1.1                          A bill for an act 
  1.2             relating to education; providing that referendum 
  1.3             equalization aid shall not be paid to a charter school 
  1.4             or to a nonresident district; amending Minnesota 
  1.5             Statutes 1999 Supplement, sections 124D.11, 
  1.6             subdivision 1; and 127A.47, subdivision 7. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.9   124D.11, subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
  1.11  education revenue must be paid to a charter school as though it 
  1.12  were a district.  The general education revenue for each 
  1.13  adjusted marginal cost pupil unit is the state average general 
  1.14  education revenue per pupil unit, ~~plus the referendum~~ 
  1.15  ~~equalization aid allowance in the pupil's district of residence,~~ 
  1.16  minus an amount equal to the product of the formula allowance 
  1.17  according to section 126C.10, subdivision 2, times .0485, 
  1.18  calculated without basic skills revenue, transportation sparsity 
  1.19  revenue, and the transportation portion of the transition 
  1.20  revenue adjustment, plus basic skills revenue as though the 
  1.21  school were a school district. 
  1.22     Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  1.23  127A.47, subdivision 7, is amended to read: 
  1.24     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
  1.25  general education aid for districts must be adjusted for each 
  1.26  pupil attending a nonresident district under sections 123A.05 to 
  2.1   123A.08, 124D.03, 124D.06, 124D.07, 124D.08, and 124D.68.  The 
  2.2   adjustments must be made according to this subdivision. 
  2.3      ~~(a) General education aid paid to a resident district must~~ 
  2.4   ~~be reduced by an amount equal to the referendum equalization aid~~ 
  2.5   ~~attributable to the pupil in the resident district.~~ 
  2.6      ~~(b) General education aid paid to a district serving a~~ 
  2.7   ~~pupil in programs listed in this subdivision must be increased~~ 
  2.8   ~~by an amount equal to the referendum equalization aid~~ 
  2.9   ~~attributable to the pupil in the nonresident district.~~  
  2.10     ~~(c) If the amount of the reduction to be made from the~~ 
  2.11  ~~general education aid of the resident district is greater than~~ 
  2.12  ~~the amount of general education aid otherwise due the district,~~ 
  2.13  ~~the excess reduction must be made from other state aids due the~~ 
  2.14  ~~district.~~ 
  2.15     ~~(d)~~ (b) The district of residence must pay tuition to a 
  2.16  district or an area learning center, operated according to 
  2.17  paragraph ~~(e)~~ (c), providing special instruction and services to 
  2.18  a pupil with a disability, as defined in section 125A.02, or a 
  2.19  pupil, as defined in section 125A.51, who is enrolled in a 
  2.20  program listed in this subdivision.  The tuition must be equal 
  2.21  to (1) the actual cost of providing special instruction and 
  2.22  services to the pupil, including a proportionate amount for debt 
  2.23  service and for capital expenditure facilities and equipment, 
  2.24  and debt service but not including any amount for 
  2.25  transportation, minus (2) the amount of general education 
  2.26  revenue and special education aid but not including any amount 
  2.27  for transportation, attributable to that pupil, that is received 
  2.28  by the district providing special instruction and services. 
  2.29     ~~(e)~~ (c) An area learning center operated by a service 
  2.30  cooperative, intermediate district, education district, or a 
  2.31  joint powers cooperative may elect through the action of the 
  2.32  constituent boards to charge tuition for pupils ~~rather than to~~ 
  2.33  ~~calculate general education aid adjustments under paragraph (a),~~ 
  2.34  ~~(b), or (c)~~.  The tuition must be equal to the greater of the 
  2.35  average general education revenue per pupil unit attributable to 
  2.36  the pupil, or the actual cost of providing the instruction, 
  3.1   excluding transportation costs, if the pupil meets the 
  3.2   requirements of section 125A.02 or 125A.51. 
  3.3      Sec. 3.  [EFFECTIVE DATE.] 
  3.4      Sections 1 and 2 are effective July 1, 2000.