Minnesota Session Laws - 2026 Regular Session

CHAPTER 117--H.F.No. 2433

An act

relating to education finance; modifying the calculation of compensatory aid for fiscal year 2027; modifying the allocation of compensatory aid for fiscal year 2028; requiring anonymous threat reporting systems; providing anonymous threat reporting system grants to schools; requiring reports; appropriating money;

amending Minnesota Statutes 2024, sections 13.321, by adding a subdivision; 13.82, by adding a subdivision; Minnesota Statutes 2025 Supplement, sections 126C.10, subdivision 3; 126C.15, subdivision 2; Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 121A.

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

Section 1.

Minnesota Statutes 2024, section 13.321, is amended by adding a subdivision to read:

new text begin Subd. 13. new text end

new text begin Local anonymous threat reporting system. new text end

new text begin Section 121A.0361, subdivision 5, governs data collected, created, or maintained through a local anonymous threat reporting system. new text end

Sec. 2.

Minnesota Statutes 2024, section 13.82, is amended by adding a subdivision to read:

new text begin Subd. 33. new text end

new text begin Statewide anonymous threat reporting system. new text end

new text begin Section 121A.0361, subdivision 5, governs data collected, created, or maintained through the Department of Public Safety's statewide anonymous threat reporting system. new text end

Sec. 3.

new text begin [121A.0361] ANONYMOUS THREAT REPORTING SYSTEM. new text end

new text begin Subdivision 1. new text end

new text begin Anonymous threat reporting system. new text end

new text begin By June 30, 2027, the board of a school district or charter school must adopt a policy at a school board meeting to implement the use of an anonymous threat reporting system, and inform the commissioner of education which option listed in subdivision 4 the board selected. The district or charter school must implement either the local or the statewide anonymous threat reporting system by July 1, 2028. new text end

new text begin Subd. 2. new text end

new text begin Local anonymous threat reporting system. new text end

new text begin (a) A local anonymous threat reporting system must: new text end

new text begin (1) support anonymous reporting 24 hours a day using a mobile application, website, and toll-free hotline; new text end

new text begin (2) be used to receive anonymous tips regarding dangerous, violent, threatening, harmful, or potentially harmful activity that occurs, or is threatened on, school property or relates to an enrolled student or school personnel; new text end

new text begin (3) immediately forward reported information to designated school staff, the Bureau of Criminal Apprehension, and local law enforcement as soon as practicable; and new text end

new text begin (4) comply with subdivision 5, data practices under chapter 13, and the Family Educational Rights and Privacy Act of 1974, United States Code, title 20, section 1232g. new text end

new text begin (b) A school district or charter school that implements its own system may enter into a contract to develop and implement an anonymous threat reporting system that meets the requirements of this subdivision. new text end

new text begin (c) A school district or charter school that establishes a local anonymous threat reporting system must: new text end

new text begin (1) designate school staff to receive and respond to a report submitted through the anonymous threat reporting system; new text end

new text begin (2) require training for school staff designated to receive and respond to a report submitted through the anonymous threat reporting system, including training on coordinating a response to reports with the Bureau of Criminal Apprehension and local law enforcement; new text end

new text begin (3) promote public awareness and education about the anonymous threat reporting system by providing, to students, families, employees, and the school community, information about the anonymous threat reporting system and how to use it, including by: new text end

new text begin (i) posting on the district's or charter school's website information about the local anonymous threat reporting system; new text end

new text begin (ii) including information in the student handbook about the local anonymous threat reporting system; and new text end

new text begin (iii) notifying parents annually of the availability of the local anonymous threat reporting system; and new text end

new text begin (4) report to the commissioner of education, in the form and manner determined by the commissioner, the type of system adopted. new text end

new text begin (d) A school district or charter school that implemented a local anonymous threat reporting system before July 1, 2026, may continue to use the system even if the system does not meet the requirements of this section, as long as the system immediately forwards reported information to designated school staff, the Bureau of Criminal Apprehension, and local law enforcement. new text end

new text begin (e) Information about a district or charter school's local anonymous threat reporting system is "security information" as defined in section 13.37, subdivision 1, including information reported to the Department of Education under this section. new text end

new text begin Subd. 3. new text end

new text begin Statewide anonymous threat reporting system. new text end

new text begin (a) A school district or charter school that does not implement its own local anonymous threat reporting system in accordance with subdivision 2 must provide, to students, families, employees, and the school community, information about the Department of Public Safety's statewide anonymous threat reporting system and how to use the system. A district or charter school must, at a minimum: new text end

new text begin (1) post on the district's or charter school's website information about the Department of Public Safety's statewide anonymous threat reporting system; new text end

new text begin (2) include information in the student handbook about the Department of Public Safety's statewide anonymous threat reporting system; and new text end

new text begin (3) notify parents annually of the availability of the Department of Public Safety's statewide anonymous threat reporting system. new text end

new text begin (b) A school district or charter school that uses and promotes the statewide system must report to the commissioner, in the form and manner determined by the commissioner, that it has complied with this subdivision. new text end

new text begin Subd. 4. new text end

new text begin Department of Education. new text end

new text begin By January 15, 2028, and each year thereafter, the commissioner of education must submit a report to the legislative committees with jurisdiction over kindergarten through grade 12 education and public safety that lists the districts and charter schools that have: new text end

new text begin (1) implemented a local anonymous threat reporting system; new text end

new text begin (2) used and promoted the statewide system; and new text end

new text begin (3) neither implemented a local anonymous threat reporting system nor used and promoted the statewide system. new text end

new text begin Subd. 5. new text end

new text begin Data practices. new text end

new text begin (a) The definitions in section 13.02 apply to this subdivision. For purposes of this subdivision, the following additional terms have the meanings given: new text end

new text begin (1) "anonymous threat reporting system data" means all data created, collected, received, or maintained by either a local anonymous threat reporting system or the Department of Public Safety's statewide anonymous threat reporting system. Anonymous threat reporting system data also includes data created by a school district or charter school, the Department of Education, a law enforcement agency, or noncriminal justice partners in response to a tip or report received by either a local anonymous threat reporting system or the Department of Public Safety's statewide anonymous threat reporting system; new text end

new text begin (2) "law enforcement agency" has the meaning given in section 626.84, subdivision 1, paragraph (f); and new text end

new text begin (3) "noncriminal justice partners" means the multidisciplinary team of professionals utilized by a law enforcement agency, that may include, but is not limited to, school administrators, behavioral health and social services providers, community partners, faith leaders, medical personnel, public safety professionals, or other partners. new text end

new text begin (b) Anonymous threat reporting system data are classified as confidential data on individuals or protected nonpublic data while the anonymous threat report is active. Active anonymous threat reporting system data may be shared between or among a school district or charter school, the Department of Public Safety, the Department of Education, law enforcement agencies, and noncriminal justice partners. Inactive anonymous threat reporting system data from a local anonymous threat reporting system are governed by section 13.32. Inactive anonymous threat reporting system data from the Department of Public Safety's statewide anonymous threat reporting system are governed by section 13.82, subdivision 7. new text end

new text begin (c) Anonymous threat reporting system data are active upon creation, collection, or receipt, but shall become inactive: new text end

new text begin (1) when the school district or charter school, the Department of Education, or a law enforcement agency has determined that the data is no longer connected to a potential risk or threat; or new text end

new text begin (2) two years following the last associated report of potential risk or threat made to either the local anonymous threat reporting system or the Department of Public Safety's statewide anonymous threat reporting system. new text end

new text begin (d) Nothing in this subdivision restricts the application of section 13.37 or 13.82, subdivision 25, to inactive anonymous threat reporting system data. new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026. new text end

Sec. 4.

Minnesota Statutes 2025 Supplement, section 126C.10, subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) A district's compensatory revenue equals the sum of its compensatory revenue for each building in the district and the amounts designated under Laws 2015, First Special Session chapter 3, article 2, section 70, subdivision 8, for fiscal year 2017. Revenue shall be paid to the district and must be allocated according to section 126C.15, subdivision 2.

(b) For fiscal years 2024, 2025, and 2026, the compensatory education revenue for each building in the district equals the formula allowance minus $839 times the compensation revenue pupil units computed according to section 126C.05, subdivision 3.

(c) For fiscal year 2027 and later, the compensatory education revenue for each building in the district equals its compensatory pupils multiplied by the building compensatory allowance.

(d) 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.

(e) 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.

(f) Notwithstanding paragraph deleted text begin (c) deleted text end new text begin (b) new text end , for fiscal year 2026, if the sum of the amounts calculated under paragraph deleted text begin (c) deleted text end new text begin (b) new text end is less than $838,947,000, the commissioner must proportionately increase the revenue to each building until the total statewide revenue calculated for each building equals $838,947,000.

(g) Notwithstanding paragraph (c), for fiscal year 2027 and later, if the sum of the amounts calculated under paragraph (c) is less than $857,152,000, the commissioner must proportionately increase the revenue to each building until the total statewide revenue calculated for each building equals $857,152,000.

new text begin (h) Notwithstanding paragraph (c), for fiscal year 2027 only, the compensatory education revenue for each building equals the greater of: new text end

new text begin (1) the amount calculated for the building under paragraphs (c) and (g); or new text end

new text begin (2) the building minimum amount calculated under paragraph (i). new text end

new text begin (i) For purposes of paragraph (h), the building minimum amount equals the product of: new text end

new text begin (1) the compensatory education revenue for the building for fiscal year 2026; new text end

new text begin (2) the lesser of one or the ratio of the number of pupils enrolled in the building on October 1, 2025, to the number of pupils enrolled in the building on October 1, 2024; and new text end

new text begin (3) 0.659771. new text end

Sec. 5.

Minnesota Statutes 2025 Supplement, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district or cooperative must allocate at least 80 percent of its compensatory revenue to each school building in the district or cooperative where the children who have generated the revenue are served unless the school district or cooperative has received permission under Laws 2005, First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue according to student performance measures developed by the school board.

(b) A district or cooperative may allocate no more than 20 percent of the amount of compensatory revenue that the district receives to school sites according to a plan adopted by the school board. The money reallocated under this paragraph must be spent for the purposes listed in subdivision 1, but may be spent on students in any grade, including students attending school readiness or other prekindergarten programs.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means education site as defined in section 123B.04, subdivision 1.

(d) Notwithstanding section 123A.26, subdivision 1, compensatory revenue generated by students served at a cooperative unit shall be paid to the cooperative unit.

(e) A district or cooperative with school building openings, school building closings, changes in attendance area boundaries, or other changes in programs or student demographics between the prior year and the current year may reallocate compensatory revenue among sites to reflect these changes. A district or cooperative must report to the department any adjustments it makes according to this paragraph and the department must use the adjusted compensatory revenue allocations in preparing the report required under section 123B.76, subdivision 3, paragraph (c).

(f) For fiscal years 2026 deleted text begin and deleted text end new text begin , new text end 2027 new text begin , and 2028 new text end only, notwithstanding the percentages specified in paragraphs (a) and (b), a district may allocate up to 40 percent of the amount of compensatory revenue that the district receives to school sites according to a plan adopted by the school board, consistent with the purposes listed in subdivision 1.

Sec. 6.

Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 2, is amended to read:

Subd. 2.

General education aid.

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

	$	deleted text begin 8,509,608,000 deleted text end new text begin 8,550,641,000 new text end	.....	2026
	$	deleted text begin 8,765,730,000 deleted text end new text begin 8,783,520,000 new text end	.....	2027

(b) The 2026 appropriation includes $783,251,000 for 2025 and deleted text begin $7,726,357,000 deleted text end new text begin $7,767,390,000 new text end for 2026.

(c) The 2027 appropriation includes deleted text begin $807,134,000 deleted text end new text begin $802,177,000 new text end for 2026 and deleted text begin $7,958,596,000 deleted text end new text begin $7,981,343,000 new text end for 2027.

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 SUPERSEDING EFFECT. new text end

new text begin The amendments made to Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 2, in this act supersede and prevail over any other amendment made to Laws 2025, First Special Session chapter 10, article 1, section 28, subdivision 2, during the 2026 Regular Session, regardless of order of enactment. 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 APPROPRIATIONS; ANONYMOUS THREAT REPORTING SYSTEMS. new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) $4,000,000 in fiscal year 2027 is appropriated from the general fund to the Department of Public Safety, Division of Homeland Security and Emergency Management, for grants to schools for the development, purchase, implementation, operation, and maintenance of anonymous threat reporting systems. new text end

new text begin (b) A school district, charter school, cooperative unit under Minnesota Statutes, section 123A.24 that serves students, Tribal contract school, or nonpublic school may apply for a grant in the form and manner specified by the Division of Homeland Security and Emergency Management. A school district must submit a single application identifying all school sites for which it seeks funding. An applicant must apply for a grant in the form and manner specified by the Division of Homeland Security and Emergency Management. The Division of Homeland Security and Emergency Management may establish grant application timelines and may award grants in more than one round. Grants may be awarded in an amount not to exceed $10,000 per school district or cooperative unit, and $2,500 per charter school, Tribal contract school, or nonpublic school. Grants must be awarded to schools located in all geographic regions of the state. new text end

new text begin (c) Grant funds may be used to fund expenses associated with the development, purchase, implementation, operation, and maintenance of an anonymous threat reporting system, including staff compensation. Grant funds may also be used to compensate staff who are responsible for responding to threats received through the system. new text end

new text begin (d) By February 15 following each year a grant is awarded under this section, the Minnesota School Safety Center, Division of Homeland Security and Emergency Management, and Department of Public Safety must report to the chairs and ranking minority members of the legislative committees with jurisdiction over kindergarten through grade 12 education and public safety on how grant money was awarded and distributed. The report must identify the grant recipients and how the grant money was used by each recipient. new text end

new text begin (e) This is a onetime appropriation. This appropriation is available until June 30, 2029. new text end

new text begin Subd. 2. new text end

new text begin Statewide threat assessment and investigations. new text end

new text begin $1,000,000 in fiscal year 2027 is appropriated from the general fund to the Department of Public Safety, Bureau of Criminal Apprehension, for staffing and operating costs related to threat assessment and investigations. This is a onetime appropriation and is available until June 30, 2029. new text end

Presented to the governor May 20, 2026