1.1.................... moves to amend H.F. No. 3163 as follows:
1.2Page 2, after line 4, insert:

1.3    "Sec. 2. Minnesota Statutes 2008, section 123B.12, is amended to read:
1.4123B.12 INSUFFICIENT FUNDS TO PAY ORDERS.
1.5(a) In the event that a district or a cooperative unit defined in section 123A.24,
1.6subdivision 2 , has insufficient funds to pay its usual lawful current obligations, subject to
1.7section 471.69, the board may enter into agreements with banks or any person to take its
1.8orders. Any order drawn, after having been presented to the treasurer for payment and not
1.9paid for want of funds shall be endorsed by the treasurer by putting on the back thereof
1.10the words "not paid for want of funds," giving the date of endorsement and signed by the
1.11treasurer. A record of such presentment, nonpayment and endorsement shall be made by
1.12the treasurer. The treasurer shall serve a written notice upon the payee or the payee's
1.13assignee, personally, or by mail, when the treasurer is prepared to pay such orders. The
1.14notice may be directed to the payee or the payee's assignee at the address given in writing
1.15by such payee or assignee to such treasurer, at any time prior to the service of such notice.
1.16No order shall draw any interest if such address is not given when the same is unknown to
1.17the treasurer, and no order shall draw any interest after the service of such notice.
1.18(b) A district may enter, subject to section 471.69, into a an unsecured line of credit
1.19agreement with a financial institution. The amount of credit available must not exceed
1.2095 percent of average expenditure per month of operating expenditures in the previous
1.21fiscal year. Any amount advanced must be repaid no later than 45 days after the day of
1.22advancement."
1.23Page 5, after line 20, insert:

1.24    "Sec. 7. Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
1.25to read:
2.1    Subd. 17. Payment to creditors. Except where otherwise specifically authorized,
2.2state education aid payments shall be made only to the education organization earning
2.3state aid revenues as a result of providing education services."
2.4Page 21, after line 17, insert:

2.5    "Sec. 14. Minnesota Statutes 2009 Supplement, section 124D.11, subdivision 9,
2.6is amended to read:
2.7    Subd. 9. Payment of aids to charter schools. (a) Notwithstanding section 127A.45,
2.8subdivision 3 , aid payments for the current fiscal year to a charter school shall be of an
2.9equal amount on each of the 24 payment dates.
2.10(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing
2.11operation on or prior to June 30 of a school year, for the payment periods occurring after
2.12the school ceases serving students, the commissioner shall withhold the estimated state aid
2.13owed the school. The charter school board of directors and authorizer must submit to the
2.14commissioner a closure plan under chapter 308A or 317A, and financial information about
2.15the school's liabilities and assets. After receiving the closure plan, financial information,
2.16an audit of pupil counts, documentation of lease expenditures, and monitoring of special
2.17education expenditures, the commissioner may release cash withheld and may continue
2.18regular payments up to the current year payment percentages if further amounts are
2.19owed. If, based on audits and monitoring, the school received state aid in excess of the
2.20amount owed, the commissioner shall retain aid withheld sufficient to eliminate the aid
2.21overpayment. For a charter school ceasing operations prior to, or at the end of, a school
2.22year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may
2.23be made after receiving the closure plan, audit of pupil counts, monitoring of special
2.24education expenditures, documentation of lease expenditures, and school submission of
2.25Uniform Financial Accounting and Reporting Standards (UFARS) financial data for the
2.26final year of operation. Final payment may be made upon receipt of audited financial
2.27statements under section 123B.77, subdivision 3.
2.28(c) If a charter school fails to comply with the commissioner's directive to return,
2.29for cause, federal or state funds administered by the department, the commissioner may
2.30withhold an amount of state aid sufficient to satisfy the directive.
2.31(d) If, within the timeline under section 471.425, a charter school fails to pay the state
2.32of Minnesota, a school district, intermediate school district, or service cooperative after
2.33receiving an undisputed invoice for goods and services, the commissioner may withhold
2.34an amount of state aid sufficient to satisfy the claim and shall distribute the withheld
2.35aid to the interested state agency, school district, intermediate school district, or service
2.36cooperative. An interested state agency, school district, intermediate school district, or
3.1education cooperative shall notify the commissioner when a charter school fails to pay an
3.2undisputed invoice within 75 business days of when it received the original invoice.
3.3(e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent
3.4of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day
3.5of student attendance for that school year.
3.6(f) In order to receive state aid payments under this subdivision, a charter school in
3.7its first three years of operation must submit a school calendar in the form and manner
3.8requested by the department and a quarterly report to the Department of Education. The
3.9report must list each student by grade, show the student's start and end dates, if any,
3.10with the charter school, and for any student participating in a learning year program,
3.11the report must list the hours and times of learning year activities. The report must be
3.12submitted not more than two weeks after the end of the calendar quarter to the department.
3.13The department must develop a Web-based reporting form for charter schools to use
3.14when submitting enrollment reports. A charter school in its fourth and subsequent year of
3.15operation must submit a school calendar and enrollment information to the department in
3.16the form and manner requested by the department.
3.17(g) Notwithstanding chapter 317A, a charter school may not pledge or assign state
3.18aids to be received to a lender or creditor.
3.19(g) (h) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter
3.20school and satisfaction of creditors, cash and investment balances remaining shall be
3.21returned to the state."
3.22Renumber the sections in sequence and correct the internal references
3.23Correct the title numbers accordingly