1.1 	A bill for an act
1.2 	relating to education finance; expanding permissible fund transfers;amending 
1.3 	Minnesota Statutes 2010, section 123B.79, subdivision 1; repealing Minnesota 
1.4 	Statutes 2010, section 123B.79, subdivision 8.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2010, section 123B.79, subdivision 1, is amended to read:
1.7 		Subdivision 1.Limitations. Except as provided in this subdivision, sections 
1.8 	123B.51, 123B.80, 475.61, and 475.65, a district may not (1) permanently transfer money 
1.9 	from (1) an operating fund to a nonoperating fund; (2) a nonoperating fund to another 
1.10 	nonoperating fund; or (3) a nonoperating fund to an operating fund the community 
1.11 	education or food service funds or (2) transfer money received from federal funds granted 
1.12 	for a particular purpose. A district may not permanently transfer funds that increase state 
1.13 	aid obligations or result in additional property tax authority for the district. Permanent 
1.14 	transfers may be made from any fund to any other fund to correct for prior fiscal years' 
1.15 	errors discovered after the books have been closed for that year. Permanent transfers may 
1.16 	be made from the general fund to any other operating funds according to section 121A.19
1.17 	or if the resources of the other fund are not adequate to finance approved expenditures 
1.18 	from that other fund. Permanent transfers may also be made from the general fund to 
1.19 	eliminate deficits in another fund when that other fund is being discontinued. When a 
1.20 	district discontinues operation of a district-owned bus fleet or a substantial portion of a 
1.21 	fleet, the balance shall cancel to the district's general fund.

1.22 	Sec. 2.  REPEALER.
 1.23 	Minnesota Statutes 2010, section 123B.79, subdivision 8, is repealed.