HF 630

1st Unofficial Engrossment - 88th Legislature (2013 - 2014) Posted on 04/26/2013 01:24pm

1.1A bill for an act

1.2relating to education finance; providing for early childhood through grade
1.312 education, including general education, student accountability, education
1.4excellence, charter schools, special programs, facilities and technology,
1.5nutrition, libraries and accounting, early childhood education, self-sufficiency
1.6and lifelong learning, state agencies, and forecast adjustments; appropriating
1.7money; requiring reports;amending Minnesota Statutes 2012, sections 13.319,
1.8by adding a subdivision; 120A.20, subdivision 1; 120A.22, subdivisions 5,
1.98, 11, 12; 120A.24, subdivision 1; 120A.41; 120B.02; 120B.125; 120B.128;
1.10120B.30, subdivisions 1, 1a; 120B.36, subdivision 1; 122A.415, by adding
1.11subdivisions; 123A.73, subdivisions 3, 4, 5; 123B.41, subdivision 7; 123B.42,
1.12subdivision 3; 123B.53, subdivision 5; 123B.54; 123B.57, subdivision 4;
1.13123B.591, subdivisions 2, 3; 123B.75, subdivision 5; 123B.92, subdivision
1.149; 124D.02, subdivision 1; 124D.03, subdivision 12; 124D.10, subdivisions
1.1514, 23a; 124D.11, subdivisions 1, 2, 4, 5; 124D.111, subdivision 1, by adding
1.16a subdivision; 124D.119; 124D.128, subdivision 2; 124D.42; 124D.4531;
1.17124D.531, subdivision 1; 124D.65, subdivision 5; 125A.11, subdivision 1;
1.18125A.76, subdivision 4; 125A.79, subdivisions 1, 8; 125B.26, subdivision 4;
1.19126C.05, subdivisions 1, 5, 6, 15; 126C.10, subdivisions 1, 2, 2a, 2c, 3, 7, 8, 13,
1.2013a, 13b, 17, 18, 24, 27, 29, 31, 32, 34, 35, 36, by adding subdivisions; 126C.12,
1.21subdivisions 1, 5; 126C.126; 126C.13, subdivisions 4, 5, by adding subdivisions;
1.22126C.15, subdivisions 1, 2; 126C.17; 126C.20; 126C.40, subdivisions 1, 6;
1.23126C.44; 127A.45, subdivision 2; 127A.47, subdivisions 7, 8; 127A.51; 128D.11,
1.24subdivision 3; 260C.007, subdivision 19; Laws 2007, chapter 146, article 4,
1.25section 12; Laws 2011, First Special Session chapter 11, article 1, section 36,
1.26subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 6, as
1.27amended, 7, as amended, 10, as amended; article 2, sections 13; 14; 18; 19; 50,
1.28subdivisions 2, as amended, 4, as amended, 5, as amended, 6, as amended, 7, as
1.29amended, 9, as amended; article 3, section 11, subdivisions 2, as amended, 3, as
1.30amended, 4, as amended, 5, as amended; article 4, section 10, subdivisions 2, as
1.31amended, 3, as amended, 4, as amended, 6, as amended; article 5, section 12,
1.32subdivisions 2, as amended, 3, as amended, 4, as amended; article 6, section 2,
1.33subdivisions 2, as amended, 3, as amended, 5, as amended; article 7, section 2,
1.34subdivisions 2, as amended, 3, as amended, 4, as amended; article 8, section 2,
1.35subdivisions 2, as amended, 3, as amended; article 9, section 3, subdivision 2, as
1.36amended; proposing coding for new law in Minnesota Statutes, chapters 124D;
1.37126C; repealing Minnesota Statutes 2012, sections 120B.08; 120B.09; 124D.454,
1.38subdivisions 10, 11; 125A.76, subdivision 7; 126C.10, subdivisions 13a, 13b, 25,
1.3926, 28, 31a, 31b, 31c, 34, 35, 36; 126C.17, subdivision 13; 127A.50, subdivisions
2.11, 5; Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2,
2.23, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16; 3501.0040; 3501.0050; 3501.0060;
2.33501.0090; 3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140;
2.43501.0150; 3501.0160; 3501.0170; 3501.0180; 3501.0200; 3501.0210;
2.53501.0220; 3501.0230; 3501.0240; 3501.0250; 3501.0270; 3501.0280, subparts
2.61, 2; 3501.0290; 3501.1000; 3501.1020; 3501.1030; 3501.1040; 3501.1050;
2.73501.1110; 3501.1120; 3501.1130; 3501.1140; 3501.1150; 3501.1160;
2.83501.1170; 3501.1180; 3501.1190.
2.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.10ARTICLE 1

2.11GENERAL EDUCATION

2.12    Section 1. Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:
2.13    Subdivision 1. Age limitations; pupils. (a) All schools supported in whole or
2.14in part by state funds are public schools. Admission to a public school is free to any
2.15person who: (1) resides within the district that operates the school; (2) is under 21 years of
2.16age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age
2.17requirements imposed by this section. Notwithstanding the provisions of any law to the
2.18contrary, the conduct of all students under 21 years of age attending a public secondary
2.19school is governed by a single set of reasonable rules and regulations promulgated by the
2.20school board.
2.21(b) A person shall not be admitted to a public school (1) as a kindergarten pupil,
2.22unless the pupil is at least five years of age on September 1 of the calendar year in which
2.23the school year for which the pupil seeks admission commences; or (2) as a 1st grade
2.24student, unless the pupil is at least six years of age on September 1 of the calendar year in
2.25which the school year for which the pupil seeks admission commences or has completed
2.26kindergarten; except that any school board may establish a policy for admission of
2.27selected pupils at an earlier age under section 124D.02.
2.28(c) A pupil who becomes age 21 after enrollment is eligible for continued free public
2.29school enrollment until at least one of the following occurs: (1) the first September 1 after
2.30the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3)
2.31the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4)
2.32the end of the school year.

2.33    Sec. 2. Minnesota Statutes 2012, section 120A.41, is amended to read:
2.34120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.
2.35A school board's annual school calendar must include at least 425 hours of
2.36instruction for a kindergarten student without a disability, 935 hours of instruction for a
3.1student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7
3.2though 12, not including summer school. The school calendar for all-day kindergarten
3.3must include at least 850 hours of instruction for the school year. Nothing in this section
3.4permits a school district to adopt a four-day week schedule unless approved by the
3.5commissioner under section 124D.126.

3.6    Sec. 3. Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:
3.7    Subd. 3. Voluntary dissolution; referendum revenue. As of the effective date of
3.8the voluntary dissolution of a district and its attachment to one or more existing districts
3.9pursuant to section 123A.46, the authorization for all referendum revenues previously
3.10approved by the voters of all affected districts for those districts pursuant to section
3.11126C.17, subdivision 9 , or its predecessor provision, is canceled. However, if all of the
3.12territory of any independent district is included in the enlarged district, and if the adjusted
3.13net tax capacity of taxable property in that territory comprises 90 percent or more of
3.14the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged
3.15district's referendum revenue shall be determined as follows:
3.16The referendum revenue shall be the revenue per resident marginal cost adjusted
3.17 pupil unit times the number of resident marginal cost adjusted pupil units in the enlarged
3.18district. Any new referendum revenue shall be authorized only after approval is granted
3.19by the voters of the entire enlarged district in an election pursuant to section 126C.17,
3.20subdivision 9 .
3.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
3.22and later.

3.23    Sec. 4. Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:
3.24    Subd. 4. Consolidation; maximum authorized referendum revenues. (a) As
3.25of the effective date of a consolidation pursuant to section 123A.48, if the plan for
3.26consolidation so provides, or if the plan for consolidation makes no provision concerning
3.27referendum revenues, the authorization for all referendum revenues previously approved
3.28by the voters of all affected districts for those districts pursuant to section 126C.17,
3.29subdivision 9 , or its predecessor provision shall be recalculated as provided in this
3.30subdivision. The referendum revenue authorization for the newly created district shall
3.31be the revenue per resident marginal cost adjusted pupil unit that would raise an amount
3.32equal to the combined dollar amount of the referendum revenues authorized by each of
3.33the component districts for the year preceding the consolidation, unless the referendum
4.1revenue authorization of the newly created district is subsequently modified pursuant to
4.2section 126C.17, subdivision 9.
4.3(b) The referendum allowance for a consolidated district in the years following
4.4consolidation equals the average of the consolidating districts' existing authorities for those
4.5years, weighted by the districts' resident marginal cost adjusted pupil units in the year
4.6preceding consolidation. For purposes of this calculation, the referendum authorities used
4.7for individual districts shall not decrease from year to year until such time as all existing
4.8authorities for all the consolidating districts have fully expired, but shall increase if they
4.9were originally approved with consumer price index-based or other annual increases.
4.10(c) The referendum revenue authorization for the newly created district shall continue
4.11for a period of time equal to the longest period authorized for any component district.
4.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
4.13and later.

4.14    Sec. 5. Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:
4.15    Subd. 5. Alternative method. (a) As of the effective date of a consolidation
4.16pursuant to section 123A.48, if the plan for consolidation so provides, the authorization
4.17for all referendum revenues previously approved by the voters of all affected districts for
4.18those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision
4.19shall be combined as provided in this subdivision. The referendum revenue authorization
4.20for the newly created district may be any allowance per resident marginal cost adjusted
4.21 pupil unit provided in the plan for consolidation, but may not exceed the allowance
4.22per resident marginal cost adjusted pupil unit that would raise an amount equal to the
4.23combined dollar amount of the referendum revenues authorized by each of the component
4.24districts for the year preceding the consolidation.
4.25(b) The referendum allowance for a consolidated district in the years following
4.26consolidation equals the average of the consolidating districts' existing authorities for those
4.27years, weighted by the districts' resident marginal cost adjusted pupil units in the year
4.28preceding consolidation. For purposes of this calculation, the referendum authorities used
4.29for individual districts shall not decrease from year to year until such time as all existing
4.30authorities for all the consolidating districts have fully expired, but shall increase if they
4.31were originally approved with consumer price index-based or other annual increases.
4.32(c) The referendum revenue authorization for the newly created district shall
4.33continue for a period of time equal to the longest period authorized for any component
4.34district. The referendum revenue authorization for the newly created district may be
4.35modified pursuant to section 126C.17, subdivision 9.
5.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.2and later.

5.3    Sec. 6. Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:
5.4    Subd. 7. Elementary pupils. "Elementary pupils" means pupils in grades
5.5kindergarten through 6; provided, each kindergarten pupil in a half-day program shall be
5.6counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42,
5.7and 123B.44 to 123B.48.
5.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

5.9    Sec. 7. Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:
5.10    Subd. 3. Cost; limitation. (a) The cost per pupil of the textbooks, individualized
5.11instructional or cooperative learning materials, software or other educational technology,
5.12and standardized tests provided for in this section for each school year must not exceed the
5.13statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
5.14public elementary and secondary schools for textbooks, individualized instructional
5.15materials and standardized tests as computed and established by the department by February
5.161 of the preceding school year from the most recent public school year data then available.
5.17(b) The cost computed in clause (a) shall be increased by an inflation adjustment
5.18equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
5.19subdivision 2 , from the second preceding school year to the current school year.
5.20 Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in
5.21section 126C.10, subdivision 2, the commissioner shall use the amount of the formula
5.22allowance for the current year minus $411 in determining the inflation adjustment for
5.23fiscal years 2015 and 2016.
5.24(c) The commissioner shall allot to the districts or intermediary service areas the
5.25total cost for each school year of providing or loaning the textbooks, individualized
5.26instructional or cooperative learning materials, software or other educational technology,
5.27and standardized tests for the pupils in each nonpublic school. The allotment shall not
5.28exceed the product of the statewide average expenditure per pupil, according to clause
5.29(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
5.30who make requests pursuant to this section and who are enrolled as of September 15 of
5.31the current school year.

5.32    Sec. 8. Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:
6.1    Subd. 9. Nonpublic pupil transportation aid. (a) A district's nonpublic pupil
6.2transportation aid for the 1996-1997 and later school years for transportation services for
6.3nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this
6.4section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does
6.5not limit the obligation to transport pupils under sections 123B.84 to 123B.87.
6.6(b) For regular and excess transportation according to subdivision 1, paragraph (b),
6.7clauses (1) and (2), an amount equal to the product of:
6.8(1) the district's actual expenditure per pupil transported in the regular and excess
6.9transportation categories during the second preceding school year; times
6.10(2) the number of nonpublic school pupils residing in the district who receive regular
6.11or excess transportation service or reimbursement for the current school year; times
6.12(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
6.13the current school year to the formula allowance pursuant to section 126C.10, subdivision
6.142 , for the second preceding school year.
6.15(c) For nonpublic nonregular transportation according to subdivision 1, paragraph
6.16(b), clause (5), an amount equal to the product of:
6.17(1) the district's actual expenditure for nonpublic nonregular transportation during
6.18the second preceding school year; times
6.19(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
6.20the current school year to the formula allowance pursuant to section 126C.10, subdivision
6.212 , for the second preceding school year.
6.22(d) Notwithstanding the amount of the formula allowance for fiscal year 2004
6.23 years 2015 and 2016 in section 126C.10, subdivision 2, the commissioner shall use the
6.24amount of the formula allowance for the current year minus $415 $411 in determining
6.25the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal year 2004
6.26 years 2015 and 2016.
6.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
6.28and later.

6.29    Sec. 9. Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:
6.30    Subdivision 1. Kindergarten instruction. The board may establish and maintain
6.31one or more kindergartens for the instruction of children and after July 1, 1974, shall
6.32provide kindergarten instruction for all eligible children, either in the district or in
6.33another district. All children to be eligible for kindergarten must be at least five years
6.34of age on September 1 of the calendar year in which the school year commences. In
6.35addition all children selected under an early admissions policy established by the school
7.1board may be admitted. If established, a board-adopted early admissions policy must
7.2describe the process and procedures for comprehensive evaluation in cognitive, social,
7.3and emotional developmental domains to help determine the child's ability to meet
7.4kindergarten grade expectations and progress to first grade in the subsequent year. The
7.5comprehensive evaluation must use valid and reliable instrumentation, be aligned with
7.6state kindergarten expectations, and include a parent report and teacher observations of
7.7the child's knowledge, skills, and abilities. The early admissions policy must be made
7.8available to parents in an accessible format and is subject to review by the commissioner
7.9of education. The evaluation is subject to section 127A.41. Nothing in this section
7.10shall prohibit a school district from establishing Head Start, prekindergarten, or nursery
7.11school classes for children below kindergarten age. Any school board with evidence that
7.12providing kindergarten will cause an extraordinary hardship on the school district may
7.13apply to the commissioner of education for an exception.

7.14    Sec. 10. Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:
7.15    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
7.16age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
7.17in average daily membership enrolled in the district of residence, in another district under
7.18sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
7.19section 124D.10; or for whom the resident district pays tuition under section 123A.18,
7.20123A.22 , 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
7.21124D.05 , 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
7.22subdivision.
7.23    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
7.24by the commissioner and has an individualized education program is counted as the ratio
7.25of the number of hours of assessment and education service to 825 times 1.25 1.0 with a
7.26minimum average daily membership of 0.28, but not more than 1.25 1.0 pupil units.
7.27    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
7.28counted as the ratio of the number of hours of assessment service to 825 times 1.25 1.0.
7.29    (c) A kindergarten pupil with a disability who is enrolled in a program approved
7.30by the commissioner is counted as the ratio of the number of hours of assessment and
7.31education services required in the fiscal year by the pupil's individualized education
7.32program to 875, but not more than one.
7.33    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 pupil
7.34units A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
7.35units if the pupil is enrolled in a free all-day, every day kindergarten program available to
8.1all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
8.2section 120A.41, or is counted as .55 pupil units, if the pupil is not enrolled in a free all-day,
8.3every day kindergarten program available to all kindergarten pupils at the pupil's school.
8.4    (e) A pupil who is in any of grades 1 to 3 6 is counted as 1.115 1.0 pupil units for
8.5fiscal year 2000 and thereafter.
8.6    (f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
8.7year 1995 and thereafter.
8.8    (g) A pupil who is in any of grades 7 to 12 is counted as 1.3 1.2 pupil units.
8.9    (h) (g) A pupil who is in the postsecondary enrollment options program is counted
8.10as 1.3 1.2 pupil units.
8.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
8.12and later.

8.13    Sec. 11. Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:
8.14    Subd. 5. Adjusted pupil units. (a) Adjusted pupil units for a district or charter
8.15school means the sum of:
8.16(1) the number of pupil units served, according to subdivision 7, plus
8.17(2) pupil units according to subdivision 1 for whom the district or charter school pays
8.18tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
8.19subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus
8.20(3) pupil units according to subdivision 1 for whom the district or charter school
8.21receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
8.22123B.88, subdivision 4 , 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
8.23(b) Adjusted marginal cost pupil units means the greater of:
8.24(1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
8.25year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
8.26(2) the number of adjusted pupil units defined in paragraph (a) for the current school
8.27year.
8.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
8.29and later.

8.30    Sec. 12. Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:
8.31    Subd. 6. Resident pupil units. (a) Resident pupil units for a district means the
8.32number of pupil units according to subdivision 1 residing in the district.
8.33(b) Resident marginal cost pupil units means the greater of:
9.1(1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
9.2and .23 times the pupil units defined in paragraph (a) for the previous school year; or
9.3(2) the number of resident pupil units defined in paragraph (a) for the current school
9.4year.
9.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
9.6and later.

9.7    Sec. 13. Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:
9.8    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
9.9year program under section 124D.128, an area learning center or an alternative learning
9.10program approved by the commissioner under sections 123A.05 and 123A.06, or a
9.11contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
9.12subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more
9.13than 935 hours in a school year for an elementary student, more than 850 hours in a school
9.14year for a kindergarten student without a disability in a full-day kindergarten program,
9.15or more than 425 hours in a school year for a half-day kindergarten student without a
9.16disability, that pupil may be counted as more than one pupil in average daily membership
9.17for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
9.18be determined by the ratio of the number of hours of instruction provided to that pupil in
9.19excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
9.20secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
9.21or the number of hours required for a full-time elementary pupil in the district to 935 for
9.22an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number
9.23of hours required for a full-time kindergarten student without a disability in the district to
9.24425 for a kindergarten student without a disability; and (iv) the greater of 425 hours or the
9.25number of hours required for a half-time kindergarten student without a disability in the
9.26district to 425 for a half-day kindergarten student without a disability. Hours that occur
9.27after the close of the instructional year in June shall be attributable to the following fiscal
9.28year. A kindergarten student must not be counted as more than 1.2 pupils in average daily
9.29membership under this subdivision. A student in kindergarten or grades 1 through 12 must
9.30not be counted as more than 1.2 pupils in average daily membership under this subdivision.
9.31(b)(i) To receive general education revenue for a pupil in an area learning center
9.32or alternative learning program that has an independent study component, a district
9.33must meet the requirements in this paragraph. The district must develop, for the pupil,
9.34a continual learning plan consistent with section 124D.128, subdivision 3. Each school
9.35district that has an area learning center or alternative learning program must reserve
10.1revenue in an amount equal to at least 90 percent of the district average general education
10.2revenue per pupil unit, minus an amount equal to the product of the formula allowance
10.3according to section 126C.10, subdivision 2, times .0485 .0465, calculated without basic
10.4skills and transportation sparsity revenue, times the number of pupil units generated by
10.5students attending an area learning center or alternative learning program. The amount of
10.6reserved revenue available under this subdivision may only be spent for program costs
10.7associated with the area learning center or alternative learning program. Basic skills
10.8revenue generated according to section 126C.10, subdivision 4, by pupils attending the
10.9eligible program must be allocated to the program.
10.10(ii) General education revenue for a pupil in a state-approved alternative program
10.11without an independent study component must be prorated for a pupil participating for less
10.12than a full year, or its equivalent. The district must develop a continual learning plan for the
10.13pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
10.14learning center or alternative learning program must reserve revenue in an amount equal to
10.15at least 90 percent of the district average general education revenue per pupil unit, minus
10.16an amount equal to the product of the formula allowance according to section 126C.10,
10.17subdivision 2 , times .0485 .0465, calculated without basic skills and transportation sparsity
10.18revenue, times the number of pupil units generated by students attending an area learning
10.19center or alternative learning program. The amount of reserved revenue available under this
10.20subdivision may only be spent for program costs associated with the area learning center or
10.21alternative learning program. Basic skills revenue generated according to section 126C.10,
10.22subdivision 4 , by pupils attending the eligible program must be allocated to the program.
10.23(iii) General education revenue for a pupil in a state-approved alternative program
10.24that has an independent study component must be paid for each hour of teacher contact
10.25time and each hour of independent study time completed toward a credit or graduation
10.26standards necessary for graduation. Average daily membership for a pupil shall equal the
10.27number of hours of teacher contact time and independent study time divided by 1,020.
10.28(iv) For a state-approved alternative program having an independent study
10.29component, the commissioner shall require a description of the courses in the program, the
10.30kinds of independent study involved, the expected learning outcomes of the courses, and
10.31the means of measuring student performance against the expected outcomes.
10.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

10.33    Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:
10.34    Subdivision 1. General education revenue. (a) For fiscal years 2013 and 2014, the
10.35general education revenue for each district equals the sum of the district's basic revenue,
11.1extended time revenue, gifted and talented revenue, small schools revenue, basic skills
11.2revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
11.3revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
11.4alternative teacher compensation revenue, and transition revenue.
11.5(b) For fiscal year 2015 and later, the general education revenue for each district
11.6equals the sum of the district's basic revenue, extended time revenue, gifted and talented
11.7revenue, declining enrollment revenue, small schools revenue, basic supplemental
11.8revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
11.9transportation sparsity revenue, total operating capital revenue, equity revenue, pension
11.10adjustment revenue, safe schools revenue, and transition revenue.

11.11    Sec. 15. Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:
11.12    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
11.13equals the formula allowance times the adjusted marginal cost pupil units for the school
11.14year. The formula allowance for fiscal year 2011 is $5,124. The formula allowance for
11.15fiscal year 2012 is $5,174. For fiscal year 2015 and later, the basic revenue for each district
11.16equals the formula allowance times the adjusted pupil units for the school year. The formula
11.17allowance for fiscal year 2013 and subsequent years is $5,224. The formula allowance for
11.18fiscal year 2014 is $5,276. The formula allowance for fiscal year 2015 and later is $5,687.

11.19    Sec. 16. Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:
11.20    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue
11.21is equal to the product of $4,601 $4,945 and the sum of the adjusted marginal cost pupil
11.22units of the district for each pupil in average daily membership in excess of 1.0 and less
11.23than 1.2 according to section 126C.05, subdivision 8.
11.24(b) A school district's extended time revenue may be used for extended day
11.25programs, extended week programs, summer school, and other programming authorized
11.26under the learning year program.

11.27    Sec. 17. Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:
11.28    Subd. 2c. Small schools revenue. A school district, not including a charter school,
11.29is eligible for small schools revenue equal to the product of:
11.30(1) $5,224 $540;
11.31(2) the district's adjusted marginal cost pupil units for that year; and
11.32(3) the greater of zero or the ratio of (i) 1,000 960 less the district's adjusted marginal
11.33cost pupil units for that year, to (ii) 1,000; and 960.
12.1(4) 0.10.
12.2EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
12.3and later.

12.4    Sec. 18. Minnesota Statutes 2012, section 126C.10, is amended by adding a
12.5subdivision to read:
12.6    Subd. 2d. Declining enrollment revenue. A school district's declining enrollment
12.7revenue equals the greater of zero or the product of: (1) 28 percent of the formula
12.8allowance for that year and (2) the difference between the adjusted pupil units for the
12.9preceding year and the adjusted pupil units for the current year.
12.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
12.11and later.

12.12    Sec. 19. Minnesota Statutes 2012, section 126C.10, is amended by adding a
12.13subdivision to read:
12.14    Subd. 2e. Basic supplemental revenue. The basic supplemental revenue for each
12.15district equals the supplemental allowance times the adjusted pupil units for the school
12.16year. The supplemental allowance for fiscal year 2015 and later years is $56.
12.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
12.18and later.

12.19    Sec. 20. Minnesota Statutes 2012, section 126C.10, is amended by adding a
12.20subdivision to read:
12.21    Subd. 2f. Safe schools revenue. The safe schools revenue for each district, including
12.22charter schools, equals the safe schools allowance times the district's adjusted pupil units
12.23for the school year. The safe schools allowance for fiscal year 2015 and later years is $34.

12.24    Sec. 21. Minnesota Statutes 2012, section 126C.10, is amended by adding a
12.25subdivision to read:
12.26    Subd. 2g. Uses of safe schools revenue. (a) Safe schools revenue, under subdivision
12.272f, must be reserved and used for directly funding the following purposes or for reimbursing
12.28the cities and counties who contract with the district for the following purposes:
12.29(1) to pay the costs incurred for the salaries, benefits, and transportation costs of
12.30peace officers and sheriffs for liaison in services in the district's schools;
13.1(2) to pay the costs for a drug abuse prevention program as defined in section
13.2609.101, subdivision 3, paragraph (e), in the elementary schools;
13.3(3) to pay the costs for a gang resistance education training curriculum in the
13.4district's schools;
13.5(4) to pay the costs for security in the district's schools and on school property;
13.6(5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
13.7voluntary opt-in suicide prevention tools, and violence prevention measures taken by
13.8the school district;
13.9(6) to pay the costs for licensed school counselors, licensed school nurses, licensed
13.10school social workers, licensed school psychologists, and licensed alcohol and chemical
13.11dependency counselors to help provide early responses to problems; or
13.12(7) to pay the costs for colocating and collaborating with mental health professionals
13.13who are not district employees or contractors.
13.14For expenditures under clause (1), the district must initially attempt to contract for
13.15services to be provided by peace officers or sheriffs with the police department of each
13.16city or the sheriff's department of the county within the district containing the school
13.17receiving the services. If a local police department or a county sheriff's department does
13.18not wish to provide the necessary services, the district may contract for these services with
13.19any other police or sheriff's department located entirely or partially within the school
13.20district's boundaries.
13.21(b) A school district may reserve up to $2 per adjusted pupil unit of safe schools
13.22revenue for laminated glass for security in the district's schools.

13.23    Sec. 22. Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:
13.24    Subd. 3. Compensatory education revenue. (a) For fiscal year 2014, the
13.25compensatory education revenue for each building in the district equals the formula
13.26allowance minus $415 times the compensation revenue pupil units computed according
13.27to section 126C.05, subdivision 3. For fiscal year 2015 and later, the compensatory
13.28education revenue for each building in the district equals the formula allowance minus
13.29$826 times the compensation revenue pupil units computed according to section 126C.05,
13.30subdivision 3. Revenue shall be paid to the district and must be allocated according to
13.31section 126C.15, subdivision 2.
13.32(b) When the district contracting with an alternative program under section 124D.69
13.33changes prior to the start of a school year, the compensatory revenue generated by pupils
13.34attending the program shall be paid to the district contracting with the alternative program
14.1for the current school year, and shall not be paid to the district contracting with the
14.2alternative program for the prior school year.
14.3(c) When the fiscal agent district for an area learning center changes prior to the start
14.4of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
14.5current school year, and shall not be paid to the fiscal agent district for the prior school year.

14.6    Sec. 23. Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:
14.7    Subd. 7. Secondary sparsity revenue. (a) A district's secondary sparsity revenue
14.8for a school year equals the sum of the results of the following calculation for each
14.9qualifying high school in the district:
14.10(1) the formula allowance for the school year minus $411, multiplied by
14.11(2) the secondary average daily membership of pupils served in the high school,
14.12multiplied by
14.13(3) the quotient obtained by dividing 400 minus the secondary average daily
14.14membership by 400 plus the secondary daily membership, multiplied by
14.15(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
14.1623 by ten.
14.17(b) A newly formed district that is the result of districts combining under the
14.18cooperation and combination program or consolidating under section 123A.48 must
14.19receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
14.20under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
14.21sparsity revenue the former districts had in the year prior to consolidation, increased for
14.22any subsequent changes in the secondary sparsity formula.
14.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
14.24and later.

14.25    Sec. 24. Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:
14.26    Subd. 8. Elementary sparsity revenue. A district's elementary sparsity revenue
14.27equals the sum of the following amounts for each qualifying elementary school in the
14.28district:
14.29(1) the formula allowance for the year minus $411, multiplied by
14.30(2) the elementary average daily membership of pupils served in the school,
14.31multiplied by
14.32(3) the quotient obtained by dividing 140 minus the elementary average daily
14.33membership by 140 plus the average daily membership.
15.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
15.2and later.

15.3    Sec. 25. Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:
15.4    Subd. 13. Total operating capital revenue. (a) Total operating capital revenue for
15.5a district equals the amount determined under paragraph (b) or (c), plus $73 $79 times the
15.6adjusted marginal cost pupil units for the school year. The revenue must be placed in a
15.7reserved account in the general fund and may only be used according to subdivision 14.
15.8(b) Capital revenue for a district equals $100 $108 times the district's maintenance
15.9cost index times its adjusted marginal cost pupil units for the school year.
15.10(c) The revenue for a district that operates a program under section 124D.128, is
15.11increased by an amount equal to $30 times the number of marginal cost adjusted pupil
15.12units served at the site where the program is implemented.
15.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
15.14and later.

15.15    Sec. 26. Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:
15.16    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
15.17year 2007 years 2013 and later 2014 only, a district may levy an amount not more than the
15.18product of its operating capital revenue for the fiscal year times the lesser of one or the
15.19ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating
15.20capital equalizing factor. The operating capital equalizing factor equals $10,194.

15.21    Sec. 27. Minnesota Statutes 2012, section 126C.10, subdivision 13b, is amended to read:
15.22    Subd. 13b. Operating capital aid. For fiscal years 2013 and 2014 only, a district's
15.23operating capital aid equals its operating capital revenue minus its operating capital levy
15.24times the ratio of the actual amount levied to the permitted levy.

15.25    Sec. 28. Minnesota Statutes 2012, section 126C.10, subdivision 17, is amended to read:
15.26    Subd. 17. Transportation sparsity definitions. The definitions in this subdivision
15.27apply to subdivisions 18 and 19.
15.28(a) "Sparsity index" for a district means the greater of .2 or the ratio of the square
15.29mile area of the district to the resident adjusted pupil units of the district.
15.30(b) "Density index" for a district means the ratio of the square mile area of the
15.31district to the resident adjusted pupil units of the district. However, the density index for a
15.32district cannot be greater than .2 or less than .005.
16.1EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

16.2    Sec. 29. Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:
16.3    Subd. 18. Transportation sparsity revenue allowance. (a) A district's
16.4transportation sparsity allowance equals the greater of zero or the result of the following
16.5computation:
16.6(i) Multiply the formula allowance according to subdivision 2, by .1469 .141.
16.7(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
16.826/100 power.
16.9(iii) Multiply the result in clause (ii) by the district's density index raised to the
16.1013/100 power.
16.11(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0465.
16.12(v) Subtract the result in clause (iv) from the result in clause (iii).
16.13(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
16.14times the adjusted marginal cost pupil units.
16.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
16.16and later.

16.17    Sec. 30. Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:
16.18    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
16.19    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
16.20transition revenue, and referendum revenue is less than the value of the school district at
16.21or immediately above the 95th percentile of school districts in its equity region for those
16.22revenue categories; and
16.23    (2) the school district's administrative offices are not located in a city of the first
16.24class on July 1, 1999.
16.25    (b) A school district's equity revenue for a qualifying district that receives
16.26referendum revenue under section 126C.17, subdivision 4, equals the product of (1) the
16.27district's adjusted marginal cost pupil units for that year; times (2) the sum of (i) $13, plus
16.28(ii) $75 $100, times the school district's equity index computed under subdivision 27.
16.29    (c) Equity revenue for a qualifying district that does not receive referendum revenue
16.30under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
16.31cost pupil units for that year times $13.
16.32    (d) A school district's equity revenue is increased by the greater of zero or an amount
16.33equal to the district's resident marginal cost pupil units times the difference between ten
16.34percent of the statewide average amount of referendum revenue per resident marginal cost
17.1pupil unit for that year and the district's referendum revenue per resident marginal cost
17.2pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
17.3that year.
17.4    (e) A school district's equity revenue for a school district located in the metro equity
17.5region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
17.6    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
17.7district that has per pupil referendum revenue below the 95th percentile qualifies for
17.8additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
17.9    (g) A district that does not qualify for revenue under paragraph (f) qualifies for
17.10equity revenue equal to $46 times its adjusted marginal cost pupil units.
17.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.12and later.

17.13    Sec. 31. Minnesota Statutes 2012, section 126C.10, subdivision 27, is amended to read:
17.14    Subd. 27. District equity index. (a) A district's equity index equals the greater
17.15of zero or the ratio of the sum of the district equity gap amount to the regional equity
17.16gap amount $2,000 minus the district's referendum revenue under section 126C.17,
17.17subdivision 4, per adjusted pupil unit to $2,000.
17.18(b) A charter school's equity index equals the greater of zero or the ratio of $2,000
17.19minus the school's general education revenue attributable to referendum equalization aid
17.20under section 124D.11, subdivision 1, per adjusted pupil unit to $2,000.
17.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.22and later.

17.23    Sec. 32. Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:
17.24    Subd. 29. Equity levy. To obtain equity revenue for fiscal year 2005 2015 and later,
17.25a district may levy an amount not more than the product of its equity revenue for the
17.26fiscal year times the lesser of one or the ratio of its referendum market value per resident
17.27marginal cost pupil unit to $476,000 $538,200.
17.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.29and later.

17.30    Sec. 33. Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:
17.31    Subd. 31. Transition revenue. (a) A district's transition allowance equals the sum of
17.32the transition revenue the district would have received for fiscal year 2015 under Minnesota
18.1Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater of zero or
18.2the product of the ratio of the number of adjusted marginal cost pupil units the district
18.3would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's
18.4adjusted marginal cost pupil units for fiscal year 2004, times the difference between:
18.5    (1) the lesser sum of:
18.6    (i) the district's general education revenue per adjusted marginal cost pupil unit
18.7for fiscal year 2003 or the amount of general education revenue the district would have
18.8received per adjusted marginal cost pupil unit for fiscal year 2004 2015 according to
18.9Minnesota Statutes 2002, 2012, section 126C.10;
18.10(ii) the safe school levy the district certified for fiscal year 2014 under Minnesota
18.11Statutes 2012, section 126C.44;
18.12(iii) 70 percent of the integration revenue the district received for fiscal year 2013
18.13under Minnesota Statutes 2012, section 124D.86;
18.14(iv) the pension adjustment the district would have received for fiscal year 2015
18.15under Minnesota Statutes 2012, section 127A.50;
18.16(v) the special education aid the district would have received for fiscal year 2015
18.17under Minnesota Statutes 2012, section 125A.65; and
18.18(vi) the special education excess cost aid the district would have received for fiscal
18.19year 2015 under Minnesota Statutes 2012, section 125A.79; and
18.20(2) the sum of the district's:
18.21(i) general education revenue for fiscal year 2004 2015 excluding transition revenue
18.22under section 126C.10;
18.23(ii) integration revenue for fiscal year 2015 under section 124D.862; and
18.24(iii) special education aid for fiscal year 2015 under section 125A.76; and
18.25divided by the number of adjusted marginal cost pupil units the district would have
18.26counted for fiscal year 2004 under Minnesota Statutes 2002 2015.
18.27    (b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of
18.28the product of the district's transition allowance times the district's adjusted marginal cost
18.29pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
18.30    (c) (b) A district's transition revenue for fiscal year 2010 2015 and later equals the
18.31sum of the product of the district's transition allowance times the district's adjusted marginal
18.32cost pupil units plus the district's transition for prekindergarten revenue under subdivision
18.3331a plus the district's transition for tuition reciprocity revenue under subdivision 31c.
18.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
18.35and later.

19.1    Sec. 34. Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:
19.2    Subd. 32. Transition levy. To obtain transition revenue for fiscal year 2005 2015
19.3 and later, a district may levy an amount not more than the product of its transition revenue
19.4for the fiscal year times the lesser of one or the ratio of its referendum market value per
19.5resident marginal cost pupil unit to $476,000 $538,200.
19.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
19.7and later.

19.8    Sec. 35. Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:
19.9    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal years 2007,
19.102008, and 2009, the basic alternative teacher compensation aid for a school district
19.11with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of
19.12the alternative teacher compensation revenue under section 122A.415, subdivision 1.
19.13The basic alternative teacher compensation aid for an intermediate school district or
19.14charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
19.15the recipient is a charter school, equals $260 times the number of pupils enrolled in the
19.16school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
19.17year for a charter school in the first year of operation, times the ratio of the sum of the
19.18alternative teacher compensation aid and alternative teacher compensation levy for all
19.19participating school districts to the maximum alternative teacher compensation revenue
19.20for those districts under section 122A.415, subdivision 1.
19.21    (b) For fiscal years 2010 and later 2013 and 2014 only, the basic alternative
19.22teacher compensation aid for a school with a plan approved under section 122A.414,
19.23subdivision 2b , equals 65 percent of the alternative teacher compensation revenue under
19.24section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
19.25an intermediate school district or charter school with a plan approved under section
19.26122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
19.27the number of pupils enrolled in the school on October 1 of the previous year, or on
19.28October 1 of the current year for a charter school in the first year of operation, times
19.29the ratio of the sum of the alternative teacher compensation aid and alternative teacher
19.30compensation levy for all participating school districts to the maximum alternative teacher
19.31compensation revenue for those districts under section 122A.415, subdivision 1.
19.32(c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 122A.415,
19.33subdivision 1 , the state total basic alternative teacher compensation aid entitlement must
19.34not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the
20.1amount of alternative teacher compensation aid approved under section 122A.415 so as
20.2not to exceed these limits.

20.3    Sec. 36. Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:
20.4    Subd. 35. Alternative teacher compensation levy. For fiscal year 2007 years 2013
20.5 and later 2014 only, the alternative teacher compensation levy for a district receiving basic
20.6alternative teacher compensation aid equals the product of (1) the difference between the
20.7district's alternative teacher compensation revenue and the district's basic alternative
20.8teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
20.9net tax capacity per adjusted pupil unit to $5,634.

20.10    Sec. 37. Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:
20.11    Subd. 36. Alternative teacher compensation aid. (a) For fiscal year 2007 years
20.122013 and later 2014 only, a district's alternative teacher compensation equalization aid
20.13equals the district's alternative teacher compensation revenue minus the district's basic
20.14alternative teacher compensation aid minus the district's alternative teacher compensation
20.15levy. If a district does not levy the entire amount permitted, the alternative teacher
20.16compensation equalization aid must be reduced in proportion to the actual amount levied.
20.17(b) A district's alternative teacher compensation aid equals the sum of the
20.18district's basic alternative teacher compensation aid and the district's alternative teacher
20.19compensation equalization aid.

20.20    Sec. 38. Minnesota Statutes 2012, section 126C.10, is amended by adding a
20.21subdivision to read:
20.22    Subd. 38. Pension adjustment revenue. A school district's pension adjustment
20.23revenue equals the greater of zero or the product of:
20.24(1) the difference between the district's adjustment under Minnesota Statutes 2012,
20.25section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state
20.26average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for
20.27fiscal year 2014 per adjusted pupil unit; and
20.28(2) the district's adjusted pupil units for the fiscal year.
20.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
20.30and later.

20.31    Sec. 39. Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:
21.1    Subdivision 1. Revenue. Of a district's general education revenue for fiscal year
21.22000 2015 and thereafter each school district shall reserve an amount equal to the formula
21.3 allowance multiplied by the following calculation:
21.4(1) the sum of adjusted marginal cost pupils in average daily membership, according
21.5to section 126C.05, subdivision 5, in kindergarten times .057 $299; plus
21.6(2) the sum of adjusted marginal cost pupils in average daily membership, according
21.7to section 126C.05, subdivision 5, in grades 1 to 3 6 times .115; plus $459.
21.8(3) the sum of adjusted marginal cost pupils in average daily membership, according
21.9to section 126C.05, subdivision 5, in grades 4 to 6 times .06.
21.10EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

21.11    Sec. 40. Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:
21.12    Subd. 5. Additional revenue use. If the board of a district determines that the
21.13district has achieved and is maintaining the class sizes specified in subdivision 4, the board
21.14may use the revenue to reduce class size in grades 4, 5, and 6, provide all-day, everyday
21.15kindergarten, prepare and use individualized learning plans, improve program offerings,
21.16purchase instructional material, services, or technology, or provide staff development
21.17needed for reduced class sizes.
21.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015.

21.19    Sec. 41. Minnesota Statutes 2012, section 126C.126, is amended to read:
21.20126C.126 USE OF GENERAL EDUCATION REVENUE FOR ALL-DAY
21.21KINDERGARTEN AND PREKINDERGARTEN.
21.22     A school district may spend general education revenue on extended time
21.23kindergarten and prekindergarten programs. At the school board's discretion, the district
21.24may use revenue generated by the full-day kindergarten pupil count under section
21.25126C.05, subdivision 1, paragraph (d), to meet the needs of three- and four-year-olds in the
21.26district. A school district may not use these funds on programs for three- and four-year-old
21.27children while maintaining a fee-based full-day kindergarten program.
21.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
21.29and later.

21.30    Sec. 42. Minnesota Statutes 2012, section 126C.13, is amended by adding a
21.31subdivision to read:
22.1    Subd. 3a. General education rate. The commissioner must establish the general
22.2education rate by July 1 of each year for levies payable in the following year. The general
22.3education rate must be a rate, rounded up to the nearest hundredth of a percent, that, when
22.4applied to the adjusted net tax capacity for all districts, raises the amount specified in this
22.5subdivision. The general education rate must be the rate that raises $19,520,000 for fiscal
22.6year 2015; $26,219,000 for fiscal year 2016; and $30,004,000 for fiscal year 2017 and
22.7later years. The general education rate may not be changed due to changes or corrections
22.8made to a district's adjusted net tax capacity after the rate has been established.

22.9    Sec. 43. Minnesota Statutes 2012, section 126C.13, is amended by adding a
22.10subdivision to read:
22.11    Subd. 3b. General education levy. To obtain general education revenue, a district
22.12may levy an amount not to exceed the general education rate times the adjusted net tax
22.13capacity of the district for the preceding year. If the amount of the general education
22.14levy would exceed the general education revenue, the general education levy must be
22.15determined according to subdivision 3c.

22.16    Sec. 44. Minnesota Statutes 2012, section 126C.13, is amended by adding a
22.17subdivision to read:
22.18    Subd. 3c. General education levy; districts off the formula. (a) If the sum of the
22.19amount of the general education levy and equity levy for a district exceeds the district's
22.20general education revenue, the amount of the general education levy must be limited to
22.21the following:
22.22(1) the district's general education revenue minus its equity levy; minus
22.23(2) payments made for the same school year according to section 126C.21,
22.24subdivision 3.
22.25    (b) A levy made according to this subdivision shall also be construed to be the levy
22.26made according to subdivision 3b.

22.27    Sec. 45. Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:
22.28    Subd. 4. General education aid. (a) For fiscal years 2007 2013 and later 2014 only,
22.29a district's general education aid is the sum of the following amounts:
22.30    (1) general education revenue, excluding equity revenue, total operating capital
22.31revenue, alternative teacher compensation revenue, and transition revenue;
22.32    (2) operating capital aid under section 126C.10, subdivision 13b;
22.33    (3) equity aid under section 126C.10, subdivision 30;
23.1    (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
23.2    (5) transition aid under section 126C.10, subdivision 33;
23.3    (6) shared time aid under section 126C.01, subdivision 7;
23.4    (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
23.5    (8) online learning aid according to section 124D.096.
23.6(b) For fiscal year 2015 and later, a district's general education aid equals:
23.7(1) general education revenue, excluding equity revenue and transition revenue,
23.8minus the general education levy, multiplied times the ratio of the actual amount of general
23.9education levied to the permitted general education levy; plus
23.10(2) equity aid under section 126C.10, subdivision 30; plus
23.11(3) transition aid under section 126C.10, subdivision 33; plus
23.12(4) shared time aid under section 126C.10, subdivision 7; plus
23.13(5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
23.14(6) online learning aid under section 124D.096.

23.15    Sec. 46. Minnesota Statutes 2012, section 126C.13, subdivision 5, is amended to read:
23.16    Subd. 5. Uses of revenue. Except as provided in sections 126C.10, subdivision
23.17 subdivisions 2g and 14 ; 126C.12; and 126C.15, general education revenue may be used
23.18during the regular school year and the summer for general and special school purposes.
23.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
23.20and later.

23.21    Sec. 47. Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:
23.22    Subdivision 1. Use of revenue. The basic skills revenue under section 126C.10,
23.23subdivision 4 , must be reserved and used to meet the educational needs of pupils who
23.24enroll under-prepared to learn and whose progress toward meeting state or local content
23.25or performance standards is below the level that is appropriate for learners of their age.
23.26Basic skills revenue may also be used for programs designed to prepare children and their
23.27families for kindergarten, provided such programming is cost-effective, research-based,
23.28and includes an evaluation component to measure, record, and publicly report its level of
23.29effectiveness. Any of the following may be provided to meet these learners' needs:
23.30(1) direct instructional services under the assurance of mastery program according
23.31to section 124D.66;
23.32(2) remedial instruction in reading, language arts, mathematics, other content areas,
23.33or study skills to improve the achievement level of these learners;
24.1(3) additional teachers and teacher aides to provide more individualized instruction
24.2to these learners through individual tutoring, lower instructor-to-learner ratios, or team
24.3teaching;
24.4(4) a longer school day or week during the regular school year or through a summer
24.5program that may be offered directly by the site or under a performance-based contract
24.6with a community-based organization;
24.7(5) comprehensive and ongoing staff development consistent with district and site
24.8plans according to section 122A.60, for teachers, teacher aides, principals, and other
24.9personnel to improve their ability to identify the needs of these learners and provide
24.10appropriate remediation, intervention, accommodations, or modifications;
24.11(6) instructional materials, digital learning, and technology appropriate for meeting
24.12the individual needs of these learners;
24.13(7) programs to reduce truancy, encourage completion of high school, enhance
24.14self-concept, provide health services, provide nutrition services, provide a safe and secure
24.15learning environment, provide coordination for pupils receiving services from other
24.16governmental agencies, provide psychological services to determine the level of social,
24.17emotional, cognitive, and intellectual development, and provide counseling services,
24.18guidance services, and social work services;
24.19(8) bilingual programs, bicultural programs, and programs for English learners;
24.20(9) all day kindergarten;
24.21(10) early education programs, parent-training programs, school readiness programs,
24.22kindergarten programs for four-year-olds, and other outreach efforts designed to prepare
24.23children for kindergarten;
24.24(11) extended school day and extended school year programs; and
24.25(11) (12) substantial parent involvement in developing and implementing remedial
24.26education or intervention plans for a learner, including learning contracts between the
24.27school, the learner, and the parent that establish achievement goals and responsibilities of
24.28the learner and the learner's parent or guardian.
24.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
24.30and later.

24.31    Sec. 48. Minnesota Statutes 2012, section 126C.15, subdivision 2, is amended to read:
24.32    Subd. 2. Building allocation. (a) A district or cooperative must allocate its
24.33compensatory revenue to each school building in the district or cooperative where
24.34the children who have generated the revenue are served unless the school district or
24.35cooperative has received permission under Laws 2005, First Special Session chapter 5,
25.1article 1, section 50, to allocate compensatory revenue according to student performance
25.2measures developed by the school board.
25.3    (b) Notwithstanding paragraph (a), a district or cooperative may allocate up to
25.4five 15 percent of the amount of compensatory revenue that the district receives to
25.5school sites according to a plan adopted by the school board. The money reallocated
25.6under this paragraph must be spent for the purposes listed in subdivision 1, but may be
25.7spent on students in any grade, including students attending school readiness or other
25.8prekindergarten programs.
25.9    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
25.10means education site as defined in section 123B.04, subdivision 1.
25.11    (d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue
25.12generated by students served at a cooperative unit shall be paid to the cooperative unit.
25.13    (e) A district or cooperative with school building openings, school building
25.14closings, changes in attendance area boundaries, or other changes in programs or student
25.15demographics between the prior year and the current year may reallocate compensatory
25.16revenue among sites to reflect these changes. A district or cooperative must report to the
25.17department any adjustments it makes according to this paragraph and the department must
25.18use the adjusted compensatory revenue allocations in preparing the report required under
25.19section 123B.76, subdivision 3, paragraph (c).

25.20    Sec. 49. Minnesota Statutes 2012, section 126C.17, is amended to read:
25.21126C.17 REFERENDUM REVENUE.
25.22    Subdivision 1. Referendum allowance. (a) For fiscal year 2003 and later, a district's
25.23initial referendum revenue allowance equals the sum of the allowance under section
25.24126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
25.25unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
25.26plus the referendum conversion allowance approved under subdivision 13, minus $415.
25.27For districts with more than one referendum authority, the reduction must be computed
25.28separately for each authority. The reduction must be applied first to the referendum
25.29conversion allowance and next to the authority with the earliest expiration date. A
25.30district's initial referendum revenue allowance may not be less than zero.
25.31(b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
25.32referendum allowance plus any additional allowance per resident marginal cost pupil unit
25.33authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
25.34fiscal year 2003 and later.
26.1(c) For fiscal year 2004 and later, a district's referendum revenue allowance equals
26.2the sum of:
26.3(1) the product of (i) the ratio of the resident marginal cost pupil units the district
26.4would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
26.5to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
26.6referendum allowance plus any additional allowance per resident marginal cost pupil unit
26.7authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
26.8year 2003 and later, plus
26.9(2) any additional allowance per resident marginal cost pupil unit authorized under
26.10subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
26.11(a) A district's initial referendum allowance for fiscal year 2015 equals the result of
26.12the following calculations:
26.13(1) multiply the referendum allowance the district would have received for fiscal
26.14year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 1, based on
26.15elections held before July 1, 2013, by the resident marginal cost pupil units the district
26.16would have counted for fiscal year 2015 under Minnesota Statutes 2012, section 126C.05;
26.17(2) add to the result of clause (1) the adjustment the district would have received
26.18under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
26.19(c), based on elections held before July 1, 2013;
26.20(3) divide the result of clause (2) by the district's adjusted pupil units for fiscal year
26.212015, notwithstanding section 126C.05, subdivision 1, paragraph (d), calculated as though
26.22a kindergarten pupil not included in section 126C.05, subdivision 1, paragraph (c), is
26.23counted as 0.55 pupil units; and
26.24(4) if the result of clause (3) is less than zero, set the allowance to zero.
26.25(b) A district's referendum allowance equals the sum of the district's initial
26.26referendum allowance for fiscal year 2015, plus any additional referendum allowance per
26.27adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal
26.28year 2016 or later. For a district with more than one referendum allowance for fiscal year
26.292015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under
26.30paragraph (a) must be divided into components such that the same percentage of the
26.31district's allowance expires at the same time as the old allowances would have expired
26.32under Minnesota Statutes 2012, section 126C.17.
26.33    Subd. 2. Referendum allowance limit. (a) Notwithstanding subdivision 1, for fiscal
26.34year 2007 2015 and later, a district's referendum allowance must not exceed the greater of:
27.1(1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
27.2times the annual inflationary increase as calculated under paragraph (b) plus (ii) its
27.3referendum conversion allowance for fiscal year 2003, minus (iii) $215;
27.4(2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 times the
27.5annual inflationary increase as calculated under paragraph (b); or times the greatest of:
27.6(1) $1,845;
27.7(2) the sum of the referendum revenue the district would have received for fiscal
27.8year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 4, based on
27.9elections held before July 1, 2013, and the adjustment the district would have received
27.10under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs (a), (b), and
27.11(c), based on elections held before July 1, 2013, divided by the district's adjusted pupil
27.12units for fiscal year 2015, notwithstanding section 126C.05, subdivision 1, paragraph (d),
27.13calculated as though a kindergarten pupil not included in section 126C.05, subdivision 1,
27.14paragraph (c), is counted as 0.55 pupil units; or
27.15(3) the product of the referendum allowance limit the district would have received
27.16for fiscal year 2015 under Minnesota Statutes 2012, section 126C.17, subdivision 2, and
27.17the resident marginal cost pupil units the district would have received for fiscal year 2015
27.18under Minnesota Statutes 2012, section 126C.05, subdivision 6, plus the adjustment the
27.19district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
27.207, paragraphs (a), (b), and (c), based on elections held before July 1, 2013, divided by
27.21the district's adjusted pupil units for fiscal year 2015, notwithstanding section 126C.05,
27.22subdivision 1, paragraph (d), calculated as though a kindergarten pupil not included in
27.23section 126C.05, subdivision 1, paragraph (c), is counted as 0.55 pupil units; or
27.24(3) (4) for a newly reorganized district created after July 1, 2006 2013, the referendum
27.25revenue authority for each reorganizing district in the year preceding reorganization divided
27.26by its resident marginal cost adjusted pupil units for the year preceding reorganization.
27.27(b) For purposes of this subdivision, for fiscal year 2005 2016 and later, "inflationary
27.28increase" means one plus the percentage change in the Consumer Price Index for urban
27.29consumers, as prepared by the United States Bureau of Labor Standards, for the current
27.30fiscal year to fiscal year 2004 2015. For fiscal years 2009 year 2016 and later, for purposes
27.31of paragraph (a), clause (1) (3), the inflationary increase equals the inflationary increase
27.32for fiscal year 2008 plus one-fourth of the percentage increase in the formula allowance
27.33for that year compared with the formula allowance for fiscal year 2008 2015.
27.34    Subd. 3. Sparsity exception. A district that qualifies for sparsity revenue under
27.35section 126C.10 is not subject to a referendum allowance limit.
28.1    Subd. 4. Total referendum revenue. The total referendum revenue for each district
28.2equals the district's referendum allowance times the resident marginal cost adjusted pupil
28.3units for the school year.
28.4    Subd. 5. Referendum equalization revenue. (a) For fiscal year 2003 and later,
28.5 A district's referendum equalization revenue equals the sum of the first tier referendum
28.6equalization revenue and the second tier referendum equalization revenue.
28.7(b) A district's first tier referendum equalization revenue equals the district's first
28.8tier referendum equalization allowance times the district's resident marginal cost adjusted
28.9 pupil units for that year.
28.10(c) For fiscal year 2006, a district's first tier referendum equalization allowance
28.11equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
28.12fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
28.13of the district's referendum allowance under subdivision 1 or $600.
28.14For fiscal year 2008 and later, A district's first tier referendum equalization allowance
28.15equals the lesser of the district's referendum allowance under subdivision 1 or $700 $775.
28.16(d) A district's second tier referendum equalization revenue equals the district's
28.17second tier referendum equalization allowance times the district's resident marginal cost
28.18 adjusted pupil units for that year.
28.19(e) For fiscal year 2006, a district's second tier referendum equalization allowance
28.20equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
28.21of the formula allowance, minus the district's first tier referendum equalization allowance.
28.22For fiscal year 2007 and later, A district's second tier referendum equalization allowance
28.23equals the lesser of the district's referendum allowance under subdivision 1 or 26 25 percent
28.24of the formula allowance, minus the district's first tier referendum equalization allowance.
28.25(f) Notwithstanding paragraph (e), the second tier referendum allowance for a
28.26district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
28.27elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
28.28referendum allowance under subdivision 1 minus the district's first tier referendum
28.29equalization allowance.
28.30    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
28.31a district's referendum equalization levy equals the sum of the first tier referendum
28.32equalization levy and the second tier referendum equalization levy.
28.33(b) A district's first tier referendum equalization levy equals the district's first tier
28.34referendum equalization revenue times the lesser of one or the ratio of the district's
28.35referendum market value per resident marginal cost pupil unit to $476,000 $538,200.
29.1(c) A district's second tier referendum equalization levy equals the district's second
29.2tier referendum equalization revenue times the lesser of one or the ratio of the district's
29.3referendum market value per resident marginal cost pupil unit to $270,000 $259,415.
29.4    Subd. 7. Referendum equalization aid. (a) A district's referendum equalization aid
29.5equals the difference between its referendum equalization revenue and levy.
29.6(b) If a district's actual levy for first or second tier referendum equalization revenue
29.7is less than its maximum levy limit for that tier, aid shall be proportionately reduced.
29.8(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
29.9where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
29.10referendum revenue, must not exceed 26 25 percent of the formula allowance times the
29.11district's resident marginal cost adjusted pupil units. A district's referendum levy is
29.12increased by the amount of any reduction in referendum aid under this paragraph.
29.13    Subd. 7a. Referendum tax base replacement aid. For each school district that
29.14had a referendum allowance for fiscal year 2002 exceeding $415, for each separately
29.15authorized referendum levy, the commissioner of revenue, in consultation with the
29.16commissioner of education, shall certify the amount of the referendum levy in taxes
29.17payable year 2001 attributable to the portion of the referendum allowance exceeding $415
29.18levied against property classified as class 2, noncommercial 4c(1), or 4c(4), under section
29.19273.13 , excluding the portion of the tax paid by the portion of class 2a property consisting
29.20of the house, garage, and surrounding one acre of land. The resulting amount must be
29.21used to reduce the district's referendum levy amount otherwise determined, and must be
29.22paid to the district each year that the referendum authority remains in effect, is renewed,
29.23or new referendum authority is approved. The aid payable under this subdivision must
29.24be subtracted from the district's referendum equalization aid under subdivision 7. The
29.25referendum equalization aid after the subtraction must not be less than zero.
29.26    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, a
29.27district's referendum equalization aid for fiscal year 2015 must not be less than the sum
29.28of the referendum equalization aid the district would have received for fiscal year 2015
29.29under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
29.30district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
29.317, paragraphs (a), (b), and (c).
29.32(b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016
29.33and later, for a district qualifying for additional aid under paragraph (a) for fiscal year
29.342015, must not be less than the product of (1) the district's referendum equalization aid
29.35for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum
29.36revenue for that school year to the district's referendum revenue for fiscal year 2015, times
30.1(3) the lesser of one or the ratio of the district's referendum market value used for fiscal
30.2year 2015 referendum equalization calculations to the district's referendum market value
30.3used for that year's referendum equalization calculations.
30.4    Subd. 8. Unequalized referendum levy. Each year, a district may levy an amount
30.5equal to the difference between its total referendum revenue according to subdivision 4
30.6and its referendum equalization revenue according to subdivision 5.
30.7    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
30.8subdivision 1 , may be increased in the amount approved by the voters of the district
30.9at a referendum called for the purpose. The referendum may be called by the board.
30.10The referendum must be conducted one or two calendar years before the increased levy
30.11authority, if approved, first becomes payable. Only one election to approve an increase
30.12may be held in a calendar year. Unless the referendum is conducted by mail under
30.13subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
30.14first Monday in November. The ballot must state the maximum amount of the increased
30.15revenue per resident marginal cost adjusted pupil unit. The ballot may state a schedule,
30.16determined by the board, of increased revenue per resident marginal cost adjusted pupil
30.17unit that differs from year to year over the number of years for which the increased revenue
30.18is authorized or may state that the amount shall increase annually by the rate of inflation.
30.19For this purpose, the rate of inflation shall be the annual inflationary increase calculated
30.20under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
30.21authority is expiring. In this case, the ballot may also compare the proposed levy authority
30.22to the existing expiring levy authority, and express the proposed increase as the amount, if
30.23any, over the expiring referendum levy authority. The ballot must designate the specific
30.24number of years, not to exceed ten, for which the referendum authorization applies. The
30.25ballot, including a ballot on the question to revoke or reduce the increased revenue amount
30.26under paragraph (c), must abbreviate the term "per resident marginal cost adjusted pupil
30.27unit" as "per pupil." The notice required under section 275.60 may be modified to read, in
30.28cases of renewing existing levies at the same amount per pupil as in the previous year:
30.29"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
30.30TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
30.31SCHEDULED TO EXPIRE."
30.32    The ballot may contain a textual portion with the information required in this
30.33subdivision and a question stating substantially the following:
30.34    "Shall the increase in the revenue proposed by (petition to) the board of .........,
30.35School District No. .., be approved?"
31.1    If approved, an amount equal to the approved revenue per resident marginal cost
31.2 adjusted pupil unit times the resident marginal cost adjusted pupil units for the school
31.3year beginning in the year after the levy is certified shall be authorized for certification
31.4for the number of years approved, if applicable, or until revoked or reduced by the voters
31.5of the district at a subsequent referendum.
31.6    (b) The board must prepare and deliver by first class mail at least 15 days but no more
31.7than 30 days before the day of the referendum to each taxpayer a notice of the referendum
31.8and the proposed revenue increase. The board need not mail more than one notice to any
31.9taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
31.10those shown to be owners on the records of the county auditor or, in any county where
31.11tax statements are mailed by the county treasurer, on the records of the county treasurer.
31.12Every property owner whose name does not appear on the records of the county auditor
31.13or the county treasurer is deemed to have waived this mailed notice unless the owner
31.14has requested in writing that the county auditor or county treasurer, as the case may be,
31.15include the name on the records for this purpose. The notice must project the anticipated
31.16amount of tax increase in annual dollars for typical residential homesteads, agricultural
31.17homesteads, apartments, and commercial-industrial property within the school district.
31.18    The notice for a referendum may state that an existing referendum levy is expiring
31.19and project the anticipated amount of increase over the existing referendum levy in
31.20the first year, if any, in annual dollars for typical residential homesteads, agricultural
31.21homesteads, apartments, and commercial-industrial property within the district.
31.22    The notice must include the following statement: "Passage of this referendum will
31.23result in an increase in your property taxes." However, in cases of renewing existing levies,
31.24the notice may include the following statement: "Passage of this referendum extends an
31.25existing operating referendum at the same amount per pupil as in the previous year."
31.26    (c) A referendum on the question of revoking or reducing the increased revenue
31.27amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
31.28revoke or reduce the revenue amount must state the amount per resident marginal cost
31.29pupil unit by which the authority is to be reduced. Revenue authority approved by the
31.30voters of the district pursuant to paragraph (a) must be available to the school district at
31.31least once before it is subject to a referendum on its revocation or reduction for subsequent
31.32years. Only one revocation or reduction referendum may be held to revoke or reduce
31.33referendum revenue for any specific year and for years thereafter.
31.34    (d) The approval of 50 percent plus one of those voting on the question is required to
31.35pass a referendum authorized by this subdivision.
32.1    (e) At least 15 days before the day of the referendum, the district must submit a
32.2copy of the notice required under paragraph (b) to the commissioner and to the county
32.3auditor of each county in which the district is located. Within 15 days after the results
32.4of the referendum have been certified by the board, or in the case of a recount, the
32.5certification of the results of the recount by the canvassing board, the district must notify
32.6the commissioner of the results of the referendum.
32.7    Subd. 10. School referendum levy; market value. A school referendum levy must
32.8be levied against the referendum market value of all taxable property as defined in section
32.9126C.01, subdivision 3 . Any referendum levy amount subject to the requirements of this
32.10subdivision must be certified separately to the county auditor under section 275.07.
32.11    Subd. 11. Referendum date. (a) Except for a referendum held under paragraph (b),
32.12any referendum under this section held on a day other than the first Tuesday after the first
32.13Monday in November must be conducted by mail in accordance with section 204B.46.
32.14Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
32.15conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
32.16must be prepared and delivered by first-class mail at least 20 days before the referendum.
32.17(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
32.18may grant authority to a district to hold a referendum on a different day if the district is in
32.19statutory operating debt and has an approved plan or has received an extension from the
32.20department to file a plan to eliminate the statutory operating debt.
32.21(c) The commissioner must approve, deny, or modify each district's request for a
32.22referendum levy on a different day within 60 days of receiving the request from a district.
32.23    Subd. 13. Referendum conversion allowance. A school district that received
32.24supplemental or transition revenue in fiscal year 2002 may convert its supplemental
32.25revenue conversion allowance and transition revenue conversion allowance to additional
32.26referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
32.27of the school board must approve the conversion at a public meeting before November 1,
32.282001. For a district with other referendum authority, the referendum conversion allowance
32.29approved by the board continues until the portion of the district's other referendum
32.30authority with the earliest expiration date after June 30, 2006, expires. For a district
32.31with no other referendum authority, the referendum conversion allowance approved by
32.32the board continues until June 30, 2012.
32.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
32.34and later.

32.35    Sec. 50. [126C.195] COMPENSATORY SUPPLEMENTAL FORMULA AID.
33.1A district that has an adjusted pupil unit count that is in the top 20 largest adjusted
33.2pupil unit counts in the prior school year is eligible for the greater of zero or $1,400 times
33.3the sum of the district's pupils eligible for free lunch and one-half of the district's pupils who
33.4are eligible for reduced lunch in the prior school year, minus the amount of compensatory
33.5education revenue received by the district under section 126C.10, subdivision 3, times .35.

33.6    Sec. 51. Minnesota Statutes 2012, section 126C.20, is amended to read:
33.7126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.
33.8There is annually appropriated from the general fund to the department the
33.9amount necessary for general education aid under section 126C.13, the early graduation
33.10achievement scholarship program under section 120B.08, and the early graduation
33.11military service award program under section 120B.09. This amount must be reduced by
33.12the amount of any money specifically appropriated for the same purpose in any year
33.13from any state fund.
33.14EFFECTIVE DATE.This section is effective for revenue in fiscal year 2014 and
33.15later.

33.16    Sec. 52. Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:
33.17    Subdivision 1. To lease building or land. (a) When an independent or a special
33.18school district or a group of independent or special school districts finds it economically
33.19advantageous to rent or lease a building or land for any instructional purposes or for
33.20school storage or furniture repair, and it determines that the operating capital revenue
33.21authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
33.22apply to the commissioner for permission to make an additional capital expenditure levy
33.23for this purpose. An application for permission to levy under this subdivision must contain
33.24financial justification for the proposed levy, the terms and conditions of the proposed
33.25lease, and a description of the space to be leased and its proposed use.
33.26    (b) The criteria for approval of applications to levy under this subdivision must
33.27include: the reasonableness of the price, the appropriateness of the space to the proposed
33.28activity, the feasibility of transporting pupils to the leased building or land, conformity
33.29of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
33.30the proposed lease to the space needs and the financial condition of the district. The
33.31commissioner must not authorize a levy under this subdivision in an amount greater than
33.32the cost to the district of renting or leasing a building or land for approved purposes.
33.33The proceeds of this levy must not be used for custodial or other maintenance services.
34.1A district may not levy under this subdivision for the purpose of leasing or renting a
34.2district-owned building or site to itself.
34.3    (c) For agreements finalized after July 1, 1997, a district may not levy under this
34.4subdivision for the purpose of leasing: (1) a newly constructed building used primarily
34.5for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
34.6building addition or additions used primarily for regular kindergarten, elementary, or
34.7secondary instruction that contains more than 20 percent of the square footage of the
34.8previously existing building.
34.9    (d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
34.10purpose of leasing or renting a district-owned building or site to itself only if the amount
34.11is needed by the district to make payments required by a lease purchase agreement,
34.12installment purchase agreement, or other deferred payments agreement authorized by law,
34.13and the levy meets the requirements of paragraph (c). A levy authorized for a district by
34.14the commissioner under this paragraph may be in the amount needed by the district to
34.15make payments required by a lease purchase agreement, installment purchase agreement,
34.16or other deferred payments agreement authorized by law, provided that any agreement
34.17include a provision giving the school districts the right to terminate the agreement
34.18annually without penalty.
34.19    (e) The total levy under this subdivision for a district for any year must not exceed
34.20$150 $162 times the resident adjusted pupil units for the fiscal year to which the levy
34.21is attributable.
34.22    (f) For agreements for which a review and comment have been submitted to the
34.23Department of Education after April 1, 1998, the term "instructional purpose" as used in
34.24this subdivision excludes expenditures on stadiums.
34.25    (g) The commissioner of education may authorize a school district to exceed the
34.26limit in paragraph (e) if the school district petitions the commissioner for approval. The
34.27commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
34.28for not more than five years if the district meets the following criteria:
34.29    (1) the school district has been experiencing pupil enrollment growth in the
34.30preceding five years;
34.31    (2) the purpose of the increased levy is in the long-term public interest;
34.32    (3) the purpose of the increased levy promotes colocation of government services; and
34.33    (4) the purpose of the increased levy is in the long-term interest of the district by
34.34avoiding over construction of school facilities.
34.35    (h) A school district that is a member of an intermediate school district may include
34.36in its authority under this section the costs associated with leases of administrative and
35.1classroom space for intermediate school district programs. This authority must not
35.2exceed $43 $46 times the adjusted marginal cost pupil units of the member districts. This
35.3authority is in addition to any other authority authorized under this section.
35.4    (i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
35.52012 to 2023, a district that is a member of the "Technology and Information Education
35.6Systems" data processing joint board, that finds it economically advantageous to enter into
35.7a lease agreement to finance improvements to a building and land for a group of school
35.8districts or special school districts for staff development purposes, may levy for its portion
35.9of lease costs attributed to the district within the total levy limit in paragraph (e). The total
35.10levy authority under this paragraph shall not exceed $632,000.
35.11(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
35.12purpose of leasing administrative space if the district can demonstrate to the satisfaction of
35.13the commissioner that the lease cost for the administrative space is no greater than the
35.14lease cost for instructional space that the district would otherwise lease. The commissioner
35.15must deny this levy authority unless the district passes a resolution stating its intent to
35.16lease instructional space under this section if the commissioner does not grant authority
35.17under this paragraph. The resolution must also certify that the lease cost for administrative
35.18space under this paragraph is no greater than the lease cost for the district's proposed
35.19instructional lease.
35.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
35.21and later.

35.22    Sec. 53. Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:
35.23    Subd. 6. Lease purchase; installment buys. (a) Upon application to, and approval
35.24by, the commissioner in accordance with the procedures and limits in subdivision 1,
35.25paragraphs (a) and (b), a district, as defined in this subdivision, may:
35.26(1) purchase real or personal property under an installment contract or may lease
35.27real or personal property with an option to purchase under a lease purchase agreement, by
35.28which installment contract or lease purchase agreement title is kept by the seller or vendor
35.29or assigned to a third party as security for the purchase price, including interest, if any; and
35.30(2) annually levy the amounts necessary to pay the district's obligations under the
35.31installment contract or lease purchase agreement.
35.32(b) The obligation created by the installment contract or the lease purchase
35.33agreement must not be included in the calculation of net debt for purposes of section
35.34475.53 , and does not constitute debt under other law. An election is not required in
35.35connection with the execution of the installment contract or the lease purchase agreement.
36.1(c) The proceeds of the levy authorized by this subdivision must not be used to
36.2acquire a facility to be primarily used for athletic or school administration purposes.
36.3(d) For the purposes of this subdivision, "district" means:
36.4(1) a school district which is eligible for revenue under section 124D.86, subdivision
36.53 , clause (1), (2), or (3), and whose Special School District No. 1, Minneapolis,
36.6Independent School District No. 625, St. Paul, Independent School District No. 709,
36.7Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
36.8 plan has been determined by the commissioner to be in compliance with Department of
36.9Education rules relating to equality of educational opportunity and school desegregation
36.10and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4)
36.11or (5), where the acquisition of property under this subdivision is determined by the
36.12commissioner to contribute to the implementation of the desegregation plan; or
36.13(2) a school district that participates in a joint program for interdistrict desegregation
36.14with a district defined in clause (1) other districts eligible for revenue under section
36.15124D.862 if the facility acquired under this subdivision is to be primarily used for the a
36.16 joint program for interdistrict desegregation and the commissioner determines that the
36.17joint programs are being undertaken to implement the districts' desegregation plan.
36.18(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
36.19or rent a district-owned building to itself does not apply to levies otherwise authorized
36.20by this subdivision.
36.21(f) For the purposes of this subdivision, any references in subdivision 1 to building
36.22or land shall include personal property.

36.23    Sec. 54. Minnesota Statutes 2012, section 126C.44, is amended to read:
36.24126C.44 SAFE SCHOOLS SUPPLEMENTAL LEVY; INTERMEDIATE
36.25SCHOOL DISTRICTS.
36.26    (a) Each district may make a levy on all taxable property located within the district
36.27for the purposes specified in this section. The maximum amount which may be levied
36.28for all costs under this section shall be equal to $30 multiplied by the district's adjusted
36.29marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
36.30used for directly funding the following purposes or for reimbursing the cities and counties
36.31who contract with the district for the following purposes: (1) to pay the costs incurred for
36.32the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
36.33services in the district's schools; (2) to pay the costs for a drug abuse prevention program
36.34as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
36.35(3) to pay the costs for a gang resistance education training curriculum in the district's
37.1schools; (4) to pay the costs for security in the district's schools and on school property; (5)
37.2to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
37.3opt-in suicide prevention tools, and violence prevention measures taken by the school
37.4district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
37.5school social workers, licensed school psychologists, and licensed alcohol and chemical
37.6dependency counselors to help provide early responses to problems. For expenditures
37.7under clause (1), the district must initially attempt to contract for services to be provided
37.8by peace officers or sheriffs with the police department of each city or the sheriff's
37.9department of the county within the district containing the school receiving the services. If
37.10a local police department or a county sheriff's department does not wish to provide the
37.11necessary services, the district may contract for these services with any other police or
37.12sheriff's department located entirely or partially within the school district's boundaries.
37.13    (b) A school district that is a member of an intermediate school district may include
37.14in its authority under this section make a levy on all taxable property located within the
37.15district for the costs associated with safe schools activities authorized under paragraph
37.16(a) for intermediate school district programs section 126C.10, subdivision 2g, at an
37.17intermediate school district. This authority must not exceed $10 $11 times the adjusted
37.18marginal cost pupil units of the member districts. This authority is in addition to any other
37.19authority authorized under this section. Revenue raised under this paragraph section must
37.20be transferred to the intermediate school district.

37.21    Sec. 55. Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:
37.22    Subd. 7. Alternative attendance programs. (a) The general education aid and
37.23special education aid for districts must be adjusted for each pupil attending a nonresident
37.24district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
37.25adjustments must be made according to this subdivision.
37.26    (a) General education aid paid to a resident district must be reduced by an amount
37.27equal to the referendum equalization aid attributable to the pupil in the resident district.
37.28    (b) General education aid paid to a district serving a pupil in programs listed in this
37.29subdivision must be increased by an amount equal to the greater of (1) the referendum
37.30equalization aid attributable to the pupil in the nonresident district; or (2) the product of
37.31the district's open enrollment concentration index, the maximum amount of referendum
37.32revenue in the first tier, and the district's net open enrollment pupil units for that year. A
37.33district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
37.34lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
37.35served to its resident pupil units for that year and 0.2. This clause does not apply to a
38.1school district where more than 50 percent of the open enrollment students are enrolled
38.2solely in online learning courses.
38.3    (c) If the amount of the reduction to be made from the general education aid of the
38.4resident district is greater than the amount of general education aid otherwise due the
38.5district, the excess reduction must be made from other state aids due the district.
38.6    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
38.7area learning center, operated according to paragraph (f), providing special instruction and
38.8services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
38.9section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
38.10be equal to (1) the actual cost of providing special instruction and services to the pupil,
38.11including a proportionate amount for special transportation and unreimbursed building
38.12lease and debt service costs for facilities used primarily for special education, minus (2)
38.13if the pupil receives special instruction and services outside the regular classroom for
38.14more than 60 percent of the school day, the amount of general education revenue and
38.15referendum aid attributable to that pupil for the portion of time the pupil receives special
38.16instruction and services outside of the regular classroom, excluding portions attributable to
38.17district and school administration, district support services, operations and maintenance,
38.18capital expenditures, and pupil transportation, minus (3) special education aid attributable
38.19to that pupil, that is received by the district providing special instruction and services.
38.20For purposes of this paragraph, general education revenue and referendum equalization
38.21aid attributable to a pupil must be calculated using the serving district's average general
38.22education revenue and referendum equalization aid per adjusted pupil unit.
38.23    (e) For fiscal year 2007 and later, special education aid paid to a resident district must
38.24be reduced by an amount equal to (b) For purposes of this subdivision, the "unreimbursed
38.25cost of providing special education and services" means the difference between: (1) the
38.26actual cost of providing special instruction and services, including special transportation
38.27and unreimbursed building lease and debt service costs for facilities used primarily for
38.28special education, for a pupil with a disability, as defined in section 125A.02, or a pupil, as
38.29defined in section 125A.51, who is enrolled in a program listed in this subdivision, minus
38.30(2) if the pupil receives special instruction and services outside the regular classroom for
38.31more than 60 percent of the school day, the amount of general education revenue and
38.32referendum equalization aid attributable to that pupil for the portion of time the pupil
38.33receives special instruction and services outside of the regular classroom, excluding
38.34portions attributable to district and school administration, district support services,
38.35operations and maintenance, capital expenditures, and pupil transportation, minus (3)
38.36special education aid under section 125A.76 attributable to that pupil, that is received by
39.1the district providing special instruction and services. For purposes of this paragraph,
39.2general education revenue and referendum equalization aid attributable to a pupil must be
39.3calculated using the serving district's average general education revenue and referendum
39.4equalization aid per adjusted pupil unit.
39.5(c) For fiscal year 2015 and later, special education aid paid to a resident district
39.6must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
39.7special education and services.
39.8(d) Notwithstanding paragraph (c), special education aid paid to a resident district
39.9must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
39.10education and services provided to students at an intermediate district, cooperative, or
39.11charter school where the percent of students eligible for special education services is at
39.12least 70 percent of the charter school's total enrollment.
39.13    (e) Special education aid paid to the district or cooperative providing special
39.14instruction and services for the pupil, or to the fiscal agent district for a cooperative,
39.15must be increased by the amount of the reduction in the aid paid to the resident district
39.16 under paragraphs (c) and (d). If the resident district's special education aid is insufficient
39.17to make the full adjustment, the remaining adjustment shall be made to other state aids
39.18due to the district.
39.19    (f) An area learning center operated by a service cooperative, intermediate district,
39.20education district, or a joint powers cooperative may elect through the action of the
39.21constituent boards to charge the resident district tuition for pupils rather than to have the
39.22general education revenue paid to a fiscal agent school district. Except as provided in
39.23paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
39.24of the district average general education revenue per pupil unit minus an amount equal
39.25to the product of the formula allowance according to section 126C.10, subdivision 2,
39.26times .0485 .0465, calculated without compensatory revenue and transportation sparsity
39.27revenue, times the number of pupil units for pupils attending the area learning center.
39.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
39.29and later.

39.30    Sec. 56. Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:
39.31    Subd. 8. Charter schools. (a) The general education aid for districts must be
39.32adjusted for each pupil attending a charter school under section 124D.10. The adjustments
39.33must be made according to this subdivision.
40.1(b) General education aid paid to a district in which a charter school not providing
40.2transportation according to section 124D.10, subdivision 16, is located must be increased
40.3by an amount equal to the sum of:
40.4(1) the product of: (i) the sum of an amount equal to the product of the formula
40.5allowance according to section 126C.10, subdivision 2, times .0485 .0465, plus the
40.6transportation sparsity allowance for the district; times (ii) the adjusted marginal cost
40.7 pupil units attributable to the pupil; plus
40.8(2) the product of $223 and the extended time marginal cost pupil units attributable
40.9to the pupil.
40.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
40.11and later.

40.12    Sec. 57. Minnesota Statutes 2012, section 127A.51, is amended to read:
40.13127A.51 STATEWIDE AVERAGE REVENUE.
40.14By October 1 of each year the commissioner must estimate the statewide average
40.15adjusted general revenue per adjusted marginal cost pupil unit and the disparity in adjusted
40.16general revenue among pupils and districts by computing the ratio of the 95th percentile
40.17to the fifth percentile of adjusted general revenue. The commissioner must provide that
40.18information to all districts.
40.19If the disparity in adjusted general revenue as measured by the ratio of the 95th
40.20percentile to the fifth percentile increases in any year, the commissioner shall recommend
40.21to the legislature options for change in the general education formula that will limit the
40.22disparity in adjusted general revenue to no more than the disparity for the previous
40.23school year. The commissioner must submit the recommended options to the education
40.24committees of the legislature by January 15.
40.25For purposes of this section and section 126C.10, adjusted general revenue means:
40.26(1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
40.272 ; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
40.28under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
40.29equity revenue under section 126C.10, subdivisions 24a and 24b; and
40.30(2) for fiscal year 2003 and later, the sum of basic revenue under section 126C.10,
40.31subdivision 2 ; referendum revenue under section 126C.17; and equity revenue under
40.32section 126C.10, subdivisions 24a and 24b subdivision 24.
40.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
40.34and later.

41.1    Sec. 58. Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:
41.2    Subd. 3. No election. Subject to the provisions of subdivisions 7 to 10, the school
41.3district may also by a two-thirds majority vote of all the members of its board of education
41.4and without any election by the voters of the district, issue and sell in each calendar year
41.5general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
41.6net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
41.72003, an amount not to exceed $7,500,000, and for calendar years 2004 to 2016 2026,
41.8an amount not to exceed $15,000,000; with an additional provision that any amount of
41.9bonds so authorized for sale in a specific year and not sold can be carried forward and
41.10sold in the year immediately following).
41.11EFFECTIVE DATE.This section is effective July 1, 2013.

41.12    Sec. 59. Laws 2007, chapter 146, article 4, section 12, is amended to read:
41.13    Sec. 12. BONDING AUTHORIZATION.
41.14    To provide funds for the acquisition or betterment of school facilities, Independent
41.15School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
41.16the board of directors issue general obligation bonds in one or more series for calendar
41.17years 2008 through 2016 to 2026, as provided in this section. The aggregate principal
41.18amount of any bonds issued under this section for each calendar year must not exceed
41.19$15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or
41.20475.59 . The bonds must otherwise be issued as provided in Minnesota Statutes, chapter
41.21475. The authority to issue bonds under this section is in addition to any bonding authority
41.22authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
41.23authority authorized under this section must be disregarded in calculating the bonding
41.24limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
41.25section 475.53, subdivision 4.
41.26EFFECTIVE DATE.This section is effective July 1, 2013.

41.27    Sec. 60. SCHOOL DISTRICT LEVY ADJUSTMENTS.
41.28    Subdivision 1. Tax rate adjustment. The commissioner of education must adjust
41.29each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
41.30by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
41.312012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or
41.32a similarly styled bill passed in a special session, to the statewide total tax capacity for
41.33assessment year 2012.
42.1    Subd. 2. Equalizing factors. The commissioner of education must adjust each
42.2school district equalizing factor established under Minnesota Statutes, chapters 120B to
42.3127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
42.4assessment year 2012 as it existed prior to the passage of Regular Session 2013 House
42.5File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax
42.6capacity for assessment year 2012.

42.7    Sec. 61. APPROPRIATIONS.
42.8    Subdivision 1. Department of Education. The sums indicated in this section are
42.9appropriated from the general fund to the Department of Education for the fiscal years
42.10designated.
42.11    Subd. 2. General education aid. For general education aid under Minnesota
42.12Statutes, section 126C.13, subdivision 4:

42.13		$	6,045,457,000	.....	2014
42.14		$	6,351,602,000	.....	2015

42.15The 2014 appropriation includes $781,842,000 for 2013 and $5,263,615,000 for
42.162014.
42.17The 2015 appropriation includes $857,828,000 for 2014 and $5,493,774,000 for
42.182015.
42.19    Subd. 3. Enrollment options transportation. For transportation of pupils attending
42.20postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
42.21of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

42.22		$	44,000	.....	2014
42.23		$	48,000	.....	2015

42.24    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
42.25127A.49:

42.26		$	2,722,000	.....	2014
42.27		$	3,133,000	.....	2015

42.28The 2014 appropriation includes $301,000 for 2013 and $2,421,000 for 2014.
42.29The 2015 appropriation includes $410,000 for 2014 and $2,723,000 for 2015.
42.30    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
42.31Statutes, section 123A.485:

43.1		$	468,000	.....	2014
43.2		$	479,000	.....	2015

43.3The 2014 appropriation includes $40,000 for 2013 and $428,000 for 2014.
43.4The 2015 appropriation includes $72,000 for 2014 and $407,000 for 2015.
43.5    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
43.6Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

43.7		$	15,376,000	.....	2014
43.8		$	15,879,000	.....	2015

43.9The 2014 appropriation includes $2,099,000 for 2013 and $13,277,000 for 2014.
43.10The 2015 appropriation includes $2,251,000 for 2014 and $13,628,000 for 2015.
43.11    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
43.12under Minnesota Statutes, section 123B.92, subdivision 9:

43.13		$	18,322,000	.....	2014
43.14		$	18,607,000	.....	2015

43.15The 2014 appropriation includes $2,668,000 for 2013 and $15,654,000 for 2014.
43.16The 2015 appropriation includes $2,654,000 for 2014 and $15,953,000 for 2015.
43.17    Subd. 8. One-room schoolhouse. For a grant to Independent School District No.
43.18690, Warroad, to operate the Angle Inlet School:

43.19		$	65,000	.....	2014
43.20		$	65,000	.....	2015

43.21    Subd. 9. Compensatory supplemental formula aid. For grants for compensatory
43.22pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:

43.23		$	6,278,000	.....	2014
43.24		$	4,924,000	.....	2015

43.25The 2014 appropriation includes $2,109,000 for 2013 and $4,169,000 for 2014.
43.26The 2015 appropriation includes $706,000 for 2014 and $4,218,000 for 2015.
43.27    Subd. 10. Compensatory revenue pilot project. For grants for participation in the
43.28compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
43.29article 1, section 50, as amended by Laws 2007, chapter 146, article 1, section 21:

43.30		$	2,325,000	2014
43.31		$	2,325,000	2015

43.32Of this amount, $1,500,000 in each year is for a grant to Independent School District
43.33No. 11, Anoka-Hennepin; $75,000 in each year is for a grant to Independent School District
44.1No. 286, Brooklyn Center; $210,000 in each year is for a grant to Independent School
44.2District No. 279, Osseo; $160,000 in each year is for a grant to Independent School District
44.3No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent School District
44.4No. 535, Rochester; $65,000 in each year is for a grant to Independent School District No.
44.5833, South Washington; and $150,000 in each year is for a grant to Independent School
44.6District No. 241, Albert Lea. If a grant to a specific school district is not awarded, the
44.7commissioner may increase the aid amounts to any of the remaining participating school
44.8districts. This appropriation is part of the base budget for subsequent fiscal years.

44.9    Sec. 62. REPEALER.
44.10(a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, are repealed for fiscal
44.11year 2014 and later.
44.12(b) Minnesota Statutes 2012, sections 126C.10, subdivisions 13a, 13b, 25, 26, 28,
44.1331a, 31b, 31c, 34, 35, and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and
44.145, are repealed for fiscal year 2015 and later.

44.15ARTICLE 2

44.16STUDENT ACCOUNTABILITY

44.17    Section 1. Minnesota Statutes 2012, section 120B.02, is amended to read:
44.18120B.02 EDUCATIONAL EXPECTATIONS AND GRADUATION
44.19REQUIREMENTS FOR MINNESOTA'S STUDENTS.
44.20    Subdivision 1. Educational expectations. (a) The legislature is committed to
44.21establishing rigorous academic standards for Minnesota's public school students. To
44.22that end, the commissioner shall adopt in rule statewide academic standards. The
44.23commissioner shall not prescribe in rule or otherwise the delivery system, classroom
44.24assessments, or form of instruction that school sites must use. For purposes of this chapter,
44.25a school site is a separate facility, or a separate program within a facility that a local school
44.26board recognizes as a school site for funding purposes.
44.27(b) All commissioner actions regarding the rule must be premised on the following:
44.28(1) the rule is intended to raise academic expectations for students, teachers, and
44.29schools;
44.30(2) any state action regarding the rule must evidence consideration of school district
44.31autonomy; and
44.32(3) the Department of Education, with the assistance of school districts, must make
44.33available information about all state initiatives related to the rule to students and parents,
45.1teachers, and the general public in a timely format that is appropriate, comprehensive, and
45.2readily understandable.
45.3(c) When fully implemented, the requirements for high school graduation in
45.4Minnesota must require students to satisfactorily complete, as determined by the school
45.5district, the course credit requirements under section 120B.024, all state academic
45.6standards or local academic standards where state standards do not apply, and successfully
45.7pass graduation examinations as required under section 120B.30.
45.8(d) (c) The commissioner shall periodically review and report on the state's
45.9assessment process.
45.10(e) (d) School districts are not required to adopt specific provisions of the federal
45.11School-to-Work programs.
45.12    Subd. 2. Graduation requirements. To graduate from high school, students must
45.13demonstrate to their enrolling school district or school their satisfactory completion of the
45.14credit requirements under section 120B.024 and their understanding of academic standards
45.15or a nationally normed college entrance exam. A school district must adopt graduation
45.16requirements that meet or exceed state graduation requirements established in law or rule.
45.17EFFECTIVE DATE.This section is effective August 1, 2013, and applies to
45.18students entering grade 8 in the 2012-2013 school year and later.

45.19    Sec. 2. Minnesota Statutes 2012, section 120B.125, is amended to read:
45.20120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION
45.21TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY
45.22CAREER TRACKING PROHIBITED.
45.23(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14,
45.24120B.15 , 120B.30, subdivision 1, paragraph (c), 125A.08, and other related sections,
45.25school districts are strongly encouraged to, beginning in the 2013-2014 school year, must
45.26 assist all students by no later than grade 9 to explore their college and career interests and
45.27aspirations and develop a plan for a smooth and successful transition to postsecondary
45.28education or employment. All students' plans must be designed to:
45.29(1) provide a comprehensive academic plan for completing a college and
45.30career-ready curriculum premised on meeting state and local academic standards and
45.31developing 21st century skills such as team work, collaboration, and good work habits;
45.32(2) emphasize academic rigor and high expectations;
45.33(3) help students identify personal learning styles that may affect their postsecondary
45.34education and employment choices;
46.1(4) help students succeed at gaining gain access to postsecondary education and
46.2career options;
46.3(5) integrate strong academic content into career-focused courses and integrate
46.4relevant career-focused courses into strong academic content;
46.5(6) help students and families identify and gain access to appropriate counseling
46.6and other supports and assistance that enable students to complete required coursework,
46.7prepare for postsecondary education and careers, and obtain information about
46.8postsecondary education costs and eligibility for financial aid and scholarship;
46.9(7) help students and families identify collaborative partnerships of kindergarten
46.10through grade 12 schools, postsecondary institutions, economic development agencies, and
46.11employers that support students' transition to postsecondary education and employment
46.12and provide students with experiential learning opportunities; and
46.13(8) be reviewed and revised at least annually by the student, the student's parent or
46.14guardian, and the school or district to ensure that the student's course-taking schedule
46.15keeps the student "on track" making adequate progress to meet state and local high school
46.16graduation requirements and with a reasonable chance to succeed with employment or
46.17postsecondary education without the need to first complete remedial course work.
46.18(b) A school district may develop grade-level curricula or provide instruction that
46.19introduces students to various careers, but must not require any curriculum, instruction,
46.20or employment-related activity that obligates an elementary or secondary student to
46.21involuntarily select a career, career interest, employment goals, or related job training.
46.22(c) School districts are encouraged to seek and use revenue and in-kind contributions
46.23from nonstate sources and to seek administrative cost savings through innovative local
46.24funding arrangements, such as the Collaboration Among Rochester Educators (CARE)
46.25model for funding postsecondary enrollment options, among other sources, for purposes
46.26of implementing this section.
46.27EFFECTIVE DATE.This section is effective the day following final enactment.

46.28    Sec. 3. Minnesota Statutes 2012, section 120B.128, is amended to read:
46.29120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM
46.30(EPAS) PROGRAM.
46.31(a) School districts and charter schools may elect to participate in the Educational
46.32Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a
46.33longitudinal, systematic approach to student educational and career planning, assessment,
46.34instructional support, and evaluation. The EPAS achievement tests include English,
47.1reading, mathematics, science, and components on planning for high school and
47.2postsecondary education, interest inventory, needs assessments, and student education
47.3plans. These tests are linked to the ACT assessment for college admission and allow
47.4students, parents, teachers, and schools to determine the student's college readiness before
47.5grades 11 and 12.
47.6(b) The commissioner of education shall provide ACT Explore tests for students
47.7in grade 8 and the ACT Plan test for students in grade 10 to assess individual student
47.8academic strengths and weaknesses, academic achievement and progress, higher order
47.9thinking skills, and college readiness.
47.10(c) Students enrolled in grade 8 through the 2011-2012 school year who have
47.11not yet demonstrated proficiency on the Minnesota comprehensive assessments, the
47.12graduation-required assessments for diploma, or the basic skills testing requirements
47.13prior to high school graduation may satisfy state high school graduation requirements for
47.14assessments in reading, mathematics, and writing by taking the WorkKeys job skills
47.15assessment, the Compass college placement test, or the ACT assessment for college
47.16admission.
47.17(d) The state shall pay the test costs for school districts and charter schools that
47.18choose to participate in the EPAS program public school students to participate in the
47.19assessments under this section. The commissioner shall establish an application procedure
47.20and a process for state payment of costs.
47.21EFFECTIVE DATE.This section is effective the day following final enactment.

47.22    Sec. 4. Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:
47.23    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
47.24with appropriate technical qualifications and experience and stakeholders, consistent
47.25with subdivision 1a, shall include in the comprehensive assessment system, for each
47.26grade level to be tested, state-constructed tests developed from and as computer-adaptive
47.27reading and mathematics assessments for students that are aligned with the state's required
47.28academic standards under section 120B.021, include multiple choice questions, and be are
47.29 administered annually to all students in grades 3 through 8 7. Reading and mathematics
47.30assessments for all students in grade 8 must be aligned with the state's required reading and
47.31mathematics standards, be administered annually, and include multiple choice questions.
47.32 State-developed high school tests aligned with the state's required academic standards
47.33under section 120B.021 and administered to all high school students in a subject other
47.34than writing must include multiple choice questions. The commissioner shall establish
47.35one or more months during which schools shall administer the tests to students each
48.1school year. For students enrolled in grade 8 before the 2005-2006 school year, Minnesota
48.2basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills
48.3testing requirements for a passing state notation. The passing scores of basic skills tests in
48.4reading and mathematics are the equivalent of 75 percent correct for students entering
48.5grade 9 based on the first uniform test administered in February 1998. Students who
48.6have not successfully passed a Minnesota basic skills test by the end of the 2011-2012
48.7school year must pass the graduation-required assessments for diploma under paragraph
48.8(c), except that for the 2012-2013 and 2013-2014 school years only, these students may
48.9satisfy the state's graduation test requirement for math by complying with paragraph
48.10(d), clauses (1) and (3) (1) Students enrolled in grade 8 through the 2009-2010 school
48.11year are eligible to be assessed under (i) the graduation-required assessment for diploma
48.12in reading, mathematics, or writing under Minnesota Statutes 2012, section 120B.30,
48.13subdivision 1, paragraphs (c), clauses (1) and (2), and (d), (ii) the WorkKeys job skills
48.14assessment, (iii) a computer-adaptive college placement test, or (iv) the ACT assessment
48.15for college admission. (2) Students enrolled in grade 8 in the 2010-2011 or 2011-2012
48.16school year are eligible to be assessed under (i) the graduation-required assessment for
48.17diploma in reading, mathematics, or writing under Minnesota Statutes 2012, section
48.18120B.30, subdivision 1, paragraph (c), clauses (1) and (2), (ii) the WorkKeys job skills
48.19assessment, (iii) a computer-adaptive college placement test, or (iv) the ACT assessment
48.20for college admission.
48.21(b) The state assessment system must be aligned to the most recent revision of
48.22academic standards as described in section 120B.023 in the following manner:
48.23(1) mathematics;
48.24(i) grades 3 through 8 beginning in the 2010-2011 school year; and
48.25(ii) high school level beginning in the 2013-2014 school year;
48.26(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012
48.27school year; and
48.28(3) language arts and reading; grades 3 through 8 and high school level beginning in
48.29the 2012-2013 school year.
48.30    (c) For students enrolled in grade 8 in the 2005-2006 2012-2013 school year and
48.31later, only the following options shall fulfill students' state graduation test requirements,
48.32based on a longitudinal, systematic approach to student education and career planning,
48.33assessment, instructional support, and evaluation, include the following:
48.34    (1) for reading and mathematics:
48.35    (i) obtaining an achievement level equivalent to or greater than proficient as
48.36determined through a standard setting process on the Minnesota comprehensive
49.1assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
49.2score as determined through a standard setting process on the graduation-required
49.3assessment for diploma in grade 10 for reading and grade 11 for mathematics or
49.4subsequent retests;
49.5    (ii) achieving a passing score as determined through a standard setting process
49.6on the state-identified language proficiency test in reading and the mathematics test for
49.7English learners or the graduation-required assessment for diploma equivalent of those
49.8assessments for students designated as English learners;
49.9    (iii) achieving an individual passing score on the graduation-required assessment for
49.10diploma as determined by appropriate state guidelines for students with an individualized
49.11education program or 504 plan;
49.12    (iv) obtaining achievement level equivalent to or greater than proficient as
49.13determined through a standard setting process on the state-identified alternate assessment
49.14or assessments in grade 10 for reading and grade 11 for mathematics for students with
49.15an individualized education program; or
49.16    (v) achieving an individual passing score on the state-identified alternate assessment
49.17or assessments as determined by appropriate state guidelines for students with an
49.18individualized education program; and
49.19    (2) for writing:
49.20    (i) achieving a passing score on the graduation-required assessment for diploma;
49.21    (ii) achieving a passing score as determined through a standard setting process on
49.22the state-identified language proficiency test in writing for students designated as English
49.23learners;
49.24    (iii) achieving an individual passing score on the graduation-required assessment for
49.25diploma as determined by appropriate state guidelines for students with an individualized
49.26education program or 504 plan; or
49.27    (iv) achieving an individual passing score on the state-identified alternate assessment
49.28or assessments as determined by appropriate state guidelines for students with an
49.29individualized education program.
49.30    (1) understanding of required academic standards as demonstrated on a nationally
49.31normed college entrance exam;
49.32    (2) achievement and career and college readiness tests in mathematics, reading, and
49.33writing, consistent with paragraph (e) and to the extent available, to monitor students'
49.34continuous development of and growth in requisite knowledge and skills; analyze
49.35students' progress and performance levels, identifying students' academic strengths and
49.36diagnosing areas where students require curriculum or instructional adjustments, targeted
50.1interventions, or remediation; and, based on analysis of students' progress and performance
50.2data, determine students' learning and instructional needs and the instructional tools and
50.3best practices that support academic rigor for the student; and
50.4    (3) consistent with this paragraph and section 120B.125, age-appropriate exploration
50.5and planning activities and career assessments to encourage students to identify personally
50.6relevant career interests and aptitudes and help students and their families develop a
50.7regularly reexamined transition plan for postsecondary education or employment without
50.8need for postsecondary remediation.
50.9Based on appropriate state guidelines, students with an individualized education program
50.10may satisfy state graduation requirements by achieving an individual score on the
50.11state-identified alternative assessments.
50.12Expectations of schools, districts, and the state for career or college readiness under
50.13this subdivision must be comparable in rigor, clarity of purpose, and rates of student
50.14completion. A student under clause (2) must receive targeted, relevant, academically
50.15rigorous, and resourced instruction, which may include a targeted instruction and
50.16intervention plan focused on improving the student's knowledge and skills in core subjects
50.17so that the student has a reasonable chance to succeed in a career or college without need
50.18for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091,
50.19124D.49, and related sections, an enrolling school or district must actively encourage a
50.20student in grade 11 or 12 who is identified as academically ready for a career or college
50.21to participate in courses and programs awarding college credit to high school students.
50.22Students are not required to achieve a specified score or level of proficiency on an
50.23assessment under this subdivision to graduate from high school.
50.24    (d) Students enrolled in grade 8 in any school year from the 2005-2006 school
50.25year to the 2009-2010 school year who do not pass the mathematics graduation-required
50.26assessment for diploma under paragraph (c) are eligible to receive a high school diploma
50.27if they:
50.28(1) complete with a passing score or grade all state and local coursework and credits
50.29required for graduation by the school board granting the students their diploma;
50.30(2) participate in district-prescribed academic remediation in mathematics; and
50.31    (3) fully participate in at least two retests of the mathematics GRAD test or until
50.32they pass the mathematics GRAD test, whichever comes first. To improve the secondary
50.33and postsecondary outcomes of all students, the alignment between secondary and
50.34postsecondary education programs and Minnesota's workforce needs, and the efficiency
50.35and cost-effectiveness of secondary and postsecondary programs, the commissioner, after
50.36consulting with the chancellor of the Minnesota State Colleges and Universities and using
51.1a request for proposal process, shall contract for a series of assessments that are consistent
51.2with this subdivision, aligned with state academic standards, and include career and
51.3college readiness benchmarks. Mathematics, reading, and writing assessments for students
51.4in grades 8 and 10 must be predictive of and aligned with a nationally normed assessment
51.5for career and college readiness. This nationally recognized assessment must be a college
51.6entrance exam and given to students in grade 11 or 12. This series of assessments must
51.7include a college placement diagnostic exam and contain career exploration elements. The
51.8commissioner and the chancellor of the Minnesota State Colleges and Universities must
51.9collaborate in aligning instruction and assessments for adult basic education students to
51.10provide the students with diagnostic information about any targeted interventions they
51.11need so that they may seek postsecondary education or employment without need for
51.12postsecondary remediation.
51.13    (1) Districts and schools, on an annual basis, must use the career exploration
51.14elements in these assessments to help students, beginning no later than grade 9, and their
51.15families explore and plan for postsecondary education or careers based on the students'
51.16interests, aptitudes, and aspirations. Districts and schools must use timely regional labor
51.17market information and partnerships, among other resources, to help students and their
51.18families successfully develop, pursue, review, and revise an individualized plan for
51.19postsecondary education or a career. This process must help increase students' engagement
51.20in and connection to school, improve students' knowledge and skills, and deepen students'
51.21understanding of career pathways as a sequence of academic and career courses that lead
51.22to an industry-recognized credential, an associate's degree, or a bachelor's degree and are
51.23available to all students, whatever their interests and career goals.
51.24    (2) Students who, based on their growth in academic achievement between grades 8
51.25and 10, show adequate progress toward meeting state career and college readiness must be
51.26given the college entrance exam part of these assessments in grade 11. A student under
51.27this clause who demonstrates attainment of required state academic standards, which
51.28include career and college readiness benchmarks, on these assessments is academically
51.29ready for a career or college and is encouraged to participate in courses and programs
51.30awarding college credit to high school students. Such courses and programs may include
51.31sequential courses of study within broad career areas and technical skill assessments
51.32that extend beyond course grades.
51.33    (3) All students in grade 11 not subject to clause (2) must be given the college
51.34placement diagnostic exam so that the students, their families, the school, and the district
51.35can use the results to diagnose areas for targeted instruction, intervention, or remediation
51.36and improve students' knowledge and skills in core subjects sufficient for the student
52.1to graduate and have a reasonable chance to succeed in a career or college without
52.2remediation. These students must be given the college entrance exam part of these
52.3assessments in grade 12.
52.4    (4) A student in clause (3) who demonstrates: (i) attainment of required state
52.5academic standards, which include career and college readiness benchmarks, on these
52.6assessments; (ii) attainment of career and college readiness benchmarks on the college
52.7placement diagnostic part of these assessments; and, where applicable, (iii) successfully
52.8completes targeted instruction, intervention, or remediation approved by the commissioner
52.9and the chancellor of the Minnesota State Colleges and Universities after consulting with
52.10local school officials and educators, is academically ready for a career or college and is
52.11encouraged to participate in courses and programs awarding college credit to high school
52.12students. Such courses and programs may include sequential courses of study within
52.13broad career areas and technical skill assessments that extend beyond course grades.
52.14    (5) A study to determine the alignment between these assessments and state
52.15academic standards under this chapter must be conducted. Where alignment exists, the
52.16commissioner must seek federal approval to, and immediately upon receiving approval,
52.17replace the federally required assessments referenced under subdivision 1a and section
52.18120B.35, subdivision 2, with assessments under this paragraph.
52.19    (e) In developing, supporting, and improving students' academic readiness for a
52.20career or college, schools, districts, and the state must have a continuum of empirically
52.21derived, clearly defined benchmarks focused on students' attainment of knowledge and
52.22skills so that students, their parents, and teachers know how well students must perform to
52.23have a reasonable chance to succeed in a career or college without need for postsecondary
52.24remediation. The commissioner and Minnesota's public postsecondary institutions must
52.25ensure that the foundational knowledge and skills for students' successful performance
52.26in postsecondary employment or education and an articulated series of possible targeted
52.27interventions are clearly identified and satisfy Minnesota's postsecondary admissions
52.28requirements.
52.29    (f) A school, district, or charter school must place record on the high school
52.30transcript a student's current pass status for each subject that has a required graduation
52.31assessment progress toward career and college readiness.
52.32    In addition, (g) The school board granting the students their diplomas may formally
52.33decide to include a notation of high achievement on the high school diplomas of those
52.34graduating seniors who, according to established school board criteria, demonstrate
52.35exemplary academic achievement during high school.
53.1(e) (h) The 3rd through 8th 7th grade computer-adaptive assessment results and
53.2high school test results shall be available to districts for diagnostic purposes affecting
53.3student learning and district instruction and curriculum, and for establishing educational
53.4accountability. The commissioner must establish empirically derived benchmarks on
53.5adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and
53.6college readiness. The commissioner must disseminate to the public the computer-adaptive
53.7assessments, grade 8, and high school test results upon receiving those results.
53.8    (f) (i) The 3rd through 8th grade grades 3 through 7 computer-adaptive assessments,
53.9grade 8, and high school tests must be aligned with state academic standards. The
53.10commissioner shall determine the testing process and the order of administration.
53.11The statewide results shall be aggregated at the site and district level, consistent with
53.12subdivision 1a.
53.13    (g) In addition to the testing and reporting requirements under this section, (j) The
53.14commissioner shall include the following components in the statewide public reporting
53.15system:
53.16    (1) uniform statewide testing computer-adaptive assessments of all students in
53.17grades 3 through 8 7 and testing at the grade 8 and high school level levels that provides
53.18appropriate, technically sound accommodations or alternate assessments;
53.19    (2) educational indicators that can be aggregated and compared across school
53.20districts and across time on a statewide basis, including average daily attendance, high
53.21school graduation rates, and high school drop-out rates by age and grade level;
53.22    (3) state results on the American College Test; and
53.23    (4) state results from participation in the National Assessment of Educational
53.24Progress so that the state can benchmark its performance against the nation and other
53.25states, and, where possible, against other countries, and contribute to the national effort
53.26to monitor achievement.
53.27EFFECTIVE DATE.This section is effective the day following final enactment
53.28and applies to the 2013-2014 school year and later, except that paragraph (a) applies
53.29the day following final enactment and the requirements for using computer-adaptive
53.30mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016
53.31school year and later. The series of assessments contracted for under paragraph (d) apply
53.32in the 2014-2015 school year and later.

53.33    Sec. 5. Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:
53.34    Subd. 1a. Statewide and local assessments; results. (a) For purposes of this
53.35section, the following definitions have the meanings given them.
54.1(1) "Computer-adaptive assessments" means fully adaptive assessments.
54.2(2) "Fully adaptive assessments" include test items that are on-grade level and items
54.3that may be above or below a student's grade level.
54.4(3) "On-grade level" test items contain subject area content that is aligned to state
54.5academic standards for the grade level of the student taking the assessment.
54.6(4) "Above-grade level" test items contain subject area content that is above the
54.7grade level of the student taking the assessment and is considered aligned with state
54.8academic standards to the extent it is aligned with content represented in state academic
54.9standards above the grade level of the student taking the assessment. Notwithstanding
54.10the student's grade level, administering above-grade level test items to a student does not
54.11violate the requirement that state assessments must be aligned with state standards.
54.12(5) "Below-grade level" test items contain subject area content that is below the
54.13grade level of the student taking the test and is considered aligned with state academic
54.14standards to the extent it is aligned with content represented in state academic standards
54.15below the student's current grade level. Notwithstanding the student's grade level,
54.16administering below-grade level test items to a student does not violate the requirement
54.17that state assessments must be aligned with state standards.
54.18(b) The commissioner must use fully adaptive mathematics and reading assessments
54.19for grades 3 through 7 beginning in the 2015-2016 school year and later.
54.20(c) For purposes of conforming with existing federal educational accountability
54.21requirements, the commissioner must develop and implement computer-adaptive reading
54.22and mathematics assessments for grades 3 through 8 7, state-developed grade 8 and
54.23 high school reading and mathematics tests aligned with state academic standards, and
54.24science assessments under clause (2) that districts and sites must use to monitor student
54.25growth toward achieving those standards. The commissioner must not develop statewide
54.26assessments for academic standards in social studies, health and physical education, and
54.27the arts. The commissioner must require:
54.28    (1) annual computer-adaptive reading and mathematics assessments in grades 3
54.29through 8 7, and grade 8 and high school reading and mathematics tests; and
54.30    (2) annual science assessments in one grade in the grades 3 through 5 span, the
54.31grades 6 through 8 span, and a life sciences assessment in the grades 9 through 12 span,
54.32and the commissioner must not require students to achieve a passing score on high school
54.33science assessments as a condition of receiving a high school diploma.
54.34(d) The commissioner must ensure that for annual computer-adaptive assessments:
55.1(1) individual student performance data and achievement reports are available
55.2within three school days of when students take an assessment except in a year when an
55.3assessment reflects new performance standards;
55.4(2) growth information is available for each student from the student's first
55.5assessment to each proximate assessment using a constant measurement scale;
55.6(3) parents, teachers, and school administrators are able to use elementary and
55.7middle school student performance data to project students' secondary and postsecondary
55.8achievement; and
55.9(4) useful diagnostic information about areas of students' academic strengths and
55.10weaknesses is available to teachers and school administrators for improving student
55.11instruction and indicating the specific skills and concepts that should be introduced and
55.12developed for students at given performance levels, organized by strands within subject
55.13areas, and aligned to state academic standards.
55.14    (b) (e) The commissioner must ensure that all statewide state tests administered to
55.15elementary and secondary students measure students' academic knowledge and skills and
55.16not students' values, attitudes, and beliefs.
55.17    (c) (f) Reporting of state assessment results must:
55.18    (1) provide timely, useful, and understandable information on the performance of
55.19individual students, schools, school districts, and the state;
55.20    (2) include a value-added growth indicator of student achievement under section
55.21120B.35, subdivision 3 , paragraph (b); and
55.22    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
55.23whether students have met the state's basic skills requirements; and
55.24    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
55.25whether students have met the state's academic standards.
55.26    (d) (g) Consistent with applicable federal law and subdivision 1, paragraph (d),
55.27clause (1), the commissioner must include appropriate, technically sound accommodations
55.28or alternative assessments for the very few students with disabilities for whom statewide
55.29assessments are inappropriate and for English learners.
55.30    (e) (h) A school, school district, and charter school must administer statewide
55.31assessments under this section, as the assessments become available, to evaluate student
55.32proficiency progress toward career and college readiness in the context of the state's grade
55.33level academic standards. If a state assessment is not available, a school, school district,
55.34and charter school must determine locally if a student has met the required academic
55.35standards. A school, school district, or charter school may use a student's performance
55.36on a statewide assessment as one of multiple criteria to determine grade promotion or
56.1retention. A school, school district, or charter school may use a high school student's
56.2performance on a statewide assessment as a percentage of the student's final grade in a
56.3course, or place a student's assessment score on the student's transcript.
56.4EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
56.5later except the requirements for using computer-adaptive mathematics and reading
56.6assessments for grades 3 through 7 apply in the 2015-2016 school year and later. Results
56.7related to career and college readiness benchmarks apply in the 2014-2015 school year
56.8and later.

56.9    Sec. 6. Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:
56.10    Subdivision 1. School performance report cards reports. (a) The commissioner
56.11shall report student academic performance under section 120B.35, subdivision 2; the
56.12percentages of students showing low, medium, and high growth under section 120B.35,
56.13subdivision 3 , paragraph (b); school safety and student engagement and connection
56.14under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
56.15120B.35, subdivision 3 , paragraph (c); the percentage of students whose progress and
56.16performance levels are meeting career and college readiness benchmarks under section
56.17120B.30, subdivision 1; two separate student-to-teacher ratios that clearly indicate the
56.18definition of teacher consistent with sections 122A.06 and 122A.15 for purposes of
56.19determining these ratios; staff characteristics excluding salaries; student enrollment
56.20demographics; district mobility; and extracurricular activities. The report also must
56.21indicate a school's adequate yearly progress status under applicable federal law, and must
56.22not set any designations applicable to high- and low-performing schools due solely to
56.23adequate yearly progress status.
56.24    (b) The commissioner shall develop, annually update, and post on the department
56.25Web site school performance report cards reports.
56.26    (c) The commissioner must make available performance report cards reports by the
56.27beginning of each school year.
56.28    (d) A school or district may appeal its adequate yearly progress status in writing to
56.29the commissioner within 30 days of receiving the notice of its status. The commissioner's
56.30decision to uphold or deny an appeal is final.
56.31    (e) School performance report card data are nonpublic data under section 13.02,
56.32subdivision 9 , until the commissioner publicly releases the data. The commissioner shall
56.33annually post school performance report cards reports to the department's public Web
56.34site no later than September 1, except that in years when the report card reflects reports
57.1reflect new performance standards, the commissioner shall post the school performance
57.2report cards reports no later than October 1.
57.3EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
57.4later.

57.5    Sec. 7. CAREER PATHWAYS ADVISORY TASK FORCE.
57.6    Subdivision 1. Recommendations. (a) A career pathways advisory task force
57.7is established to recommend to the Minnesota legislature, consistent with Minnesota
57.8Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3, how to structurally
57.9redesign secondary and postsecondary education to:
57.10(1) improve secondary and postsecondary outcomes for students and adult learners;
57.11(2) align secondary and postsecondary education programs serving students and
57.12adult learners;
57.13(3) align secondary and postsecondary education programs and Minnesota's
57.14workforce needs; and
57.15(4) measure and evaluate the combined efficacy of Minnesota's public kindergarten
57.16through grade 12 and postsecondary education programs.
57.17(b) Advisory task force members, in preparing these recommendations, must
57.18seek the advice of education providers, employers, policy makers, and other interested
57.19stakeholders and must at least consider how to:
57.20(1) better inform students about career options, occupational trends, and educational
57.21paths leading to viable and rewarding careers and reduce the gap between the demand for
57.22and preparation of a skilled Minnesota workforce;
57.23(2) in consultation with a student's family, develop and periodically adapt, as
57.24needed, an education and work plan for each student aligned with the student's personal
57.25and professional interests, abilities, skills, and aspirations;
57.26(3) improve monitoring of high school students' progress with targeted interventions
57.27and support and remove the need for remedial instruction;
57.28(4) increase and accelerate opportunities for secondary school students to earn
57.29postsecondary credits leading to a certificate, industry license, or degree;
57.30(5) better align high school courses and expectations and postsecondary
57.31credit-bearing courses;
57.32(6) better align high school standards and assessments, postsecondary readiness
57.33measures and entrance requirements, and the expectations of Minnesota employers;
57.34(7) increase the rates at which students complete a postsecondary certificate,
57.35industry license, or degree; and
58.1(8) provide graduates of two-year and four-year postsecondary institutions with the
58.2foundational skills needed for civic engagement, ongoing employment, and continuous
58.3learning.
58.4    Subd. 2. Membership. The Career Pathways Advisory Task Force shall have 15
58.5members appointed by July 15, 2013, as follows:
58.6(1) one member appointed by the Minnesota Association of Career and Technical
58.7Administrators;
58.8(2) one member appointed by the Minnesota Association for Career and Technical
58.9Education;
58.10(3) one member appointed by the University of Minnesota who is a faculty member
58.11working to develop career and technical educators in Minnesota;
58.12(4) one member appointed by the Minnesota State Colleges and Universities who is
58.13a faculty member working to develop career and technical educators in Minnesota;
58.14(5) one member appointed by the National Research Center for Career and Technical
58.15Education;
58.16(6) one member appointed by the Minnesota Department of Education;
58.17(7) one member appointed by the Minnesota Board of Teaching;
58.18(8) one member appointed by the Minnesota Association of Colleges for Teacher
58.19Education;
58.20(9) one member appointed by the Minnesota State Colleges and Universities from
58.21faculty for foundational skills and general education; and
58.22(10) six members appointed by the commissioner of education who have expertise in
58.23any of the areas with which the task force has been charged in subdivision 1.
58.24    Subd. 3. Terms. Each member shall serve until the task force sunsets, unless
58.25replaced by their appointing authority.
58.26    Subd. 4. First meeting; acting chair; chair. The commissioner of education shall
58.27convene the first meeting by August 15, 2013, and shall act as chair until the task force
58.28elects a chair from among its members at the first meeting.
58.29    Subd. 5. Compensation. The task force members shall not be compensated and
58.30their expenses shall not be reimbursed.
58.31    Subd. 6. Staff; technical assistance. The commissioner of education, on request
58.32by the task force, will provide technical assistance and provide staff assistance sufficient
58.33for the task force to carry out its duties.
58.34    Subd. 7. Report. By February 15, 2014, the task force shall submit a written
58.35report describing its recommendations to the chairs and ranking minority members of the
59.1legislative committees and divisions with primary jurisdiction over kindergarten through
59.2grade 12 education.
59.3    Subd. 8. Sunset. The task force expires the day after the task force reports to the
59.4legislature, or February 15, 2014, whichever is earlier.
59.5EFFECTIVE DATE.This section is effective the day following final enactment.

59.6    Sec. 8. APPROPRIATIONS.
59.7    Subdivision 1. Minnesota Department of Education. The sums indicated in this
59.8section are appropriated from the general fund to the Department of Education for the
59.9fiscal years designated.
59.10    Subd. 2. Statewide testing and reporting system. For the statewide testing and
59.11reporting system under Minnesota Statutes, section 120B.30:

59.12		$	16,518,000	.....	2014
59.13		$	19,198,000	.....	2015

59.14Any balance in the first year does not cancel but is available in the second year.

59.15    Sec. 9. REPEALER.
59.16 Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5,
59.176, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090;
59.183501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160;
59.193501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240;
59.203501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020;
59.213501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140;
59.223501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, are repealed effective the
59.23day following final enactment.

59.24ARTICLE 3

59.25EDUCATION EXCELLENCE

59.26    Section 1. Minnesota Statutes 2012, section 120A.22, subdivision 5, is amended to read:
59.27    Subd. 5. Ages and terms. (a) Every child between seven and 16 17 years of age must
59.28receive instruction unless the child has graduated. Every child under the age of seven who
59.29is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days,
59.30or other kindergarten programs shall receive instruction. Except as provided in subdivision
59.316, a parent may withdraw a child under the age of seven from enrollment at any time.
60.1(b) A school district by annual board action may require children subject to this
60.2subdivision to receive instruction in summer school. A district that acts to require children
60.3to receive instruction in summer school shall establish at the time of its action the criteria
60.4for determining which children must receive instruction.
60.5(c) A pupil 16 years of age or older who meets the criteria of section 124D.68,
60.6subdivision 2, may be assigned to an area learning center. Such assignment may be made
60.7only after consultation with the principal, area learning center director, and parent or
60.8guardian.
60.9EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
60.10later.

60.11    Sec. 2. Minnesota Statutes 2012, section 120A.22, subdivision 8, is amended to read:
60.12    Subd. 8. Withdrawal from school. Any student between 16 and 18 who is 17 years
60.13old who seeks to withdraw from school, and the student's parent or guardian must:
60.14(1) attend a meeting with school personnel to discuss the educational opportunities
60.15available to the student, including alternative educational opportunities; and
60.16(2) sign a written election to withdraw from school.

60.17    Sec. 3. Minnesota Statutes 2012, section 120A.22, subdivision 11, is amended to read:
60.18    Subd. 11. Assessment of performance. (a) Each year the performance of every
60.19child ages seven through 16 and every child ages 16 through 17 for which an initial
60.20report was filed pursuant to section 120A.24, subdivision 1, after the child is 16 and who
60.21is not enrolled in a public school must be assessed using a nationally norm-referenced
60.22standardized achievement examination. The superintendent of the district in which the
60.23child receives instruction and the person in charge of the child's instruction must agree about
60.24the specific examination to be used and the administration and location of the examination.
60.25(b) To the extent the examination in paragraph (a) does not provide assessment in
60.26all of the subject areas in subdivision 9, the parent must assess the child's performance
60.27in the applicable subject area. This requirement applies only to a parent who provides
60.28instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
60.29(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
60.30child's performance on the total battery score is at or below the 30th percentile or one
60.31grade level below the performance level for children of the same age, the parent must
60.32obtain additional evaluation of the child's abilities and performance for the purpose of
60.33determining whether the child has learning problems.
61.1(d) A child receiving instruction from a nonpublic school, person, or institution that
61.2is accredited by an accrediting agency, recognized according to section 123B.445, or
61.3recognized by the commissioner, is exempt from the requirements of this subdivision.
61.4EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
61.5later.

61.6    Sec. 4. Minnesota Statutes 2012, section 120A.22, subdivision 12, is amended to read:
61.7    Subd. 12. Legitimate exemptions. (a) A parent, guardian, or other person
61.8having control of a child may apply to a school district to have the child excused from
61.9attendance for the whole or any part of the time school is in session during any school
61.10year. Application may be made to any member of the board, a truant officer, a principal,
61.11or the superintendent. The school district may state in its school attendance policy that
61.12it may ask the student's parent or legal guardian to verify in writing the reason for
61.13the child's absence from school. A note from a physician or a licensed mental health
61.14professional stating that the child cannot attend school is a valid excuse. The board of the
61.15district in which the child resides may approve the application upon the following being
61.16demonstrated to the satisfaction of that board:
61.17(1) that the child's physical or mental health is such as to prevent attendance at
61.18school or application to study for the period required, which includes:
61.19(i) child illness, medical, dental, orthodontic, or counseling appointments;
61.20(ii) family emergencies;
61.21(iii) the death or serious illness or funeral of an immediate family member;
61.22(iv) active duty in any military branch of the United States;
61.23(v) the child has a condition that requires ongoing treatment for a mental health
61.24diagnosis; or
61.25(vi) other exemptions included in the district's school attendance policy;
61.26(2) that the child has already completed state and district standards required for
61.27graduation from high school; or
61.28(3) that it is the wish of the parent, guardian, or other person having control of the
61.29child, that the child attend for a period or periods not exceeding in the aggregate three
61.30hours in any week, a school for religious instruction conducted and maintained by some
61.31church, or association of churches, or any Sunday school association incorporated under
61.32the laws of this state, or any auxiliary thereof. This school for religious instruction must
61.33be conducted and maintained in a place other than a public school building, and it must
61.34not, in whole or in part, be conducted and maintained at public expense. However, a child
62.1may be absent from school on such days as the child attends upon instruction according to
62.2the ordinances of some church.
62.3(b) A parent may withdraw their child from an all-day, every-day kindergarten
62.4program and put their child in a half-day program, if offered, or an alternate-day program
62.5without being truant. The school district must have a policy to accommodate a parent that
62.6wants another option when the district only offers all-day, every-day kindergarten.

62.7    Sec. 5. Minnesota Statutes 2012, section 120A.24, subdivision 1, is amended to read:
62.8    Subdivision 1. Reports to superintendent. (a) The person or nonpublic school in
62.9charge of providing instruction to a child must submit to the superintendent of the district
62.10in which the child resides the name, birth date, and address of the child; the annual tests
62.11intended to be used under section 120A.22, subdivision 11, if required; the name of each
62.12instructor; and evidence of compliance with one of the requirements specified in section
62.13120A.22, subdivision 10 :
62.14(1) by October 1 of the first school year the child receives instruction after reaching
62.15the age of seven;
62.16(2) within 15 days of when a parent withdraws a child from public school after
62.17age seven to provide instruction in a nonpublic school that is not accredited by a
62.18state-recognized accredited agency;
62.19(3) within 15 days of moving out of a district; and
62.20(4) by October 1 after a new resident district is established.
62.21(b) The person or nonpublic school in charge of providing instruction to a child
62.22between the ages of seven and 16 and every child ages 16 through 17 for which an
62.23initial report was filed pursuant to this subdivision after the child is 16 must submit, by
62.24October 1 of each school year, a letter of intent to continue to provide instruction under
62.25this section for all students under the person's or school's supervision and any changes to
62.26the information required in paragraph (a) for each student.
62.27(c) The superintendent may collect the required information under this section
62.28through an electronic or Web-based format, but must not require electronic submission of
62.29information under this section from the person in charge of reporting under this subdivision.
62.30EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
62.31later.

62.32    Sec. 6. Minnesota Statutes 2012, section 122A.415, is amended by adding a
62.33subdivision to read:
63.1    Subd. 4. Basic alternative teacher compensation aid. (a) For fiscal year 2015
63.2and later, the basic alternative teacher compensation aid for a school with a plan approved
63.3under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher
63.4compensation revenue under subdivision 1. The basic alternative teacher compensation
63.5aid for an intermediate school district or charter school with a plan approved under section
63.6122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
63.7the number of pupils enrolled in the school on October 1 of the previous year, or on
63.8October 1 of the current year for a charter school in the first year of operation, times
63.9the ratio of the sum of the alternative teacher compensation aid and alternative teacher
63.10compensation levy for all participating school districts to the maximum alternative teacher
63.11compensation revenue for those districts under subdivision 1.
63.12(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
63.13teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2015
63.14and later. The commissioner must limit the amount of alternative teacher compensation
63.15aid approved under this section so as not to exceed these limits.
63.16EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
63.17later.

63.18    Sec. 7. Minnesota Statutes 2012, section 122A.415, is amended by adding a
63.19subdivision to read:
63.20    Subd. 5. Alternative teacher compensation levy. For fiscal year 2015 and later,
63.21the alternative teacher compensation levy for a district receiving basic alternative teacher
63.22compensation aid equals the product of (1) the difference between the district's alternative
63.23teacher compensation revenue and the district's basic alternative teacher compensation
63.24aid, times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per
63.25adjusted pupil unit to $6,742.
63.26EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
63.27later.

63.28    Sec. 8. Minnesota Statutes 2012, section 122A.415, is amended by adding a
63.29subdivision to read:
63.30    Subd. 6. Alternative teacher compensation equalization aid. (a) For fiscal year
63.312015 and later, a district's alternative teacher compensation equalization aid equals the
63.32district's alternative teacher compensation revenue minus the district's basic alternative
63.33teacher compensation aid minus the district's alternative teacher compensation levy. If a
64.1district does not levy the entire amount permitted, the alternative teacher compensation
64.2equalization aid must be reduced in proportion to the actual amount levied.
64.3(b) A district's alternative teacher compensation aid equals the sum of the
64.4district's basic alternative teacher compensation aid and the district's alternative teacher
64.5compensation equalization aid.
64.6EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
64.7later.

64.8    Sec. 9. Minnesota Statutes 2012, section 124D.03, subdivision 12, is amended to read:
64.9    Subd. 12. Termination of enrollment. A district may terminate the enrollment
64.10of a nonresident student enrolled under this section or section 124D.08 at the end of a
64.11school year if the student meets the definition of a habitual truant under section 260C.007,
64.12subdivision 19 , the student has been provided appropriate services under chapter 260A,
64.13and the student's case has been referred to juvenile court. A district may also terminate the
64.14enrollment of a nonresident student over the age of 16 17 enrolled under this section if the
64.15student is absent without lawful excuse for one or more periods on 15 school days and has
64.16not lawfully withdrawn from school under section 120A.22, subdivision 8.
64.17EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
64.18later.

64.19    Sec. 10. Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:
64.20    Subd. 2. Commissioner designation. (a) A state-approved alternative program
64.21designated by the state must be a site. A state-approved alternative program must provide
64.22services to students who meet the criteria in section 124D.68 and who are enrolled in:
64.23    (1) a district that is served by the state-approved alternative program; or
64.24    (2) a charter school located within the geographic boundaries of a district that is
64.25served by the state-approved alternative program.
64.26    (b) A school district or charter school may be approved biennially by the state to
64.27provide additional instructional programming that results in grade level acceleration. The
64.28program must be designed so that students make grade progress during the school year
64.29and graduate prior to the students' peers.
64.30    (c) (b) To be designated, a district, charter school, or state-approved alternative
64.31program must demonstrate to the commissioner that it will:
64.32    (1) provide a program of instruction that permits pupils to receive instruction
64.33throughout the entire year; and
65.1    (2) develop and maintain a separate record system that, for purposes of section
65.2126C.05 , permits identification of membership attributable to pupils participating in the
65.3program. The record system and identification must ensure that the program will not have
65.4the effect of increasing the total average daily membership attributable to an individual
65.5pupil as a result of a learning year program. The record system must include the date the
65.6pupil originally enrolled in a learning year program, the pupil's grade level, the date of
65.7each grade promotion, the average daily membership generated in each grade level, the
65.8number of credits or standards earned, and the number needed to graduate.
65.9    (d) (c) A student who has not completed a school district's graduation requirements
65.10may continue to enroll in courses the student must complete in order to graduate until
65.11the student satisfies the district's graduation requirements or the student is 21 years old,
65.12whichever comes first.

65.13    Sec. 11. Minnesota Statutes 2012, section 124D.42, is amended to read:
65.14124D.42 READING AND MATH CORPS.
65.15    Subd. 6. Program training. The commission must, within available resources:
65.16(1) orient each grantee organization in the nature, philosophy, and purpose of the
65.17program;
65.18(2) build an ethic of community service through general community service training;
65.19and
65.20(3) provide guidance on integrating programmatic-based measurement into program
65.21models.
65.22    Subd. 8. Minnesota reading corps program. (a) A Minnesota reading corps
65.23program is established to provide ServeMinnesota Innovation AmeriCorps members with
65.24a data-based problem-solving model of literacy instruction to use in helping to train local
65.25Head Start program providers, other prekindergarten program providers, and staff in
65.26schools with students in kindergarten through grade 3 to evaluate and teach early literacy
65.27skills, including comprehensive, scientifically based reading instruction under section
65.28122A.06, subdivision 4 , to children age 3 to grade 3.
65.29(b) Literacy programs under this subdivision must comply with the provisions
65.30governing literacy program goals and data use under section 119A.50, subdivision 3,
65.31paragraph (b).
65.32(c) The commission must submit a biennial report to the committees of the
65.33legislature with jurisdiction over kindergarten through grade 12 education that records and
65.34evaluates program data to determine the efficacy of the programs under this subdivision.
66.1    Subd. 9. Minnesota math corps program. (a) A Minnesota math corps program is
66.2established to give ServeMinnesota AmeriCorps members a data-based problem-solving
66.3model of mathematics instruction useful for providing elementary and middle school
66.4students and their teachers with instructional support to meet state academic standards in
66.5mathematics.
66.6(b) The commission must submit a biennial report to the committees of the
66.7legislature with jurisdiction over kindergarten through grade 12 education that records and
66.8evaluates program data to determine the efficacy of the programs under this subdivision.
66.9EFFECTIVE DATE.This section is effective July 1, 2013.

66.10    Sec. 12. Minnesota Statutes 2012, section 124D.4531, is amended to read:
66.11124D.4531 CAREER AND TECHNICAL LEVY REVENUE.
66.12    Subdivision 1. Career and technical levy revenue. (a) A district with a career and
66.13technical program approved under this section for the fiscal year in which the levy is
66.14certified may levy an amount is eligible for career and technical revenue equal to 35 percent
66.15of approved expenditures in the fiscal year in which the levy is certified for the following:
66.16(1) salaries paid to essential, licensed personnel providing direct instructional
66.17services to students in that fiscal year, including extended contracts, for services rendered
66.18in the district's approved career and technical education programs, excluding salaries
66.19reimbursed by another school district under clause (2);
66.20(2) amounts paid to another Minnesota school district for salaries of essential,
66.21licensed personnel providing direct instructional services to students in that fiscal year for
66.22services rendered in the district's approved career and technical education programs;
66.23(2) (3) contracted services provided by a public or private agency other than a
66.24Minnesota school district or cooperative center under subdivision 7;
66.25(3) (4) necessary travel between instructional sites by licensed career and technical
66.26education personnel;
66.27(4) (5) necessary travel by licensed career and technical education personnel for
66.28vocational student organization activities held within the state for instructional purposes;
66.29(5) (6) curriculum development activities that are part of a five-year plan for
66.30improvement based on program assessment;
66.31(6) (7) necessary travel by licensed career and technical education personnel for
66.32noncollegiate credit-bearing professional development; and
66.33(7) (8) specialized vocational instructional supplies.
67.1(b) Up to ten percent of a district's career and technical levy revenue may be spent on
67.2equipment purchases. Districts using the career and technical levy revenue for equipment
67.3purchases must report to the department on the improved learning opportunities for
67.4students that result from the investment in equipment.
67.5(c) The district must recognize the full amount of this levy as revenue for the fiscal
67.6year in which it is certified.
67.7(d) The amount of the levy certified revenue calculated under this subdivision may
67.8not exceed $17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013,
67.9and $15,393,000 $24,224,000 for taxes payable in 2014.
67.10(e) If the estimated levy revenue exceeds the amount in paragraph (d), the
67.11commissioner must reduce the percentage in paragraph (a), clause (2), until the estimated
67.12levy revenue no longer exceeds the limit in paragraph (d).
67.13    Subd. 1a. Career and technical levy. (a) For fiscal year 2014 only, a district may
67.14levy an amount not more than the product of its career and technical revenue times the
67.15lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal cost pupil
67.16unit in the fiscal year in which the levy is certified to the career and technical revenue
67.17equalizing factor. The career and technical revenue equalizing factor for fiscal year 2014
67.18equals $9,497.
67.19(b) For fiscal year 2015 and later, a district may levy an amount not more than
67.20the product of its career and technical revenue times the lesser of one or the ratio of its
67.21adjusted net tax capacity per adjusted pupil unit in the fiscal year in which the levy is
67.22certified to the career and technical revenue equalizing factor. The career and technical
67.23revenue equalizing factor for fiscal year 2015 and later equals $10,058.
67.24    Subd. 1b. Career and technical aid. For fiscal year 2014 and later, a district's
67.25career and technical aid equals its career and technical revenue less its career and technical
67.26levy. If the district levy is less than the permitted levy, the district's career and technical
67.27aid shall be reduced proportionately.
67.28    Subd. 2. Allocation from cooperative centers and intermediate districts. For
67.29purposes of this section, a cooperative center or an intermediate district must allocate its
67.30approved expenditures for career and technical education programs among participating
67.31districts.
67.32    Subd. 3. Levy Revenue guarantee. Notwithstanding subdivision 1, paragraph (a),
67.33the career and technical education levy revenue for a district is not less than the lesser of:
67.34(1) the district's career and technical education levy authority revenue for the
67.35previous fiscal year; or
68.1(2) 100 percent of the approved expenditures for career and technical programs
68.2included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.
68.3    Subd. 3a. Levy, pay 2012-2014 Revenue adjustments. Notwithstanding
68.4subdivisions 1, 1a, and 3, for taxes payable in 2012 to 2014 only, the department must
68.5calculate the career and technical levy authority revenue for each district according to
68.6Minnesota Statutes 2010, section 124D.4531, and adjust the levy authority revenue for
68.7each district proportionately to meet the statewide levy revenue target under subdivision 1,
68.8paragraph (d). For purposes of calculating the levy revenue guarantee under subdivision
68.93, the career and technical education levy authority revenue for the previous fiscal year
68.10is the levy authority revenue according to Minnesota Statutes 2010, section 124D.4531,
68.11before adjustments to meet the statewide levy revenue target.
68.12    Subd. 4. District reports. Each district or cooperative center must report data to the
68.13department for all career and technical education programs as required by the department
68.14to implement the career and technical levy revenue formula.
68.15    Subd. 5. Allocation from districts participating in agreements for secondary
68.16education or interdistrict cooperation. For purposes of this section, a district with a
68.17career and technical program approved under this section that participates in an agreement
68.18under section 123A.30 or 123A.32 must allocate its levy revenue authority under this
68.19section among participating districts.
68.20EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

68.21    Sec. 13. Minnesota Statutes 2012, section 124D.65, subdivision 5, is amended to read:
68.22    Subd. 5. School district EL revenue. (a) A district's English learner programs
68.23revenue equals the product of (1) $700 in fiscal year 2004 and later $705 times (2) the
68.24greater of 20 or the adjusted marginal cost average daily membership of eligible English
68.25learners enrolled in the district during the current fiscal year.
68.26(b) A pupil ceases to generate state English learner aid in the school year following
68.27the school year in which the pupil attains the state cutoff score on a commissioner-provided
68.28assessment that measures the pupil's emerging academic English.
68.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
68.30and later.

68.31    Sec. 14. [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
68.32    Subdivision 1. Program to close the academic achievement and opportunity
68.33gap. The "Achievement and Integration for Minnesota" program is established to
69.1promote diversity, pursue racial and economic integration, and increase student academic
69.2achievement and equitable educational opportunities in Minnesota public schools. The
69.3program must serve students of varying racial, ethnic, and economic backgrounds, taking
69.4into account unique geographic and demographic particularities affecting students,
69.5schools, and districts including race, neighborhood locations and characteristics, grades,
69.6socioeconomic status, academic performance, and language barriers. Eligible districts
69.7must use the revenue under section 124D.862 to pursue racial and economic integration in
69.8schools through: (1) in-school educational practices and integrated learning environments
69.9created to prepare all students to be effective citizens, enhance social cohesion, and
69.10reinforce democratic values; and (2) corresponding and meaningful policies and curricula
69.11and trained instructors, administrators, school counselors, and other advocates who support
69.12and enhance in-school practices and integrated learning environments under this section.
69.13In-school practices and integrated learning environments must promote increased student
69.14academic achievement, cultural fluency, cross-cultural interactivities, communication and
69.15pedagogy, graduation and educational attainment rates, and parent involvement.
69.16    Subd. 2. Plan components. (a) The school board of each eligible district must
69.17formally develop and implement a long-term comprehensive plan that identifies the
69.18collaborative structures and systems, in-school strategies, inclusive best educational
69.19practices, and partnerships with higher education institutions and industries required
69.20to effect this section and increase the academic achievement of all students. Plan
69.21components may include: innovative and integrated prekindergarten through grade 12
69.22learning environments that offer students school enrollment choices; family engagement
69.23initiatives that involve families in their students' academic life and success; professional
69.24development opportunities for teachers and administrators focused on improving the
69.25academic achievement of all students; increased programmatic opportunities focused
69.26on rigor and college and career readiness for underserved students, including students
69.27enrolled in alternative learning centers under section 123A.05, public alternative programs
69.28under section 126C.05, subdivision 15, or contract alternative programs under section
69.29124D.69, among other underserved students; or recruitment and retention of teachers and
69.30administrators with diverse backgrounds. The plan must specify district and school goals
69.31for reducing the disparity in academic achievement among all racial and ethnic categories of
69.32students and promoting racial and economic integration in schools and districts over time.
69.33(b) Among other requirements, an eligible district must implement a cost-effective,
69.34research-based intervention that includes formative assessment practices to reduce the
69.35disparity in student academic achievement between the highest and lowest performing
70.1racial and ethnic categories of students as measured by student demonstration of
70.2proficiency on state reading and math assessments.
70.3(c) Eligible districts must collaborate in creating efficiencies and eliminating the
70.4duplication of programs and services under this section, which may include forming a
70.5single, seven-county metropolitan areawide partnership of eligible districts for this purpose.
70.6    Subd. 3. Biennial progress; budget process. (a) To receive revenue under section
70.7124D.862, the school board of an eligible district must hold at least one formal hearing by
70.8March 1 in the year preceding the current biennium to report to the public its progress in
70.9realizing the goals identified in its plan. At the hearing, the board must provide the public
70.10with longitudinal data demonstrating district and school progress in reducing the disparity
70.11in student academic achievement among all racial and ethnic categories of students and
70.12realizing racial and economic integration, consistent with its plan and the measures in
70.13paragraph (b). The district also must submit to the commissioner by March 1 in the year
70.14preceding the current biennium a detailed biennial budget for continuing to implement
70.15its plan and the commissioner must review and approve or disapprove the budget by
70.16June 1 of that year.
70.17(b) The longitudinal data required under paragraph (a) must be based on student
70.18growth and progress toward proficiency in reading, mathematics, and writing, as defined
70.19under section 120B.299, and one or more of the following measures:
70.20(1) the number of world language proficiency or high achievement certificates
70.21awarded under section 120B.022, subdivision 1, paragraphs (b) and (c);
70.22(2) adequate yearly progress under section 120B.35, subdivision 2;
70.23(3) preparation for postsecondary academic and career opportunities under section
70.24120B.35, subdivision 3, paragraph (c), clause (1);
70.25(4) rigorous coursework completed under section 120B.35, subdivision 3, paragraph
70.26(c), clause (2); or
70.27(5) school safety and students' engagement and connection at school under section
70.28120B.35, subdivision 3, paragraph (d).
70.29    Subd. 4. Evaluation. The commissioner must evaluate the efficacy of district
70.30plans in reducing the disparity in student academic achievement among all racial and
70.31ethnic categories of students and realizing racial and economic integration and report the
70.32commissioner's findings to the kindergarten through grade 12 education committees of the
70.33legislature by February 1 every fourth year beginning February 1, 2017.
70.34EFFECTIVE DATE.This section is effective for fiscal year 2014 and later.

70.35    Sec. 15. [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
71.1    Subdivision 1. Eligibility. A school district is eligible for achievement and
71.2integration revenue under this section if the district has a biennial achievement and
71.3integration plan approved by the department under section 124D.861. Priority for funding
71.4must be given to eligible school districts that include methods that have been effective in
71.5reducing disparities in student achievement in the district's biennial plan.
71.6    Subd. 2. Achievement and integration revenue. (a) For fiscal year 2014, initial
71.7achievement and integration revenue for an eligible district equals the lesser of the
71.8district's expenditure for the fiscal year under its budget according to subdivision 1a or the
71.9greater of: (1) 90 percent of the district's integration revenue for fiscal year 2013 under
71.10Minnesota Statutes 2012, section 124D.86, or (2) the sum of: (i) $361 times the district's
71.11adjusted pupil units for the prior fiscal year computed using the pupil unit weights effective
71.12under section 126C.05 for fiscal year 2015 and later, times the district's enrollment of
71.13protected students as a percent of its total enrollment on October 1 of the prior fiscal year,
71.14plus (ii) $100 times the district's adjusted pupil units for the prior fiscal year computed
71.15using the pupil unit weights effective under section 126C.05 for fiscal year 2015 and later
71.16times the district's enrollment of protected students as a percent of its total enrollment on
71.17October 1 of the prior fiscal year times the district's focus rating for the prior fiscal year
71.18under Minnesota's 2012 Elementary and Secondary Education Act flexibility request.
71.19(b) For fiscal year 2015 and later, initial achievement and integration revenue for
71.20an eligible district equals the lesser of the district's expenditure for the fiscal year under
71.21its budget according to subdivision 1a or the greater of: (1) 63 percent of the district's
71.22integration revenue for fiscal year 2013 under Minnesota Statutes 2012, section 124D.86,
71.23or (2) the sum of: (i) $253 times the district's adjusted pupil units for the prior fiscal year
71.24computed using the pupil unit weights effective under section 126C.05 for fiscal year 2015
71.25and later, times the district's enrollment of protected students as a percent of its total
71.26enrollment on October 1 of the prior fiscal year, plus (ii) $70 times the district's adjusted
71.27pupil units for the prior fiscal year computed using the pupil unit weights effective under
71.28section 126C.05 for fiscal year 2015 and later, times the district's enrollment of protected
71.29students as a percent of its total enrollment on October 1 of the prior fiscal year times the
71.30district's focus rating for the prior fiscal year under Minnesota's 2012 Elementary and
71.31Secondary Education Act flexibility request.
71.32(c) In each year, .02 percent of each district's initial achievement and integration
71.33revenue is transferred to the Department of Education for the oversight and accountability
71.34activities required under this section and section 124D.861.
71.35(d) A district that did not meet its achievement goals established in section 124D.861
71.36for the previous biennium must report to the commissioner the reasons why the goals were
72.1not met. The district must submit a two-year improvement plan to achieve the unmet goals
72.2from its achievement and integration plan. A district that does not meet its goals in the
72.3improvement plan must have its initial achievement and integration revenue reduced by
72.420 percent for the current year.
72.5(e) Any revenue saved by the reductions in paragraph (d) must be proportionately
72.6reallocated on a per adjusted pupil unit basis to all districts that met their achievement
72.7goals in the previous biennium.
72.8    Subd. 3. Achievement and integration aid. A district's achievement and
72.9integration aid for fiscal year 2014 equals the difference between the district's achievement
72.10and integration revenue and its achievement and integration levy. A district's achievement
72.11and integration aid for fiscal year 2015 and later equals the district's achievement and
72.12integration revenue.
72.13    Subd. 4. Achievement and integration levy. For fiscal year 2014 only, a district's
72.14achievement and integration levy equals the amount the district was authorized to levy
72.15under Laws 2011, First Special Session chapter 11, article 2, section 49, paragraph (f).
72.16    Subd. 5. Revenue reserved. Integration revenue received under this section must
72.17be reserved and used only for the programs authorized in subdivision 6.
72.18    Subd. 6. Revenue uses. At least 80 percent of a district's achievement and
72.19integration revenue received under this section must be used for innovative and integrated
72.20learning environments, family engagement activities, and other approved programs
72.21providing direct services to students. Up to 20 percent of the revenue may be used for
72.22professional development and staff development activities, and not more than ten percent
72.23of this share of the revenue may be used for administrative expenditures.
72.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
72.25and later.

72.26    Sec. 16. Minnesota Statutes 2012, section 260C.007, subdivision 19, is amended to read:
72.27    Subd. 19. Habitual truant. "Habitual truant" means a child under the age of 16 17
72.28years who is absent from attendance at school without lawful excuse for seven school days
72.29per school year if the child is in elementary school or for one or more class periods on
72.30seven school days per school year if the child is in middle school, junior high school, or
72.31high school, or a child who is 16 or 17 years of age who is absent from attendance at school
72.32without lawful excuse for one or more class periods on seven school days per school year
72.33 and who has not lawfully withdrawn from school under section 120A.22, subdivision 8.
73.1EFFECTIVE DATE.This section is effective for the 2014-2015 school year and
73.2later.

73.3    Sec. 17. Laws 2011, First Special Session chapter 11, article 2, section 13, the effective
73.4date, is amended to read:
73.5EFFECTIVE DATE.This section is effective the day following final enactment
73.6and applies beginning in the 2014-2015 2015-2016 school year and later.

73.7    Sec. 18. Laws 2011, First Special Session chapter 11, article 2, section 14, the effective
73.8date, is amended to read:
73.9EFFECTIVE DATE.This section is effective the day following final enactment
73.10and applies beginning in the 2014-2015 2015-2016 school year and later.

73.11    Sec. 19. Laws 2011, First Special Session chapter 11, article 2, section 18, the effective
73.12date, is amended to read:
73.13EFFECTIVE DATE.This section is effective the day following final enactment
73.14and applies beginning in the 2014-2015 2015-2016 school year and later.

73.15    Sec. 20. Laws 2011, First Special Session chapter 11, article 2, section 19, the effective
73.16date, is amended to read:
73.17EFFECTIVE DATE.This section is effective the day following final enactment
73.18and applies beginning in the 2014-2015 2015-2016 school year and later.

73.19    Sec. 21. SUCCESS FOR THE FUTURE GRANT APPLICATIONS.
73.20    A school district may receive a success for the future grant if the school district's
73.21grant application was postmarked on or before the Department of Education's deadline
73.22date for application.

73.23    Sec. 22. APPROPRIATIONS.
73.24    Subdivision 1. Department of Education. The sums indicated in this section are
73.25appropriated from the general fund to the Department of Education for the fiscal years
73.26designated.
74.1    Subd. 2. Integration aid. For integration aid under Minnesota Statutes, section
74.2124D.86, and Minnesota Statutes, section 124D.862:

74.3		$	75,390,000	.....	2014
74.4		$	68,568,000	.....	2015

74.5The 2014 appropriation includes $17,197,000 for 2013 and $58,193,000 for 2014.
74.6The 2015 appropriation includes $9,869,000 for 2014 and $58,699,000 for 2015.
74.7    Subd. 3. Literacy incentive aid. For literacy incentive aid under Minnesota
74.8Statutes, section 124D.98:

74.9		$	52,035,000	.....	2014
74.10		$	53,812,000	.....	2015

74.11The 2014 appropriation includes $6,607,000 for 2013 and $45,428,000 for 2014.
74.12The 2015 appropriation includes $7,704,000 for 2014 and $46,108,000 for 2015.
74.13    Subd. 4. Interdistrict desegregation or integration transportation grants. For
74.14interdistrict desegregation or integration transportation grants under Minnesota Statutes,
74.15section 124D.87:

74.16		$	13,968,000	.....	2014
74.17		$	14,712,000	.....	2015

74.18    Subd. 5. Success for the future. For American Indian success for the future grants
74.19under Minnesota Statutes, section 124D.81:

74.20		$	2,118,000	.....	2014
74.21		$	2,137,000	.....	2015

74.22The 2014 appropriation includes $290,000 for 2013 and $1,828,000 for 2014.
74.23The 2015 appropriation includes $309,000 for 2014 and $1,828,000 for 2015.
74.24    Subd. 6. American Indian teacher preparation grants. For joint grants to assist
74.25American Indian people to become teachers under Minnesota Statutes, section 122A.63:

74.26		$	190,000	.....	2014
74.27		$	190,000	.....	2015

74.28    Subd. 7. Tribal contract schools. For tribal contract school aid under Minnesota
74.29Statutes, section 124D.83:

74.30		$	2,052,000	.....	2014
74.31		$	2,190,000	.....	2015

74.32The 2014 appropriation includes $266,000 for 2013 and $1,786,000 for 2014.
74.33The 2015 appropriation includes $303,000 for 2014 and $1,887,000 for 2015.
75.1    Subd. 8. Early childhood programs at tribal schools. For early childhood family
75.2education programs at tribal contract schools under Minnesota Statutes, section 124D.83,
75.3subdivision 4:

75.4		$	68,000	.....	2014
75.5		$	68,000	.....	2015

75.6    Subd. 9. Examination fees; teacher training and support programs. (a) For
75.7students' advanced placement and international baccalaureate examination fees under
75.8Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
75.9for teachers and other interested educators under Minnesota Statutes, section 120B.13,
75.10subdivision 1:

75.11		$	4,500,000	.....	2014
75.12		$	4,500,000	.....	2015

75.13(b) The advanced placement program shall receive 75 percent of the appropriation
75.14each year and the international baccalaureate program shall receive 25 percent of the
75.15appropriation each year. The department, in consultation with representatives of the
75.16advanced placement and international baccalaureate programs selected by the Advanced
75.17Placement Advisory Council and the Minnesota Association of IB World Schools,
75.18respectively, shall determine the amounts of the expenditures each year for examination
75.19fees and training and support programs for each program.
75.20(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
75.21$500,000 each year is for teachers to attend subject matter summer training programs
75.22and follow-up support workshops approved by the advanced placement or international
75.23baccalaureate programs. The amount of the subsidy for each teacher attending an
75.24advanced placement or international baccalaureate summer training program or workshop
75.25shall be the same. The commissioner shall determine the payment process and the amount
75.26of the subsidy.
75.27(d) The commissioner shall pay all examination fees for all students of low-income
75.28families under Minnesota Statutes, section 120B.13, subdivision 3, and, to the extent
75.29of available appropriations, shall also pay examination fees for students sitting for an
75.30advanced placement examination, international baccalaureate examination, or both.
75.31Any balance in the first year does not cancel but is available in the second year.
75.32    Subd. 10. Concurrent enrollment program. For concurrent enrollment programs
75.33under Minnesota Statutes, section 124D.091:

75.34		$	2,000,000	.....	2014
75.35		$	2,000,000	.....	2015

76.1If the appropriation is insufficient, the commissioner must proportionately reduce
76.2the aid payment to each district.
76.3Any balance in the first year does not cancel but is available in the second year.
76.4    Subd. 11. Collaborative urban educator. For the collaborative urban educator
76.5grant program:

76.6		$	528,000	.....	2014
76.7		$	528,000	.....	2015

76.8$200,000 each year is for the Southeast Asian teacher program at Concordia
76.9University, St. Paul; $164,000 each year is for the collaborative educator program at
76.10the University of St. Thomas; and $164,000 each year is for the Center for Excellence
76.11in Urban Teaching at Hamline University.
76.12Any balance in the first year does not cancel but is available in the second year.
76.13Each institution shall prepare for the legislature, by January 15 of each year, a
76.14detailed report regarding the funds used. The report must include the number of teachers
76.15prepared as well as the diversity for each cohort of teachers produced.
76.16    Subd. 12. ServeMinnesota program. For funding ServeMinnesota programs under
76.17Minnesota Statutes, sections 124D.37 to 124D.45:

76.18		$	900,000	.....	2014
76.19		$	900,000	.....	2015

76.20A grantee organization may provide health and child care coverage to the dependents
76.21of each participant enrolled in a full-time ServeMinnesota program to the extent such
76.22coverage is not otherwise available.
76.23    Subd. 13. Student organizations. For student organizations:

76.24		$	725,000	.....	2014
76.25		$	725,000	.....	2015

76.26$46,000 each year is for student organizations serving health occupations (HOSA).
76.27$43,000 each year is for student organizations serving service occupations (HERO).
76.28$100,000 each year is for student organizations serving trade and industry
76.29occupations (Skills USA, secondary and postsecondary).
76.30$95,000 each year is for student organizations serving business occupations (BPA,
76.31secondary and postsecondary).
76.32$150,000 each year is for student organizations serving agriculture occupations
76.33(FFA, PAS).
77.1$142,000 each year is for student organizations serving family and consumer science
77.2occupations (FCCLA).
77.3$109,000 each year is for student organizations serving marketing occupations
77.4(DECA and DECA collegiate).
77.5$40,000 each year is for the Minnesota Foundation for Student Organizations.
77.6Any balance in the first year does not cancel but is available in the second year.
77.7    Subd. 14. Early childhood literacy programs. For early childhood literacy
77.8programs under Minnesota Statutes, section 119A.50, subdivision 3:

77.9		$	4,875,000	.....	2014
77.10		$	4,875,000	.....	2015

77.11Up to $4,875,000 each year is for leveraging federal and private funding to support
77.12AmeriCorps members serving in the Minnesota Reading Corps program established by
77.13ServeMinnesota, including costs associated with the training and teaching of early literacy
77.14skills to children age three to grade 3 and the evaluation of the impact of the program
77.15under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
77.16Any balance in the first year does not cancel but is available in the second year.
77.17    Subd. 15. Minnesota math corps program. For the Minnesota math corps program
77.18under Minnesota Statutes, section 124D.42, subdivision 9.

77.19		$	750,000	.....	2014
77.20		$	750,000	.....	2015

77.21Any unexpended balance in the first year does not cancel but is available in the
77.22second year.
77.23    Subd. 16. Alternative compensation. For alternative teacher compensation aid
77.24under Minnesota Statutes, section 122A.415, subdivision 4:

77.25

$

59,711,000

.....

2015

77.26The 2015 appropriation includes $0 for 2014 and $59,711,000 for 2015.
77.27    Subd. 17. Teacher development and evaluation pilot grant program. For
77.28grants to school districts to participate in the teacher development and evaluation pilot
77.29grant program:

77.30

$

683,000

.....

2014

77.31This is a onetime appropriation.
77.32    Subd. 18. Career and technical aid. For career and technical aid under Minnesota
77.33Statutes, section 124D.4531, subdivision 1b:

78.1		$	7,551,000	.....	2014
78.2		$	8,798,000	.....	2015

78.3The 2014 appropriation includes $0 for 2014 and $7,551,000 for 2015.
78.4The 2015 appropriation includes $1,280,000 for 2014 and $7,518,000 for 2015.

78.5ARTICLE 4

78.6CHARTER SCHOOLS

78.7    Section 1. Minnesota Statutes 2012, section 124D.10, subdivision 14, is amended to
78.8read:
78.9    Subd. 14. Annual public reports. (a) A charter school must publish an annual report
78.10approved by the board of directors. The annual report must at least include information
78.11on school enrollment, student attrition, governance and management, staffing, finances,
78.12academic performance, operational performance, innovative practices and implementation,
78.13and future plans. A charter school must distribute the annual report by publication, mail,
78.14or electronic means to the commissioner, authorizer, school employees, and parents and
78.15legal guardians of students enrolled in the charter school and must also post the report on
78.16the charter school's official Web site. The reports are public data under chapter 13.
78.17(b) An authorizer must annually compile the individual reports of all schools it
78.18charters and that are published in accordance with paragraph (a), and submit a portfolio
78.19report to the commissioner in the form and manner determined by the commissioner and
78.20to the public. An authorizer's annual portfolio report must include:
78.21(1) the academic and financial performance of all operating charter schools overseen
78.22by the authorizer;
78.23(2) the status of the authorizer's charter school portfolio, identifying all charter
78.24schools in each of the following categories: approved, but not open; open and operating;
78.25and closed, including the year closed and reason for closure;
78.26(3) the authorizing function provided by the authorizer to the charter schools within
78.27its portfolio, including the authorizer's financial plan that is submitted to the commissioner
78.28under this section; and
78.29(4) the process for overseeing and evaluating all charter schools it authorizes to
78.30ensure compliance with all statutory and contractual obligations to increase students'
78.31academic performance and achievement.

78.32    Sec. 2. Minnesota Statutes 2012, section 124D.10, subdivision 23a, is amended to read:
79.1    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
79.2entering a lease of real property with a related party unless the lessor is a school district, a
79.3nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the
79.4lease cost is reasonable under section 124D.11, subdivision 4, clause (1).
79.5    (b) For purposes of this section and section 124D.11:
79.6    (1) "related party" means an affiliate or immediate relative of the other party in
79.7question, an affiliate of an immediate relative, or an immediate relative of an affiliate;
79.8    (2) "affiliate" means a person that directly or indirectly, through one or more
79.9intermediaries, controls, is controlled by, or is under common control with another person;
79.10    (3) "immediate family" means an individual whose relationship by blood, marriage,
79.11adoption, or partnering is no more remote than first cousin;
79.12    (4) "person" means an individual or entity of any kind; and
79.13    (5) "control" means the ability to affect the management, operations, or policy
79.14actions or decisions of a person, whether through ownership of voting securities, by
79.15contract, or otherwise.
79.16    (c) A lease of real property to be used for a charter school, not excluded in paragraph
79.17(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
79.18section 124D.10, subdivision 23a."
79.19    (d) If a charter school enters into as lessee a lease with a related party and the
79.20charter school subsequently closes, the commissioner has the right to recover from the
79.21lessor any lease payments in excess of those that are reasonable under section 124D.11,
79.22subdivision 4 , clause (1).
79.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2013
79.24and later.

79.25    Sec. 3. Minnesota Statutes 2012, section 124D.11, subdivision 1, is amended to read:
79.26    Subdivision 1. General education revenue. (a) General education revenue must
79.27be paid to a charter school as though it were a district. The general education revenue
79.28for each adjusted marginal cost pupil unit is the state average general education revenue
79.29per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
79.30residence, minus an amount equal to the product of the formula allowance according to
79.31section 126C.10, subdivision 2, times .0485 .0465, calculated without basic skills revenue,
79.32extended time revenue, alternative teacher compensation revenue, equity revenue, teacher
79.33development and evaluation revenue, pension adjustment revenue, transition revenue, and
79.34transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic
79.35alternative teacher compensation aid according to section 126C.10, subdivision 34, equity
80.1revenue, pension adjustment revenue, and transition revenue as though the school were a
80.2school district. The general education revenue for each extended time marginal cost
80.3 pupil unit equals $4,378 $4,722.
80.4(b) Notwithstanding paragraph (a), for charter schools in the first year of operation,
80.5general education revenue shall be computed using the number of adjusted pupil units
80.6in the current fiscal year.
80.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
80.8and later.

80.9    Sec. 4. Minnesota Statutes 2012, section 124D.11, subdivision 2, is amended to read:
80.10    Subd. 2. Transportation revenue. Transportation revenue must be paid to a charter
80.11school that provides transportation services according to section 124D.10, subdivision 16,
80.12according to this subdivision. Transportation aid shall equal transportation revenue.
80.13In addition to the revenue under subdivision 1, a charter school providing
80.14transportation services must receive general education aid equal to the sum of the product
80.15of (i) an amount equal to the product of the formula allowance according to section
80.16126C.10, subdivision 2 , times .0485 .0465, plus the transportation sparsity allowance for
80.17the school district in which the charter school is located times (ii) the adjusted marginal
80.18cost pupil units, plus the product of $223 times the extended time marginal cost pupil units.
80.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
80.20and later.

80.21    Sec. 5. Minnesota Statutes 2012, section 124D.11, subdivision 4, is amended to read:
80.22    Subd. 4. Building lease aid. (a) When a charter school finds it economically
80.23advantageous to rent or lease a building or land for any instructional purposes and it
80.24determines that the total operating capital revenue under section 126C.10, subdivision
80.2513 , is insufficient for this purpose, it may apply to the commissioner for building lease
80.26aid for this purpose. The commissioner must review the lease as provided in section
80.27124D.10, subdivision 17, and either approve or deny a lease aid application using the
80.28following criteria:
80.29(1) the reasonableness of the price based on current market values;
80.30(2) the extent to which the lease conforms to applicable state laws and rules; and
80.31(3) the appropriateness of the proposed lease in the context of the space needs and
80.32financial circumstances of the charter school.
81.1A charter school must not use the building lease aid it receives for custodial, maintenance
81.2service, utility, or other operating costs.
81.3    (b) The amount of annual building lease aid per pupil unit served for a charter school
81.4for any year leasing a building from any private, nonprofit, nonsectarian organization; any
81.5private property owner or any sectarian organization; or an affiliated building corporation,
81.6school district, or other governmental entity on which debt or capital lease obligations
81.7remain based on original issuance for building purchase, construction, or renovation shall
81.8not exceed the lesser of (a) (1) 90 percent of the approved cost or (b) (2) the product of the
81.9pupil units served for the current school year times $1,200 $1,314.
81.10(c) The annual building lease contract amount for a charter school leasing from a
81.11related nonprofit organization, a parent company, an affiliated building corporation, a
81.12school district, a charter school, or other governmental entity on which the original debt
81.13or capital lease obligations related to the original building purchase, construction, or
81.14renovation have been retired shall be no greater than the lesser of (1) $3 per square foot;
81.15or (2) the product of pupil units served for the current school year times $200. Lease
81.16aid is calculated as 90 percent of the lesser of (i) $3 per square foot, or (ii) the product
81.17of pupil units served times $200.
81.18(d) The annual lease contract and lease aid for a site with ownership as provided in
81.19paragraph (c) occupied by a charter school, where the building is expanded, improved, or
81.20sold, may be subject to the provisions of paragraph (c).
81.21EFFECTIVE DATE.This section is effective July 1, 2014.

81.22    Sec. 6. APPROPRIATIONS.
81.23    Subdivision 1. Department of Education. The sums indicated in this section are
81.24appropriated from the general fund to the Department of Education for the fiscal years
81.25designated.
81.26    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
81.27Statutes, section 124D.11, subdivision 4:

81.28		$	54,384,000	.....	2014
81.29		$	58,020,000	.....	2015

81.30The 2014 appropriation includes $6,819,000 for 2013 and $47,565,000 for 2014.
81.31The 2015 appropriation includes $8,066,000 for 2014 and $49,954,000 for 2015.

82.1ARTICLE 5

82.2SPECIAL PROGRAMS

82.3    Section 1. Minnesota Statutes 2012, section 124D.11, subdivision 5, is amended to read:
82.4    Subd. 5. Special education aid. (a) Except as provided in subdivision 2, special
82.5education aid must be paid to a charter school according to section 125A.76, as though
82.6it were a school district.
82.7(b) For fiscal year 2006, the charter school may charge tuition to the district of
82.8residence as follows:
82.9(1) if the charter school does not receive general education revenue on behalf of
82.10the student according to subdivision 1, tuition shall be charged as provided in section
82.11125A.11; or
82.12(2) if the charter school receives general education revenue on behalf of the student
82.13according to subdivision 1, tuition shall be charged as provided in section 127A.47,
82.14subdivision 7 , paragraph (d).
82.15(c) (b) For fiscal year 2007 2015 and later, the special education aid paid to the
82.16charter school shall be adjusted as follows:
82.17(1) if the charter school does not receive general education revenue on behalf of
82.18the student according to subdivision 1, the aid shall be adjusted as provided in section
82.19125A.11 ; or
82.20(2) if the charter school receives general education revenue on behalf of the student
82.21according to subdivision 1, the aid shall be adjusted as provided in section 127A.47,
82.22subdivision 7 , paragraph paragraphs (b) to (d).
82.23EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

82.24    Sec. 2. Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:
82.25    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006,
82.26when a school district provides instruction and services outside the district of residence,
82.27board and lodging, and any tuition to be paid, shall be paid by the district of residence.
82.28The tuition rate to be charged for any child with a disability, excluding a pupil for whom
82.29tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
82.30the sum of (1) the actual cost of providing special instruction and services to the child
82.31including a proportionate amount for special transportation and unreimbursed building
82.32lease and debt service costs for facilities used primarily for special education, plus (2)
82.33the amount of general education revenue and referendum aid attributable to the pupil,
82.34minus (3) the amount of special education aid for children with a disability received
83.1on behalf of that child, minus (4) if the pupil receives special instruction and services
83.2outside the regular classroom for more than 60 percent of the school day, the amount of
83.3general education revenue and referendum aid, excluding portions attributable to district
83.4and school administration, district support services, operations and maintenance, capital
83.5expenditures, and pupil transportation, attributable to that pupil for the portion of time
83.6the pupil receives special instruction and services outside of the regular classroom. If
83.7the boards involved do not agree upon the tuition rate, either board may apply to the
83.8commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
83.9a date for a hearing or request a written statement from each board, giving each board
83.10at least ten days' notice, and after the hearing or review of the written statements the
83.11commissioner must make an order fixing the tuition rate, which is binding on both school
83.12districts. General education revenue and referendum equalization aid attributable to a
83.13pupil must be calculated using the resident district's average general education revenue
83.14and referendum equalization aid per adjusted pupil unit.
83.15    (b) (a) For fiscal year 2007 2015 and later, when a school district provides special
83.16instruction and services for a pupil with a disability as defined in section 125A.02 outside
83.17the district of residence, excluding a pupil for whom an adjustment to special education
83.18aid is calculated according to section 127A.47, subdivision 7, paragraph (e) paragraphs (b)
83.19to (d), special education aid paid to the resident district must be reduced by an amount
83.20equal to (1) the actual cost of providing special instruction and services to the pupil,
83.21including a proportionate amount for special transportation and unreimbursed building
83.22lease and debt service costs for facilities used primarily for special education, plus (2)
83.23the amount of general education revenue and referendum equalization aid attributable
83.24to that pupil, calculated using the resident district's average general education revenue
83.25and referendum equalization aid per adjusted pupil unit excluding basic skills revenue,
83.26elementary sparsity revenue and secondary sparsity revenue, minus (3) the amount of
83.27special education aid for children with a disability under section 125A.76 received on
83.28behalf of that child, minus (4) if the pupil receives special instruction and services outside
83.29the regular classroom for more than 60 percent of the school day, the amount of general
83.30education revenue and referendum equalization aid, excluding portions attributable to
83.31district and school administration, district support services, operations and maintenance,
83.32capital expenditures, and pupil transportation, attributable to that pupil for the portion of
83.33time the pupil receives special instruction and services outside of the regular classroom,
83.34calculated using the resident district's average general education revenue and referendum
83.35equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity
83.36revenue and secondary sparsity revenue and the serving district's basic skills revenue,
84.1elementary sparsity revenue and secondary sparsity revenue per adjusted pupil unit.
84.2Notwithstanding clauses (1) and (4), for pupils served by a cooperative unit without a
84.3fiscal agent school district, the general education revenue and referendum equalization
84.4aid attributable to a pupil must be calculated using the resident district's average general
84.5education revenue and referendum equalization aid excluding compensatory revenue,
84.6elementary sparsity revenue, and secondary sparsity revenue. Special education aid paid
84.7to the district or cooperative providing special instruction and services for the pupil
84.8must be increased by the amount of the reduction in the aid paid to the resident district.
84.9Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision
84.107 , shall be recognized and reported as revenues and expenditures on the resident school
84.11district's books of account under sections 123B.75 and 123B.76. If the resident district's
84.12special education aid is insufficient to make the full adjustment, the remaining adjustment
84.13shall be made to other state aid due to the district.
84.14    (c) (b) Notwithstanding paragraphs paragraph (a) and (b) and section 127A.47,
84.15subdivision 7 , paragraphs (b) to (d) and (e), a charter school where more than 30 percent
84.16of enrolled students receive special education and related services, a site approved under
84.17section 125A.515, an intermediate district, a special education cooperative, or a school
84.18district that served as the applicant agency for a group of school districts for federal
84.19special education aids for fiscal year 2006 may apply to the commissioner for authority to
84.20charge the resident district an additional amount to recover any remaining unreimbursed
84.21costs of serving pupils with a disability. The application must include a description of the
84.22costs and the calculations used to determine the unreimbursed portion to be charged to the
84.23resident district. Amounts approved by the commissioner under this paragraph must be
84.24included in the tuition billings or aid adjustments under paragraph (a) or (b), or section
84.25127A.47, subdivision 7 , paragraph (d) or (e) paragraphs (b) to (d), as applicable.
84.26    (d) (c) For purposes of this subdivision and section 127A.47, subdivision 7,
84.27paragraphs (d) and (e), "general education revenue and referendum equalization aid"
84.28means the sum of the general education revenue according to section 126C.10, subdivision
84.291, excluding alternative teacher compensation revenue, plus the referendum equalization
84.30aid according to section 126C.17, subdivision 7, as adjusted according to section 127A.47,
84.31subdivision 7, paragraphs (a) to (c).
84.32EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

84.33    Sec. 3. Minnesota Statutes 2012, section 125A.76, subdivision 4, is amended to read:
84.34    Subd. 4. State total special education aid. The state total special education aid
84.35equals $529,247,000 for fiscal year 2007, $694,063,000 for fiscal year 2008, $719,470,000
85.1for fiscal year 2009, $735,693,000 for fiscal year 2010, and $786,586,000 for fiscal year
85.22011 $869,357,000 for fiscal year 2013, $916,575,000 for fiscal year 2014, $976,895,000
85.3for fiscal year 2015, $1,037,655,000 for fiscal year 2016, and $1,100,577,000 for fiscal
85.4year 2017. The state total special education aid for later fiscal years equals:
85.5    (1) the state total special education aid for the preceding fiscal year; times
85.6    (2) the program growth factor; times
85.7    (3) the greater of one, or the ratio of the state total average daily membership for the
85.8current fiscal year to the state total average daily membership for the preceding fiscal year.

85.9    Sec. 4. Minnesota Statutes 2012, section 125A.79, subdivision 1, is amended to read:
85.10    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
85.11subdivision apply.
85.12    (a) "Unreimbursed special education cost" means the sum of the following:
85.13    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
85.14transportation services eligible for revenue under section 125A.76; plus
85.15    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
85.16125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
85.17    (3) revenue for teachers' salaries, contracted services, supplies, equipment, and
85.18transportation services under section 125A.76; minus
85.19    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
85.20eligible for revenue under section 125A.76, subdivision 2.
85.21    (b) "General revenue" for a school district means the sum of the general education
85.22revenue according to section 126C.10, subdivision 1, excluding alternative teacher
85.23compensation revenue, minus transportation sparsity revenue minus total operating
85.24capital revenue. "General revenue" for a charter school means the sum of the general
85.25education revenue according to section 124D.11, subdivision 1, and transportation revenue
85.26according to section 124D.11, subdivision 2, excluding alternative teacher compensation
85.27revenue, minus referendum equalization aid minus transportation sparsity revenue minus
85.28operating capital revenue.
85.29    (c) "Average daily membership" has the meaning given it in section 126C.05.
85.30    (d) "Program growth factor" means 1.02 for fiscal year 2012 and later.
85.31EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

85.32    Sec. 5. Minnesota Statutes 2012, section 125A.79, subdivision 8, is amended to read:
85.33    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
85.34services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
86.1treatment facility by court action in a state that does not have a reciprocity agreement with
86.2the commissioner under section 125A.155, the resident school district shall submit the
86.3balance of the tuition bills, minus the general education revenue, excluding basic skills
86.4revenue and alternative teacher compensation revenue, and referendum equalization aid
86.5attributable to the pupil, calculated using the resident district's average general education
86.6revenue and referendum equalization aid per adjusted pupil unit minus the special
86.7education contracted services initial revenue attributable to the pupil.
86.8EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

86.9    Sec. 6. APPROPRIATIONS.
86.10    Subdivision 1. Department of Education. The sums indicated in this section are
86.11appropriated from the general fund to the Department of Education for the fiscal years
86.12designated.
86.13    Subd. 2. Special education; regular. For special education aid under Minnesota
86.14Statutes, section 125A.75:

86.15		$	901,904,000	.....	2014
86.16		$	968,149,000	.....	2015

86.17The 2014 appropriation includes $118,232,000 for 2013 and $783,672,000 for 2014.
86.18The 2015 appropriation includes $132,903,000 for 2014 and $835,246,000 for 2015.
86.19    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
86.20section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
86.21within the district boundaries for whom no district of residence can be determined:

86.22		$	1,655,000	.....	2014
86.23		$	1,752,000	.....	2015

86.24If the appropriation for either year is insufficient, the appropriation for the other
86.25year is available.
86.26    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
86.27services under Minnesota Statutes, section 125A.75, subdivision 1:

86.28		$	342,000	.....	2014
86.29		$	355,000	.....	2015

86.30The 2014 appropriation includes $45,000 for 2013 and $297,000 for 2014.
86.31The 2015 appropriation includes $50,000 for 2014 and $305,000 for 2015.
87.1    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
87.2Statutes, section 125A.79, subdivision 7:

87.3		$	117,841,000	.....	2014
87.4		$	121,897,000	.....	2015

87.5The 2014 appropriation includes $42,030,000 for 2013 and $75,811,000 for 2014.
87.6The 2015 appropriation includes $44,009,000 for 2014 and $77,888,000 for 2015.
87.7    Subd. 6. Court-placed special education revenue. For reimbursing serving school
87.8districts for unreimbursed eligible expenditures attributable to children placed in the serving
87.9school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:

87.10		$	54,000	.....	2014
87.11		$	55,000	.....	2015

87.12    Subd. 7. Special education out-of-state tuition. For special education out-of-state
87.13tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

87.14		$	250,000	.....	2014
87.15		$	250,000	.....	2015

87.16    Sec. 7. REPEALER.
87.17Minnesota Statutes 2012, sections 124D.454, subdivisions 10 and 11; and 125A.76,
87.18subdivision 7, are repealed.

87.19ARTICLE 6

87.20FACILITIES AND TECHNOLOGY

87.21    Section 1. Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:
87.22    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
87.23district equals the sum of the first tier equalized debt service levy and the second tier
87.24equalized debt service levy.
87.25(b) A district's first tier equalized debt service levy equals the district's first tier debt
87.26service equalization revenue times the lesser of one or the ratio of:
87.27(1) the quotient derived by dividing the adjusted net tax capacity of the district for
87.28the year before the year the levy is certified by the adjusted pupil units in the district for
87.29the school year ending in the year prior to the year the levy is certified; to
87.30(2) $3,049 $3,550.
87.31(c) A district's second tier equalized debt service levy equals the district's second tier
87.32debt service equalization revenue times the lesser of one or the ratio of:
88.1(1) the quotient derived by dividing the adjusted net tax capacity of the district for
88.2the year before the year the levy is certified by the adjusted pupil units in the district for
88.3the school year ending in the year prior to the year the levy is certified; to
88.4(2) $7,622 $7,900.
88.5EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
88.6later.

88.7    Sec. 2. Minnesota Statutes 2012, section 123B.54, is amended to read:
88.8123B.54 DEBT SERVICE APPROPRIATION.
88.9    (a) $21,727,000 $25,191,000 in fiscal year 2014 2016 and $24,201,000 $22,773,000
88.10 in fiscal year 2015 2017 and later are appropriated from the general fund to the
88.11commissioner of education for payment of debt service equalization aid under section
88.12123B.53 .
88.13    (b) The appropriations in paragraph (a) must be reduced by the amount of any
88.14money specifically appropriated for the same purpose in any year from any state fund.
88.15EFFECTIVE DATE.This section is effective for revenue in fiscal year 2015 and
88.16later.

88.17    Sec. 3. Minnesota Statutes 2012, section 123B.57, subdivision 4, is amended to read:
88.18    Subd. 4. Health and safety levy. To receive health and safety revenue, a district
88.19may levy an amount equal to the district's health and safety revenue as defined in
88.20subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
88.21dividing the adjusted net tax capacity of the district for the year preceding the year the
88.22levy is certified by the adjusted marginal cost pupil units in the district for the school year
88.23to which the levy is attributable, to $2,796 $3,165.
88.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
88.25and later.

88.26    Sec. 4. Minnesota Statutes 2012, section 123B.591, subdivision 2, is amended to read:
88.27    Subd. 2. Deferred maintenance revenue. The deferred maintenance revenue for
88.28an eligible school district equals the product of $60 $64 times the adjusted marginal cost
88.29 pupil units for the school year times the lesser of one or the ratio of the district's average
88.30age of building space to 35 years.
89.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
89.2and later.

89.3    Sec. 5. Minnesota Statutes 2012, section 123B.591, subdivision 3, is amended to read:
89.4    Subd. 3. Deferred maintenance levy. To obtain deferred maintenance revenue for
89.5fiscal year 2008 and later, a district may levy an amount not more than the product of its
89.6deferred maintenance revenue for the fiscal year times the lesser of one or the ratio of its
89.7adjusted net tax capacity per adjusted marginal cost pupil unit to $5,621 $5,965.
89.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
89.9and later.

89.10    Sec. 6. Minnesota Statutes 2012, section 125B.26, subdivision 4, is amended to read:
89.11    Subd. 4. District aid. For fiscal year 2006 and later, a district, charter school,
89.12or intermediate school district's Internet access equity aid equals the district, charter
89.13school, or intermediate school district's approved cost for the previous fiscal year
89.14according to subdivision 1 exceeding $15 $16 times the district's adjusted marginal
89.15cost pupil units for the previous fiscal year or no reduction if the district is part of an
89.16organized telecommunications access cluster. Equity aid must be distributed to the
89.17telecommunications access cluster for districts, charter schools, or intermediate school
89.18districts that are members of the cluster or to individual districts, charter schools, or
89.19intermediate school districts not part of a telecommunications access cluster.
89.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
89.21and later.

89.22    Sec. 7. DISABLED ACCESS LEVY AUTHORITY; TRACY.
89.23Notwithstanding the time limit in Minnesota Statutes, section 123B.58, subdivision
89.243, Independent School District No. 2904, Tracy, may levy its remaining disabled access
89.25levy authority over two years, beginning with taxes payable in 2015.
89.26EFFECTIVE DATE.This section is effective for levies certified in 2014 and later.

89.27    Sec. 8. ELEVATOR REPAIR LEVY; NORMAN COUNTY WEST SCHOOL
89.28DISTRICT.
89.29For taxes payable in 2015 and 2016, Independent School District No. 2527,
89.30Norman County West, may levy for an amount not to exceed $27,500 in each year. The
90.1proceeds of this levy must be used to refurbish an existing elevator with new electrical and
90.2mechanical components.
90.3EFFECTIVE DATE.This section is effective for taxes payable in 2015 and 2016.

90.4    Sec. 9. APPROPRIATIONS.
90.5    Subdivision 1. Department of Education. The sums indicated in this section are
90.6appropriated from the general fund to the Department of Education for the fiscal years
90.7designated.
90.8    Subd. 2. Health and safety revenue. For health and safety aid according to
90.9Minnesota Statutes, section 123B.57, subdivision 5:

90.10		$	458,000	.....	2014
90.11		$	435,000	.....	2015

90.12The 2014 appropriation includes $26,000 for 2013 and $432,000 for 2014.
90.13The 2015 appropriation includes $73,000 for 2014 and $362,000 for 2015.
90.14    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
90.15Statutes, section 123B.53, subdivision 6:

90.16		$	18,909,000	.....	2014
90.17		$	24,986,000	.....	2015

90.18The 2014 appropriation includes $2,397,000 for 2013 and $16,512,000 for 2014.
90.19The 2015 appropriation includes $2,800,000 for 2014 and $22,186,000 for 2015.
90.20    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
90.21according to Minnesota Statutes, section 123B.59, subdivision 1:

90.22		$	19,114,000	.....	2014
90.23		$	19,287,000	.....	2015

90.24The 2014 appropriation includes $2,623,000 for 2013 and $16,491,000 for 2014.
90.25The 2015 appropriation includes $2,796,000 for 2014 and $16,491,000 for 2015.
90.26    Subd. 5. Equity in telecommunications access. For equity in telecommunications
90.27access:

90.28		$	3,750,000	.....	2014
90.29		$	3,750,000	.....	2015

90.30If the appropriation amount is insufficient, the commissioner shall reduce the
90.31reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
90.32revenue for fiscal years 2014 and 2015 shall be prorated.
91.1Any balance in the first year does not cancel but is available in the second year.
91.2    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
91.3Minnesota Statutes, section 123B.591, subdivision 4:

91.4		$	3,532,000	.....	2014
91.5		$	3,729,000	.....	2015

91.6The 2014 appropriation includes $456,000 for 2013 and $3,076,000 for 2014.
91.7The 2015 appropriation includes $521,000 for 2014 and $3,208,000 for 2015.

91.8ARTICLE 7

91.9NUTRITION, LIBRARIES, AND ACCOUNTING

91.10    Section 1. Minnesota Statutes 2012, section 123B.75, subdivision 5, is amended to read:
91.11    Subd. 5. Levy recognition. (a) For fiscal years 2009 and 2010, in June of each
91.12year, the school district must recognize as revenue, in the fund for which the levy was
91.13made, the lesser of:
91.14(1) the sum of May, June, and July school district tax settlement revenue received in
91.15that calendar year, plus general education aid according to section 126C.13, subdivision
91.164 , received in July and August of that calendar year; or
91.17(2) the sum of:
91.18(i) 31 percent of the referendum levy certified according to section 126C.17, in
91.19calendar year 2000; and
91.20(ii) the entire amount of the levy certified in the prior calendar year according to
91.21section 124D.86, subdivision 4, for school districts receiving revenue under sections
91.22124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a),
91.23and 3 , paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
91.24(iii) zero percent of the amount of the levy certified in the prior calendar year for the
91.25school district's general and community service funds, plus or minus auditor's adjustments,
91.26not including the levy portions that are assumed by the state, that remains after subtracting
91.27the referendum levy certified according to section 126C.17 and the amount recognized
91.28according to item (ii).
91.29(b) For fiscal year 2011 and later years, in June of each year, the school district must
91.30recognize as revenue, in the fund for which the levy was made, the lesser of:
91.31(1) the sum of May, June, and July school district tax settlement revenue received in
91.32that calendar year, plus general education aid according to section 126C.13, subdivision
91.334 , received in July and August of that calendar year; or
91.34(2) the sum of:
92.1(i) the greater of 48.6 percent of the referendum levy certified according to section
92.2126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
92.3according to section 126C.17 in calendar year 2000; plus
92.4(ii) the entire amount of the levy certified in the prior calendar year according to
92.5section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue under
92.6sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, subdivision 4, for
92.7Special School District No. 1, Minneapolis, Independent School District No. 625, St.
92.8Paul, and Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2,
92.9paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48,
92.10subdivision 6; plus
92.11(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
92.12school district's general and community service funds, plus or minus auditor's adjustments,
92.13that remains after subtracting the referendum levy certified according to section 126C.17
92.14and the amount recognized according to item (ii).

92.15    Sec. 2. Minnesota Statutes 2012, section 124D.111, subdivision 1, is amended to read:
92.16    Subdivision 1. School lunch aid computation. Each school year, the state must pay
92.17participants in the national school lunch program the amount of 12 14 cents for each full
92.18paid, reduced reduced-price, and free student lunch served to students.
92.19EFFECTIVE DATE.This section is effective July 1, 2013.

92.20    Sec. 3. Minnesota Statutes 2012, section 124D.111, is amended by adding a
92.21subdivision to read:
92.22    Subd. 4. Inability to pay. A school that provides meals under this section must not
92.23deny a child lunch or provide that child with an alternative meal if that child qualifies for a
92.24reduced-price meal and that child or that child's parent or guardian provides notice to the
92.25school that the family does not have sufficient funds to pay for the lunch.

92.26    Sec. 4. Minnesota Statutes 2012, section 124D.119, is amended to read:
92.27124D.119 SUMMER FOOD SERVICE REPLACEMENT AID.
92.28States funds are available to compensate department-approved summer food
92.29program sponsors for reduced federal operating reimbursement rates under Public Law
92.30104-193, the federal summer food service program. A sponsor is eligible for summer food
92.31service replacement aid equal to the sum of the following amounts:. Reimbursement shall
93.1be made on December 15 based on total meals served by each sponsor from the end of the
93.2school year to the beginning of the next school year on a pro rata basis.
93.3(1) for breakfast service, up to four cents per breakfast served by the sponsor during
93.4the current program year;
93.5(2) for lunch or supper service, up to 14 cents per lunch or supper served by the
93.6sponsor during the current program year; and
93.7(3) for supplement service, up to ten cents per supplement served by the sponsor
93.8during the current program year.

93.9    Sec. 5. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
93.10    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
93.11treasurers pursuant to section 276.10, apportionments from the school endowment fund
93.12pursuant to section 127A.33, apportionments by the county auditor pursuant to section
93.13127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
93.14pursuant to chapter 298.
93.15(b) "Cumulative amount guaranteed" means the product of
93.16(1) the cumulative disbursement percentage shown in subdivision 3; times
93.17(2) the sum of
93.18(i) the current year aid payment percentage of the estimated aid and credit
93.19entitlements paid according to subdivision 13; plus
93.20(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
93.21(iii) the other district receipts.
93.22(c) "Payment date" means the date on which state payments to districts are made
93.23by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
93.24or a weekday which is a legal holiday, the payment shall be made on the immediately
93.25preceding business day. The commissioner may make payments on dates other than
93.26those listed in subdivision 3, but only for portions of payments from any preceding
93.27payment dates which could not be processed by the electronic funds transfer method due
93.28to documented extenuating circumstances.
93.29(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
93.30fiscal year 2011, and 60 in fiscal years 2012 and later 85.5 in fiscal year 2014 and later.

93.31    Sec. 6. CYRUS AND MORRIS SCHOOL DISTRICT CONSOLIDATION.
93.32    Subdivision 1. Purpose. The legislature finds that an orderly, voluntary
93.33consolidation of Independent School Districts Nos. 611, Cyrus, and 769, Morris, promotes
93.34the well-being of the students and increases educational efficiency in those school districts.
94.1    Subd. 2. Remediation costs. Independent School District No. 611, Cyrus, may
94.2identify all health and safety remediation costs related to the demolition of the Cyrus
94.3school building and submit those amounts to the commissioner of education for approval.
94.4Any approved costs may be included either in the district's health and safety plan or in the
94.5bonding authority authorized under subdivision 3.
94.6    Subd. 3. Facility bonds. Independent School District No. 611, Cyrus, may issue
94.7general obligation bonds without an election under Minnesota Statutes, chapter 475, after
94.8a public meeting of the school board with notice given by mail according to Minnesota
94.9Statutes, section 123B.09, subdivision 11, in an amount not to exceed $1,000,000
94.10approved by the commissioner of education for the costs associated with demolishing the
94.11Cyrus school building. The bonds must be repaid within ten years of issuance. Any excess
94.12bond proceeds after bonds are repaid must be credited back to the taxpayers of the former
94.13Independent School District No. 611, Cyrus.
94.14    Subd. 4. Reorganization operating debt determined. Independent School District
94.15No. 611, Cyrus, must estimate its reorganization operating debt according to Minnesota
94.16Statutes, section 123B.82, and submit that amount to the commissioner of education
94.17for approval.
94.18    Subd. 5. Reorganization operating debt bonds. Independent School District No.
94.19611, Cyrus, may issue general obligation bonds without an election under Minnesota
94.20Statutes, chapter 475, after a public meeting of the school board with notice given by mail
94.21according to Minnesota Statutes, section 123B.09, subdivision 11, in an amount not to
94.22exceed the reorganization operating debt approved by the commissioner of education
94.23under subdivision 4. The bonds must be repaid within six years of issuance.
94.24    Subd. 6. Repayment. The bonded debt issued under this section remains payable
94.25by the taxable property located within the boundaries of former Independent School
94.26District No. 611, Cyrus.
94.27EFFECTIVE DATE.This section is effective the day following final enactment.

94.28    Sec. 7. RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.
94.29Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph
94.30(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions
94.31of Minnesota Statutes, section 124D.041, and the agreement shall not apply to Independent
94.32School District No. 402, Hendricks.
94.33EFFECTIVE DATE.This section is effective for the 2013-2014 school year and
94.34later.

95.1    Sec. 8. APPROPRIATIONS.
95.2    Subdivision 1. Department of Education. The sums indicated in this section are
95.3appropriated from the general fund to the Department of Education for the fiscal years
95.4designated.
95.5    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
95.6section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

95.7		$	14,596,000	.....	2014
95.8		$	14,888,000	.....	2015

95.9    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
95.10Statutes, section 124D.1158:

95.11		$	5,711,000	.....	2014
95.12		$	6,022,000	.....	2015

95.13    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
95.14section 124D.118:

95.15		$	1,039,000	.....	2014
95.16		$	1,049,000	.....	2015

95.17    Subd. 5. Summer food service replacement aid. For summer food service
95.18replacement aid under Minnesota Statutes, section 124D.119:

95.19		$	150,000	.....	2014
95.20		$	150,000	.....	2015

95.21    Subd. 6. Basic system support. For basic system support grants under Minnesota
95.22Statutes, section 134.355:

95.23		$	13,448,000	.....	2014
95.24		$	13,570,000	.....	2015

95.25The 2014 appropriation includes $1,845,000 for 2013 and $11,603,000 for 2014.
95.26The 2015 appropriation includes $1,967,000 for 2014 and $11,603,000 for 2015.
95.27    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
95.28Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

95.29		$	1,288,000	.....	2014
95.30		$	1,300,000	.....	2015

95.31The 2014 appropriation includes $176,000 for 2013 and $1,112,000 for 2014.
95.32The 2015 appropriation includes $188,000 for 2014 and $1,112,000 for 2015.
96.1    Subd. 8. Electronic library for Minnesota. For statewide licenses to online
96.2databases selected in cooperation with the Minnesota Office of Higher Education for
96.3school media centers, public libraries, state government agency libraries, and public
96.4or private college or university libraries:

96.5		$	900,000	.....	2014
96.6		$	900,000	.....	2015

96.7Any balance in the first year does not cancel but is available in the second year.
96.8    Subd. 9. Regional library telecommunications aid. For regional library
96.9telecommunications aid under Minnesota Statutes, section 134.355:

96.10		$	2,279,000	.....	2014
96.11		$	2,300,000	.....	2015

96.12The 2014 appropriation includes $312,000 for 2013 and $1,967,000 for 2014.
96.13The 2015 appropriation includes $333,000 for 2014 and $1,967,000 for 2015.

96.14ARTICLE 8

96.15EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND
96.16LIFELONG LEARNING

96.17    Section 1. Minnesota Statutes 2012, section 13.319, is amended by adding a
96.18subdivision to read:
96.19    Subd. 9. Early learning scholarships. Section 124D.143 governs data under the
96.20early learning scholarship program.

96.21    Sec. 2. [124D.143] EARLY LEARNING SCHOLARSHIPS.
96.22    Subdivision 1. Early learning scholarships established. The Office of Early
96.23Learning must oversee the early learning scholarship program in consultation with the
96.24Minnesota Departments of Education, Human Services, and Health.
96.25    Subd. 2. Duties. The Office of Early Learning shall administer the early learning
96.26scholarship program, establish participation standards for children and their families,
96.27develop criteria for qualifying providers based on section 124D.142, and contract for
96.28administrative services as necessary with a resource and referral organization under
96.29section 119B.19, or other nonprofit or public entity.
96.30    Subd. 3. Definitions. (a) The terms defined in the subdivision apply to this section.
96.31(b) "Director" means the director of the Office of Early Learning.
96.32(c) "Eligible program" means a Head Start program under section 119A.50, school
96.33readiness program under section 124D.15, or other school district child-based program
97.1designed to provide early education services to children not yet in kindergarten, licensed
97.2center-based child care program under chapter 245A, or licensed family child care
97.3program under chapter 245A or other program providing early learning opportunities.
97.4(d) "Income" has the meaning given in section 119B.011, subdivision 15.
97.5(e) "Parent" means the parent or legal guardian of a child.
97.6(f) "Prospective program" means an eligible program that makes a commitment to
97.7enhance its quality of education and care and demonstrates to the director's satisfaction that
97.8the program is pursuing a program rating. For fiscal years 2016 and later, a prospective
97.9program must cite a hardship or demonstrate a special circumstance as to why the program
97.10is not yet ready to enter the rating process before the director may grant it eligibility.
97.11(g) "Rated program" means an eligible program that receives one, two, three, or four
97.12stars under the quality rating and improvement system established in section 124D.142.
97.13    Subd. 4. Participant eligibility. The parent of a child who will be at least three
97.14years of age as of September 1 of the year of application, is eligible to apply for an early
97.15learning scholarship if the family's income is at or below 185 percent of the federal
97.16poverty level. The director of the Office of Early Learning may specify the form and
97.17manner of the application for a scholarship. The director may establish a method to
97.18determine family income but a parent meets this requirement by documenting their child's
97.19identification through another public funding eligibility process, including the free and
97.20reduced-price lunch program, National School Lunch Act, United States Code, title
97.2142, section 1751, part 210; Head Start under federal Improving Head Start for School
97.22Readiness Act of 2007; Minnesota family investment program under chapter 256J; the
97.23Federal Supplemental Nutrition Assistance Program; and child care assistance programs
97.24under chapter 119B, and no further information to verify income is required. A parent
97.25under age 21 who is pursuing a high school or general education equivalency diploma is
97.26eligible for an early learning scholarship if the parent has a child age zero to five years old
97.27and meets the income eligibility requirements in this subdivision.
97.28    Subd. 5. Scholarship amount. (a) The director annually shall determine the
97.29maximum scholarship amounts based on the results of the rate survey conducted under
97.30section 119B.13, subdivision 1, paragraph (b), and may establish a range of scholarship
97.31amounts taking into account the child's level of need and geographic location. The
97.32director shall establish a scholarship amount schedule according to the eligible program's
97.33rating under subdivision 3, paragraph (g), and prospective programs under subdivision
97.343, paragraph (f). The scholarship amounts may be designed to be layered around other
97.35assistance programs available to that child. The director shall not consider local funds
97.36allocated to support an early learning program when layering scholarships around other
98.1assistance programs. Eligible providers must be notified of the scholarship allocations
98.2available in their geographic location.
98.3(b) The director shall try to maintain a statewide annual average scholarship amount
98.4of $6,000 per scholarship recipient and report annually to the legislature the actual average
98.5statewide scholarship amount per scholarship recipient.
98.6    Subd. 6. Award of scholarships. (a) The director shall establish application
98.7timelines and determine the schedule for awarding scholarships that meet operational
98.8needs of eligible programs. The director may prioritize applications on factors including
98.9family income, geographic location, and needs of the child. By March 15, eligible
98.10programs may notify the director of the number of scholarship-eligible children who are
98.11eligible under subdivision 4 and who have applied for enrollment in that program. To
98.12facilitate enrollment planning, by April 15, the director shall notify eligible programs that
98.13have provided enrollment information under this paragraph of the scholarship status of
98.14each applicant. To the extent practicable and taking into account family mobility, the
98.15scholarships must be awarded to eligible recipients beginning April 15 of each year for a
98.16child's participation in a program starting in July, August, or September of that year. Any
98.17siblings of a child who has been awarded a scholarship under this section must be awarded
98.18a scholarship upon request provided the sibling attends the same program. A child who
98.19has received a scholarship under this section must continue to receive a scholarship until
98.20that child enrolls in kindergarten or turns six years of age.
98.21(b) A three- or four-star rated program that has a waiting list of children eligible for
98.22scholarships may notify the director of the program's desire to serve additional children in
98.23order to accommodate scholarship recipients. The director may designate a predetermined
98.24number of scholarship slots for that program and notify the program of that number.
98.25(c) A scholarship recipient may choose any available program and is not required to
98.26enroll in a program with a predetermined number of slots.
98.27(d) A child who receives a scholarship who has not completed development
98.28screening under sections 121A.16 to 121A.19 must complete that screening within 45
98.29days of first attending an eligible program.
98.30(e) The director shall report annually to the legislature on a summary of the
98.31geographic distribution of scholarships throughout the state.
98.32    Subd. 7. Scholarship recipient choice of programs. A scholarship recipient may
98.33choose to apply to any rated program or prospective program for acceptance. If the
98.34scholarship recipient has not been accepted and subsequently enrolled in a rated program
98.35within ten months of receipt of the scholarship, the scholarship cancels and the recipient
98.36must reapply in order to be eligible for another scholarship.
99.1    Subd. 8. Building quality. For fiscal years 2014 and 2015 only, the director must
99.2develop a streamlined process to encourage eligible programs to enter the rating program.
99.3As a part of building quality in the system of providers, the director may grant a parent
99.4authority to use a scholarship at a prospective program.
99.5    Subd. 9. Provider reimbursement. The director may determine the form and
99.6method of payment to the fiscal agent for each program serving a scholarship recipient.
99.7The director may make quarterly payments on behalf of the scholarship recipient in
99.8advance of the services provided to the child, or arrange other payment methods for
99.9providers. The director may request information as necessary from providers to verify
99.10scholarship payments.
99.11    Subd. 10. Earned income calculation. Scholarships paid to providers on behalf
99.12of eligible parents must not be counted as earned income for the purposes of medical
99.13assistance, MinnesotaCare, Minnesota family investment program, diversionary work
99.14program, child care assistance, or Head Start programs. Scholarships paid to providers on
99.15behalf of eligible parents must not be considered child care funds for the purposes of the
99.16child care assistance program under chapter 119B.
99.17    Subd. 11. Student identification number. The director shall collect from
99.18participating programs data including, but not limited to, demographic, socioeconomic,
99.19participation, and assessment information related to scholarship recipients. Data on
99.20scholarship recipients are private data on individuals as defined in section 13.02,
99.21subdivision 12.
99.22    Subd. 12. Report required. (a) The director, in consultation with the children's
99.23cabinet, shall develop and implement a plan to publicize and increase parent awareness of
99.24early learning scholarships. The director must report the results of the outreach efforts to
99.25the legislature by January 15 of each year.
99.26(b) The director shall coordinate existing evaluation and assessment efforts and track
99.27scholarship program participation to understand program outcomes. The director must
99.28report to the legislature on the performance of the scholarship program by January 15,
99.292016, and each year thereafter.

99.30    Sec. 3. Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to read:
99.31    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
99.32education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
99.33during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
99.34(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
99.35fiscal years equals:
100.1    (1) the state total adult basic education aid for the preceding fiscal year plus any
100.2amount that is not paid for during the previous fiscal year, as a result of adjustments under
100.3subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
100.4    (2) the lesser of:
100.5    (i) 1.02 1.03; or
100.6    (ii) the average growth in state total contact hours over the prior ten program years.
100.7    Beginning in fiscal year 2002, two percent of the state total adult basic education
100.8aid must be set aside for adult basic education supplemental service grants under section
100.9124D.522 .
100.10    (b) The state total adult basic education aid, excluding basic population aid, equals
100.11the difference between the amount computed in paragraph (a), and the state total basic
100.12population aid under subdivision 2.
100.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2014
100.14and later.

100.15    Sec. 4. EARLY LEARNING SCHOLARSHIPS; FISCAL YEAR 2014 ONLY.
100.16Notwithstanding the timelines in Minnesota Statutes, section 124D.143, for fiscal
100.17year 2014 only, the director shall establish an expedited process to award scholarships
100.18to eligible recipients attending three- or four-star rated programs to accommodate those
100.19eligible programs with fall enrollment deadlines.

100.20    Sec. 5. APPROPRIATIONS.
100.21    Subdivision 1. Department of Education. The sums indicated in this section are
100.22appropriated from the general fund to the Department of Education for the fiscal years
100.23designated.
100.24    Subd. 2. School readiness. For revenue for school readiness programs under
100.25Minnesota Statutes, sections 124D.15 and 124D.16:

100.26		$	10,004,000	.....	2014
100.27		$	10,159,000	.....	2015

100.28The 2014 appropriation includes $1,372,000 for 2013 and $8,632,000 for 2014.
100.29The 2015 appropriation includes $1,463,000 for 2014 and $8,696,000 for 2015.
100.30    Subd. 3. Early childhood family education aid. For early childhood family
100.31education aid under Minnesota Statutes, section 124D.135:

101.1		$	21,879,000	.....	2014
101.2		$	22,422,000	.....	2015

101.3The 2014 appropriation includes $3,008,000 for 2013 and $18,871,000 for 2014.
101.4The 2015 appropriation includes $3,200,000 for 2014 and $19,222,000 for 2015.
101.5    Subd. 4. Early childhood education scholarships. For early childhood education
101.6scholarships under Minnesota Statutes, section 124D.143:

101.7		$	25,000,000	.....	2014
101.8		$	25,000,000	.....	2015

101.9The 2014 appropriation includes $950,000 for administrative costs to run the
101.10program.
101.11The 2015 appropriation includes $950,000 for administrative costs to run the
101.12program.
101.13Any balance in the first year does not cancel but is available in the second year.
101.14    Subd. 5. Parent-child home program. For a grant to the parent-child home
101.15program:

101.16		$	250,000	.....	2014
101.17		$	250,000	.....	2015

101.18The grant must be used for an evidence-based and research-validated early childhood
101.19literacy and school readiness program for children ages 16 months to four years at its
101.20existing suburban program location. The program must expand to one additional urban
101.21and one additional rural program location for fiscal years 2014 and 2015.
101.22    Subd. 6. Health and developmental screening aid. For health and developmental
101.23screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

101.24		$	3,390,000	.....	2014
101.25		$	3,345,000	.....	2015

101.26The 2014 appropriation includes $474,000 for 2013 and $2,916,000 for 2014.
101.27The 2015 appropriation includes $494,000 for 2014 and $2,851,000 for 2015.
101.28    Subd. 7. Head Start program. For Head Start programs under Minnesota Statutes,
101.29section 119A.52:

101.30		$	20,100,000	.....	2014
101.31		$	20,100,000	.....	2015

101.32    Subd. 8. Educate parents partnership. For the educate parents partnership under
101.33Minnesota Statutes, section 124D.129:

102.1		$	49,000	.....	2014
102.2		$	49,000	.....	2015

102.3    Subd. 9. Kindergarten entrance assessment initiative and intervention
102.4program. For the kindergarten entrance assessment initiative and intervention program
102.5under Minnesota Statutes, section 124D.162:

102.6		$	281,000	.....	2014
102.7		$	281,000	.....	2015

102.8    Subd. 10. Community education aid. For community education aid under
102.9Minnesota Statutes, section 124D.20:

102.10		$	926,000	.....	2014
102.11		$	1,056,000	.....	2015

102.12The 2014 appropriation includes $118,000 for 2013 and $808,000 for 2014.
102.13The 2015 appropriation includes $137,000 for 2014 and $919,000 for 2015.
102.14    Subd. 11. Adults with disabilities program aid. For adults with disabilities
102.15programs under Minnesota Statutes, section 124D.56:

102.16		$	704,000	.....	2014
102.17		$	710,000	.....	2015

102.18The 2014 appropriation includes $96,000 for 2013 and $608,000 for 2014.
102.19The 2015 appropriation includes $102,000 for 2014 and $608,000 for 2015.
102.20    Subd. 12. Hearing-impaired adults. For programs for hearing-impaired adults
102.21under Minnesota Statutes, section 124D.57:

102.22		$	70,000	.....	2014
102.23		$	70,000	.....	2015

102.24    Subd. 13. School-age care revenue. For extended day aid under Minnesota
102.25Statutes, section 124D.22:

102.26		$	1,000	.....	2014
102.27		$	1,000	.....	2015

102.28The 2014 appropriation includes $0 for 2013 and $1,000 for 2014.
102.29The 2015 appropriation includes $0 for 2014 and $1,000 for 2015.
102.30    Subd. 14. Adult basic education aid. For adult basic education aid under
102.31Minnesota Statutes, section 124D.531:

103.1		$	46,978,000	.....	2014
103.2		$	48,816,000	.....	2015

103.3The 2014 appropriation includes $6,284,000 for 2013 and $40,694,000 for 2014.
103.4The 2015 appropriation includes $6,901,000 for 2014 and $41,915,000 for 2015.
103.5    Subd. 15. GED tests. For payment of 60 percent of the costs of GED tests under
103.6Minnesota Statutes, section 124D.55:

103.7		$	125,000	.....	2014
103.8		$	125,000	.....	2015

103.9ARTICLE 9

103.10STATE AGENCIES

103.11    Section 1. DEPARTMENT OF EDUCATION.
103.12    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
103.13indicated in this section are appropriated from the general fund to the Department of
103.14Education for the fiscal years designated.
103.15    Subd. 2. Department. (a) For the Department of Education:

103.16		$	22,283,000	.....	2014
103.17		$	19,996,000	.....	2015

103.18Any balance in the first year does not cancel but is available in the second year.
103.19(b) $260,000 each year is for the Minnesota Children's Museum.
103.20(c) $41,000 each year is for the Minnesota Academy of Science.
103.21(d) $50,000 each year is for the Duluth Children's Museum.
103.22(e) $618,000 each year is for the Board of Teaching. Any balance in the first year
103.23does not cancel but is available in the second year.
103.24(f) $167,000 each year is for the Board of School Administrators. Any balance in
103.25the first year does not cancel but is available in the second year.
103.26(g) $1,500,000 in fiscal year 2014 and $263,000 in fiscal year 2015 only is for
103.27transfers to the Office of Enterprise Technology to develop model Individuals with
103.28Disabilities Education Act (IDEA) online-available paperwork for special needs students.
103.29Any ongoing information technology support or costs for online IDEA paperwork will be
103.30incorporated into the service-level agreement and will be paid to the Office of Enterprise
103.31Technology by the department under the rates and mechanisms specified in that agreement.
103.32Any balance in the first year does not cancel but is available in the second year.
104.1(h) $250,000 each year is for the School Finance Division to enhance financial
104.2data analysis.
104.3(i) $300,000 in fiscal year 2014 only is for a grant to the Northeast Service
104.4Cooperative for a pilot project related to energy conservation programs in Northeast
104.5Service Cooperative member school districts.
104.6(j) $500,000 each year is to assist school districts in implementing an antibullying
104.7policy.
104.8(k) $125,000 each year is appropriated to the Minnesota Humanities Commission
104.9for civics education.
104.10(l) $35,000 each year is for a transfer to the governor's office.
104.11(m) $750,000 in fiscal year 2014 only is for departmental costs associated with
104.12teacher development and evaluation.
104.13(n) The expenditures of federal grants and aids as shown in the biennial budget
104.14document and its supplements are approved and appropriated and shall be spent as
104.15indicated.
104.16(o) None of the amounts appropriated under this subdivision may be used for
104.17Minnesota's Washington, D.C. office.
104.18(p) The base in fiscal year 2016 and later is $19,733,000.
104.19    Subd. 3. Board of Teaching; licensure by portfolio. For the Board of Teaching
104.20for licensure by portfolio:

104.21		$	30,000	.....	2014
104.22		$	30,000	.....	2015

104.23This appropriation is from the educator licensure portfolio account of the special
104.24revenue fund.

104.25    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
104.26The sums indicated in this section are appropriated from the general fund to the
104.27Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

104.28		$	11,591,000	.....	2014
104.29		$	11,591,000	.....	2015

104.30Any balance in the first year does not cancel but is available in the second year.

104.31    Sec. 3. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
104.32The sums in this section are appropriated from the general fund to the Perpich
104.33Center for Arts Education for the fiscal years designated:

105.1		$	7,478,000	.....	2014
105.2		$	7,478,000	.....	2015

105.3$750,000 each year is to develop an arts curriculum.
105.4Any balance in the first year does not cancel but is available in the second year.

105.5ARTICLE 10

105.6FORECAST ADJUSTMENTS

105.7A. GENERAL EDUCATION

105.8    Section 1. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
105.92, as amended by Laws 2012, chapter 292, article 2, section 1, is amended to read:
105.10    Subd. 2. General education aid. For general education aid under Minnesota
105.11Statutes, section 126C.13, subdivision 4:

105.12		$	5,379,068,000	.....	2012
105.13 105.14		$	5,844,995,000 7,153,701,000	.....	2013

105.15The 2012 appropriation includes $1,660,922,000 for 2011 and $3,718,146,000
105.16for 2012.
105.17The 2013 appropriation includes $2,038,568,000 for 2012 and $3,806,427,000
105.18 $5,115,133,000 for 2013.

105.19    Sec. 2. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
105.203, as amended by Laws 2012, chapter 292, article 2, section 2, is amended to read:
105.21    Subd. 3. Enrollment options transportation. For transportation of pupils attending
105.22postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
105.23of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

105.24		$	42,000	.....	2012
105.25 105.26		$	46,000 40,000	.....	2013

105.27    Sec. 3. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
105.284, as amended by Laws 2012, chapter 292, article 2, section 3, is amended to read:
105.29    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
105.30127A.49 :

105.31		$	1,406,000	.....	2012
105.32 105.33		$	2,072,000 2,503,000	.....	2013

106.1The 2012 appropriation includes $346,000 for 2011 and $1,060,000 for 2012.
106.2The 2013 appropriation includes $588,000 for 2012 and $1,484,000 $1,915,000
106.3 for 2013.

106.4    Sec. 4. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
106.55, as amended by Laws 2012, chapter 292, article 2, section 4, is amended to read:
106.6    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
106.7Statutes, section 123A.485:

106.8		$	145,000	.....	2012
106.9 106.10		$	193,000 260,000	.....	2013

106.11The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.
106.12The 2013 appropriation includes $0 for 2012 and $193,000 $260,000 for 2013.

106.13    Sec. 5. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
106.146, as amended by Laws 2012, chapter 292, article 2, section 5, is amended to read:
106.15    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
106.16Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

106.17		$	14,302,000	.....	2012
106.18 106.19		$	15,594,000 18,969,000	.....	2013

106.20The 2012 appropriation includes $4,161,000 for 2011 and $10,141,000 for 2012.
106.21The 2013 appropriation includes $5,629,000 for 2012 and $9,965,000 $13,340,000
106.22 for 2013.

106.23    Sec. 6. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
106.247, as amended by Laws 2012, chapter 292, article 2, section 6, is amended to read:
106.25    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
106.26under Minnesota Statutes, section 123B.92, subdivision 9:

106.27		$	17,757,000	.....	2012
106.28 106.29		$	19,036,000 23,648,000	.....	2013

106.30The 2012 appropriation includes $5,700,000 for 2011 and $12,057,000 for 2012.
106.31The 2013 appropriation includes $6,694,000 for 2012 and $12,342,000 $16,954,000
106.32 for 2013.

107.1    Sec. 7. Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
107.210, as amended by Laws 2012, chapter 292, article 2, section 7, is amended to read:
107.3    Subd. 10. Compensatory pilot project formula aid. For grants for compensatory
107.4pilot project formula aid as calculated under this subdivision:

107.5 107.6

$

9,368,000 13,403,000

.....

2013

107.7For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20
107.8largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of
107.9compensatory pupil units, minus the amount of compensatory education revenue received
107.10by the district under Minnesota Statutes, section 126C.10, subdivision 3.
107.11The 2013 appropriation includes $0 for 2012 and $9,368,000 $13,403,000 for 2013.
107.12This is a onetime appropriation.

107.13B. EDUCATION EXCELLENCE

107.14    Sec. 8. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
107.152, as amended by Laws 2012, chapter 292, article 2, section 8, is amended to read:
107.16    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
107.17Statutes, section 124D.11, subdivision 4:

107.18		$	42,806,000	.....	2012
107.19 107.20		$	48,978,000 60,067,000	.....	2013

107.21The 2012 appropriation includes $12,642,000 for 2011 and $30,164,000 for 2012.
107.22The 2013 appropriation includes $16,746,000 for 2012 and $32,232,000 $43,321,000
107.23 for 2013.

107.24    Sec. 9. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
107.254, as amended by Laws 2012, chapter 292, article 2, section 10, is amended to read:
107.26    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
107.27124D.86 :

107.28		$	61,181,000	.....	2012
107.29 107.30		$	65,498,000 79,329,000	.....	2013

107.31The 2012 appropriation includes $19,272,000 for 2011 and $41,909,000 for 2012.
107.32The 2013 appropriation includes $23,268,000 for 2012 and $42,230,000 $56,061,000
107.33 for 2013.
108.1The base for the final payment in fiscal year 2014 for fiscal year 2013 is $31,668,000
108.2 $17,197,000.

108.3    Sec. 10. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
108.45, as amended by Laws 2012, chapter 292, article 2, section 11, is amended to read:
108.5    Subd. 5. Literacy incentive aid. For literacy incentive aid under Minnesota
108.6Statutes, section 124D.98:

108.7 108.8

$

31,241,000 41,978,000

.....

2013

108.9The 2013 appropriation includes $0 for 2012 and $31,241,000 $41,978,000 for 2013.

108.10    Sec. 11. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
108.116, as amended by Laws 2012, chapter 292, article 2, section 12, is amended to read:
108.12    Subd. 6. Interdistrict desegregation or integration transportation grants. For
108.13interdistrict desegregation or integration transportation grants under Minnesota Statutes,
108.14section 124D.87:

108.15		$	13,262,000	.....	2012
108.16 108.17		$	13,966,000 13,260,000	.....	2013

108.18    Sec. 12. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
108.197, as amended by Laws 2012, chapter 292, article 2, section 13, is amended to read:
108.20    Subd. 7. Success for the future. For American Indian success for the future grants
108.21under Minnesota Statutes, section 124D.81:

108.22		$	2,013,000	.....	2012
108.23 108.24		$	2,137,000 2,609,000	.....	2013

108.25The 2012 appropriation includes $638,000 for 2011 and $1,375,000 for 2012.
108.26The 2013 appropriation includes $762,000 for 2012 and $1,375,000 $1,847,000
108.27 for 2013.

108.28    Sec. 13. Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
108.299, as amended by Laws 2012, chapter 292, article 2, section 14, is amended to read:
108.30    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
108.31Statutes, section 124D.83:

109.1		$	1,791,000	.....	2012
109.2 109.3		$	1,969,000 2,353,000	.....	2013

109.4The 2012 appropriation includes $600,000 for 2011 and $1,191,000 for 2012.
109.5The 2013 appropriation includes $660,000 for 2012 and $1,309,000 $1,693,000
109.6 for 2013.

109.7C. SPECIAL EDUCATION

109.8    Sec. 14. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
109.92, as amended by Laws 2012, chapter 292, article 2, section 15, is amended to read:
109.10    Subd. 2. Special education; regular. For special education aid under Minnesota
109.11Statutes, section 125A.75:

109.12		$	767,845,000	.....	2012
109.13 109.14		$	856,386,000 1,046,423,000	.....	2013

109.15The 2012 appropriation includes $235,975,000 for 2011 and $531,870,000 for 2012.
109.16The 2013 appropriation includes $295,299,000 for 2012 and $561,087,000
109.17 $751,124,000 for 2013.

109.18    Sec. 15. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
109.193, as amended by Laws 2012, chapter 292, article 2, section 16, is amended to read:
109.20    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
109.21section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
109.22within the district boundaries for whom no district of residence can be determined:

109.23		$	1,508,000	.....	2012
109.24 109.25		$	1,593,000 1,570,000	.....	2013

109.26If the appropriation for either year is insufficient, the appropriation for the other
109.27year is available.

109.28    Sec. 16. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
109.294, as amended by Laws 2012, chapter 292, article 2, section 17, is amended to read:
109.30    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
109.31services under Minnesota Statutes, section 125A.75, subdivision 1:

109.32		$	314,000	.....	2012
109.33 109.34		$	321,000 407,000	.....	2013

110.1The 2012 appropriation includes $107,000 for 2011 and $207,000 for 2012.
110.2The 2013 appropriation includes $114,000 for 2012 and $207,000 $293,000 for 2013.

110.3    Sec. 17. Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
110.45, as amended by Laws 2012, chapter 292, article 2, section 18, is amended to read:
110.5    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
110.6Statutes, section 125A.79, subdivision 7:

110.7		$	107,557,000	.....	2012
110.8 110.9		$	115,269,000 134,121,000	.....	2013

110.10The 2012 appropriation includes $53,449,000 for 2011 and $54,108,000 for 2012.
110.11The 2013 appropriation includes $59,607,000 for 2012 and $55,662,000 $74,514,000
110.12 for 2013.

110.13D. FACILITIES AND TECHNOLOGY

110.14    Sec. 18. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
110.152, as amended by Laws 2012, chapter 292, article 2, section 19, is amended to read:
110.16    Subd. 2. Health and safety revenue. For health and safety aid according to
110.17Minnesota Statutes, section 123B.57, subdivision 5:

110.18		$	98,000	.....	2012
110.19 110.20		$	157,000 200,000	.....	2013

110.21The 2012 appropriation includes $39,000 for 2011 and $59,000 for 2012.
110.22The 2013 appropriation includes $32,000 for 2012 and $125,000 $168,000 for 2013.

110.23    Sec. 19. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
110.243, as amended by Laws 2012, chapter 292, article 2, section 20, is amended to read:
110.25    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
110.26Statutes, section 123B.53, subdivision 6:

110.27		$	11,625,000	.....	2012
110.28 110.29		$	16,342,000 20,237,000	.....	2013

110.30The 2012 appropriation includes $2,604,000 for 2011 and $9,021,000 for 2012.
110.31The 2013 appropriation includes $5,008,000 for 2012 and $11,334,000 $15,229,000
110.32 for 2013.

111.1    Sec. 20. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
111.24, as amended by Laws 2012, chapter 292, article 2, section 21, is amended to read:
111.3    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
111.4according to Minnesota Statutes, section 123B.59, subdivision 1:

111.5		$	18,187,000	.....	2012
111.6 111.7		$	19,287,000 23,549,000	.....	2013

111.8The 2012 appropriation includes $5,785,000 for 2011 and $12,402,000 for 2012.
111.9The 2013 appropriation includes $6,885,000 for 2012 and $12,402,000 $16,664,000
111.10 for 2013.

111.11    Sec. 21. Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
111.126, as amended by Laws 2012, chapter 292, article 2, section 22, is amended to read:
111.13    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
111.14Minnesota Statutes, section 123B.591, subdivision 4:

111.15		$	2,331,000	.....	2012
111.16 111.17		$	3,141,000 3,817,000	.....	2013

111.18The 2012 appropriation includes $676,000 for 2011 and $1,655,000 for 2012.
111.19The 2013 appropriation includes $918,000 for 2012 and $2,223,000 $2,899,000
111.20 for 2013.

111.21E. NUTRITION AND LIBRARIES

111.22    Sec. 22. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
111.232, as amended by Laws 2012, chapter 292, article 2, section 23, is amended to read:
111.24    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
111.25section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

111.26		$	12,285,000	.....	2012
111.27 111.28		$	12,524,000 12,266,000	.....	2013

111.29    Sec. 23. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
111.303, as amended by Laws 2012, chapter 292, article 2, section 24, is amended to read:
111.31    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
111.32Statutes, section 124D.1158:

112.1		$	5,247,000	.....	2012
112.2 112.3		$	5,560,000 5,417,000	.....	2013

112.4    Sec. 24. Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
112.54, as amended by Laws 2012, chapter 292, article 2, section 25, is amended to read:
112.6    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
112.7section 124D.118:

112.8		$	1,025,000	.....	2012
112.9 112.10		$	1,035,000 1,019,000	.....	2013

112.11    Sec. 25. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
112.122, as amended by Laws 2012, chapter 292, article 2, section 26, is amended to read:
112.13    Subd. 2. Basic system support. For basic system support grants under Minnesota
112.14Statutes, section 134.355:

112.15		$	12,797,000	.....	2012
112.16 112.17		$	13,570,000 16,569,000	.....	2013

112.18The 2012 appropriation includes $4,071,000 for 2011 and $8,726,000 for 2012.
112.19The 2013 appropriation includes $4,844,000 for 2012 and $8,726,000 $11,725,000
112.20 for 2013.

112.21    Sec. 26. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
112.223, as amended by Laws 2012, chapter 292, article 2, section 27, is amended to read:
112.23    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
112.24Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

112.25		$	1,226,000	.....	2012
112.26 112.27		$	1,300,000 1,588,000	.....	2013

112.28The 2012 appropriation includes $390,000 for 2011 and $836,000 for 2012.
112.29The 2013 appropriation includes $464,000 for 2012 and $836,000 $1,124,000 for
112.302013.

112.31    Sec. 27. Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
112.325, as amended by Laws 2012, chapter 292, article 2, section 28, is amended to read:
113.1    Subd. 5. Regional library telecommunications aid. For regional library
113.2telecommunications aid under Minnesota Statutes, section 134.355:

113.3		$	2,169,000	.....	2012
113.4 113.5		$	2,300,000 2,809,000	.....	2013

113.6The 2012 appropriation includes $690,000 for 2011 and $1,479,000 for 2012.
113.7The 2013 appropriation includes $821,000 for 2012 and $1,479,000 $1,988,000
113.8 for 2013.

113.9F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND
113.10LIFELONG LEARNING

113.11    Sec. 28. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
113.122, as amended by Laws 2012, chapter 292, article 2, section 29, is amended to read:
113.13    Subd. 2. School readiness. For revenue for school readiness programs under
113.14Minnesota Statutes, sections 124D.15 and 124D.16:

113.15		$	9,444,000	.....	2012
113.16 113.17		$	10,095,000 12,326,000	.....	2013

113.18The 2012 appropriation includes $2,952,000 for 2011 and $6,492,000 for 2012.
113.19The 2013 appropriation includes $3,603,000 for 2012 and $6,492,000 $8,723,000
113.20 for 2013.

113.21    Sec. 29. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
113.223, as amended by Laws 2012, chapter 292, article 2, section 30, is amended to read:
113.23    Subd. 3. Early childhood family education aid. For early childhood family
113.24education aid under Minnesota Statutes, section 124D.135:

113.25		$	21,099,000	.....	2012
113.26 113.27		$	22,358,000 27,197,000	.....	2013

113.28The 2012 appropriation includes $6,542,000 for 2011 and $14,557,000 for 2012.
113.29The 2013 appropriation includes $8,082,000 for 2012 and $14,276,000 $19,115,000
113.30 for 2013.

113.31    Sec. 30. Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
113.324, as amended by Laws 2012, chapter 292, article 2, section 31, is amended to read:
114.1    Subd. 4. Health and developmental screening aid. For health and developmental
114.2screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

114.3		$	3,359,000	.....	2012
114.4 114.5		$	3,543,000 4,287,000	.....	2013

114.6The 2012 appropriation includes $1,066,000 for 2011 and $2,293,000 for 2012.
114.7The 2013 appropriation includes $1,273,000 for 2012 and $2,270,000 $3,014,000
114.8 for 2013.

114.9    Sec. 31. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision
114.102, as amended by Laws 2012, chapter 292, article 2, section 32, is amended to read:
114.11    Subd. 2. Community education aid. For community education aid under
114.12Minnesota Statutes, section 124D.20:

114.13		$	442,000	.....	2012
114.14 114.15		$	746,000 926,000	.....	2013

114.16The 2012 appropriation includes $134,000 for 2011 and $308,000 for 2012.
114.17The 2013 appropriation includes $170,000 for 2012 and $576,000 $756,000 for 2013.

114.18    Sec. 32. Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision
114.193, as amended by Laws 2012, chapter 292, article 2, section 33, is amended to read:
114.20    Subd. 3. Adults with disabilities program aid. For adults with disabilities
114.21programs under Minnesota Statutes, section 124D.56:

114.22		$	654,000	.....	2012
114.23 114.24		$	710,000 867,000	.....	2013

114.25The 2012 appropriation includes $197,000 for 2011 and $457,000 for 2012.
114.26The 2013 appropriation includes $253,000 for 2012 and $457,000 $614,000 for 2013.

114.27    Sec. 33. Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision
114.282, as amended by Laws 2012, chapter 292, article 2, section 34, is amended to read:
114.29    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
114.30Statutes, section 124D.531:

114.31		$	42,526,000	.....	2012
114.32 114.33		$	45,901,000 56,113,000	.....	2013

114.34The 2012 appropriation includes $13,364,000 for 2011 and $29,162,000 for 2012.
115.1The 2013 appropriation includes $16,190,000 for 2012 and $29,711,000 $39,923,000
115.2 for 2013.