Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature
Office of the Revisor of Statutes

SF 453

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 04/25/2013 08:34am

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Pdf Rtf
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9
2.10 2.11
2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32
2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5
3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20
3.21 3.22
3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11
4.12 4.13
4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35
5.1 5.2
5.3 5.4 5.5 5.6 5.7
5.8
5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31
5.32 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26
6.27 6.28
6.29 6.30 6.31 6.32 6.33 6.34 6.35 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13
7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10
8.11 8.12
8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27
8.28 8.29
8.30 8.31 8.32 8.33 9.1 9.2 9.3 9.4
9.5 9.6
9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31
10.32
10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10
11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18
11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26
11.27 11.28 11.29 11.30 11.31 11.32 11.33 12.1
12.2 12.3
12.4 12.5 12.6 12.7 12.8 12.9
12.10 12.11
12.12 12.13 12.14 12.15 12.16
12.17 12.18
12.19 12.20 12.21 12.22 12.23
12.24 12.25 12.26 12.27 12.28 12.29 12.30 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22
13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5
14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22
14.23 14.24
14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33
15.1 15.2
15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12
15.13 15.14
15.15 15.16 15.17 15.18 15.19 15.20
15.21 15.22 15.23 15.24
15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32
16.1
16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14
16.15 16.16
16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10
17.11 17.12
17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20
17.21 17.22
17.23 17.24 17.25 17.26 17.27
17.28 17.29
17.30 17.31 17.32 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33
18.34 18.35
19.1 19.2 19.3 19.4 19.5
19.6 19.7
19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 20.1 20.2
20.3 20.4 20.5 20.6 20.7 20.8 20.9
20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19
20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28
20.29 20.30
20.31 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9
21.10
21.11 21.12 21.13 21.14 21.15 21.16 21.17
21.18
21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27
21.28 21.29
21.30 21.31 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8
22.9 22.10 22.11 22.12 22.13 22.14 22.15
22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26
22.27 22.28 22.29 22.30 22.31 22.32 22.33 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14
23.15 23.16 23.17 23.18
23.19 23.20
23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28
24.29 24.30
24.31 24.32 24.33 24.34 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 25.36 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 26.36 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 28.36 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 29.36 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 31.34 31.35 31.36 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22
32.23 32.24
32.25 32.26 32.27 32.28 32.29 32.30
32.31 32.32 33.1 33.2 33.3 33.4 33.5 33.6
33.7 33.8
33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 34.36 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11
35.12 35.13
35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14
36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12
37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31 38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20
39.21 39.22
39.23 39.24 39.25 39.26 39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 39.35
40.1 40.2
40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23
40.24 40.25
40.26 40.27 40.28 40.29 40.30 40.31 40.32 40.33 41.1 41.2
41.3
41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17
41.18
41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31
41.32 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32
43.33 44.1 44.2 44.3 44.4 44.5
44.6 44.7
44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8
45.9 45.10
45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18
46.19
46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13
47.14 47.15
47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 49.36 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18 51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11
53.12 53.13 53.14 53.15 53.16
53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22
55.23 55.24 55.25
55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18
56.19 56.20
56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28
56.29
56.30 56.31 56.32 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32
58.33
58.34 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8
59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17
59.18 59.19
59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33
60.1 60.2
60.3 60.4 60.5 60.6 60.7 60.8
60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28
60.29 60.30
60.31 60.32 60.33 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20
61.21 61.22
61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 62.1 62.2 62.3 62.4
62.5 62.6
62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14
62.15 62.16
62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27
62.28 62.29
62.30 62.31 62.32 63.1 63.2 63.3 63.4 63.5 63.6
63.7 63.8
63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 63.35
64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30
64.31
64.32 64.33 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 65.35 65.36 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 67.1 67.2 67.3 67.4 67.5
67.6
67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14
67.15 67.16
67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 68.36 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19
69.20
69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 69.34 69.35 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 70.36 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12
71.13 71.14
71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22
71.23 71.24
71.25 71.26
71.27 71.28
71.29 71.30
72.1 72.2
72.3 72.4
72.5 72.6
72.7 72.8
72.9 72.10
72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 74.33 74.34 74.35 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21
76.22 76.23
76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17
77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 78.1 78.2 78.3 78.4 78.5 78.6 78.7
78.8 78.9
78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26
78.27 78.28
78.29 78.30 78.31 78.32 79.1 79.2 79.3 79.4 79.5 79.6
79.7 79.8
79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 80.1 80.2 80.3 80.4 80.5 80.6
80.7
80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17
80.18 80.19
80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8
81.9
81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18
83.19
83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30
83.31 83.32 83.33 83.34 84.1 84.2 84.3 84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18
84.19
84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29
84.30
84.31 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 86.1 86.2 86.3 86.4
86.5 86.6 86.7
86.8 86.9
86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25
86.26 86.27
86.28 86.29 86.30 86.31 87.1 87.2 87.3 87.4
87.5 87.6
87.7 87.8 87.9 87.10 87.11 87.12 87.13
87.14 87.15
87.16 87.17 87.18 87.19 87.20
87.21 87.22
87.23 87.24 87.25 87.26 87.27
87.28 87.29
87.30 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9
88.10 88.11
88.12 88.13 88.14 88.15
88.16
88.17 88.18 88.19 88.20 88.21 88.22
88.23
88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28
89.29 89.30
89.31 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 90.36 91.1 91.2
91.3 91.4 91.5 91.6
91.7
91.8 91.9 91.10 91.11 91.12 91.13
91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23 91.24 91.25 91.26 91.27
91.28 91.29 91.30 91.31 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18
92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31 92.32 92.33 92.34 92.35 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13
93.14
93.15 93.16 93.17 93.18 93.19
93.20 93.21
93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 95.1 95.2 95.3 95.4
95.5 95.6 95.7
95.8 95.9 95.10 95.11
95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34 96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33 96.34 96.35 96.36 97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22 97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32 97.33 97.34 97.35 97.36 98.1 98.2 98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15
98.16 98.17 98.18 98.19 98.20 98.21 98.22 98.23 98.24 98.25 98.26 98.27 98.28 98.29 98.30 98.31 98.32 98.33
98.34 98.35
99.1 99.2 99.3 99.4 99.5
99.6 99.7 99.8 99.9 99.10 99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28 99.29 99.30 99.31 99.32 100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22 100.23 100.24 100.25 100.26 100.27 100.28 100.29 100.30 100.31 101.1 101.2 101.3 101.4 101.5 101.6 101.7 101.8 101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18 101.19 101.20 101.21 101.22 101.23 101.24 101.25 101.26
101.27 101.28
101.29 101.30 101.31 101.32 102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16 102.17 102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 102.31 102.32 102.33 102.34 102.35 102.36 103.1 103.2 103.3 103.4 103.5 103.6
103.7 103.8 103.9 103.10 103.11 103.12
103.13 103.14 103.15 103.16 103.17 103.18 103.19
103.20 103.21 103.22
103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 104.1 104.2
104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10
104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20
104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29
104.30 104.31 104.32 104.33 105.1 105.2 105.3 105.4 105.5 105.6
105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16
105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29
105.30 105.31 105.32 105.33 106.1 106.2 106.3 106.4 106.5 106.6
106.7 106.8 106.9 106.10 106.11 106.12 106.13 106.14 106.15 106.16 106.17 106.18
106.19 106.20 106.21 106.22 106.23 106.24 106.25
106.26 106.27 106.28 106.29 106.30 106.31 106.32 106.33
107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10
107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21
107.22 107.23 107.24 107.25 107.26 107.27 107.28 107.29 107.30 107.31
107.32 107.33 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8
108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17
108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26 108.27 108.28
108.29 108.30 108.31 108.32 109.1 109.2 109.3 109.4 109.5
109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15
109.16 109.17 109.18 109.19 109.20 109.21 109.22 109.23 109.24 109.25
109.26 109.27 109.28 109.29 109.30 109.31 109.32 109.33 110.1 110.2 110.3
110.4 110.5 110.6 110.7 110.8 110.9 110.10
110.11 110.12 110.13 110.14 110.15 110.16 110.17
110.18 110.19 110.20 110.21 110.22 110.23 110.24
110.25 110.26 110.27 110.28 110.29 110.30 110.31 110.32 111.1 111.2
111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12
111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24
111.25 111.26 111.27 111.28 111.29 111.30 111.31 111.32 112.1 112.2
112.3 112.4 112.5 112.6 112.7 112.8 112.9 112.10 112.11 112.12
112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22
112.23 112.24 112.25 112.26 112.27 112.28 112.29 112.30 112.31
112.32 112.33 113.1 113.2 113.3 113.4 113.5 113.6 113.7
113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17

A bill for an act
 relating to education finance; providing for early childhood through grade
12 education, including general education, student accountability, education
excellence, charter schools, special programs, facilities and technology, nutrition,
libraries and accounting, early childhood education, self-sufficiency and lifelong
learning, state agencies, and forecast adjustments; appropriating money;
requiring reports; amending Minnesota Statutes 2012, sections 13.319, by adding
a subdivision; 120A.20, subdivision 1; 120A.22, subdivisions 5, 8, 11; 120A.24,
subdivision 1; 120A.41; 120B.02; 120B.125; 120B.128; 120B.30, subdivisions
1, 1a; 120B.36, subdivision 1; 122A.415, by adding subdivisions; 123A.73,
subdivisions 3, 4, 5; 123B.41, subdivision 7; 123B.42, subdivision 3; 123B.53,
subdivision 5; 123B.54; 123B.57, subdivision 4; 123B.591, subdivisions 2,
3; 123B.75, subdivision 5; 123B.92, subdivision 9; 124D.02, subdivision 1;
124D.03, subdivision 12; 124D.10, subdivisions 14, 23a; 124D.11, subdivisions
1, 2, 4, 5; 124D.111, subdivision 1, by adding a subdivision; 124D.119;
124D.128, subdivision 2; 124D.42; 124D.4531; 124D.531, subdivision 1;
124D.65, subdivision 5; 125A.11, subdivision 1; 125A.76, subdivision 4;
125A.79, subdivisions 1, 8; 125B.26, subdivision 4; 126C.05, subdivisions 1, 5,
6, 15; 126C.10, subdivisions 1, 2, 2a, 2c, 3, 7, 8, 13, 13a, 13b, 17, 18, 24, 27, 29,
31, 32, 34, 35, 36, by adding subdivisions; 126C.12, subdivisions 1, 5; 126C.126;
126C.13, subdivisions 4, 5, by adding subdivisions; 126C.15, subdivision 1;
126C.17; 126C.20; 126C.40, subdivisions 1, 6; 126C.44; 127A.45, subdivision
2; 127A.47, subdivisions 7, 8; 127A.51; 128D.11, subdivision 3; 260C.007,
subdivision 19; Laws 2007, chapter 146, article 4, section 12; Laws 2011, First
Special Session chapter 11, article 1, section 36, subdivisions 2, as amended, 3,
as amended, 4, as amended, 5, as amended, 6, as amended, 7, as amended, 10, as
amended; article 2, sections 13; 14; 18; 19; 50, subdivisions 2, as amended, 4, as
amended, 5, as amended, 6, as amended, 7, as amended, 9, as amended; article
3, section 11, subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as
amended; article 4, section 10, subdivisions 2, as amended, 3, as amended, 4,
as amended, 6, as amended; article 5, section 12, subdivisions 2, as amended,
3, as amended, 4, as amended; article 6, section 2, subdivisions 2, as amended,
3, as amended, 5, as amended; article 7, section 2, subdivisions 2, as amended,
3, as amended, 4, as amended; article 8, section 2, subdivisions 2, as amended,
3, as amended; article 9, section 3, subdivision 2, as amended; proposing
coding for new law in Minnesota Statutes, chapters 124D; 126C; repealing
Minnesota Statutes 2012, sections 120B.08; 120B.09; 124D.454, subdivisions
10, 11; 125A.76, subdivision 7; 126C.10, subdivisions 13a, 13b, 25, 26, 28,
31a, 31b, 31c, 34, 35, 36; 126C.17, subdivision 13; 127A.50, subdivisions 1,
5; Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2,
3, 4, 5, 6, 7, 9, 10, 11, 12, 13, 14, 15, 16; 3501.0040; 3501.0050; 3501.0060;
3501.0090; 3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140;
3501.0150; 3501.0160; 3501.0170; 3501.0180; 3501.0200; 3501.0210;
3501.0220; 3501.0230; 3501.0240; 3501.0250; 3501.0270; 3501.0280, subparts
1, 2; 3501.0290; 3501.1000; 3501.1020; 3501.1030; 3501.1040; 3501.1050;
3501.1110; 3501.1120; 3501.1130; 3501.1140; 3501.1150; 3501.1160;
3501.1170; 3501.1180; 3501.1190.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2012, section 120A.20, subdivision 1, is amended to read:


Subdivision 1.

Age limitations; pupils.

(a) All schools supported in whole or
in part by state funds are public schools. Admission to a public school is free to any
person who: (1) resides within the district that operates the school; (2) is under 21 years of
age or who meets the requirements of paragraph (c); and (3) satisfies the minimum age
requirements imposed by this section. Notwithstanding the provisions of any law to the
contrary, the conduct of all students under 21 years of age attending a public secondary
school is governed by a single set of reasonable rules and regulations promulgated by the
school board.

(b) A person shall not be admitted to a public school (1) as a kindergarten pupil,
unless the pupil is at least five years of age on September 1 of the calendar year in which
the school year for which the pupil seeks admission commences; or (2) as a 1st grade
student, unless the pupil is at least six years of age on September 1 of the calendar year in
which the school year for which the pupil seeks admission commences or has completed
kindergarten; except that any school board may establish a policy for admission of
selected pupils at an earlier agenew text begin under section 124D.02new text end .

(c) A pupil who becomes age 21 after enrollment is eligible for continued free public
school enrollment until at least one of the following occurs: (1) the first September 1 after
the pupil's 21st birthday; (2) the pupil's completion of the graduation requirements; (3)
the pupil's withdrawal with no subsequent enrollment within 21 calendar days; or (4)
the end of the school year.

Sec. 2.

Minnesota Statutes 2012, section 120A.41, is amended to read:


120A.41 LENGTH OF SCHOOL YEAR; HOURS OF INSTRUCTION.

A school board's annual school calendar must include at least 425 hours of
instruction for a kindergarten student without a disability, 935 hours of instruction for a
student in grades 1 though 6, and 1,020 hours of instruction for a student in grades 7
though 12, not including summer school. new text begin The school calendar for all-day kindergarten
must include at least 850 hours of instruction for the school year. new text end Nothing in this section
permits a school district to adopt a four-day week schedule unless approved by the
commissioner under section 124D.126.

Sec. 3.

Minnesota Statutes 2012, section 123A.73, subdivision 3, is amended to read:


Subd. 3.

Voluntary dissolution; referendum revenue.

As of the effective date of
the voluntary dissolution of a district and its attachment to one or more existing districts
pursuant to section 123A.46, the authorization for all referendum revenues previously
approved by the voters of all affected districts for those districts pursuant to section
126C.17, subdivision 9, or its predecessor provision, is canceled. However, if all of the
territory of any independent district is included in the enlarged district, and if the adjusted
net tax capacity of taxable property in that territory comprises 90 percent or more of
the adjusted net tax capacity of all taxable property in an enlarged district, the enlarged
district's referendum revenue shall be determined as follows:

The referendum revenue shall be the revenue per deleted text begin resident marginal costdeleted text end new text begin adjusted
new text end pupil unit times the number of deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units in the enlarged
district. Any new referendum revenue shall be authorized only after approval is granted
by the voters of the entire enlarged district in an election pursuant to section 126C.17,
subdivision 9.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 123A.73, subdivision 4, is amended to read:


Subd. 4.

Consolidation; maximum authorized referendum revenues.

(a) As
of the effective date of a consolidation pursuant to section 123A.48, if the plan for
consolidation so provides, or if the plan for consolidation makes no provision concerning
referendum revenues, the authorization for all referendum revenues previously approved
by the voters of all affected districts for those districts pursuant to section 126C.17,
subdivision 9, or its predecessor provision shall be recalculated as provided in this
subdivision. The referendum revenue authorization for the newly created district shall
be the revenue per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit that would raise an amount
equal to the combined dollar amount of the referendum revenues authorized by each of
the component districts for the year preceding the consolidation, unless the referendum
revenue authorization of the newly created district is subsequently modified pursuant to
section 126C.17, subdivision 9.

(b) The referendum allowance for a consolidated district in the years following
consolidation equals the average of the consolidating districts' existing authorities for those
years, weighted by the districts' deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units in the year
preceding consolidation. For purposes of this calculation, the referendum authorities used
for individual districts shall not decrease from year to year until such time as all existing
authorities for all the consolidating districts have fully expired, but shall increase if they
were originally approved with consumer price index-based or other annual increases.

(c) The referendum revenue authorization for the newly created district shall continue
for a period of time equal to the longest period authorized for any component district.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 123A.73, subdivision 5, is amended to read:


Subd. 5.

Alternative method.

(a) As of the effective date of a consolidation
pursuant to section 123A.48, if the plan for consolidation so provides, the authorization
for all referendum revenues previously approved by the voters of all affected districts for
those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision
shall be combined as provided in this subdivision. The referendum revenue authorization
for the newly created district may be any allowance per deleted text begin resident marginal costdeleted text end new text begin adjusted
new text end pupil unit provided in the plan for consolidation, but may not exceed the allowance
per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit that would raise an amount equal to the
combined dollar amount of the referendum revenues authorized by each of the component
districts for the year preceding the consolidation.

(b) The referendum allowance for a consolidated district in the years following
consolidation equals the average of the consolidating districts' existing authorities for those
years, weighted by the districts' deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units in the year
preceding consolidation. For purposes of this calculation, the referendum authorities used
for individual districts shall not decrease from year to year until such time as all existing
authorities for all the consolidating districts have fully expired, but shall increase if they
were originally approved with consumer price index-based or other annual increases.

(c) The referendum revenue authorization for the newly created district shall
continue for a period of time equal to the longest period authorized for any component
district. The referendum revenue authorization for the newly created district may be
modified pursuant to section 126C.17, subdivision 9.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2012, section 123B.41, subdivision 7, is amended to read:


Subd. 7.

Elementary pupils.

"Elementary pupils" means pupils in grades
kindergarten through 6; provided, each kindergarten pupil new text begin in a half-day program new text end shall be
counted as one-half pupil for all computations pursuant to sections 123B.40 to 123B.42,
and 123B.44 to 123B.48.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2012, section 123B.42, subdivision 3, is amended to read:


Subd. 3.

Cost; limitation.

(a) The cost per pupil of the textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests provided for in this section for each school year must not exceed the
statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota
public elementary and secondary schools for textbooks, individualized instructional
materials and standardized tests as computed and established by the department by February
1 of the preceding school year from the most recent public school year data then available.

(b) The cost computed in clause (a) shall be increased by an inflation adjustment
equal to the percent of increase in the formula allowance, pursuant to section 126C.10,
subdivision 2, from the second preceding school year to the current school year.
new text begin Notwithstanding the amount of the formula allowance for fiscal years 2015 and 2016 in
section 126C.10, subdivision 2, the commissioner shall use the amount of the formula
allowance for the current year minus $411 in determining the inflation adjustment for
fiscal years 2015 and 2016.
new text end

(c) The commissioner shall allot to the districts or intermediary service areas the
total cost for each school year of providing or loaning the textbooks, individualized
instructional or cooperative learning materials, software or other educational technology,
and standardized tests for the pupils in each nonpublic school. The allotment shall not
exceed the product of the statewide average expenditure per pupil, according to clause
(a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils
who make requests pursuant to this section and who are enrolled as of September 15 of
the current school year.

Sec. 8.

Minnesota Statutes 2012, section 123B.92, subdivision 9, is amended to read:


Subd. 9.

Nonpublic pupil transportation aid.

(a) A district's nonpublic pupil
transportation aid for the 1996-1997 and later school years for transportation services for
nonpublic school pupils according to sections 123B.88, 123B.84 to 123B.86, and this
section, equals the sum of the amounts computed in paragraphs (b) and (c). This aid does
not limit the obligation to transport pupils under sections 123B.84 to 123B.87.

(b) For regular and excess transportation according to subdivision 1, paragraph (b),
clauses (1) and (2), an amount equal to the product of:

(1) the district's actual expenditure per pupil transported in the regular and excess
transportation categories during the second preceding school year; times

(2) the number of nonpublic school pupils residing in the district who receive regular
or excess transportation service or reimbursement for the current school year; times

(3) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
the current school year to the formula allowance pursuant to section 126C.10, subdivision
2, for the second preceding school year.

(c) For nonpublic nonregular transportation according to subdivision 1, paragraph
(b), clause (5), an amount equal to the product of:

(1) the district's actual expenditure for nonpublic nonregular transportation during
the second preceding school year; times

(2) the ratio of the formula allowance pursuant to section 126C.10, subdivision 2, for
the current school year to the formula allowance pursuant to section 126C.10, subdivision
2, for the second preceding school year.

(d) Notwithstanding the amount of the formula allowance for fiscal deleted text begin year 2004
deleted text end new text begin years 2015 and 2016new text end in section 126C.10, subdivision 2, the commissioner shall use the
amount of the formula allowance for the current year minus deleted text begin $415deleted text end new text begin $411new text end in determining
the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal deleted text begin year 2004
deleted text end new text begin years 2015 and 2016new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2012, section 124D.02, subdivision 1, is amended to read:


Subdivision 1.

Kindergarten instruction.

The board may establish and maintain
one or more kindergartens for the instruction of children and after July 1, 1974, shall
provide kindergarten instruction for all eligible children, either in the district or in
another district. All children to be eligible for kindergarten must be at least five years
of age on September 1 of the calendar year in which the school year commences. In
addition all children selected under an early admissions policy established by the school
board may be admitted. new text begin If established, a board-adopted early admissions policy must
describe the process and procedures for comprehensive evaluation in cognitive, social,
and emotional developmental domains to help determine the child's ability to meet
kindergarten grade expectations and progress to first grade in the subsequent year. The
comprehensive evaluation must use valid and reliable instrumentation, be aligned with
state kindergarten expectations, and include a parent report and teacher observations of
the child's knowledge, skills, and abilities. The early admissions policy must be made
available to parents in an accessible format and is subject to review by the commissioner
of education. The evaluation is subject to section 127A.41. new text end Nothing in this section
shall prohibit a school district from establishing Head Start, prekindergarten, or nursery
school classes for children below kindergarten age. Any school board with evidence that
providing kindergarten will cause an extraordinary hardship on the school district may
apply to the commissioner of education for an exception.

Sec. 10.

Minnesota Statutes 2012, section 126C.05, subdivision 1, is amended to read:


Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c),
in average daily membership enrolled in the district of residence, in another district under
sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under
section 124D.10; or for whom the resident district pays tuition under section 123A.18,
123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04,
124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this
subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individualized education program is counted as the ratio
of the number of hours of assessment and education service to 825 times deleted text begin 1.25deleted text end new text begin 1.0new text end with a
minimum average daily membership of 0.28, but not more than deleted text begin 1.25deleted text end new text begin 1.0new text end pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times deleted text begin 1.25deleted text end new text begin 1.0new text end .

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

(d) deleted text begin A kindergarten pupil who is not included in paragraph (c) is counted as .612 pupil
unitsdeleted text end new text begin A kindergarten pupil who is not included in paragraph (c) is counted as 1.0 pupil
units if the pupil is enrolled in a free all-day, every day kindergarten program available to
all kindergarten pupils at the pupil's school that meets the minimum hours requirement in
section 120A.41, or is counted as .55 pupil units, if the pupil is not enrolled in a free all-day,
every day kindergarten program available to all kindergarten pupils at the pupil's schoolnew text end .

(e) A pupil who is in any of grades 1 to deleted text begin 3deleted text end new text begin 6new text end is counted as deleted text begin 1.115deleted text end new text begin 1.0new text end pupil units deleted text begin for
fiscal year 2000 and thereafterdeleted text end .

(f) deleted text begin A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.
deleted text end

deleted text begin (g)deleted text end A pupil who is in any of grades 7 to 12 is counted as deleted text begin 1.3deleted text end new text begin 1.2new text end pupil units.

deleted text begin (h)deleted text end new text begin (g)new text end A pupil who is in the postsecondary enrollment options program is counted
as deleted text begin 1.3deleted text end new text begin 1.2new text end pupil units.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2012, section 126C.05, subdivision 5, is amended to read:


Subd. 5.

Adjusted pupil units.

deleted text begin (a)deleted text end Adjusted pupil units for a district or charter
school means the sum of:

(1) the number of pupil units served, according to subdivision 7, plus

(2) pupil units according to subdivision 1 for whom the district or charter school pays
tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus

(3) pupil units according to subdivision 1 for whom the district or charter school
receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488,
123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.

deleted text begin (b) Adjusted marginal cost pupil units means the greater of:
 deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current school
year and .23 times the pupil units defined in paragraph (a) for the previous school year; or
 deleted text end

deleted text begin (2) the number of adjusted pupil units defined in paragraph (a) for the current school
year.
 deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2012, section 126C.05, subdivision 6, is amended to read:


Subd. 6.

Resident pupil units.

deleted text begin (a)deleted text end Resident pupil units for a district means the
number of pupil units according to subdivision 1 residing in the district.

deleted text begin (b) Resident marginal cost pupil units means the greater of:
 deleted text end

deleted text begin (1) the sum of .77 times the pupil units defined in paragraph (a) for the current year
and .23 times the pupil units defined in paragraph (a) for the previous school year; or
 deleted text end

deleted text begin (2) the number of resident pupil units defined in paragraph (a) for the current school
year.
 deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2012, section 126C.05, subdivision 15, is amended to read:


Subd. 15.

Learning year pupil units.

(a) When a pupil is enrolled in a learning
year program under section 124D.128, an area learning center or an alternative learning
program approved by the commissioner under sections 123A.05 and 123A.06, or a
contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more
than 935 hours in a school year for an elementary student, new text begin more than 850 hours in a school
year for a kindergarten student without a disability in a full-day kindergarten program,
new text end or more than 425 hours in a school year for a new text begin half-day new text end kindergarten student without a
disability, that pupil may be counted as more than one pupil in average daily membership
for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
be determined by the ratio of the number of hours of instruction provided to that pupil in
excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
or the number of hours required for a full-time elementary pupil in the district to 935 for
an elementary pupil in grades 1 through 6; deleted text begin anddeleted text end (iii) the greater of 425 hours or the number
of hours required for a full-time kindergarten student without a disability in the district to
425 for a kindergarten student without a disabilitynew text begin ; and (iv) the greater of 425 hours or the
number of hours required for a half-time kindergarten student without a disability in the
district to 425 for a half-day kindergarten student without a disabilitynew text end . Hours that occur
after the close of the instructional year in June shall be attributable to the following fiscal
year. deleted text begin A kindergarten student must not be counted as more than 1.2 pupils in average daily
membership under this subdivision.deleted text end A student in new text begin kindergarten or new text end grades 1 through 12 must
not be counted as more than 1.2 pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an area learning center
or alternative learning program that has an independent study component, a district
must meet the requirements in this paragraph. The district must develop, for the pupil,
a continual learning plan consistent with section 124D.128, subdivision 3. Each school
district that has an area learning center or alternative learning program must reserve
revenue in an amount 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 deleted text begin .0485deleted text end new text begin .0465new text end , calculated without basic
skills and transportation sparsity revenue, times the number of pupil units generated by
students attending an area learning center or alternative learning program. The amount of
reserved revenue available under this subdivision may only be spent for program costs
associated with the area learning center or alternative learning program. Basic skills
revenue generated according to section 126C.10, subdivision 4, by pupils attending the
eligible program must be allocated to the program.

(ii) General education revenue for a pupil in a state-approved alternative program
without an independent study component must be prorated for a pupil participating for less
than a full year, or its equivalent. The district must develop a continual learning plan for the
pupil, consistent with section 124D.128, subdivision 3. Each school district that has an area
learning center or alternative learning program must reserve revenue in an amount 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 deleted text begin .0485deleted text end new text begin .0465new text end , calculated without basic skills and transportation sparsity
revenue, times the number of pupil units generated by students attending an area learning
center or alternative learning program. The amount of reserved revenue available under this
subdivision may only be spent for program costs associated with the area learning center or
alternative learning program. Basic skills revenue generated according to section 126C.10,
subdivision 4, by pupils attending the eligible program must be allocated to the program.

(iii) General education revenue for a pupil in a state-approved alternative program
that has an independent study component must be paid for each hour of teacher contact
time and each hour of independent study time completed toward a credit or graduation
standards necessary for graduation. Average daily membership for a pupil shall equal the
number of hours of teacher contact time and independent study time divided by 1,020.

(iv) For a state-approved alternative program having an independent study
component, the commissioner shall require a description of the courses in the program, the
kinds of independent study involved, the expected learning outcomes of the courses, and
the means of measuring student performance against the expected outcomes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2012, section 126C.10, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

new text begin (a) For fiscal years 2013 and 2014, new text end the
general education revenue for each district equals the sum of the district's basic revenue,
extended time revenue, gifted and talented revenue, small schools revenue, basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin (b) For fiscal year 2015 and later, the general education revenue for each district
equals the sum of the district's basic revenue, extended time revenue, gifted and talented
revenue, declining enrollment revenue, small schools revenue, basic supplemental
revenue, basic skills revenue, secondary sparsity revenue, elementary sparsity revenue,
transportation sparsity revenue, total operating capital revenue, equity revenue, pension
adjustment revenue, safe schools revenue, and transition revenue.
 new text end

Sec. 15.

Minnesota Statutes 2012, section 126C.10, subdivision 2, is amended to read:


Subd. 2.

Basic revenue.

new text begin For fiscal year 2014, new text end the basic revenue for each district
equals the formula allowance times the adjusted marginal cost pupil units for the school
year. deleted text begin The formula allowance for fiscal year 2011 is $5,124. The formula allowance for
fiscal year 2012 is $5,174.deleted text end new text begin For fiscal year 2015 and later, the basic revenue for each district
equals the formula allowance times the adjusted pupil units for the school year.new text end The formula
allowance for fiscal year 2013 deleted text begin and subsequent yearsdeleted text end is $5,224.new text begin The formula allowance for
fiscal year 2014 is $5,276. The formula allowance for fiscal year 2015 and later is $5,687.
new text end

Sec. 16.

Minnesota Statutes 2012, section 126C.10, subdivision 2a, is amended to read:


Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue
is equal to the product of deleted text begin $4,601deleted text end new text begin $4,945new text end and the sum of the adjusted deleted text begin marginal costdeleted text end pupil
units of the district for each pupil in average daily membership in excess of 1.0 and less
than 1.2 according to section 126C.05, subdivision 8.

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, and other programming authorized
under the learning year program.

Sec. 17.

Minnesota Statutes 2012, section 126C.10, subdivision 2c, is amended to read:


Subd. 2c.

Small schools revenue.

A school district, not including a charter school,
is eligible for small schools revenue equal to the product of:

(1) deleted text begin $5,224deleted text end new text begin $540new text end ;

(2) the district's adjusted deleted text begin marginal costdeleted text end pupil units for that year;new text begin and
new text end

(3) the greater of zero or the ratio of (i) deleted text begin 1,000deleted text end new text begin 960new text end less the district's adjusted deleted text begin marginal
costdeleted text end pupil units for that year, to (ii) deleted text begin 1,000; anddeleted text end new text begin 960.
new text end

deleted text begin (4) 0.10.
 deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2d. new text end

new text begin Declining enrollment revenue. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2e. new text end

new text begin Basic supplemental revenue. new text end

new text begin The basic supplemental revenue for each
district equals the supplemental allowance times the adjusted pupil units for the school
year. The supplemental allowance for fiscal year 2015 and later years is $56.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2f. new text end

new text begin Safe schools revenue. new text end

new text begin The safe schools revenue for each district, including
charter schools, equals the safe schools allowance times the district's adjusted pupil units
for the school year. The safe schools allowance for fiscal year 2015 and later years is $34.
 new text end

Sec. 21.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 2g. new text end

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

new text begin (a) Safe schools revenue, under subdivision
2f, must be reserved and used for directly funding the following purposes or for reimbursing
the cities and counties who contract with the district for the following purposes:
 new text end

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

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

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

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

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

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

new text begin (7) to pay the costs for colocating and collaborating with mental health professionals
who are not district employees or contractors.
 new text end

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

new text begin (b) A school district may reserve up to $2 per adjusted pupil unit of safe schools
revenue for laminated glass for security in the district's schools.
 new text end

Sec. 22.

Minnesota Statutes 2012, section 126C.10, subdivision 3, is amended to read:


Subd. 3.

Compensatory education revenue.

(a) new text begin For fiscal year 2014, new text end the
compensatory education revenue for each building in the district equals the formula
allowance minus $415 times the compensation revenue pupil units computed according
to section 126C.05, subdivision 3. new text begin For fiscal year 2015 and later, the compensatory
education revenue for each building in the district equals the formula allowance minus
$826 times the compensation revenue pupil units computed according to section 126C.05,
subdivision 3. new text end Revenue shall be paid to the district and must be allocated according to
section 126C.15, subdivision 2.

(b) When the district contracting with an alternative program under section 124D.69
changes prior to the start of a school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting with the alternative program
for the current school year, and shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning center changes prior to the start
of a school year, the compensatory revenue shall be paid to the fiscal agent district for the
current school year, and shall not be paid to the fiscal agent district for the prior school year.

Sec. 23.

Minnesota Statutes 2012, section 126C.10, subdivision 7, is amended to read:


Subd. 7.

Secondary sparsity revenue.

(a) A district's secondary sparsity revenue
for a school year equals the sum of the results of the following calculation for each
qualifying high school in the district:

(1) the formula allowance for the school yearnew text begin minus $411new text end , multiplied by

(2) the secondary average daily membership of pupils served in the high school,
multiplied by

(3) the quotient obtained by dividing 400 minus the secondary average daily
membership by 400 plus the secondary daily membership, multiplied by

(4) the lesser of 1.5 or the quotient obtained by dividing the isolation index minus
23 by ten.

(b) A newly formed district that is the result of districts combining under the
cooperation and combination program or consolidating under section 123A.48 must
receive secondary sparsity revenue equal to the greater of: (1) the amount calculated
under paragraph (a) for the combined district; or (2) the sum of the amounts of secondary
sparsity revenue the former districts had in the year prior to consolidation, increased for
any subsequent changes in the secondary sparsity formula.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2012, section 126C.10, subdivision 8, is amended to read:


Subd. 8.

Elementary sparsity revenue.

A district's elementary sparsity revenue
equals the sum of the following amounts for each qualifying elementary school in the
district:

(1) the formula allowance for the yearnew text begin minus $411new text end , multiplied by

(2) the elementary average daily membership of pupils served in the school,
multiplied by

(3) the quotient obtained by dividing 140 minus the elementary average daily
membership by 140 plus the average daily membership.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2012, section 126C.10, subdivision 13, is amended to read:


Subd. 13.

Total operating capital revenue.

(a) Total operating capital revenue for
a district equals the amount determined under paragraph (b) or (c), plus deleted text begin $73deleted text end new text begin $79new text end times the
adjusted deleted text begin marginal costdeleted text end pupil units for the school year. The revenue must be placed in a
reserved account in the general fund and may only be used according to subdivision 14.

(b) Capital revenue for a district equals deleted text begin $100deleted text end new text begin $108new text end times the district's maintenance
cost index times its adjusted deleted text begin marginal costdeleted text end pupil units for the school year.

(c) The revenue for a district that operates a program under section 124D.128, is
increased by an amount equal to $30 times the number of deleted text begin marginal costdeleted text end new text begin adjustednew text end pupil
units served at the site where the program is implemented.

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

Minnesota Statutes 2012, section 126C.10, subdivision 13a, is amended to read:


Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
deleted text begin year 2007deleted text end new text begin years 2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district may levy an amount not more than the
product of its operating capital revenue for the fiscal year times the lesser of one or the
ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating
capital equalizing factor. The operating capital equalizing factor equals $10,194.

Sec. 27.

Minnesota Statutes 2012, section 126C.10, subdivision 13b, is amended to read:


Subd. 13b.

Operating capital aid.

new text begin For fiscal years 2013 and 2014 only, new text end a district's
operating capital aid equals its operating capital revenue minus its operating capital levy
times the ratio of the actual amount levied to the permitted levy.

Sec. 28.

Minnesota Statutes 2012, section 126C.10, subdivision 17, is amended to read:


Subd. 17.

Transportation sparsity definitions.

The definitions in this subdivision
apply to subdivisions 18 and 19.

(a) "Sparsity index" for a district means the greater of .2 or the ratio of the square
mile area of the district to the deleted text begin residentdeleted text end new text begin adjustednew text end pupil units of the district.

(b) "Density index" for a district means the ratio of the square mile area of the
district to the deleted text begin residentdeleted text end new text begin adjustednew text end pupil units of the district. However, the density index for a
district cannot be greater than .2 or less than .005.

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

Minnesota Statutes 2012, section 126C.10, subdivision 18, is amended to read:


Subd. 18.

Transportation sparsity revenue allowance.

(a) A district's
transportation sparsity allowance equals the greater of zero or the result of the following
computation:

(i) Multiply the formula allowance according to subdivision 2, by deleted text begin .1469deleted text end new text begin .141new text end .

(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
26/100 power.

(iii) Multiply the result in clause (ii) by the district's density index raised to the
13/100 power.

(iv) Multiply the formula allowance according to subdivision 2, by deleted text begin .0485deleted text end new text begin .0465new text end .

(v) Subtract the result in clause (iv) from the result in clause (iii).

(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
times the adjusted deleted text begin marginal costdeleted text end pupil units.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2012, section 126C.10, subdivision 24, is amended to read:


Subd. 24.

Equity revenue.

deleted text begin (a) A school district qualifies for equity revenue if:
 deleted text end

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

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

deleted text begin (b)deleted text end new text begin A school district'snew text end equity revenue deleted text begin for a qualifying district that receives
referendum revenue under section 126C.17, subdivision 4,deleted text end equals the product of deleted text begin (1)deleted text end the
district's adjusted deleted text begin marginal costdeleted text end pupil units for that year; times deleted text begin (2) the sum of (i) $13, plus
(ii) $75deleted text end new text begin $100new text end , times the school district's equity index computed under subdivision 27.

deleted text begin (c) Equity revenue for a qualifying district that does not receive referendum revenue
under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
cost pupil units for that year times $13.
 deleted text end

deleted text begin (d) A school district's equity revenue is increased by the greater of zero or an amount
equal to the district's resident marginal cost pupil units times the difference between ten
percent of the statewide average amount of referendum revenue per resident marginal cost
pupil unit for that year and the district's referendum revenue per resident marginal cost
pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
that year.
 deleted text end

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

deleted text begin (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
district that has per pupil referendum revenue below the 95th percentile qualifies for
additional equity revenue equal to $46 times its adjusted marginal cost pupil units.
 deleted text end

deleted text begin (g) A district that does not qualify for revenue under paragraph (f) qualifies for
equity revenue equal to $46 times its adjusted marginal cost pupil units.
 deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

Minnesota Statutes 2012, section 126C.10, subdivision 27, is amended to read:


Subd. 27.

District equity index.

new text begin (a) new text end A district's equity index equals new text begin the greater
of zero or new text end the ratio of deleted text begin the sum of the district equity gap amount to the regional equity
gap amountdeleted text end new text begin $2,000 minus the district's referendum revenue under section 126C.17,
subdivision 4, per adjusted pupil unit to $2,000new text end .

new text begin (b) A charter school's equity index equals the greater of zero or the ratio of $2,000
minus the school's general education revenue attributable to referendum equalization aid
under section 124D.11, subdivision 1, per adjusted pupil unit to $2,000.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2012, section 126C.10, subdivision 29, is amended to read:


Subd. 29.

Equity levy.

To obtain equity revenue for fiscal year deleted text begin 2005deleted text end new text begin 2015new text end and later,
a district may levy an amount not more than the product of its equity revenue for the
fiscal year times the lesser of one or the ratio of its referendum market value per resident
deleted text begin marginal costdeleted text end pupil unit to deleted text begin $476,000deleted text end new text begin $538,200new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2012, section 126C.10, subdivision 31, is amended to read:


Subd. 31.

Transition revenue.

(a) A district's transition allowance equalsnew text begin the sum of
the transition revenue the district would have received for fiscal year 2015 under Minnesota
Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, andnew text end the greater of zero or
deleted text begin the product of the ratio of the number of adjusted marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002 to the district's
adjusted marginal cost pupil units for fiscal year 2004, timesdeleted text end the difference between:

(1) the deleted text begin lesserdeleted text end new text begin sumnew text end ofnew text begin :new text end

new text begin (i) new text end the deleted text begin district'sdeleted text end general education revenue deleted text begin per adjusted marginal cost pupil unit
for fiscal year 2003 or the amount of general education revenuedeleted text end the district would have
received deleted text begin per adjusted marginal cost pupil unitdeleted text end for fiscal year deleted text begin 2004deleted text end new text begin 2015new text end according to
Minnesota Statutes deleted text begin 2002,deleted text end new text begin 2012, section 126C.10;
new text end

new text begin (ii) the safe school levy the district certified for fiscal year 2014 under Minnesota
Statutes 2012, section 126C.44;
 new text end

new text begin (iii) 70 percent of the integration revenue the district received for fiscal year 2013
under Minnesota Statutes 2012, section 124D.86;
 new text end

new text begin (iv) the pension adjustment the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 127A.50;
 new text end

new text begin (v) the special education aid the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 125A.65; and
 new text end

new text begin (vi) the special education excess cost aid the district would have received for fiscal
year 2015 under Minnesota Statutes 2012, section 125A.79; new text end and

(2) the new text begin sum of the new text end district'snew text begin :
new text end

new text begin (i)new text end general education revenue for fiscal year deleted text begin 2004deleted text end new text begin 2015new text end excluding transition revenue
new text begin under section 126C.10;
new text end

new text begin (ii) integration revenue for fiscal year 2015 under section 124D.862; and
 new text end

new text begin (iii) special education aid for fiscal year 2015 under section 125A.76; and
 new text end

divided by the number of adjusted deleted text begin marginal costdeleted text end pupil units deleted text begin the district would have
counteddeleted text end for fiscal year deleted text begin 2004 under Minnesota Statutes 2002deleted text end new text begin 2015new text end .

deleted text begin (b) A district's transition revenue for fiscal years 2006 through 2009 equals the sum of
the product of the district's transition allowance times the district's adjusted marginal cost
pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.
 deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end A district's transition revenue for fiscal year deleted text begin 2010deleted text end new text begin 2015new text end and later equals deleted text begin the
sum ofdeleted text end the product of the district's transition allowance times the district's adjusted deleted text begin marginal
costdeleted text end pupil units deleted text begin plus the district's transition for prekindergarten revenue under subdivision
31a plus the district's transition for tuition reciprocity revenue under subdivision 31cdeleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

Minnesota Statutes 2012, section 126C.10, subdivision 32, is amended to read:


Subd. 32.

Transition levy.

To obtain transition revenue for fiscal year deleted text begin 2005deleted text end new text begin 2015
new text end and later, a district may levy an amount not more than the product of its transition revenue
for the fiscal year times the lesser of one or the ratio of its referendum market value per
resident deleted text begin marginal costdeleted text end pupil unit to deleted text begin $476,000deleted text end new text begin $538,200new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

Minnesota Statutes 2012, section 126C.10, subdivision 34, is amended to read:


Subd. 34.

Basic alternative teacher compensation aid.

(a) deleted text begin For fiscal years 2007,
2008, and 2009, the basic alternative teacher compensation aid for a school district
with a plan approved under section 122A.414, subdivision 2b, equals 73.1 percent of
the alternative teacher compensation revenue under section 122A.415, subdivision 1.
The basic alternative teacher compensation aid for an intermediate school district or
charter school with a plan approved under section 122A.414, subdivisions 2a and 2b, if
the recipient is a charter school, equals $260 times the number of pupils enrolled in the
school on October 1 of the previous fiscal year, or on October 1 of the current fiscal
year for a charter school in the first year of operation, times the ratio of the sum of the
alternative teacher compensation aid and alternative teacher compensation levy for all
participating school districts to the maximum alternative teacher compensation revenue
for those districts under section 122A.415, subdivision 1.
deleted text end

deleted text begin (b)deleted text end For fiscal years deleted text begin 2010 and laterdeleted text end new text begin 2013 and 2014 onlynew text end , the basic alternative
teacher compensation aid for a school with a plan approved under section 122A.414,
subdivision 2b, equals 65 percent of the alternative teacher compensation revenue under
section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
an intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous year, or on
October 1 of the current year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under section 122A.415, subdivision 1.

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding deleted text begin paragraphsdeleted text end new text begin paragraph new text end (a) deleted text begin and (b)deleted text end and section 122A.415,
subdivision 1, the state total basic alternative teacher compensation aid entitlement must
not exceed $75,636,000 for fiscal year 2007 and later. The commissioner must limit the
amount of alternative teacher compensation aid approved under section 122A.415 so as
not to exceed these limits.

Sec. 36.

Minnesota Statutes 2012, section 126C.10, subdivision 35, is amended to read:


Subd. 35.

Alternative teacher compensation levy.

For fiscal deleted text begin year 2007deleted text end new text begin years 2013
new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , the alternative teacher compensation levy for a district receiving basic
alternative teacher compensation aid equals the product of (1) the difference between the
district's alternative teacher compensation revenue and the district's basic alternative
teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
net tax capacity per adjusted pupil unit to $5,634.

Sec. 37.

Minnesota Statutes 2012, section 126C.10, subdivision 36, is amended to read:


Subd. 36.

Alternative teacher compensation aid.

(a) For fiscal deleted text begin year 2007deleted text end new text begin years
2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end , a district's alternative teacher compensation equalization aid
equals the district's alternative teacher compensation revenue minus the district's basic
alternative teacher compensation aid minus the district's alternative teacher compensation
levy. If a district does not levy the entire amount permitted, the alternative teacher
compensation equalization aid must be reduced in proportion to the actual amount levied.

(b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.

Sec. 38.

Minnesota Statutes 2012, section 126C.10, is amended by adding a
subdivision to read:


new text begin Subd. 38. new text end

new text begin Pension adjustment revenue. new text end

new text begin A school district's pension adjustment
revenue equals the greater of zero or the product of:
 new text end

new text begin (1) the difference between the district's adjustment under Minnesota Statutes 2012,
section 127A.50, subdivision 1, for fiscal year 2014 per adjusted pupil unit and the state
average adjustment under Minnesota Statutes 2012, section 127A.50, subdivision 1, for
fiscal year 2014 per adjusted pupil unit; and
 new text end

new text begin (2) the district's adjusted pupil units for the fiscal year.
 new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 39.

Minnesota Statutes 2012, section 126C.12, subdivision 1, is amended to read:


Subdivision 1.

Revenue.

Of a district's general education revenue for fiscal year
deleted text begin 2000deleted text end new text begin 2015new text end and thereafter each school district shall reserve an amount equal to deleted text begin the formula
deleted text end deleted text begin allowance multiplied bydeleted text end the following calculation:

(1) deleted text begin the sum of adjusted marginal cost pupils indeleted text end average daily membership, according
to section 126C.05, subdivision 5, in kindergarten times deleted text begin .057deleted text end new text begin $299new text end ; plus

(2) deleted text begin the sum of adjusted marginal cost pupils indeleted text end average daily membership, according
to section 126C.05, subdivision 5, in grades 1 to deleted text begin 3deleted text end new text begin 6new text end times deleted text begin .115; plusdeleted text end new text begin $459.
new text end

deleted text begin (3) the sum of adjusted marginal cost pupils in average daily membership, according
to section 126C.05, subdivision 5, in grades 4 to 6 times .06.
 deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 40.

Minnesota Statutes 2012, section 126C.12, subdivision 5, is amended to read:


Subd. 5.

Additional revenue use.

If the board of a district determines that the
district has achieved and is maintaining the class sizes specified in subdivision 4, the board
may use the revenue to reduce class size in grades 4, 5, and 6, deleted text begin provide all-day, everyday
kindergarten,deleted text end prepare and use individualized learning plans, improve program offerings,
purchase instructional material, services, or technology, or provide staff development
needed for reduced class sizes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 41.

Minnesota Statutes 2012, section 126C.126, is amended to read:


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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin General education rate. new text end

new text begin The commissioner must establish the general
education rate by July 1 of each year for levies payable in the following year. The general
education rate must be a rate, rounded up to the nearest hundredth of a percent, that, when
applied to the adjusted net tax capacity for all districts, raises the amount specified in this
subdivision. The general education rate must be the rate that raises $19,520,000 for fiscal
year 2015; $26,219,000 for fiscal year 2016; and $30,004,000 for fiscal year 2017 and
later years. The general education rate may not be changed due to changes or corrections
made to a district's adjusted net tax capacity after the rate has been established.
new text end

Sec. 43.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3b. new text end

new text begin General education levy. new text end

new text begin To obtain general education revenue, a district
may levy an amount not to exceed the general education rate times the adjusted net tax
capacity of the district for the preceding year. If the amount of the general education
levy would exceed the general education revenue, the general education levy must be
determined according to subdivision 3c.
 new text end

Sec. 44.

Minnesota Statutes 2012, section 126C.13, is amended by adding a
subdivision to read:


new text begin Subd. 3c. new text end

new text begin General education levy; districts off the formula. new text end

new text begin (a) If the sum of the
amount of the general education levy and equity levy for a district exceeds the district's
general education revenue, the amount of the general education levy must be limited to
the following:
 new text end

new text begin (1) the district's general education revenue minus its equity levy; minus
new text end

new text begin (2) payments made for the same school year according to section 126C.21,
subdivision 3.
new text end

new text begin (b) A levy made according to this subdivision shall also be construed to be the levy
made according to subdivision 3b.
 new text end

Sec. 45.

Minnesota Statutes 2012, section 126C.13, subdivision 4, is amended to read:


Subd. 4.

General education aid.

new text begin (a) new text end For fiscal years deleted text begin 2007deleted text end new text begin 2013new text end and deleted text begin laterdeleted text end new text begin 2014 onlynew text end ,
a district's general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and

(8) online learning aid according to section 124D.096.

new text begin (b) For fiscal year 2015 and later, a district's general education aid equals:
 new text end

new text begin (1) general education revenue, excluding equity revenue and transition revenue,
minus the general education levy, multiplied times the ratio of the actual amount of general
education levied to the permitted general education levy; plus
 new text end

new text begin (2) equity aid under section 126C.10, subdivision 30; plus
 new text end

new text begin (3) transition aid under section 126C.10, subdivision 33; plus
 new text end

new text begin (4) shared time aid under section 126C.10, subdivision 7; plus
 new text end

new text begin (5) referendum aid under section 126C.17, subdivisions 7 and 7a; plus
 new text end

new text begin (6) online learning aid under section 124D.096.
 new text end

Sec. 46.

Minnesota Statutes 2012, section 126C.13, subdivision 5, is amended to read:


Subd. 5.

Uses of revenue.

Except as provided in sections 126C.10, deleted text begin subdivision
deleted text end new text begin subdivisions 2g and new text end 14; 126C.12; and 126C.15, general education revenue may be used
during the regular school year and the summer for general and special school purposes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 47.

Minnesota Statutes 2012, section 126C.15, subdivision 1, is amended to read:


Subdivision 1.

Use of revenue.

The basic skills revenue under section 126C.10,
subdivision 4, must be reserved and used to meet the educational needs of pupils who
enroll under-prepared to learn and whose progress toward meeting state or local content
or performance standards is below the level that is appropriate for learners of their age.
new text begin Basic skills revenue may also be used for programs designed to prepare children and their
families for kindergarten, provided such programming is cost-effective, research-based,
and includes an evaluation component to measure, record, and publicly report its level of
effectiveness. new text end Any of the following may be provided to meet these learners' needs:

(1) direct instructional services under the assurance of mastery program according
to section 124D.66;

(2) remedial instruction in reading, language arts, mathematics, other content areas,
or study skills to improve the achievement level of these learners;

(3) additional teachers and teacher aides to provide more individualized instruction
to these learners through individual tutoring, lower instructor-to-learner ratios, or team
teaching;

(4) a longer school day or week during the regular school year or through a summer
program that may be offered directly by the site or under a performance-based contract
with a community-based organization;

(5) comprehensive and ongoing staff development consistent with district and site
plans according to section 122A.60, for teachers, teacher aides, principals, and other
personnel to improve their ability to identify the needs of these learners and provide
appropriate remediation, intervention, accommodations, or modifications;

(6) instructional materials, digital learning, and technology appropriate for meeting
the individual needs of these learners;

(7) programs to reduce truancy, encourage completion of high school, enhance
self-concept, provide health services, provide nutrition services, provide a safe and secure
learning environment, provide coordination for pupils receiving services from other
governmental agencies, provide psychological services to determine the level of social,
emotional, cognitive, and intellectual development, and provide counseling services,
guidance services, and social work services;

(8) bilingual programs, bicultural programs, and programs for English learners;

(9) all day kindergarten;

(10) new text begin early education programs, parent-training programs, school readiness programs,
kindergarten programs for four-year-olds, and other outreach efforts designed to prepare
children for kindergarten;
new text end

new text begin (11) new text end extended school day and extended school year programs; and

deleted text begin (11)deleted text end new text begin (12)new text end substantial parent involvement in developing and implementing remedial
education or intervention plans for a learner, including learning contracts between the
school, the learner, and the parent that establish achievement goals and responsibilities of
the learner and the learner's parent or guardian.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 48.

Minnesota Statutes 2012, section 126C.17, is amended to read:


126C.17 REFERENDUM REVENUE.

Subdivision 1.

Referendum allowance.

deleted text begin (a) For fiscal year 2003 and later, a district's
initial referendum revenue allowance equals the sum of the allowance under section
126C.16, subdivision 2, plus any additional allowance per resident marginal cost pupil
unit authorized under subdivision 9 before May 1, 2001, for fiscal year 2002 and later,
plus the referendum conversion allowance approved under subdivision 13, minus $415.
For districts with more than one referendum authority, the reduction must be computed
separately for each authority. The reduction must be applied first to the referendum
conversion allowance and next to the authority with the earliest expiration date. A
district's initial referendum revenue allowance may not be less than zero.
 deleted text end

deleted text begin (b) For fiscal year 2003, a district's referendum revenue allowance equals the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and December 30, 2001, for
fiscal year 2003 and later.
 deleted text end

deleted text begin (c) For fiscal year 2004 and later, a district's referendum revenue allowance equals
the sum of:
 deleted text end

deleted text begin (1) the product of (i) the ratio of the resident marginal cost pupil units the district
would have counted for fiscal year 2004 under Minnesota Statutes 2002, section 126C.05,
to the district's resident marginal cost pupil units for fiscal year 2004, times (ii) the initial
referendum allowance plus any additional allowance per resident marginal cost pupil unit
authorized under subdivision 9 between April 30, 2001, and May 30, 2003, for fiscal
year 2003 and later, plus
 deleted text end

deleted text begin (2) any additional allowance per resident marginal cost pupil unit authorized under
subdivision 9 after May 30, 2003, for fiscal year 2005 and later.
 deleted text end

new text begin (a) A district's initial referendum allowance for fiscal year 2015 equals the result of
the following calculations:
 new text end

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

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

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

new text begin (4) if the result of clause (3) is less than zero, set the allowance to zero.
 new text end

new text begin (b) A district's referendum allowance equals the sum of the district's initial
referendum allowance for fiscal year 2015, plus any additional referendum allowance per
adjusted pupil unit authorized after June 30, 2013, minus any allowances expiring in fiscal
year 2016 or later. For a district with more than one referendum allowance for fiscal year
2015 under Minnesota Statutes 2012, section 126C.17, the allowance calculated under
paragraph (a) must be divided into components such that the same percentage of the
district's allowance expires at the same time as the old allowances would have expired
under Minnesota Statutes 2012, section 126C.17.
 new text end

Subd. 2.

Referendum allowance limit.

(a) Notwithstanding subdivision 1, for fiscal
year deleted text begin 2007deleted text end new text begin 2015new text end and later, a district's referendum allowance must not exceed deleted text begin the greater of:
deleted text end

deleted text begin (1) the sum of: (i) a district's referendum allowance for fiscal year 1994 times 1.177
times the annual inflationary increase as calculated under paragraph (b) plus (ii) its
referendum conversion allowance for fiscal year 2003, minus (iii) $215;
 deleted text end

deleted text begin (2) the greater of (i): 26 percent of the formula allowance or (ii) $1,294 timesdeleted text end the
annual inflationary increase as calculated under paragraph (b)deleted text begin ; ordeleted text end new text begin times the greatest of:
new text end

new text begin (1) $1,845;
 new text end

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

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

deleted text begin (3)deleted text end new text begin (4)new text end for a newly reorganized district created after July 1, deleted text begin 2006deleted text end new text begin 2013new text end , the referendum
revenue authority for each reorganizing district in the year preceding reorganization divided
by its deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for the year preceding reorganization.

(b) For purposes of this subdivision, for fiscal year deleted text begin 2005deleted text end new text begin 2016new text end and later, "inflationary
increase" means one plus the percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor Standards, for the current
fiscal year to fiscal year deleted text begin 2004deleted text end new text begin 2015new text end . For fiscal deleted text begin years 2009deleted text end new text begin year 2016new text end and later, for purposes
of paragraph (a), clause deleted text begin (1)deleted text end new text begin (3)new text end , the inflationary increase equals deleted text begin the inflationary increase
for fiscal year 2008 plusdeleted text end one-fourth of the percentage increase in the formula allowance
for that year compared with the formula allowance for fiscal year deleted text begin 2008deleted text end new text begin 2015new text end .

Subd. 3.

Sparsity exception.

A district that qualifies for sparsity revenue under
section 126C.10 is not subject to a referendum allowance limit.

Subd. 4.

Total referendum revenue.

The total referendum revenue for each district
equals the district's referendum allowance times the deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil
units for the school year.

Subd. 5.

Referendum equalization revenue.

(a) deleted text begin For fiscal year 2003 and later,
deleted text end A district's referendum equalization revenue equals the sum of the first tier referendum
equalization revenue and the second tier referendum equalization revenue.

(b) A district's first tier referendum equalization revenue equals the district's first
tier referendum equalization allowance times the district's deleted text begin resident marginal costdeleted text end new text begin adjusted
new text end pupil units for that year.

(c) deleted text begin For fiscal year 2006, a district's first tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or $500. For
fiscal year 2007, a district's first tier referendum equalization allowance equals the lesser
of the district's referendum allowance under subdivision 1 or $600.
deleted text end

deleted text begin For fiscal year 2008 and later,deleted text end A district's first tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or deleted text begin $700deleted text end new text begin $775new text end .

(d) A district's second tier referendum equalization revenue equals the district's
second tier referendum equalization allowance times the district's deleted text begin resident marginal cost
deleted text end new text begin adjustednew text end pupil units for that year.

(e) deleted text begin For fiscal year 2006, a district's second tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or 18.6 percent
of the formula allowance, minus the district's first tier referendum equalization allowance.
For fiscal year 2007 and later,deleted text end A district's second tier referendum equalization allowance
equals the lesser of the district's referendum allowance under subdivision 1 or deleted text begin 26deleted text end new text begin 25new text end percent
of the formula allowance, minus the district's first tier referendum equalization allowance.

(f) Notwithstanding paragraph (e), the second tier referendum allowance for a
district qualifying for secondary sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision 8, equals the district's
referendum allowance under subdivision 1 minus the district's first tier referendum
equalization allowance.

Subd. 6.

Referendum equalization levy.

(a) For fiscal year 2003 and later,
a district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident deleted text begin marginal costdeleted text end pupil unit to deleted text begin $476,000deleted text end new text begin $538,200new text end .

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident deleted text begin marginal costdeleted text end pupil unit to deleted text begin $270,000deleted text end new text begin $259,415new text end .

Subd. 7.

Referendum equalization aid.

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

(b) If a district's actual levy for first or second tier referendum equalization revenue
is less than its maximum levy limit for that tier, aid shall be proportionately reduced.

(c) Notwithstanding paragraph (a), the referendum equalization aid for a district,
where the referendum equalization aid under paragraph (a) exceeds 90 percent of the
referendum revenue, must not exceed deleted text begin 26deleted text end new text begin 25new text end percent of the formula allowance times the
district's deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units. A district's referendum levy is
increased by the amount of any reduction in referendum aid under this paragraph.

Subd. 7a.

Referendum tax base replacement aid.

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

new text begin Subd. 7b. new text end

new text begin Referendum aid guarantee. new text end

new text begin (a) Notwithstanding subdivision 7, a
district's referendum equalization aid for fiscal year 2015 must not be less than the sum
of the referendum equalization aid the district would have received for fiscal year 2015
under Minnesota Statutes 2012, section 126C.17, subdivision 7, and the adjustment the
district would have received under Minnesota Statutes 2012, section 127A.47, subdivision
7, paragraphs (a), (b), and (c).
 new text end

new text begin (b) Notwithstanding subdivision 7, referendum equalization aid for fiscal year 2016
and later, for a district qualifying for additional aid under paragraph (a) for fiscal year
2015, must not be less than the product of (1) the district's referendum equalization aid
for fiscal year 2015, times (2) the lesser of one or the ratio of the district's referendum
revenue for that school year to the district's referendum revenue for fiscal year 2015, times
(3) the lesser of one or the ratio of the district's referendum market value used for fiscal
year 2015 referendum equalization calculations to the district's referendum market value
used for that year's referendum equalization calculations.
 new text end

Subd. 8.

Unequalized referendum levy.

Each year, a district may levy an amount
equal to the difference between its total referendum revenue according to subdivision 4
and its referendum equalization revenue according to subdivision 5.

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district
at a referendum called for the purpose. The referendum may be called by the board.
The referendum must be conducted one or two calendar years before the increased levy
authority, if approved, first becomes payable. Only one election to approve an increase
may be held in a calendar year. Unless the referendum is conducted by mail under
subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
first Monday in November. The ballot must state the maximum amount of the increased
revenue per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil unit. The ballot may state a schedule,
determined by the board, of increased revenue per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil
unit that differs from year to year over the number of years for which the increased revenue
is authorized or may state that the amount shall increase annually by the rate of inflation.
For this purpose, the rate of inflation shall be the annual inflationary increase calculated
under subdivision 2, paragraph (b). The ballot may state that existing referendum levy
authority is expiring. In this case, the ballot may also compare the proposed levy authority
to the existing expiring levy authority, and express the proposed increase as the amount, if
any, over the expiring referendum levy authority. The ballot must designate the specific
number of years, not to exceed ten, for which the referendum authorization applies. The
ballot, including a ballot on the question to revoke or reduce the increased revenue amount
under paragraph (c), must abbreviate the term "per deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil
unit" as "per pupil." The notice required under section 275.60 may be modified to read, in
cases of renewing existing levies at the same amount per pupil as in the previous year:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
SCHEDULED TO EXPIRE."

The ballot may contain a textual portion with the information required in this
subdivision and a question stating substantially the following:

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per deleted text begin resident marginal cost
deleted text end new text begin adjustednew text end pupil unit times the deleted text begin resident marginal costdeleted text end new text begin adjustednew text end pupil units for the school
year beginning in the year after the levy is certified shall be authorized for certification
for the number of years approved, if applicable, or until revoked or reduced by the voters
of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing levies,
the notice may include the following statement: "Passage of this referendum extends an
existing operating referendum at the same amount per pupil as in the previous year."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
revoke or reduce the revenue amount must state the amount per resident marginal cost
pupil unit by which the authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be available to the school district at
least once before it is subject to a referendum on its revocation or reduction for subsequent
years. Only one revocation or reduction referendum may be held to revoke or reduce
referendum revenue for any specific year and for years thereafter.

(d) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(e) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

new text begin Subd. 9a. new text end

new text begin Board-approved extension. new text end

new text begin (a) Notwithstanding subdivision 9, a school
district with any of its area located within the seven-county metropolitan area that, in one
or more elections, has approved a referendum allowance of at least $400 for at least ten
years, may reauthorize any expiring referendum authority equal to a total of $400 or less
by a board vote. The board may reauthorize this authority for up to five years and may
subsequently reauthorize that authority in increments of five years.
 new text end

new text begin (b) Notwithstanding subdivision 9, a school district with any of its area located
within the seven-county metropolitan area that, in one or more elections, has approved
a referendum allowance of less than $400 for at least ten years, may reauthorize the
value of any expiring referendum authority by a board vote. The board may reauthorize
this authority for up to five years and may subsequently reauthorize that authority in
increments of five years.
 new text end

new text begin (c) Notwithstanding subdivision 9, a school district with none of its area located
within the seven-county metropolitan area with more than 2,000 pupils in adjusted average
daily membership that, in one or more elections, has approved a referendum allowance of
at least $200 for at least ten years, may reauthorize any expiring referendum authority equal
to a total of $200 or less by a board vote. The board may reauthorize this authority for up
to five years and may subsequently reauthorize that authority in increments of five years.
 new text end

new text begin (d) Notwithstanding subdivision 9, a school district with none of its area located
within the seven-county metropolitan area with more than 2,000 pupils in adjusted average
daily membership that, in one or more elections, has approved a referendum allowance of
less than $200 for at least ten years, may reauthorize the value of any expiring referendum
authority by a board vote. The board may reauthorize this authority for up to five years
and may subsequently reauthorize that authority in increments of five years.
 new text end

Subd. 10.

School referendum levy; market value.

A school referendum levy must
be levied against the referendum market value of all taxable property as defined in section
126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this
subdivision must be certified separately to the county auditor under section 275.07.

Subd. 11.

Referendum date.

(a) Except for a referendum held under paragraph (b),
any referendum under this section held on a day other than the first Tuesday after the first
Monday in November must be conducted by mail in accordance with section 204B.46.
Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum
conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b),
must be prepared and delivered by first-class mail at least 20 days before the referendum.

(b) In addition to the referenda allowed in subdivision 9, clause (a), the commissioner
may grant authority to a district to hold a referendum on a different day if the district is in
statutory operating debt and has an approved plan or has received an extension from the
department to file a plan to eliminate the statutory operating debt.

(c) The commissioner must approve, deny, or modify each district's request for a
referendum levy on a different day within 60 days of receiving the request from a district.

Subd. 13.

Referendum conversion allowance.

A school district that received
supplemental or transition revenue in fiscal year 2002 may convert its supplemental
revenue conversion allowance and transition revenue conversion allowance to additional
referendum allowance under subdivision 1 for fiscal year 2003 and thereafter. A majority
of the school board must approve the conversion at a public meeting before November 1,
2001. For a district with other referendum authority, the referendum conversion allowance
approved by the board continues until the portion of the district's other referendum
authority with the earliest expiration date after June 30, 2006, expires. For a district
with no other referendum authority, the referendum conversion allowance approved by
the board continues until June 30, 2012.

new text begin EFFECTIVE DATE. new text end

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

Sec. 49.

new text begin [126C.195] COMPENSATORY SUPPLEMENTAL FORMULA AID.
 new text end

new text begin A district that has an adjusted pupil unit count that is in the top 20 largest adjusted
pupil unit counts in the prior school year is eligible for the greater of zero or $1,400 times
the sum of the district's pupils eligible for free lunch and one-half of the district's pupils who
are eligible for reduced lunch in the prior school year, minus the amount of compensatory
education revenue received by the district under section 126C.10, subdivision 3, times .35.
 new text end

Sec. 50.

Minnesota Statutes 2012, section 126C.20, is amended to read:


126C.20 ANNUAL GENERAL EDUCATION AID APPROPRIATION.

There is annually appropriated from the general fund to the department the
amount necessary for general education aid under section 126C.13deleted text begin , the early graduation
achievement scholarship program under section 120B.08, and the early graduation
military service award program under section 120B.09deleted text end . This amount must be reduced by
the amount of any money specifically appropriated for the same purpose in any year
from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year 2014 and
later.
 new text end

Sec. 51.

Minnesota Statutes 2012, section 126C.40, subdivision 1, is amended to read:


Subdivision 1.

To lease building or land.

(a) When an independent or a special
school district or a group of independent or special school districts finds it economically
advantageous to rent or lease a building or land for any instructional purposes or for
school storage or furniture repair, and it determines that the operating capital revenue
authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may
apply to the commissioner for permission to make an additional capital expenditure levy
for this purpose. An application for permission to levy under this subdivision must contain
financial justification for the proposed levy, the terms and conditions of the proposed
lease, and a description of the space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under this subdivision must
include: the reasonableness of the price, the appropriateness of the space to the proposed
activity, the feasibility of transporting pupils to the leased building or land, conformity
of the lease to the laws and rules of the state of Minnesota, and the appropriateness of
the proposed lease to the space needs and the financial condition of the district. The
commissioner must not authorize a levy under this subdivision in an amount greater than
the cost to the district of renting or leasing a building or land for approved purposes.
The proceeds of this levy must not be used for custodial or other maintenance services.
A district may not levy under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this
subdivision for the purpose of leasing: (1) a newly constructed building used primarily
for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed
building addition or additions used primarily for regular kindergarten, elementary, or
secondary instruction that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the
purpose of leasing or renting a district-owned building or site to itself only if the amount
is needed by the district to make payments required by a lease purchase agreement,
installment purchase agreement, or other deferred payments agreement authorized by law,
and the levy meets the requirements of paragraph (c). A levy authorized for a district by
the commissioner under this paragraph may be in the amount needed by the district to
make payments required by a lease purchase agreement, installment purchase agreement,
or other deferred payments agreement authorized by law, provided that any agreement
include a provision giving the school districts the right to terminate the agreement
annually without penalty.

(e) The total levy under this subdivision for a district for any year must not exceed
deleted text begin $150deleted text end new text begin $162new text end times the deleted text begin residentdeleted text end new text begin adjustednew text end pupil units for the fiscal year to which the levy
is attributable.

(f) For agreements for which a review and comment have been submitted to the
Department of Education after April 1, 1998, the term "instructional purpose" as used in
this subdivision excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school district to exceed the
limit in paragraph (e) if the school district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed the limit in paragraph (e)
for not more than five years if the district meets the following criteria:

(1) the school district has been experiencing pupil enrollment growth in the
preceding five years;

(2) the purpose of the increased levy is in the long-term public interest;

(3) the purpose of the increased levy promotes colocation of government services; and

(4) the purpose of the increased levy is in the long-term interest of the district by
avoiding over construction of school facilities.

(h) A school district that is a member of an intermediate school district may include
in its authority under this section the costs associated with leases of administrative and
classroom space for intermediate school district programs. This authority must not
exceed deleted text begin $43deleted text end new text begin $46new text end times the adjusted deleted text begin marginal costdeleted text end pupil units of the member districts. This
authority is in addition to any other authority authorized under this section.

(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in
2012 to 2023, a district that is a member of the "Technology and Information Education
Systems" data processing joint board, that finds it economically advantageous to enter into
a lease agreement to finance improvements to a building and land for a group of school
districts or special school districts for staff development purposes, may levy for its portion
of lease costs attributed to the district within the total levy limit in paragraph (e). The total
levy authority under this paragraph shall not exceed $632,000.

(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the
purpose of leasing administrative space if the district can demonstrate to the satisfaction of
the commissioner that the lease cost for the administrative space is no greater than the
lease cost for instructional space that the district would otherwise lease. The commissioner
must deny this levy authority unless the district passes a resolution stating its intent to
lease instructional space under this section if the commissioner does not grant authority
under this paragraph. The resolution must also certify that the lease cost for administrative
space under this paragraph is no greater than the lease cost for the district's proposed
instructional lease.

new text begin EFFECTIVE DATE. new text end

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

Sec. 52.

Minnesota Statutes 2012, section 126C.40, subdivision 6, is amended to read:


Subd. 6.

Lease purchase; installment buys.

(a) Upon application to, and approval
by, the commissioner in accordance with the procedures and limits in subdivision 1,
paragraphs (a) and (b), a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease
real or personal property with an option to purchase under a lease purchase agreement, by
which installment contract or lease purchase agreement title is kept by the seller or vendor
or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the
installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase
agreement must not be included in the calculation of net debt for purposes of section
475.53, and does not constitute debt under other law. An election is not required in
connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to
acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) deleted text begin a school district which is eligible for revenue under section 124D.86, subdivision
3, clause (1), (2), or (3), and whosedeleted text end new text begin Special School District No. 1, Minneapolis,
Independent School District No. 625, St. Paul, Independent School District No. 709,
Duluth, or Independent School District No. 535, Rochester, if the district's desegregation
new text end plan has been determined by the commissioner to be in compliance with Department of
Education rules relating to equality of educational opportunity and deleted text begin school desegregation
and, for a district eligible for revenue under section 124D.86, subdivision 3, clause (4)
or (5),deleted text end where the acquisition of property under this subdivision is determined by the
commissioner to contribute to the implementation of the desegregation plan; or

(2) deleted text begin a school district that participates in a joint program for interdistrict desegregation
with a district defined in clause (1)deleted text end new text begin other districts eligible for revenue under section
124D.862 new text end if the facility acquired under this subdivision is to be primarily used for deleted text begin thedeleted text end new text begin a
new text end joint program new text begin for interdistrict desegregation new text end and the commissioner determines that the
joint programs are being undertaken to implement the districts' desegregation plan.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease
or rent a district-owned building to itself does not apply to levies otherwise authorized
by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building
or land shall include personal property.

Sec. 53.

Minnesota Statutes 2012, section 126C.44, is amended to read:


126C.44 SAFE SCHOOLSnew text begin SUPPLEMENTALnew text end LEVYnew text begin ; INTERMEDIATE
SCHOOL DISTRICTSnew text end .

deleted text begin (a) Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied
for all costs under this section shall be equal to $30 multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
used for directly funding the following purposes or for reimbursing the cities and counties
who contract with the district for the following purposes: (1) to pay the costs incurred for
the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
services in the district's schools; (2) to pay the costs for a drug abuse prevention program
as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
(3) to pay the costs for a gang resistance education training curriculum in the district's
schools; (4) to pay the costs for security in the district's schools and on school property; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
school social workers, licensed school psychologists, and licensed alcohol and chemical
dependency counselors to help provide early responses to problems. For expenditures
under clause (1), the district must initially attempt to contract for services to be provided
by peace officers or sheriffs with the police department of each city or the sheriff's
department of the county within the district containing the school receiving the services. If
a local police department or a county sheriff's department does not wish to provide the
necessary services, the district may contract for these services with any other police or
sheriff's department located entirely or partially within the school district's boundaries.
 deleted text end

deleted text begin (b)deleted text end A school district that is a member of an intermediate school district may deleted text begin include
in its authority under this sectiondeleted text end new text begin make a levy on all taxable property located within the
district fornew text end the costs associated with safe schools activities authorized under deleted text begin paragraph
(a) for intermediate school district programsdeleted text end new text begin section 126C.10, subdivision 2g, at an
intermediate school districtnew text end . This authority must not exceed deleted text begin $10deleted text end new text begin $11new text end times the adjusted
deleted text begin marginal costdeleted text end pupil units of the member districts. deleted text begin This authority is in addition to any other
authority authorized under this section.deleted text end Revenue raised under this deleted text begin paragraphdeleted text end new text begin section new text end must
be transferred to the intermediate school district.

Sec. 54.

Minnesota Statutes 2012, section 127A.47, subdivision 7, is amended to read:


Subd. 7.

Alternative attendance programs.

new text begin (a) new text end 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.

deleted text begin (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.
 deleted text end

deleted text begin (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.
 deleted text end

deleted text begin (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.
 deleted text end

deleted text begin (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.
 deleted text end

deleted text begin (e) For fiscal year 2007 and later, special education aid paid to a resident district must
be reduced by an amount equal todeleted text end new text begin (b) For purposes of this subdivision, the "unreimbursed
cost of providing special education and services" means the difference between:new text end (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 new text begin under section 125A.76 new text end 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.

new text begin (c) For fiscal year 2015 and later, special education aid paid to a resident district
must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
special education and services.
 new text end

new text begin (d) Notwithstanding paragraph (c), special education aid paid to a resident district
must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
education and services provided to students at an intermediate district, cooperative, or
charter school where the percent of students eligible for special education services is at
least 70 percent of the charter school's total enrollment.
 new text end

new text begin (e) new text end 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
new text begin under paragraphs (c) and (d)new text end . 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 deleted text begin (d) ordeleted text end (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 deleted text begin .0485deleted text end new text begin .0465new text end , calculated without compensatory revenue and transportation sparsity
revenue, times the number of pupil units for pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

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

Sec. 55.

Minnesota Statutes 2012, section 127A.47, subdivision 8, is amended to read:


Subd. 8.

Charter schools.

(a) The general education aid for districts must be
adjusted for each pupil attending a charter school under section 124D.10. The adjustments
must be made according to this subdivision.

(b) General education aid paid to a district in which a charter school not providing
transportation according to section 124D.10, subdivision 16, is located must be increased
by an amount equal to the sum ofdeleted text begin :
deleted text end

(1) the product of: (i) the sum of an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times deleted text begin .0485deleted text end new text begin .0465new text end , plus the
transportation sparsity allowance for the district; times (ii) the adjusted deleted text begin marginal cost
deleted text end pupil units attributable to the pupil; plus

(2) the product of $223 and the extended time marginal cost pupil units attributable
to the pupil.

new text begin EFFECTIVE DATE. new text end

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

Sec. 56.

Minnesota Statutes 2012, section 127A.51, is amended to read:


127A.51 STATEWIDE AVERAGE REVENUE.

By October 1 of each year the commissioner must estimate the statewide average
adjusted general revenue per adjusted deleted text begin marginal costdeleted text end pupil unit and the disparity in adjusted
general revenue among pupils and districts by computing the ratio of the 95th percentile
to the fifth percentile of adjusted general revenue. The commissioner must provide that
information to all districts.

If the disparity in adjusted general revenue as measured by the ratio of the 95th
percentile to the fifth percentile increases in any year, the commissioner shall recommend
to the legislature options for change in the general education formula that will limit the
disparity in adjusted general revenue to no more than the disparity for the previous
school year. The commissioner must submit the recommended options to the education
committees of the legislature by January 15.

For purposes of this section and section 126C.10, adjusted general revenue meansdeleted text begin :
deleted text end

deleted text begin (1) for fiscal year 2002, the sum of basic revenue under section 126C.10, subdivision
2; supplemental revenue under section 126C.10, subdivisions 9 and 12; transition revenue
under section 126C.10, subdivision 20; referendum revenue under section 126C.17; and
equity revenue under section 126C.10, subdivisions 24a and 24b; and
 deleted text end

deleted text begin (2) for fiscal year 2003 and later,deleted text end the sum of basic revenue under section 126C.10,
subdivision 2; referendum revenue under section 126C.17; and equity revenue under
section 126C.10, deleted text begin subdivisions 24a and 24bdeleted text end new text begin subdivision 24new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 57.

Minnesota Statutes 2012, section 128D.11, subdivision 3, is amended to read:


Subd. 3.

No election.

Subject to the provisions of subdivisions 7 to 10, the school
district may also by a two-thirds majority vote of all the members of its board of education
and without any election by the voters of the district, issue and sell in each calendar year
general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
2003, an amount not to exceed $7,500,000, and for calendar years 2004 to deleted text begin 2016deleted text end new text begin 2026,
new text end an amount not to exceed $15,000,000; with an additional provision that any amount of
bonds so authorized for sale in a specific year and not sold can be carried forward and
sold in the year immediately following).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
 new text end

Sec. 58.

Laws 2007, chapter 146, article 4, section 12, is amended to read:


Sec. 12. BONDING AUTHORIZATION.

To provide funds for the acquisition or betterment of school facilities, Independent
School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
the board of directors issue general obligation bonds in one or more series for calendar
years 2008 deleted text begin through 2016deleted text end new text begin to 2026new text end , as provided in this section. The aggregate principal
amount of any bonds issued under this section for each calendar year must not exceed
$15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or
475.59. The bonds must otherwise be issued as provided in Minnesota Statutes, chapter
475. The authority to issue bonds under this section is in addition to any bonding authority
authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
authority authorized under this section must be disregarded in calculating the bonding
limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
section 475.53, subdivision 4.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
 new text end

Sec. 59. new text begin SCHOOL DISTRICT LEVY ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rate adjustment. new text end

new text begin The commissioner of education must adjust
each school district tax rate established under Minnesota Statutes, chapters 120B to 127A,
by multiplying the rate by the ratio of the statewide total tax capacity for assessment year
2012 as it existed prior to the passage of Regular Session 2013 House File No. 677, or
a similarly styled bill passed in a special session, to the statewide total tax capacity for
assessment year 2012.
 new text end

new text begin Subd. 2. new text end

new text begin Equalizing factors. new text end

new text begin The commissioner of education must adjust each
school district equalizing factor established under Minnesota Statutes, chapters 120B to
127A, by dividing the equalizing factor by the ratio of the statewide total tax capacity for
assessment year 2012 as it existed prior to the passage of Regular Session 2013 House
File No. 677, or a similarly styled bill passed in a special session, to the statewide total tax
capacity for assessment year 2012.
 new text end

Sec. 60. new text begin APPROPRIATIONS.
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 General education aid. new text end

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

new text begin $
 new text end 		new text begin 6,045,457,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 6,351,602,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $781,842,000 for 2013 and $5,263,615,000 for
2014.
 new text end

new text begin The 2015 appropriation includes $857,828,000 for 2014 and $5,493,774,000 for
2015.
 new text end

new text begin Subd. 3. new text end

new text begin Enrollment options transportation. new text end

new text begin For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
 new text end

new text begin $
 new text end 		new text begin 44,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 48,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 4. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under Minnesota Statutes, section
127A.49:
 new text end

new text begin $
 new text end 		new text begin 2,722,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 3,133,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $301,000 for 2013 and $2,421,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $410,000 for 2014 and $2,723,000 for 2015.
 new text end

new text begin Subd. 5. new text end

new text begin Consolidation transition. new text end

new text begin For districts consolidating under Minnesota
Statutes, section 123A.485:
 new text end

new text begin $
 new text end 		new text begin 468,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 479,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $40,000 for 2013 and $428,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $72,000 for 2014 and $407,000 for 2015.
 new text end

new text begin Subd. 6. new text end

new text begin Nonpublic pupil education aid. new text end

new text begin For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:
 new text end

new text begin $
 new text end 		new text begin 15,376,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 15,879,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $2,099,000 for 2013 and $13,277,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $2,251,000 for 2014 and $13,628,000 for 2015.
 new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil transportation. new text end

new text begin For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:
 new text end

new text begin $
 new text end 		new text begin 18,322,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 18,607,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $2,668,000 for 2013 and $15,654,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $2,654,000 for 2014 and $15,953,000 for 2015.
 new text end

new text begin Subd. 8. new text end

new text begin One-room schoolhouse. new text end

new text begin For a grant to Independent School District No.
690, Warroad, to operate the Angle Inlet School:
 new text end

new text begin $
 new text end 		new text begin 65,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 65,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 9. new text end

new text begin Compensatory supplemental formula aid. new text end

new text begin For grants for compensatory
pilot project formula aid as calculated under Minnesota Statutes, section 126C.195:
 new text end

new text begin $
 new text end 		new text begin 6,278,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 4,924,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $2,109,000 for 2013 and $4,169,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $706,000 for 2014 and $4,218,000 for 2015.
 new text end

new text begin Subd. 10. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50, as amended by Laws 2007, chapter 146, article 1, section 21:
 new text end

new text begin $
 new text end 		new text begin 2,325,000
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 2,325,000
 new text end 		new text begin 2015
 new text end

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

Sec. 61. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2012, sections 120B.08; and 120B.09, new text end new text begin are repealed for fiscal
year 2014 and later.
 new text end

new text begin (b) Minnesota Statutes 2012, sections 126C.10, subdivisions 13a, 13b, 25, 26, 28,
31a, 31b, 31c, 34, 35, and 36; 126C.17, subdivision 13; and 127A.50, subdivisions 1 and
5, new text end new text begin are repealed for fiscal year 2015 and later.
 new text end

ARTICLE 2

STUDENT ACCOUNTABILITY

Section 1.

Minnesota Statutes 2012, section 120B.02, is amended to read:


120B.02 EDUCATIONAL EXPECTATIONS new text begin AND GRADUATION
REQUIREMENTS new text end FOR MINNESOTA'S STUDENTS.

new text begin Subdivision 1. new text end

new text begin Educational expectations. new text end

(a) The legislature is committed to
establishing rigorous academic standards for Minnesota's public school students. To
that end, the commissioner shall adopt in rule statewide academic standards. The
commissioner shall not prescribe in rule or otherwise the delivery system, classroom
assessments, or form of instruction that school sites must use. deleted text begin For purposes of this chapter,
a school site is a separate facility, or a separate program within a facility that a local school
board recognizes as a school site for funding purposes.
deleted text end

(b) All commissioner actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and
schools;

(2) any state action regarding the rule must evidence consideration of school district
autonomy; and

(3) the Department of Education, with the assistance of school districts, must make
available information about all state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is appropriate, comprehensive, and
readily understandable.

deleted text begin (c) When fully implemented, the requirements for high school graduation in
Minnesota must require students to satisfactorily complete, as determined by the school
district, the course credit requirements under section 120B.024, all state academic
standards or local academic standards where state standards do not apply, and successfully
pass graduation examinations as required under section 120B.30.
 deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end The commissioner shall periodically review and report on the state's
assessment process.

deleted text begin (e)deleted text end new text begin (d)new text end School districts are not required to adopt specific provisions of the federal
School-to-Work programs.

new text begin Subd. 2. new text end

new text begin Graduation requirements. new text end

new text begin To graduate from high school, students must
demonstrate to their enrolling school district or school their satisfactory completion of the
credit requirements under section 120B.024 and their attainment of academic standards
and career and college readiness benchmarks on a nationally normed college entrance
exam under section 120B.30. A school district must adopt graduation requirements that
meet or exceed state graduation requirements established in law or rule.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2013, and applies to
students entering grade 8 in the 2013-2014 school year and later.
 new text end

Sec. 2.

Minnesota Statutes 2012, section 120B.125, is amended to read:


120B.125 PLANNING FOR STUDENTS' SUCCESSFUL TRANSITION
TO POSTSECONDARY EDUCATION AND EMPLOYMENT; INVOLUNTARY
CAREER TRACKING PROHIBITED.

(a) Consistent with sections 120B.128, 120B.13, 120B.131, 120B.132, 120B.14,
120B.15, new text begin 120B.30, subdivision 1, paragraph (c), new text end 125A.08, and other related sections,
school districts deleted text begin are strongly encouraged todeleted text end new text begin , beginning in the 2013-2014 school year, must
new text end assist all students by no later than grade 9 to explore their college and career interests and
aspirations and develop a plan for a smooth and successful transition to postsecondary
education or employment. All students' plans must be designed to:

(1) provide a comprehensive academic plan for completing a college and
career-ready curriculum premised on meeting state and local academic standards and
developing 21st century skills such as team work, collaboration, and good work habits;

(2) emphasize academic rigor and high expectations;

(3) help students identify personal learning styles that may affect their postsecondary
education and employment choices;

(4) help students deleted text begin succeed at gainingdeleted text end new text begin gainnew text end access to postsecondary education and
career options;

(5) integrate strong academic content into career-focused courses and integrate
relevant career-focused courses into strong academic content;

(6) help students and families identify and gain access to appropriate counseling
and other supports and assistance that enable students to complete required coursework,
prepare for postsecondary education and careers, and obtain information about
postsecondary education costs and eligibility for financial aid and scholarship;

(7) help students and families identify collaborative partnerships of kindergarten
through grade 12 schools, postsecondary institutions, economic development agencies, and
employers that support students' transition to postsecondary education and employment
and provide students with experiential learning opportunities; and

(8) be reviewed and revised at least annually by the student, the student's parent or
guardian, and the school or district to ensure that the student's course-taking schedule
keeps the student deleted text begin "on track"deleted text end new text begin making adequate progressnew text end to meet state and local high school
graduation requirements and with a reasonable chance to succeed with employment or
postsecondary education without the need to first complete remedial course work.

(b) A school district may develop grade-level curricula or provide instruction that
introduces students to various careers, but must not require any curriculum, instruction,
or employment-related activity that obligates an elementary or secondary student to
involuntarily select a career, career interest, employment goals, or related job training.

deleted text begin (c) School districts are encouraged to seek and use revenue and in-kind contributions
from nonstate sources and to seek administrative cost savings through innovative local
funding arrangements, such as the Collaboration Among Rochester Educators (CARE)
model for funding postsecondary enrollment options, among other sources, for purposes
of implementing this section.
 deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 3.

Minnesota Statutes 2012, section 120B.128, is amended to read:


120B.128 EDUCATIONAL PLANNING AND ASSESSMENT SYSTEM
(EPAS) PROGRAM.

(a) School districts and charter schools may elect to participate in the Educational
Planning and Assessment System (EPAS) program offered by ACT, Inc. to provide a
longitudinal, systematic approach to student educational and career planning, assessment,
instructional support, and evaluation. The EPAS achievement tests include English,
reading, mathematics, science, and components on planning for high school and
postsecondary education, interest inventory, needs assessments, and student education
plans. These tests are linked to the ACT assessment for college admission and allow
students, parents, teachers, and schools to determine the student's college readiness before
grades 11 and 12.

(b) The commissioner of education shall provide ACT Explore tests for students
in grade 8 and the ACT Plan test for students in grade 10 to assess individual student
academic strengths and weaknesses, academic achievement and progress, higher order
thinking skills, and college readiness.

new text begin (c) Students enrolled in grade 8 through the 2012-2013 school year who have
not yet demonstrated proficiency on the Minnesota comprehensive assessments, the
graduation-required assessments for diploma, or the basic skills testing requirements
prior to high school graduation may satisfy state high school graduation requirements for
assessments in reading, mathematics, and writing by taking the WorkKeys job skills
assessment, a computer-adaptive college placement test, or the ACT assessment for
college admission.
 new text end

new text begin (d)new text end The state shall pay the test costs for deleted text begin school districts and charter schools that
choose to participate in the EPAS programdeleted text end new text begin public school students to participate in the
assessments under this sectionnew text end . The commissioner shall establish an application procedure
and a process for state payment of costs.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies through the 2013-2014 school year.
 new text end

Sec. 4.

Minnesota Statutes 2012, section 120B.30, subdivision 1, is amended to read:


Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent
with subdivision 1a, shall include in the comprehensive assessment system, for each
grade level to be tested, state-constructed tests developed deleted text begin from anddeleted text end new text begin as computer-adaptive
reading and mathematics assessments for students that arenew text end aligned with the state's required
academic standards under section 120B.021, include multiple choice questions, and deleted text begin be
deleted text end new text begin arenew text end administered annually to all students in grades 3 through deleted text begin 8deleted text end new text begin 7new text end . State-developed high
school tests aligned with the state's required academic standards under section 120B.021
and administered to all high school students in a subject other than writing must include
multiple choice questions. The commissioner shall establish one or more months during
which schools shall administer the tests to students each school year. deleted text begin For students enrolled
in grade 8 before the 2005-2006 school year, Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills testing requirements for a passing
state notation. The passing scores of basic skills tests in reading and mathematics are the
equivalent of 75 percent correct for students entering grade 9 based on the first uniform test
administered in February 1998. Students who have not successfully passed a Minnesota
basic skills test by the end of the 2011-2012 school year must pass the graduation-required
assessments for diploma under paragraph (c), except that for the 2012-2013 and 2013-2014
school years only, these students may satisfy the state's graduation test requirement for
math by complying with paragraph (d), clauses (1) and (3)deleted text end new text begin For students enrolled in grade 8
in the 2005-2006 through 2012-2013 school years, students' state graduation requirements
include the requirements under: (i) section 120B.128, paragraph (c); or (ii) paragraph (c)new text end .

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

(1) mathematics;

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

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

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

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

(c) For students enrolled in grade 8 in the deleted text begin 2005-2006deleted text end new text begin 2013-2014new text end school year and
later, deleted text begin only the following options shall fulfilldeleted text end students' state graduation deleted text begin testdeleted text end requirementsnew text begin ,
based on a longitudinal, systematic approach to student education and career planning,
assessment, instructional support, and evaluation, include the followingnew text end :

deleted text begin (1) for reading and mathematics:
 deleted text end

deleted text begin (i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;
 deleted text end

deleted text begin (ii) achieving a passing score as determined through a standard setting process
on the state-identified language proficiency test in reading and the mathematics test for
English learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English learners;
 deleted text end

deleted text begin (iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program or 504 plan;
 deleted text end

deleted text begin (iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individualized education program; or
 deleted text end

deleted text begin (v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individualized education program; and
 deleted text end

deleted text begin (2) for writing:
 deleted text end

deleted text begin (i) achieving a passing score on the graduation-required assessment for diploma;
 deleted text end

deleted text begin (ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
learners;
 deleted text end

deleted text begin (iii) achieving an individual passing score on the graduation-required assessment for
diploma as determined by appropriate state guidelines for students with an individualized
education program or 504 plan; or
 deleted text end

deleted text begin (iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individualized education program.
 deleted text end

new text begin (1) attainment of required academic standards and career and college readiness
benchmarks under section 120B.023 as demonstrated on a nationally normed college
entrance exam;
 new text end

new text begin (2) achievement and career and college readiness tests in mathematics, reading, and
writing, consistent with paragraph (e) and, to the extent available, to monitor students'
continuous development of and growth in requisite knowledge and skills; analyze
students' progress and performance levels, identifying students' academic strengths and
diagnosing areas where students require curriculum or instructional adjustments, targeted
interventions, or remediation; and, based on analysis of students' progress and performance
data, determine students' learning and instructional needs and the instructional tools and
best practices that support academic rigor for the student; and
 new text end

new text begin (3) consistent with this paragraph and section 120B.125, age-appropriate exploration
and planning activities and career assessments to encourage students to identify personally
relevant career interests and aptitudes and help students and their families develop a
regularly reexamined transition plan for postsecondary education or employment without
need for postsecondary remediation.
 new text end

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

new text begin Expectations of schools, districts, and the state for career or college readiness under
this subdivision must be comparable in rigor, clarity of purpose, and rates of student
completion. A student under clause (2) must receive targeted, relevant, academically
rigorous, and resourced instruction, which may include a targeted instruction and
intervention plan focused on improving the student's knowledge and skills in core subjects
so that the student has a reasonable chance to succeed in a career or college without need
for postsecondary remediation. Consistent with sections 120B.13, 124D.09, 124D.091,
124D.49, and related sections, an enrolling school or district must actively encourage a
student in grade 11 or 12 who is identified as academically ready for a career or college
to participate in courses and programs awarding college credit to high school students.
Students are not required to achieve a specified score or level of proficiency on an
assessment under this subdivision to graduate from high school.
 new text end

(d) deleted text begin Students enrolled in grade 8 in any school year from the 2005-2006 school
year to the 2009-2010 school year who do not pass the mathematics graduation-required
assessment for diploma under paragraph (c) are eligible to receive a high school diploma
if they:
deleted text end

deleted text begin (1) complete with a passing score or grade all state and local coursework and credits
required for graduation by the school board granting the students their diploma;
 deleted text end

deleted text begin (2) participate in district-prescribed academic remediation in mathematics; and
 deleted text end

deleted text begin (3) fully participate in at least two retests of the mathematics GRAD test or until
they pass the mathematics GRAD test, whichever comes first. deleted text end new text begin To improve the secondary
and postsecondary outcomes of all students, the alignment between secondary and
postsecondary education programs and Minnesota's workforce needs, and the efficiency
and cost-effectiveness of secondary and postsecondary programs, the commissioner, after
consulting with the chancellor of the Minnesota State Colleges and Universities and using
a request for proposal process, shall contract for a series of assessments that are consistent
with this subdivision, aligned with state academic standards, and include career and
college readiness benchmarks. Mathematics, reading, and writing assessments for students
in grades 8 and 10 must be predictive of and aligned with a nationally normed assessment
for career and college readiness. This nationally recognized assessment must be a college
entrance exam and given to students in grade 11 or 12. This series of assessments must
include a college placement diagnostic exam and contain career exploration elements. The
commissioner and the chancellor of the Minnesota State Colleges and Universities must
collaborate in aligning instruction and assessments for adult basic education students to
provide the students with diagnostic information about any targeted interventions they
need so that they may seek postsecondary education or employment without need for
postsecondary remediation.
 new text end

new text begin (1) Districts and schools, on an annual basis, must use the career exploration
elements in these assessments to help students, beginning no later than grade 9, and their
families explore and plan for postsecondary education or careers based on the students'
interests, aptitudes, and aspirations. Districts and schools must use timely regional labor
market information and partnerships, among other resources, to help students and their
families successfully develop, pursue, review, and revise an individualized plan for
postsecondary education or a career. This process must help increase students' engagement
in and connection to school, improve students' knowledge and skills, and deepen students'
understanding of career pathways as a sequence of academic and career courses that lead
to an industry-recognized credential, an associate's degree, or a bachelor's degree and are
available to all students, whatever their interests and career goals.
 new text end

new text begin (2) Students who, based on their growth in academic achievement between grades 8
and 10, show adequate progress toward meeting state career and college readiness must be
given the college entrance exam part of these assessments in grade 11. A student under
this clause who demonstrates attainment of required state academic standards, which
include career and college readiness benchmarks, on these assessments is academically
ready for a career or college and is encouraged to participate in courses and programs
awarding college credit to high school students. Such courses and programs may include
sequential courses of study within broad career areas and technical skill assessments
that extend beyond course grades.
 new text end

new text begin (3) All students in grade 11 not subject to clause (2) must be given the college
placement diagnostic exam so that the students, their families, the school, and the district
can use the results to diagnose areas for targeted instruction, intervention, or remediation
and improve students' knowledge and skills in core subjects sufficient for the student
to graduate and have a reasonable chance to succeed in a career or college without
remediation. These students must be given the college entrance exam part of these
assessments in grade 12.
 new text end

new text begin (4) A student in clause (3) who demonstrates: (i) attainment of required state
academic standards, which include career and college readiness benchmarks, on these
assessments; (ii) attainment of career and college readiness benchmarks on the college
placement diagnostic part of these assessments; and, where applicable, (iii) successfully
completes targeted instruction, intervention, or remediation approved by the commissioner
and the chancellor of the Minnesota State Colleges and Universities after consulting with
local school officials and educators, is academically ready for a career or college and is
encouraged to participate in courses and programs awarding college credit to high school
students. Such courses and programs may include sequential courses of study within
broad career areas and technical skill assessments that extend beyond course grades.
 new text end

new text begin (5) A study to determine the alignment between these assessments and state
academic standards under this chapter must be conducted. Where alignment exists, the
commissioner must seek federal approval to, and immediately upon receiving approval,
replace the federally required assessments referenced under subdivision 1a and section
120B.35, subdivision 2, with assessments under this paragraph.
 new text end

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

new text begin (f)new text end A school, district, or charter school must deleted text begin placedeleted text end new text begin recordnew text end on the high school
transcript a student's deleted text begin current pass status for each subject that has a required graduation
assessmentdeleted text end new text begin progress toward career and college readinessnew text end .

deleted text begin In addition,deleted text end new text begin (g)new text end The school board granting deleted text begin thedeleted text end students their diplomas may formally
decide to include a notation of high achievement on the high school diplomas of those
graduating seniors who, according to established school board criteria, demonstrate
exemplary academic achievement during high school.

deleted text begin (e)deleted text end new text begin (h)new text end The 3rd through deleted text begin 8thdeleted text end new text begin 7thnew text end gradenew text begin computer-adaptive assessment resultsnew text end and
high school test results shall be available to districts for diagnostic purposes affecting
student learning and district instruction and curriculum, and for establishing educational
accountability. new text begin The commissioner must establish empirically derived benchmarks on
adaptive assessments in grades 3 through 7 that reveal a trajectory toward career and
college readiness. new text end The commissioner must disseminate to the public thenew text begin computer-adaptive
assessments andnew text end high school test results upon receiving those results.

deleted text begin (f)deleted text end new text begin (i)new text end The deleted text begin 3rd through 8th gradedeleted text end new text begin grades 3 through 7 computer-adaptive assessments
new text end and high school tests must be aligned with state academic standards. The commissioner
shall determine the testing process and the order of administration. The statewide results
shall be aggregated at the site and district level, consistent with subdivision 1a.

deleted text begin (g) In addition to the testing and reporting requirements under this section,deleted text end new text begin (j)new text end The
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide deleted text begin testingdeleted text end new text begin computer-adaptive assessmentsnew text end of all students in
grades 3 through deleted text begin 8deleted text end new text begin 7new text end andnew text begin testingnew text end at the high school level that provides appropriate,
technically sound accommodations deleted text begin or alternate assessmentsdeleted text end ;

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2013-2014 school year and later, except that paragraph (a) applies
the day following final enactment and the requirements for using computer-adaptive
mathematics and reading assessments for grades 3 through 7 apply in the 2015-2016
school year and later.
 new text end

Sec. 5.

Minnesota Statutes 2012, section 120B.30, subdivision 1a, is amended to read:


Subd. 1a.

Statewide and local assessments; results.

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

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

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

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

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

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

new text begin (b) The commissioner must use fully adaptive mathematics and reading assessments
for grades 3 through 7 beginning in the 2015-2016 school year and later.
 new text end

new text begin (c)new text end For purposes of conforming with existing federal educational accountability
requirements, the commissioner must developnew text begin and implement computer-adaptivenew text end reading
and mathematics assessments for grades 3 through deleted text begin 8deleted text end new text begin 7new text end , state-developed high school
reading and mathematics tests aligned with state academic standards, and science
assessments under clause (2) that districts and sites must use to monitor student growth
toward achieving those standards. The commissioner must not develop statewide
assessments for academic standards in social studies, health and physical education, and
the arts. The commissioner must require:

(1) annualnew text begin computer-adaptivenew text end reading and mathematics assessments in grades 3
through deleted text begin 8deleted text end new text begin 7new text end , and high school reading and mathematics tests; and

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

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

new text begin (1) individual student performance data and achievement reports are available within
three school days of when students take an assessment;
 new text end

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

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

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

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

deleted text begin (c)deleted text end new text begin (f)new text end Reporting of assessment results must:

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

(2) include a value-added growth indicator of student achievement under section
120B.35, subdivision 3, paragraph (b); and

(3)deleted text begin (i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and
deleted text end

deleted text begin (ii) for students enrolled in grade 8 in the 2005-2006 school year and later,deleted text end determine
whether students have met the state's academic standards.

deleted text begin (d)deleted text end new text begin (g)new text end Consistent with applicable federal law deleted text begin and subdivision 1, paragraph (d),
clause (1)deleted text end , the commissioner must include appropriate, technically sound accommodations
or alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for English learners.

deleted text begin (e)deleted text end new text begin (h) new text end A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
deleted text begin proficiencydeleted text end new text begin progress toward career and college readinessnew text end in the context of the state's deleted text begin grade
leveldeleted text end academic standards. deleted text begin If a state assessment is not available, a school, school district,
and charter school must determine locally if a student has met the required academic
standards.deleted text end A school, school district, or charter school may use a student's performance
on a statewide assessment as one of multiple criteria to determine grade promotion or
retention. A school, school district, or charter school may use a high school student's
performance on a statewide assessment as a percentage of the student's final grade in a
course, or place a student's assessment score on the student's transcript.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013-2014 school year and
later except the requirements for using computer-adaptive mathematics and reading
assessments for grades 3 through 7 apply in the 2015-2016 school year and later.
 new text end

Sec. 6.

Minnesota Statutes 2012, section 120B.36, subdivision 1, is amended to read:


Subdivision 1.

School performance deleted text begin report cardsdeleted text end new text begin reportsnew text end .

(a) The commissioner
shall report student academic performance under section 120B.35, subdivision 2; the
percentages of students showing low, medium, and high growth under section 120B.35,
subdivision 3, paragraph (b); school safety and student engagement and connection
under section 120B.35, subdivision 3, paragraph (d); rigorous coursework under section
120B.35, subdivision 3, paragraph (c);new text begin the percentage of students whose progress and
performance levels are meeting career and college readiness benchmarks under section
120B.30, subdivision 1;new text end two separate student-to-teacher ratios that clearly indicate the
definition of teacher consistent with sections 122A.06 and 122A.15 for purposes of
determining these ratios; staff characteristics excluding salaries; student enrollment
demographics; district mobility; and extracurricular activities. The report also must
indicate a school's adequate yearly progress statusnew text begin under applicable federal lawnew text end , and must
not set any designations applicable to high- and low-performing schools due solely to
adequate yearly progress status.

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance deleted text begin report cardsdeleted text end new text begin reportsnew text end .

(c) The commissioner must make available performance deleted text begin report cardsdeleted text end new text begin reportsnew text end by the
beginning of each school year.

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance deleted text begin report carddeleted text end data are nonpublic data under section 13.02,
subdivision 9, until the commissioner publicly releases the data. The commissioner shall
annually post school performance deleted text begin report cardsdeleted text end new text begin reportsnew text end to the department's public Web
site no later than September 1, except that in years when the deleted text begin report card reflectsdeleted text end new text begin reports
reflectnew text end new performance standards, the commissioner shall post the school performance
deleted text begin report cardsdeleted text end new text begin reportsnew text end no later than October 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013-2014 school year and
later.
 new text end

Sec. 7. new text begin STATEWIDE ASSESSMENT AND ACCOUNTABILITY; TRANSITION.
new text end

new text begin Notwithstanding other law to the contrary, students enrolled in grade 8 in the
2005-2006 through 2012-2013 school years are eligible to be assessed under the amended
provisions of Minnesota Statutes, section 120B.30, subdivision 1, to the extent such
assessments are available or under Minnesota Statutes, section 120B.128, paragraph (c).
Other measures of statewide accountability, including student performance, preparation,
rigorous course taking, engagement and connection, and transition into postsecondary
education or the workforce remain in effect.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 8. new text begin CAREER PATHWAYS ADVISORY TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Recommendations. new text end

new text begin (a) A career pathways advisory task force
is established to recommend to the Minnesota legislature, consistent with Minnesota
Statutes, sections 120B.30, subdivision 1, and 120B.35, subdivision 3, how to structurally
redesign secondary and postsecondary education to:
 new text end

new text begin (1) improve secondary and postsecondary outcomes for students and adult learners;
 new text end

new text begin (2) align secondary and postsecondary education programs serving students and
adult learners;
 new text end

new text begin (3) align secondary and postsecondary education programs and Minnesota's
workforce needs; and
 new text end

new text begin (4) measure and evaluate the combined efficacy of Minnesota's public kindergarten
through grade 12 and postsecondary education programs.
 new text end

new text begin (b) Advisory task force members, in preparing these recommendations, must
seek the advice of education providers, employers, policy makers, and other interested
stakeholders and must at least consider how to:
 new text end

new text begin (1) better inform students about career options, occupational trends, and educational
paths leading to viable and rewarding careers and reduce the gap between the demand for
and preparation of a skilled Minnesota workforce;
 new text end

new text begin (2) in consultation with a student's family, develop and periodically adapt, as
needed, an education and work plan for each student aligned with the student's personal
and professional interests, abilities, skills, and aspirations;
 new text end

new text begin (3) improve monitoring of high school students' progress with targeted interventions
and support and remove the need for remedial instruction;
 new text end

new text begin (4) increase and accelerate opportunities for secondary school students to earn
postsecondary credits leading to a certificate, industry license, or degree;
 new text end

new text begin (5) better align high school courses and expectations and postsecondary
credit-bearing courses;
 new text end

new text begin (6) better align high school standards and assessments, postsecondary readiness
measures and entrance requirements, and the expectations of Minnesota employers;
 new text end

new text begin (7) increase the rates at which students complete a postsecondary certificate,
industry license, or degree; and
 new text end

new text begin (8) provide graduates of two-year and four-year postsecondary institutions with the
foundational skills needed for civic engagement, ongoing employment, and continuous
learning.
 new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The Career Pathways Advisory Task Force shall have 15
members appointed by July 15, 2013, as follows:
 new text end

new text begin (1) one member appointed by the Minnesota Association of Career and Technical
Administrators;
 new text end

new text begin (2) one member appointed by the Minnesota Association for Career and Technical
Education;
 new text end

new text begin (3) one member appointed by the University of Minnesota who is a faculty member
working to develop career and technical educators in Minnesota;
 new text end

new text begin (4) one member appointed by the Minnesota State Colleges and Universities who is
a faculty member working to develop career and technical educators in Minnesota;
 new text end

new text begin (5) one member appointed by the National Research Center for Career and Technical
Education;
 new text end

new text begin (6) one member appointed by the Minnesota Department of Education;
 new text end

new text begin (7) one member appointed by the Minnesota Board of Teaching;
 new text end

new text begin (8) one member appointed by the Minnesota Association of Colleges for Teacher
Education;
 new text end

new text begin (9) one member appointed by the Minnesota State Colleges and Universities from
faculty for foundational skills and general education; and
 new text end

new text begin (10) six members appointed by the commissioner of education who have expertise in
any of the areas with which the task force has been charged in subdivision 1.
 new text end

new text begin Subd. 3. new text end

new text begin Terms. new text end

new text begin Each member shall serve until the task force sunsets, unless
replaced by their appointing authority.
 new text end

new text begin Subd. 4. new text end

new text begin First meeting; acting chair; chair. new text end

new text begin The commissioner of education shall
convene the first meeting by August 15, 2013, and shall act as chair until the task force
elects a chair from among its members at the first meeting.
 new text end

new text begin Subd. 5. new text end

new text begin Compensation. new text end

new text begin The task force members shall not be compensated and
their expenses shall not be reimbursed.
 new text end

new text begin Subd. 6. new text end

new text begin Staff; technical assistance. new text end

new text begin The commissioner of education, on request
by the task force, will provide technical assistance and provide staff assistance sufficient
for the task force to carry out its duties.
 new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin By February 15, 2014, the task force shall submit a written
report describing its recommendations to the chairs and ranking minority members of the
legislative committees and divisions with primary jurisdiction over kindergarten through
grade 12 education.
 new text end

new text begin Subd. 8. new text end

new text begin Sunset. new text end

new text begin The task force expires the day after the task force reports to the
legislature, or February 15, 2014, whichever is earlier.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 9. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota 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 Statewide testing and reporting system. new text end

new text begin For the statewide testing and
reporting system under Minnesota Statutes, section 120B.30:
 new text end

new text begin $
 new text end 		new text begin 16,518,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 19,198,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

Sec. 10. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 3501.0010; 3501.0020; 3501.0030, subparts 1, 2, 3, 4, 5,
6, 7, 9, 10, 11, 12, 13, 14, 15, and 16; 3501.0040; 3501.0050; 3501.0060; 3501.0090;
3501.0100; 3501.0110; 3501.0120; 3501.0130; 3501.0140; 3501.0150; 3501.0160;
3501.0170; 3501.0180; 3501.0200; 3501.0210; 3501.0220; 3501.0230; 3501.0240;
3501.0250; 3501.0270; 3501.0280, subparts 1 and 2; 3501.0290; 3501.1000; 3501.1020;
3501.1030; 3501.1040; 3501.1050; 3501.1110; 3501.1120; 3501.1130; 3501.1140;
3501.1150; 3501.1160; 3501.1170; 3501.1180; and 3501.1190, new text end new text begin are repealed effective the
day following final enactment.
 new text end

ARTICLE 3

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2012, section 120A.22, subdivision 5, is amended to read:


Subd. 5.

Ages and terms.

(a) Every child between seven and deleted text begin 16deleted text end new text begin 17 new text end years of age must
receive instruction new text begin unless the child has graduatednew text end . Every child under the age of seven who
is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days,
or other kindergarten programs shall receive instruction. Except as provided in subdivision
6, a parent may withdraw a child under the age of seven from enrollment at any time.

(b) A school district by annual board action may require children subject to this
subdivision to receive instruction in summer school. A district that acts to require children
to receive instruction in summer school shall establish at the time of its action the criteria
for determining which children must receive instruction.

new text begin (c) A pupil 16 years of age or older who meets the criteria of section 124D.68,
subdivision 2, may be assigned to an area learning center. Such assignment may be made
only after consultation with the principal, area learning center director, and parent or
guardian.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
 new text end

Sec. 2.

Minnesota Statutes 2012, section 120A.22, subdivision 8, is amended to read:


Subd. 8.

Withdrawal from school.

Any student deleted text begin between 16 and 18deleted text end new text begin who is 17 new text end years
old who seeks to withdraw from school, and the student's parent or guardian must:

(1) attend a meeting with school personnel to discuss the educational opportunities
available to the student, including alternative educational opportunities; and

(2) sign a written election to withdraw from school.

Sec. 3.

Minnesota Statutes 2012, section 120A.22, subdivision 11, is amended to read:


Subd. 11.

Assessment of performance.

(a) Each year the performance of every
child ages seven through 16 new text begin and every child ages 16 through 17 for which an initial
report was filed pursuant to section 120A.24, subdivision 1, after the child is 16 and new text end who
is not enrolled in a public school must be assessed using a nationally norm-referenced
standardized achievement examination. The superintendent of the district in which the
child receives instruction and the person in charge of the child's instruction must agree about
the specific examination to be used and the administration and location of the examination.

(b) To the extent the examination in paragraph (a) does not provide assessment in
all of the subject areas in subdivision 9, the parent must assess the child's performance
in the applicable subject area. This requirement applies only to a parent who provides
instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).

(c) If the results of the assessments in paragraphs (a) and (b) indicate that the
child's performance on the total battery score is at or below the 30th percentile or one
grade level below the performance level for children of the same age, the parent must
obtain additional evaluation of the child's abilities and performance for the purpose of
determining whether the child has learning problems.

(d) A child receiving instruction from a nonpublic school, person, or institution that
is accredited by an accrediting agency, recognized according to section 123B.445, or
recognized by the commissioner, is exempt from the requirements of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
 new text end

Sec. 4.

Minnesota Statutes 2012, section 120A.24, subdivision 1, is amended to read:


Subdivision 1.

Reports to superintendent.

(a) The person or nonpublic school in
charge of providing instruction to a child must submit to the superintendent of the district
in which the child resides the name, birth date, and address of the child; the annual tests
intended to be used under section 120A.22, subdivision 11, if required; the name of each
instructor; and evidence of compliance with one of the requirements specified in section
120A.22, subdivision 10:

(1) by October 1 of the first school year the child receives instruction after reaching
the age of seven;

(2) within 15 days of when a parent withdraws a child from public school after
age seven to provide instruction in a nonpublic school that is not accredited by a
state-recognized accredited agency;

(3) within 15 days of moving out of a district; and

(4) by October 1 after a new resident district is established.

(b) The person or nonpublic school in charge of providing instruction to a child
between the ages of seven and 16 new text begin and every child ages 16 through 17 for which an
initial report was filed pursuant to this subdivision after the child is 16 new text end must submit, by
October 1 of each school year, a letter of intent to continue to provide instruction under
this section for all students under the person's or school's supervision and any changes to
the information required in paragraph (a) for each student.

(c) The superintendent may collect the required information under this section
through an electronic or Web-based format, but must not require electronic submission of
information under this section from the person in charge of reporting under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
 new text end

Sec. 5.

Minnesota Statutes 2012, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Basic alternative teacher compensation aid. new text end

new text begin (a) For fiscal year 2015
and later, the basic alternative teacher compensation aid for a school with a plan approved
under section 122A.414, subdivision 2b, equals 65 percent of the alternative teacher
compensation revenue under subdivision 1. The basic alternative teacher compensation
aid for an intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous year, or on
October 1 of the current year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under subdivision 1.
 new text end

new text begin (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed $75,636,000 for fiscal year 2015
and later. The commissioner must limit the amount of alternative teacher compensation
aid approved under this section so as not to exceed these limits.
 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. 6.

Minnesota Statutes 2012, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Alternative teacher compensation levy. new text end

new text begin For fiscal year 2015 and later,
the alternative teacher compensation levy for a district receiving basic alternative teacher
compensation aid equals the product of (1) the difference between the district's alternative
teacher compensation revenue and the district's basic alternative teacher compensation
aid, times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per
adjusted pupil unit to $6,742.
 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. 7.

Minnesota Statutes 2012, section 122A.415, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Alternative teacher compensation equalization aid. new text end

new text begin (a) For fiscal year
2015 and later, a district's alternative teacher compensation equalization aid equals the
district's alternative teacher compensation revenue minus the district's basic alternative
teacher compensation aid minus the district's alternative teacher compensation levy. If a
district does not levy the entire amount permitted, the alternative teacher compensation
equalization aid must be reduced in proportion to the actual amount levied.
 new text end

new text begin (b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.
 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. 8.

Minnesota Statutes 2012, section 124D.03, subdivision 12, is amended to read:


Subd. 12.

Termination of enrollment.

A district may terminate the enrollment
of a nonresident student enrolled under this section or section 124D.08 at the end of a
school year if the student meets the definition of a habitual truant under section 260C.007,
subdivision 19, the student has been provided appropriate services under chapter 260A,
and the student's case has been referred to juvenile court. A district may also terminate the
enrollment of a nonresident student over the age of deleted text begin 16deleted text end new text begin 17new text end enrolled under this section if the
student is absent without lawful excuse for one or more periods on 15 school days and has
not lawfully withdrawn from school under section 120A.22, subdivision 8.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
 new text end

Sec. 9.

Minnesota Statutes 2012, section 124D.128, subdivision 2, is amended to read:


Subd. 2.

Commissioner designation.

(a) A state-approved alternative program
designated by the state must be a site. A state-approved alternative program must provide
services to students who meet the criteria in section 124D.68 and who are enrolled in:

(1) a district that is served by the state-approved alternative program; or

(2) a charter school located within the geographic boundaries of a district that is
served by the state-approved alternative program.

deleted text begin (b) A school district or charter school may be approved biennially by the state to
provide additional instructional programming that results in grade level acceleration. The
program must be designed so that students make grade progress during the school year
and graduate prior to the students' peers.
 deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end To be designated, a deleted text begin district, charter school, ordeleted text end state-approved alternative
program must demonstrate to the commissioner that it will:

(1) provide a program of instruction that permits pupils to receive instruction
throughout the entire year; and

(2) develop and maintain a separate record system that, for purposes of section
126C.05, permits identification of membership attributable to pupils participating in the
program. The record system and identification must ensure that the program will not have
the effect of increasing the total average daily membership attributable to an individual
pupil as a result of a learning year program. The record system must include the date the
pupil originally enrolled in a learning year program, the pupil's grade level, the date of
each grade promotion, the average daily membership generated in each grade level, the
number of credits or standards earned, and the number needed to graduate.

deleted text begin (d)deleted text end new text begin (c)new text end A student who has not completed a school district's graduation requirements
may continue to enroll in courses the student must complete in order to graduate until
the student satisfies the district's graduation requirements or the student is 21 years old,
whichever comes first.

Sec. 10.

Minnesota Statutes 2012, section 124D.42, is amended to read:


124D.42 READING new text begin AND MATH new text end CORPS.

Subd. 6.

Program training.

The commission must, within available resources:

(1) orient each grantee organization in the nature, philosophy, and purpose of the
program;

(2) build an ethic of community service through general community service training;
and

(3) provide guidance on integrating programmatic-based measurement into program
models.

Subd. 8.

Minnesota reading corps program.

(a) A Minnesota reading corps
program is established to provide ServeMinnesota deleted text begin Innovationdeleted text end new text begin AmeriCorpsnew text end members with
a data-based problem-solving model of literacy instruction to use in helping to train local
Head Start program providers, other prekindergarten program providers, and staff in
schools with students in kindergarten through grade 3 to evaluate and teach early literacy
skills, including comprehensive, scientifically based reading instruction under section
122A.06, subdivision 4, to children age 3 to grade 3.

(b) Literacy programs under this subdivision must comply with the provisions
governing literacy program goals and data use under section 119A.50, subdivision 3,
paragraph (b).

(c) The commission must submit a biennial report to the committees of the
legislature with jurisdiction over kindergarten through grade 12 education that records and
evaluates program data to determine the efficacy of the programs under this subdivision.

new text begin Subd. 9. new text end

new text begin Minnesota math corps program. new text end

new text begin (a) A Minnesota math corps program is
established to give ServeMinnesota AmeriCorps members a data-based problem-solving
model of mathematics instruction useful for providing elementary and middle school
students and their teachers with instructional support to meet state academic standards in
mathematics.
 new text end

new text begin (b) The commission must submit a biennial report to the committees of the
legislature with jurisdiction over kindergarten through grade 12 education that records and
evaluates program data to determine the efficacy of the programs under this subdivision.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
 new text end

Sec. 11.

Minnesota Statutes 2012, section 124D.4531, is amended to read:


124D.4531 CAREER AND TECHNICAL deleted text begin LEVYdeleted text end new text begin REVENUEnew text end .

Subdivision 1.

Career and technical deleted text begin levydeleted text end new text begin revenuenew text end .

(a) A district with a career and
technical program approved under this section for the fiscal year in which the levy is
certified deleted text begin may levy an amountdeleted text end new text begin is eligible for career and technical revenuenew text end equal to 35 percent
of approved expenditures in the fiscal year in which the levy is certified for the following:

(1) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year, including extended contracts, for services rendered
in the district's approved career and technical education programsnew text begin , excluding salaries
reimbursed by another school district under clause (2)new text end ;

new text begin (2) amounts paid to another Minnesota school district for salaries of essential,
licensed personnel providing direct instructional services to students in that fiscal year for
services rendered in the district's approved career and technical education programs;
 new text end

deleted text begin (2)deleted text end new text begin (3) new text end contracted services provided by a public or private agency other than a
Minnesota school district or cooperative center under subdivision 7;

deleted text begin (3)deleted text end new text begin (4) new text end necessary travel between instructional sites by licensed career and technical
education personnel;

deleted text begin (4)deleted text end new text begin (5) new text end necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;

deleted text begin (5)deleted text end new text begin (6) new text end curriculum development activities that are part of a five-year plan for
improvement based on program assessment;

deleted text begin (6)deleted text end new text begin (7) new text end necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and

deleted text begin (7)deleted text end new text begin (8) new text end specialized vocational instructional supplies.

(b) Up to ten percent of a district's career and technical deleted text begin levydeleted text end new text begin revenuenew text end may be spent on
equipment purchases. Districts using the career and technical deleted text begin levydeleted text end new text begin revenuenew text end for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

(c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.

(d) The amount of the deleted text begin levy certifieddeleted text end new text begin revenue calculatednew text end under this subdivision may
not exceed $17,850,000 for taxes payable in 2012, $15,520,000 for taxes payable in 2013,
and deleted text begin $15,393,000deleted text end new text begin $24,224,000 new text end for taxes payable in 2014.

(e) If the estimated deleted text begin levydeleted text end new text begin revenuenew text end exceeds the amount in paragraph (d), the
commissioner must reduce the percentage in paragraph (a), clause (2), until the estimated
deleted text begin levydeleted text end new text begin revenuenew text end no longer exceeds the limit in paragraph (d).

new text begin Subd. 1a. new text end

new text begin Career and technical levy. new text end

new text begin (a) For fiscal year 2014 only, a district may
levy an amount not more than the product of its career and technical revenue times the
lesser of one or the ratio of its adjusted net tax capacity per adjusted marginal cost pupil
unit in the fiscal year in which the levy is certified to the career and technical revenue
equalizing factor. The career and technical revenue equalizing factor for fiscal year 2014
equals $9,497.
 new text end

new text begin (b) For fiscal year 2015 and later, a district may levy an amount not more than
the product of its career and technical revenue times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted pupil unit in the fiscal year in which the levy is
certified to the career and technical revenue equalizing factor. The career and technical
revenue equalizing factor for fiscal year 2015 and later equals $10,058.
 new text end

new text begin Subd. 1b. new text end

new text begin Career and technical aid. new text end

new text begin For fiscal year 2014 and later, a district's
career and technical aid equals its career and technical revenue less its career and technical
levy. If the district levy is less than the permitted levy, the district's career and technical
aid shall be reduced proportionately.
 new text end

Subd. 2.

Allocation from cooperative centers and intermediate districts.

For
purposes of this section, a cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education programs among participating
districts.

Subd. 3.

deleted text begin Levydeleted text end new text begin Revenuenew text end guarantee.

Notwithstanding subdivision 1, paragraph (a),
the career and technical education deleted text begin levydeleted text end new text begin revenuenew text end for a district is not less than the lesser of:

(1) the district's career and technical education deleted text begin levy authoritydeleted text end new text begin revenuenew text end for the
previous fiscal year; or

(2) 100 percent of the approved expenditures for career and technical programs
included in subdivision 1, paragraph (b), for the fiscal year in which the levy is certified.

Subd. 3a.

deleted text begin Levy, pay 2012-2014deleted text end new text begin Revenue adjustmentsnew text end .

Notwithstanding
subdivisions 1new text begin , 1a,new text end and 3, for taxes payable in 2012 to 2014 only, the department must
calculate the career and technical deleted text begin levy authoritydeleted text end new text begin revenuenew text end for each district according to
Minnesota Statutes 2010, section 124D.4531, and adjust the deleted text begin levy authoritydeleted text end new text begin revenuenew text end for
each district proportionately to meet the statewide deleted text begin levydeleted text end new text begin revenuenew text end target under subdivision 1,
paragraph (d). For purposes of calculating the deleted text begin levydeleted text end new text begin revenuenew text end guarantee under subdivision
3, the career and technical education deleted text begin levy authoritydeleted text end new text begin revenuenew text end for the previous fiscal year
is the deleted text begin levy authoritydeleted text end new text begin revenuenew text end according to Minnesota Statutes 2010, section 124D.4531,
before adjustments to meet the statewide deleted text begin levydeleted text end new text begin revenuenew text end target.

Subd. 4.

District reports.

Each district or cooperative center must report data to the
department for all career and technical education programs as required by the department
to implement the career and technical deleted text begin levydeleted text end new text begin revenuenew text end formula.

Subd. 5.

Allocation from districts participating in agreements for secondary
education or interdistrict cooperation.

For purposes of this section, a district with a
career and technical program approved under this section that participates in an agreement
under section 123A.30 or 123A.32 must allocate its deleted text begin levydeleted text end new text begin revenuenew text end authority under this
section among participating districts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
 new text end

Sec. 12.

Minnesota Statutes 2012, section 124D.65, subdivision 5, is amended to read:


Subd. 5.

School district EL revenue.

(a) A district's English learner programs
revenue equals the product of (1) deleted text begin $700 in fiscal year 2004 and laterdeleted text end new text begin $705new text end times (2) the
greater of 20 or the adjusted deleted text begin marginal costdeleted text end average daily membership of eligible English
learners enrolled in the district during the current fiscal year.

(b) A pupil ceases to generate state English learner aid in the school year following
the school year in which the pupil attains the state cutoff score on a commissioner-provided
assessment that measures the pupil's emerging academic English.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

new text begin [124D.861] ACHIEVEMENT AND INTEGRATION FOR MINNESOTA.
 new text end

new text begin Subdivision 1. new text end

new text begin Program to close the academic achievement and opportunity
gap. new text end

new text begin The "Achievement and Integration for Minnesota" program is established to
promote diversity, pursue racial and economic integration, and increase student academic
achievement and equitable educational opportunities in Minnesota public schools. The
program must serve students of varying racial, ethnic, and economic backgrounds, taking
into account unique geographic and demographic particularities affecting students,
schools, and districts including race, neighborhood locations and characteristics, grades,
socioeconomic status, academic performance, and language barriers. Eligible districts
must use the revenue under section 124D.862 to pursue racial and economic integration in
schools through: (1) in-school educational practices and integrated learning environments
created to prepare all students to be effective citizens, enhance social cohesion, and
reinforce democratic values; and (2) corresponding and meaningful policies and curricula
and trained instructors, administrators, school counselors, and other advocates who support
and enhance in-school practices and integrated learning environments under this section.
In-school practices and integrated learning environments must promote increased student
academic achievement, cultural fluency, cross-cultural interactivities, communication and
pedagogy, graduation and educational attainment rates, and parent involvement.
 new text end

new text begin Subd. 2. new text end

new text begin Plan components. new text end

new text begin (a) The school board of each eligible district must
formally develop and implement a long-term comprehensive plan that identifies the
collaborative structures and systems, in-school strategies, inclusive best educational
practices, and partnerships with higher education institutions and industries required
to effect this section and increase the academic achievement of all students. Plan
components may include: innovative and integrated prekindergarten through grade 12
learning environments that offer students school enrollment choices; family engagement
initiatives that involve families in their students' academic life and success; professional
development opportunities for teachers and administrators focused on improving the
academic achievement of all students; increased programmatic opportunities focused
on rigor and college and career readiness for underserved students, including students
enrolled in alternative learning centers under section 123A.05, public alternative programs
under section 126C.05, subdivision 15, or contract alternative programs under section
124D.69, among other underserved students; or recruitment and retention of teachers and
administrators with diverse backgrounds. The plan must specify district and school goals
for reducing the disparity in academic achievement among all racial and ethnic categories of
students and promoting racial and economic integration in schools and districts over time.
 new text end

new text begin (b) Among other requirements, an eligible district must implement a cost-effective,
research-based intervention that includes formative assessment practices to reduce the
disparity in student academic achievement between the highest and lowest performing
racial and ethnic categories of students as measured by student demonstration of
proficiency on state reading and math assessments.
 new text end

new text begin (c) Eligible districts must collaborate in creating efficiencies and eliminating the
duplication of programs and services under this section, which may include forming a
single, seven-county metropolitan areawide partnership of eligible districts for this purpose.
 new text end

new text begin Subd. 3. new text end

new text begin Biennial progress; budget process. new text end

new text begin (a) To receive revenue under section
124D.862, the school board of an eligible district must hold at least one formal hearing by
March 1 in the year preceding the current biennium to report to the public its progress in
realizing the goals identified in its plan. At the hearing, the board must provide the public
with longitudinal data demonstrating district and school progress in reducing the disparity
in student academic achievement among all racial and ethnic categories of students and
realizing racial and economic integration, consistent with its plan and the measures in
paragraph (b). The district also must submit to the commissioner by March 1 in the year
preceding the current biennium a detailed biennial budget for continuing to implement
its plan and the commissioner must review and approve or disapprove the budget by
June 1 of that year.
 new text end

new text begin (b) The longitudinal data required under paragraph (a) must be based on student
growth and progress toward proficiency in reading, mathematics, and writing, as defined
under section 120B.299, and one or more of the following measures:
 new text end

new text begin (1) the number of world language proficiency or high achievement certificates
awarded under section 120B.022, subdivision 1, paragraphs (b) and (c);
 new text end

new text begin (2) adequate yearly progress under section 120B.35, subdivision 2;
 new text end

new text begin (3) preparation for postsecondary academic and career opportunities under section
120B.35, subdivision 3, paragraph (c), clause (1);
 new text end

new text begin (4) rigorous coursework completed under section 120B.35, subdivision 3, paragraph
(c), clause (2); or
 new text end

new text begin (5) school safety and students' engagement and connection at school under section
120B.35, subdivision 3, paragraph (d).
 new text end

new text begin Subd. 4. new text end

new text begin Evaluation. new text end

new text begin The commissioner must evaluate the efficacy of district
plans in reducing the disparity in student academic achievement among all racial and
ethnic categories of students and realizing racial and economic integration and report the
commissioner's findings to the kindergarten through grade 12 education committees of the
legislature by February 1 every fourth year beginning February 1, 2017.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2014 and later.
 new text end

Sec. 14.

new text begin [124D.862] ACHIEVEMENT AND INTEGRATION REVENUE.
 new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A school district is eligible for achievement and
integration revenue under this section if the district has a biennial achievement and
integration plan approved by the department under section 124D.861. Priority for funding
must be given to eligible school districts that include methods that have been effective in
reducing disparities in student achievement in the district's biennial plan.
 new text end

new text begin Subd. 2. new text end

new text begin Achievement and integration revenue. new text end

new text begin (a) For fiscal year 2014, initial
achievement and integration revenue for an eligible district equals the lesser of the
district's expenditure for the fiscal year under its budget according to subdivision 1a or the
greater of: (1) 90 percent of the district's integration revenue for fiscal year 2013 under
Minnesota Statutes 2012, section 124D.86, or (2) the sum of: (i) $327 times the district's
adjusted pupil units for the prior fiscal year computed using the pupil unit weights effective
under section 126C.05 for fiscal year 2015 and later, times the district's enrollment of
protected students as a percent of its total enrollment on October 1 of the prior fiscal year,
plus (ii) $100 times the district's adjusted pupil units for the prior fiscal year computed
using the pupil unit weights effective under section 126C.05 for fiscal year 2015 and later
times the district's enrollment of protected students as a percent of its total enrollment on
October 1 of the prior fiscal year times the district's focus rating for the prior fiscal year
under Minnesota's 2012 Elementary and Secondary Education Act flexibility request.
 new text end

new text begin (b) For fiscal year 2015 and later, initial achievement and integration revenue for
an eligible district equals the lesser of the district's expenditure for the fiscal year under
its budget according to subdivision 1a or the greater of: (1) 63 percent of the district's
integration revenue for fiscal year 2013 under Minnesota Statutes 2012, section 124D.86,
or (2) the sum of: (i) $229 times the district's adjusted pupil units for the prior fiscal year
computed using the pupil unit weights effective under section 126C.05 for fiscal year 2015
and later, times the district's enrollment of protected students as a percent of its total
enrollment on October 1 of the prior fiscal year, plus (ii) $70 times the district's adjusted
pupil units for the prior fiscal year computed using the pupil unit weights effective under
section 126C.05 for fiscal year 2015 and later, times the district's enrollment of protected
students as a percent of its total enrollment on October 1 of the prior fiscal year times the
district's focus rating for the prior fiscal year under Minnesota's 2012 Elementary and
Secondary Education Act flexibility request.
 new text end

new text begin (c) In each year, .02 percent of each district's initial achievement and integration
revenue is transferred to the Department of Education for the oversight and accountability
activities required under this section and section 124D.861.
 new text end

new text begin (d) A district that did not meet its achievement goals established in section 124D.861
for the previous biennium must report to the commissioner the reasons why the goals were
not met. The district must submit a two-year improvement plan to achieve the unmet goals
from its achievement and integration plan. A district that does not meet its goals in the
improvement plan must have its initial achievement and integration revenue reduced by
20 percent for the current year.
 new text end

new text begin (e) Any revenue saved by the reductions in paragraph (d) must be proportionately
reallocated on a per adjusted pupil unit basis to all districts that met their achievement
goals in the previous biennium.
 new text end

new text begin Subd. 3. new text end

new text begin Achievement and integration aid. new text end

new text begin A district's achievement and
integration aid for fiscal year 2014 equals the difference between the district's achievement
and integration revenue and its achievement and integration levy. A district's achievement
and integration aid for fiscal year 2015 and later equals the district's achievement and
integration revenue.
 new text end

new text begin Subd. 4. new text end

new text begin Achievement and integration levy. new text end

new text begin For fiscal year 2014 only, a district
may levy an amount equal to 30 percent of the district's achievement and integration
revenue as defined in subdivision 2. The Department of Education must adjust the levy
for taxes payable in 2014 by the difference between the levy under this section and the
amount levied by the district under Laws 2011, First Special Session chapter 11, article 2,
section 49, paragraph (f).
 new text end

new text begin Subd. 5. new text end

new text begin Revenue reserved. new text end

new text begin Integration revenue received under this section must
be reserved and used only for the programs authorized in subdivision 6.
 new text end

new text begin Subd. 6. new text end

new text begin Revenue uses. new text end

new text begin At least 80 percent of a district's achievement and
integration revenue received under this section must be used for innovative and integrated
learning environments, family engagement activities, and other approved programs
providing direct services to students. Up to 20 percent of the revenue may be used for
professional development and staff development activities, and not more than ten percent
of this share of the revenue may be used for administrative expenditures.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 15.

Minnesota Statutes 2012, section 260C.007, subdivision 19, is amended to read:


Subd. 19.

Habitual truant.

"Habitual truant" means a child under the age of deleted text begin 16deleted text end new text begin 17
new text end years who is absent from attendance at school without lawful excuse for seven school days
new text begin per school year new text end if the child is in elementary school or for one or more class periods on
seven school days new text begin per school year new text end if the child is in middle school, junior high school, or
high schooldeleted text begin ,deleted text end or a child who is deleted text begin 16 ordeleted text end 17 years of age who is absent from attendance at school
without lawful excuse for one or more class periods on seven school days new text begin per school year
new text end and who has not lawfully withdrawn from school under section 120A.22, subdivision 8.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2014-2015 school year and
later.
 new text end

Sec. 16.

Laws 2011, First Special Session chapter 11, article 2, section 13, the effective
date, is amended to read:


EFFECTIVE DATE.

This section is effective the day following final enactment
and applies beginning in the deleted text begin 2014-2015deleted text end new text begin 2015-2016 new text end school year and later.

Sec. 17.

Laws 2011, First Special Session chapter 11, article 2, section 14, the effective
date, is amended to read:


EFFECTIVE DATE.

This section is effective the day following final enactment
and applies beginning in the deleted text begin 2014-2015deleted text end new text begin 2015-2016 new text end school year and later.

Sec. 18.

Laws 2011, First Special Session chapter 11, article 2, section 18, the effective
date, is amended to read:


EFFECTIVE DATE.

This section is effective the day following final enactment
and applies beginning in the deleted text begin 2014-2015deleted text end new text begin 2015-2016 new text end school year and later.

Sec. 19.

Laws 2011, First Special Session chapter 11, article 2, section 19, the effective
date, is amended to read:


EFFECTIVE DATE.

This section is effective the day following final enactment
and applies beginning in the deleted text begin 2014-2015deleted text end new text begin 2015-2016 new text end school year and later.

Sec. 20. new text begin APPROPRIATIONS.
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 Integration aid. new text end

new text begin For integration aid under Minnesota Statutes, section
124D.86, and Minnesota Statutes, section 124D.862:
 new text end

new text begin $
 new text end 		new text begin 75,495,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 68,617,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $17,197,000 for 2013 and $58,298,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $9,886,000 for 2014 and $58,731,000 for 2015.
 new text end

new text begin Subd. 3. new text end

new text begin Literacy incentive aid. new text end

new text begin For literacy incentive aid under Minnesota
Statutes, section 124D.98:
 new text end

new text begin $
 new text end 		new text begin 52,035,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 53,812,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $6,607,000 for 2013 and $45,428,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $7,704,000 for 2014 and $46,108,000 for 2015.
 new text end

new text begin Subd. 4. new text end

new text begin Interdistrict desegregation or integration transportation grants. new text end

new text begin For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:
 new text end

new text begin $
 new text end 		new text begin 13,968,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 14,712,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 5. new text end

new text begin Success for the future. new text end

new text begin For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:
 new text end

new text begin $
 new text end 		new text begin 2,118,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 2,137,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $290,000 for 2013 and $1,828,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $309,000 for 2014 and $1,828,000 for 2015.
 new text end

new text begin Subd. 6. new text end

new text begin American Indian teacher preparation grants. new text end

new text begin For joint grants to assist
American Indian people to become teachers under Minnesota Statutes, section 122A.63:
 new text end

new text begin $
 new text end 		new text begin 190,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 190,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 7. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract school aid under Minnesota
Statutes, section 124D.83:
 new text end

new text begin $
 new text end 		new text begin 2,052,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 2,190,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $266,000 for 2013 and $1,786,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $303,000 for 2014 and $1,887,000 for 2015.
 new text end

new text begin Subd. 8. new text end

new text begin Early childhood programs at tribal schools. new text end

new text begin For early childhood family
education programs at tribal contract schools under Minnesota Statutes, section 124D.83,
subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 68,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 68,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 9. new text end

new text begin Examination fees; teacher training and support programs. new text end

new text begin (a) For
students' advanced placement and international baccalaureate examination fees under
Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
for teachers and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 4,500,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 4,500,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin (b) The advanced placement program shall receive 75 percent of the appropriation
each year and the international baccalaureate program shall receive 25 percent of the
appropriation each year. The department, in consultation with representatives of the
advanced placement and international baccalaureate programs selected by the Advanced
Placement Advisory Council and the Minnesota Association of IB World Schools,
respectively, shall determine the amounts of the expenditures each year for examination
fees and training and support programs for each program.
 new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
$500,000 each year is for teachers to attend subject matter summer training programs
and follow-up support workshops approved by the advanced placement or international
baccalaureate programs. The amount of the subsidy for each teacher attending an
advanced placement or international baccalaureate summer training program or workshop
shall be the same. The commissioner shall determine the payment process and the amount
of the subsidy.
 new text end

new text begin (d) The commissioner shall pay all examination fees for all students of low-income
families under Minnesota Statutes, section 120B.13, subdivision 3, and, to the extent
of available appropriations, shall also pay examination fees for students sitting for an
advanced placement examination, international baccalaureate examination, or both.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 10. new text end

new text begin Concurrent enrollment program. new text end

new text begin For concurrent enrollment programs
under Minnesota Statutes, section 124D.091:
 new text end

new text begin $
 new text end 		new text begin 2,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 2,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin If the appropriation is insufficient, the commissioner must proportionately reduce
the aid payment to each district.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 11. new text end

new text begin Collaborative urban educator. new text end

new text begin For the collaborative urban educator
grant program:
 new text end

new text begin $
 new text end 		new text begin 528,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 528,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin $200,000 each year is for the Southeast Asian teacher program at Concordia
University, St. Paul; $164,000 each year is for the collaborative educator program at
the University of St. Thomas; and $164,000 each year is for the Center for Excellence
in Urban Teaching at Hamline University.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Each institution shall prepare for the legislature, by January 15 of each year, a
detailed report regarding the funds used. The report must include the number of teachers
prepared as well as the diversity for each cohort of teachers produced.
 new text end

new text begin Subd. 12. new text end

new text begin ServeMinnesota program. new text end

new text begin For funding ServeMinnesota programs under
Minnesota Statutes, sections 124D.37 to 124D.45:
 new text end

new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin A grantee organization may provide health and child care coverage to the dependents
of each participant enrolled in a full-time ServeMinnesota program to the extent such
coverage is not otherwise available.
 new text end

new text begin Subd. 13. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
 new text end

new text begin $
 new text end 		new text begin 725,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 725,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin $46,000 each year is for student organizations serving health occupations (HOSA).
 new text end

new text begin $43,000 each year is for student organizations serving service occupations (HERO).
 new text end

new text begin $100,000 each year is for student organizations serving trade and industry
occupations (Skills USA, secondary and postsecondary).
 new text end

new text begin $95,000 each year is for student organizations serving business occupations (BPA,
secondary and postsecondary).
 new text end

new text begin $150,000 each year is for student organizations serving agriculture occupations
(FFA, PAS).
 new text end

new text begin $142,000 each year is for student organizations serving family and consumer science
occupations (FCCLA).
 new text end

new text begin $109,000 each year is for student organizations serving marketing occupations
(DECA and DECA collegiate).
 new text end

new text begin $40,000 each year is for the Minnesota Foundation for Student Organizations.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 14. new text end

new text begin Early childhood literacy programs. new text end

new text begin For early childhood literacy
programs under Minnesota Statutes, section 119A.50, subdivision 3:
 new text end

new text begin $
 new text end 		new text begin 4,875,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 4,875,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Up to $4,875,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
ServeMinnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 15. new text end

new text begin Minnesota math corps program. new text end

new text begin For the Minnesota math corps program
under Minnesota Statutes, section 124D.42, subdivision 9.
 new text end

new text begin $
 new text end 		new text begin 750,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 750,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Any unexpended balance in the first year does not cancel but is available in the
second year.
 new text end

new text begin Subd. 16. new text end

new text begin Alternative compensation. new text end

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

new text begin $
 new text end 		new text begin 59,711,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2015 appropriation includes $0 for 2014 and $59,711,000 for 2015.
 new text end

new text begin Subd. 17. new text end

new text begin Teacher development and evaluation pilot grant program. new text end

new text begin For
grants to school districts to participate in the teacher development and evaluation pilot
grant program:
 new text end

new text begin $
 new text end 		new text begin 683,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end

new text begin This is a onetime appropriation.
 new text end

new text begin Subd. 18. new text end

new text begin Career and technical aid. new text end

new text begin For career and technical aid under Minnesota
Statutes, section 124D.4531, subdivision 1b:
 new text end

new text begin $
 new text end 		new text begin 7,551,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 8,798,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $0 for 2014 and $7,551,000 for 2015.
 new text end

new text begin The 2015 appropriation includes $1,280,000 for 2014 and $7,518,000 for 2015.
 new text end

ARTICLE 4

CHARTER SCHOOLS

Section 1.

Minnesota Statutes 2012, section 124D.10, subdivision 14, is amended to
read:


Subd. 14.

Annual public reports.

new text begin (a) new text end A charter school must publish an annual report
approved by the board of directors. The annual report must at least include information
on school enrollment, student attrition, governance and management, staffing, finances,
academic performance, operational performance, innovative practices and implementation,
and future plans. A charter school must distribute the annual report by publication, mail,
or electronic means to the commissioner, authorizer, school employees, and parents and
legal guardians of students enrolled in the charter school and must also post the report on
the charter school's official Web site. The reports are public data under chapter 13.

new text begin (b) An authorizer must annually compile the individual reports of all schools it
charters and that are published in accordance with paragraph (a), and submit a portfolio
report to the commissioner in the form and manner determined by the commissioner and
to the public. An authorizer's annual portfolio report must include:
 new text end

new text begin (1) the academic and financial performance of all operating charter schools overseen
by the authorizer;
 new text end

new text begin (2) the status of the authorizer's charter school portfolio, identifying all charter
schools in each of the following categories: approved, but not open; open and operating;
and closed, including the year closed and reason for closure;
 new text end

new text begin (3) the authorizing function provided by the authorizer to the charter schools within
its portfolio, including the authorizer's financial plan that is submitted to the commissioner
under this section; and
 new text end

new text begin (4) the process for overseeing and evaluating all charter schools it authorizes to
ensure compliance with all statutory and contractual obligations to increase students'
academic performance and achievement.
 new text end

Sec. 2.

Minnesota Statutes 2012, section 124D.10, subdivision 23a, is amended to read:


Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party unless the lessor isnew text begin a school district,new text end a
nonprofit corporation under chapter 317A or a cooperative under chapter 308A, and the
lease cost is reasonable under section 124D.11, subdivision 4, clause (1).

(b) For purposes of this section and section 124D.11:

(1) "related party" means an affiliate or immediate relative of the other party in
question, an affiliate of an immediate relative, or an immediate relative of an affiliate;

(2) "affiliate" means a person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with another person;

(3) "immediate family" means an individual whose relationship by blood, marriage,
adoption, or partnering is no more remote than first cousin;

(4) "person" means an individual or entity of any kind; and

(5) "control" means the ability to affect the management, operations, or policy
actions or decisions of a person, whether through ownership of voting securities, by
contract, or otherwise.

(c) A lease of real property to be used for a charter school, not excluded in paragraph
(a), must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."

(d) If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4, clause (1).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2013
and later.
 new text end

Sec. 3.

Minnesota Statutes 2012, section 124D.11, subdivision 1, is amended to read:


Subdivision 1.

General education revenue.

deleted text begin (a)deleted text end General education revenue must
be paid to a charter school as though it were a district. The general education revenue
for each adjusted deleted text begin marginal costdeleted text end pupil unit is the state average general education revenue
per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
residence, minus an amount equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times deleted text begin .0485deleted text end new text begin .0465new text end , calculated without basic skills revenue,
extended time revenue, deleted text begin alternative teacher compensation revenue,deleted text end new text begin equity revenue, teacher
development and evaluation revenue, pension adjustment revenue, new text end transition revenue, and
transportation sparsity revenue, plus basic skills revenue, extended time revenue, deleted text begin basic
alternative teacher compensation aid according to section 126C.10, subdivision 34,deleted text end new text begin equity
revenue, pension adjustment revenue, new text end and transition revenue as though the school were a
school district. The general education revenue for each extended time deleted text begin marginal cost
deleted text end pupil unit equals deleted text begin $4,378deleted text end new text begin $4,722new text end .

deleted text begin (b) Notwithstanding paragraph (a), for charter schools in the first year of operation,
general education revenue shall be computed using the number of adjusted pupil units
in the current fiscal year.
 deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 124D.11, subdivision 2, is amended to read:


Subd. 2.

Transportation revenue.

Transportation revenue must be paid to a charter
school that provides transportation services according to section 124D.10, subdivision 16,
according to this subdivision. Transportation aid shall equal transportation revenue.

In addition to the revenue under subdivision 1, a charter school providing
transportation services must receive general education aid equal to the sum of the product
of (i) an amount equal to the product of the formula allowance according to section
126C.10, subdivision 2, times deleted text begin .0485deleted text end new text begin .0465new text end , plus the transportation sparsity allowance for
the school district in which the charter school is located times (ii) the adjusted deleted text begin marginal
costdeleted text end pupil units, plus the product of $223 times the extended time deleted text begin marginal costdeleted text end pupil units.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 124D.11, subdivision 4, is amended to read:


Subd. 4.

Building lease aid.

new text begin (a) new text end When a charter school finds it economically
advantageous to rent or lease a building or land for any instructional purposes and it
determines that the total operating capital revenue under section 126C.10, subdivision
13, is insufficient for this purpose, it may apply to the commissioner for building lease
aid for this purpose. The commissioner must review new text begin the lease as provided in section
124D.10, subdivision 17, new text end and either approve or deny a lease aid application using the
following criteria:

(1) the reasonableness of the price based on current market values;

(2) the extent to which the lease conforms to applicable state laws and rules; and

(3) the appropriateness of the proposed lease in the context of the space needs and
financial circumstances of the charter school.

A charter school must not use the building lease aid it receives for custodial, maintenance
service, utility, or other operating costs.

new text begin (b) new text end The amount of new text begin annual new text end building lease aid deleted text begin per pupil unit serveddeleted text end for a charter school
deleted text begin for any yeardeleted text end new text begin leasing a building from any private, nonprofit, nonsectarian organization; any
private property owner or any sectarian organization; or an affiliated building corporation,
school district, or other governmental entity on which debt or capital lease obligations
remain based on original issuance for building purchase, construction, or renovationnew text end shall
not exceed the lesser of deleted text begin (a)deleted text end new text begin (1)new text end 90 percent of the approved cost or deleted text begin (b)deleted text end new text begin (2)new text end the product of the
pupil units served for the current school year times deleted text begin $1,200deleted text end new text begin $1,314new text end .

new text begin (c) The annual building lease contract amount for a charter school leasing from a
related nonprofit organization, a parent company, an affiliated building corporation, a
school district, a charter school, or other governmental entity on which the original debt
or capital lease obligations related to the original building purchase, construction, or
renovation have been retired shall be no greater than the lesser of (1) $3 per square foot;
or (2) the product of pupil units served for the current school year times $200. Lease
aid is calculated as 90 percent of the lesser of (i) $3 per square foot, or (ii) the product
of pupil units served times $200.
 new text end

new text begin (d) The annual lease contract and lease aid for a site with ownership as provided in
paragraph (c) occupied by a charter school, where the building is expanded, improved, or
sold, may be subject to the provisions of paragraph (c).
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2014.
 new text end

Sec. 6. new text begin APPROPRIATIONS.
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 Charter school building lease aid. new text end

new text begin For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:
new text end

new text begin $
 new text end 		new text begin 54,384,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 58,020,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $6,819,000 for 2013 and $47,565,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $8,066,000 for 2014 and $49,954,000 for 2015.
 new text end

ARTICLE 5

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2012, section 124D.11, subdivision 5, is amended to read:


Subd. 5.

Special education aid.

(a) Except as provided in subdivision 2, special
education aid must be paid to a charter school according to section 125A.76, as though
it were a school district.

deleted text begin (b) For fiscal year 2006, the charter school may charge tuition to the district of
residence as follows:
 deleted text end

deleted text begin (1) if the charter school does not receive general education revenue on behalf of
the student according to subdivision 1, tuition shall be charged as provided in section
125A.11; or
 deleted text end

deleted text begin (2) if the charter school receives general education revenue on behalf of the student
according to subdivision 1, tuition shall be charged as provided in section 127A.47,
subdivision 7, paragraph (d).
 deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end For fiscal year deleted text begin 2007deleted text end new text begin 2015new text end and later, the special education aid paid to the
charter school shall be adjusted as follows:

(1) if the charter school does not receive general education revenue on behalf of
the student according to subdivision 1, the aid shall be adjusted as provided in section
125A.11; or

(2) if the charter school receives general education revenue on behalf of the student
according to subdivision 1, the aid shall be adjusted as provided in section 127A.47,
subdivision 7, deleted text begin paragraphdeleted text end new text begin paragraphs (b) tonew text end (d).

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2012, section 125A.11, subdivision 1, is amended to read:


Subdivision 1.

Nonresident tuition rate; other costs.

deleted text begin (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.
 deleted text end

deleted text begin (b)deleted text end new text begin (a)new text end For fiscal year deleted text begin 2007deleted text end new text begin 2015new text end 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, deleted text begin paragraph (e)deleted text end new text begin paragraphs (b)
to (d)new text end , 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 new text begin under section 125A.76 new text end 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 compensatory revenue,
elementary sparsity revenue, 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.

deleted text begin (c)deleted text end new text begin (b)new text end Notwithstanding deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (a) deleted text begin and (b)deleted text end and section 127A.47,
subdivision 7, paragraphs new text begin (b) to new text end (d) deleted text begin and (e)deleted text end , 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) deleted text begin or (b)deleted text end , or section
127A.47, subdivision 7, deleted text begin paragraph (d) or (e)deleted text end new text begin paragraphs (b) to (d)new text end , as applicable.

deleted text begin (d)deleted text end new text begin (c)new text end 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, deleted text begin excluding alternative teacher compensation revenue,deleted text end plus the referendum equalization
aid according to section 126C.17, subdivision 7deleted text begin , as adjusted according to section 127A.47,
subdivision 7, paragraphs (a) to (c)deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2012, section 125A.76, subdivision 4, is amended to read:


Subd. 4.

State total special education aid.

The state total special education aid
equals deleted text begin $529,247,000 for fiscal year 2007, $694,063,000 for fiscal year 2008, $719,470,000
for fiscal year 2009, $735,693,000 for fiscal year 2010, and $786,586,000 for fiscal year
2011deleted text end new text begin $869,357,000 for fiscal year 2013, $916,575,000 for fiscal year 2014, $976,895,000
for fiscal year 2015, $1,037,655,000 for fiscal year 2016, and $1,100,577,000 for fiscal
year 2017new text end . The state total special education aid for later fiscal years equals:

(1) the state total special education aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the
current fiscal year to the state total average daily membership for the preceding fiscal year.

Sec. 4.

Minnesota Statutes 2012, section 125A.79, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
transportation services eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services, supplies, equipment, and
transportation services under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
eligible for revenue under section 125A.76, subdivision 2.

(b) "General revenue" for a school district means the sum of the general education
revenue according to section 126C.10, subdivision 1, deleted text begin excludingdeleted text end deleted text begin alternative teacher
compensation revenue,deleted text end minus transportation sparsity revenue minus total operating
capital revenue. "General revenue" for a charter school means the sum of the general
education revenue according to section 124D.11, subdivision 1, and transportation revenue
according to section 124D.11, subdivision 2, deleted text begin excluding alternative teacher compensation
revenue,deleted text end minus referendum equalization aid minus transportation sparsity revenue minus
operating capital revenue.

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

(d) "Program growth factor" means 1.02 for fiscal year 2012 and later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 125A.79, subdivision 8, is amended to read:


Subd. 8.

Out-of-state tuition.

For children who are residents of the state, receive
services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
treatment facility by court action in a state that does not have a reciprocity agreement with
the commissioner under section 125A.155, the resident school district shall submit the
balance of the tuition bills, minus the general education revenue, excluding basic skills
revenue deleted text begin and alternative teacher compensation revenuedeleted text end , and referendum equalization aid
attributable to the pupil, calculated using the resident district's average general education
revenue and referendum equalization aid per adjusted pupil unit minus the special
education contracted services initial revenue attributable to the pupil.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6. new text begin APPROPRIATIONS.
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 Special education; regular. new text end

new text begin For special education aid under Minnesota
Statutes, section 125A.75:
 new text end

new text begin $
 new text end 		new text begin 901,904,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 968,149,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $118,232,000 for 2013 and $783,672,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $132,903,000 for 2014 and $835,246,000 for 2015.
 new text end

new text begin Subd. 3. new text end

new text begin Aid for children with disabilities. new text end

new text begin For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:
 new text end

new text begin $
 new text end 		new text begin 1,655,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 1,752,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin If the appropriation for either year is insufficient, the appropriation for the other
year is available.
 new text end

new text begin Subd. 4. new text end

new text begin Travel for home-based services. new text end

new text begin For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 342,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 355,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $45,000 for 2013 and $297,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $50,000 for 2014 and $305,000 for 2015.
 new text end

new text begin Subd. 5. new text end

new text begin Special education; excess costs. new text end

new text begin For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:
 new text end

new text begin $
 new text end 		new text begin 117,841,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 121,897,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $42,030,000 for 2013 and $75,811,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $44,009,000 for 2014 and $77,888,000 for 2015.
 new text end

new text begin Subd. 6. new text end

new text begin Court-placed special education revenue. new text end

new text begin For reimbursing serving school
districts for unreimbursed eligible expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes, section 125A.79, subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 54,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 55,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 7. new text end

new text begin Special education out-of-state tuition. new text end

new text begin For special education out-of-state
tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
 new text end

new text begin $
 new text end 		new text begin 250,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 250,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 124D.454, subdivisions 10 and 11; and 125A.76,
subdivision 7, new text end new text begin are repealed.
 new text end

ARTICLE 6

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2012, section 123B.53, subdivision 5, is amended to read:


Subd. 5.

Equalized debt service levy.

(a) The equalized debt service levy of a
district equals the sum of the first tier equalized debt service levy and the second tier
equalized debt service levy.

(b) A district's first tier equalized debt service levy equals the district's first tier debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $3,049deleted text end new text begin $3,550new text end .

(c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $7,622deleted text end new text begin $7,900new 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. 2.

Minnesota Statutes 2012, section 123B.54, is amended to read:


123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $21,727,000deleted text end new text begin $25,191,000new text end in fiscal year deleted text begin 2014deleted text end new text begin 2016new text end and deleted text begin $24,201,000deleted text end new text begin $22,773,000
new text end in fiscal year deleted text begin 2015deleted text end new text begin 2017new text end and later are appropriated from the general fund to the
commissioner of education for payment of debt service equalization aid under section
123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

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 2012, section 123B.57, subdivision 4, is amended to read:


Subd. 4.

Health and safety levy.

To receive health and safety revenue, a district
may levy an amount equal to the district's health and safety revenue as defined in
subdivision 3 multiplied by the lesser of one, or the ratio of the quotient derived by
dividing the adjusted net tax capacity of the district for the year preceding the year the
levy is certified by the adjusted deleted text begin marginal costdeleted text end pupil units in the district for the school year
to which the levy is attributable, to deleted text begin $2,796deleted text end new text begin $3,165new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2012, section 123B.591, subdivision 2, is amended to read:


Subd. 2.

Deferred maintenance revenue.

The deferred maintenance revenue for
an eligible school district equals the product of deleted text begin $60deleted text end new text begin $64new text end times the adjusted deleted text begin marginal cost
deleted text end pupil units for the school year times the lesser of one or the ratio of the district's average
age of building space to 35 years.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2012, section 123B.591, subdivision 3, is amended to read:


Subd. 3.

Deferred maintenance levy.

To obtain deferred maintenance revenue deleted text begin for
fiscal year 2008 and laterdeleted text end , a district may levy an amount not more than the product of its
deferred maintenance revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted deleted text begin marginal costdeleted text end pupil unit to deleted text begin $5,621deleted text end new text begin $5,965new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2012, section 125B.26, subdivision 4, is amended to read:


Subd. 4.

District aid.

For fiscal year 2006 and later, a district, charter school,
or intermediate school district's Internet access equity aid equals the district, charter
school, or intermediate school district's approved cost for the previous fiscal year
according to subdivision 1 exceeding deleted text begin $15deleted text end new text begin $16new text end times the district's adjusted deleted text begin marginal
costdeleted text end pupil units for the previous fiscal year or no reduction if the district is part of an
organized telecommunications access cluster. Equity aid must be distributed to the
telecommunications access cluster for districts, charter schools, or intermediate school
districts that are members of the cluster or to individual districts, charter schools, or
intermediate school districts not part of a telecommunications access cluster.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin DISABLED ACCESS LEVY AUTHORITY; TRACY.
new text end

new text begin Notwithstanding the time limit in Minnesota Statutes, section 123B.58, subdivision
3, Independent School District No. 2904, Tracy, may levy its remaining disabled access
levy authority over two years, beginning with taxes payable in 2015.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for levies certified in 2014 and later.
 new text end

Sec. 8. new text begin ELEVATOR REPAIR LEVY; NORMAN COUNTY WEST SCHOOL
DISTRICT.
new text end

new text begin For taxes payable in 2015 and 2016, Independent School District No. 2527,
Norman County West, may levy for an amount not to exceed $27,500 in each year. The
proceeds of this levy must be used to refurbish an existing elevator with new electrical and
mechanical components.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2015 and 2016.
 new text end

Sec. 9. new text begin APPROPRIATIONS.
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 Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
 new text end

new text begin $
 new text end 		new text begin 458,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 435,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $26,000 for 2013 and $432,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $73,000 for 2014 and $362,000 for 2015.
 new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
 new text end

new text begin $
 new text end 		new text begin 18,909,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 24,986,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $2,397,000 for 2013 and $16,512,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $2,800,000 for 2014 and $22,186,000 for 2015.
 new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
 new text end

new text begin $
 new text end 		new text begin 19,114,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 19,287,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $2,623,000 for 2013 and $16,491,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $2,796,000 for 2014 and $16,491,000 for 2015.
 new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
 new text end

new text begin $
 new text end 		new text begin 3,750,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 3,750,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2014 and 2015 shall be prorated.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
 new text end

new text begin $
 new text end 		new text begin 3,532,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 3,729,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $456,000 for 2013 and $3,076,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $521,000 for 2014 and $3,208,000 for 2015.
 new text end

ARTICLE 7

NUTRITION, LIBRARIES, AND ACCOUNTING

Section 1.

Minnesota Statutes 2012, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

deleted text begin (a) For fiscal years 2009 and 2010, in June of each
year, the school district must recognize as revenue, in the fund for which the levy was
made, the lesser of:
 deleted text end

deleted text begin (1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or
 deleted text end

deleted text begin (2) the sum of:
 deleted text end

deleted text begin (i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and
 deleted text end

deleted text begin (ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph (a),
and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
 deleted text end

deleted text begin (iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).
 deleted text end

deleted text begin (b)deleted text end For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or

(2) the sum of:

(i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue under
sections 124D.86, subdivision 3, clauses (1), (2), and (3); new text begin 124D.862, subdivision 4, for
Special School District No. 1, Minneapolis, Independent School District No. 625, St.
Paul, and Independent School District No. 709, Duluth; new text end 126C.41, subdivisions 1, 2,
paragraph (a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48,
subdivision 6; plus

(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
that remains after subtracting the referendum levy certified according to section 126C.17
and the amount recognized according to item (ii).

Sec. 2.

Minnesota Statutes 2012, section 124D.111, subdivision 1, is amended to read:


Subdivision 1.

School lunch aid computation.

Each school year, the state must pay
participants in the national school lunch program the amount of deleted text begin 12deleted text end new text begin 14 new text end cents for each full
paid, deleted text begin reduceddeleted text end new text begin reduced-pricenew text end , and free student lunch served to students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
 new text end

Sec. 3.

Minnesota Statutes 2012, section 124D.111, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Inability to pay. new text end

new text begin A school that provides meals under this section must not
deny a child lunch or provide that child with an alternative meal if that child qualifies for a
reduced-price meal and that child or that child's parent or guardian provides notice to the
school that the family does not have sufficient funds to pay for the lunch.
 new text end

Sec. 4.

Minnesota Statutes 2012, section 124D.119, is amended to read:


124D.119 SUMMER FOOD SERVICE REPLACEMENT AID.

States funds are available to compensate department-approved summer food
program sponsors deleted text begin for reduced federal operating reimbursement rates under Public Law
104-193, the federal summer food service program. A sponsor is eligible for summer food
service replacement aid equal to the sum of the following amounts:deleted text end new text begin . Reimbursement shall
be made on December 15 based on total meals served by each sponsor from the end of the
school year to the beginning of the next school year on a pro rata basis.
new text end

deleted text begin (1) for breakfast service, up to four cents per breakfast served by the sponsor during
the current program year;
 deleted text end

deleted text begin (2) for lunch or supper service, up to 14 cents per lunch or supper served by the
sponsor during the current program year; and
 deleted text end

deleted text begin (3) for supplement service, up to ten cents per supplement served by the sponsor
during the current program year.
 deleted text end

Sec. 5.

Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) "Other district receipts" means payments by county
treasurers pursuant to section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county auditor pursuant to section
127A.34, subdivision 2, and payments to school districts by the commissioner of revenue
pursuant to chapter 298.

(b) "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) "Payment date" means the date on which state payments to districts are made
by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
or a weekday which is a legal holiday, the payment shall be made on the immediately
preceding business day. The commissioner may make payments on dates other than
those listed in subdivision 3, but only for portions of payments from any preceding
payment dates which could not be processed by the electronic funds transfer method due
to documented extenuating circumstances.

(d) The current year aid payment percentage equals deleted text begin 73 in fiscal year 2010 and 70 in
fiscal year 2011, and 60 in fiscal years 2012 and laterdeleted text end new text begin 85.5 in fiscal year 2014 and laternew text end .

Sec. 6. new text begin CYRUS AND MORRIS SCHOOL DISTRICT CONSOLIDATION.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The legislature finds that an orderly, voluntary
consolidation of Independent School Districts Nos. 611, Cyrus, and 769, Morris, promotes
the well-being of the students and increases educational efficiency in those school districts.
 new text end

new text begin Subd. 2. new text end

new text begin Remediation costs. new text end

new text begin Independent School District No. 611, Cyrus, may
identify all health and safety remediation costs related to the demolition of the Cyrus
school building and submit those amounts to the commissioner of education for approval.
Any approved costs may be included either in the district's health and safety plan or in the
bonding authority authorized under subdivision 3.
 new text end

new text begin Subd. 3. new text end

new text begin Facility bonds. new text end

new text begin Independent School District No. 611, Cyrus, may issue
general obligation bonds without an election under Minnesota Statutes, chapter 475, after
a public meeting of the school board with notice given by mail according to Minnesota
Statutes, section 123B.09, subdivision 11, in an amount not to exceed $1,000,000
approved by the commissioner of education for the costs associated with demolishing the
Cyrus school building. The bonds must be repaid within ten years of issuance. Any excess
bond proceeds after bonds are repaid must be credited back to the taxpayers of the former
Independent School District No. 611, Cyrus.
 new text end

new text begin Subd. 4. new text end

new text begin Reorganization operating debt determined. new text end

new text begin Independent School District
No. 611, Cyrus, must estimate its reorganization operating debt according to Minnesota
Statutes, section 123B.82, and submit that amount to the commissioner of education
for approval.
 new text end

new text begin Subd. 5. new text end

new text begin Reorganization operating debt bonds. new text end

new text begin Independent School District No.
611, Cyrus, may issue general obligation bonds without an election under Minnesota
Statutes, chapter 475, after a public meeting of the school board with notice given by mail
according to Minnesota Statutes, section 123B.09, subdivision 11, in an amount not to
exceed the reorganization operating debt approved by the commissioner of education
under subdivision 4. The bonds must be repaid within six years of issuance.
 new text end

new text begin Subd. 6. new text end

new text begin Repayment. new text end

new text begin The bonded debt issued under this section remains payable
by the taxable property located within the boundaries of former Independent School
District No. 611, Cyrus.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
 new text end

Sec. 7. new text begin RECIPROCITY AGREEMENT EXEMPTION; HENDRICKS.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 124D.04, subdivision 6, paragraph
(b); 124D.041, subdivision 3, paragraph (b); and 124D.05, subdivision 2a, the provisions
of Minnesota Statutes, section 124D.041, and the agreement shall not apply to Independent
School District No. 402, Hendricks.
 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2013-2014 school year and
later.
 new text end

Sec. 8. new text begin APPROPRIATIONS.
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 School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
 new text end

new text begin $
 new text end 		new text begin 14,596,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 14,888,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 3. new text end

new text begin School breakfast. new text end

new text begin For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:
 new text end

new text begin $
 new text end 		new text begin 5,711,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 6,022,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 4. new text end

new text begin Kindergarten milk. new text end

new text begin For kindergarten milk aid under Minnesota Statutes,
section 124D.118:
 new text end

new text begin $
 new text end 		new text begin 1,039,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 1,049,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 5. new text end

new text begin Summer food service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
 new text end

new text begin $
 new text end 		new text begin 150,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 150,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 6. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
 new text end

new text begin $
 new text end 		new text begin 13,448,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 13,570,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $1,845,000 for 2013 and $11,603,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $1,967,000 for 2014 and $11,603,000 for 2015.
 new text end

new text begin Subd. 7. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
 new text end

new text begin $
 new text end 		new text begin 1,288,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 1,300,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $176,000 for 2013 and $1,112,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $188,000 for 2014 and $1,112,000 for 2015.
 new text end

new text begin Subd. 8. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
 new text end

new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 900,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 9. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
 new text end

new text begin $
 new text end 		new text begin 2,279,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 2,300,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $312,000 for 2013 and $1,967,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $333,000 for 2014 and $1,967,000 for 2015.
 new text end

ARTICLE 8

EARLY CHILDHOOD EDUCATION, SELF-SUFFICIENCY, AND
LIFELONG LEARNING

Section 1.

Minnesota Statutes 2012, section 13.319, is amended by adding a
subdivision to read:


new text begin Subd. 9. new text end

new text begin Early learning scholarships. new text end

new text begin Section 124D.143 governs data under the
early learning scholarship program.
 new text end

Sec. 2.

new text begin [124D.143] EARLY LEARNING SCHOLARSHIPS.
 new text end

new text begin Subdivision 1. new text end

new text begin Early learning scholarships established. new text end

new text begin The Office of Early
Learning must oversee the early learning scholarship program in consultation with the
Minnesota Departments of Education, Human Services, and Health.
 new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The Office of Early Learning shall administer the early learning
scholarship program, establish participation standards for children and their families,
develop criteria for qualifying providers based on section 124D.142, and contract for
administrative services as necessary with a resource and referral organization under
section 119B.19, or other nonprofit or public entity.
 new text end

new text begin Subd. 3. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in the subdivision apply to this section.
 new text end

new text begin (b) "Director" means the director of the Office of Early Learning.
 new text end

new text begin (c) "Eligible program" means a Head Start program under section 119A.50, school
readiness program under section 124D.15, or other school district child-based program
designed to provide early education services to children not yet in kindergarten, licensed
center-based child care program under chapter 245A, or licensed family child care
program under chapter 245A or other program providing early learning opportunities.
new text end

new text begin (d) "Income" has the meaning given in section 119B.011, subdivision 15.
new text end

new text begin (e) "Parent" means the parent or legal guardian of a child.
 new text end

new text begin (f) "Prospective program" means an eligible program that makes a commitment to
enhance its quality of education and care and demonstrates to the director's satisfaction that
the program is pursuing a program rating. For fiscal years 2016 and later, a prospective
program must cite a hardship or demonstrate a special circumstance as to why the program
is not yet ready to enter the rating process before the director may grant it eligibility.
 new text end

new text begin (g) "Rated program" means an eligible program that receives one, two, three, or four
stars under the quality rating and improvement system established in section 124D.142.
 new text end

new text begin Subd. 4. new text end

new text begin Participant eligibility. new text end

new text begin The parent of a child who will be at least three
years of age as of September 1 of the year of application, is eligible to apply for an early
learning scholarship if the family's income is at or below 185 percent of the federal
poverty level. The director of the Office of Early Learning may specify the form and
manner of the application for a scholarship. The director may establish a method to
determine family income but a parent meets this requirement by documenting their child's
identification through another public funding eligibility process, including the free and
reduced-price lunch program, National School Lunch Act, United States Code, title
42, section 1751, part 210; Head Start under federal Improving Head Start for School
Readiness Act of 2007; Minnesota family investment program under chapter 256J; the
Federal Supplemental Nutrition Assistance Program; and child care assistance programs
under chapter 119B, and no further information to verify income is required. A parent
under age 21 who is pursuing a high school or general education equivalency diploma is
eligible for an early learning scholarship if the parent has a child age zero to five years old
and meets the income eligibility requirements in this subdivision.
 new text end

new text begin Subd. 5. new text end

new text begin Scholarship amount. new text end

new text begin (a) The director annually shall determine the
maximum scholarship amounts based on the results of the rate survey conducted under
section 119B.13, subdivision 1, paragraph (b), and may establish a range of scholarship
amounts taking into account the child's level of need and geographic location. The
director shall establish a scholarship amount schedule according to the eligible program's
rating under subdivision 3, paragraph (g), and prospective programs under subdivision
3, paragraph (f). The scholarship amounts may be designed to be layered around other
assistance programs available to that child. The director shall not consider local funds
allocated to support an early learning program when layering scholarships around other
assistance programs. Eligible providers must be notified of the scholarship allocations
available in their geographic location.
 new text end

new text begin (b) The director shall try to maintain a statewide annual average scholarship amount
of $6,000 per scholarship recipient and report annually to the legislature the actual average
statewide scholarship amount per scholarship recipient.
 new text end

new text begin Subd. 6. new text end

new text begin Award of scholarships. new text end

new text begin (a) The director shall establish application
timelines and determine the schedule for awarding scholarships that meet operational
needs of eligible programs. The director may prioritize applications on factors including
family income, geographic location, and needs of the child. By March 15, eligible
programs may notify the director of the number of scholarship-eligible children who are
eligible under subdivision 4 and who have applied for enrollment in that program. To
facilitate enrollment planning, by April 15, the director shall notify eligible programs that
have provided enrollment information under this paragraph of the scholarship status of
each applicant. To the extent practicable and taking into account family mobility, the
scholarships must be awarded to eligible recipients beginning April 15 of each year for a
child's participation in a program starting in July, August, or September of that year. Any
siblings of a child who has been awarded a scholarship under this section must be awarded
a scholarship upon request provided the sibling attends the same program. A child who
has received a scholarship under this section must continue to receive a scholarship until
that child enrolls in kindergarten or turns six years of age.
 new text end

new text begin (b) A three- or four-star rated program that has a waiting list of children eligible for
scholarships may notify the director of the program's desire to serve additional children in
order to accommodate scholarship recipients. The director may designate a predetermined
number of scholarship slots for that program and notify the program of that number.
 new text end

new text begin (c) A scholarship recipient may choose any available program and is not required to
enroll in a program with a predetermined number of slots.
 new text end

new text begin (d) A child who receives a scholarship who has not completed development
screening under sections 121A.16 to 121A.19 must complete that screening within 45
days of first attending an eligible program.
 new text end

new text begin (e) The director shall report annually to the legislature on a summary of the
geographic distribution of scholarships throughout the state.
 new text end

new text begin Subd. 7. new text end

new text begin Scholarship recipient choice of programs. new text end

new text begin A scholarship recipient may
choose to apply to any rated program or prospective program for acceptance. If the
scholarship recipient has not been accepted and subsequently enrolled in a rated program
within ten months of receipt of the scholarship, the scholarship cancels and the recipient
must reapply in order to be eligible for another scholarship.
 new text end

new text begin Subd. 8. new text end

new text begin Building quality. new text end

new text begin For fiscal years 2014 and 2015 only, the director must
develop a streamlined process to encourage eligible programs to enter the rating program.
As a part of building quality in the system of providers, the director may grant a parent
authority to use a scholarship at a prospective program.
 new text end

new text begin Subd. 9. new text end

new text begin Provider reimbursement. new text end

new text begin The director may determine the form and
method of payment to the fiscal agent for each program serving a scholarship recipient.
The director may make quarterly payments on behalf of the scholarship recipient in
advance of the services provided to the child, or arrange other payment methods for
providers. The director may request information as necessary from providers to verify
scholarship payments.
 new text end

new text begin Subd. 10. new text end

new text begin Earned income calculation. new text end

new text begin Scholarships paid to providers on behalf
of eligible parents must not be counted as earned income for the purposes of medical
assistance, MinnesotaCare, Minnesota family investment program, diversionary work
program, child care assistance, or Head Start programs. Scholarships paid to providers on
behalf of eligible parents must not be considered child care funds for the purposes of the
child care assistance program under chapter 119B.
 new text end

new text begin Subd. 11. new text end

new text begin Student identification number. new text end

new text begin The director shall collect from
participating programs data including, but not limited to, demographic, socioeconomic,
participation, and assessment information related to scholarship recipients. Data on
scholarship recipients are private data on individuals as defined in section 13.02,
subdivision 12.
new text end

new text begin Subd. 12. new text end

new text begin Report required. new text end

new text begin The director, in consultation with the children's
cabinet, shall develop and implement a plan to publicize and increase parent awareness of
early learning scholarships. The director must report the results of the outreach efforts to
the legislature by January 15 of each year.
 new text end

Sec. 3.

Minnesota Statutes 2012, section 124D.531, subdivision 1, is amended to read:


Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic
education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of:

(i) deleted text begin 1.02deleted text end new text begin 1.03new text end ; or

(ii) the average growth in state total contact hours over the prior ten program years.

Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2014
and later.
 new text end

Sec. 4. new text begin EARLY LEARNING SCHOLARSHIPS; FISCAL YEAR 2014 ONLY.
new text end

new text begin Notwithstanding the timelines in Minnesota Statutes, section 124D.143, for fiscal
year 2014 only, the director shall establish an expedited process to award scholarships
to eligible recipients attending three- or four-star rated programs to accommodate those
eligible programs with fall enrollment deadlines.
 new text end

Sec. 5. new text begin APPROPRIATIONS.
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 School readiness. new text end

new text begin For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:
 new text end

new text begin $
 new text end 		new text begin 10,004,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 10,159,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $1,372,000 for 2013 and $8,632,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $1,463,000 for 2014 and $8,696,000 for 2015.
 new text end

new text begin Subd. 3. new text end

new text begin Early childhood family education aid. new text end

new text begin For early childhood family
education aid under Minnesota Statutes, section 124D.135:
 new text end

new text begin $
 new text end 		new text begin 21,879,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 22,422,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $3,008,000 for 2013 and $18,871,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $3,200,000 for 2014 and $19,222,000 for 2015.
 new text end

new text begin Subd. 4. new text end

new text begin Early childhood education scholarships. new text end

new text begin For early childhood education
scholarships under Minnesota Statutes, section 124D.143:
 new text end

new text begin $
 new text end 		new text begin 25,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 25,000,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $950,000 for administrative costs to run the
program.
 new text end

new text begin The 2015 appropriation includes $950,000 for administrative costs to run the
program.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin Subd. 5. new text end

new text begin Parent-child home program. new text end

new text begin For a grant to the parent-child home
program:
 new text end

new text begin $
 new text end 		new text begin 250,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 250,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The grant must be used for an evidence-based and research-validated early childhood
literacy and school readiness program for children ages 16 months to four years at its
existing suburban program location. The program must expand to one additional urban
and one additional rural program location for fiscal years 2014 and 2015.
 new text end

new text begin Subd. 6. new text end

new text begin Health and developmental screening aid. new text end

new text begin For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
 new text end

new text begin $
 new text end 		new text begin 3,390,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 3,345,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $474,000 for 2013 and $2,916,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $494,000 for 2014 and $2,851,000 for 2015.
 new text end

new text begin Subd. 7. new text end

new text begin Head Start program. new text end

new text begin For Head Start programs under Minnesota Statutes,
section 119A.52:
 new text end

new text begin $
 new text end 		new text begin 20,100,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 20,100,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 8. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under
Minnesota Statutes, section 124D.129:
 new text end

new text begin $
 new text end 		new text begin 49,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 49,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 9. new text end

new text begin Kindergarten entrance assessment initiative and intervention
program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:
 new text end

new text begin $
 new text end 		new text begin 281,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 281,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 10. new text end

new text begin Community education aid. new text end

new text begin For community education aid under
Minnesota Statutes, section 124D.20:
 new text end

new text begin $
 new text end 		new text begin 926,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 1,056,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $118,000 for 2013 and $808,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $137,000 for 2014 and $919,000 for 2015.
 new text end

new text begin Subd. 11. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities
programs under Minnesota Statutes, section 124D.56:
 new text end

new text begin $
 new text end 		new text begin 704,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 710,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $96,000 for 2013 and $608,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $102,000 for 2014 and $608,000 for 2015.
 new text end

new text begin Subd. 12. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:
 new text end

new text begin $
 new text end 		new text begin 70,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 70,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Subd. 13. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota
Statutes, section 124D.22:
 new text end

new text begin $
 new text end 		new text begin 1,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 1,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $0 for 2013 and $1,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $0 for 2014 and $1,000 for 2015.
 new text end

new text begin Subd. 14. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under
Minnesota Statutes, section 124D.531:
 new text end

new text begin $
 new text end 		new text begin 46,978,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 48,816,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin The 2014 appropriation includes $6,284,000 for 2013 and $40,694,000 for 2014.
 new text end

new text begin The 2015 appropriation includes $6,901,000 for 2014 and $41,915,000 for 2015.
 new text end

new text begin Subd. 15. new text end

new text begin GED tests. new text end

new text begin For payment of 60 percent of the costs of GED tests under
Minnesota Statutes, section 124D.55:
 new text end

new text begin $
 new text end 		new text begin 125,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 125,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

ARTICLE 9

STATE AGENCIES

Section 1. new text begin DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin Unless otherwise indicated, 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 Department. new text end

new text begin (a) For the Department of Education:
 new text end

new text begin $
 new text end 		new text begin 22,283,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 19,996,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin (b) $260,000 each year is for the Minnesota Children's Museum.
 new text end

new text begin (c) $41,000 each year is for the Minnesota Academy of Science.
 new text end

new text begin (d) $50,000 each year is for the Duluth Children's Museum.
 new text end

new text begin (e) $618,000 each year is for the Board of Teaching. Any balance in the first year
does not cancel but is available in the second year.
 new text end

new text begin (f) $167,000 each year is for the Board of School Administrators. Any balance in
the first year does not cancel but is available in the second year.
 new text end

new text begin (g) $1,500,000 in fiscal year 2014 and $263,000 in fiscal year 2015 only is for
transfers to the Office of Enterprise Technology to develop model Individuals with
Disabilities Education Act (IDEA) online-available paperwork for special needs students.
Any ongoing information technology support or costs for online IDEA paperwork will be
incorporated into the service-level agreement and will be paid to the Office of Enterprise
Technology by the department under the rates and mechanisms specified in that agreement.
Any balance in the first year does not cancel but is available in the second year.
 new text end

new text begin (h) $250,000 each year is for the School Finance Division to enhance financial
data analysis.
 new text end

new text begin (i) $300,000 in fiscal year 2014 only is for a grant to the Northeast Service
Cooperative for a pilot project related to energy conservation programs in Northeast
Service Cooperative member school districts.
 new text end

new text begin (j) $500,000 each year is to assist school districts in implementing an antibullying
policy.
 new text end

new text begin (k) $125,000 each year is appropriated to the Minnesota Humanities Commission
for civics education.
 new text end

new text begin (l) $35,000 each year is for a transfer to the governor's office.
 new text end

new text begin (m) $750,000 in fiscal year 2014 only is for departmental costs associated with
teacher development and evaluation.
 new text end

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

new text begin (o) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C. office.
 new text end

new text begin (p) The base in fiscal year 2016 and later is $19,733,000.
 new text end

new text begin Subd. 3. new text end

new text begin Board of Teaching; licensure by portfolio. new text end

new text begin For the Board of Teaching
for licensure by portfolio:
 new text end

new text begin $
 new text end 		new text begin 30,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 30,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin This appropriation is from the educator licensure portfolio account of the special
revenue fund.
 new text end

Sec. 2. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
 new text end

new text begin $
 new text end 		new text begin 11,591,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 11,591,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

Sec. 3. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums in this section are appropriated from the general fund to the Perpich
Center for Arts Education for the fiscal years designated:
 new text end

new text begin $
 new text end 		new text begin 7,478,000
 new text end 		new text begin .....
 new text end 		new text begin 2014
 new text end
new text begin $
 new text end 		new text begin 7,478,000
 new text end 		new text begin .....
 new text end 		new text begin 2015
 new text end

new text begin $750,000 each year is to develop an arts curriculum.
 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
 new text end

ARTICLE 10

FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 1, is amended to read:


Subd. 2.

General education aid.

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

$
 5,379,068,000
 .....
 2012
$
 deleted text begin 5,844,995,000
deleted text end new text begin 7,153,701,000new text end
.....
 2013

The 2012 appropriation includes $1,660,922,000 for 2011 and $3,718,146,000
for 2012.

The 2013 appropriation includes $2,038,568,000 for 2012 and deleted text begin $3,806,427,000
deleted text end new text begin $5,115,133,000new text end for 2013.

Sec. 2.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 2, is amended to read:


Subd. 3.

Enrollment options transportation.

For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

$
 42,000
 .....
 2012
$
 deleted text begin 46,000
 deleted text end new text begin 40,000
 new text end 		.....
 2013

Sec. 3.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
4, as amended by Laws 2012, chapter 292, article 2, section 3, is amended to read:


Subd. 4.

Abatement revenue.

For abatement aid under Minnesota Statutes, section
127A.49:

$
 1,406,000
 .....
 2012
$
 deleted text begin 2,072,000
 deleted text end new text begin 2,503,000
 new text end 		.....
 2013

The 2012 appropriation includes $346,000 for 2011 and $1,060,000 for 2012.

The 2013 appropriation includes $588,000 for 2012 and deleted text begin $1,484,000deleted text end new text begin $1,915,000
new text end for 2013.

Sec. 4.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
5, as amended by Laws 2012, chapter 292, article 2, section 4, is amended to read:


Subd. 5.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$
 145,000
 .....
 2012
$
 deleted text begin 193,000
 deleted text end new text begin 260,000
 new text end 		.....
 2013

The 2012 appropriation includes $145,000 for 2011 and $0 for 2012.

The 2013 appropriation includes $0 for 2012 and deleted text begin $193,000deleted text end new text begin $260,000new text end for 2013.

Sec. 5.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
6, as amended by Laws 2012, chapter 292, article 2, section 5, is amended to read:


Subd. 6.

Nonpublic pupil education aid.

For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

$
 14,302,000
 .....
 2012
$
 deleted text begin 15,594,000
 deleted text end new text begin 18,969,000
 new text end 		.....
 2013

The 2012 appropriation includes $4,161,000 for 2011 and $10,141,000 for 2012.

The 2013 appropriation includes $5,629,000 for 2012 and deleted text begin $9,965,000deleted text end new text begin $13,340,000
new text end for 2013.

Sec. 6.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
7, as amended by Laws 2012, chapter 292, article 2, section 6, is amended to read:


Subd. 7.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

$
 17,757,000
 .....
 2012
$
 deleted text begin 19,036,000
 deleted text end new text begin 23,648,000
 new text end 		.....
 2013

The 2012 appropriation includes $5,700,000 for 2011 and $12,057,000 for 2012.

The 2013 appropriation includes $6,694,000 for 2012 and deleted text begin $12,342,000deleted text end new text begin $16,954,000
new text end for 2013.

Sec. 7.

Laws 2011, First Special Session chapter 11, article 1, section 36, subdivision
10, as amended by Laws 2012, chapter 292, article 2, section 7, is amended to read:


Subd. 10.

Compensatory pilot project formula aid.

For grants for compensatory
pilot project formula aid as calculated under this subdivision:

$
 deleted text begin 9,368,000
 deleted text end new text begin 13,403,000
 new text end 		.....
 2013

For fiscal year 2013 only, a district which has a pupil unit count that is in the top 20
largest pupil unit counts is eligible for the greater of zero or $1,400 times the number of
compensatory pupil units, minus the amount of compensatory education revenue received
by the district under Minnesota Statutes, section 126C.10, subdivision 3.

The 2013 appropriation includes $0 for 2012 and deleted text begin $9,368,000deleted text end new text begin $13,403,000new text end for 2013.

This is a onetime appropriation.

B. EDUCATION EXCELLENCE

Sec. 8.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 8, is amended to read:


Subd. 2.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

$
 42,806,000
 .....
 2012
$
 deleted text begin 48,978,000
 deleted text end new text begin 60,067,000
 new text end 		.....
 2013

The 2012 appropriation includes $12,642,000 for 2011 and $30,164,000 for 2012.

The 2013 appropriation includes $16,746,000 for 2012 and deleted text begin $32,232,000deleted text end new text begin $43,321,000
new text end for 2013.

Sec. 9.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
4, as amended by Laws 2012, chapter 292, article 2, section 10, is amended to read:


Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86:

$
 61,181,000
 .....
 2012
$
 deleted text begin 65,498,000
 deleted text end new text begin 79,329,000
 new text end 		.....
 2013

The 2012 appropriation includes $19,272,000 for 2011 and $41,909,000 for 2012.

The 2013 appropriation includes $23,268,000 for 2012 and deleted text begin $42,230,000deleted text end new text begin $56,061,000
new text end for 2013.

The base for the final payment in fiscal year 2014 for fiscal year 2013 is deleted text begin $31,668,000
deleted text end new text begin $17,197,000new text end .

Sec. 10.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
5, as amended by Laws 2012, chapter 292, article 2, section 11, is amended to read:


Subd. 5.

Literacy incentive aid.

For literacy incentive aid under Minnesota
Statutes, section 124D.98:

$
 deleted text begin 31,241,000
 deleted text end new text begin 41,978,000
 new text end 		.....
 2013

The 2013 appropriation includes $0 for 2012 and deleted text begin $31,241,000deleted text end new text begin $41,978,000new text end for 2013.

Sec. 11.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
6, as amended by Laws 2012, chapter 292, article 2, section 12, is amended to read:


Subd. 6.

Interdistrict desegregation or integration transportation grants.

For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

$
 13,262,000
 .....
 2012
$
 deleted text begin 13,966,000
 deleted text end new text begin 13,260,000
 new text end 		.....
 2013

Sec. 12.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
7, as amended by Laws 2012, chapter 292, article 2, section 13, is amended to read:


Subd. 7.

Success for the future.

For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:

$
 2,013,000
 .....
 2012
$
 deleted text begin 2,137,000
 deleted text end new text begin 2,609,000
 new text end 		.....
 2013

The 2012 appropriation includes $638,000 for 2011 and $1,375,000 for 2012.

The 2013 appropriation includes $762,000 for 2012 and deleted text begin $1,375,000deleted text end new text begin $1,847,000
new text end for 2013.

Sec. 13.

Laws 2011, First Special Session chapter 11, article 2, section 50, subdivision
9, as amended by Laws 2012, chapter 292, article 2, section 14, is amended to read:


Subd. 9.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

$
 1,791,000
 .....
 2012
$
 deleted text begin 1,969,000
 deleted text end new text begin 2,353,000
 new text end 		.....
 2013

The 2012 appropriation includes $600,000 for 2011 and $1,191,000 for 2012.

The 2013 appropriation includes $660,000 for 2012 and deleted text begin $1,309,000deleted text end new text begin $1,693,000
new text end for 2013.

C. SPECIAL EDUCATION

Sec. 14.

Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 15, is amended to read:


Subd. 2.

Special education; regular.

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

$
 767,845,000
 .....
 2012
$
 deleted text begin 856,386,000
 deleted text end new text begin 1,046,423,000
 new text end 		.....
 2013

The 2012 appropriation includes $235,975,000 for 2011 and $531,870,000 for 2012.

The 2013 appropriation includes $295,299,000 for 2012 and deleted text begin $561,087,000
deleted text end new text begin $751,124,000new text end for 2013.

Sec. 15.

Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 16, is amended to read:


Subd. 3.

Aid for children with disabilities.

For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

$
 1,508,000
 .....
 2012
$
 deleted text begin 1,593,000
 deleted text end new text begin 1,570,000
 new text end 		.....
 2013

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

Sec. 16.

Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
4, as amended by Laws 2012, chapter 292, article 2, section 17, is amended to read:


Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

$
 314,000
 .....
 2012
$
 deleted text begin 321,000
 deleted text end new text begin 407,000
 new text end 		.....
 2013

The 2012 appropriation includes $107,000 for 2011 and $207,000 for 2012.

The 2013 appropriation includes $114,000 for 2012 and deleted text begin $207,000deleted text end new text begin $293,000new text end for 2013.

Sec. 17.

Laws 2011, First Special Session chapter 11, article 3, section 11, subdivision
5, as amended by Laws 2012, chapter 292, article 2, section 18, is amended to read:


Subd. 5.

Special education; excess costs.

For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:

$
 107,557,000
 .....
 2012
$
 deleted text begin 115,269,000
 deleted text end new text begin 134,121,000
 new text end 		.....
 2013

The 2012 appropriation includes $53,449,000 for 2011 and $54,108,000 for 2012.

The 2013 appropriation includes $59,607,000 for 2012 and deleted text begin $55,662,000deleted text end new text begin $74,514,000
new text end for 2013.

D. FACILITIES AND TECHNOLOGY

Sec. 18.

Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 19, is amended to read:


Subd. 2.

Health and safety revenue.

For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

$
 98,000
 .....
 2012
$
 deleted text begin 157,000
 deleted text end new text begin 200,000
 new text end 		.....
 2013

The 2012 appropriation includes $39,000 for 2011 and $59,000 for 2012.

The 2013 appropriation includes $32,000 for 2012 and deleted text begin $125,000deleted text end new text begin $168,000new text end for 2013.

Sec. 19.

Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 20, is amended to read:


Subd. 3.

Debt service equalization.

For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

$
 11,625,000
 .....
 2012
$
 deleted text begin 16,342,000
 deleted text end new text begin 20,237,000
 new text end 		.....
 2013

The 2012 appropriation includes $2,604,000 for 2011 and $9,021,000 for 2012.

The 2013 appropriation includes $5,008,000 for 2012 and deleted text begin $11,334,000deleted text end new text begin $15,229,000
new text end for 2013.

Sec. 20.

Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
4, as amended by Laws 2012, chapter 292, article 2, section 21, is amended to read:


Subd. 4.

Alternative facilities bonding aid.

For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:

$
 18,187,000
 .....
 2012
$
 deleted text begin 19,287,000
 deleted text end new text begin 23,549,000
 new text end 		.....
 2013

The 2012 appropriation includes $5,785,000 for 2011 and $12,402,000 for 2012.

The 2013 appropriation includes $6,885,000 for 2012 and deleted text begin $12,402,000deleted text end new text begin $16,664,000
new text end for 2013.

Sec. 21.

Laws 2011, First Special Session chapter 11, article 4, section 10, subdivision
6, as amended by Laws 2012, chapter 292, article 2, section 22, is amended to read:


Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

$
 2,331,000
 .....
 2012
$
 deleted text begin 3,141,000
 deleted text end new text begin 3,817,000
 new text end 		.....
 2013

The 2012 appropriation includes $676,000 for 2011 and $1,655,000 for 2012.

The 2013 appropriation includes $918,000 for 2012 and deleted text begin $2,223,000deleted text end new text begin $2,899,000
new text end for 2013.

E. NUTRITION AND LIBRARIES

Sec. 22.

Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 23, is amended to read:


Subd. 2.

School lunch.

For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

$
 12,285,000
 .....
 2012
$
 deleted text begin 12,524,000
 deleted text end new text begin 12,266,000
 new text end 		.....
 2013

Sec. 23.

Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 24, is amended to read:


Subd. 3.

School breakfast.

For traditional school breakfast aid under Minnesota
Statutes, section 124D.1158:

$
 5,247,000
 .....
 2012
$
 deleted text begin 5,560,000
 deleted text end new text begin 5,417,000
 new text end 		.....
 2013

Sec. 24.

Laws 2011, First Special Session chapter 11, article 5, section 12, subdivision
4, as amended by Laws 2012, chapter 292, article 2, section 25, is amended to read:


Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

$
 1,025,000
 .....
 2012
$
 deleted text begin 1,035,000
 deleted text end new text begin 1,019,000
 new text end 		.....
 2013

Sec. 25.

Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 26, is amended to read:


Subd. 2.

Basic system support.

For basic system support grants under Minnesota
Statutes, section 134.355:

$
 12,797,000
 .....
 2012
$
 deleted text begin 13,570,000
 deleted text end new text begin 16,569,000
 new text end 		.....
 2013

The 2012 appropriation includes $4,071,000 for 2011 and $8,726,000 for 2012.

The 2013 appropriation includes $4,844,000 for 2012 and deleted text begin $8,726,000deleted text end new text begin $11,725,000
new text end for 2013.

Sec. 26.

Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 27, is amended to read:


Subd. 3.

Multicounty, multitype library systems.

For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

$
 1,226,000
 .....
 2012
$
 deleted text begin 1,300,000
 deleted text end new text begin 1,588,000
 new text end 		.....
 2013

The 2012 appropriation includes $390,000 for 2011 and $836,000 for 2012.

The 2013 appropriation includes $464,000 for 2012 and deleted text begin $836,000deleted text end new text begin $1,124,000new text end for
2013.

Sec. 27.

Laws 2011, First Special Session chapter 11, article 6, section 2, subdivision
5, as amended by Laws 2012, chapter 292, article 2, section 28, is amended to read:


Subd. 5.

Regional library telecommunications aid.

For regional library
telecommunications aid under Minnesota Statutes, section 134.355:

$
 2,169,000
 .....
 2012
$
 deleted text begin 2,300,000
 deleted text end new text begin 2,809,000
 new text end 		.....
 2013

The 2012 appropriation includes $690,000 for 2011 and $1,479,000 for 2012.

The 2013 appropriation includes $821,000 for 2012 and deleted text begin $1,479,000deleted text end new text begin $1,988,000
new text end for 2013.

F. EARLY CHILDHOOD EDUCATION, PREVENTION, AND
LIFELONG LEARNING

Sec. 28.

Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 29, is amended to read:


Subd. 2.

School readiness.

For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

$
 9,444,000
 .....
 2012
$
 deleted text begin 10,095,000
 deleted text end new text begin 12,326,000
 new text end 		.....
 2013

The 2012 appropriation includes $2,952,000 for 2011 and $6,492,000 for 2012.

The 2013 appropriation includes $3,603,000 for 2012 and deleted text begin $6,492,000deleted text end new text begin $8,723,000
new text end for 2013.

Sec. 29.

Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 30, is amended to read:


Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

$
 21,099,000
 .....
 2012
$
 deleted text begin 22,358,000
 deleted text end new text begin 27,197,000
 new text end 		.....
 2013

The 2012 appropriation includes $6,542,000 for 2011 and $14,557,000 for 2012.

The 2013 appropriation includes $8,082,000 for 2012 and deleted text begin $14,276,000deleted text end new text begin $19,115,000
new text end for 2013.

Sec. 30.

Laws 2011, First Special Session chapter 11, article 7, section 2, subdivision
4, as amended by Laws 2012, chapter 292, article 2, section 31, is amended to read:


Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

$
 3,359,000
 .....
 2012
$
 deleted text begin 3,543,000
 deleted text end new text begin 4,287,000
 new text end 		.....
 2013

The 2012 appropriation includes $1,066,000 for 2011 and $2,293,000 for 2012.

The 2013 appropriation includes $1,273,000 for 2012 and deleted text begin $2,270,000deleted text end new text begin $3,014,000
new text end for 2013.

Sec. 31.

Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 32, is amended to read:


Subd. 2.

Community education aid.

For community education aid under
Minnesota Statutes, section 124D.20:

$
 442,000
 .....
 2012
$
 deleted text begin 746,000
 deleted text end new text begin 926,000
 new text end 		.....
 2013

The 2012 appropriation includes $134,000 for 2011 and $308,000 for 2012.

The 2013 appropriation includes $170,000 for 2012 and deleted text begin $576,000deleted text end new text begin $756,000new text end for 2013.

Sec. 32.

Laws 2011, First Special Session chapter 11, article 8, section 2, subdivision
3, as amended by Laws 2012, chapter 292, article 2, section 33, is amended to read:


Subd. 3.

Adults with disabilities program aid.

For adults with disabilities
programs under Minnesota Statutes, section 124D.56:

$
 654,000
 .....
 2012
$
 deleted text begin 710,000
 deleted text end new text begin 867,000
 new text end 		.....
 2013

The 2012 appropriation includes $197,000 for 2011 and $457,000 for 2012.

The 2013 appropriation includes $253,000 for 2012 and deleted text begin $457,000deleted text end new text begin $614,000new text end for 2013.

Sec. 33.

Laws 2011, First Special Session chapter 11, article 9, section 3, subdivision
2, as amended by Laws 2012, chapter 292, article 2, section 34, is amended to read:


Subd. 2.

Adult basic education aid.

For adult basic education aid under Minnesota
Statutes, section 124D.531:

$
 42,526,000
 .....
 2012
$
 deleted text begin 45,901,000
 deleted text end new text begin 56,113,000
 new text end 		.....
 2013

The 2012 appropriation includes $13,364,000 for 2011 and $29,162,000 for 2012.

The 2013 appropriation includes $16,190,000 for 2012 and deleted text begin $29,711,000deleted text end new text begin $39,923,000
new text end for 2013.