1.1                          A bill for an act 
  1.2             relating to education; modifying secondary sparsity 
  1.3             revenue; amending Minnesota Statutes 2000, section 
  1.4             126C.10, subdivision 7. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 126C.10, 
  1.7   subdivision 7, is amended to read: 
  1.8      Subd. 7.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
  1.9   secondary sparsity revenue for a school year equals the sum of 
  1.10  the results of the following calculation for each qualifying 
  1.11  high school in the district: 
  1.12     (1) the formula allowance for the school year, multiplied 
  1.13  by 
  1.14     (2) the secondary average daily membership of pupils served 
  1.15  in the high school, multiplied by 
  1.16     (3) the quotient obtained by dividing 400 minus the 
  1.17  secondary average daily membership by 400 plus the secondary 
  1.18  daily membership, multiplied by 
  1.19     (4) the lesser of 1.5 or the quotient obtained by dividing 
  1.20  the isolation index minus 23 by ten. 
  1.21     (b) A newly formed district that is the result of districts 
  1.22  combining under the cooperation and combination program or 
  1.23  consolidating under section 123A.48 must receive secondary 
  1.24  sparsity revenue equal to the greater of:  (1) the amount 
  1.25  calculated under paragraph (a) for the combined district; or (2) 
  2.1   the sum of the amounts of secondary sparsity revenue the former 
  2.2   districts had in the year prior to consolidation, increased for 
  2.3   any subsequent changes in the secondary sparsity formula. 
  2.4      (c) For the purpose of calculating secondary sparsity 
  2.5   revenue, two or more contiguous school districts that share a 
  2.6   secondary school under a cooperation agreement must be 
  2.7   considered one school district. 
  2.8      <b>[EFFECTIVE DATE.]</b> This section is effective for revenue for 
  2.9   fiscal year 2003 and later.