of the formula allowance
for that year and (2) the difference between the adjusted pupil units for the preceding year
and the adjusted pupil units for the current year.

(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
district or charter school in which the pupil was last counted in average daily membership.

(c) Notwithstanding paragraph (a), for fiscal years 2017, 2018, and 2019 only,
prekindergarten pupil units under section 126C.05, subdivision 1, paragraph deleted text begin(d)deleted text endnew text begin (c)new text end, must
be excluded from the calculation of declining enrollment revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 9.

Minnesota Statutes 2016, section 126C.126, is amended to read:


126C.126 USE OF GENERAL EDUCATION REVENUE FOR ALL-DAY
KINDERGARTEN AND PREKINDERGARTEN.

A school district may spend general education revenue on extended time kindergarten
and prekindergarten programs. At the school board's discretion, the district may use revenue
generated by the all-day kindergarten pupil count under section 126C.05, subdivision 1,
paragraph deleted text begin(d)deleted text endnew text begin (c)new text end, to meet the needs of three- and four-year-olds in the district. A school
district may not use these funds on programs for three- and four-year-old children while
maintaining a fee-based all-day kindergarten program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2019 and later.
new text end

Sec. 10.

Minnesota Statutes 2016, section 245C.02, is amended by adding a subdivision
to read:


new text begin Subd. 5a. new text end

new text begin National criminal history record check. new text end

new text begin (a) "National criminal history record
check" means a check of records maintained by the Federal Bureau of Investigation through
submission of fingerprints through the Minnesota Bureau of Criminal Apprehension to the
Federal Bureau of Investigation when specifically required by law.
new text end

new text begin (b) For purposes of this chapter, "national crime information database," "national criminal
records repository," "criminal history with the Federal Bureau of Investigation," and "national
criminal record check" mean a national criminal history record check defined in paragraph
(a).
new text end

Sec. 11.

Minnesota Statutes 2017 Supplement, section 245C.08, subdivision 1, is amended
to read:


Subdivision 1.

Background studies conducted by Department of Human Services.

(a) For a background study conducted by the Department of Human Services, the
commissioner shall review:

(1) information related to names of substantiated perpetrators of maltreatment of
vulnerable adults that has been received by the commissioner as required under section
626.557, subdivision 9c, paragraph (j);

(2) the commissioner's records relating to the maltreatment of minors in licensed
programs, and from findings of maltreatment of minors as indicated through the social
service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals listed
in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;

(4) information from the Bureau of Criminal Apprehension, including information
regarding a background study subject's registration in Minnesota as a predatory offender
under section 243.166;

(5) except as provided in clause (6), information received as a result of submission of
fingerprints for a national criminal history record check, when the commissioner has
reasonable cause as defined under section 245C.05, subdivision 5, or as required under
section 144.057, subdivision 1, clause (2);

(6) for a background study related to a child foster care application for licensure, a
transfer of permanent legal and physical custody of a child under sections 260C.503 to
260C.515, or adoptions, and for a background study required for family child care, certified
license-exempt child care, child care centers, deleted text beginanddeleted text end legal nonlicensed child care authorized
under chapter 119B, new text beginand Head Start programs new text endthe commissioner shall also review:

(i) information from the child abuse and neglect registry for any state in which the
background study subject has resided for the past five years; and

(ii) when the background study subject is 18 years of age or older, information received
following submission of fingerprints for a national criminal history record check; and

(7) for a background study required for family child care, certified license-exempt child
care centers, licensed child care centers, deleted text beginanddeleted text end legal nonlicensed child care authorized under
chapter 119B, new text beginand Head Start programs, new text endthe background study shall also include a name
and date-of-birth search of the National Sex Offender Public Web site.

(b) Notwithstanding expungement by a court, the commissioner may consider information
obtained under paragraph (a), clauses (3) and (4), unless the commissioner received notice
of the petition for expungement and the court order for expungement is directed specifically
to the commissioner.

(c) The commissioner shall also review criminal case information received according
to section 245C.04, subdivision 4a, from the Minnesota court information system that relates
to individuals who have already been studied under this chapter and who remain affiliated
with the agency that initiated the background study.

(d) When the commissioner has reasonable cause to believe that the identity of a
background study subject is uncertain, the commissioner may require the subject to provide
a set of classifiable fingerprints for purposes of completing a fingerprint-based record check
with the Bureau of Criminal Apprehension. Fingerprints collected under this paragraph
shall not be saved by the commissioner after they have been used to verify the identity of
the background study subject against the particular criminal record in question.

(e) The commissioner may inform the entity that initiated a background study under
NETStudy 2.0 of the status of processing of the subject's fingerprints.

Sec. 12.

Minnesota Statutes 2016, section 245C.12, is amended to read:


245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.

(a) For the purposes of background studies completed by tribal organizations performing
licensing activities otherwise required of the commissioner under this chapter, after obtaining
consent from the background study subject, tribal licensing agencies shall have access to
criminal history data in the same manner as county licensing agencies and private licensing
agencies under this chapter.

(b) Tribal organizations may contract with the commissioner to obtain background study
data on individuals under tribal jurisdiction related to adoptions according to section 245C.34.
Tribal organizations may also contract with the commissioner to obtain background study
data on individuals under tribal jurisdiction related to child foster care according to section
245C.34.

(c) For the purposes of background studies completed to comply with a tribal
organization's licensing requirements for individuals affiliated with a tribally licensed nursing
facility, the commissioner shall obtain criminal history data from the National Criminal
Records Repository in accordance with section 245C.32.

new text begin (d) Tribal organizations may contract with the commissioner to conduct background
studies or obtain background study data on individuals affiliated with a child care program
sponsored, managed, or licensed by a tribal organization. Studies conducted under this
paragraph require the commissioner to conduct a national criminal history record check as
defined in section 245C.02, subdivision 5a. Any tribally affiliated child care program that
does not contract with the commissioner to conduct background studies is exempt from the
relevant requirements in this chapter. A study conducted under this paragraph must include
all components of studies for certified license-exempt child care centers under this chapter
to be transferable to other child care entities.
new text end

Sec. 13.

new text begin [245C.121] BACKGROUND STUDY; HEAD START PROGRAMS.
new text end

new text begin Head Start programs that receive funding disbursed under section 119A.52 may contract
with the commissioner to conduct background studies and obtain background study data
on individuals affiliated with a Head Start program. Studies conducted under this paragraph
require the commissioner to conduct a national criminal history record check as defined in
section 245C.02, subdivision 5a. Any Head Start program site that does not contract with
the commissioner, is not licensed, and is not registered to receive funding under chapter
119B is exempt from the relevant requirements in this chapter. Nothing in this paragraph
supersedes requirements for background studies in this chapter, chapter 119B, or child care
centers under chapter 245H that are related to licensed child care programs or programs
registered to receive funding under chapter 119B. A study conducted under this paragraph
must include all components of studies for certified license-exempt child care centers under
this chapter to be transferable to other child care entities.
new text end

Sec. 14.

Laws 2017, First Special Session chapter 5, article 8, section 9, subdivision 2, is
amended to read:


Subd. 2.

Program requirements.

A school readiness plus program provider must:

(1) assess each child's cognitive and language skills with deleted text beginadeleted text endnew text begin an age-appropriatenew text end
comprehensive child assessment instrument when the child enters and again before the child
leaves the program to improve program planning and implementation, communicate with
parents, and promote kindergarten readiness;

(2) provide comprehensive program content and intentional instructional practice aligned
with the state early childhood learning guidelines and kindergarten standards and based on
early childhood research and professional practice that is focused on children's cognitive,
social, emotional, and physical skills and development and prepares children for the transition
to kindergarten, including early literacy and language skills;

(3) coordinate appropriate kindergarten transition with parents and kindergarten teachers;

(4) involve parents in program planning and decision making;

(5) coordinate with relevant community-based services;

(6) cooperate with adult basic education programs and other adult literacy programs;

(7) ensure staff-to-child ratios of one-to-ten and a maximum group size of 20 children
with at least one licensed teacher;

(8) have teachers knowledgeable in early childhood curriculum content, assessment,
native and English language development programs, and instruction; and

(9) provide instructional content and activities that are of sufficient length and intensity
to address learning needs including offering a program with at least 350 hours of instruction
per school year.

Sec. 15.

Laws 2017, First Special Session chapter 5, article 8, section 9, subdivision 5, is
amended to read:


Subd. 5.

Application process; priority for high poverty schools.

deleted text begin (a) For 2017-2018
school year, a school district or charter school that did not apply to participate in a voluntary
prekindergarten program under Minnesota Statutes, section 124D.151, may apply to the
commissioner by July 1, 2017, to participate in a school readiness plus program in the form
and manner specified by the commissioner. By June 15, 2017, the commissioner must notify
districts and charter schools of the availability of additional money for voluntary
prekindergarten and school readiness plus programs. A school district or charter school that
previously applied to participate in a voluntary prekindergarten program may amend its
application by July 1, 2017, to apply instead for school readiness plus. The commissioner
must review all applications for school readiness plus and notify applicant districts and
charter schools by August 1, 2017, whether they have been selected for participation.
deleted text end

deleted text begin (b) For the 2018-2019 school year, a school district or charter school may apply to the
commissioner by January 30, 2018, to participate in school readiness plus in the form and
manner specified by the commissioner.
deleted text end

deleted text begin (c) A district or charter school submitting an application under this section must include:
(1) a description of the proposed program, including the number of hours per week the
program will be offered at each school site or mixed-delivery location; (2) an estimate of
the number of eligible children to be served in the program at each school site or
mixed-delivery location; (3) the number of children being served that will be new to the
program; and (4) a statement of assurances signed by the superintendent or charter school
director that the proposed program meets the requirements of subdivision 2.
deleted text end

deleted text begin (d) The commissioner must award funding for school readiness plus programs across
school districts and charter schools in the same manner as for the voluntary prekindergarten
program.
deleted text end

deleted text begin (e) A school site or mixed-delivery site approved for aid under this subdivision remains
eligible for aid if the site continues to meet program requirements, regardless of changes in
the concentration of students eligible for free or reduced-price lunches.
deleted text end new text begin Applications for
school readiness plus must be submitted according to Minnesota Statutes, section 124D.151,
subdivision 5.
new text end

Sec. 16.

Laws 2017, First Special Session chapter 5, article 8, section 9, subdivision 6, is
amended to read:


Subd. 6.

No supplanting.

For a site first qualifying in fiscal year 2018 or deleted text begin2019deleted text endnew text begin laternew text end,deleted text begin
mixed delivery revenue, including
deleted text end voluntary prekindergarten and school readiness plus
program revenuedeleted text begin,deleted text end must be used to supplement not supplant existing state, federal, and local
revenue for prekindergarten activities.

Sec. 17. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall codify Laws 2017, First Special Session chapter 5, article
8, section 9, as amended, as Minnesota Statutes, section 124D.152.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin Laws 2017, First Special Session chapter 5, article 8, section 8, the effective date, new text end new text begin is
repealed.
new text end

ARTICLE 7

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2017 Supplement, section 124D.55, is amended to read:


124D.55 COMMISSIONER-SELECTED HIGH SCHOOL EQUIVALENCY TEST
FEES.

The commissioner shall pay deleted text begin60deleted text endnew text begin 100new text end percent of the fee that is charged to an eligible
individual for the full battery of the commissioner-selected high school equivalency tests,
but not more than deleted text begin$40deleted text endnew text begin the lesser of $120 or the cost of one full battery of tests per yearnew text end for
an eligible individual.

deleted text begin For fiscal year 2017 only, the commissioner shall pay 100 percent of the fee charged to
an eligible individual for the full battery of general education development (GED) tests, but
not more than the cost of one full battery of tests per year for any individual.
deleted text end

Sec. 2.

Laws 2017, First Special Session chapter 5, article 10, section 6, subdivision 3, is
amended to read:


Subd. 3.

High school equivalency tests.

new text begin(a) new text endFor payment of deleted text begin60deleted text endnew text begin 100new text end percent of the costs
of the commissioner-selected high school equivalency tests under Minnesota Statutes,
section 124D.55:

$
125,000
.....
2018
$
deleted text begin 125,000
deleted text end new text begin 528,000
new text end
.....
2019

new text begin (b) The base for fiscal year 2020 and later is $528,000.
new text end

ARTICLE 8

STATE AGENCIES

Section 1.

Laws 2017, First Special Session chapter 5, article 11, section 9, subdivision
2, is amended to read:


Subd. 2.

Department.

(a) For the Department of Education:

$
27,158,000
.....
2018
$
deleted text begin 24,874,000
deleted text end new text begin 26,578,000
new text end
.....
2019

Of these amounts:

(1) $231,000 each year is for the Board of School Administrators, and beginning in fiscal
year 2020, the amount indicated is from the educator licensure account in the special revenue
fund;

(2) $1,000,000 each year is for regional centers of excellence under Minnesota Statutes,
section 120B.115;

(3) $500,000 each year is for the school safety technical assistance center under Minnesota
Statutes, section 127A.052;

(4) $250,000 each year is for the School Finance Division to enhance financial data
analysis;

(5) $720,000 each year is for implementing Minnesota's Learning for English Academic
Proficiency and Success Act under Laws 2014, chapter 272, article 1, as amended;

(6) $2,750,000 in fiscal year 2018 and $500,000 in fiscal year 2019 are for the Department
of Education's mainframe update;

new text begin (7) $1,500,000 in fiscal year 2019 is for the Help Me Grow program under Minnesota
Statutes, section 124D.176;
new text end

deleted text begin (7)deleted text endnew text begin (8)new text end $123,000 each year is for a dyslexia specialist; and

deleted text begin (8)deleted text endnew text begin (9)new text end $2,000,000 each year is for legal fees and costs associated with litigation.

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

(c) None of the amounts appropriated under this subdivision may be used for Minnesota's
Washington, D.C. office.

(d) The expenditures of federal grants and aids as shown in the biennial budget document
and its supplements are approved and appropriated and shall be spent as indicated.

(e) This appropriation includes funds for information technology project services and
support subject to the provisions of Minnesota Statutes, section 16E.0466. Any ongoing
information technology costs will be incorporated into the service level agreement and will
be paid to the Office of MN.IT Services by the Department of Education under the rates
and mechanism specified in that agreement.

(f) The agency's base is deleted text begin$22,054,000deleted text endnew text begin $23,758,000new text end for fiscal year 2020 and deleted text begin$21,965,000deleted text endnew text begin
$23,669,000
new text end for 2021.

Sec. 2.

Laws 2017, First Special Session chapter 5, article 11, section 12, is amended to
read:


Sec. 12. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.

(a) The sums in this section are appropriated from the general fund to the Perpich Center
for Arts Education for the fiscal years designated:

$
deleted text begin 8,173,000
deleted text end new text begin 7,573,000
new text end
.....
2018
$
deleted text begin 6,973,000
deleted text end new text begin 7,573,000
new text end
.....
2019

(b) Of the amounts appropriated in paragraph (a), $370,000 is for fiscal years 2018 or
2019 only for arts integration and Turnaround Arts programs.

(c) deleted text begin$1,200,000deleted text endnew text begin $600,000new text end in fiscal year 2018 is for severance payments related to the
closure of Crosswinds school and is available until June 30, 2019.

new text begin (d) $600,000 in fiscal year 2019 only is for technology enhancements and may be used
for the following:
new text end

new text begin (1) computer hardware;
new text end

new text begin (2) computer software;
new text end

new text begin (3) connectivity, communications, and infrastructure;
new text end

new text begin (4) assistive technology;
new text end

new text begin (5) access to electronic books and other online materials, licenses, and subscriptions;
and
new text end

new text begin (6) technology staff and training costs.
new text end

new text begin (e) The base in fiscal year 2020 is $6,973,000.
new text end

APPENDIX

Repealed Minnesota Statutes: 18-4916

122A.63 GRANTS TO PREPARE INDIAN TEACHERS.

Subd. 7.

Loan forgiveness.

The loan may be forgiven if the recipient is employed as a teacher, as defined in section 122A.40 or 122A.41, in an eligible school or program in Minnesota. One-fourth of the principal of the outstanding loan amount shall be forgiven for each year of eligible employment, or a pro rata amount for eligible employment during part of a school year, part-time employment as a substitute teacher, or other eligible part-time teaching. Loans for $2,500 or less may be forgiven at the rate of up to $1,250 per year. The following schools and programs are eligible for the purposes of loan forgiveness:

(1) a school or program operated by a school district;

(2) a tribal contract school eligible to receive aid according to section 124D.83;

(3) a Head Start program;

(4) an early childhood family education program;

(5) a program providing educational services to children who have not entered kindergarten; or

(6) a program providing educational enrichment services to American Indian students in grades kindergarten through 12.

If a person has an outstanding loan obtained through this program, the duty to make payments of principal and interest may be deferred during any time period the person is enrolled at least one-half time in an advanced degree program in a field that leads to employment by a school district. To defer loan obligations, the person shall provide written notification to the commissioner of education and the recipients of the joint grant that originally authorized the loan. Upon approval by the commissioner and the joint grant recipients, payments shall be deferred.

The Minnesota Office of Higher Education shall approve the loan forgiveness program, loan deferral, and procedures to administer the program.

Subd. 8.

Revolving fund.

The Indian teacher preparation loan repayment revolving account is established in the state treasury. Any amounts repaid or contributed by a teacher who received a scholarship or loan under this program shall be deposited in the account. All money in the account is annually appropriated to the commissioner of education and shall be used to enable Indian students to participate in the program.

126C.17 REFERENDUM REVENUE.

Subd. 9a.

Board-approved referendum allowance.

Notwithstanding subdivision 9, a school district may convert up to $300 per adjusted pupil unit of referendum authority from voter approved to board approved by a board vote. A district with less than $300 per adjusted pupil unit of referendum authority after the local optional revenue subtraction under subdivision 1 may authorize new referendum authority up to the difference between $300 per adjusted pupil unit and the district's referendum authority. The board may authorize this levy for up to five years and may subsequently reauthorize that authority in increments of up to five years.

Repealed Minnesota Session Laws: 18-4916

Laws 2017, First Special Session chapter 5, article 8, section 8

Sec. 8.

Minnesota Statutes 2016, section 126C.05, subdivision 1, is amended to read:


new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (i) of this section expires at the end of fiscal year 2019. new text end