1.1 	A bill for an act
1.2 	relating to education finance; transferring charter school transportation 
1.3 	obligations from school districts to charter schools;amending Minnesota Statutes 
1.4 	2008, sections 124D.10, subdivision 16; 124D.11, subdivisions 1, 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 124D.10, subdivision 16, is amended to 
1.7 	read:
1.8 		Subd. 16.Transportation. (a) A charter school after its first fiscal year of operation 
1.9 	by March 1 of each fiscal year and a charter school by July 1 of its first fiscal year of 
1.10 	operation must notify the district in which the school is located and the Department of 
1.11 	Education if it will provide its own transportation or use the transportation services of the 
1.12 	district in which it is located for the fiscal year.
1.13 	(b) If A charter school elects to must provide transportation for its pupils, the 
1.14 	transportation must be provided by the charter school residing within the district in 
1.15 	which the charter school is located according to the requirements of section 123B.88, 
1.16 	subdivision 1. The state must pay transportation aid to the charter school according to 
1.17 	section 124D.11, subdivision 2.
1.18 	For pupils who reside outside the district in which the charter school is located, the 
1.19 	charter school is not required to provide or pay for transportation between the pupil's 
1.20 	residence and the border of the district in which the charter school is located. A parent 
1.21 	may be reimbursed by the charter school for costs of transportation from the pupil's 
1.22 	residence to the border of the district in which the charter school is located if the pupil is 
1.23 	from a family whose income is at or below the poverty level, as determined by the federal 
1.24 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
2.1 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
2.2 	more than 250 miles per week.
2.3 	At the time a pupil enrolls in a charter school, the charter school must provide the 
2.4 	parent or guardian with information regarding the transportation.
2.5 	(c) If a charter school does not elect to provide transportation, transportation for 
2.6 	pupils enrolled at the school must be provided by the district in which the school is 
2.7 	located, according to sections 123B.88, subdivision 6, and 124D.03, subdivision 8, for a 
2.8 	pupil residing in the same district in which the charter school is located. Transportation 
2.9 	may be provided by the district in which the school is located, according to sections 
2.10 	123B.88, subdivision 6, and 124D.03, subdivision 8, for a pupil residing in a different 
2.11 	district. If the district provides the transportation, the scheduling of routes, manner and 
2.12 	method of transportation, control and discipline of the pupils, and any other matter relating 
2.13 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
2.14 	control, and management of the district. 

2.15 	EFFECTIVE DATE. This section is effective July 1, 2009.

2.16 	Sec. 2. Minnesota Statutes 2008, section 124D.11, subdivision 1, is amended to read:
2.17 		Subdivision 1.General education revenue. (a) General education revenue must 
2.18 	be paid to a charter school as though it were a district. The general education revenue 
2.19 	for each adjusted marginal cost pupil unit is the state average general education revenue 
2.20 	per pupil unit, plus the referendum equalization aid allowance in the pupil's district of 
2.21 	residence, minus an amount equal to the product of the formula allowance according to 
2.22 	section 126C.10, subdivision 2, times .0485, calculated without basic skills revenue, 
2.23 	extended time revenue, alternative teacher compensation revenue, transition revenue, and 
2.24 	transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic 
2.25 	alternative teacher compensation aid according to section 126C.10, subdivision 34, and 
2.26 	transition revenue as though the school were a school district. The general education 
2.27 	revenue for each extended time marginal cost pupil unit equals $4,378.
2.28 	(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, 
2.29 	general education revenue shall be computed using the number of adjusted pupil units 
2.30 	in the current fiscal year.

2.31 	EFFECTIVE DATE. This section is effective July 1, 2009.

2.32 	Sec. 3. Minnesota Statutes 2008, section 124D.11, subdivision 2, is amended to read:
3.1 		Subd. 2.Transportation revenue. A charter school qualifies for transportation 
3.2 	revenue must be paid to a charter school that provides transportation services according to 
3.3 	section 124D.10, subdivision 16, according to this subdivision. Transportation aid shall 
3.4 	equal transportation revenue in the same manner as a school district.
3.5 	In addition to the revenue under subdivision 1, a charter school providing 
3.6 	transportation services must receive general education aid equal to the sum of the product 
3.7 	of (i) an amount equal to the product of the formula allowance according to section 
3.8 	126C.10, subdivision 2, times .0485, plus the transportation sparsity allowance for the 
3.9 	school district in which the charter school is located times (ii) the adjusted marginal cost 
3.10 	pupil units, plus the product of $223 times the extended time marginal cost pupil units.

3.11 	EFFECTIVE DATE. This section is effective July 1, 2009.