SF 618

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:08am

A bill for an act
relating to education; establishing the learn-to-read grant program; providing for
general education access grants; repealing compensatory revenue; appropriating
money; amending Minnesota Statutes 2010, sections 124D.68, subdivision
9; 124D.69, subdivision 1; 125A.11, subdivision 1; 125A.50, subdivision 1;
125A.65, subdivision 3; 126C.10, subdivision 4; 127A.47, subdivision 7;
128B.03, subdivision 3a; proposing coding for new law in Minnesota Statutes,
chapter 124D; repealing Minnesota Statutes 2010, sections 126C.05, subdivision
3; 126C.10, subdivision 3; 126C.15, subdivisions 2, 3.

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

Section 1.

new text begin [124D.655] LEARN-TO-READ GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program is established to assist school
districts and charter schools in teaching all children how to read by the end of third grade.
A school district or charter school must use grant proceeds to reach a goal of having 90
percent of its students being able to read by the end of third grade.
new text end

new text begin Subd. 2. new text end

new text begin Proficiency. new text end

new text begin For the purposes of this section, proficiency means meeting
or exceeding proficiency on the reading portion of the Minnesota Comprehensive
Assessment (MCA) II.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin The commissioner shall award grants to school districts
and charter schools to assist them in reaching the goal of having 90 percent of their third
grade students proficient on the third grade Minnesota Comprehensive Assessment II. A
district or charter school is eligible to receive a grant if less than 90 percent of its third
grade students met or exceeded proficiency on Minnesota Comprehensive Assessment
II in reading in the 2010-2011 school year and later. In order to participate in the
grant program, a district or charter school must submit a proposal to the commissioner
including, but not limited to, a proposed budget and annual proficiency goals for its third
grade students over a three-year period, reaching the 90 percent goal by the end of the
third year. The commissioner shall prescribe the form and manner of application for
grants. The commissioner shall determine each grant amount based on the appropriation
available for the grant program.
new text end

new text begin Subd. 4. new text end

new text begin Participating school districts and charter schools. new text end

new text begin Notwithstanding
section 120B.021, a district or charter school receiving a grant award under this
section is not required to provide instruction in the subject areas required for statewide
accountability. The district or charter school is only required to teach reading for the
duration of the grant. The full amount of the grant must be used for reading instruction
in kindergarten through grade 3. A school district or charter school board can choose to
provide instruction in other subject areas.
new text end

new text begin Subd. 5. new text end

new text begin Duration of grant. new text end

new text begin (a) The commissioner may award one-year grants to
school districts or charter schools. The grant award may be renewed one year at a time for
a maximum of three years. For purposes of this subdivision, "base percentage" means
the percentage of students in a district or charter school who met or exceeded proficiency
on the third grade Minnesota Comprehensive Assessment II in the year preceding the
first grant year.
new text end

new text begin (b) The commissioner shall renew a grant in the second year if, in the first year of
the grant, the school district or charter school increased the number of third grade students
meeting and exceeding proficiency by at least one-third of the difference between 90
percent and the district's or charter school's base percentage.
new text end

new text begin (c) The commissioner shall renew a grant in the third year if, in the second year of
the grant, the school district or charter school increased the number of third grade students
meeting and exceeding proficiency by at least two-thirds of the difference between 90
percent and the district's or charter school's base percentage.
new text end

new text begin (d) In a district's fourth consecutive year, if the third grade reading proficiency does
not exceed 90 percent, then the amount of the grant that the district received in the third
year must be distributed among the district's kindergarten through sixth grade students for
use as general education access grants under section 124D.6551.
new text end

new text begin (e) If, at any time in the renewal process, the district's third grade students attain 90
percent proficiency, the district is no longer eligible for the grant.
new text end

Sec. 2.

new text begin [124D.6551] GENERAL EDUCATION ACCESS GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Enrollment; application. new text end

new text begin (a) For purposes of this section, a student
may enroll in and be eligible to receive an access grant for the cost of attendance at a
Minnesota elementary nonpublic school, other than a home school, that is providing
instruction in compliance with section 120A.22, if:
new text end

new text begin (1) the student did not test as proficient, as defined in section 124D.655, subdivision
2, in reading at the third grade level using the state administered exam;
new text end

new text begin (2) the student was enrolled in a school district that received a learn-to-read grant in
the previous fiscal year under section 124D.655;
new text end

new text begin (3) the student is eligible for free or reduced-price lunch; and
new text end

new text begin (4) the student's application for an access grant is approved by the commissioner.
new text end

new text begin (b) Applications that are properly submitted in the form and manner prescribed
by the commissioner shall be acted on by May 1 for the following school year. The
commissioner shall notify an applicant in writing of the status of the application.
Additional applications may be accepted and approved following May 1.
new text end

new text begin Subd. 2. new text end

new text begin Access grant payments. new text end

new text begin (a) On a regular basis, as determined by the
commissioner, but at least quarterly, access grant payments shall be made to the parent or
guardian of an approved student applicant in the form of a check that must be restrictively
endorsed by the parent or guardian for the school providing the instruction. Access
grant payments are considered financial assistance solely to the parent or guardian who
is primarily responsible for ensuring that the child acquires knowledge and skills under
section 120A.22.
new text end

new text begin (b) The total amount of the access grant for a school year shall not exceed the
tuition and fees charged at the school where the student is enrolled and attending, or the
amount of the learn-to-read grant under section 124D.655 in that fiscal year divided by the
number of eligible students under subdivision 1, paragraph (a), whichever is less. The
commissioner shall only recognize tuition and fees that are equal to what comparable
students are charged who do not receive access grants.
new text end

new text begin (c) Prior to distribution of payments, the commissioner must require of the parent
or guardian, and must receive in the form and manner prescribed by the commissioner,
information necessary to validate the cost of attendance and enrollment status of the
student. The commissioner shall prorate the access grant if the student is enrolled for
only part of the school year.
new text end

new text begin (d) The commissioner must withhold access grant payments while it is reasonably
believed that false information concerning the cost of attendance and enrollment status
of the student has been intentionally submitted by an involved party. The commissioner
shall audit and verify submitted information according to program integrity guidelines
adopted by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Conference. new text end

new text begin The commissioner shall offer an informal conference to
applicants and recipients adversely affected by an agency action to attempt to resolve
the dispute.
new text end

new text begin Subd. 4. new text end

new text begin Duration. new text end

new text begin A student with an approved application must continue to receive
the access grant until the student withdraws from the nonpublic school or the student
completes sixth grade, whichever occurs first.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2015 and
later.
new text end

Sec. 3.

Minnesota Statutes 2010, section 124D.68, subdivision 9, is amended to read:

Subd. 9.

Enrollment verification.

(a) For a pupil attending an eligible program
full time under subdivision 3, paragraph (d), the department must pay 90 percent of
the district's average general education revenue less basic skills revenue to the eligible
program and ten percent of the district's average general education revenue less basic
skills revenue to the contracting district within 30 days after the eligible program
verifies enrollment using the form provided by the department. For a pupil attending an
eligible program part time, revenue deleted text begin , excluding compensatory revenue, deleted text end shall be reduced
proportionately, according to the amount of time the pupil attends the program, and the
payments to the eligible program and the contracting district shall be reduced accordingly.
A pupil for whom payment is made according to this section may not be counted by any
district for any purpose other than computation of general education revenue. If payment
is made for a pupil under this subdivision, a district shall not reimburse a program
under section 124D.69 for the same pupil. The basic skills revenue generated by pupils
attending the eligible program according to section 126C.10, subdivision 4, shall be paid
to the eligible program.

(b) The department must pay up to 100 percent of the revenue to the eligible program
if there is an agreement to that effect between the school district and the eligible program.

(c) Notwithstanding paragraphs (a) and (b), for an eligible program that provides
chemical treatment services to students, the department must pay 100 percent of the
revenue to the eligible program.

Sec. 4.

Minnesota Statutes 2010, section 124D.69, subdivision 1, is amended to read:

Subdivision 1.

Aid.

If a pupil enrolls in an alternative program, eligible under
section 124D.68, subdivision 3, paragraph (d), or subdivision 4, operated by a private
organization that has contracted with a school district to provide educational services for
eligible pupils under section 124D.68, subdivision 2, the district contracting with the
private organization must reimburse the provider an amount equal to the sum of (1) at
least 95 percent of the district's average general education less basic skills revenue per
pupil unit times the number of pupil units for pupils attending the program, and (2) the
amount of basic skills revenue generated by pupils attending the program according to
section 126C.10, subdivision 4. For a pupil attending the program part time, the revenue
paid to the program deleted text begin , excluding compensatory revenue, deleted text end must be reduced proportionately,
according to the amount of time the pupil attends the program, and revenue paid to the
district shall be reduced accordingly. Pupils for whom a district provides reimbursement
may not be counted by the district for any purpose other than computation of general
education revenue. If payment is made to a district or program for a pupil under this
section, the department must not make a payment for the same pupil under section
124D.68, subdivision 9. Notwithstanding sections 125A.15, 125A.51, and 125A.515,
general education revenue for a student who receives educational services under this
section shall be paid according to this section.

Sec. 5.

Minnesota Statutes 2010, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum equalization aid attributable to a
pupil must be calculated using the resident district's average general education revenue
and referendum equalization aid per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service costs
for facilities used primarily for special education, plus (2) the amount of general education
revenue and referendum equalization aid attributable to that pupil, calculated using the
resident district's average general education revenue and referendum equalization aid
per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
secondary sparsity revenue, minus (3) the amount of special education aid for children
with a disability received on behalf of that child, minus (4) if the pupil receives special
instruction and services outside the regular classroom for more than 60 percent of the
school day, the amount of general education revenue and referendum equalization aid,
excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives special instruction
and services outside of the regular classroom, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
and the serving district's basic skills revenue, elementary sparsity revenue and secondary
sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
served by a cooperative unit without a fiscal agent school district, the general education
revenue and referendum equalization aid attributable to a pupil must be calculated using
the resident district's average general education revenue and referendum equalization aid
excluding deleted text begin compensatory revenue, deleted text end elementary sparsity revenue deleted text begin , deleted text end and secondary sparsity
revenue. Special education aid paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the amount of the reduction in
the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
expenditures on the resident school district's books of account under sections 123B.75
and 123B.76. If the resident district's special education aid is insufficient to make the full
adjustment, the remaining adjustment shall be made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, a site approved under section 125A.515,
an intermediate district, a special education cooperative, or a school district that served
as the applicant agency for a group of school districts for federal special education aids
for fiscal year 2006 may apply to the commissioner for authority to charge the resident
district an additional amount to recover any remaining unreimbursed costs of serving
pupils with a disability. The application must include a description of the costs and the
calculations used to determine the unreimbursed portion to be charged to the resident
district. Amounts approved by the commissioner under this paragraph must be included
in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum equalization aid" means the sum
of the general education revenue according to section 126C.10, subdivision 1, excluding
alternative teacher compensation revenue, plus the referendum equalization aid according
to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
7, paragraphs (a) to (c).

Sec. 6.

Minnesota Statutes 2010, section 125A.50, subdivision 1, is amended to read:

Subdivision 1.

Commissioner approval.

The commissioner may approve
applications from districts initiating or significantly changing a program to provide
prevention services as an alternative to special education deleted text begin and other compensatory deleted text end
programs. A district with an approved program may provide instruction and services in a
regular education classroom, or an area learning center, to eligible pupils. Pupils eligible
to participate in the program are pupils who need additional academic or behavioral
support to succeed in the general education environment and who may eventually qualify
for special education instruction or related services under sections 125A.03 to 125A.24
and 125A.65 if the intervention services authorized by this section were unavailable.
Pupils may be provided services during extended school days and throughout the entire
year and through the assurance of mastery program under sections 125A.03 to 125A.24
and 125A.65.

Sec. 7.

Minnesota Statutes 2010, section 125A.65, subdivision 3, is amended to read:

Subd. 3.

Educational program; tuition.

(a) When it is determined pursuant to
section 125A.69, subdivision 1 or 2, that the child is entitled to attend either school,
the board of the Minnesota State Academies must provide the appropriate educational
program for the child.

(b) For fiscal year 2006, the board of the Minnesota State Academies must make a
tuition charge to the child's district of residence for the cost of providing the program.
The amount of tuition charged must not exceed deleted text begin the sum of (1) deleted text end the general education
revenue formula allowance times the pupil unit weighting factor pursuant to section
126C.05 for that child, for the amount of time the child is in the program deleted text begin , plus (2), if
the child was enrolled at the Minnesota State Academies on October 1 of the previous
fiscal year, the compensatory education revenue attributable to that child under section
126C.10, subdivision 3 deleted text end . The district of the child's residence must pay the tuition and
may claim general education aid for the child. Tuition received by the board of the
Minnesota State Academies, except for tuition for compensatory education revenue under
this paragraph and tuition received under subdivision 4, must be deposited in the state
treasury as provided in subdivision 8.

(c) For fiscal year 2007 and later, the district of the child's residence shall
claim general education revenue for the child, except as provided in this paragraph.
Notwithstanding section 127A.47, subdivision 1, an amount equal to the general education
revenue formula allowance times the pupil unit weighting factor pursuant to section
126C.05 for that child for the amount of time the child is in the program, as adjusted
according to subdivision 8, paragraph (d), must be paid to the Minnesota State Academies.
Notwithstanding section 126C.15, subdivision 2, paragraph (d), the compensatory
education revenue under section 126C.10, subdivision 3, attributable to children enrolled
at the Minnesota State Academies on October 1 of the previous fiscal year must be paid
to the Minnesota State Academies. General education aid paid to the Minnesota State
Academies under this paragraph must be credited to their general operation account.
Other general education aid attributable to the child must be paid to the district of the
child's residence.

Sec. 8.

Minnesota Statutes 2010, section 126C.10, subdivision 4, is amended to read:

Subd. 4.

Basic skills revenue.

A school district's basic skills revenue equals the
sum of deleted text begin :
deleted text end

deleted text begin (1) compensatory revenue under subdivision 3; plus
deleted text end

deleted text begin (2) deleted text end limited English proficiency revenue under section 124D.65, subdivision 5 deleted text begin ; plus
deleted text end new text begin new text end

deleted text begin (3) deleted text end new text begin , and new text end $250 times the limited English proficiency pupil units under section
126C.05, subdivision 17.

Sec. 9.

Minnesota Statutes 2010, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments
must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the greater of (1) the referendum
equalization aid attributable to the pupil in the nonresident district; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2)
if the pupil receives special instruction and services outside the regular classroom for
more than 60 percent of the school day, the amount of general education revenue and
referendum aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum equalization
aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum equalization aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction
and services, including special transportation and unreimbursed building lease and debt
service costs for facilities used primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
in a program listed in this subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day,
the amount of general education revenue and referendum equalization aid attributable
to that pupil for the portion of time the pupil receives special instruction and services
outside of the regular classroom, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, minus (3) special education aid attributable to that pupil, that is
received by the district providing special instruction and services. For purposes of this
paragraph, general education revenue and referendum equalization aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
district or cooperative providing special instruction and services for the pupil, or to the
fiscal agent district for a cooperative, must be increased by the amount of the reduction
in the aid paid to the resident district. If the resident district's special education aid is
insufficient to make the full adjustment, the remaining adjustment shall be made to other
state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
of the district average general education revenue per pupil unit minus an amount equal to
the product of the formula allowance according to section 126C.10, subdivision 2, times
.0485, calculated without deleted text begin compensatory revenue and deleted text end transportation sparsity revenue,
times the number of pupil units for pupils attending the area learning center.

Sec. 10.

Minnesota Statutes 2010, section 128B.03, subdivision 3a, is amended to read:

Subd. 3a.

State revenues.

The state shall pay to the council for the support of the
school all aids, revenues, and grants available to a school district as though the school
were a school district. The aids, revenues, and grants include, but are not limited to,
the following:

(1) general education revenue, as defined in section 126C.10, subdivision 1 deleted text begin ,
including at least compensatory revenue deleted text end ;

(2) transportation revenue;

(3) capital expenditure facilities revenue;

(4) capital expenditure equipment revenue;

(5) special education revenue;

(6) limited English proficiency aid;

(7) family connections aid;

(8) assurance of mastery revenue;

(9) school lunch revenue;

(10) school milk revenue;

(11) health and safety revenue;

(12) Indian language and culture grants;

(13) arts planning grants; and

(14) all other aids, revenues, or grants available to a school district.

If there are eligibility requirements for an aid, revenue, or grant, the requirements
shall be met in order to obtain the aid, revenue, or grant, except that a requirement to levy
shall be waived. To compute the amount of aid, revenue, or grant requiring a levy, the
amount of the levy shall be zero.

If a school district obtains revenue from the proceeds of a levy, the council shall be
deemed to have levied and the state shall pay aid equal to the amount that would have
been levied. The amount shall be approved by the commissioner of education.

The proceeds of any aid, grant, or revenue shall be used only as provided in the
applicable statute.

Sec. 11. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Learn-to-read grants. new text end

new text begin For learn-to-read grants to school districts and
charter schools under Minnesota Statutes, section 124D.655.
new text end

	new text begin $ new text end	new text begin 300,000,000 new text end	new text begin ..... new text end	new text begin 2012 new text end
	new text begin $ new text end	new text begin 300,000,000 new text end	new text begin ..... new text end	new text begin 2013 new text end

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

new text begin Minnesota Statutes 2010, sections 126C.05, subdivision 3; 126C.10, subdivision 3;
and 126C.15, subdivisions 2 and 3, new text end new text begin are repealed.
new text end