1.1.................... moves to amend H.F. No. 3171 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
1.6    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
1.7or alternative learning program must reserve revenue in an amount equal to the sum of
1.8(1) at least 90 and no more than 100 percent of the district average general education
1.9revenue per adjusted pupil unit minus an amount equal to the product of the formula
1.10allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated
1.11without basic skills revenue and transportation sparsity revenue, times the number of
1.12pupil units attending an area learning center or alternative learning program under this
1.13section, plus (2) the amount of basic skills revenue generated by pupils attending the area
1.14learning center or alternative learning program. The amount of reserved revenue under
1.15this subdivision may only be spent on program costs associated with the area learning
1.16center or alternative learning program.
1.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
1.18and later.

1.19    Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
1.20amended to read:
1.21    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
1.22each year, the school district must recognize as revenue, in the fund for which the levy
1.23was made, the lesser of:
2.1(1) the sum of May, June, and July school district tax settlement revenue received in
2.2that calendar year, plus general education aid according to section 126C.13, subdivision
2.34 , received in July and August of that calendar year; or
2.4(2) the sum of:
2.5(i) the greater of 48.6 percent of the referendum levy certified according to section
2.6126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
2.7according to section 126C.17 in calendar year 2000; plus
2.8(ii) the entire amount of the levy certified in the prior calendar year according
2.9to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
2.10under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
2.11School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
2.12Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
2.13and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
2.14(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
2.15school district's general and community service funds, plus or minus auditor's adjustments,
2.16that remains after subtracting the referendum levy certified according to section 126C.17
2.17and the amount recognized according to item (ii).

2.18    Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
2.19    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
2.20postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
2.21A postsecondary institution may provide information about its programs to a secondary
2.22school or to a pupil or parent and it may advertise or otherwise recruit or solicit a
2.23secondary pupil to enroll in its programs on educational and programmatic grounds only.
2.24An institution must not enroll secondary pupils, for postsecondary enrollment options
2.25purposes, in remedial, developmental, or other courses that are not college level except
2.26when a student eligible to participate in the graduation incentives program under section
2.27124D.68 enrolls full time in a middle or early college program specifically designed to
2.28allow the student to earn dual high school and college credit. In this case, the student shall
2.29receive developmental college credit and not college credit for completing remedial or
2.30developmental courses. Once a pupil has been enrolled in a postsecondary course under
2.31this section, the pupil shall not be displaced by another student.
2.32EFFECTIVE DATE.This section is effective July 1, 2014.

2.33    Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
3.1    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this
3.2section, the department must make payments according to this subdivision for courses that
3.3were taken for secondary credit.
3.4The department must not make payments to a school district or postsecondary
3.5institution for a course taken for postsecondary credit only. The department must not
3.6make payments to a postsecondary institution for a course from which a student officially
3.7withdraws during the first 14 days of the quarter or semester or who has been absent from
3.8the postsecondary institution for the first 15 consecutive school days of the quarter or
3.9semester and is not receiving instruction in the home or hospital.
3.10A postsecondary institution shall receive the following:
3.11(1) for an institution granting quarter credit, the reimbursement per credit hour shall
3.12be an amount equal to 88 percent of the product of the formula allowance minus $415
3.13 $425, multiplied by 1.3 1.2, and divided by 45; or
3.14(2) for an institution granting semester credit, the reimbursement per credit hour
3.15shall be an amount equal to 88 percent of the product of the general revenue formula
3.16allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
3.17The department must pay to each postsecondary institution 100 percent of the
3.18amount in clause (1) or (2) within 30 days of receiving initial enrollment information
3.19each quarter or semester. If changes in enrollment occur during a quarter or semester,
3.20the change shall be reported by the postsecondary institution at the time the enrollment
3.21information for the succeeding quarter or semester is submitted. At any time the
3.22department notifies a postsecondary institution that an overpayment has been made, the
3.23institution shall promptly remit the amount due.
3.24EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

3.25    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
3.26amended to read:
3.27    Subdivision 1. General education revenue. General education revenue must be
3.28paid to a charter school as though it were a district. The general education revenue
3.29for each adjusted pupil unit is the state average general education revenue per pupil
3.30unit, plus the referendum equalization aid allowance in the pupil's district of residence,
3.31minus an amount equal to the product of the formula allowance according to section
3.32126C.10, subdivision 2 , times .0466, calculated without declining enrollment revenue,
3.33local optional revenue, basic skills revenue, extended time revenue, pension adjustment
3.34revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment
3.35revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and
4.1transition revenue as though the school were a school district. The general education
4.2revenue for each extended time pupil unit equals $4,794.
4.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
4.4and later.

4.5    Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
4.6    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
4.7through grade 12 who meets the following requirements:
4.8(1) the pupil, as declared by a parent or guardian first learned a language other than
4.9English, comes from a home where the language usually spoken is other than English, or
4.10usually speaks a language other than English; and
4.11(2) the pupil is determined by a valid assessment measuring the pupil's English
4.12language proficiency and by developmentally appropriate measures, which might include
4.13observations, teacher judgment, parent recommendations, or developmentally appropriate
4.14assessment instruments, to lack the necessary English skills to participate fully in
4.15academic classes taught in English.
4.16(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school
4.17in grades any grade 4 through 12 who was enrolled in a Minnesota public school on
4.18the dates during in the previous school year when a commissioner provided took a
4.19commissioner-provided assessment that measures measuring the pupil's emerging
4.20academic English was administered, shall not be counted as an English learner in
4.21calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
4.22 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil
4.23scored below the state cutoff score or is otherwise counted as a nonproficient participant
4.24on an the assessment measuring the pupil's emerging academic English provided by the
4.25commissioner during the previous school year, or, in the judgment of the pupil's classroom
4.26teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
4.27academic language proficiency in English, including oral academic language, sufficient to
4.28successfully and fully participate in the general core curriculum in the regular classroom.
4.29(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
4.3012 shall not be counted as an English learner in calculating English learner pupil units
4.31under section 126C.05, subdivision 17, and shall not generate state English learner aid
4.32under section 124D.65, subdivision 5, if:
4.33(1) the pupil is not enrolled during the current fiscal year in an educational program
4.34for English learners in accordance with under sections 124D.58 to 124D.64; or
5.1(2) the pupil has generated five six or more years of average daily membership in
5.2Minnesota public schools since July 1, 1996.
5.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.4and later.

5.5    Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.65, subdivision 5, is
5.6amended to read:
5.7    Subd. 5. School district EL revenue. (a) A district's English learner programs
5.8revenue equals the product of (1) $704 $726 times (2) the greater of 20 or the adjusted
5.9average daily membership of eligible English learners enrolled in the district during the
5.10current fiscal year.
5.11(b) A pupil ceases to generate state English learner aid in the school year following
5.12the school year in which the pupil attains the state cutoff score on a commissioner-provided
5.13assessment that measures the pupil's emerging academic English.
5.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.15and later.

5.16    Sec. 8. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
5.17    Subdivision 1. Approved recovery program. "Approved recovery program" means
5.18a course of instruction offered by a recovery school that provides academic services,
5.19assistance with recovery, and continuing care to students recovering from substance abuse
5.20or dependency. A recovery program may be offered in a transitional academic setting
5.21designed to meet graduation requirements. A recovery program must be approved by the
5.22commissioner of education. The commissioner may specify the manner and form of the
5.23application for the approval of a recovery school or recovery program.
5.24    Subd. 2. Eligibility. An approved recovery program is eligible for an annual
5.25recovery program grant of up to $125,000 to pay for a portion of the costs of recovery
5.26program support staff under this section. "Recovery program support staff" means licensed
5.27alcohol and chemical dependency counselors, licensed school counselors, licensed school
5.28psychologists, licensed school nurses, and licensed school social workers.
5.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
5.30and later.

5.31    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is
5.32amended to read:
6.1    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
6.2year program under section 124D.128, an area learning center or an alternative learning
6.3program approved by the commissioner under sections 123A.05 and 123A.06, or a
6.4contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
6.5subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
6.6than 935 hours in a school year for an elementary student, more than 850 hours in a school
6.7year for a kindergarten student without a disability in an all-day kindergarten program,
6.8or more than 425 hours in a school year for a half-day kindergarten student without a
6.9disability, that pupil may be counted as more than one pupil in average daily membership
6.10for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
6.11be determined by the ratio of the number of hours of instruction provided to that pupil in
6.12excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
6.13secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
6.14or the number of hours required for a full-time elementary pupil in the district to 935 for
6.15an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
6.16number of hours required for a full-time kindergarten student without a disability in the
6.17district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
6.18425 hours or the number of hours required for a half-time kindergarten student without a
6.19disability in the district to 425 for a half-day kindergarten student without a disability.
6.20Hours that occur after the close of the instructional year in June shall be attributable to
6.21the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
6.22counted as more than 1.2 pupils in average daily membership under this subdivision.
6.23(b)(i) To receive general education revenue for a pupil in an area learning center
6.24or alternative learning program that has an independent study component, a district
6.25must meet the requirements in this paragraph. The district must develop, for the pupil,
6.26a continual learning plan consistent with section 124D.128, subdivision 3. Each school
6.27district that has an area learning center or alternative learning program must reserve
6.28revenue in an amount equal to at least 90 and not more than 100 percent of the district
6.29average general education revenue per pupil unit, minus an amount equal to the product
6.30of the formula allowance according to section 126C.10, subdivision 2, times .0466,
6.31calculated without basic skills and transportation sparsity revenue, times the number of
6.32pupil units generated by students attending an area learning center or alternative learning
6.33program. The amount of reserved revenue available under this subdivision may only be
6.34spent for program costs associated with the area learning center or alternative learning
6.35program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
6.36pupils attending the eligible program must be allocated to the program.
7.1(ii) General education revenue for a pupil in a state-approved alternative program
7.2without an independent study component must be prorated for a pupil participating for
7.3less than a full year, or its equivalent. The district must develop a continual learning plan
7.4for the pupil, consistent with section 124D.128, subdivision 3. Each school district that
7.5has an area learning center or alternative learning program must reserve revenue in an
7.6amount equal to at least 90 and not more than 100 percent of the district average general
7.7education revenue per pupil unit, minus an amount equal to the product of the formula
7.8allowance according to section 126C.10, subdivision 2, times .0466, calculated without
7.9basic skills and transportation sparsity revenue, times the number of pupil units generated
7.10by students attending an area learning center or alternative learning program. The amount
7.11of reserved revenue available under this subdivision may only be spent for program costs
7.12associated with the area learning center or alternative learning program. Basic skills
7.13revenue generated according to section 126C.10, subdivision 4, by pupils attending the
7.14eligible program must be allocated to the program.
7.15(iii) General education revenue for a pupil in a state-approved alternative program
7.16that has an independent study component must be paid for each hour of teacher contact
7.17time and each hour of independent study time completed toward a credit or graduation
7.18standards necessary for graduation. Average daily membership for a pupil shall equal the
7.19number of hours of teacher contact time and independent study time divided by 1,020.
7.20(iv) For a state-approved alternative program having an independent study
7.21component, the commissioner shall require a description of the courses in the program, the
7.22kinds of independent study involved, the expected learning outcomes of the courses, and
7.23the means of measuring student performance against the expected outcomes.

7.24    Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is
7.25amended to read:
7.26    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
7.27equals the formula allowance times the adjusted marginal cost pupil units for the school
7.28year. For fiscal year 2015 and later, the basic revenue for each district equals the formula
7.29allowance times the adjusted pupil units for the school year. The formula allowance for
7.30fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The
7.31formula allowance for fiscal year 2015 and later is $5,806 $5,864.
7.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
7.33and later.

8.1    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a,
8.2is amended to read:
8.3    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
8.4fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
8.5cost pupil units of the district for each pupil in average daily membership in excess of 1.0
8.6and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
8.7time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
8.8of the adjusted pupil units of the district for each pupil in average daily membership in
8.9excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
8.10(b) A school district's extended time revenue may be used for extended day
8.11programs, extended week programs, summer school, and other programming authorized
8.12under the learning year program.
8.13EFFECTIVE DATE.This section is effective the day following final enactment
8.14and applies to revenue for fiscal year 2014 and later.

8.15    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24,
8.16is amended to read:
8.17    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
8.18    (1) the school district's adjusted pupil unit amount of basic revenue, transition
8.19revenue, and referendum revenue is less than the value of the school district at or
8.20immediately above the 95th percentile of school districts in its equity region for those
8.21revenue categories; and
8.22    (2) the school district's administrative offices are not located in a city of the first
8.23class on July 1, 1999.
8.24    (b) Equity revenue for a qualifying district that receives referendum revenue under
8.25section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
8.26units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
8.27equity index computed under subdivision 27.
8.28    (c) Equity revenue for a qualifying district that does not receive referendum revenue
8.29under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
8.30units for that year times $14.
8.31    (d) A school district's equity revenue is increased by the greater of zero or an amount
8.32equal to the district's resident adjusted pupil units times the difference between ten percent
8.33of the statewide average amount of referendum revenue per resident adjusted pupil unit for
8.34that year and the district's referendum revenue per resident adjusted pupil unit. A school
8.35district's revenue under this paragraph must not exceed $100,000 for that year.
9.1    (e) A school district's equity revenue for a school district located in the metro equity
9.2region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
9.3    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
9.4units.
9.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
9.6and later.

9.7    Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
9.8    Subd. 25. Regional equity gap. The regional equity gap equals the difference
9.9between the value of the school district at or immediately above the fifth percentile of
9.10adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
9.11district at or immediately above the 95th percentile of adjusted general revenue per
9.12adjusted marginal cost pupil unit.
9.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
9.14and later.

9.15    Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
9.16    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
9.17or the difference between the district's adjusted general revenue and the value of the
9.18school district at or immediately above the regional 95th percentile of adjusted general
9.19revenue per adjusted marginal cost pupil unit.
9.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
9.21and later.

9.22    Sec. 15. Minnesota Statutes 2012, section 126C.10, subdivision 28, is amended to read:
9.23    Subd. 28. Equity region. For the purposes of computing equity revenue under
9.24subdivision 24, a district with its administrative office located in Anoka, Carver, Dakota,
9.25Hennepin, Ramsey, Scott, or Washington County on January 1, 2012, with any of
9.26its area located within the seven-county metropolitan area or any of its area in the
9.27Minneapolis-St.Paul-Bloomington, MN-WI Metropolitan Statistical Area delineated by
9.28the federal Office of Management and Budget, is part of the metro equity region. All other
9.29districts are part of the rural equity region.
9.30EFFECTIVE DATE.This section is effective for fiscal year 2016 and later.

10.1    Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
10.2is amended to read:
10.3    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
10.4sum of the transition revenue the district would have received for fiscal year 2015 under
10.5Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
10.6of zero or the difference between:
10.7    (1) the sum of:
10.8    (i) the general education revenue the district would have received for fiscal year
10.92015 according to Minnesota Statutes 2012, section 126C.10;
10.10(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
10.11Statutes 2012, section 124D.86;
10.12(iii) the pension adjustment the district would have received for fiscal year 2015
10.13under Minnesota Statutes 2012, section 127A.50;
10.14(iv) the special education aid the district would have received for fiscal year 2015
10.15under Minnesota Statutes 2012, section 125A.76; and
10.16(v) the special education excess cost aid the district would have received for fiscal
10.17year 2015 under Minnesota Statutes 2012, section 125A.79; and
10.18(2) the sum of the district's:
10.19(i) general education revenue for fiscal year 2015 excluding transition revenue
10.20under this section;
10.21(ii) achievement and integration revenue for fiscal year 2015 under section
10.22124D.862 ; and
10.23(iii) special education aid for fiscal year 2015 under section 125A.76; and
10.24(iv) alternative teacher compensation revenue for fiscal year 2015 under section
10.25122A.415,
10.26divided by the number of adjusted pupil units for fiscal year 2015.
10.27    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
10.28the district's transition allowance times the district's adjusted pupil units.
10.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
10.30and later.

10.31    Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
10.32amended to read:
10.33    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
10.34 A district's referendum equalization levy equals the sum of the first tier referendum
11.1equalization levy, the second tier referendum equalization levy, and the third tier
11.2referendum equalization levy.
11.3(b) A district's first tier referendum equalization levy equals the district's first tier
11.4referendum equalization revenue times the lesser of one or the ratio of the district's
11.5referendum market value per resident pupil unit to $880,000.
11.6(c) A district's second tier referendum equalization levy equals the district's second
11.7tier referendum equalization revenue times the lesser of one or the ratio of the district's
11.8referendum market value per resident pupil unit to $510,000.
11.9(d) A district's third tier referendum equalization levy equals the district's third
11.10tier referendum equalization revenue times the lesser of one or the ratio of the district's
11.11referendum market value per resident pupil unit to $290,000.

11.12    Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
11.13is amended to read:
11.14    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
11.15of a district's referendum equalization aid and location equity aid under section 126C.10,
11.16subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
11.17equalization aid the district would have received for fiscal year 2015 under Minnesota
11.18Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
11.19received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
11.20(a), (b), and (c).
11.21(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and
11.22location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later,
11.23for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
11.24not be less than the product of (1) the district's referendum equalization aid for fiscal year
11.252015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
11.26school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
11.27of one or the ratio of the district's referendum market value used for fiscal year 2015
11.28referendum equalization calculations to the district's referendum market value used for
11.29that year's referendum equalization calculations.
11.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
11.31and later.

11.32    Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
11.33amended to read:
12.1    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
12.2subdivision 1 , may be increased in the amount approved by the voters of the district
12.3at a referendum called for the purpose. The referendum may be called by the board.
12.4The referendum must be conducted one or two calendar years before the increased levy
12.5authority, if approved, first becomes payable. Only one election to approve an increase
12.6may be held in a calendar year. Unless the referendum is conducted by mail under
12.7subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
12.8first Monday in November. The ballot must state the maximum amount of the increased
12.9revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
12.10of increased revenue per adjusted pupil unit that differs from year to year over the number
12.11of years for which the increased revenue is authorized or may state that the amount shall
12.12increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
12.13annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
12.14state that existing referendum levy authority is expiring. In this case, the ballot may also
12.15compare the proposed levy authority to the existing expiring levy authority, and express
12.16the proposed increase as the amount, if any, over the expiring referendum levy authority.
12.17The ballot must designate the specific number of years, not to exceed ten, for which the
12.18referendum authorization applies. The ballot, including a ballot on the question to revoke
12.19or reduce the increased revenue amount under paragraph (c), must abbreviate the term
12.20"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
12.21be modified to read, in cases of renewing existing levies at the same amount per pupil
12.22as in the previous year:
12.23"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
12.24TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
12.25SCHEDULED TO EXPIRE."
12.26    The ballot may contain a textual portion with the information required in this
12.27subdivision and a question stating substantially the following:
12.28    "Shall the increase in the revenue proposed by (petition to) the board of .........,
12.29School District No. .., be approved?"
12.30    If approved, an amount equal to the approved revenue per adjusted pupil unit times
12.31the adjusted pupil units for the school year beginning in the year after the levy is certified
12.32shall be authorized for certification for the number of years approved, if applicable, or
12.33until revoked or reduced by the voters of the district at a subsequent referendum.
12.34    (b) The board must prepare and deliver by first class mail at least 15 days but no more
12.35than 30 days before the day of the referendum to each taxpayer a notice of the referendum
12.36and the proposed revenue increase. The board need not mail more than one notice to any
13.1taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
13.2those shown to be owners on the records of the county auditor or, in any county where
13.3tax statements are mailed by the county treasurer, on the records of the county treasurer.
13.4Every property owner whose name does not appear on the records of the county auditor
13.5or the county treasurer is deemed to have waived this mailed notice unless the owner
13.6has requested in writing that the county auditor or county treasurer, as the case may be,
13.7include the name on the records for this purpose. The notice must project the anticipated
13.8amount of tax increase in annual dollars for typical residential homesteads, agricultural
13.9homesteads, apartments, and commercial-industrial property within the school district.
13.10    The notice for a referendum may state that an existing referendum levy is expiring
13.11and project the anticipated amount of increase over the existing referendum levy in
13.12the first year, if any, in annual dollars for typical residential homesteads, agricultural
13.13homesteads, apartments, and commercial-industrial property within the district.
13.14    The notice must include the following statement: "Passage of this referendum will
13.15result in an increase in your property taxes." However, in cases of renewing existing levies,
13.16the notice may include the following statement: "Passage of this referendum extends an
13.17existing operating referendum at the same amount per pupil as in the previous year."
13.18    (c) A referendum on the question of revoking or reducing the increased revenue
13.19amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
13.20revoke or reduce the revenue amount must state the amount per resident marginal cost
13.21 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
13.22by the voters of the district pursuant to paragraph (a) must be available to the school
13.23district at least once before it is subject to a referendum on its revocation or reduction for
13.24subsequent years. Only one revocation or reduction referendum may be held to revoke or
13.25reduce referendum revenue for any specific year and for years thereafter.
13.26    (d) The approval of 50 percent plus one of those voting on the question is required to
13.27pass a referendum authorized by this subdivision.
13.28    (e) At least 15 days before the day of the referendum, the district must submit a
13.29copy of the notice required under paragraph (b) to the commissioner and to the county
13.30auditor of each county in which the district is located. Within 15 days after the results
13.31of the referendum have been certified by the board, or in the case of a recount, the
13.32certification of the results of the recount by the canvassing board, the district must notify
13.33the commissioner of the results of the referendum.
13.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
13.35and later.

14.1    Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
14.2is amended to read:
14.3    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
14.49, a school district may convert up to $300 per adjusted pupil unit of referendum authority
14.5from voter approved to board approved by a board vote. A district with less than $300 per
14.6adjusted pupil unit of referendum authority after the local optional revenue subtraction
14.7under subdivision 1 may authorize new referendum authority up to the difference between
14.8$300 per adjusted pupil unit and the district's referendum authority. The board may
14.9authorize this levy for up to five years and may subsequently reauthorize that authority
14.10in increments of up to five years.
14.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
14.12and later.

14.13    Sec. 21. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
14.14126C.44 SAFE SCHOOLS LEVY.
14.15    (a) Each district may make a levy on all taxable property located within the district
14.16for the purposes specified in this section. The maximum amount which may be levied for
14.17all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
14.18units for the school year. The proceeds of the levy must be reserved and used for directly
14.19funding the following purposes or for reimbursing the cities and counties who contract
14.20with the district for the following purposes:
14.21    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
14.22peace officers and sheriffs for liaison in services in the district's schools;
14.23    (2) to pay the costs for a drug abuse prevention program as defined in section
14.24609.101, subdivision 3 , paragraph (e), in the elementary schools;
14.25    (3) to pay the costs for a gang resistance education training curriculum in the
14.26district's schools;
14.27    (4) to pay the costs for security in the district's schools and on school property;
14.28    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
14.29voluntary opt-in suicide prevention tools, and violence prevention measures taken by
14.30the school district;
14.31    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
14.32school social workers, licensed school psychologists, and licensed alcohol and chemical
14.33dependency counselors to help provide early responses to problems;
15.1    (7) to pay for facility security enhancements including laminated glass, public
15.2announcement systems, emergency communications devices, and equipment and facility
15.3modifications related to violence prevention and facility security;
15.4    (8) to pay for costs associated with improving the school climate; or
15.5    (9) to pay costs for colocating and collaborating with mental health professionals
15.6who are not district employees or contractors.
15.7    (b) For expenditures under paragraph (a), clause (1), the district must initially
15.8attempt to contract for services to be provided by peace officers or sheriffs with the
15.9police department of each city or the sheriff's department of the county within the district
15.10containing the school receiving the services. If a local police department or a county
15.11sheriff's department does not wish to provide the necessary services, the district may
15.12contract for these services with any other police or sheriff's department located entirely or
15.13partially within the school district's boundaries.
15.14    (c) A school district that is a member of an intermediate school district may
15.15include in its authority under this section the costs associated with safe schools activities
15.16authorized under paragraph (a) for intermediate school district programs. This authority
15.17must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
15.18districts. This authority is in addition to any other authority authorized under this section.
15.19Revenue raised under this paragraph must be transferred to the intermediate school district.
15.20EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

15.21    Sec. 22. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
15.22    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
15.23treasurers pursuant to section 276.10, apportionments from the school endowment fund
15.24pursuant to section 127A.33, apportionments by the county auditor pursuant to section
15.25127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
15.26pursuant to chapter 298.
15.27(b) "Cumulative amount guaranteed" means the product of
15.28(1) the cumulative disbursement percentage shown in subdivision 3; times
15.29(2) the sum of
15.30(i) the current year aid payment percentage of the estimated aid and credit
15.31entitlements paid according to subdivision 13; plus
15.32(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
15.33(iii) the other district receipts.
15.34(c) "Payment date" means the date on which state payments to districts are made
15.35by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
16.1or a weekday which is a legal holiday, the payment shall be made on the immediately
16.2preceding business day. The commissioner may make payments on dates other than
16.3those listed in subdivision 3, but only for portions of payments from any preceding
16.4payment dates which could not be processed by the electronic funds transfer method due
16.5to documented extenuating circumstances.
16.6(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
16.7fiscal year 2011, and 60 in fiscal years 2012 and later 90.

16.8    Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
16.9amended to read:
16.10    Subd. 7. Alternative attendance programs. (a) The general education aid and
16.11special education aid for districts must be adjusted for each pupil attending a nonresident
16.12district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
16.13adjustments must be made according to this subdivision.
16.14    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
16.15education and services" means the difference between: (1) the actual cost of providing
16.16special instruction and services, including special transportation and unreimbursed
16.17building lease and debt service costs for facilities used primarily for special education, for
16.18a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
16.19125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
16.20receives special instruction and services outside the regular classroom for more than
16.2160 percent of the school day, the amount of general education revenue and referendum
16.22equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
16.23to that pupil for the portion of time the pupil receives special instruction and services
16.24outside of the regular classroom, excluding portions attributable to district and school
16.25administration, district support services, operations and maintenance, capital expenditures,
16.26and pupil transportation, minus (3) special education aid under section 125A.76
16.27attributable to that pupil, that is received by the district providing special instruction and
16.28services. For purposes of this paragraph, general education revenue and referendum
16.29equalization aid attributable to a pupil must be calculated using the serving district's
16.30average general education revenue and referendum equalization aid per adjusted pupil unit.
16.31(c) For fiscal year 2015 and later, special education aid paid to a resident district
16.32must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
16.33special education and services.
16.34(d) Notwithstanding paragraph (c), special education aid paid to a resident district
16.35must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
17.1education and services provided to students at an intermediate district, cooperative, or
17.2charter school where the percent of students eligible for special education services is at
17.3least 70 percent of the charter school's total enrollment.
17.4    (e) Special education aid paid to the district or cooperative providing special
17.5instruction and services for the pupil, or to the fiscal agent district for a cooperative,
17.6must be increased by the amount of the reduction in the aid paid to the resident district
17.7under paragraphs (c) and (d). If the resident district's special education aid is insufficient
17.8to make the full adjustment, the remaining adjustment shall be made to other state aids
17.9due to the district.
17.10    (f) An area learning center operated by a service cooperative, intermediate district,
17.11education district, or a joint powers cooperative may elect through the action of the
17.12constituent boards to charge the resident district tuition for pupils rather than to have the
17.13general education revenue paid to a fiscal agent school district. Except as provided in
17.14paragraph (e), the district of residence must pay tuition equal to at least 90 and no more
17.15than 100 percent of the district average general education revenue per pupil unit minus
17.16an amount equal to the product of the formula allowance according to section 126C.10,
17.17subdivision 2 , times .0466, calculated without compensatory revenue and transportation
17.18sparsity revenue, times the number of pupil units for pupils attending the area learning
17.19center.
17.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.21and later.

17.22    Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
17.23    Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND
17.24SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
17.25    Subdivision 1. Establishment; requirements for participation. (a) A five-year
17.26 pilot project for the 2013-2014 through 2017-2018 school years is established to improve
17.27student and school outcomes by allowing groups of school districts to work together to
17.28provide innovative education programs and activities and share district resources. The
17.29pilot project may last until June 30, 2018, or for up to five years, whichever is less, except
17.30that innovation partnerships formed during the period of the pilot project may continue
17.31past June 30, 2018, with the agreement of the partnership members.
17.32(b) To participate in this pilot project to improve student and school outcomes, a
17.33group of two or more school districts must collaborate with school staff and receive formal
17.34school board approval to form a partnership. The partnership must develop a plan to
17.35provide challenging programmatic options for students, create professional development
18.1opportunities for educators, increase student engagement and connection and challenging
18.2learning opportunities for students, or demonstrate efficiencies in delivering financial and
18.3other services. The plan must establish:
18.4(1) collaborative educational goals and objectives;
18.5(2) strategies and processes to implement those goals and objectives, including a
18.6budget process with periodic expenditure reviews;
18.7(3) valid and reliable measures to evaluate progress in realizing the goals and
18.8objectives;
18.9(4) an implementation timeline; and
18.10(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
18.11schedules, and legal considerations needed to fully implement the plan.
18.12A partnership may invite additional districts to join the partnership during the pilot
18.13project term after notifying the commissioner.
18.14(c) A partnership of interested districts must apply by February 1, 2013, of any year
18.15 to the education commissioner in the form and manner the commissioner determines,
18.16consistent with this section. The application must contain the formal approval adopted by
18.17the school board in each district to participate in the plan.
18.18(d) Notwithstanding other law to the contrary, a participating school district under
18.19this section continues to: receive revenue and maintain its taxation authority; be organized
18.20and governed by an elected school board with general powers under Minnesota Statutes,
18.21section 123B.02; and be subject to employment agreements under Minnesota Statutes,
18.22chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue
18.23to remain employees of the employing school district.
18.24    Subd. 2. Commissioner's role. Interested groups of school districts must submit
18.25a completed application to the commissioner by March 1, 2013, of any year in the form
18.26and manner determined by the commissioner. The education commissioner must convene
18.27an advisory panel composed of a teacher appointed by Education Minnesota, a school
18.28principal appointed by the Minnesota Association of Secondary School Principals, a
18.29school board member appointed by the Minnesota School Boards Association, and a
18.30school superintendent appointed by the Minnesota Association of School Administrators
18.31to advise the commissioner on applicants' qualifications to participate in this pilot project.
18.32The commissioner must select between three and may select up to six qualified applicants
18.33under subdivision 1 by April 1, 2013, of any year to participate in this pilot project,
18.34ensuring an equitable geographical distribution of project participants to the extent
18.35practicable. The commissioner must select only those applicants that fully comply with
18.36the requirements in subdivision 1. The commissioner must terminate a project participant
19.1that fails to effectively implement the goals and objectives contained in its application and
19.2according to its stated timeline.
19.3    Subd. 3. Pilot project evaluation. Participating school districts must submit pilot
19.4project data to the commissioner in the form and manner determined by the commissioner.
19.5The education commissioner must analyze participating districts' progress in realizing
19.6their educational goals and objectives to work together in providing innovative education
19.7programs and activities and sharing resources. The commissioner must include the
19.8analysis of best practices in a report to the legislative committees with jurisdiction over
19.9kindergarten through grade 12 education finance and policy on the efficacy of this pilot
19.10project. The commissioner may shall submit an interim project report at any time by
19.11February 1, 2016, and must submit a final report to the legislature by February 1, 2018
19.12 2019, recommending whether or not to continue or expand the pilot project.

19.13    Sec. 25. Laws 2012, chapter 263, section 1, the effective date, is amended to read:
19.14EFFECTIVE DATE.This section is effective the day following final enactment
19.15and applies to the 2013-2014 through 2017-2018 school years.

19.16    Sec. 26. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
19.17    Subd. 2. General education aid. For general education aid under Minnesota
19.18Statutes, section 126C.13, subdivision 4:

19.19 19.20		$	6,051,766,000 6,851,972,000	.....	2014
19.21 19.22		$	6,370,640,000 6,495,698,000	.....	2015

19.23The 2014 appropriation includes $781,842,000 $780,709,000 for 2013 and
19.24$5,269,924,000 $6,071,263,000 for 2014.
19.25The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and
19.26$5,547,600,000 $5,906,601,000 for 2015.

19.27    Sec. 27. APPROPRIATIONS.
19.28    Subdivision 1. Department of Education. The sums indicated in this section are
19.29appropriated from the general fund to the Department of Education for the fiscal years
19.30designated.
19.31    Subd. 2. Recovery program grants. For recovery program grants under Minnesota
19.32Statutes, section 124D.695:

20.1

$

500,000

.....

2015

20.2    Sec. 28. REVISOR'S INSTRUCTION.
20.3In Minnesota Statutes, the revisor of statutes shall change the term "location equity"
20.4to "local optional."


20.7    Section 1. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to
20.8read:
20.9    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
20.10(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
20.11of the following grounds:
20.12(1) immoral conduct, insubordination, or conviction of a felony;
20.13(2) conduct unbecoming a teacher which requires the immediate removal of the
20.14teacher from classroom or other duties;
20.15(3) failure without justifiable cause to teach without first securing the written release
20.16of the school board;
20.17(4) gross inefficiency which the teacher has failed to correct after reasonable written
20.18notice;
20.19(5) willful neglect of duty; or
20.20(6) continuing physical or mental disability subsequent to a 12 months leave of
20.21absence and inability to qualify for reinstatement in accordance with subdivision 12.
20.22For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
20.23discriminatory practice described in section 363A.13.
20.24Prior to discharging a teacher under this paragraph, the board must notify the teacher
20.25in writing and state its ground for the proposed discharge in reasonable detail. Within
20.26ten days after receipt of this notification the teacher may make a written request for a
20.27hearing before the board and it shall be granted before final action is taken. The board
20.28may suspend a teacher with pay pending the conclusion of the hearing and determination
20.29of the issues raised in the hearing after charges have been filed which constitute ground for
20.30discharge. If a teacher has been charged with a felony and the underlying conduct that
20.31is the subject of the felony charge is a ground for a proposed immediate discharge, the
20.32suspension pending the conclusion of the hearing and determination of the issues may be
20.33without pay. If a hearing under this paragraph is held, the board must reimburse the teacher
21.1for any salary or compensation withheld if the final decision of the board or the arbitrator
21.2does not result in a penalty to or suspension, termination, or discharge of the teacher.
21.3(b) A board must discharge a continuing-contract teacher, effective immediately,
21.4upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
21.5teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
21.6(c) When a teacher is discharged under paragraph (b) or when the commissioner
21.7makes a final determination of child maltreatment involving a teacher under section
21.8626.556, subdivision 11, the school principal or other person having administrative
21.9control of the school must include in the teacher's employment record the information
21.10contained in the record of the disciplinary action or the final maltreatment determination,
21.11consistent with the definition of public data under section 13.41, subdivision 5, and must
21.12provide the Board of Teaching and the licensing division at the department with the
21.13necessary and relevant information to enable the Board of Teaching and the department's
21.14licensing division to fulfill their statutory and administrative duties related to issuing,
21.15renewing, suspending, or revoking a teacher's license. Information received by the Board
21.16of Teaching or the licensing division at the department under this paragraph is governed
21.17by section 13.41 or other applicable law governing data of the receiving entity. In addition
21.18to the background check required under section 123B.03, a school board or other school
21.19hiring authority must contact the Board of Teaching and the department to determine
21.20whether the teacher's license has been suspended or revoked, consistent with the discharge
21.21and final maltreatment determinations identified in this paragraph.
21.22EFFECTIVE DATE.This section is effective the day following final enactment.

21.23    Sec. 2. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
21.24    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
21.25in paragraph (b), causes for the discharge or demotion of a teacher either during or after
21.26the probationary period must be:
21.27(1) immoral character, conduct unbecoming a teacher, or insubordination;
21.28(2) failure without justifiable cause to teach without first securing the written release
21.29of the school board having the care, management, or control of the school in which the
21.30teacher is employed;
21.31(3) inefficiency in teaching or in the management of a school, consistent with
21.32subdivision 5, paragraph (b);
21.33(4) affliction with active tuberculosis or other communicable disease must be
21.34considered as cause for removal or suspension while the teacher is suffering from such
21.35disability; or
22.1(5) discontinuance of position or lack of pupils.
22.2For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
22.3discriminatory practice described in section 363A.13.
22.4(b) A probationary or continuing-contract teacher must be discharged immediately
22.5upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
22.6teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
22.7(c) When a teacher is discharged under paragraph (b) or when the commissioner
22.8makes a final determination of child maltreatment involving a teacher under section
22.9626.556, subdivision 11, the school principal or other person having administrative
22.10control of the school must include in the teacher's employment record the information
22.11contained in the record of the disciplinary action or the final maltreatment determination,
22.12consistent with the definition of public data under section 13.41, subdivision 5, and must
22.13provide the Board of Teaching and the licensing division at the department with the
22.14necessary and relevant information to enable the Board of Teaching and the department's
22.15licensing division to fulfill their statutory and administrative duties related to issuing,
22.16renewing, suspending, or revoking a teacher's license. Information received by the Board
22.17of Teaching or the licensing division at the department under this paragraph is governed
22.18by section 13.41 or other applicable law governing data of the receiving entity. In addition
22.19to the background check required under section 123B.03, a school board or other school
22.20hiring authority must contact the Board of Teaching and the department to determine
22.21whether the teacher's license has been suspended or revoked, consistent with the discharge
22.22and final maltreatment determinations identified in this paragraph.
22.23EFFECTIVE DATE.This section is effective the day following final enactment.

22.24    Sec. 3. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
22.25    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
22.26school site, or charter school that meets the conditions of section 122A.414 and submits an
22.27application approved by the commissioner is eligible for alternative teacher compensation
22.28revenue.
22.29(b) For school district and intermediate school district applications, the commissioner
22.30must consider only those applications to participate that are submitted jointly by a
22.31district and the exclusive representative of the teachers. The application must contain an
22.32alternative teacher professional pay system agreement that:
22.33(1) implements an alternative teacher professional pay system consistent with
22.34section 122A.414; and
23.1(2) is negotiated and adopted according to the Public Employment Labor Relations
23.2Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
23.3district may enter into a contract for a term of two or four years.
23.4Alternative teacher compensation revenue for a qualifying school district or site in
23.5which the school board and the exclusive representative of the teachers agree to place
23.6teachers in the district or at the site on the alternative teacher professional pay system
23.7equals $260 times the number of pupils enrolled at the district or site on October 1 of
23.8the previous fiscal year. Alternative teacher compensation revenue for a qualifying
23.9intermediate school district must be calculated under section 126C.10, subdivision 34
23.10 subdivision 4, paragraphs (a) and (b).
23.11(c) For a newly combined or consolidated district, the revenue shall be computed
23.12using the sum of pupils enrolled on October 1 of the previous year in the districts entering
23.13into the combination or consolidation. The commissioner may adjust the revenue computed
23.14for a site using prior year data to reflect changes attributable to school closings, school
23.15openings, or grade level reconfigurations between the prior year and the current year.
23.16(d) The revenue is available only to school districts, intermediate school districts,
23.17school sites, and charter schools that fully implement an alternative teacher professional
23.18pay system by October 1 of the current school year.
23.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
23.20and later.

23.21    Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is
23.22amended to read:
23.23    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
23.24district's initial achievement and integration revenue equals the lesser of 100.3 percent of
23.25the district's expenditures under the budget approved by the commissioner under section
23.26124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
23.27revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
23.28units for that year times the ratio of the district's enrollment of protected students for the
23.29previous school year to total enrollment for the previous school year and (2) the greater of
23.30zero or 66 percent of the difference between the district's integration revenue for fiscal
23.31year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
23.32(b) In each year, 0.3 percent of each district's initial achievement and integration
23.33revenue is transferred to the department for the oversight and accountability activities
23.34required under this section and section 124D.861.
24.1EFFECTIVE DATE.This section is effective the day following final enactment
24.2and applies to revenue for fiscal year 2014 and later.

24.3    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is
24.4amended to read:
24.5    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
24.6revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
24.7be A district's incentive revenue equals the lesser of the maximum incentive revenue
24.8or the district's expenditures for implementing a voluntary plan to reduce racial and
24.9economic enrollment disparities through intradistrict and interdistrict activities that have
24.10been approved as a part of the district's achievement and integration plan under the budget
24.11approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
24.12EFFECTIVE DATE.This section is effective the day following final enactment
24.13and applies to revenue for fiscal year 2014 and later.

24.14    Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 11, is amended to read:
24.15    Subd. 11. Concurrent enrollment program. For concurrent enrollment programs
24.16under Minnesota Statutes, section 124D.091:

24.17		$	2,000,000	.....	2014
24.18 24.19		$	2,000,000 .......	.....	2015

24.20If the appropriation is insufficient, the commissioner must proportionately reduce
24.21the aid payment to each district.
24.22Any balance in the first year does not cancel but is available in the second year. The
24.23annual base budget for this program is $2,000,000 for fiscal years 2016 and 2017.

24.24    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
24.25    Subd. 15. Early childhood literacy programs. For early childhood literacy
24.26programs under Minnesota Statutes, section 119A.50, subdivision 3:

24.27		$	4,125,000	.....	2014
24.28 24.29		$	4,125,000 4,625,000	.....	2015

24.30Up to $4,125,000 each in the first year and $4,625,000 in the second year is for
24.31leveraging federal and private funding to support AmeriCorps members serving in the
24.32Minnesota Reading Corps program established by ServeMinnesota, including costs
24.33associated with the training and teaching of early literacy skills to children age three
25.1to grade 3 and the evaluation of the impact of the program under Minnesota Statutes,
25.2sections 124D.38, subdivision 2, and 124D.42, subdivision 6. Up to $500,000 in fiscal
25.3year 2015 must be used to support priority and focus schools as defined by the Department
25.4of Education and to expand kindergarten programming.
25.5Any balance in the first year does not cancel but is available in the second year.

25.6    Sec. 8. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER
25.7PROFESSIONAL PAY SYSTEM AND TEACHER EVALUATION PROGRAM.
25.8To better align Minnesota's alternative teacher professional pay system under
25.9Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher evaluation
25.10program under Minnesota Statutes, sections 122A.40, subdivision 8, and 122A.41,
25.11subdivision 5, and effect and fund an improved alignment of this system and program,
25.12the commissioner of education must consult with stakeholders, including representatives
25.13of the Minnesota Association of School Administrators, the Minnesota Association of
25.14Secondary School Principals, the Minnesota Elementary School Principals' Association,
25.15the Minnesota School Boards Association, the Department of Education, the College
25.16of Education and Human Development at the University of Minnesota, the Minnesota
25.17Association of the Colleges for Teacher Education, licensed elementary and secondary
25.18school teachers employed in school districts with an alternative teacher professional pay
25.19system agreement and licensed elementary and secondary school teachers employed in
25.20school districts without an alternative teacher professional pay system agreement, where
25.21one or more of these teachers may be a master teacher, peer evaluator, in another teacher
25.22leader position, or national board certified teacher, a teacher or school administrator
25.23employed in a Minnesota charter school with an alternative teacher professional pay system
25.24agreement and a teacher or school administrator employed in a Minnesota charter school
25.25without an alternative teacher professional pay system agreement, a parent or guardian of
25.26a student currently enrolled in a Minnesota public school, the Association of Metropolitan
25.27School Districts, and the Minnesota Rural Education Association. The commissioner also
25.28must consult with members of the house of representatives and members of the senate.
25.29The commissioner, by February 1, 2015, must submit to the education policy and
25.30finance committees of the legislature written recommendations on better aligning and
25.31financing the alternative teacher professional pay system and teacher evaluation program.
25.32EFFECTIVE DATE.This section is effective the day following final enactment.

25.33    Sec. 9. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
26.1(a) The commissioner of education must consult with experts knowledgeable about
26.2secondary and postsecondary career and technical education programs to determine the
26.3content and status of particular career and technical education programs in Minnesota
26.4school districts, including cooperating districts under Minnesota Statutes, 123A.33,
26.5subdivision 2, integration districts, and postsecondary institutions partnering with school
26.6districts or offering courses through PSEO or career and technical programs and the rates
26.7of student participation and completion for these various programs, including: agriculture,
26.8food, and natural resources; architecture and construction; arts, audiovisual technology,
26.9and communications; business management and administration; computer science; family
26.10and consumer science; finance; health science; hospitality and tourism; human services;
26.11information technology; manufacturing; marketing; science, technology, engineering, and
26.12mathematics; and transportation, distribution, and logistics.
26.13(b) To accomplish paragraph (a) and to understand the current role of local school
26.14districts and postsecondary institutions in providing career and technical education
26.15programs, the commissioner of education, in consultation with experts, also must examine
26.16the extent to which secondary and postsecondary education programs offer students a
26.17progression of coordinated, nonduplicative courses that adequately prepare students to
26.18successfully complete a career and technical education program.
26.19(c) The commissioner of education must submit a report by February 1, 2015,
26.20to the education policy and finance committees of the legislature, consistent with this
26.21section, and include information about each district's dedicated equipment, resources, and
26.22relationships with postsecondary institutions.
26.23EFFECTIVE DATE.This section is effective the day following final enactment.

26.24    Sec. 10. APPROPRIATIONS.
26.25    Subdivision 1. Department of Education. The sums indicated in this section are
26.26appropriated from the general fund to the Department of Education for the fiscal years
26.27designated.
26.28    Subd. 2. Career and technical program inventory. For the career and technical
26.29program inventory program under section 9:

26.30

$

.......

.....

2015

26.31This is a onetime appropriation.
26.32    Subd. 2. Teacher Professional Pay System and Teacher Evaluation Program
26.33alignment. For the alignment and reporting activities under section 8:

27.1

$

.......

.....

2015

27.4    Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
27.5125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
27.6    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
27.7restrictive procedures shall maintain and make publicly accessible in an electronic format
27.8on a school or district Web site or make a paper copy available upon request describing a
27.9restrictive procedures plan for children with disabilities that at least:
27.10(1) lists the restrictive procedures the school intends to use;
27.11(2) describes how the school will implement a range of positive behavior strategies
27.12and provide links to mental health services;
27.13(3) describes how the school will provide training on de-escalation techniques,
27.14consistent with section 122A.09, subdivision 4, paragraph (k);
27.15(4) describes how the school will monitor and review the use of restrictive
27.16procedures, including:
27.17(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
27.18clause (5); and
27.19(ii) convening an oversight committee to undertake a quarterly review of the use
27.20of restrictive procedures based on patterns or problems indicated by similarities in the
27.21time of day, day of the week, duration of the use of a procedure, the individuals involved,
27.22or other factors associated with the use of restrictive procedures; the number of times a
27.23restrictive procedure is used schoolwide and for individual children; the number and types
27.24of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
27.25procedures are used in nonemergency situations; the need for additional staff training; and
27.26proposed actions to minimize the use of restrictive procedures; and
27.27(4) (5) includes a written description and documentation of the training staff
27.28completed under subdivision 5.
27.29(b) Schools annually must publicly identify oversight committee members who
27.30must at least include:
27.31(1) a mental health professional, school psychologist, or school social worker;
27.32(2) an expert in positive behavior strategies;
27.33(3) a special education administrator; and
27.34(4) a general education administrator.
28.1    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
28.2by a licensed special education teacher, school social worker, school psychologist,
28.3behavior analyst certified by the National Behavior Analyst Certification Board, a person
28.4with a master's degree in behavior analysis, other licensed education professional,
28.5paraprofessional under section 120B.363, or mental health professional under section
28.6245.4871, subdivision 27 , who has completed the training program under subdivision 5.
28.7(b) A school shall make reasonable efforts to notify the parent on the same day a
28.8restrictive procedure is used on the child, or if the school is unable to provide same-day
28.9notice, notice is sent within two days by written or electronic means or as otherwise
28.10indicated by the child's parent under paragraph (d) (f).
28.11(c) The district must hold a meeting of the individualized education program team,
28.12conduct or review a functional behavioral analysis, review data, consider developing
28.13additional or revised positive behavioral interventions and supports, consider actions to
28.14reduce the use of restrictive procedures, and modify the individualized education program
28.15or behavior intervention plan as appropriate. The district must hold the meeting: within
28.16ten calendar days after district staff use restrictive procedures on two separate school
28.17days within 30 calendar days or a pattern of use emerges and the child's individualized
28.18education program or behavior intervention plan does not provide for using restrictive
28.19procedures in an emergency; or at the request of a parent or the district after restrictive
28.20procedures are used. The district must review use of restrictive procedures at a child's
28.21annual individualized education program meeting when the child's individualized
28.22education program provides for using restrictive procedures in an emergency.
28.23(d) If the individualized education program team under paragraph (c) determines
28.24that existing interventions and supports are ineffective in reducing the use of restrictive
28.25procedures or the district uses restrictive procedures on a child on ten or more school days
28.26during the same school year, the team, as appropriate, either must consult with other
28.27professionals working with the child; consult with experts in behavior analysis, mental
28.28health, communication, or autism; consult with culturally competent professionals;
28.29review existing evaluations, resources, and successful strategies; or consider whether to
28.30reevaluate the child.
28.31(e) At the individualized education program meeting under paragraph (c), the team
28.32must review any known medical or psychological limitations, including any medical
28.33information the parent provides voluntarily, that contraindicate the use of a restrictive
28.34procedure, consider whether to prohibit that restrictive procedure, and document any
28.35prohibition in the individualized education program or behavior intervention plan.
29.1(f) An individualized education program team may plan for using restrictive
29.2procedures and may include these procedures in a child's individualized education
29.3program or behavior intervention plan; however, the restrictive procedures may be used
29.4only in response to behavior that constitutes an emergency, consistent with this section.
29.5The individualized education program or behavior intervention plan shall indicate how the
29.6parent wants to be notified when a restrictive procedure is used.
29.7    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
29.8used only in an emergency. A school that uses physical holding or seclusion shall meet the
29.9following requirements:
29.10(1) physical holding or seclusion is the least intrusive intervention that effectively
29.11responds to the emergency;
29.12(2) physical holding or seclusion is not used to discipline a noncompliant child;
29.13(3) physical holding or seclusion ends when the threat of harm ends and the staff
29.14determines the child can safely return to the classroom or activity;
29.15(4) staff directly observes the child while physical holding or seclusion is being used;
29.16(5) each time physical holding or seclusion is used, the staff person who implements
29.17or oversees the physical holding or seclusion documents, as soon as possible after the
29.18incident concludes, the following information:
29.19(i) a description of the incident that led to the physical holding or seclusion;
29.20(ii) why a less restrictive measure failed or was determined by staff to be
29.21inappropriate or impractical;
29.22(iii) the time the physical holding or seclusion began and the time the child was
29.23released; and
29.24(iv) a brief record of the child's behavioral and physical status;
29.25(6) the room used for seclusion must:
29.26(i) be at least six feet by five feet;
29.27(ii) be well lit, well ventilated, adequately heated, and clean;
29.28(iii) have a window that allows staff to directly observe a child in seclusion;
29.29(iv) have tamperproof fixtures, electrical switches located immediately outside the
29.30door, and secure ceilings;
29.31(v) have doors that open out and are unlocked, locked with keyless locks that
29.32have immediate release mechanisms, or locked with locks that have immediate release
29.33mechanisms connected with a fire and emergency system; and
29.34(vi) not contain objects that a child may use to injure the child or others;
29.35(7) before using a room for seclusion, a school must:
30.1(i) receive written notice from local authorities that the room and the locking
30.2mechanisms comply with applicable building, fire, and safety codes; and
30.3(ii) register the room with the commissioner, who may view that room; and
30.4(8) until August 1, 2015, a school district may use prone restraints with children
30.5age five or older if:
30.6(i) the district has provided to the department a list of staff who have had specific
30.7training on the use of prone restraints;
30.8(ii) the district provides information on the type of training that was provided and
30.9by whom;
30.10(iii) only staff who received specific training use prone restraints;
30.11(iv) each incident of the use of prone restraints is reported to the department within
30.12five working days on a form provided by the department; and
30.13(v) the district, before using prone restraints, must review any known medical or
30.14psychological limitations that contraindicate the use of prone restraints.
30.15The department must collect data on districts' use of prone restraints and publish the data
30.16in a readily accessible format on the department's Web site on a quarterly basis.
30.17(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must
30.18recommend to the commissioner specific and measurable implementation and outcome
30.19goals for reducing the use of restrictive procedures and the commissioner must submit to
30.20the legislature a report on districts' progress in reducing the use of restrictive procedures
30.21that recommends how to further reduce these procedures and eliminate the use of prone
30.22restraints. The statewide plan includes the following components: measurable goals; the
30.23resources, training, technical assistance, mental health services, and collaborative efforts
30.24needed to significantly reduce districts' use of prone restraints; and recommendations
30.25to clarify and improve the law governing districts' use of restrictive procedures. The
30.26commissioner must consult with interested stakeholders when preparing the report,
30.27including representatives of advocacy organizations, special education directors, teachers,
30.28paraprofessionals, intermediate school districts, school boards, day treatment providers,
30.29county social services, state human services department staff, mental health professionals,
30.30and autism experts. By June 30 each year, districts must report summary data on their
30.31use of restrictive procedures to the department, in a form and manner determined by the
30.32commissioner. The summary data must include information about the use of restrictive
30.33procedures, including use of reasonable force under section 121A.582.
30.34    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
30.35(1) engaging in conduct prohibited under section 121A.58;
31.1(2) requiring a child to assume and maintain a specified physical position, activity,
31.2or posture that induces physical pain;
31.3(3) totally or partially restricting a child's senses as punishment;
31.4(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
31.5substance, or spray as punishment;
31.6(5) denying or restricting a child's access to equipment and devices such as walkers,
31.7wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
31.8except when temporarily removing the equipment or device is needed to prevent injury
31.9to the child or others or serious damage to the equipment or device, in which case the
31.10equipment or device shall be returned to the child as soon as possible;
31.11(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
31.12physical abuse under section 626.556;
31.13(7) withholding regularly scheduled meals or water;
31.14(8) denying access to bathroom facilities; and
31.15(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
31.16impairs a child's ability to communicate distress, places pressure or weight on a child's
31.17head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
31.18straddling a child's torso.
31.19    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1, staff
31.20who use restrictive procedures, including paraprofessionals, shall complete training in
31.21the following skills and knowledge areas:
31.22(1) positive behavioral interventions;
31.23(2) communicative intent of behaviors;
31.24(3) relationship building;
31.25(4) alternatives to restrictive procedures, including techniques to identify events and
31.26environmental factors that may escalate behavior;
31.27(5) de-escalation methods;
31.28(6) standards for using restrictive procedures only in an emergency;
31.29(7) obtaining emergency medical assistance;
31.30(8) the physiological and psychological impact of physical holding and seclusion;
31.31(9) monitoring and responding to a child's physical signs of distress when physical
31.32holding is being used;
31.33(10) recognizing the symptoms of and interventions that may cause positional
31.34asphyxia when physical holding is used;
31.35(11) district policies and procedures for timely reporting and documenting each
31.36incident involving use of a restricted procedure; and
32.1(12) schoolwide programs on positive behavior strategies.
32.2(b) The commissioner, after consulting with the commissioner of human services,
32.3must develop and maintain a list of training programs that satisfy the requirements of
32.4paragraph (a). The commissioner also must develop and maintain a list of experts to
32.5help individualized education program teams reduce the use of restrictive procedures.
32.6The district shall maintain records of staff who have been trained and the organization
32.7or professional that conducted the training. The district may collaborate with children's
32.8community mental health providers to coordinate trainings.
32.9    Subd. 6. Behavior supports; reasonable force. (a) School districts are encouraged
32.10to establish effective schoolwide systems of positive behavior interventions and supports.
32.11(b) Nothing in this section or section 125A.0941 precludes the use of reasonable
32.12force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015
32.13school year and later, districts must collect and submit to the commissioner summary
32.14data, consistent with subdivision 3, paragraph (b), on district use of reasonable force
32.15that is consistent with the definition of physical holding or seclusion for a child with a
32.16disability under this section.
32.17EFFECTIVE DATE.This section is effective the day following final enactment.

32.18    Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
32.19amended to read:
32.20    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
32.21later, when a school district provides special instruction and services for a pupil with
32.22a disability as defined in section 125A.02 outside the district of residence, excluding
32.23a pupil for whom an adjustment to special education aid is calculated according to
32.24section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
32.25resident district must be reduced by an amount equal to (1) the actual cost of providing
32.26special instruction and services to the pupil, including a proportionate amount for special
32.27transportation and unreimbursed building lease and debt service costs for facilities used
32.28primarily for special education, plus (2) the amount of general education revenue and
32.29referendum equalization aid attributable to that pupil, calculated using the resident district's
32.30average general education revenue and referendum equalization aid per adjusted pupil
32.31unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
32.32revenue, minus (3) the amount of special education aid for children with a disability
32.33under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
32.34special instruction and services outside the regular classroom for more than 60 percent
32.35of the school day, the amount of general education revenue and referendum equalization
33.1aid, excluding portions attributable to district and school administration, district support
33.2services, operations and maintenance, capital expenditures, and pupil transportation,
33.3attributable to that pupil for the portion of time the pupil receives special instruction
33.4and services outside of the regular classroom, calculated using the resident district's
33.5average general education revenue and referendum equalization aid per adjusted pupil unit
33.6excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
33.7and the serving district's basic skills revenue, elementary sparsity revenue and secondary
33.8sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
33.9served by a cooperative unit without a fiscal agent school district, the general education
33.10revenue and referendum equalization aid attributable to a pupil must be calculated using
33.11the resident district's average general education revenue and referendum equalization aid
33.12excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
33.13revenue. Special education aid paid to the district or cooperative providing special
33.14instruction and services for the pupil must be increased by the amount of the reduction in
33.15the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
33.16and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
33.17expenditures on the resident school district's books of account under sections 123B.75
33.18and 123B.76. If the resident district's special education aid is insufficient to make the full
33.19adjustment, the remaining adjustment shall be made to other state aid due to the district.
33.20    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
33.21(b) to (d), a charter school where more than 30 percent of enrolled students receive special
33.22education and related services, a site approved under section 125A.515, an intermediate
33.23district, a special education cooperative, or a school district that served as the applicant
33.24agency for a group of school districts for federal special education aids for fiscal year
33.252006 may apply to the commissioner for authority to charge the resident district an
33.26additional amount to recover any remaining unreimbursed costs of serving pupils with
33.27a disability. The application must include a description of the costs and the calculations
33.28used to determine the unreimbursed portion to be charged to the resident district. Amounts
33.29approved by the commissioner under this paragraph must be included in the tuition billings
33.30or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
33.31(b) to (d), as applicable.
33.32    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
33.33(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
33.34means the sum of the general education revenue according to section 126C.10, subdivision
33.351, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
33.36(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
34.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
34.2and later.

34.3    Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
34.4amended to read:
34.5    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
34.6the definitions in this subdivision apply.
34.7    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
34.8For the purposes of computing basic revenue pursuant to this section, each child with a
34.9disability shall be counted as prescribed in section 126C.05, subdivision 1.
34.10    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
34.11support services staff providing services to students. Essential personnel may also include
34.12special education paraprofessionals or clericals providing support to teachers and students
34.13by preparing paperwork and making arrangements related to special education compliance
34.14requirements, including parent meetings and individualized education programs. Essential
34.15personnel does not include administrators and supervisors.
34.16    (d) "Average daily membership" has the meaning given it in section 126C.05.
34.17    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
34.181.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
34.19program growth factor for the previous year for fiscal year 2018 and later.
34.20(f) "Nonfederal special education expenditure" means all direct expenditures that
34.21are necessary and essential to meet the district's obligation to provide special instruction
34.22and services to children with a disability according to sections 124D.454, 125A.03 to
34.23125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
34.24the department under section 125A.75, subdivision 4, excluding expenditures:
34.25(1) reimbursed with federal funds;
34.26(2) reimbursed with other state aids under this chapter;
34.27(3) for general education costs of serving students with a disability;
34.28(4) for facilities;
34.29(5) for pupil transportation; and
34.30(6) for postemployment benefits.
34.31(g) "Old formula special education expenditures" means expenditures eligible for
34.32revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
34.33    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
34.34for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
34.35fringe benefits of one-to-one instructional and behavior management aides and one-to-one
35.1licensed, certified professionals assigned to a child attending the academy, if the aides or
35.2professionals are required by the child's individualized education program.
35.3(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
35.42014 and 2.27 percent for fiscal year 2015.
35.5(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
35.6for fiscal year 2015.
35.7(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
35.8for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
35.9aid increase limit for the previous fiscal year and $40.
35.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
35.11and later.

35.12    Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
35.13    Subd. 2. Special education initial aid. The special education initial aid equals the
35.14sum of the following amounts computed using current year data:
35.15    (1) 68 percent of the salary of each essential person employed in the district's program
35.16for children with a disability during the fiscal year, whether the person is employed by one
35.17or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
35.18    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
35.19for the Blind, 68 percent of the salary of each one to one one-to-one instructional and
35.20behavior management aide and one-to-one licensed, certified professional assigned to
35.21a child attending the academy, if the aides or professionals are required by the child's
35.22individualized education program;
35.23    (3) for special instruction and services provided to any pupil by contracting with
35.24public, private, or voluntary agencies other than school districts, in place of special
35.25instruction and services provided by the district, 52 percent of the difference between
35.26the amount of the contract and the general education revenue, excluding basic skills
35.27revenue and alternative teacher compensation revenue, and referendum equalization aid
35.28attributable to a pupil, calculated using the resident district's average general education
35.29revenue and referendum equalization aid per adjusted pupil unit for the fraction of the
35.30school day the pupil receives services under the contract. This includes children who
35.31are residents of the state, receive services under this subdivision and subdivision 1, and
35.32are placed in a care and treatment facility by court action in a state that does not have a
35.33reciprocity agreement with the commissioner under section 125A.155 as provided for in
35.34section 125A.79, subdivision 8;
36.1    (4) for special instruction and services provided to any pupil by contracting for
36.2services with public, private, or voluntary agencies other than school districts, that are
36.3supplementary to a full educational program provided by the school district, 52 percent of
36.4the amount of the contract for that pupil;
36.5    (5) for supplies and equipment purchased or rented for use in the instruction of
36.6children with a disability, an amount equal to 47 percent of the sum actually expended by
36.7the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
36.8not to exceed an average of $47 in any one school year for each child with a disability
36.9receiving instruction;
36.10    (6) for fiscal years 1997 and later, special education base revenue shall include
36.11amounts under clauses (1) to (5) for special education summer programs provided during
36.12the base year for that fiscal year;
36.13    (7) the cost of providing transportation services for children with disabilities under
36.14section 123B.92, subdivision 1, paragraph (b), clause (4); and
36.15    (8) the district's transition-disabled program initial aid according to section
36.16124D.454, subdivision 3 .
36.17    The department shall establish procedures through the uniform financial accounting
36.18and reporting system to identify and track all revenues generated from third-party billings
36.19as special education revenue at the school district level; include revenue generated from
36.20third-party billings as special education revenue in the annual cross-subsidy report; and
36.21exclude third-party revenue from calculation of excess cost aid to the districts.
36.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
36.23and later.

36.24    Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is
36.25amended to read:
36.26    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
36.27special education initial aid equals the sum of:
36.28(1) the lesser least of 62 percent of the district's old formula special education
36.29expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
36.30percent of the district's nonfederal special education expenditures for the prior year,
36.31excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
36.32following amounts, computed using prior fiscal year data, and the program growth factor:
36.33(i) the product of the district's average daily membership served and the sum of:
36.34(A) $450; plus
37.1(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
37.2who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
37.3who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
37.4(C) .008 times the district's average daily membership served; plus
37.5(ii) $10,400 times the December 1 child count for the primary disability areas of
37.6autism spectrum disorders, developmental delay, and severely multiply impaired; plus
37.7(iii) $18,000 times the December 1 child count for the primary disability areas of
37.8deaf and hard-of-hearing and emotional or behavioral disorders; plus
37.9(iv) $27,000 times the December 1 child count for the primary disability areas of
37.10developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
37.11physically impaired, visually impaired, and deafblind; plus
37.12(2) the cost of providing transportation services for children with disabilities under
37.13section 123B.92, subdivision 1, paragraph (b), clause (4).
37.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
37.15and later.

37.16    Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is
37.17amended to read:
37.18    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
37.19subsidy reduction aid for a school district, not including a charter school, equals the
37.20lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
37.21daily membership served or (b) the sum of the product of the cross subsidy reduction aid
37.22percentage, the district's average daily membership served, and the sum of:
37.23(1) $450; plus
37.24(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
37.25who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
37.26who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
37.27(3) .008 times the district's average daily membership served; plus the product of the
37.28cross subsidy aid percentage and the sum of:
37.29(i) $10,100 times the December 1 child count for the primary disability areas of
37.30autism spectrum disorders, developmental delay, and severely multiply impaired; plus
37.31(ii) $17,500 times the December 1 child count for the primary disability areas of
37.32deaf and hard-of-hearing and emotional or behavioral disorders; plus
37.33(iii) $26,000 times the December 1 child count for the primary disability areas of
37.34developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
37.35physically impaired, visually impaired, and deafblind.
38.1EFFECTIVE DATE.This section is effective the day following final enactment
38.2and applies to revenue for fiscal year 2014 and later.

38.3    Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is
38.4amended to read:
38.5    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
38.6district's special education aid equals the sum of the district's special education initial aid
38.7under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
38.8the district's excess cost aid under section 125A.79, subdivision 7.
38.9(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
38.10the district's special education initial aid under subdivision 2a and the district's excess cost
38.11aid under section 125A.79, subdivision 5.
38.12(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
38.13a school district must not exceed the sum of the special education aid the district would
38.14have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
38.15and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
38.16127A.47, subdivision 7 , and the product of the district's average daily membership served
38.17and the special education aid increase limit.
38.18(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
38.19aid for a school district must not exceed the sum of: (i) the product of the district's average
38.20daily membership served and the special education aid increase limit and (ii) the product
38.21of the sum of the special education aid the district would have received for fiscal year 2016
38.22under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
38.23to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
38.24the district's average daily membership served for the current fiscal year to the district's
38.25average daily membership served for fiscal year 2016, and the program growth factor.
38.26(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
38.27aid for a school district, not including a charter school, must not be less than the lesser of
38.28(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
38.29product of the sum of the special education aid the district would have received for fiscal
38.30year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
38.31according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
38.32ratio of the district's adjusted daily membership for the current fiscal year to the district's
38.33average daily membership for fiscal year 2016, and the program growth factor.
38.34EFFECTIVE DATE.This section is effective the day following final enactment
38.35and applies to revenue for fiscal year 2014 and later.

39.1    Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
39.2amended to read:
39.3    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
39.4subdivision apply.
39.5    (a) "Unreimbursed old formula special education expenditures" means:
39.6    (1) old formula special education expenditures for the prior fiscal year; minus
39.7    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
39.8125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
39.9section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
39.10initial aid under section 125A.76, subdivision 2a; minus
39.11(3) the amount of general education revenue, excluding local optional revenue, plus
39.12local optional aid and referendum equalization aid for the prior fiscal year attributable
39.13to pupils receiving special instruction and services outside the regular classroom for
39.14more than 60 percent of the school day for the portion of time the pupils receive special
39.15instruction and services outside the regular classroom, excluding portions attributable to
39.16district and school administration, district support services, operations and maintenance,
39.17capital expenditures, and pupil transportation.
39.18(b) "Unreimbursed nonfederal special education expenditures" means:
39.19(1) nonfederal special education expenditures for the prior fiscal year; minus
39.20(2) special education initial aid under section 125A.76, subdivision 2a; minus
39.21(3) for fiscal year 2016 and later, the amount of general education revenue and
39.22referendum equalization aid for the prior fiscal year attributable to pupils receiving
39.23special instruction and services outside the regular classroom for more than 60 percent of
39.24the school day for the portion of time the pupils receive special instruction and services
39.25outside of the regular classroom, excluding portions attributable to district and school
39.26administration, district support services, operations and maintenance, capital expenditures,
39.27and pupil transportation.
39.28    (c) "General revenue" for a school district means the sum of the general education
39.29revenue according to section 126C.10, subdivision 1, excluding alternative teacher
39.30compensation revenue, minus transportation sparsity revenue minus, local optional
39.31revenue, and total operating capital revenue. "General revenue" for a charter school means
39.32the sum of the general education revenue according to section 124D.11, subdivision 1, and
39.33transportation revenue according to section 124D.11, subdivision 2, excluding alternative
39.34teacher compensation revenue, minus referendum equalization aid minus, transportation
39.35sparsity revenue minus, and operating capital revenue.
40.1EFFECTIVE DATE.This section is effective the day following final enactment
40.2and applies to revenue for fiscal year 2014 and later.

40.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
40.4amended to read:
40.5    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
40.6 excess cost aid equals the greater of:
40.7    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
40.8special education expenditures and (ii) 7.0 percent of the district's general revenue;
40.9    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
40.10special education expenditures and (ii) 2.5 percent of the district's general revenue; or
40.11    (3) zero.
40.12EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
40.13and later.

40.14    Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
40.15amended to read:
40.16    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
40.17services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
40.18treatment facility by court action in a state that does not have a reciprocity agreement with
40.19the commissioner under section 125A.155, the resident school district shall submit the
40.20balance receive special education out-of-state tuition aid equal to the amount of the tuition
40.21bills, minus (1) the general education revenue, excluding basic skills revenue and the local
40.22optional levy attributable to the pupil, calculated using the resident district's average
40.23general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
40.24attributable to the pupil, calculated using the resident district's average general education
40.25revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
40.26education contracted services initial revenue aid attributable to the pupil.
40.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
40.28and later.

40.29    Sec. 11. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE
40.30RECOMMENDATIONS.
40.31The commissioner of education must use the expedited rulemaking process under
40.32Minnesota Statutes, section 14.389, including subdivision 5, to make the rule changes
41.1recommended by the Special Education Case Load and Rule Alignment Task Force in
41.2its 2014 report entitled "Recommendations for Special Education Case Load and Rule
41.3Alignment" submitted to the legislature on February 15, 2014.
41.4EFFECTIVE DATE.This section is effective the day following final enactment.

41.5    Sec. 12. APPROPRIATION.
41.6    Subdivision 1. Department of Education. The sums indicated in this section are
41.7appropriated from the general fund to the Department of Education for the fiscal years
41.8designated.
41.9    Subd. 2. Department assistance. For the commissioner of education to assist
41.10school districts in meeting the needs of children who have experienced a high use of prone
41.11restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

41.12

$

250,000

.....

2015

41.13The commissioners of education and human services, or their designees, must
41.14discuss coordinating use of funds and personnel available for this purpose within their
41.15respective departments. This is a onetime appropriation.


41.18    Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
41.19    Subdivision 1. Schools may be jointly operated. Two or more school districts may
41.20agree to jointly operate a secondary facility. The districts may choose to operate the
41.21facility according to a joint powers agreement under section 123A.78 or 471.59.
41.22    Subd. 2. Expanded program offerings. A jointly operated secondary program
41.23seeking funding under section 123A.485 must demonstrate to the commissioner's
41.24satisfaction that the jointly operated program provides enhanced learning opportunities and
41.25broader curriculum offerings to the students attending that program. The commissioner
41.26must approve or disapprove a cooperative secondary program within 60 days of receipt of
41.27an application.
41.28    Subd. 3. Transfer of employees. If an employee is transferred between two
41.29employer members of the joint powers agreement under this section, the employee's
41.30length of service under section 122A.40, subdivision 5, remains uninterrupted. The
41.31employee shall receive credit on the receiving district's salary schedule for the employee's
41.32educational attainment and years of continuous service in the sending district, or shall
41.33receive a comparable salary, whichever is greater. The employee shall receive credit for
42.1accrued sick leave and rights to severance benefits as if the employee had been employed
42.2by the receiving district during the employee's years of employment in the sending district.
42.3    Subd. 4. Revenue. An approved program that is jointly operated under this section
42.4is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
42.5123A.44 to 123A.446.
42.6    Subd. 5. Duty to maintain elementary and secondary schools met. A school
42.7district operating a joint facility under this section meets the requirements of section
42.8123A.64.
42.9    Subd. 6. Estimated market value limit exclusion. Bonds for a cooperative facility
42.10operated under this section issued by a member school district are not subject to the net
42.11debt limit under section 475.53, subdivision 4.
42.12    Subd. 7. Allocation of levy authority for joint facility. For purposes of determining
42.13each member district's school levy, a jointly operated secondary program may allocate
42.14program costs to each member district according to the joint powers agreement and each
42.15member district may include those costs in its tax levy. The joint powers agreement may
42.16choose to allocate costs on any basis adopted as part of the joint powers agreement.
42.17    Subd. 8. Effect of consolidation. The joint powers agreement may allow member
42.18school districts that choose to consolidate to continue to certify levies separately based on
42.19each component district's characteristics.
42.20    Subd. 9. Bonds. A joint powers district formed under this section may issue bonds
42.21according to section 123A.78 or its member districts may issue bonds individually after
42.22complying with this subdivision. The joint powers board must submit the project for
42.23review and comment under section 123B.71. The joint powers board must hold a hearing
42.24on the proposal. If the bonds are not issued under section 123A.78, each member district
42.25of the joint powers district must submit the question of authorizing borrowing of funds for
42.26the project to the voters of the district at a special election. The question submitted shall
42.27state the total amount of funding needed from that district. The member district may issue
42.28the bonds according to chapter 475 and certify the levy required by section 475.61 only if
42.29a majority of those voting on the question in that district vote in the affirmative and only
42.30after the board has adopted a resolution pledging the full faith and credit of that unit. The
42.31resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
42.32shortages that, together with other funds available, would allow the member school board
42.33to pay the principal and interest on the obligations. The clerk of the joint powers board
42.34must certify the vote of any bond elections to the commissioner. Bonds issued under this
42.35section first qualify for debt service equalization aid in fiscal year 2018.
43.1    Subd. 10. Election. A district entering into a joint powers agreement under this
43.2section may conduct a referendum seeking approval for a new facility. This election may
43.3be held separately or at the same time as a bond election under subdivision 9. If the
43.4election is held at the same time, the questions may be asked separately or as a conjunctive
43.5question. The question must be approved by a majority of those voting on the question.
43.6If asked separately and the question fails, a district may not proceed with the sale of
43.7bonds according to subdivision 9.
43.8EFFECTIVE DATE.This section is effective the day following final enactment.

43.9    Sec. 2. Minnesota Statutes 2012, section 123A.485, is amended to read:
43.10123A.485 CONSOLIDATION TRANSITION REVENUE AID.
43.11    Subdivision 1. Eligibility and use. A district that operates a cooperative facility
43.12under section 123A.482 or that has been reorganized after June 30, 1994, under section
43.13123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
43.14 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
43.15 aid may only be used according to this section. Revenue must be used for the following
43.16purposes and may be distributed among these purposes at the discretion of the district or
43.17the governing board of the cooperative facility:
43.18(1) to offer early retirement incentives as provided by section 123A.48, subdivision
43.1923 ;
43.20(2) to reduce operating debt as defined in section 123B.82;
43.21(3) to enhance learning opportunities for students in the reorganized district; and
43.22(4) to repay building debt; or
43.23(5) for other costs incurred in the reorganization.
43.24Revenue received and utilized under clause (3) or (4) (5) may be expended for
43.25operating, facilities, and/or equipment.
43.26    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $300 times the
43.27number of resident adjusted pupil units in the newly created cooperative facility under
43.28section 123A.482 or the consolidated district in the year of consolidation and $100 times
43.29the number of resident pupil units in the first year following the year of consolidation
43.30 under section 123A.48. The number of pupil units used to calculate aid in either year
43.31shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
43.32consolidating July 1, 1995, and thereafter A district may receive aid under this section for
43.33not more than five years except as provided in subdivision 4.
44.1(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
44.2any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
44.3districts the full amount of aid earned, the department must first pay the districts in the first
44.4year following the year of consolidation the full amount of aid earned and distribute any
44.5remaining funds to the newly created districts in the first year of consolidation.
44.6    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
44.7of the district under section 123A.48, subdivision 23, the district may levy the difference
44.8over a period of time not to exceed three years.
44.9    Subd. 4. New districts. If a district enters into a cooperative secondary facilities
44.10program or consolidates with another district that has received aid under section 123A.39,
44.11subdivision 3 , or 123A.485 for a combination or consolidation taking effect within
44.12six years of the effective date of the new consolidation or the start of the cooperative
44.13secondary facilities program, only the pupil units in the district or districts not previously
44.14 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
44.15two or more districts consolidate and all districts received aid under subdivision 2 for a
44.16consolidation taking effect within six years of the effective date of the new consolidation,
44.17only one quarter of the pupil units in the newly created district must be used to determine
44.18aid under subdivision 2.
44.19EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017
44.20and later.

44.21    Sec. 3. Minnesota Statutes 2012, section 123A.64, is amended to read:
44.22123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
44.23SCHOOLS.
44.24Each district must maintain classified elementary and secondary schools, grades 1
44.25through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
44.26made an agreement with another district or districts as provided in sections 123A.30,
44.27123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
44.28grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
44.29123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
44.30123A.32 must operate a school with the number of grades required by those sections. A
44.31district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
44.32has received a grant under sections 123A.441 to 123A.446 must operate a school for the
44.33grades not included in the agreement, but not fewer than three grades.

45.1    Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
45.2amended to read:
45.3    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
45.4revenue of a district is defined as follows:
45.5    (1) the amount needed to produce between five and six percent in excess of the
45.6amount needed to meet when due the principal and interest payments on the obligations
45.7of the district for eligible projects according to subdivision 2, including the amounts
45.8necessary for repayment of energy loans according to section 216C.37 or sections 298.292
45.9to 298.298, debt service loans and capital loans, lease purchase payments under section
45.10126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
45.115 , paragraph (a), minus
45.12    (2) the amount of debt service excess levy reduction for that school year calculated
45.13according to the procedure established by the commissioner.
45.14    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
45.15    (1) obligations under section 123B.61;
45.16    (2) the part of debt service principal and interest paid from the taconite environmental
45.17protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
45.18taconite payments from the Iron Range school consolidation and cooperatively operated
45.19school account under section 298.28, subdivision 7a;
45.20    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
45.21amended by Laws 1992, chapter 499, article 5, section 24; and
45.22    (4) obligations under section 123B.62; and
45.23    (5) obligations equalized under section 123B.535.
45.24    (c) For purposes of this section, if a preexisting school district reorganized under
45.25sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
45.26of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
45.27service equalization aid must be computed separately for each of the preexisting districts.
45.28    (d) For purposes of this section, the adjusted net tax capacity determined according
45.29to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
45.30generally exempted from ad valorem taxes under section 272.02, subdivision 64.
45.31EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

45.32    Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is
45.33amended to read:
46.1    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
46.2district equals the sum of the first tier equalized debt service levy and the second tier
46.3equalized debt service levy.
46.4(b) A district's first tier equalized debt service levy equals the district's first tier debt
46.5service equalization revenue times the lesser of one or the ratio of:
46.6(1) the quotient derived by dividing the adjusted net tax capacity of the district for
46.7the year before the year the levy is certified by the adjusted pupil units in the district for
46.8the school year ending in the year prior to the year the levy is certified; to
46.9(2) $3,550 $4,300.
46.10(c) A district's second tier equalized debt service levy equals the district's second tier
46.11debt service equalization revenue times the lesser of one or the ratio of:
46.12(1) the quotient derived by dividing the adjusted net tax capacity of the district for
46.13the year before the year the levy is certified by the adjusted pupil units in the district for
46.14the school year ending in the year prior to the year the levy is certified; to
46.15(2) $7,900 $8,000.
46.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
46.17and later.

46.18    Sec. 6. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
46.19    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
46.20disaster debt service revenue of a district is defined as the amount needed to produce
46.21between five and six percent in excess of the amount needed to meet when due the
46.22principal and interest payments on the obligations of the district that would otherwise
46.23qualify under section 123B.53 under the following conditions:
46.24(1) the district was impacted by a natural disaster event or area occurring January
46.251, 2005, or later, as declared by the President of the United States of America, which is
46.26eligible for Federal Emergency Management Agency payments;
46.27(2) the natural disaster caused $500,000 or more in damages to school district
46.28buildings; and
46.29(3) the repair and replacement costs are not covered by insurance payments or
46.30Federal Emergency Management Agency payments.
46.31(b) For purposes of this section, the adjusted net tax capacity equalizing factor
46.32equals the quotient derived by dividing the total adjusted net tax capacity of all school
46.33districts in the state for the year before the year the levy is certified by the total number of
46.34adjusted pupil units in the state for the current school year.
47.1    (c) For purposes of this section, the adjusted net tax capacity determined according
47.2to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
47.3generally exempted from ad valorem taxes under section 272.02, subdivision 64.
47.4    Subd. 2. Notification. A district eligible for natural disaster debt service
47.5equalization revenue under subdivision 1 must notify the commissioner of the amount of
47.6its intended natural disaster debt service revenue calculated under subdivision 1 for all
47.7bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
47.8    Subd. 3. Natural disaster debt service equalization revenue. The debt service
47.9equalization revenue of a district equals the greater of zero or the eligible debt service
47.10revenue, minus the greater of zero or the difference between:
47.11(1) the amount raised by a levy of ten percent times the adjusted net tax capacity
47.12of the district; and
47.13(2) the district's eligible debt service revenue under section 123B.53.
47.14    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
47.15natural disaster debt service levy equals the district's natural disaster debt service
47.16equalization revenue times the lesser of one or the ratio of:
47.17(1) the quotient derived by dividing the adjusted net tax capacity of the district for
47.18the year before the year the levy is certified by the adjusted pupil units in the district for
47.19the school year ending in the year prior to the year the levy is certified; to
47.20(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
47.21    Subd. 5. Natural disaster debt service equalization aid. A district's natural
47.22disaster debt service equalization aid equals the difference between the district's natural
47.23disaster debt service equalization revenue and the district's equalized natural disaster
47.24debt service levy.
47.25    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
47.26service equalization aid must be paid according to section 127A.45, subdivision 10.
47.27EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
47.28revenue for fiscal year 2017 and later.

47.29    Sec. 7. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
47.30123B.54 DEBT SERVICE APPROPRIATION.
47.31    (a) The amount necessary to make debt service equalization aid payments under
47.32section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
47.33the commissioner of education.
48.1    (b) The appropriations in paragraph (a) must be reduced by the amount of any
48.2money specifically appropriated for the same purpose in any year from any state fund.
48.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
48.4and later.

48.5    Sec. 8. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
48.6    Subd. 8. Review and comment. A school district, a special education cooperative,
48.7or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
48.8initiate an installment contract for purchase or a lease agreement, hold a referendum for
48.9bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
48.10facility that requires an expenditure in excess of $500,000 per school site if it has a capital
48.11loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
48.12loan outstanding, prior to review and comment by the commissioner. The commissioner
48.13may exempt A facility addition, maintenance project, or remodeling project funded only
48.14with general education aid and levy revenue, deferred maintenance revenue, alternative
48.15facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
48.16proceeds, or health and safety revenue is exempt from this provision after reviewing a
48.17written request from a school district describing the scope of work. A capital project under
48.18section 123B.63 addressing only technology is exempt from this provision if the district
48.19submits a school board resolution stating that funds approved by the voters will be used
48.20only as authorized in section 126C.10, subdivision 14. A school board shall not separate
48.21portions of a single project into components to avoid the requirements of this subdivision.

48.22    Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
48.23    Subd. 9. Information required. A school board proposing to construct, expand,
48.24or remodel a facility described in that requires a review and comment under subdivision
48.258 shall submit to the commissioner a proposal containing information including at least
48.26the following:
48.27(1) the geographic area and population to be served, preschool through grade 12
48.28student enrollments for the past five years, and student enrollment projections for the
48.29next five years;
48.30(2) a list of existing facilities by year constructed, their uses, and an assessment of
48.31the extent to which alternate facilities are available within the school district boundaries
48.32and in adjacent school districts;
48.33(3) a list of the specific deficiencies of the facility that demonstrate the need for a
48.34new or renovated facility to be provided, the process used to determine the deficiencies, a
49.1list of those deficiencies that will and will not be addressed by the proposed project, and a
49.2list of the specific benefits that the new or renovated facility will provide to the students,
49.3teachers, and community users served by the facility;
49.4(4) the relationship of the project to any priorities established by the school district,
49.5educational cooperatives that provide support services, or other public bodies in the
49.6service area;
49.7(5) a description of the pedestrian, bicycle, and transit connections between the
49.8school and nearby residential areas that make it easier for children, teachers, and parents
49.9to get to the school by walking, bicycling, and taking transit;
49.10(6) a specification of how the project maximizes the opportunity for cooperative use
49.11of existing park, recreation, and other public facilities and whether and how the project
49.12will increase collaboration with other governmental or nonprofit entities;
49.13(7) (4) a description of the project, including the specification of site and outdoor
49.14space acreage and square footage allocations for classrooms, laboratories, and support
49.15spaces; estimated expenditures for the major portions of the project; and the dates the
49.16project will begin and be completed;
49.17(8) (5) a specification of the source of financing the project, including applicable
49.18statutory citations; the scheduled date for a bond issue or school board action; a schedule
49.19of payments, including debt service equalization aid; and the effect of a bond issue on
49.20local property taxes by the property class and valuation;
49.21(9) an analysis of how the proposed new or remodeled facility will affect school
49.22district operational or administrative staffing costs, and how the district's operating budget
49.23will cover any increased operational or administrative staffing costs;
49.24(10) a description of the consultation with local or state transportation officials
49.25on multimodal school site access and safety issues, and the ways that the project will
49.26address those issues;
49.27(11) a description of how indoor air quality issues have been considered and a
49.28certification that the architects and engineers designing the facility will have professional
49.29liability insurance;
49.30(12) as required under section 123B.72, for buildings coming into service after July 1,
49.312002, a certification that the plans and designs for the extensively renovated or new facility's
49.32heating, ventilation, and air conditioning systems will meet or exceed code standards; will
49.33provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
49.34will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
49.35(13) a specification of any desegregation requirements that cannot be met by any
49.36other reasonable means;
50.1(14) a specification of how the facility will utilize environmentally sustainable
50.2school facility design concepts;
50.3(15) a description of how the architects and engineers have considered the American
50.4National Standards Institute Acoustical Performance Criteria, Design Requirements
50.5and Guidelines for Schools of the maximum background noise level and reverberation
50.6times; and
50.7    (16) any existing information from the relevant local unit of government about the
50.8cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
50.9roads, and sidewalks.
50.10    (6) documents obligating the school district and contractors to comply with items (i)
50.11to (vii) in planning and executing the project:
50.12    (i) section 471.346 governing municipal contracts;
50.13    (ii) sustainable design;
50.14    (iii) school facility commissioning under section 123B.72 certifying the plans and
50.15designs for the heating, ventilating, air conditioning, and air filtration for an extensively
50.16renovated or new facility meet or exceed current code standards, including the ASHRAE
50.17air filtration standard 52.1;
50.18    (iv) American National Standards Institute Acoustical Performance Criteria, Design
50.19Requirements and Guidelines for Schools on maximum background noise level and
50.20reverberation times;
50.21    (v) State Fire Code;
50.22    (vi) chapter 326B governing building codes; and
50.23    (vii) consultation with affected government units about the impact of the project
50.24on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic,
50.25and safe access for walkers and cyclists.

50.26    Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d,
50.27is amended to read:
50.28    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
50.29enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
50.30formula allowance for that year and (2) the difference between the adjusted pupil units for
50.31the preceding year and the adjusted pupil units for the current year.
50.32(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
50.33enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
50.34district or charter school in which the pupil was last counted in average daily membership.

51.1    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
51.2amended to read:
51.3    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
51.4pursuant to subdivision 1 must be made prior to the reductions in clause (2).
51.5(2) Notwithstanding any other law to the contrary, districts that have revenue
51.6pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
51.7under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
51.8to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
51.9severed mineral values must reduce the levies authorized by this chapter and chapters
51.10120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
51.11previous year's revenue specified under this clause and the amount attributable to the same
51.12production year distributed to the cities and townships within the school district under
51.13section 298.28, subdivision 2, paragraph (c).
51.14(3) The amount of any voter approved referendum, facilities down payment, and
51.15debt levies shall not be reduced by more than 50 percent under this subdivision, except
51.16that payments under section 298.28, subdivision 7a, may reduce the debt service levy by
51.17more than 50 percent. In administering this paragraph, the commissioner shall first reduce
51.18the nonvoter approved levies of a district; then, if any payments, severed mineral value
51.19tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
51.20reduce any voter approved referendum levies authorized under section 126C.17; then, if
51.21any payments, severed mineral value tax revenue or recognized revenue under paragraph
51.22(2) remains, the commissioner shall reduce any voter approved facilities down payment
51.23levies authorized under section 123B.63 and then, if any payments, severed mineral value
51.24tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
51.25reduce any voter approved debt levies.
51.26(4) Before computing the reduction pursuant to this subdivision of the health and
51.27safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
51.28shall ascertain from each affected school district the amount it proposes to levy under
51.29each section or subdivision. The reduction shall be computed on the basis of the amount
51.30so ascertained.
51.31(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
51.32limitation in paragraph (3), an amount equal to the excess must be distributed from the
51.33school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
51.34year to the cities and townships within the school district in the proportion that their
51.35taxable net tax capacity within the school district bears to the taxable net tax capacity of
51.36the school district for property taxes payable in the year prior to distribution. No city or
52.1township shall receive a distribution greater than its levy for taxes payable in the year prior
52.2to distribution. The commissioner of revenue shall certify the distributions of cities and
52.3towns under this paragraph to the county auditor by September 30 of the year preceding
52.4distribution. The county auditor shall reduce the proposed and final levies of cities and
52.5towns receiving distributions by the amount of their distribution. Distributions to the cities
52.6and towns shall be made at the times provided under section 298.27.

52.7    Sec. 12. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
52.8    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
52.9375.192 , or otherwise, the net tax capacity or referendum market value of any district for
52.10any taxable year is changed after the taxes for that year have been spread by the county
52.11auditor and the local tax rate as determined by the county auditor based upon the original
52.12net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
52.13prior to February 1 of each year, certify to the commissioner of education the amount of
52.14any resulting net revenue loss that accrued to the district during the preceding year. Each
52.15year, the commissioner shall pay an abatement adjustment to the district in an amount
52.16calculated according to the provisions of this subdivision. This amount shall be deducted
52.17from the amount of the levy authorized by section 126C.46. The amount of the abatement
52.18adjustment must be the product of:
52.19    (1) the net revenue loss as certified by the county auditor, times
52.20    (2) the ratio of:
52.21    (i) the sum of the amounts of the district's certified levy in the third preceding year
52.22according to the following:
52.23    (A) section 123B.57, if the district received health and safety aid according to that
52.24section for the second preceding year;
52.25    (B) section 124D.20, if the district received aid for community education programs
52.26according to that section for the second preceding year;
52.27    (C) section 124D.135, subdivision 3, if the district received early childhood family
52.28education aid according to section 124D.135 for the second preceding year;
52.29    (D) section 126C.17, subdivision 6, if the district received referendum equalization
52.30aid according to that section for the second preceding year;
52.31    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
52.32according to section 126C.10, subdivision 13b, in the second preceding year;
52.33    (F) section 126C.10, subdivision 29, if the district received equity aid according to
52.34section 126C.10, subdivision 30, in the second preceding year;
53.1    (G) section 126C.10, subdivision 32, if the district received transition aid according
53.2to section 126C.10, subdivision 33, in the second preceding year;
53.3    (H) section 123B.53, subdivision 5, if the district received debt service equalization
53.4aid according to section 123B.53, subdivision 6, in the second preceding year;
53.5    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
53.6service equalization aid according to section 123B.535, subdivision 5, in the second
53.7preceding year;
53.8    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
53.9according to section 124D.22, subdivision 4, in the second preceding year;
53.10    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
53.11aid according to section 123B.591, subdivision 4, in the second preceding year; and
53.12    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
53.13compensation equalization aid according to section 126C.10, subdivision 36, paragraph
53.14(a), in the second preceding year; to
53.15    (ii) the total amount of the district's certified levy in the third preceding December,
53.16plus or minus auditor's adjustments.
53.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
53.18and later.

53.19    Sec. 13. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
53.20    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
53.21district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
53.22decertification of a tax increment district, the school district's aid and levy limitations
53.23must be adjusted for the fiscal year in which the excess tax increment is paid under the
53.24provisions of this subdivision.
53.25    (b) An amount must be subtracted from the district's aid for the current fiscal year
53.26equal to the product of:
53.27    (1) the amount of the payment of excess tax increment to the district, times
53.28    (2) the ratio of:
53.29    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
53.30the excess tax increment is paid according to the following:
53.31    (A) section 123B.57, if the district received health and safety aid according to that
53.32section for the second preceding year;
53.33    (B) section 124D.20, if the district received aid for community education programs
53.34according to that section for the second preceding year;
54.1    (C) section 124D.135, subdivision 3, if the district received early childhood family
54.2education aid according to section 124D.135 for the second preceding year;
54.3    (D) section 126C.17, subdivision 6, if the district received referendum equalization
54.4aid according to that section for the second preceding year;
54.5    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
54.6according to section 126C.10, subdivision 13b, in the second preceding year;
54.7    (F) section 126C.10, subdivision 29, if the district received equity aid according to
54.8section 126C.10, subdivision 30, in the second preceding year;
54.9    (G) section 126C.10, subdivision 32, if the district received transition aid according
54.10to section 126C.10, subdivision 33, in the second preceding year;
54.11    (H) section 123B.53, subdivision 5, if the district received debt service equalization
54.12aid according to section 123B.53, subdivision 6, in the second preceding year;
54.13    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
54.14service equalization aid according to section 123B.535, subdivision 5, in the second
54.15preceding year;
54.16    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
54.17according to section 124D.22, subdivision 4, in the second preceding year;
54.18    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
54.19aid according to section 123B.591, subdivision 4, in the second preceding year; and
54.20    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
54.21compensation equalization aid according to section 126C.10, subdivision 36, paragraph
54.22(a), in the second preceding year; to
54.23    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
54.24auditor's adjustments.
54.25    (c) An amount must be subtracted from the school district's levy limitation for the
54.26next levy certified equal to the difference between:
54.27    (1) the amount of the distribution of excess increment; and
54.28    (2) the amount subtracted from aid pursuant to clause (a).
54.29    If the aid and levy reductions required by this subdivision cannot be made to the aid
54.30for the fiscal year specified or to the levy specified, the reductions must be made from
54.31aid for subsequent fiscal years, and from subsequent levies. The school district must use
54.32the payment of excess tax increment to replace the aid and levy revenue reduced under
54.33this subdivision.
54.34    (d) This subdivision applies only to the total amount of excess increments received
54.35by a district for a calendar year that exceeds $25,000.
55.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
55.2and later.

55.3    Sec. 14. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
55.4    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for
55.5the care, management, and control of the Perpich Center for Arts Education and any other
55.6school authorized in this chapter, and all its their real and personal property. The powers
55.7shall include, but are not limited to, those listed in this subdivision.
55.8(b) The board may employ and discharge necessary employees, and contract for
55.9other services to ensure the efficient operation of the Center for Arts Education and any
55.10other school authorized in this chapter.
55.11(c) The board may receive and award grants. The board may establish a charitable
55.12foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for
55.13educational purposes and hold, manage, invest, and dispose of them and the proceeds
55.14and income of them according to the terms and conditions of the gift, grant, bequest, or
55.15devise and its acceptance. The board must adopt internal procedures to administer and
55.16monitor aids and grants.
55.17(d) The board may establish or coordinate evening, continuing education, extension,
55.18and summer programs for teachers and pupils.
55.19(e) The board may identify pupils who have artistic talent, either demonstrated or
55.20potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more
55.21than one art form.
55.22(f) The board must educate pupils with artistic talent by providing:
55.23(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th
55.24grades. The total number of pupils accepted under this clause and clause (2) shall not
55.25exceed 310;
55.26(2) additional instruction to pupils for a 13th grade. Pupils eligible for this
55.27instruction are those enrolled in 12th grade who need extra instruction and who apply
55.28to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes
55.29established by the board;
55.30(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
55.31(4) summer arts institutes for pupils in grades 9 to 12;
55.32(5) artist mentor and extension programs in regional sites; and
55.33(6) teacher education programs for indirect curriculum delivery.
56.1(g) The board may determine the location for the Perpich Center for Arts Education
56.2and any additional facilities related to the center, including the authority to lease a
56.3temporary facility.
56.4(h) The board must plan for the enrollment of pupils on an equal basis from each
56.5congressional district.
56.6(i) The board may establish task forces as needed to advise the board on policies and
56.7issues. The task forces expire as provided in section 15.059, subdivision 6.
56.8(j) The board may request the commissioner of education for assistance and services.
56.9(k) The board may enter into contracts with other public and private agencies
56.10and institutions for residential and building maintenance services if it determines that
56.11these services could be provided more efficiently and less expensively by a contractor
56.12than by the board itself. The board may also enter into contracts with public or private
56.13agencies and institutions, school districts or combinations of school districts, or service
56.14cooperatives to provide supplemental educational instruction and services.
56.15(l) The board may provide or contract for services and programs by and for the
56.16Center for Arts Education, including a store, operating in connection with the center;
56.17theatrical events; and other programs and services that, in the determination of the board,
56.18serve the purposes of the center.
56.19(m) The board may provide for transportation of pupils to and from the Center for
56.20Arts Education for all or part of the school year, as the board considers advisable and
56.21subject to its rules. Notwithstanding any other law to the contrary, the board may charge a
56.22reasonable fee for transportation of pupils. Every driver providing transportation of pupils
56.23under this paragraph must possess all qualifications required by the commissioner of
56.24education. The board may contract for furnishing authorized transportation under rules
56.25established by the commissioner of education and may purchase and furnish gasoline to a
56.26contract carrier for use in the performance of a contract with the board for transportation
56.27of pupils to and from the Center for Arts Education. When transportation is provided,
56.28scheduling of routes, establishment of the location of bus stops, the manner and method of
56.29transportation, the control and discipline of pupils, and any other related matter is within
56.30the sole discretion, control, and management of the board.
56.31(n) The board may provide room and board for its pupils. If the board provides room
56.32and board, it shall charge a reasonable fee for the room and board. The fee is not subject
56.33to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
56.34(o) The board may establish and set fees for services and programs. If the board sets
56.35fees not authorized or prohibited by the Minnesota public school fee law, it may do so
56.36without complying with the requirements of section 123B.38.
57.1(p) The board may apply for all competitive grants administered by agencies of the
57.2state and other government or nongovernment sources.
57.3EFFECTIVE DATE.This section is effective the day following final enactment.

57.4    Sec. 15. Minnesota Statutes 2012, section 129C.10, is amended by adding a
57.5subdivision to read:
57.6    Subd. 5a. Interdistrict voluntary integration magnet program. Notwithstanding
57.7Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate
57.8an interdistrict integration magnet program according to section 129C.30. For fiscal year
57.92016 and later, the board must have an approved achievement and integration plan and
57.10budget under section 124D.861.
57.11EFFECTIVE DATE.This section is effective the day following final enactment.

57.12    Sec. 16. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
57.13    Subdivision 1. Definitions. (a) The following terms having the meanings given
57.14them for this chapter.
57.15(b) "Board" means the board of directors of the Perpich Center for Arts Education.
57.16(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during
57.17the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration
57.18District.
57.19    Subd. 2. Board to operate the Crosswinds school. The board may operate the
57.20Crosswinds school with the powers and duties granted to it under this chapter. A student
57.21may apply to the Crosswinds school under section 124D.03 and the Crosswinds school
57.22may accept students under that section.
57.23    Subd. 3. General education funding. General education revenue must be paid to
57.24the Crosswinds school as though it were a district. The general education revenue for each
57.25adjusted pupil unit is the state average general education revenue per pupil unit, plus
57.26the referendum equalization aid allowance in the pupil's district of residence, minus an
57.27amount equal to the product of the formula allowance according to section 126C.10,
57.28subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue,
57.29extended time revenue, pension adjustment revenue, transition revenue, and transportation
57.30sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue,
57.31pension adjustment revenue, and transition revenue as though the school were a school
57.32district. The general education revenue for each extended time pupil unit equals $4,794.
58.1    Subd. 4. Special education funding. Special education aid must be paid to the
58.2Crosswinds school according to sections 125A.76 and 125A.79, as though it were a
58.3school district. The special education aid paid to the Crosswinds school shall be adjusted
58.4as follows:
58.5(1) if the Crosswinds school does not receive general education revenue on behalf of
58.6the student according to subdivision 3, the aid shall be adjusted as provided in section
58.7125A.11; or
58.8(2) if the Crosswinds school receives general education revenue on behalf of the
58.9student according to subdivision 3, the aid shall be adjusted as provided in section
58.10127A.47, subdivision 7, paragraphs (b) to (d).
58.11    Subd. 5. Pupil transportation. (a) For fiscal year 2015 only, a member district of
58.12Joint Powers District No. 6067, East Metro Integration District, must transport pupils
58.13enrolled at the Crosswinds school in the same manner as they were transported in fiscal
58.14year 2014.
58.15(b) Pupil transportation expenses under this section are reimbursable under section
58.16124D.87.
58.17    Subd. 6. Achievement and integration aid. For fiscal year 2016 and later, the
58.18Crosswinds school is eligible for achievement and integration aid under section 124D.862
58.19as if it were a school district.
58.20    Subd. 7. Other aids, grants, revenue. (a) The Crosswinds school is eligible to
58.21receive other aids, grants, and revenue according to chapters 120A to 129C as though it
58.22were a district.
58.23(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a
58.24grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue
58.25replaces levy revenue that is not general education revenue, except as otherwise provided
58.26in this section.
58.27(c) Federal aid received by the state must be paid to the school if it qualifies for
58.28the aid as though it were a school district.
58.29(d) In the year-end report to the commissioner of education, the Crosswinds school
58.30shall report the total amount of funds received from grants and other outside sources.
58.31    Subd. 8. Year-round programming. The Crosswinds school may operate as a
58.32flexible learning year program under sections 124D.12 to 124D.127.
58.33    Subd. 9. Data requirements. The commissioner of education shall require the
58.34Crosswinds school to follow the budget and accounting procedures required for school
58.35districts and the Crosswinds school shall report all data to the Department of Education in
58.36the form and manner required by the commissioner.

59.1    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 5, is amended to read:
59.2    Subd. 5. Equity in telecommunications access. For equity in telecommunications
59.3access:

59.4		$	3,750,000	.....	2014
59.5 59.6		$	3,750,000 8,750,000	.....	2015

59.7If the appropriation amount is insufficient, the commissioner shall reduce the
59.8reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
59.9revenue for fiscal years 2014 and 2015 shall be prorated.
59.10Any balance in the first year does not cancel but is available in the second year.
59.11 The base appropriation for this program for fiscal years 2016 and 2017 is $8,750,000
59.12for each year.

59.13    Sec. 18. HARAMBEE COMMUNITY SCHOOL TRANSITION.
59.14    Subdivision 1. Facilities. Notwithstanding the specified uses of state general
59.15obligation bond proceeds appropriated in Laws 1994, chapter 643, section 14, subdivision
59.167, the real and personal property owned by the Joint Powers District No. 6067, East Metro
59.17Integration District, in Maplewood, known as the Harambee community school, may be
59.18conveyed to Independent School District No. 623, Roseville, for operation of a multidistrict
59.19integration facility that serves students in any grade from early education through grade 12.
59.20    Subd. 2. Student enrollment. A student enrolled in the Harambee community
59.21school during the 2013-2014 school year may continue to enroll in the Harambee
59.22community school in any subsequent year. For the 2014-2015 school year and later, other
59.23students may apply for enrollment under Minnesota Statutes, section 124D.03.
59.24    Subd. 3. Compensatory revenue; literacy aid; compensation revenue. For the
59.252014-2015 school year only, the Department of Education must calculate compensatory
59.26revenue, literacy aid, and compensation revenue for the Harambee community school
59.27based on the October 1, 2013, enrollment counts.
59.28    Subd. 4. Year-round programming. Harambee community school may operate as
59.29a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
59.30    Subd. 5. Pupil transportation. The board may transport pupils enrolled in the
59.312013-2014 school year to and from the Harambee community school in succeeding school
59.32years regardless of the students' districts of residence. Pupil transportation expenses under
59.33this section are reimbursable under Minnesota Statutes, section 124D.87.

60.1    Sec. 19. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
60.2    Subdivision 1. Transfer. Notwithstanding the appropriation of state general
60.3obligation bond proceeds in Laws 1998, chapter 404, section 5, subdivision 5; Laws 1999,
60.4chapter 240, article 1, section 3; Laws 2000, chapter 492, article 1, section 5, subdivision
60.52; Laws 2001, First Special Session chapter 12, section 2, subdivision 2; and Laws
60.62005, chapter 20, article 1, section 5, subdivision 3, to acquire and better the Crosswinds
60.7school facilities by the Joint Powers District No. 6067, East Metro Integration District,
60.8in Woodbury, the Crosswinds school may be conveyed to the Perpich Center for Arts
60.9Education for use as an east metropolitan area integration magnet school.
60.10    Subd. 2. Student enrollment. Any student enrolled in the Crosswinds school
60.11during the 2013-2014 school year may continue to enroll in the Crosswinds school in
60.12any subsequent year. For the 2014-2015 school year and later, a student may apply for
60.13enrollment to the school under Minnesota Statutes, section 124D.03.
60.14    Subd. 3. Compensatory revenue, literacy aid, and alternative compensation
60.15revenue. For the 2014-2015 school year only, the Department of Education must calculate
60.16compensatory revenue, literacy aid, and alternative compensation revenue for the
60.17Crosswinds school based on the October 1, 2013, enrollment counts at that site.
60.18    Subd. 4. Title 1 funding. To the extent possible, the Department of Education
60.19must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding
60.20as if the program were still operated by Joint Powers District No. 6067, East Metro
60.21Integration District.
60.22EFFECTIVE DATE.This section is effective the day following final enactment.

60.23    Sec. 20. LEASE LEVY; TRANSPORTATION HUB FOR ROSEMOUNT-APPLE
60.24VALLEY-EAGAN SCHOOL DISTRICT.
60.25Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
60.26School District No. 196, Rosemount-Apple Valley-Eagan, may lease a transportation
60.27hub under Minnesota Statutes, section 126C.40, subdivision 1. Levy authority under
60.28this section shall not exceed the total levy authority under Minnesota Statutes, section
60.29126C.40, subdivision 1, paragraph (e).
60.30EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

60.31    Sec. 21. REPEALER.
61.1Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.


61.4    Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
61.5is amended to read:
61.6    Subdivision 1. School lunch aid computation. Each school year, the state must
61.7pay participants in the national school lunch program the amount of 12.5 cents for each
61.8full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
61.9lunch served to students.
61.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
61.11and later.

61.12    Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a
61.13subdivision to read:
61.14    Subd. 4. No fees. A participant that receives school lunch aid under this section
61.15must make lunch available without charge to all participating students who qualify for
61.16free or reduced-price meals. The participant must also ensure that any reminders for
61.17payment of outstanding student meal balances do not demean or stigmatize any child
61.18participating in the school lunch program.
61.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
61.20and later.

61.21    Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
61.22    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
61.23section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

61.24 61.25		$	13,032,000 12,417,000	.....	2014
61.26 61.27		$	13,293,000 16,185,000	.....	2015

61.31    Section 1. Minnesota Statutes 2012, section 121A.19, is amended to read:
61.32121A.19 DEVELOPMENTAL SCREENING AID.
62.1    Each school year, the state must pay a district for each child or student screened by
62.2the district according to the requirements of section 121A.17. The amount of state aid
62.3for each child or student screened shall be: (1) $75 $80 for a child screened at age three;
62.4(2) $50 $55 for a child screened at age four; (3) $40 for a child screened at age five or
62.5six prior to kindergarten; and (4) $30 for a student screened within 30 days after first
62.6enrolling in a public school kindergarten if the student has not previously been screened
62.7according to the requirements of section 121A.17. If this amount of aid is insufficient,
62.8the district may permanently transfer from the general fund an amount that, when added
62.9to the aid, is sufficient. Developmental screening aid shall not be paid for any student
62.10who is screened more than 30 days after the first day of attendance at a public school
62.11kindergarten, except if a student transfers to another public school kindergarten within
62.1230 days after first enrolling in a Minnesota public school kindergarten program. In this
62.13case, if the student has not been screened, the district to which the student transfers may
62.14receive developmental screening aid for screening that student when the screening is
62.15performed within 30 days of the transfer date.
62.16EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
62.17and later.

62.18    Sec. 2. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
62.19    Subd. 2. Amount of aid. (a) A district is eligible to receive school readiness aid
62.20for eligible prekindergarten pupils enrolled in a school readiness program under section
62.21124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
62.22approved by the commissioner.
62.23(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid
62.24equal to:
62.25(1) the number of four-year-old children in the district on October 1 for the previous
62.26school year times the ratio of 50 percent of the total school readiness aid for that year to
62.27the total number of four-year-old children reported to the commissioner for the previous
62.28school year; plus
62.29(2) the number of pupils enrolled in the school district from families eligible for the
62.30free or reduced school lunch program for the previous school year times the ratio of
62.3150 percent of the total school readiness aid for that year to the total number of pupils
62.32in the state from families eligible for the free or reduced school lunch program for the
62.33previous school year.
62.34(c) For fiscal year 2015 and later, total school readiness aid equals $12,000,000.
63.1EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
63.2and later.

63.3    Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, is
63.4amended to read:
63.5    Subd. 5. Report required. The commissioner shall contract with an independent
63.6contractor to evaluate the early learning scholarship program. The evaluation must
63.7include recommendations regarding the appropriate scholarship amount, efficiency, and
63.8effectiveness of the administration, and impact on kindergarten readiness. By January
63.915, 2016, the commissioner shall submit a written copy of the evaluation to the chairs
63.10and ranking minority members of the legislative committees and divisions with primary
63.11jurisdiction over kindergarten through grade 12 education.

63.12    Sec. 4. Minnesota Statutes 2012, section 124D.522, is amended to read:
63.13124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
63.14GRANTS.
63.15(a) The commissioner, in consultation with the policy review task force under
63.16section 124D.521, may make grants to nonprofit organizations to provide services that
63.17are not offered by a district adult basic education program or that are supplemental to
63.18either the statewide adult basic education program, or a district's adult basic education
63.19program. The commissioner may make grants for: staff development for adult basic
63.20education teachers and administrators; training for volunteer tutors; training, services, and
63.21materials for serving disabled students through adult basic education programs; statewide
63.22promotion of adult basic education services and programs; development and dissemination
63.23of instructional and administrative technology for adult basic education programs;
63.24programs which primarily serve communities of color; adult basic education distance
63.25learning projects, including television instruction programs; and other supplemental
63.26services to support the mission of adult basic education and innovative delivery of adult
63.27basic education services.
63.28(b) The commissioner must establish eligibility criteria and grant application
63.29procedures. Grants under this section must support services throughout the state, focus on
63.30educational results for adult learners, and promote outcome-based achievement through
63.31adult basic education programs. Beginning in fiscal year 2002, the commissioner may
63.32make grants under this section from the state total adult basic education aid set aside for
63.33supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
63.34for supplemental service grants must be used for grants for adult basic education programs
64.1to encourage and support innovations in adult basic education instruction and service
64.2delivery. A grant to a single organization cannot exceed 20 40 percent of the total
64.3supplemental services aid. Nothing in this section prevents an approved adult basic
64.4education program from using state or federal aid to purchase supplemental services.

64.5    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is
64.6amended to read:
64.7    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
64.8education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
64.9during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
64.10(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
64.11fiscal years equals:
64.12    (1) the state total adult basic education aid for the preceding fiscal year plus any
64.13amount that is not paid for during the previous fiscal year, as a result of adjustments under
64.14subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
64.15    (2) the lesser of:
64.16    (i) 1.025 1.03; or
64.17    (ii) the average growth in state total contact hours over the prior ten program years.
64.18    Beginning in fiscal year 2002, two Three percent of the state total adult basic
64.19education aid must be set aside for adult basic education supplemental service grants
64.20under section 124D.522.
64.21    (b) The state total adult basic education aid, excluding basic population aid, equals
64.22the difference between the amount computed in paragraph (a), and the state total basic
64.23population aid under subdivision 2.
64.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
64.25and later.

64.26    Sec. 6. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
64.27    Subd. 3. Program revenue. Adult basic education programs established under
64.28section 124D.52 and approved by the commissioner are eligible for revenue under this
64.29subdivision. For fiscal year 2001 and later, adult basic education revenue for each
64.30approved program equals the sum of:
64.31(1) the basic population aid under subdivision 2 for districts participating in the
64.32program during the current program year; plus
65.1(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
65.2ratio of the contact hours for students participating in the program during the first prior
65.3program year to the state total contact hours during the first prior program year; plus
65.4(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
65.5the ratio of the enrollment of English learners during the second prior school year in
65.6districts participating in the program during the current program year to the state total
65.7enrollment of English learners during the second prior school year in districts participating
65.8in adult basic education programs during the current program year; plus
65.9(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
65.10the ratio of the latest federal census count of the number of adults aged 20 25 or older
65.11with no diploma residing in the districts participating in the program during the current
65.12program year to the latest federal census count of the state total number of adults aged 20
65.13 25 or older with no diploma residing in the districts participating in adult basic education
65.14programs during the current program year.

65.15    Sec. 7. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
65.16    Subd. 2. School readiness. For revenue for school readiness programs under
65.17Minnesota Statutes, sections 124D.15 and 124D.16:

65.18 65.19		$	10,095,000 10,458,000	.....	2014
65.20 65.21		$	10,159,000 11,809,000	.....	2015

65.22The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
65.23 for 2014.
65.24The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
65.25 $10,800,000 for 2015.

65.26    Sec. 8. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
65.27    Subd. 4. Health and developmental screening aid. For health and developmental
65.28screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

65.29		$	3,421,000	.....	2014
65.30 65.31		$	3,344,000 3,569,000	.....	2015

65.32The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
65.33The 2015 appropriation includes $463,000 for 2014 and $2,881,000 $3,106,000
65.34 for 2015.

66.1    Sec. 9. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
66.2    Subd. 14. Adult basic education aid. For adult basic education aid under
66.3Minnesota Statutes, section 124D.531:

66.4 66.5		$	47,005,000 48,782,000	.....	2014
66.6 66.7		$	48,145,000 48,415,000	.....	2015

66.8The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
66.9 for 2014.
66.10The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
66.11 $43,693,000 for 2015.

66.12    Sec. 10. APPROPRIATIONS.
66.13    Subdivision 1. Department of Education. The sums indicated in this section are
66.14appropriated from the general fund to the Department of Education for the fiscal years
66.15designated.
66.16    Subd. 2. Northside Achievement Zone. (a) For a grant to the Northside
66.17Achievement Zone:

66.18

$

1,132,000

.....

2015

66.19(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
66.20and the educational achievement gap through increased enrollment of families within
66.21the zone, and may be used for Northside Achievement Zone programming and services
66.22consistent with federal Promise Neighborhood program agreements and requirements.
66.23(c) The Northside Achievement Zone shall submit a report by October 1, 2015, to
66.24the chairs of the legislative committees with jurisdiction over early childhood through
66.25grade 12 education policy and finance that, at a minimum, summarizes program activities,
66.26specifies performance measures, and analyzes program outcomes.
66.27(d) This is a onetime appropriation.
66.28    Subd. 3. St. Paul Promise Neighborhood. (a) For a grant to the St. Paul Promise
66.29Neighborhood:

66.30

$

1,132,000

.....

2015

66.31(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
66.32and the educational achievement gap through increased enrollment of families within the
66.33zone, and may be used for St. Paul Promise Neighborhood programming and services
66.34consistent with federal Promise Neighborhood program agreements and requirements.
67.1(c) The St. Paul Promise Neighborhood shall submit a report by October 1, 2015, to
67.2the chairs of the legislative committees with jurisdiction over early childhood through
67.3grade 12 education policy and finance that, at a minimum, summarizes program activities,
67.4specifies performance measures, and analyzes program outcomes.
67.5(d) This is a onetime appropriation.


67.8    Section 1. Laws 2013, chapter 116, article 9, section 1, subdivision 2, is amended to read:
67.9    Subd. 2. Department. (a) For the Department of Education:

67.10		$	20,058,000	.....	2014
67.11 67.12		$	19,308,000 19,538,000	.....	2015

67.13Any balance in the first year does not cancel but is available in the second year.
67.14(b) $260,000 each year is for the Minnesota Children's Museum.
67.15(c) $41,000 each year is for the Minnesota Academy of Science.
67.16(d) $50,000 each year is for the Duluth Children's Museum.
67.17(e) $618,000 $....... each year is for the Board of Teaching. Any balance in the first
67.18year does not cancel but is available in the second year.
67.19(f) $167,000 each year is for the Board of School Administrators. Any balance in
67.20the first year does not cancel but is available in the second year.
67.21(g) $75,000 in fiscal year 2015 only is for The Works Museum.
67.22(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center
67.23for hands-on science, technology, engineering, and math (STEM) education.
67.24(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263,
67.25section 1.
67.26(j) The expenditures of federal grants and aids as shown in the biennial budget
67.27document and its supplements are approved and appropriated and shall be spent as
67.28indicated.
67.29(h) (k) None of the amounts appropriated under this subdivision may be used for
67.30Minnesota's Washington, D.C. office.
67.31(i) (l) $250,000 each year is for the School Finance Division to enhance financial
67.32data analysis.
67.33(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with
67.34teacher development and evaluation. Any balance in the first year does not cancel and
67.35is available in the second year.

68.1    Sec. 2. Laws 2013, chapter 116, article 9, section 2, is amended to read:
68.2    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
68.3The sums indicated in this section are appropriated from the general fund to the
68.4Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

68.5		$	11,749,000	.....	2014
68.6 68.7		$	11,664,000 11,964,000	.....	2015

68.8$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
68.9kitchen facilities. Any balance in the first year does not cancel but is available in the
68.10second year.

68.11    Sec. 3. APPROPRIATION; RESPONSES TO HEALTH INSURANCE
68.12TRANSPARENCY ACT BID REQUESTS.
68.13    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the
68.14commissioner of management and budget to comply with the requirements relating to
68.15health insurance transparency similar to those proposed in House File 2180, if enacted in
68.16the 2014 regular legislative session. This is a onetime appropriation.
68.17    (b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner
68.18of management and budget shall report by January 15, 2015, to the legislative chairs
68.19and ranking minority members with jurisdiction over state government finance on the
68.20ongoing costs incurred by the public employees insurance program in compliance with
68.21the requirements of the health insurance transparency act and may request additional
68.22appropriations, if necessary.


68.26    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
68.27read:
68.28    Subd. 3. Enrollment options transportation. For transportation of pupils attending
68.29postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
68.30of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

68.31 68.32		$	44,000 37,000	.....	2014
68.33 68.34		$	48,000 40,000	.....	2015

69.1    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
69.2    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
69.3127A.49 :

69.4 69.5		$	2,747,000 2,876,000	.....	2014
69.6 69.7		$	3,136,000 3,103,000	.....	2015

69.8The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
69.9 for 2014.
69.10The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
69.11 $2,817,000 for 2015.

69.12    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
69.13    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
69.14Statutes, section 123A.485:

69.15 69.16		$	472,000 585,000	.....	2014
69.17 69.18		$	480,000 254,000	.....	2015

69.19The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
69.20The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
69.21 for 2015.

69.22    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
69.23    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
69.24Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

69.25 69.26		$	15,582,000 16,068,000	.....	2014
69.27 69.28		$	16,169,000 16,074,000	.....	2015

69.29The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
69.30 for 2014.
69.31The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
69.32 $14,522,000 for 2015.

69.33    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
69.34    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
69.35under Minnesota Statutes, section 123B.92, subdivision 9:

70.1 70.2		$	18,565,000 18,566,000	.....	2014
70.3 70.4		$	18,946,000 17,646,000	.....	2015

70.5The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
70.6 for 2014.
70.7The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
70.8 $15,880,000 for 2015.

70.9    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
70.10    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
70.11Statutes, section 124D.4531, subdivision 1b:

70.12 70.13		$	4,320,000 3,959,000	.....	2014
70.14 70.15		$	5,680,000 5,172,000	.....	2015

70.16The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
70.17The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
70.18 $4,733,000 for 2015.

70.20    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
70.21    Subd. 3. Achievement and integration aid. For achievement and integration aid
70.22under Minnesota Statutes, section 124D.862:

70.23 70.24		$	58,911,000 55,609,000	.....	2014
70.25 70.26		$	68,623,000 62,692,000	.....	2015

70.27The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
70.28The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
70.29 $56,514,000 for 2015.

70.30    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
70.31    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
70.32Statutes, section 124D.98:

71.1 71.2		$	52,514,000 50,998,000	.....	2014
71.3 71.4		$	53,818,000 47,458,000	.....	2015

71.5The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
71.6 for 2014.
71.7The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
71.8 $42,526,000 for 2015.

71.9    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
71.10    Subd. 5. Interdistrict desegregation or integration transportation grants. For
71.11interdistrict desegregation or integration transportation grants under Minnesota Statutes,
71.12section 124D.87:

71.13 71.14		$	13,968,000 13,521,000	.....	2014
71.15 71.16		$	14,712,000 14,248,000	.....	2015

71.17    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
71.18    Subd. 6. Success for the future. For American Indian success for the future grants
71.19under Minnesota Statutes, section 124D.81:

71.20 71.21		$	2,137,000 2,214,000	.....	2014
71.22		$	2,137,000	.....	2015

71.23The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
71.24 for 2014.
71.25The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
71.26 $1,924,000 for 2015.

71.27    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
71.28    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
71.29Statutes, section 124D.83:

71.30 71.31		$	2,080,000 2,144,000	.....	2014
71.32 71.33		$	2,230,000 2,152,000	.....	2015

71.34The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
71.35 for 2014.
72.1The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
72.2 $1,944,000 for 2015.

72.3    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to
72.4read:
72.5    Subd. 20. Alternative compensation. For alternative teacher compensation aid
72.6under Minnesota Statutes, section 122A.415, subdivision 4:

72.7 72.8

$

60,340,000 71,599,000

.....

2015

72.9The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.

72.11    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
72.12    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
72.13Statutes, section 124D.11, subdivision 4:

72.14 72.15		$	54,484,000 54,763,000	.....	2014
72.16 72.17		$	59,533,000 58,294,000	.....	2015

72.18The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
72.19 for 2014.
72.20The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
72.21 $52,967,000 for 2015.

72.23    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
72.24    Subd. 2. Special education; regular. For special education aid under Minnesota
72.25Statutes, section 125A.75:

72.26 72.27		$	997,725,000 1,038,514,000	.....	2014
72.28 72.29		$	1,108,211,000 1,111,641,000	.....	2015

72.30The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
72.31 $920,282,000 for 2014.
72.32The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
72.33$938,282,000 $982,092,000 for 2015.

73.1    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
73.2    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
73.3section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
73.4within the district boundaries for whom no district of residence can be determined:

73.5 73.6		$	1,655,000 1,548,000	.....	2014
73.7 73.8		$	1,752,000 1,674,000	.....	2015

73.9If the appropriation for either year is insufficient, the appropriation for the other
73.10year is available.

73.11    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
73.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
73.13services under Minnesota Statutes, section 125A.75, subdivision 1:

73.14 73.15		$	345,000 351,000	.....	2014
73.16 73.17		$	355,000 346,000	.....	2015

73.18The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
73.19The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
73.20 for 2015.

73.22    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
73.23    Subd. 2. Health and safety revenue. For health and safety aid according to
73.24Minnesota Statutes, section 123B.57, subdivision 5:

73.25 73.26		$	463,000 473,000	.....	2014
73.27 73.28		$	434,000 651,000	.....	2015

73.29The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
73.30The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
73.31 for 2015.

73.32    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
73.33    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
73.34Statutes, section 123B.53, subdivision 6:

74.1 74.2		$	19,083,000 19,778,000	.....	2014
74.3 74.4		$	25,060,000 22,591,000	.....	2015

74.5The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
74.6 for 2014.
74.7The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
74.8 $20,660,000 for 2015.

74.9    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
74.10    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
74.11according to Minnesota Statutes, section 123B.59, subdivision 1:

74.12 74.13		$	19,287,000 19,982,000	.....	2014
74.14		$	19,287,000	.....	2015

74.15The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
74.16 for 2014.
74.17The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
74.18 $17,359,000 for 2015.

74.19    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
74.20    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
74.21Minnesota Statutes, section 123B.591, subdivision 4:

74.22 74.23		$	3,564,000 3,858,000	.....	2014
74.24 74.25		$	3,730,000 4,024,000	.....	2015

74.26The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
74.27 for 2014.
74.28The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
74.29 $3,646,000 for 2015.

74.31    Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
74.32    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
74.33Statutes, section 124D.1158:

75.1 75.2		$	5,711,000 5,308,000	.....	2014
75.3 75.4		$	6,022,000 5,607,000	.....	2015

75.5    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
75.6    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
75.7section 124D.118:

75.8 75.9		$	1,039,000 992,000	.....	2014
75.10 75.11		$	1,049,000 1,002,000	.....	2015

75.12    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
75.13    Subd. 6. Basic system support. For basic system support grants under Minnesota
75.14Statutes, section 134.355:

75.15 75.16		$	13,570,000 14,058,000	.....	2014
75.17 75.18		$	13,570,000 13,570,000	.....	2015

75.19The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
75.20 for 2014.
75.21The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
75.22 $12,213,000 for 2015.

75.23    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
75.24    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
75.25Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

75.26 75.27		$	1,300,000 1,346,000	.....	2014
75.28		$	1,300,000	.....	2015

75.29The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
75.30 for 2014.
75.31The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
75.32 $1,170,000 for 2015.

75.33    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
76.1    Subd. 9. Regional library telecommunications aid. For regional library
76.2telecommunications aid under Minnesota Statutes, section 134.355:

76.3 76.4		$	2,300,000 2,382,000	.....	2014
76.5		$	2,300,000	.....	2015

76.6The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
76.7 for 2014.
76.8The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
76.9 $2,070,000 for 2015.

76.12    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
76.13    Subd. 3. Early childhood family education aid. For early childhood family
76.14education aid under Minnesota Statutes, section 124D.135:

76.15 76.16		$	22,078,000 22,797,000	.....	2014
76.17 76.18		$	22,425,000 22,001,000	.....	2015

76.19The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
76.20 for 2014.
76.21The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
76.22 $19,803,000 for 2015.

76.23    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
76.24    Subd. 10. Community education aid. For community education aid under
76.25Minnesota Statutes, section 124D.20:

76.26 76.27		$	935,000 955,000	.....	2014
76.28 76.29		$	1,056,000 1,060,000	.....	2015

76.30The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
76.31The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
76.32 for 2015.

76.33    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
77.1    Subd. 11. Adults with disabilities program aid. For adults with disabilities
77.2programs under Minnesota Statutes, section 124D.56:

77.3 77.4		$	710,000 735,000	.....	2014
77.5		$	710,000	.....	2015

77.6The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
77.7The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
77.8 for 2015."
77.9Delete the title and insert:
77.11relating to education; providing funding and policy modifications for early
77.12childhood, kindergarten through grade 12, and adult education, including general
77.13education, education excellence, special education, nutrition, and self-sufficiency
77.14and lifelong learning; making forecast adjustments; appropriating money;
77.15amending Minnesota Statutes 2012, sections 121A.19; 122A.40, subdivision
77.1613; 122A.41, subdivision 6; 122A.415, subdivision 1; 123A.05, subdivision
77.172; 123A.485; 123A.64; 123B.71, subdivisions 8, 9; 124D.09, subdivisions 9,
77.1813; 124D.111, by adding a subdivision; 124D.16, subdivision 2; 124D.522;
77.19124D.531, subdivision 3; 124D.59, subdivision 2; 125A.76, subdivision 2;
77.20126C.10, subdivisions 25, 26, 28; 127A.45, subdivision 2; 127A.49, subdivisions
77.212, 3; 129C.10, subdivision 3, by adding a subdivision; Minnesota Statutes 2013
77.22Supplement, sections 123B.53, subdivisions 1, 5; 123B.54; 123B.75, subdivision
77.235; 124D.11, subdivision 1; 124D.111, subdivision 1; 124D.165, subdivision 5;
77.24124D.531, subdivision 1; 124D.65, subdivision 5; 124D.862, subdivisions 1,
77.252; 125A.0942; 125A.11, subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c;
77.26125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10, subdivisions 2,
77.272a, 2d, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.44; 126C.48, subdivision
77.288; 127A.47, subdivision 7; Laws 2012, chapter 263, section 1; Laws 2013,
77.29chapter 116, article 1, section 58, subdivisions 2, 3, 4, 5, 6, 7, 11; article 3,
77.30section 37, subdivisions 3, 4, 5, 6, 8, 11, 15, 20; article 4, section 9, subdivision
77.312; article 5, section 31, subdivisions 2, 3, 4; article 6, section 12, subdivisions 2,
77.323, 4, 5, 6; article 7, section 21, subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5,
77.33subdivisions 2, 3, 4, 10, 11, 14; article 9, sections 1, subdivision 2; 2; proposing
77.34coding for new law in Minnesota Statutes, chapters 123A; 123B; 124D; 129C;
77.35repealing Minnesota Statutes 2012, section 123B.71, subdivision 1."