1.1.................... moves to amend the H3172A109 amendment to H.F. No. 3172, the
1.2first engrossment, as follows:
1.3Page 1, delete lines 2 to 9 and insert:
1.4"Page 151, delete Article 17, and insert:


1.7    Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
1.8    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
1.9or alternative learning program must reserve revenue in an amount equal to the sum of
1.10(1) at least 90 and no more than 100 percent of the district average general education
1.11revenue per adjusted pupil unit minus an amount equal to the product of the formula
1.12allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated
1.13without basic skills revenue and transportation sparsity revenue, times the number of
1.14pupil units attending an area learning center or alternative learning program under this
1.15section, plus (2) the amount of basic skills revenue generated by pupils attending the area
1.16learning center or alternative learning program. The amount of reserved revenue under
1.17this subdivision may only be spent on program costs associated with the area learning
1.18center or alternative learning program.
1.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
1.20and later.

1.21    Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
1.22amended to read:
1.23    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
1.24each year, the school district must recognize as revenue, in the fund for which the levy
1.25was 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 2013 Supplement, section 126C.05, subdivision 15, is
4.6amended to read:
4.7    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
4.8year program under section 124D.128, an area learning center or an alternative learning
4.9program approved by the commissioner under sections 123A.05 and 123A.06, or a
4.10contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
4.11subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
4.12than 935 hours in a school year for an elementary student, more than 850 hours in a school
4.13year for a kindergarten student without a disability in an all-day kindergarten program,
4.14or more than 425 hours in a school year for a half-day kindergarten student without a
4.15disability, that pupil may be counted as more than one pupil in average daily membership
4.16for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
4.17be determined by the ratio of the number of hours of instruction provided to that pupil in
4.18excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
4.19secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
4.20or the number of hours required for a full-time elementary pupil in the district to 935 for
4.21an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
4.22number of hours required for a full-time kindergarten student without a disability in the
4.23district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
4.24425 hours or the number of hours required for a half-time kindergarten student without a
4.25disability in the district to 425 for a half-day kindergarten student without a disability.
4.26Hours that occur after the close of the instructional year in June shall be attributable to
4.27the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
4.28counted as more than 1.2 pupils in average daily membership under this subdivision.
4.29(b)(i) To receive general education revenue for a pupil in an area learning center
4.30or alternative learning program that has an independent study component, a district
4.31must meet the requirements in this paragraph. The district must develop, for the pupil,
4.32a continual learning plan consistent with section 124D.128, subdivision 3. Each school
4.33district that has an area learning center or alternative learning program must reserve
4.34revenue in an amount equal to at least 90 and not more than 100 percent of the district
4.35average general education revenue per pupil unit, minus an amount equal to the product
5.1of the formula allowance according to section 126C.10, subdivision 2, times .0466,
5.2calculated without basic skills and transportation sparsity revenue, times the number of
5.3pupil units generated by students attending an area learning center or alternative learning
5.4program. The amount of reserved revenue available under this subdivision may only be
5.5spent for program costs associated with the area learning center or alternative learning
5.6program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
5.7pupils attending the eligible program must be allocated to the program.
5.8(ii) General education revenue for a pupil in a state-approved alternative program
5.9without an independent study component must be prorated for a pupil participating for
5.10less than a full year, or its equivalent. The district must develop a continual learning plan
5.11for the pupil, consistent with section 124D.128, subdivision 3. Each school district that
5.12has an area learning center or alternative learning program must reserve revenue in an
5.13amount equal to at least 90 and not more than 100 percent of the district average general
5.14education revenue per pupil unit, minus an amount equal to the product of the formula
5.15allowance according to section 126C.10, subdivision 2, times .0466, calculated without
5.16basic skills and transportation sparsity revenue, times the number of pupil units generated
5.17by students attending an area learning center or alternative learning program. The amount
5.18of reserved revenue available under this subdivision may only be spent for program costs
5.19associated with the area learning center or alternative learning program. Basic skills
5.20revenue generated according to section 126C.10, subdivision 4, by pupils attending the
5.21eligible program must be allocated to the program.
5.22(iii) General education revenue for a pupil in a state-approved alternative program
5.23that has an independent study component must be paid for each hour of teacher contact
5.24time and each hour of independent study time completed toward a credit or graduation
5.25standards necessary for graduation. Average daily membership for a pupil shall equal the
5.26number of hours of teacher contact time and independent study time divided by 1,020.
5.27(iv) For a state-approved alternative program having an independent study
5.28component, the commissioner shall require a description of the courses in the program, the
5.29kinds of independent study involved, the expected learning outcomes of the courses, and
5.30the means of measuring student performance against the expected outcomes.

5.31    Sec. 7. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is
5.32amended to read:
5.33    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
5.34equals the formula allowance times the adjusted marginal cost pupil units for the school
5.35year. For fiscal year 2015 and later, the basic revenue for each district equals the formula
6.1allowance times the adjusted pupil units for the school year. The formula allowance for
6.2fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The
6.3formula allowance for fiscal year 2015 and later is $5,806 $5,871.
6.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
6.5and later.

6.6    Sec. 8. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a, is
6.7amended to read:
6.8    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
6.9fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
6.10cost pupil units of the district for each pupil in average daily membership in excess of 1.0
6.11and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
6.12time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
6.13of the adjusted pupil units of the district for each pupil in average daily membership in
6.14excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
6.15(b) A school district's extended time revenue may be used for extended day
6.16programs, extended week programs, summer school, and other programming authorized
6.17under the learning year program.
6.18EFFECTIVE DATE.This section is effective the day following final enactment
6.19and applies to revenue for fiscal year 2014 and later.

6.20    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24, is
6.21amended to read:
6.22    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
6.23    (1) the school district's adjusted pupil unit amount of basic revenue, transition
6.24revenue, and referendum revenue is less than the value of the school district at or
6.25immediately above the 95th percentile of school districts in its equity region for those
6.26revenue categories; and
6.27    (2) the school district's administrative offices are not located in a city of the first
6.28class on July 1, 1999.
6.29    (b) Equity revenue for a qualifying district that receives referendum revenue under
6.30section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
6.31units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
6.32equity index computed under subdivision 27.
7.1    (c) Equity revenue for a qualifying district that does not receive referendum revenue
7.2under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
7.3units for that year times $14.
7.4    (d) A school district's equity revenue is increased by the greater of zero or an amount
7.5equal to the district's resident adjusted pupil units times the difference between ten percent
7.6of the statewide average amount of referendum revenue per resident adjusted pupil unit for
7.7that year and the district's referendum revenue per resident adjusted pupil unit. A school
7.8district's revenue under this paragraph must not exceed $100,000 for that year.
7.9    (e) A school district's equity revenue for a school district located in:
7.10    (1) the metro equity region;
7.11    (2) a school district with its administrative offices located in any Minnesota county
7.12in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area delineated in
7.132009 by the United States Census Bureau;
7.14    (3) Independent School District No. 742, St. Cloud, or a district bordering the
7.15St. Cloud school district;
7.16    (4) Independent School District No. 709, Duluth, or a school district bordering
7.17the Duluth school district;
7.18    (5) Independent School District No. 535, Rochester, or a district bordering the
7.19Rochester school district; or
7.20    (6) Independent School District No. 152, Moorhead, school district or a district
7.21bordering the Moorhead school district;
7.22     equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
7.23    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
7.24units.
7.25EFFECTIVE DATE.The changes in paragraph (d) are effective for revenue for
7.26fiscal year 2015 and later. The changes in paragraph (e) are effective for revenue for
7.27fiscal years 2017 and later.

7.28    Sec. 10. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
7.29    Subd. 25. Regional equity gap. The regional equity gap equals the difference
7.30between the value of the school district at or immediately above the fifth percentile of
7.31adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
7.32district at or immediately above the 95th percentile of adjusted general revenue per
7.33adjusted marginal cost pupil unit.
8.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
8.2and later.

8.3    Sec. 11. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
8.4    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
8.5or the difference between the district's adjusted general revenue and the value of the
8.6school district at or immediately above the regional 95th percentile of adjusted general
8.7revenue per adjusted marginal cost pupil unit.
8.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
8.9and later.

8.10    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
8.11is amended to read:
8.12    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
8.13sum of the transition revenue the district would have received for fiscal year 2015 under
8.14Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
8.15of zero or the difference between:
8.16    (1) the sum of:
8.17    (i) the general education revenue the district would have received for fiscal year
8.182015 according to Minnesota Statutes 2012, section 126C.10;
8.19(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
8.20Statutes 2012, section 124D.86;
8.21(iii) the pension adjustment the district would have received for fiscal year 2015
8.22under Minnesota Statutes 2012, section 127A.50;
8.23(iv) the special education aid the district would have received for fiscal year 2015
8.24under Minnesota Statutes 2012, section 125A.76; and
8.25(v) the special education excess cost aid the district would have received for fiscal
8.26year 2015 under Minnesota Statutes 2012, section 125A.79; and
8.27(2) the sum of the district's:
8.28(i) general education revenue for fiscal year 2015 excluding transition revenue
8.29under this section;
8.30(ii) achievement and integration revenue for fiscal year 2015 under section
8.31124D.862 ; and
8.32(iii) special education aid for fiscal year 2015 under section 125A.76; and
8.33(iv) alternative teacher compensation revenue for fiscal year 2015 under section
8.34122A.415,
9.1divided by the number of adjusted pupil units for fiscal year 2015.
9.2    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
9.3the district's transition allowance times the district's adjusted pupil units.
9.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
9.5and later.

9.6    Sec. 13. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
9.7amended to read:
9.8    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
9.9 A district's referendum equalization levy equals the sum of the first tier referendum
9.10equalization levy, the second tier referendum equalization levy, and the third tier
9.11referendum equalization levy.
9.12(b) A district's first tier referendum equalization levy equals the district's first tier
9.13referendum equalization revenue times the lesser of one or the ratio of the district's
9.14referendum market value per resident pupil unit to $880,000.
9.15(c) A district's second tier referendum equalization levy equals the district's second
9.16tier referendum equalization revenue times the lesser of one or the ratio of the district's
9.17referendum market value per resident pupil unit to $510,000.
9.18(d) A district's third tier referendum equalization levy equals the district's third
9.19tier referendum equalization revenue times the lesser of one or the ratio of the district's
9.20referendum market value per resident pupil unit to $290,000.

9.21    Sec. 14. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
9.22is amended to read:
9.23    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
9.24of a district's referendum equalization aid and location equity aid under section 126C.10,
9.25subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
9.26equalization aid the district would have received for fiscal year 2015 under Minnesota
9.27Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
9.28received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
9.29(a), (b), and (c).
9.30(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and
9.31location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later,
9.32for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
9.33not be less than the product of (1) the district's referendum equalization aid for fiscal year
9.342015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
10.1school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
10.2of one or the ratio of the district's referendum market value used for fiscal year 2015
10.3referendum equalization calculations to the district's referendum market value used for
10.4that year's referendum equalization calculations.
10.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
10.6and later.

10.7    Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
10.8amended to read:
10.9    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
10.10subdivision 1 , may be increased in the amount approved by the voters of the district
10.11at a referendum called for the purpose. The referendum may be called by the board.
10.12The referendum must be conducted one or two calendar years before the increased levy
10.13authority, if approved, first becomes payable. Only one election to approve an increase
10.14may be held in a calendar year. Unless the referendum is conducted by mail under
10.15subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
10.16first Monday in November. The ballot must state the maximum amount of the increased
10.17revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
10.18of increased revenue per adjusted pupil unit that differs from year to year over the number
10.19of years for which the increased revenue is authorized or may state that the amount shall
10.20increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
10.21annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
10.22state that existing referendum levy authority is expiring. In this case, the ballot may also
10.23compare the proposed levy authority to the existing expiring levy authority, and express
10.24the proposed increase as the amount, if any, over the expiring referendum levy authority.
10.25The ballot must designate the specific number of years, not to exceed ten, for which the
10.26referendum authorization applies. The ballot, including a ballot on the question to revoke
10.27or reduce the increased revenue amount under paragraph (c), must abbreviate the term
10.28"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
10.29be modified to read, in cases of renewing existing levies at the same amount per pupil
10.30as in the previous year:
10.31"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
10.32TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
10.33SCHEDULED TO EXPIRE."
10.34    The ballot may contain a textual portion with the information required in this
10.35subdivision and a question stating substantially the following:
11.1    "Shall the increase in the revenue proposed by (petition to) the board of .........,
11.2School District No. .., be approved?"
11.3    If approved, an amount equal to the approved revenue per adjusted pupil unit times
11.4the adjusted pupil units for the school year beginning in the year after the levy is certified
11.5shall be authorized for certification for the number of years approved, if applicable, or
11.6until revoked or reduced by the voters of the district at a subsequent referendum.
11.7    (b) The board must prepare and deliver by first class mail at least 15 days but no more
11.8than 30 days before the day of the referendum to each taxpayer a notice of the referendum
11.9and the proposed revenue increase. The board need not mail more than one notice to any
11.10taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
11.11those shown to be owners on the records of the county auditor or, in any county where
11.12tax statements are mailed by the county treasurer, on the records of the county treasurer.
11.13Every property owner whose name does not appear on the records of the county auditor
11.14or the county treasurer is deemed to have waived this mailed notice unless the owner
11.15has requested in writing that the county auditor or county treasurer, as the case may be,
11.16include the name on the records for this purpose. The notice must project the anticipated
11.17amount of tax increase in annual dollars for typical residential homesteads, agricultural
11.18homesteads, apartments, and commercial-industrial property within the school district.
11.19    The notice for a referendum may state that an existing referendum levy is expiring
11.20and project the anticipated amount of increase over the existing referendum levy in
11.21the first year, if any, in annual dollars for typical residential homesteads, agricultural
11.22homesteads, apartments, and commercial-industrial property within the district.
11.23    The notice must include the following statement: "Passage of this referendum will
11.24result in an increase in your property taxes." However, in cases of renewing existing levies,
11.25the notice may include the following statement: "Passage of this referendum extends an
11.26existing operating referendum at the same amount per pupil as in the previous year."
11.27    (c) A referendum on the question of revoking or reducing the increased revenue
11.28amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
11.29revoke or reduce the revenue amount must state the amount per resident marginal cost
11.30 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
11.31by the voters of the district pursuant to paragraph (a) must be available to the school
11.32district at least once before it is subject to a referendum on its revocation or reduction for
11.33subsequent years. Only one revocation or reduction referendum may be held to revoke or
11.34reduce referendum revenue for any specific year and for years thereafter.
11.35    (d) The approval of 50 percent plus one of those voting on the question is required to
11.36pass a referendum authorized by this subdivision.
12.1    (e) At least 15 days before the day of the referendum, the district must submit a
12.2copy of the notice required under paragraph (b) to the commissioner and to the county
12.3auditor of each county in which the district is located. Within 15 days after the results
12.4of the referendum have been certified by the board, or in the case of a recount, the
12.5certification of the results of the recount by the canvassing board, the district must notify
12.6the commissioner of the results of the referendum.
12.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
12.8and later.

12.9    Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
12.10is amended to read:
12.11    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
12.129, a school district may convert up to $300 per adjusted pupil unit of referendum authority
12.13from voter approved to board approved by a board vote. A district with less than $300 per
12.14adjusted pupil unit of referendum authority after the local optional revenue subtraction
12.15under subdivision 1 may authorize new referendum authority up to the difference between
12.16$300 per adjusted pupil unit and the district's referendum authority. The board may
12.17authorize this levy for up to five years and may subsequently reauthorize that authority
12.18in increments of up to five years.
12.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
12.20and later.

12.21    Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
12.22126C.44 SAFE SCHOOLS LEVY.
12.23    (a) Each district may make a levy on all taxable property located within the district
12.24for the purposes specified in this section. The maximum amount which may be levied for
12.25all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
12.26units for the school year. The proceeds of the levy must be reserved and used for directly
12.27funding the following purposes or for reimbursing the cities and counties who contract
12.28with the district for the following purposes:
12.29    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
12.30peace officers and sheriffs for liaison in services in the district's schools;
12.31    (2) to pay the costs for a drug abuse prevention program as defined in section
12.32609.101, subdivision 3 , paragraph (e), in the elementary schools;
13.1    (3) to pay the costs for a gang resistance education training curriculum in the
13.2district's schools;
13.3    (4) to pay the costs for security in the district's schools and on school property;
13.4    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
13.5voluntary opt-in suicide prevention tools, and violence prevention measures taken by
13.6the school district;
13.7    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
13.8school social workers, licensed school psychologists, and licensed alcohol and chemical
13.9dependency counselors to help provide early responses to problems;
13.10    (7) to pay for facility security enhancements including laminated glass, public
13.11announcement systems, emergency communications devices, and equipment and facility
13.12modifications related to violence prevention and facility security;
13.13    (8) to pay for costs associated with improving the school climate; or
13.14    (9) to pay costs for colocating and collaborating with mental health professionals
13.15who are not district employees or contractors.
13.16    (b) For expenditures under paragraph (a), clause (1), the district must initially
13.17attempt to contract for services to be provided by peace officers or sheriffs with the
13.18police department of each city or the sheriff's department of the county within the district
13.19containing the school receiving the services. If a local police department or a county
13.20sheriff's department does not wish to provide the necessary services, the district may
13.21contract for these services with any other police or sheriff's department located entirely or
13.22partially within the school district's boundaries.
13.23    (c) A school district that is a member of an intermediate school district may
13.24include in its authority under this section the costs associated with safe schools activities
13.25authorized under paragraph (a) for intermediate school district programs. This authority
13.26must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
13.27districts. This authority is in addition to any other authority authorized under this section.
13.28Revenue raised under this paragraph must be transferred to the intermediate school district.
13.29EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

13.30    Sec. 18. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
13.31    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
13.32treasurers pursuant to section 276.10, apportionments from the school endowment fund
13.33pursuant to section 127A.33, apportionments by the county auditor pursuant to section
13.34127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
13.35pursuant to chapter 298.
14.1(b) "Cumulative amount guaranteed" means the product of
14.2(1) the cumulative disbursement percentage shown in subdivision 3; times
14.3(2) the sum of
14.4(i) the current year aid payment percentage of the estimated aid and credit
14.5entitlements paid according to subdivision 13; plus
14.6(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
14.7(iii) the other district receipts.
14.8(c) "Payment date" means the date on which state payments to districts are made
14.9by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
14.10or a weekday which is a legal holiday, the payment shall be made on the immediately
14.11preceding business day. The commissioner may make payments on dates other than
14.12those listed in subdivision 3, but only for portions of payments from any preceding
14.13payment dates which could not be processed by the electronic funds transfer method due
14.14to documented extenuating circumstances.
14.15(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
14.16fiscal year 2011, and 60 in fiscal years 2012 and later 90.

14.17    Sec. 19. Minnesota Statutes 2012, section 127A.45, subdivision 3, is amended to read:
14.18    Subd. 3. Payment dates and percentages. (a) The commissioner shall pay to a
14.19district on the dates indicated an amount computed as follows: the cumulative amount
14.20guaranteed minus the sum of (1) the district's other district receipts through the current
14.21payment, and (2) the aid and credit payments through the immediately preceding payment.
14.22For purposes of this computation, the payment dates and the cumulative disbursement
14.23percentages are as follows:

14.24		Payment date	Percentage
14.25	Payment 1	July 15:	5.5
14.26	Payment 2	July 30:	8.0
14.27	Payment 3	August 15:	17.5
14.28	Payment 4	August 30:	20.0
14.29	Payment 5	September 15:	22.5
14.30	Payment 6	September 30:	25.0
14.31	Payment 7	October 15:	27.0
14.32	Payment 8	October 30:	30.0
14.33	Payment 9	November 15:	32.5
14.34	Payment 10	November 30:	36.5
14.35	Payment 11	December 15:	42.0
14.36	Payment 12	December 30:	45.0
14.37	Payment 13	January 15:	50.0
15.1	Payment 14	January 30:	54.0
15.2	Payment 15	February 15:	58.0
15.3	Payment 16	February 28:	63.0
15.4	Payment 17	March 15:	68.0
15.5	Payment 18	March 30:	74.0
15.6	Payment 19	April 15:	78.0
15.7	Payment 20	April 30:	85.0
15.8	Payment 21	May 15:	90.0
15.9	Payment 22	May 30:	95.0
15.10	Payment 23	June 20:	100.0

15.11(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
15.12to a school district or charter school on the dates indicated an amount computed as follows:

15.13 15.14	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
15.15 15.16	Payment 4	August 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
15.17 15.18	Payment 6	September 30: 40 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
15.19 15.20	Payment 8	October 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

15.21(c) Notwithstanding paragraph (b), if the current year aid payment percentage
15.22under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under
15.23paragraph (a), the commissioner shall pay to a charter school on the dates indicated an
15.24amount computed as follows:

15.25 15.26	Payment 1	July 15: 75 percent of the final adjustment for the prior fiscal year for all aid entitlements
15.27 15.28	Payment 8	October 30: 25 percent of the final adjustment for the prior fiscal year for all aid entitlements

15.29EFFECTIVE DATE.This section is effective July 1, 2015.

15.30    Sec. 20. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
15.31amended to read:
15.32    Subd. 7. Alternative attendance programs. (a) The general education aid and
15.33special education aid for districts must be adjusted for each pupil attending a nonresident
15.34district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
15.35adjustments must be made according to this subdivision.
15.36    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
15.37education and services" means the difference between: (1) the actual cost of providing
15.38special instruction and services, including special transportation and unreimbursed
16.1building lease and debt service costs for facilities used primarily for special education, for
16.2a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
16.3125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
16.4receives special instruction and services outside the regular classroom for more than
16.560 percent of the school day, the amount of general education revenue and referendum
16.6equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
16.7to that pupil for the portion of time the pupil receives special instruction and services
16.8outside of the regular classroom, excluding portions attributable to district and school
16.9administration, district support services, operations and maintenance, capital expenditures,
16.10and pupil transportation, minus (3) special education aid under section 125A.76
16.11attributable to that pupil, that is received by the district providing special instruction and
16.12services. For purposes of this paragraph, general education revenue and referendum
16.13equalization aid attributable to a pupil must be calculated using the serving district's
16.14average general education revenue and referendum equalization aid per adjusted pupil unit.
16.15(c) For fiscal year 2015 and later, special education aid paid to a resident district
16.16must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
16.17special education and services.
16.18(d) Notwithstanding paragraph (c), special education aid paid to a resident district
16.19must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
16.20education and services provided to students at an intermediate district, cooperative, or
16.21charter school where the percent of students eligible for special education services is at
16.22least 70 percent of the charter school's total enrollment.
16.23    (e) Special education aid paid to the district or cooperative providing special
16.24instruction and services for the pupil, or to the fiscal agent district for a cooperative,
16.25must be increased by the amount of the reduction in the aid paid to the resident district
16.26under paragraphs (c) and (d). If the resident district's special education aid is insufficient
16.27to make the full adjustment, the remaining adjustment shall be made to other state aids
16.28due to the district.
16.29    (f) An area learning center operated by a service cooperative, intermediate district,
16.30education district, or a joint powers cooperative may elect through the action of the
16.31constituent boards to charge the resident district tuition for pupils rather than to have the
16.32general education revenue paid to a fiscal agent school district. Except as provided in
16.33paragraph (e), the district of residence must pay tuition equal to at least 90 and no more
16.34than 100 percent of the district average general education revenue per pupil unit minus
16.35an amount equal to the product of the formula allowance according to section 126C.10,
16.36subdivision 2 , times .0466, calculated without compensatory revenue and transportation
17.1sparsity revenue, times the number of pupil units for pupils attending the area learning
17.2center.
17.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
17.4and later.

17.5    Sec. 21. Laws 2012, chapter 263, section 1, is amended to read:
17.6    Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND
17.7SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
17.8    Subdivision 1. Establishment; requirements for participation. (a) A five-year
17.9 pilot project for the 2013-2014 through 2017-2018 school years is established to improve
17.10student and school outcomes by allowing groups of school districts to work together to
17.11provide innovative education programs and activities and share district resources. The
17.12pilot project may last until June 30, 2018, or for up to five years, whichever is less, except
17.13that innovation partnerships formed during the period of the pilot project may continue
17.14past June 30, 2018, with the agreement of the partnership members.
17.15(b) To participate in this pilot project to improve student and school outcomes, a
17.16group of two or more school districts must collaborate with school staff and receive formal
17.17school board approval to form a partnership. The partnership must develop a plan to
17.18provide challenging programmatic options for students, create professional development
17.19opportunities for educators, increase student engagement and connection and challenging
17.20learning opportunities for students, or demonstrate efficiencies in delivering financial and
17.21other services. The plan must establish:
17.22(1) collaborative educational goals and objectives;
17.23(2) strategies and processes to implement those goals and objectives, including a
17.24budget process with periodic expenditure reviews;
17.25(3) valid and reliable measures to evaluate progress in realizing the goals and
17.26objectives;
17.27(4) an implementation timeline; and
17.28(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
17.29schedules, and legal considerations needed to fully implement the plan.
17.30A partnership may invite additional districts to join the partnership during the pilot
17.31project term after notifying the commissioner.
17.32(c) A partnership of interested districts must apply by February 1, 2013, of any year
17.33 to the education commissioner in the form and manner the commissioner determines,
17.34consistent with this section. The application must contain the formal approval adopted by
17.35the school board in each district to participate in the plan.
18.1(d) Notwithstanding other law to the contrary, a participating school district under
18.2this section continues to: receive revenue and maintain its taxation authority; be organized
18.3and governed by an elected school board with general powers under Minnesota Statutes,
18.4section 123B.02; and be subject to employment agreements under Minnesota Statutes,
18.5chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue
18.6to remain employees of the employing school district.
18.7    Subd. 2. Commissioner's role. Interested groups of school districts must submit
18.8a completed application to the commissioner by March 1, 2013, of any year in the form
18.9and manner determined by the commissioner. The education commissioner must convene
18.10an advisory panel composed of a teacher appointed by Education Minnesota, a school
18.11principal appointed by the Minnesota Association of Secondary School Principals, a
18.12school board member appointed by the Minnesota School Boards Association, and a
18.13school superintendent appointed by the Minnesota Association of School Administrators
18.14to advise the commissioner on applicants' qualifications to participate in this pilot project.
18.15The commissioner must select between three and may select up to six qualified applicants
18.16under subdivision 1 by April 1, 2013, of any year to participate in this pilot project,
18.17ensuring an equitable geographical distribution of project participants to the extent
18.18practicable. The commissioner must select only those applicants that fully comply with
18.19the requirements in subdivision 1. The commissioner must terminate a project participant
18.20that fails to effectively implement the goals and objectives contained in its application and
18.21according to its stated timeline.
18.22    Subd. 3. Pilot project evaluation. Participating school districts must submit pilot
18.23project data to the commissioner in the form and manner determined by the commissioner.
18.24The education commissioner must analyze participating districts' progress in realizing
18.25their educational goals and objectives to work together in providing innovative education
18.26programs and activities and sharing resources. The commissioner must include the
18.27analysis of best practices in a report to the legislative committees with jurisdiction over
18.28kindergarten through grade 12 education finance and policy on the efficacy of this pilot
18.29project. The commissioner may shall submit an interim project report at any time by
18.30February 1, 2016, and must submit a final report to the legislature by February 1, 2018
18.31 2019, recommending whether or not to continue or expand the pilot project.

18.32    Sec. 22. Laws 2012, chapter 263, section 1, the effective date, is amended to read:
18.33EFFECTIVE DATE.This section is effective the day following final enactment
18.34and applies to the 2013-2014 through 2017-2018 school years.

19.1    Sec. 23. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
19.2    Subd. 2. General education aid. For general education aid under Minnesota
19.3Statutes, section 126C.13, subdivision 4:

19.4 19.5		$	6,051,766,000 6,851,972,000	.....	2014
19.6 19.7		$	6,370,640,000 6,490,213,000	.....	2015

19.8The 2014 appropriation includes $781,842,000 $780,709,000 for 2013 and
19.9$5,269,924,000 $6,071,263,000 for 2014.
19.10The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and
19.11$5,547,600,000 $5,900,116,000 for 2015.

19.12    Sec. 24. REVISOR'S INSTRUCTION.
19.13In Minnesota Statutes, the revisor of statutes shall change the term "location equity"
19.14to "local optional."
19.15Page 171, delete Article 18, and insert:


19.18    Section 1. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to
19.19read:
19.20    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
19.21(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
19.22of the following grounds:
19.23(1) immoral conduct, insubordination, or conviction of a felony;
19.24(2) conduct unbecoming a teacher which requires the immediate removal of the
19.25teacher from classroom or other duties;
19.26(3) failure without justifiable cause to teach without first securing the written release
19.27of the school board;
19.28(4) gross inefficiency which the teacher has failed to correct after reasonable written
19.29notice;
19.30(5) willful neglect of duty; or
19.31(6) continuing physical or mental disability subsequent to a 12 months leave of
19.32absence and inability to qualify for reinstatement in accordance with subdivision 12.
19.33For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
19.34discriminatory practice described in section 363A.13.
20.1Prior to discharging a teacher under this paragraph, the board must notify the teacher
20.2in writing and state its ground for the proposed discharge in reasonable detail. Within
20.3ten days after receipt of this notification the teacher may make a written request for a
20.4hearing before the board and it shall be granted before final action is taken. The board
20.5may suspend a teacher with pay pending the conclusion of the hearing and determination
20.6of the issues raised in the hearing after charges have been filed which constitute ground for
20.7discharge. If a teacher has been charged with a felony and the underlying conduct that
20.8is the subject of the felony charge is a ground for a proposed immediate discharge, the
20.9suspension pending the conclusion of the hearing and determination of the issues may be
20.10without pay. If a hearing under this paragraph is held, the board must reimburse the teacher
20.11for any salary or compensation withheld if the final decision of the board or the arbitrator
20.12does not result in a penalty to or suspension, termination, or discharge of the teacher.
20.13(b) A board must discharge a continuing-contract teacher, effective immediately,
20.14upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
20.15teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
20.16(c) When a teacher is discharged under paragraph (b) or when the commissioner
20.17makes a final determination of child maltreatment involving a teacher under section
20.18626.556, subdivision 11, the school principal or other person having administrative
20.19control of the school must include in the teacher's employment record the information
20.20contained in the record of the disciplinary action or the final maltreatment determination,
20.21consistent with the definition of public data under section 13.41, subdivision 5, and must
20.22provide the Board of Teaching and the licensing division at the department with the
20.23necessary and relevant information to enable the Board of Teaching and the department's
20.24licensing division to fulfill their statutory and administrative duties related to issuing,
20.25renewing, suspending, or revoking a teacher's license. Information received by the Board
20.26of Teaching or the licensing division at the department under this paragraph is governed
20.27by section 13.41 or other applicable law governing data of the receiving entity. In addition
20.28to the background check required under section 123B.03, a school board or other school
20.29hiring authority must contact the Board of Teaching and the department to determine
20.30whether the teacher's license has been suspended or revoked, consistent with the discharge
20.31and final maltreatment determinations identified in this paragraph.
20.32EFFECTIVE DATE.This section is effective the day following final enactment.

20.33    Sec. 2. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
21.1    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
21.2in paragraph (b), causes for the discharge or demotion of a teacher either during or after
21.3the probationary period must be:
21.4(1) immoral character, conduct unbecoming a teacher, or insubordination;
21.5(2) failure without justifiable cause to teach without first securing the written release
21.6of the school board having the care, management, or control of the school in which the
21.7teacher is employed;
21.8(3) inefficiency in teaching or in the management of a school, consistent with
21.9subdivision 5, paragraph (b);
21.10(4) affliction with active tuberculosis or other communicable disease must be
21.11considered as cause for removal or suspension while the teacher is suffering from such
21.12disability; or
21.13(5) discontinuance of position or lack of pupils.
21.14For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
21.15discriminatory practice described in section 363A.13.
21.16(b) A probationary or continuing-contract teacher must be discharged immediately
21.17upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
21.18teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
21.19(c) When a teacher is discharged under paragraph (b) or when the commissioner
21.20makes a final determination of child maltreatment involving a teacher under section
21.21626.556, subdivision 11, the school principal or other person having administrative
21.22control of the school must include in the teacher's employment record the information
21.23contained in the record of the disciplinary action or the final maltreatment determination,
21.24consistent with the definition of public data under section 13.41, subdivision 5, and must
21.25provide the Board of Teaching and the licensing division at the department with the
21.26necessary and relevant information to enable the Board of Teaching and the department's
21.27licensing division to fulfill their statutory and administrative duties related to issuing,
21.28renewing, suspending, or revoking a teacher's license. Information received by the Board
21.29of Teaching or the licensing division at the department under this paragraph is governed
21.30by section 13.41 or other applicable law governing data of the receiving entity. In addition
21.31to the background check required under section 123B.03, a school board or other school
21.32hiring authority must contact the Board of Teaching and the department to determine
21.33whether the teacher's license has been suspended or revoked, consistent with the discharge
21.34and final maltreatment determinations identified in this paragraph.
21.35EFFECTIVE DATE.This section is effective the day following final enactment.

22.1    Sec. 3. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
22.2    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
22.3school site, or charter school that meets the conditions of section 122A.414 and submits an
22.4application approved by the commissioner is eligible for alternative teacher compensation
22.5revenue.
22.6(b) For school district and intermediate school district applications, the commissioner
22.7must consider only those applications to participate that are submitted jointly by a
22.8district and the exclusive representative of the teachers. The application must contain an
22.9alternative teacher professional pay system agreement that:
22.10(1) implements an alternative teacher professional pay system consistent with
22.11section 122A.414; and
22.12(2) is negotiated and adopted according to the Public Employment Labor Relations
22.13Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
22.14district may enter into a contract for a term of two or four years.
22.15Alternative teacher compensation revenue for a qualifying school district or site in
22.16which the school board and the exclusive representative of the teachers agree to place
22.17teachers in the district or at the site on the alternative teacher professional pay system
22.18equals $260 times the number of pupils enrolled at the district or site on October 1 of
22.19the previous fiscal year. Alternative teacher compensation revenue for a qualifying
22.20intermediate school district must be calculated under section 126C.10, subdivision 34
22.21 subdivision 4, paragraphs (a) and (b).
22.22(c) For a newly combined or consolidated district, the revenue shall be computed
22.23using the sum of pupils enrolled on October 1 of the previous year in the districts entering
22.24into the combination or consolidation. The commissioner may adjust the revenue computed
22.25for a site using prior year data to reflect changes attributable to school closings, school
22.26openings, or grade level reconfigurations between the prior year and the current year.
22.27(d) The revenue is available only to school districts, intermediate school districts,
22.28school sites, and charter schools that fully implement an alternative teacher professional
22.29pay system by October 1 of the current school year.
22.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
22.31and later.

22.32    Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is
22.33amended to read:
22.34    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
22.35district's initial achievement and integration revenue equals the lesser of 100.3 percent of
23.1the district's expenditures under the budget approved by the commissioner under section
23.2124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
23.3revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
23.4units for that year times the ratio of the district's enrollment of protected students for the
23.5previous school year to total enrollment for the previous school year and (2) the greater of
23.6zero or 66 percent of the difference between the district's integration revenue for fiscal
23.7year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
23.8(b) In each year, 0.3 percent of each district's initial achievement and integration
23.9revenue is transferred to the department for the oversight and accountability activities
23.10required under this section and section 124D.861.
23.11EFFECTIVE DATE.This section is effective the day following final enactment
23.12and applies to revenue for fiscal year 2014 and later.

23.13    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is
23.14amended to read:
23.15    Subd. 2. Incentive revenue. (a) An eligible school district's maximum incentive
23.16revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
23.17be A district's incentive revenue equals the lesser of the maximum incentive revenue
23.18or the district's expenditures for implementing a voluntary plan to reduce racial and
23.19economic enrollment disparities through intradistrict and interdistrict activities that have
23.20been approved as a part of the district's achievement and integration plan under the budget
23.21approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
23.22(b) Notwithstanding paragraph (a), a school district that has shown a measurable
23.23reduction in the achievement gap, as measured on assessments with statewide applicability
23.24receives the maximum incentive revenue of $10 per adjusted pupil unit.
23.25EFFECTIVE DATE.This section is effective the day following final enactment
23.26and applies to revenue for fiscal year 2014 and later.

23.27    Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 11, is amended to read:
23.28    Subd. 11. Concurrent enrollment program. For concurrent enrollment programs
23.29under Minnesota Statutes, section 124D.091:

23.30		$	2,000,000	.....	2014
23.31 23.32		$	2,000,000 3,897,000	.....	2015

24.1If the appropriation is insufficient, the commissioner must proportionately reduce
24.2the aid payment to each district.
24.3Any balance in the first year does not cancel but is available in the second year. The
24.4annual base budget for this program is $2,000,000 for fiscal years 2016 and 2017.

24.5    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
24.6    Subd. 15. Early childhood literacy programs. For early childhood literacy
24.7programs under Minnesota Statutes, section 119A.50, subdivision 3:

24.8		$	4,125,000	.....	2014
24.9 24.10		$	4,125,000 4,625,000	.....	2015

24.11Up to $4,125,000 each in the first year and $4,625,000 in the second year is for
24.12leveraging federal and private funding to support AmeriCorps members serving in the
24.13Minnesota Reading Corps program established by ServeMinnesota, including costs
24.14associated with the training and teaching of early literacy skills to children age three to
24.15grade 3 and the evaluation of the impact of the program under Minnesota Statutes, sections
24.16124D.38, subdivision 2 , and 124D.42, subdivision 6. Up to $500,000 in fiscal year 2015
24.17must be used to support (1) the lowest performing schools identified by the Department
24.18of Education using measures of student proficiency and growth, a reduced achievement
24.19gap, and high school graduation rates, and (2) early childhood education programs serving
24.20low income children.
24.21Any balance in the first year does not cancel but is available in the second year.

24.22    Sec. 8. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
24.23(a) The commissioner of education must consult with experts knowledgeable about
24.24secondary and postsecondary career and technical education programs to determine the
24.25content and status of particular career and technical education programs in Minnesota
24.26school districts, including cooperating districts under Minnesota Statutes, 123A.33,
24.27subdivision 2, integration districts, and postsecondary institutions partnering with school
24.28districts or offering courses through PSEO or career and technical programs and the rates
24.29of student participation and completion for these various programs, including: agriculture,
24.30food, and natural resources; architecture and construction; arts, audiovisual technology,
24.31and communications; business management and administration; computer science; family
24.32and consumer science; finance; health science; hospitality and tourism; human services;
24.33information technology; manufacturing; marketing; science, technology, engineering, and
24.34mathematics; and transportation, distribution, and logistics.
25.1(b) To accomplish paragraph (a) and to understand the current role of local school
25.2districts and postsecondary institutions in providing career and technical education
25.3programs, the commissioner of education, in consultation with experts, also must examine
25.4the extent to which secondary and postsecondary education programs offer students a
25.5progression of coordinated, nonduplicative courses that adequately prepare students to
25.6successfully complete a career and technical education program.
25.7(c) The commissioner of education must submit a report by February 1, 2015,
25.8to the education policy and finance committees of the legislature, consistent with this
25.9section, and include information about each district's dedicated equipment, resources, and
25.10relationships with postsecondary institutions and the local business community.
25.11EFFECTIVE DATE.This section is effective the day following final enactment.
25.12Page 178, delete Article 19, and insert:


25.15    Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
25.16125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
25.17    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
25.18restrictive procedures shall maintain and make publicly accessible in an electronic format
25.19on a school or district Web site or make a paper copy available upon request describing a
25.20restrictive procedures plan for children with disabilities that at least:
25.21(1) lists the restrictive procedures the school intends to use;
25.22(2) describes how the school will implement a range of positive behavior strategies
25.23and provide links to mental health services;
25.24(3) describes how the school will provide training on de-escalation techniques,
25.25consistent with section 122A.09, subdivision 4, paragraph (k);
25.26(4) describes how the school will monitor and review the use of restrictive
25.27procedures, including:
25.28(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
25.29clause (5); and
25.30(ii) convening an oversight committee to undertake a quarterly review of the use
25.31of restrictive procedures based on patterns or problems indicated by similarities in the
25.32time of day, day of the week, duration of the use of a procedure, the individuals involved,
25.33or other factors associated with the use of restrictive procedures; the number of times a
25.34restrictive procedure is used schoolwide and for individual children; the number and types
25.35of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
26.1procedures are used in nonemergency situations; the need for additional staff training; and
26.2proposed actions to minimize the use of restrictive procedures; and
26.3(4) (5) includes a written description and documentation of the training staff
26.4completed under subdivision 5.
26.5(b) Schools annually must publicly identify oversight committee members who
26.6must at least include:
26.7(1) a mental health professional, school psychologist, or school social worker;
26.8(2) an expert in positive behavior strategies;
26.9(3) a special education administrator; and
26.10(4) a general education administrator.
26.11    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
26.12by a licensed special education teacher, school social worker, school psychologist,
26.13behavior analyst certified by the National Behavior Analyst Certification Board, a person
26.14with a master's degree in behavior analysis, other licensed education professional,
26.15paraprofessional under section 120B.363, or mental health professional under section
26.16245.4871, subdivision 27 , who has completed the training program under subdivision 5.
26.17(b) A school shall make reasonable efforts to notify the parent on the same day a
26.18restrictive procedure is used on the child, or if the school is unable to provide same-day
26.19notice, notice is sent within two days by written or electronic means or as otherwise
26.20indicated by the child's parent under paragraph (d) (f).
26.21(c) The district must hold a meeting of the individualized education program team,
26.22conduct or review a functional behavioral analysis, review data, consider developing
26.23additional or revised positive behavioral interventions and supports, consider actions to
26.24reduce the use of restrictive procedures, and modify the individualized education program
26.25or behavior intervention plan as appropriate. The district must hold the meeting: within
26.26ten calendar days after district staff use restrictive procedures on two separate school
26.27days within 30 calendar days or a pattern of use emerges and the child's individualized
26.28education program or behavior intervention plan does not provide for using restrictive
26.29procedures in an emergency; or at the request of a parent or the district after restrictive
26.30procedures are used. The district must review use of restrictive procedures at a child's
26.31annual individualized education program meeting when the child's individualized
26.32education program provides for using restrictive procedures in an emergency.
26.33(d) If the individualized education program team under paragraph (c) determines
26.34that existing interventions and supports are ineffective in reducing the use of restrictive
26.35procedures or the district uses restrictive procedures on a child on ten or more school days
26.36during the same school year, the team, as appropriate, either must consult with other
27.1professionals working with the child; consult with experts in behavior analysis, mental
27.2health, communication, or autism; consult with culturally competent professionals;
27.3review existing evaluations, resources, and successful strategies; or consider whether to
27.4reevaluate the child.
27.5(e) At the individualized education program meeting under paragraph (c), the team
27.6must review any known medical or psychological limitations, including any medical
27.7information the parent provides voluntarily, that contraindicate the use of a restrictive
27.8procedure, consider whether to prohibit that restrictive procedure, and document any
27.9prohibition in the individualized education program or behavior intervention plan.
27.10(f) An individualized education program team may plan for using restrictive
27.11procedures and may include these procedures in a child's individualized education
27.12program or behavior intervention plan; however, the restrictive procedures may be used
27.13only in response to behavior that constitutes an emergency, consistent with this section.
27.14The individualized education program or behavior intervention plan shall indicate how the
27.15parent wants to be notified when a restrictive procedure is used.
27.16    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
27.17used only in an emergency. A school that uses physical holding or seclusion shall meet the
27.18following requirements:
27.19(1) physical holding or seclusion is the least intrusive intervention that effectively
27.20responds to the emergency;
27.21(2) physical holding or seclusion is not used to discipline a noncompliant child;
27.22(3) physical holding or seclusion ends when the threat of harm ends and the staff
27.23determines the child can safely return to the classroom or activity;
27.24(4) staff directly observes the child while physical holding or seclusion is being used;
27.25(5) each time physical holding or seclusion is used, the staff person who implements
27.26or oversees the physical holding or seclusion documents, as soon as possible after the
27.27incident concludes, the following information:
27.28(i) a description of the incident that led to the physical holding or seclusion;
27.29(ii) why a less restrictive measure failed or was determined by staff to be
27.30inappropriate or impractical;
27.31(iii) the time the physical holding or seclusion began and the time the child was
27.32released; and
27.33(iv) a brief record of the child's behavioral and physical status;
27.34(6) the room used for seclusion must:
27.35(i) be at least six feet by five feet;
27.36(ii) be well lit, well ventilated, adequately heated, and clean;
28.1(iii) have a window that allows staff to directly observe a child in seclusion;
28.2(iv) have tamperproof fixtures, electrical switches located immediately outside the
28.3door, and secure ceilings;
28.4(v) have doors that open out and are unlocked, locked with keyless locks that
28.5have immediate release mechanisms, or locked with locks that have immediate release
28.6mechanisms connected with a fire and emergency system; and
28.7(vi) not contain objects that a child may use to injure the child or others;
28.8(7) before using a room for seclusion, a school must:
28.9(i) receive written notice from local authorities that the room and the locking
28.10mechanisms comply with applicable building, fire, and safety codes; and
28.11(ii) register the room with the commissioner, who may view that room; and
28.12(8) until August 1, 2015, a school district may use prone restraints with children
28.13age five or older if:
28.14(i) the district has provided to the department a list of staff who have had specific
28.15training on the use of prone restraints;
28.16(ii) the district provides information on the type of training that was provided and
28.17by whom;
28.18(iii) only staff who received specific training use prone restraints;
28.19(iv) each incident of the use of prone restraints is reported to the department within
28.20five working days on a form provided by the department; and
28.21(v) the district, before using prone restraints, must review any known medical or
28.22psychological limitations that contraindicate the use of prone restraints.
28.23The department must collect data on districts' use of prone restraints and publish the data
28.24in a readily accessible format on the department's Web site on a quarterly basis.
28.25(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must
28.26recommend to the commissioner specific and measurable implementation and outcome
28.27goals for reducing the use of restrictive procedures and the commissioner must submit to
28.28the legislature a report on districts' progress in reducing the use of restrictive procedures
28.29that recommends how to further reduce these procedures and eliminate the use of prone
28.30restraints. The statewide plan includes the following components: measurable goals; the
28.31resources, training, technical assistance, mental health services, and collaborative efforts
28.32needed to significantly reduce districts' use of prone restraints; and recommendations
28.33to clarify and improve the law governing districts' use of restrictive procedures. The
28.34commissioner must consult with interested stakeholders when preparing the report,
28.35including representatives of advocacy organizations, special education directors, teachers,
28.36paraprofessionals, intermediate school districts, school boards, day treatment providers,
29.1county social services, state human services department staff, mental health professionals,
29.2and autism experts. By June 30 each year, districts must report summary data on their
29.3use of restrictive procedures to the department, in a form and manner determined by the
29.4commissioner. The summary data must include information about the use of restrictive
29.5procedures, including use of reasonable force under section 121A.582.
29.6    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
29.7(1) engaging in conduct prohibited under section 121A.58;
29.8(2) requiring a child to assume and maintain a specified physical position, activity,
29.9or posture that induces physical pain;
29.10(3) totally or partially restricting a child's senses as punishment;
29.11(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
29.12substance, or spray as punishment;
29.13(5) denying or restricting a child's access to equipment and devices such as walkers,
29.14wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
29.15except when temporarily removing the equipment or device is needed to prevent injury
29.16to the child or others or serious damage to the equipment or device, in which case the
29.17equipment or device shall be returned to the child as soon as possible;
29.18(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
29.19physical abuse under section 626.556;
29.20(7) withholding regularly scheduled meals or water;
29.21(8) denying access to bathroom facilities; and
29.22(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
29.23impairs a child's ability to communicate distress, places pressure or weight on a child's
29.24head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
29.25straddling a child's torso.
29.26    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1, staff
29.27who use restrictive procedures, including paraprofessionals, shall complete training in
29.28the following skills and knowledge areas:
29.29(1) positive behavioral interventions;
29.30(2) communicative intent of behaviors;
29.31(3) relationship building;
29.32(4) alternatives to restrictive procedures, including techniques to identify events and
29.33environmental factors that may escalate behavior;
29.34(5) de-escalation methods;
29.35(6) standards for using restrictive procedures only in an emergency;
29.36(7) obtaining emergency medical assistance;
30.1(8) the physiological and psychological impact of physical holding and seclusion;
30.2(9) monitoring and responding to a child's physical signs of distress when physical
30.3holding is being used;
30.4(10) recognizing the symptoms of and interventions that may cause positional
30.5asphyxia when physical holding is used;
30.6(11) district policies and procedures for timely reporting and documenting each
30.7incident involving use of a restricted procedure; and
30.8(12) schoolwide programs on positive behavior strategies.
30.9(b) The commissioner, after consulting with the commissioner of human services,
30.10must develop and maintain a list of training programs that satisfy the requirements of
30.11paragraph (a). The commissioner also must develop and maintain a list of experts to
30.12help individualized education program teams reduce the use of restrictive procedures.
30.13The district shall maintain records of staff who have been trained and the organization
30.14or professional that conducted the training. The district may collaborate with children's
30.15community mental health providers to coordinate trainings.
30.16    Subd. 6. Behavior supports; reasonable force. (a) School districts are encouraged
30.17to establish effective schoolwide systems of positive behavior interventions and supports.
30.18(b) Nothing in this section or section 125A.0941 precludes the use of reasonable
30.19force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015
30.20school year and later, districts must collect and submit to the commissioner summary
30.21data, consistent with subdivision 3, paragraph (b), on district use of reasonable force
30.22that is consistent with the definition of physical holding or seclusion for a child with a
30.23disability under this section.
30.24EFFECTIVE DATE.This section is effective the day following final enactment.

30.25    Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
30.26amended to read:
30.27    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
30.28later, when a school district provides special instruction and services for a pupil with
30.29a disability as defined in section 125A.02 outside the district of residence, excluding
30.30a pupil for whom an adjustment to special education aid is calculated according to
30.31section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
30.32resident district must be reduced by an amount equal to (1) the actual cost of providing
30.33special instruction and services to the pupil, including a proportionate amount for special
30.34transportation and unreimbursed building lease and debt service costs for facilities used
30.35primarily for special education, plus (2) the amount of general education revenue and
31.1referendum equalization aid attributable to that pupil, calculated using the resident district's
31.2average general education revenue and referendum equalization aid per adjusted pupil
31.3unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
31.4revenue, minus (3) the amount of special education aid for children with a disability
31.5under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
31.6special instruction and services outside the regular classroom for more than 60 percent
31.7of the school day, the amount of general education revenue and referendum equalization
31.8aid, excluding portions attributable to district and school administration, district support
31.9services, operations and maintenance, capital expenditures, and pupil transportation,
31.10attributable to that pupil for the portion of time the pupil receives special instruction
31.11and services outside of the regular classroom, calculated using the resident district's
31.12average general education revenue and referendum equalization aid per adjusted pupil unit
31.13excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
31.14and the serving district's basic skills revenue, elementary sparsity revenue and secondary
31.15sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
31.16served by a cooperative unit without a fiscal agent school district, the general education
31.17revenue and referendum equalization aid attributable to a pupil must be calculated using
31.18the resident district's average general education revenue and referendum equalization aid
31.19excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
31.20revenue. Special education aid paid to the district or cooperative providing special
31.21instruction and services for the pupil must be increased by the amount of the reduction in
31.22the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
31.23and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
31.24expenditures on the resident school district's books of account under sections 123B.75
31.25and 123B.76. If the resident district's special education aid is insufficient to make the full
31.26adjustment, the remaining adjustment shall be made to other state aid due to the district.
31.27    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
31.28(b) to (d), a charter school where more than 30 percent of enrolled students receive special
31.29education and related services, a site approved under section 125A.515, an intermediate
31.30district, a special education cooperative, or a school district that served as the applicant
31.31agency for a group of school districts for federal special education aids for fiscal year
31.322006 may apply to the commissioner for authority to charge the resident district an
31.33additional amount to recover any remaining unreimbursed costs of serving pupils with
31.34a disability. The application must include a description of the costs and the calculations
31.35used to determine the unreimbursed portion to be charged to the resident district. Amounts
31.36approved by the commissioner under this paragraph must be included in the tuition billings
32.1or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
32.2(b) to (d), as applicable.
32.3    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
32.4(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
32.5means the sum of the general education revenue according to section 126C.10, subdivision
32.61, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
32.7(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
32.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
32.9and later.

32.10    Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
32.11amended to read:
32.12    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
32.13the definitions in this subdivision apply.
32.14    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
32.15For the purposes of computing basic revenue pursuant to this section, each child with a
32.16disability shall be counted as prescribed in section 126C.05, subdivision 1.
32.17    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
32.18support services staff providing services to students. Essential personnel may also include
32.19special education paraprofessionals or clericals providing support to teachers and students
32.20by preparing paperwork and making arrangements related to special education compliance
32.21requirements, including parent meetings and individualized education programs. Essential
32.22personnel does not include administrators and supervisors.
32.23    (d) "Average daily membership" has the meaning given it in section 126C.05.
32.24    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
32.251.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
32.26program growth factor for the previous year for fiscal year 2018 and later.
32.27(f) "Nonfederal special education expenditure" means all direct expenditures that
32.28are necessary and essential to meet the district's obligation to provide special instruction
32.29and services to children with a disability according to sections 124D.454, 125A.03 to
32.30125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
32.31the department under section 125A.75, subdivision 4, excluding expenditures:
32.32(1) reimbursed with federal funds;
32.33(2) reimbursed with other state aids under this chapter;
32.34(3) for general education costs of serving students with a disability;
32.35(4) for facilities;
33.1(5) for pupil transportation; and
33.2(6) for postemployment benefits.
33.3(g) "Old formula special education expenditures" means expenditures eligible for
33.4revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
33.5    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
33.6for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
33.7fringe benefits of one-to-one instructional and behavior management aides and one-to-one
33.8licensed, certified professionals assigned to a child attending the academy, if the aides or
33.9professionals are required by the child's individualized education program.
33.10(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
33.112014 and 2.27 percent for fiscal year 2015.
33.12(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
33.13for fiscal year 2015.
33.14(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
33.15for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
33.16aid increase limit for the previous fiscal year and $40.
33.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
33.18and later.

33.19    Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
33.20    Subd. 2. Special education initial aid. The special education initial aid equals the
33.21sum of the following amounts computed using current year data:
33.22    (1) 68 percent of the salary of each essential person employed in the district's program
33.23for children with a disability during the fiscal year, whether the person is employed by one
33.24or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
33.25    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
33.26for the Blind, 68 percent of the salary of each one to one one-to-one instructional and
33.27behavior management aide and one-to-one licensed, certified professional assigned to
33.28a child attending the academy, if the aides or professionals are required by the child's
33.29individualized education program;
33.30    (3) for special instruction and services provided to any pupil by contracting with
33.31public, private, or voluntary agencies other than school districts, in place of special
33.32instruction and services provided by the district, 52 percent of the difference between
33.33the amount of the contract and the general education revenue, excluding basic skills
33.34revenue and alternative teacher compensation revenue, and referendum equalization aid
33.35attributable to a pupil, calculated using the resident district's average general education
34.1revenue and referendum equalization aid per adjusted pupil unit for the fraction of the
34.2school day the pupil receives services under the contract. This includes children who
34.3are residents of the state, receive services under this subdivision and subdivision 1, and
34.4are placed in a care and treatment facility by court action in a state that does not have a
34.5reciprocity agreement with the commissioner under section 125A.155 as provided for in
34.6section 125A.79, subdivision 8;
34.7    (4) for special instruction and services provided to any pupil by contracting for
34.8services with public, private, or voluntary agencies other than school districts, that are
34.9supplementary to a full educational program provided by the school district, 52 percent of
34.10the amount of the contract for that pupil;
34.11    (5) for supplies and equipment purchased or rented for use in the instruction of
34.12children with a disability, an amount equal to 47 percent of the sum actually expended by
34.13the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
34.14not to exceed an average of $47 in any one school year for each child with a disability
34.15receiving instruction;
34.16    (6) for fiscal years 1997 and later, special education base revenue shall include
34.17amounts under clauses (1) to (5) for special education summer programs provided during
34.18the base year for that fiscal year;
34.19    (7) the cost of providing transportation services for children with disabilities under
34.20section 123B.92, subdivision 1, paragraph (b), clause (4); and
34.21    (8) the district's transition-disabled program initial aid according to section
34.22124D.454, subdivision 3 .
34.23    The department shall establish procedures through the uniform financial accounting
34.24and reporting system to identify and track all revenues generated from third-party billings
34.25as special education revenue at the school district level; include revenue generated from
34.26third-party billings as special education revenue in the annual cross-subsidy report; and
34.27exclude third-party revenue from calculation of excess cost aid to the districts.
34.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
34.29and later.

34.30    Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is
34.31amended to read:
34.32    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
34.33special education initial aid equals the sum of:
34.34(1) the lesser least of 62 percent of the district's old formula special education
34.35expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
35.1percent of the district's nonfederal special education expenditures for the prior year,
35.2excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
35.3following amounts, computed using prior fiscal year data, and the program growth factor:
35.4(i) the product of the district's average daily membership served and the sum of:
35.5(A) $450; plus
35.6(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
35.7who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
35.8who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
35.9(C) .008 times the district's average daily membership served; plus
35.10(ii) $10,400 times the December 1 child count for the primary disability areas of
35.11autism spectrum disorders, developmental delay, and severely multiply impaired; plus
35.12(iii) $18,000 times the December 1 child count for the primary disability areas of
35.13deaf and hard-of-hearing and emotional or behavioral disorders; plus
35.14(iv) $27,000 times the December 1 child count for the primary disability areas of
35.15developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
35.16physically impaired, visually impaired, and deafblind; plus
35.17(2) the cost of providing transportation services for children with disabilities under
35.18section 123B.92, subdivision 1, paragraph (b), clause (4).
35.19EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
35.20and later.

35.21    Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is
35.22amended to read:
35.23    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
35.24subsidy reduction aid for a school district, not including a charter school, equals the
35.25lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
35.26daily membership served or (b) the sum of the product of the cross subsidy reduction aid
35.27percentage, the district's average daily membership served, and the sum of:
35.28(1) $450; plus
35.29(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
35.30who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
35.31who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
35.32(3) .008 times the district's average daily membership served; plus the product of the
35.33cross subsidy aid percentage and the sum of:
35.34(i) $10,100 times the December 1 child count for the primary disability areas of
35.35autism spectrum disorders, developmental delay, and severely multiply impaired; plus
36.1(ii) $17,500 times the December 1 child count for the primary disability areas of
36.2deaf and hard-of-hearing and emotional or behavioral disorders; plus
36.3(iii) $26,000 times the December 1 child count for the primary disability areas of
36.4developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
36.5physically impaired, visually impaired, and deafblind.
36.6EFFECTIVE DATE.This section is effective the day following final enactment
36.7and applies to revenue for fiscal year 2014 and later.

36.8    Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is
36.9amended to read:
36.10    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
36.11district's special education aid equals the sum of the district's special education initial aid
36.12under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
36.13the district's excess cost aid under section 125A.79, subdivision 7.
36.14(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
36.15the district's special education initial aid under subdivision 2a and the district's excess cost
36.16aid under section 125A.79, subdivision 5.
36.17(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
36.18a school district must not exceed the sum of the special education aid the district would
36.19have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
36.20and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
36.21127A.47, subdivision 7 , and the product of the district's average daily membership served
36.22and the special education aid increase limit.
36.23(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
36.24aid for a school district must not exceed the sum of: (i) the product of the district's average
36.25daily membership served and the special education aid increase limit and (ii) the product
36.26of the sum of the special education aid the district would have received for fiscal year 2016
36.27under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
36.28to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
36.29the district's average daily membership served for the current fiscal year to the district's
36.30average daily membership served for fiscal year 2016, and the program growth factor.
36.31(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
36.32aid for a school district, not including a charter school, must not be less than the lesser of
36.33(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
36.34product of the sum of the special education aid the district would have received for fiscal
36.35year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
37.1according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
37.2ratio of the district's adjusted daily membership for the current fiscal year to the district's
37.3average daily membership for fiscal year 2016, and the program growth factor.
37.4EFFECTIVE DATE.This section is effective the day following final enactment
37.5and applies to revenue for fiscal year 2014 and later.

37.6    Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
37.7amended to read:
37.8    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
37.9subdivision apply.
37.10    (a) "Unreimbursed old formula special education expenditures" means:
37.11    (1) old formula special education expenditures for the prior fiscal year; minus
37.12    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
37.13125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
37.14section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
37.15initial aid under section 125A.76, subdivision 2a; minus
37.16(3) the amount of general education revenue, excluding local optional revenue, plus
37.17local optional aid and referendum equalization aid for the prior fiscal year attributable
37.18to pupils receiving special instruction and services outside the regular classroom for
37.19more than 60 percent of the school day for the portion of time the pupils receive special
37.20instruction and services outside the regular classroom, excluding portions attributable to
37.21district and school administration, district support services, operations and maintenance,
37.22capital expenditures, and pupil transportation.
37.23(b) "Unreimbursed nonfederal special education expenditures" means:
37.24(1) nonfederal special education expenditures for the prior fiscal year; minus
37.25(2) special education initial aid under section 125A.76, subdivision 2a; minus
37.26(3) for fiscal year 2016 and later, the amount of general education revenue and
37.27referendum equalization aid for the prior fiscal year attributable to pupils receiving
37.28special instruction and services outside the regular classroom for more than 60 percent of
37.29the school day for the portion of time the pupils receive special instruction and services
37.30outside of the regular classroom, excluding portions attributable to district and school
37.31administration, district support services, operations and maintenance, capital expenditures,
37.32and pupil transportation.
37.33    (c) "General revenue" for a school district means the sum of the general education
37.34revenue according to section 126C.10, subdivision 1, excluding alternative teacher
37.35compensation revenue, minus transportation sparsity revenue minus, local optional
38.1revenue, and total operating capital revenue. "General revenue" for a charter school means
38.2the sum of the general education revenue according to section 124D.11, subdivision 1, and
38.3transportation revenue according to section 124D.11, subdivision 2, excluding alternative
38.4teacher compensation revenue, minus referendum equalization aid minus, transportation
38.5sparsity revenue minus, and operating capital revenue.
38.6EFFECTIVE DATE.This section is effective the day following final enactment
38.7and applies to revenue for fiscal year 2014 and later.

38.8    Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
38.9amended to read:
38.10    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
38.11 excess cost aid equals the greater of:
38.12    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
38.13special education expenditures and (ii) 7.0 percent of the district's general revenue;
38.14    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
38.15special education expenditures and (ii) 2.5 percent of the district's general revenue; or
38.16    (3) zero.
38.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
38.18and later.

38.19    Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
38.20amended to read:
38.21    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
38.22services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
38.23treatment facility by court action in a state that does not have a reciprocity agreement with
38.24the commissioner under section 125A.155, the resident school district shall submit the
38.25balance receive special education out-of-state tuition aid equal to the amount of the tuition
38.26bills, minus (1) the general education revenue, excluding basic skills revenue and the local
38.27optional levy attributable to the pupil, calculated using the resident district's average
38.28general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
38.29attributable to the pupil, calculated using the resident district's average general education
38.30revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
38.31education contracted services initial revenue aid attributable to the pupil.
38.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
38.33and later.

39.1    Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
39.2    Subd. 8. Special education paperwork cost savings. (a) For the contract to
39.3customize a statewide online reporting system and effect special education paperwork
39.4cost savings:

39.5

$

1,763,000

.....

2014

39.6For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and
39.7must be expended according to this subdivision for online due process reporting.
39.8(b) To ensure a strong focus on outcomes for children with disabilities informs
39.9federal and state compliance and accountability requirements and to increase opportunities
39.10for special educators and related-services providers to focus on teaching children with
39.11disabilities, the commissioner must customize a streamlined, user-friendly statewide
39.12online system, with a single model online form, for effectively and efficiently collecting
39.13and reporting required special education-related data to individuals with a legitimate
39.14educational interest and who are authorized by law to access the data.
39.15(c) The commissioner must consult with qualified experts, including information
39.16technology specialists, licensed special education teachers and directors of special
39.17education, related-services providers, third-party vendors, a designee of the commissioner
39.18of human services, parents of children with disabilities, representatives of advocacy groups
39.19representing children with disabilities, and representatives of school districts and special
39.20education cooperatives on integrating, field testing, customizing, and sustaining this simple,
39.21easily accessible, efficient, and effective online data system for uniform statewide reporting
39.22of required due process compliance data. Among other outcomes, the system must:
39.23    (1) reduce special education teachers' paperwork burden and thereby increase the
39.24teachers' opportunities to focus on teaching children;
39.25(2) to the extent authorized by chapter 13 or other applicable state or federal law
39.26governing access to and dissemination of educational records, provide for efficiently
39.27and effectively transmitting the records of all transferring children with disabilities,
39.28including highly mobile and homeless children with disabilities, among others, and avoid
39.29fragmented service delivery;
39.30(3) address language and other barriers and disparities that prevent parents from
39.31understanding and communicating information about the needs of their children with
39.32disabilities; and
39.33(4) help continuously improve the interface among the online systems serving
39.34children with disabilities in order to maintain and reinforce the children's ability to learn.
39.35(d) The commissioner must use the federal Office of Special Education Programs
39.36model forms for the (1) individualized education program, (2) notice of procedural
40.1safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate
40.2and customize a state-sponsored universal special education online case management
40.3system, consistent with the requirements of state law and this subdivision for customizing
40.4a statewide online reporting system. The commissioner must use a request for proposal
40.5process to contract for the technology and software needed for customizing the online
40.6system in order for the system to be fully functional, consistent with the requirements of
40.7this subdivision. This online system must be made available to school districts and charter
40.8schools without charge beginning in the 2015-2016 school year. All actions in which
40.9data in the system are entered, updated, accessed, or shared or disseminated outside of
40.10the system, must be recorded in a data audit trail. The audit trail must identify the user
40.11responsible for the action, and the date and time the action occurred. Data contained in
40.12the audit trail maintain the same classification as the underlying data that was affected by
40.13the action, and may be accessed by the responsible authority at any time for purposes of
40.14auditing the system's user activity and security safeguards.
40.15(e) Consistent with this subdivision, the commissioner must establish a public
40.16Internet Web interface to provide information to educators, parents, and the public about
40.17the form and content of required special education reports, to respond to queries from
40.18educators, parents, and the public about specific aspects of special education reports and
40.19reporting, and to use the information garnered from the interface to streamline and revise
40.20special education reporting on the online system under this subdivision. The public Internet
40.21Web interface must not provide access to the educational records of any individual child.
40.22(f) The commissioner annually by February 1 must submit to the legislature a report
40.23on the status, recent changes, and sustainability of the online system under this subdivision.
40.24EFFECTIVE DATE.This section is effective the day following final enactment.

40.25    Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE
40.26RECOMMENDATIONS.
40.27The commissioner of education must use the expedited rulemaking process under
40.28Minnesota Statutes, section 14.389, including subdivision 5, to make the specific rule
40.29changes recommended by the Special Education Case Load and Rule Alignment Task
40.30Force in its 2014 report entitled "Recommendations for Special Education Case Load and
40.31Rule Alignment" submitted to the legislature on February 15, 2014.
40.32EFFECTIVE DATE.This section is effective the day following final enactment.

40.33    Sec. 13. APPROPRIATION.
41.1    Subdivision 1. Department of Education. The sums indicated in this section are
41.2appropriated from the general fund to the Department of Education for the fiscal years
41.3designated.
41.4    Subd. 2. Department assistance. For the commissioner of education to assist
41.5school districts in meeting the needs of children who have experienced a high use of prone
41.6restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

41.7

$

250,000

.....

2015

41.8The commissioners of education and human services, or their designees, must
41.9discuss coordinating use of funds and personnel available for this purpose within their
41.10respective departments. This is a onetime appropriation.
41.11Page 194, delete Article 20, and insert:


41.14    Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
41.15    Subdivision 1. Schools may be jointly operated. Two or more school districts may
41.16agree to jointly operate a secondary facility. The districts may choose to operate the
41.17facility according to a joint powers agreement under section 123A.78 or 471.59.
41.18    Subd. 2. Expanded program offerings. A jointly operated secondary program
41.19seeking funding under section 123A.485 must demonstrate to the commissioner's
41.20satisfaction that the jointly operated program provides enhanced learning opportunities and
41.21broader curriculum offerings to the students attending that program. The commissioner
41.22must approve or disapprove a cooperative secondary program within 60 days of receipt of
41.23an application.
41.24    Subd. 3. Transfer of employees. If an employee is transferred between two
41.25employer members of the joint powers agreement under this section, the employee's
41.26length of service under section 122A.40, subdivision 5, remains uninterrupted. The
41.27employee shall receive credit on the receiving district's salary schedule for the employee's
41.28educational attainment and years of continuous service in the sending district, or shall
41.29receive a comparable salary, whichever is greater. The employee shall receive credit for
41.30accrued sick leave and rights to severance benefits as if the employee had been employed
41.31by the receiving district during the employee's years of employment in the sending district.
41.32    Subd. 4. Revenue. An approved program that is jointly operated under this section
41.33is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
41.34123A.44 to 123A.446.
42.1    Subd. 5. Duty to maintain elementary and secondary schools met. A school
42.2district operating a joint facility under this section meets the requirements of section
42.3123A.64.
42.4    Subd. 6. Estimated market value limit exclusion. Bonds for a cooperative facility
42.5operated under this section issued by a member school district are not subject to the net
42.6debt limit under section 475.53, subdivision 4.
42.7    Subd. 7. Allocation of levy authority for joint facility. For purposes of determining
42.8each member district's school levy, a jointly operated secondary program may allocate
42.9program costs to each member district according to the joint powers agreement and each
42.10member district may include those costs in its tax levy. The joint powers agreement may
42.11choose to allocate costs on any basis adopted as part of the joint powers agreement.
42.12    Subd. 8. Effect of consolidation. The joint powers agreement may allow member
42.13school districts that choose to consolidate to continue to certify levies separately based on
42.14each component district's characteristics.
42.15    Subd. 9. Bonds. A joint powers district formed under this section may issue bonds
42.16according to section 123A.78 or its member districts may issue bonds individually after
42.17complying with this subdivision. The joint powers board must submit the project for
42.18review and comment under section 123B.71. The joint powers board must hold a hearing
42.19on the proposal. If the bonds are not issued under section 123A.78, each member district
42.20of the joint powers district must submit the question of authorizing borrowing of funds for
42.21the project to the voters of the district at a special election. The question submitted shall
42.22state the total amount of funding needed from that district. The member district may issue
42.23the bonds according to chapter 475 and certify the levy required by section 475.61 only if
42.24a majority of those voting on the question in that district vote in the affirmative and only
42.25after the board has adopted a resolution pledging the full faith and credit of that unit. The
42.26resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
42.27shortages that, together with other funds available, would allow the member school board
42.28to pay the principal and interest on the obligations. The clerk of the joint powers board
42.29must certify the vote of any bond elections to the commissioner. Bonds issued under this
42.30section first qualify for debt service equalization aid in fiscal year 2018.
42.31    Subd. 10. Election. A district entering into a joint powers agreement under this
42.32section may conduct a referendum seeking approval for a new facility. This election may
42.33be held separately or at the same time as a bond election under subdivision 9. If the
42.34election is held at the same time, the questions may be asked separately or as a conjunctive
42.35question. The question must be approved by a majority of those voting on the question.
43.1If asked separately and the question fails, a district may not proceed with the sale of
43.2bonds according to subdivision 9.
43.3EFFECTIVE DATE.This section is effective the day following final enactment.

43.4    Sec. 2. Minnesota Statutes 2012, section 123A.485, is amended to read:
43.5123A.485 CONSOLIDATION TRANSITION REVENUE AID.
43.6    Subdivision 1. Eligibility and use. A district that operates a cooperative facility
43.7under section 123A.482 or that has been reorganized after June 30, 1994, under section
43.8123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
43.9 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
43.10 aid may only be used according to this section. Revenue must be used for the following
43.11purposes and may be distributed among these purposes at the discretion of the district or
43.12the governing board of the cooperative facility:
43.13(1) to offer early retirement incentives as provided by section 123A.48, subdivision
43.1423 ;
43.15(2) to reduce operating debt as defined in section 123B.82;
43.16(3) to enhance learning opportunities for students in the reorganized district; and
43.17(4) to repay building debt; or
43.18(5) for other costs incurred in the reorganization.
43.19Revenue received and utilized under clause (3) or (4) (5) may be expended for
43.20operating, facilities, and/or equipment.
43.21    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $300 times the
43.22number of resident adjusted pupil units in the newly created cooperative facility under
43.23section 123A.482 or the consolidated district in the year of consolidation and $100 times
43.24the number of resident pupil units in the first year following the year of consolidation
43.25 under section 123A.48. The number of pupil units used to calculate aid in either year
43.26shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
43.27consolidating July 1, 1995, and thereafter A district may receive aid under this section for
43.28not more than five years except as provided in subdivision 4.
43.29(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
43.30any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
43.31districts the full amount of aid earned, the department must first pay the districts in the first
43.32year following the year of consolidation the full amount of aid earned and distribute any
43.33remaining funds to the newly created districts in the first year of consolidation.
44.1    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
44.2of the district under section 123A.48, subdivision 23, the district may levy the difference
44.3over a period of time not to exceed three years.
44.4    Subd. 4. New districts. If a district enters into a cooperative secondary facilities
44.5program or consolidates with another district that has received aid under section 123A.39,
44.6subdivision 3 , or 123A.485 for a combination or consolidation taking effect within
44.7six years of the effective date of the new consolidation or the start of the cooperative
44.8secondary facilities program, only the pupil units in the district or districts not previously
44.9 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
44.10two or more districts consolidate and all districts received aid under subdivision 2 for a
44.11consolidation taking effect within six years of the effective date of the new consolidation,
44.12only one quarter of the pupil units in the newly created district must be used to determine
44.13aid under subdivision 2.
44.14EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017
44.15and later.

44.16    Sec. 3. Minnesota Statutes 2012, section 123A.64, is amended to read:
44.17123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
44.18SCHOOLS.
44.19Each district must maintain classified elementary and secondary schools, grades 1
44.20through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
44.21made an agreement with another district or districts as provided in sections 123A.30,
44.22123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
44.23grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
44.24123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
44.25123A.32 must operate a school with the number of grades required by those sections. A
44.26district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
44.27has received a grant under sections 123A.441 to 123A.446 must operate a school for the
44.28grades not included in the agreement, but not fewer than three grades.

44.29    Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
44.30amended to read:
44.31    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
44.32revenue of a district is defined as follows:
45.1    (1) the amount needed to produce between five and six percent in excess of the
45.2amount needed to meet when due the principal and interest payments on the obligations
45.3of the district for eligible projects according to subdivision 2, including the amounts
45.4necessary for repayment of energy loans according to section 216C.37 or sections 298.292
45.5to 298.298, debt service loans and capital loans, lease purchase payments under section
45.6126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
45.75 , paragraph (a), minus
45.8    (2) the amount of debt service excess levy reduction for that school year calculated
45.9according to the procedure established by the commissioner.
45.10    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
45.11    (1) obligations under section 123B.61;
45.12    (2) the part of debt service principal and interest paid from the taconite environmental
45.13protection fund or Douglas J. Johnson economic protection trust;
45.14    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
45.15amended by Laws 1992, chapter 499, article 5, section 24; and
45.16    (4) obligations under section 123B.62; and
45.17    (5) obligations equalized under section 123B.535.
45.18    (c) For purposes of this section, if a preexisting school district reorganized under
45.19sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
45.20of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
45.21service equalization aid must be computed separately for each of the preexisting districts.
45.22    (d) For purposes of this section, the adjusted net tax capacity determined according
45.23to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
45.24generally exempted from ad valorem taxes under section 272.02, subdivision 64.
45.25EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

45.26    Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is
45.27amended to read:
45.28    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
45.29district equals the sum of the first tier equalized debt service levy and the second tier
45.30equalized debt service levy.
45.31(b) A district's first tier equalized debt service levy equals the district's first tier debt
45.32service equalization revenue times the lesser of one or the ratio of:
45.33(1) the quotient derived by dividing the adjusted net tax capacity of the district for
45.34the year before the year the levy is certified by the adjusted pupil units in the district for
45.35the school year ending in the year prior to the year the levy is certified; to
46.1(2) $3,550 $4,970.
46.2(c) A district's second tier equalized debt service levy equals the district's second tier
46.3debt service equalization revenue times the lesser of one or the ratio of:
46.4(1) the quotient derived by dividing the adjusted net tax capacity of the district for
46.5the year before the year the levy is certified by the adjusted pupil units in the district for
46.6the school year ending in the year prior to the year the levy is certified; to
46.7(2) $7,900 $8,000.
46.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
46.9and later.

46.10    Sec. 6. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
46.11    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
46.12disaster debt service revenue of a district is defined as the amount needed to produce
46.13between five and six percent in excess of the amount needed to meet when due the
46.14principal and interest payments on the obligations of the district that would otherwise
46.15qualify under section 123B.53 under the following conditions:
46.16(1) the district was impacted by a natural disaster event or area occurring January
46.171, 2005, or later, as declared by the President of the United States of America, which is
46.18eligible for Federal Emergency Management Agency payments;
46.19(2) the natural disaster caused $500,000 or more in damages to school district
46.20buildings; and
46.21(3) the repair and replacement costs are not covered by insurance payments or
46.22Federal Emergency Management Agency payments.
46.23(b) For purposes of this section, the adjusted net tax capacity equalizing factor
46.24equals the quotient derived by dividing the total adjusted net tax capacity of all school
46.25districts in the state for the year before the year the levy is certified by the total number of
46.26adjusted pupil units in the state for the year prior to the year the levy is certified.
46.27    (c) For purposes of this section, the adjusted net tax capacity determined according
46.28to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
46.29generally exempted from ad valorem taxes under section 272.02, subdivision 64.
46.30    Subd. 2. Notification. A district eligible for natural disaster debt service
46.31equalization revenue under subdivision 1 must notify the commissioner of the amount of
46.32its intended natural disaster debt service revenue calculated under subdivision 1 for all
46.33bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
47.1    Subd. 3. Natural disaster debt service equalization revenue. The debt service
47.2equalization revenue of a district equals the greater of zero or the eligible debt service
47.3revenue, minus the greater of zero or the difference between:
47.4(1) the amount raised by a levy of ten percent times the adjusted net tax capacity
47.5of the district; and
47.6(2) the district's eligible debt service revenue under section 123B.53.
47.7    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
47.8natural disaster debt service levy equals the district's natural disaster debt service
47.9equalization revenue times the lesser of one or the ratio of:
47.10(1) the quotient derived by dividing the adjusted net tax capacity of the district for
47.11the year before the year the levy is certified by the adjusted pupil units in the district for
47.12the school year ending in the year prior to the year the levy is certified; to
47.13(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
47.14    Subd. 5. Natural disaster debt service equalization aid. A district's natural
47.15disaster debt service equalization aid equals the difference between the district's natural
47.16disaster debt service equalization revenue and the district's equalized natural disaster
47.17debt service levy.
47.18    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
47.19service equalization aid must be paid according to section 127A.45, subdivision 10.
47.20EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
47.21revenue for fiscal year 2017 and later.

47.22    Sec. 7. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
47.23123B.54 DEBT SERVICE APPROPRIATION.
47.24    (a) The amount necessary to make debt service equalization aid payments under
47.25section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
47.26the commissioner of education.
47.27    (b) The appropriations in paragraph (a) must be reduced by the amount of any
47.28money specifically appropriated for the same purpose in any year from any state fund.
47.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
47.30and later.

47.31    Sec. 8. Minnesota Statutes 2012, section 123B.57, subdivision 6, is amended to read:
47.32    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may be
47.33used only for approved expenditures necessary for the correction of fire and life safety
48.1hazards; design, purchase, installation, maintenance, and inspection of fire protection and
48.2alarm equipment; purchase or construction of appropriate facilities for the storage of
48.3combustible and flammable materials; inventories and facility modifications not related
48.4to a remodeling project to comply with lab safety requirements under section 121A.31;
48.5inspection, testing, repair, removal or encapsulation, and disposal of asbestos-containing
48.6building materials; cleanup and disposal of polychlorinated biphenyls; cleanup and
48.7disposal of hazardous and infectious wastes; cleanup, removal, disposal, and repairs
48.8related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil,
48.9and special fuel, as defined in section 296A.01; correction of occupational safety and
48.10health administration regulated hazards; indoor air quality inspections, investigations, and
48.11testing; mold abatement; upgrades or replacement of mechanical ventilation systems
48.12to meet American Society of Heating, Refrigerating and Air Conditioning Engineers
48.13standards and State Mechanical Code; design, materials, and installation of local exhaust
48.14ventilation systems, including required make-up air for controlling regulated hazardous
48.15substances; correction of Department of Health Food Code violations; correction of
48.16swimming pool hazards excluding depth correction; playground safety inspections,
48.17repair of unsafe outdoor playground equipment, and the installation of impact surfacing
48.18materials; bleacher repair or rebuilding to comply with the order of a building code
48.19inspector under section 326B.112; testing and mitigation of elevated radon hazards; lead
48.20testing; copper in water testing; cleanup after major weather-related disasters or flooding;
48.21reduction of excessive organic and inorganic levels in wells and capping of abandoned
48.22wells; installation and testing of boiler backflow valves to prevent contamination of
48.23potable water; vaccinations, titers, and preventative supplies for bloodborne pathogen
48.24compliance; costs to comply with the Janet B. Johnson Parents' Right to Know Act;
48.25automated external defibrillators and other emergency plan equipment and supplies
48.26specific to the district's emergency action plan; compliance with the National Emission
48.27Standards for Hazardous Air Pollutants for school generators established by the
48.28United States Environmental Protection Agency; and health, safety, and environmental
48.29management costs associated with implementing the district's health and safety program
48.30including costs to establish and operate safety committees, in school buildings or property
48.31owned or being acquired by the district. Testing and calibration activities are permitted for
48.32existing mechanical ventilation systems at intervals no less than every five years.
48.33(b) For fiscal years 2015 through 2017, a school district must not include expenses
48.34related to emission compliance projects for school generators in its health and safety
48.35revenue unless it reduces its approved spending on other qualified health and safety
48.36projects by the same amount.
49.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
49.2and later.

49.3    Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
49.4    Subd. 8. Review and comment. A school district, a special education cooperative,
49.5or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
49.6initiate an installment contract for purchase or a lease agreement, hold a referendum for
49.7bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
49.8facility that requires an expenditure in excess of $500,000 per school site if it has a capital
49.9loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
49.10loan outstanding, prior to review and comment by the commissioner. The commissioner
49.11may exempt A facility addition, maintenance project, or remodeling project funded only
49.12with general education aid and levy revenue, deferred maintenance revenue, alternative
49.13facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
49.14proceeds, or health and safety revenue is exempt from this provision after reviewing a
49.15written request from a school district describing the scope of work. A capital project under
49.16section 123B.63 addressing only technology is exempt from this provision if the district
49.17submits a school board resolution stating that funds approved by the voters will be used
49.18only as authorized in section 126C.10, subdivision 14. A school board shall not separate
49.19portions of a single project into components to avoid the requirements of this subdivision.

49.20    Sec. 10. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
49.21    Subd. 9. Information required. A school board proposing to construct, expand,
49.22or remodel a facility described in that requires a review and comment under subdivision
49.238 shall submit to the commissioner a proposal containing information including at least
49.24the following:
49.25(1) the geographic area and population to be served, preschool through grade 12
49.26student enrollments for the past five years, and student enrollment projections for the
49.27next five years;
49.28(2) a list of existing facilities by year constructed, their uses, and an assessment of
49.29the extent to which alternate facilities are available within the school district boundaries
49.30and in adjacent school districts;
49.31(3) a list of the specific deficiencies of the facility that demonstrate the need for a
49.32new or renovated facility to be provided, the process used to determine the deficiencies, a
49.33list of those deficiencies that will and will not be addressed by the proposed project, and a
50.1list of the specific benefits that the new or renovated facility will provide to the students,
50.2teachers, and community users served by the facility;
50.3(4) the relationship of the project to any priorities established by the school district,
50.4educational cooperatives that provide support services, or other public bodies in the
50.5service area;
50.6(5) a description of the pedestrian, bicycle, and transit connections between the
50.7school and nearby residential areas that make it easier for children, teachers, and parents
50.8to get to the school by walking, bicycling, and taking transit;
50.9(6) a specification of how the project maximizes the opportunity for cooperative use
50.10of existing park, recreation, and other public facilities and whether and how the project
50.11will increase collaboration with other governmental or nonprofit entities;
50.12(7) (4) a description of the project, including the specification of site and outdoor
50.13space acreage and square footage allocations for classrooms, laboratories, and support
50.14spaces; estimated expenditures for the major portions of the project; and the dates the
50.15project will begin and be completed;
50.16(8) (5) a specification of the source of financing the project, including applicable
50.17statutory citations; the scheduled date for a bond issue or school board action; a schedule
50.18of payments, including debt service equalization aid; and the effect of a bond issue on
50.19local property taxes by the property class and valuation;
50.20(9) an analysis of how the proposed new or remodeled facility will affect school
50.21district operational or administrative staffing costs, and how the district's operating budget
50.22will cover any increased operational or administrative staffing costs;
50.23(10) a description of the consultation with local or state transportation officials
50.24on multimodal school site access and safety issues, and the ways that the project will
50.25address those issues;
50.26(11) a description of how indoor air quality issues have been considered and a
50.27certification that the architects and engineers designing the facility will have professional
50.28liability insurance;
50.29(12) as required under section 123B.72, for buildings coming into service after July 1,
50.302002, a certification that the plans and designs for the extensively renovated or new facility's
50.31heating, ventilation, and air conditioning systems will meet or exceed code standards; will
50.32provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
50.33will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
50.34(13) a specification of any desegregation requirements that cannot be met by any
50.35other reasonable means;
51.1(14) a specification of how the facility will utilize environmentally sustainable
51.2school facility design concepts;
51.3(15) a description of how the architects and engineers have considered the American
51.4National Standards Institute Acoustical Performance Criteria, Design Requirements
51.5and Guidelines for Schools of the maximum background noise level and reverberation
51.6times; and
51.7    (16) any existing information from the relevant local unit of government about the
51.8cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
51.9roads, and sidewalks.
51.10    (6) documents obligating the school district and contractors to comply with items (i)
51.11to (vii) in planning and executing the project:
51.12    (i) section 471.346 governing municipal contracts;
51.13    (ii) sustainable design;
51.14    (iii) school facility commissioning under section 123B.72 certifying the plans and
51.15designs for the heating, ventilating, air conditioning, and air filtration for an extensively
51.16renovated or new facility meet or exceed current code standards, including the ASHRAE
51.17air filtration standard 52.1;
51.18    (iv) American National Standards Institute Acoustical Performance Criteria, Design
51.19Requirements and Guidelines for Schools on maximum background noise level and
51.20reverberation times;
51.21    (v) State Fire Code;
51.22    (vi) chapter 326B governing building codes; and
51.23    (vii) consultation with affected government units about the impact of the project
51.24on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic,
51.25access to mass transit, and safe access for pedestrians and cyclists.

51.26    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
51.27amended to read:
51.28    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
51.29pursuant to subdivision 1 must be made prior to the reductions in clause (2).
51.30(2) Notwithstanding any other law to the contrary, districts that have revenue
51.31pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
51.32under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
51.33to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
51.34severed mineral values must reduce the levies authorized by this chapter and chapters
51.35120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
52.1previous year's revenue specified under this clause and the amount attributable to the same
52.2production year distributed to the cities and townships within the school district under
52.3section 298.28, subdivision 2, paragraph (c).
52.4(3) The amount of any voter approved referendum, facilities down payment, and
52.5debt levies shall not be reduced by more than 50 percent under this subdivision, except
52.6that payments under section 298.28, subdivision 7a, may reduce the debt service levy by
52.7more than 50 percent. In administering this paragraph, the commissioner shall first reduce
52.8the nonvoter approved levies of a district; then, if any payments, severed mineral value
52.9tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
52.10reduce any voter approved referendum levies authorized under section 126C.17; then, if
52.11any payments, severed mineral value tax revenue or recognized revenue under paragraph
52.12(2) remains, the commissioner shall reduce any voter approved facilities down payment
52.13levies authorized under section 123B.63 and then, if any payments, severed mineral value
52.14tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
52.15reduce any voter approved debt levies.
52.16(4) Before computing the reduction pursuant to this subdivision of the health and
52.17safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
52.18shall ascertain from each affected school district the amount it proposes to levy under
52.19each section or subdivision. The reduction shall be computed on the basis of the amount
52.20so ascertained.
52.21(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
52.22limitation in paragraph (3), an amount equal to the excess must be distributed from the
52.23school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
52.24year to the cities and townships within the school district in the proportion that their
52.25taxable net tax capacity within the school district bears to the taxable net tax capacity of
52.26the school district for property taxes payable in the year prior to distribution. No city or
52.27township shall receive a distribution greater than its levy for taxes payable in the year prior
52.28to distribution. The commissioner of revenue shall certify the distributions of cities and
52.29towns under this paragraph to the county auditor by September 30 of the year preceding
52.30distribution. The county auditor shall reduce the proposed and final levies of cities and
52.31towns receiving distributions by the amount of their distribution. Distributions to the cities
52.32and towns shall be made at the times provided under section 298.27.

52.33    Sec. 12. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
52.34    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
52.35375.192 , or otherwise, the net tax capacity or referendum market value of any district for
53.1any taxable year is changed after the taxes for that year have been spread by the county
53.2auditor and the local tax rate as determined by the county auditor based upon the original
53.3net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
53.4prior to February 1 of each year, certify to the commissioner of education the amount of
53.5any resulting net revenue loss that accrued to the district during the preceding year. Each
53.6year, the commissioner shall pay an abatement adjustment to the district in an amount
53.7calculated according to the provisions of this subdivision. This amount shall be deducted
53.8from the amount of the levy authorized by section 126C.46. The amount of the abatement
53.9adjustment must be the product of:
53.10    (1) the net revenue loss as certified by the county auditor, times
53.11    (2) the ratio of:
53.12    (i) the sum of the amounts of the district's certified levy in the third preceding year
53.13according to the following:
53.14    (A) section 123B.57, if the district received health and safety aid according to that
53.15section for the second preceding year;
53.16    (B) section 124D.20, if the district received aid for community education programs
53.17according to that section for the second preceding year;
53.18    (C) section 124D.135, subdivision 3, if the district received early childhood family
53.19education aid according to section 124D.135 for the second preceding year;
53.20    (D) section 126C.17, subdivision 6, if the district received referendum equalization
53.21aid according to that section for the second preceding year;
53.22    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
53.23according to section 126C.10, subdivision 13b, in the second preceding year;
53.24    (F) section 126C.10, subdivision 29, if the district received equity aid according to
53.25section 126C.10, subdivision 30, in the second preceding year;
53.26    (G) section 126C.10, subdivision 32, if the district received transition aid according
53.27to section 126C.10, subdivision 33, in the second preceding year;
53.28    (H) section 123B.53, subdivision 5, if the district received debt service equalization
53.29aid according to section 123B.53, subdivision 6, in the second preceding year;
53.30    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
53.31service equalization aid according to section 123B.535, subdivision 5, in the second
53.32preceding year;
53.33    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
53.34according to section 124D.22, subdivision 4, in the second preceding year;
53.35    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
53.36aid according to section 123B.591, subdivision 4, in the second preceding year; and
54.1    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
54.2compensation equalization aid according to section 126C.10, subdivision 36, paragraph
54.3(a), in the second preceding year; to
54.4    (ii) the total amount of the district's certified levy in the third preceding December,
54.5plus or minus auditor's adjustments.
54.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
54.7and later.

54.8    Sec. 13. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
54.9    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
54.10district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
54.11decertification of a tax increment district, the school district's aid and levy limitations
54.12must be adjusted for the fiscal year in which the excess tax increment is paid under the
54.13provisions of this subdivision.
54.14    (b) An amount must be subtracted from the district's aid for the current fiscal year
54.15equal to the product of:
54.16    (1) the amount of the payment of excess tax increment to the district, times
54.17    (2) the ratio of:
54.18    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
54.19the excess tax increment is paid according to the following:
54.20    (A) section 123B.57, if the district received health and safety aid according to that
54.21section for the second preceding year;
54.22    (B) section 124D.20, if the district received aid for community education programs
54.23according to that section for the second preceding year;
54.24    (C) section 124D.135, subdivision 3, if the district received early childhood family
54.25education aid according to section 124D.135 for the second preceding year;
54.26    (D) section 126C.17, subdivision 6, if the district received referendum equalization
54.27aid according to that section for the second preceding year;
54.28    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
54.29according to section 126C.10, subdivision 13b, in the second preceding year;
54.30    (F) section 126C.10, subdivision 29, if the district received equity aid according to
54.31section 126C.10, subdivision 30, in the second preceding year;
54.32    (G) section 126C.10, subdivision 32, if the district received transition aid according
54.33to section 126C.10, subdivision 33, in the second preceding year;
54.34    (H) section 123B.53, subdivision 5, if the district received debt service equalization
54.35aid according to section 123B.53, subdivision 6, in the second preceding year;
55.1    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
55.2service equalization aid according to section 123B.535, subdivision 5, in the second
55.3preceding year;
55.4    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
55.5according to section 124D.22, subdivision 4, in the second preceding year;
55.6    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
55.7aid according to section 123B.591, subdivision 4, in the second preceding year; and
55.8    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
55.9compensation equalization aid according to section 126C.10, subdivision 36, paragraph
55.10(a), in the second preceding year; to
55.11    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
55.12auditor's adjustments.
55.13    (c) An amount must be subtracted from the school district's levy limitation for the
55.14next levy certified equal to the difference between:
55.15    (1) the amount of the distribution of excess increment; and
55.16    (2) the amount subtracted from aid pursuant to clause (a).
55.17    If the aid and levy reductions required by this subdivision cannot be made to the aid
55.18for the fiscal year specified or to the levy specified, the reductions must be made from
55.19aid for subsequent fiscal years, and from subsequent levies. The school district must use
55.20the payment of excess tax increment to replace the aid and levy revenue reduced under
55.21this subdivision.
55.22    (d) This subdivision applies only to the total amount of excess increments received
55.23by a district for a calendar year that exceeds $25,000.
55.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
55.25and later.

55.26    Sec. 14. Laws 2013, chapter 116, article 6, section 12, subdivision 5, is amended to read:
55.27    Subd. 5. Equity in telecommunications access. For equity in telecommunications
55.28access:

55.29		$	3,750,000	.....	2014
55.30 55.31		$	3,750,000 8,750,000	.....	2015

55.32If the appropriation amount is insufficient, the commissioner shall reduce the
55.33reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
55.34revenue for fiscal years 2014 and 2015 shall be prorated.
56.1Any balance in the first year does not cancel but is available in the second year.
56.2 The base appropriation for this program for fiscal years 2016 and 2017 is $8,750,000
56.3for each year.

56.4    Sec. 15. HARAMBEE COMMUNITY SCHOOL TRANSITION.
56.5    Subdivision 1. Facilities. Notwithstanding the appropriations of state general
56.6obligation bond proceeds in Laws 1994, chapter 643, section 14, subdivision 7, to Joint
56.7Powers District No. 6067, East Metro Integration District, to acquire and better the
56.8Harambee community school, in Maplewood, the real and personal property of the
56.9Harambee school, may be conveyed to Independent School District No. 623, Roseville,
56.10for operation of a multidistrict integration facility that serves students in any grade from
56.11early education through grade 12.
56.12    Subd. 2. Student enrollment. A student enrolled in the Harambee community
56.13school during the 2013-2014 school year may continue to enroll in the Harambee
56.14community school in any subsequent year. For the 2014-2015 school year and later, other
56.15students may apply for enrollment under Minnesota Statutes, section 124D.03.
56.16    Subd. 3. Compensatory revenue; literacy aid; alternative compensation
56.17revenue. For the 2014-2015 school year only, the Department of Education must calculate
56.18compensatory revenue, literacy aid, and alternative compensation revenue for the
56.19Harambee community school based on the October 1, 2013, enrollment counts.
56.20    Subd. 4. Year-round programming. Harambee community school may operate as
56.21a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
56.22    Subd. 5. Pupil transportation. The board may transport pupils enrolled in the
56.232013-2014 school year to and from the Harambee community school in succeeding school
56.24years regardless of the students' districts of residence. Pupil transportation expenses under
56.25this section are reimbursable under Minnesota Statutes, section 124D.87.

56.26    Sec. 16. LEASE LEVY; TRANSPORTATION HUB FOR ROSEMOUNT-APPLE
56.27VALLEY-EAGAN SCHOOL DISTRICT.
56.28Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
56.29School District No. 196, Rosemount-Apple Valley-Eagan, may lease a transportation
56.30hub under Minnesota Statutes, section 126C.40, subdivision 1. Levy authority under
56.31this section shall not exceed the total levy authority under Minnesota Statutes, section
56.32126C.40, subdivision 1, paragraph (e).
57.1EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

57.2    Sec. 17. REPEALER.
57.3Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.
57.4Page 214, delete Article 21, and insert:


57.7    Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
57.8is amended to read:
57.9    Subdivision 1. School lunch aid computation. Each school year, the state must
57.10pay participants in the national school lunch program the amount of 12.5 cents for each
57.11full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
57.12lunch served to students.
57.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
57.14and later.

57.15    Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a
57.16subdivision to read:
57.17    Subd. 4. No fees. A participant that receives school lunch aid under this section
57.18must make lunch available without charge to all participating students who qualify for
57.19free or reduced-price meals. The participant must also ensure that any reminders for
57.20payment of outstanding student meal balances do not demean or stigmatize any child
57.21participating in the school lunch program.
57.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
57.23and later.

57.24    Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
57.25    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
57.26section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

57.27 57.28		$	13,032,000 12,417,000	.....	2014
57.29 57.30		$	13,293,000 16,185,000	.....	2015

57.31Page 215, delete Article 22, and insert:


58.4    Section 1. Minnesota Statutes 2012, section 121A.19, is amended to read:
58.5121A.19 DEVELOPMENTAL SCREENING AID.
58.6    Each school year, the state must pay a district for each child or student screened by
58.7the district according to the requirements of section 121A.17. The amount of state aid
58.8for each child or student screened shall be: (1) $75 $80 for a child screened at age three;
58.9(2) $50 $55 for a child screened at age four; (3) $40 for a child screened at age five or
58.10six prior to kindergarten; and (4) $30 for a student screened within 30 days after first
58.11enrolling in a public school kindergarten if the student has not previously been screened
58.12according to the requirements of section 121A.17. If this amount of aid is insufficient,
58.13the district may permanently transfer from the general fund an amount that, when added
58.14to the aid, is sufficient. Developmental screening aid shall not be paid for any student
58.15who is screened more than 30 days after the first day of attendance at a public school
58.16kindergarten, except if a student transfers to another public school kindergarten within
58.1730 days after first enrolling in a Minnesota public school kindergarten program. In this
58.18case, if the student has not been screened, the district to which the student transfers may
58.19receive developmental screening aid for screening that student when the screening is
58.20performed within 30 days of the transfer date.
58.21EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
58.22and later.

58.23    Sec. 2. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
58.24    Subd. 2. Amount of aid. (a) A district is eligible to receive school readiness aid
58.25for eligible prekindergarten pupils enrolled in a school readiness program under section
58.26124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
58.27approved by the commissioner.
58.28(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid
58.29equal to:
58.30(1) the number of four-year-old children in the district on October 1 for the previous
58.31school year times the ratio of 50 percent of the total school readiness aid for that year to
58.32the total number of four-year-old children reported to the commissioner for the previous
58.33school year; plus
59.1(2) the number of pupils enrolled in the school district from families eligible for the
59.2free or reduced school lunch program for the previous school year times the ratio of
59.350 percent of the total school readiness aid for that year to the total number of pupils
59.4in the state from families eligible for the free or reduced school lunch program for the
59.5previous school year.
59.6(c) For fiscal year 2015 and later, total school readiness aid equals $11,000,000.
59.7EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
59.8and later.

59.9    Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, is
59.10amended to read:
59.11    Subd. 5. Report required. The commissioner shall contract with an independent
59.12contractor to evaluate the early learning scholarship program. The evaluation must
59.13include recommendations regarding the appropriate scholarship amount, efficiency, and
59.14effectiveness of the administration, and impact on kindergarten readiness. By January
59.1515, 2016, the commissioner shall submit a written copy of the evaluation to the chairs
59.16and ranking minority members of the legislative committees and divisions with primary
59.17jurisdiction over kindergarten through grade 12 education.

59.18    Sec. 4. Minnesota Statutes 2012, section 124D.522, is amended to read:
59.19124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
59.20GRANTS.
59.21(a) The commissioner, in consultation with the policy review task force under
59.22section 124D.521, may make grants to nonprofit organizations to provide services that
59.23are not offered by a district adult basic education program or that are supplemental to
59.24either the statewide adult basic education program, or a district's adult basic education
59.25program. The commissioner may make grants for: staff development for adult basic
59.26education teachers and administrators; training for volunteer tutors; training, services, and
59.27materials for serving disabled students through adult basic education programs; statewide
59.28promotion of adult basic education services and programs; development and dissemination
59.29of instructional and administrative technology for adult basic education programs;
59.30programs which primarily serve communities of color; adult basic education distance
59.31learning projects, including television instruction programs; and other supplemental
59.32services to support the mission of adult basic education and innovative delivery of adult
59.33basic education services.
60.1(b) The commissioner must establish eligibility criteria and grant application
60.2procedures. Grants under this section must support services throughout the state, focus on
60.3educational results for adult learners, and promote outcome-based achievement through
60.4adult basic education programs. Beginning in fiscal year 2002, the commissioner may
60.5make grants under this section from the state total adult basic education aid set aside for
60.6supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
60.7for supplemental service grants must be used for grants for adult basic education programs
60.8to encourage and support innovations in adult basic education instruction and service
60.9delivery. A grant to a single organization cannot exceed 20 40 percent of the total
60.10supplemental services aid. Nothing in this section prevents an approved adult basic
60.11education program from using state or federal aid to purchase supplemental services.

60.12    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is
60.13amended to read:
60.14    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
60.15education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
60.16during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
60.17(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
60.18fiscal years equals:
60.19    (1) the state total adult basic education aid for the preceding fiscal year plus any
60.20amount that is not paid for during the previous fiscal year, as a result of adjustments under
60.21subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
60.22    (2) the lesser of:
60.23    (i) 1.025 1.03; or
60.24    (ii) the average growth in state total contact hours over the prior ten program years.
60.25    Beginning in fiscal year 2002, two Three percent of the state total adult basic
60.26education aid must be set aside for adult basic education supplemental service grants
60.27under section 124D.522.
60.28    (b) The state total adult basic education aid, excluding basic population aid, equals
60.29the difference between the amount computed in paragraph (a), and the state total basic
60.30population aid under subdivision 2.
60.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
60.32and later.

60.33    Sec. 6. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
61.1    Subd. 3. Program revenue. Adult basic education programs established under
61.2section 124D.52 and approved by the commissioner are eligible for revenue under this
61.3subdivision. For fiscal year 2001 and later, adult basic education revenue for each
61.4approved program equals the sum of:
61.5(1) the basic population aid under subdivision 2 for districts participating in the
61.6program during the current program year; plus
61.7(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
61.8ratio of the contact hours for students participating in the program during the first prior
61.9program year to the state total contact hours during the first prior program year; plus
61.10(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
61.11the ratio of the enrollment of English learners during the second prior school year in
61.12districts participating in the program during the current program year to the state total
61.13enrollment of English learners during the second prior school year in districts participating
61.14in adult basic education programs during the current program year; plus
61.15(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
61.16the ratio of the latest federal census count of the number of adults aged 20 25 or older
61.17with no diploma residing in the districts participating in the program during the current
61.18program year to the latest federal census count of the state total number of adults aged 20
61.19 25 or older with no diploma residing in the districts participating in adult basic education
61.20programs during the current program year.

61.21    Sec. 7. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
61.22    Subd. 2. School readiness. For revenue for school readiness programs under
61.23Minnesota Statutes, sections 124D.15 and 124D.16:

61.24 61.25		$	10,095,000 10,458,000	.....	2014
61.26 61.27		$	10,159,000 10,909,000	.....	2015

61.28The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
61.29 for 2014.
61.30The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
61.31 $9,900,000 for 2015.

61.32    Sec. 8. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
61.33    Subd. 4. Health and developmental screening aid. For health and developmental
61.34screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

62.1		$	3,421,000	.....	2014
62.2 62.3		$	3,344,000 3,569,000	.....	2015

62.4The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
62.5The 2015 appropriation includes $463,000 for 2014 and $2,881,000 $3,106,000
62.6 for 2015.

62.7    Sec. 9. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
62.8    Subd. 14. Adult basic education aid. For adult basic education aid under
62.9Minnesota Statutes, section 124D.531:

62.10 62.11		$	47,005,000 48,782,000	.....	2014
62.12 62.13		$	48,145,000 48,415,000	.....	2015

62.14The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
62.15 for 2014.
62.16The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
62.17 $43,693,000 for 2015.

62.18    Sec. 10. APPROPRIATIONS.
62.19    Subdivision 1. Department of Education. The sums indicated in this section are
62.20appropriated from the general fund to the Department of Education for the fiscal years
62.21designated.
62.22    Subd. 2. Northside Achievement Zone. (a) For a grant to the Northside
62.23Achievement Zone:

62.24

$

1,132,000

.....

2015

62.25(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
62.26and the educational achievement gap through increased enrollment of families within
62.27the zone, and may be used for Northside Achievement Zone programming and services
62.28consistent with federal Promise Neighborhood program agreements and requirements.
62.29(c) The Northside Achievement Zone shall submit a report by October 1, 2015, to
62.30the chairs of the legislative committees with jurisdiction over early childhood through
62.31grade 12 education policy and finance that, at a minimum, summarizes program activities,
62.32specifies performance measures, and analyzes program outcomes.
62.33    (d) The base appropriation for fiscal year 2016 is $1,132,000. The base appropriation
62.34for fiscal year 2017 and later is $291,000.
63.1    Subd. 3. St. Paul Promise Neighborhood. (a) For a grant to the St. Paul Promise
63.2Neighborhood:

63.3

$

1,132,000

.....

2015

63.4(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
63.5and the educational achievement gap through increased enrollment of families within the
63.6zone, and may be used for St. Paul Promise Neighborhood programming and services
63.7consistent with federal Promise Neighborhood program agreements and requirements.
63.8(c) The St. Paul Promise Neighborhood shall submit a report by October 1, 2015, to
63.9the chairs of the legislative committees with jurisdiction over early childhood through
63.10grade 12 education policy and finance that, at a minimum, summarizes program activities,
63.11specifies performance measures, and analyzes program outcomes.
63.12    (d) The base appropriation for fiscal year 2016 is $1,132,000. The base appropriation
63.13for fiscal year 2017 and later is $291,000.
63.14Page 220, delete Article 23, and insert:


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

63.19		$	20,058,000	.....	2014
63.20 63.21		$	19,308,000 19,591,000	.....	2015

63.22Any balance in the first year does not cancel but is available in the second year.
63.23(b) $260,000 each year is for the Minnesota Children's Museum.
63.24(c) $41,000 each year is for the Minnesota Academy of Science.
63.25(d) $50,000 each year is for the Duluth Children's Museum.
63.26(e) $618,000 each year is for the Board of Teaching. Any balance in the first year
63.27does not cancel but is available in the second year.
63.28(f) $167,000 each year is for the Board of School Administrators. Any balance in
63.29the first year does not cancel but is available in the second year.
63.30(g) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263,
63.31section 1.
63.32(h) The expenditures of federal grants and aids as shown in the biennial budget
63.33document and its supplements are approved and appropriated and shall be spent as
63.34indicated.
64.1(h) (i) None of the amounts appropriated under this subdivision may be used for
64.2Minnesota's Washington, D.C. office.
64.3(i) (j) $250,000 each year is for the School Finance Division to enhance financial
64.4data analysis.
64.5(j) (k) $750,000 in fiscal year 2014 only is for departmental costs associated with
64.6teacher development and evaluation. Any balance in the first year does not cancel and
64.7is available in the second year.

64.8    Sec. 2. Laws 2013, chapter 116, article 9, section 2, is amended to read:
64.9    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
64.10The sums indicated in this section are appropriated from the general fund to the
64.11Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

64.12		$	11,749,000	.....	2014
64.13 64.14		$	11,664,000 11,964,000	.....	2015

64.15$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
64.16kitchen facilities. Any balance in the first year does not cancel but is available in the
64.17second year.

64.18    Sec. 3. LOCAL ENRICHMENT GRANT PROGRAM.
64.19$752,000 in fiscal year 2015 is appropriated from the general fund to the
64.20commissioner for local enrichment grants. The commissioner may award grants to
64.21nonprofit organizations to reduce both multigenerational poverty and the educational
64.22achievement gap within a school attendance area or local community. The programs may
64.23include direct outreach efforts, science, technology, engineering, and math education
64.24initiatives, and other programs designed to expand access to educational and enrichment
64.25opportunities. Grant applicants must apply to the department in the form and manner
64.26specified by the commissioner. To the extent possible, the commissioner must ensure
64.27that grants are need and merit-based and distributed proportionately among geographic
64.28regions of the state.
64.29Page 222, delete Article 24, and insert:


65.1    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
65.2read:
65.3    Subd. 3. Enrollment options transportation. For transportation of pupils attending
65.4postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
65.5of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

65.6 65.7		$	44,000 37,000	.....	2014
65.8 65.9		$	48,000 40,000	.....	2015

65.10    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
65.11    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
65.12127A.49 :

65.13 65.14		$	2,747,000 2,876,000	.....	2014
65.15 65.16		$	3,136,000 3,103,000	.....	2015

65.17The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
65.18 for 2014.
65.19The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
65.20 $2,817,000 for 2015.

65.21    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
65.22    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
65.23Statutes, section 123A.485:

65.24 65.25		$	472,000 585,000	.....	2014
65.26 65.27		$	480,000 254,000	.....	2015

65.28The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
65.29The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
65.30 for 2015.

65.31    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
65.32    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
65.33Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

66.1 66.2		$	15,582,000 16,068,000	.....	2014
66.3 66.4		$	16,169,000 16,074,000	.....	2015

66.5The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
66.6 for 2014.
66.7The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
66.8 $14,522,000 for 2015.

66.9    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
66.10    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
66.11under Minnesota Statutes, section 123B.92, subdivision 9:

66.12 66.13		$	18,565,000 18,566,000	.....	2014
66.14 66.15		$	18,946,000 17,646,000	.....	2015

66.16The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
66.17 for 2014.
66.18The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
66.19 $15,880,000 for 2015.

66.20    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
66.21    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
66.22Statutes, section 124D.4531, subdivision 1b:

66.23 66.24		$	4,320,000 3,959,000	.....	2014
66.25 66.26		$	5,680,000 5,172,000	.....	2015

66.27The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
66.28The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
66.29 $4,733,000 for 2015.

66.31    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
66.32    Subd. 3. Achievement and integration aid. For achievement and integration aid
66.33under Minnesota Statutes, section 124D.862:

67.1 67.2		$	58,911,000 55,609,000	.....	2014
67.3 67.4		$	68,623,000 62,692,000	.....	2015

67.5The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
67.6The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
67.7 $56,514,000 for 2015.

67.8    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
67.9    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
67.10Statutes, section 124D.98:

67.11 67.12		$	52,514,000 50,998,000	.....	2014
67.13 67.14		$	53,818,000 47,458,000	.....	2015

67.15The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
67.16 for 2014.
67.17The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
67.18 $42,526,000 for 2015.

67.19    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
67.20    Subd. 5. Interdistrict desegregation or integration transportation grants. For
67.21interdistrict desegregation or integration transportation grants under Minnesota Statutes,
67.22section 124D.87:

67.23 67.24		$	13,968,000 13,521,000	.....	2014
67.25 67.26		$	14,712,000 14,248,000	.....	2015

67.27    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
67.28    Subd. 6. Success for the future. For American Indian success for the future grants
67.29under Minnesota Statutes, section 124D.81:

67.30 67.31		$	2,137,000 2,214,000	.....	2014
67.32		$	2,137,000	.....	2015

67.33The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
67.34 for 2014.
68.1The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
68.2 $1,924,000 for 2015.

68.3    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
68.4    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
68.5Statutes, section 124D.83:

68.6 68.7		$	2,080,000 2,144,000	.....	2014
68.8 68.9		$	2,230,000 2,152,000	.....	2015

68.10The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
68.11 for 2014.
68.12The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
68.13 $1,944,000 for 2015.

68.14    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to
68.15read:
68.16    Subd. 20. Alternative compensation. For alternative teacher compensation aid
68.17under Minnesota Statutes, section 122A.415, subdivision 4:

68.18 68.19

$

60,340,000 71,599,000

.....

2015

68.20The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.

68.22    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
68.23    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
68.24Statutes, section 124D.11, subdivision 4:

68.25 68.26		$	54,484,000 54,763,000	.....	2014
68.27 68.28		$	59,533,000 58,294,000	.....	2015

68.29The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
68.30 for 2014.
68.31The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
68.32 $52,967,000 for 2015.

69.1    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
69.2    Subd. 2. Special education; regular. For special education aid under Minnesota
69.3Statutes, section 125A.75:

69.4 69.5		$	997,725,000 1,038,514,000	.....	2014
69.6 69.7		$	1,108,211,000 1,111,641,000	.....	2015

69.8The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
69.9 $920,282,000 for 2014.
69.10The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
69.11$938,282,000 $982,092,000 for 2015.

69.12    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
69.13    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
69.14section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
69.15within the district boundaries for whom no district of residence can be determined:

69.16 69.17		$	1,655,000 1,548,000	.....	2014
69.18 69.19		$	1,752,000 1,674,000	.....	2015

69.20If the appropriation for either year is insufficient, the appropriation for the other
69.21year is available.

69.22    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
69.23    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
69.24services under Minnesota Statutes, section 125A.75, subdivision 1:

69.25 69.26		$	345,000 351,000	.....	2014
69.27 69.28		$	355,000 346,000	.....	2015

69.29The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
69.30The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
69.31 for 2015.

69.33    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
69.34    Subd. 2. Health and safety revenue. For health and safety aid according to
69.35Minnesota Statutes, section 123B.57, subdivision 5:

70.1 70.2		$	463,000 473,000	.....	2014
70.3 70.4		$	434,000 651,000	.....	2015

70.5The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
70.6The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
70.7 for 2015.

70.8    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
70.9    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
70.10Statutes, section 123B.53, subdivision 6:

70.11 70.12		$	19,083,000 19,778,000	.....	2014
70.13 70.14		$	25,060,000 22,591,000	.....	2015

70.15The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
70.16 for 2014.
70.17The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
70.18 $20,660,000 for 2015.

70.19    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
70.20    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
70.21according to Minnesota Statutes, section 123B.59, subdivision 1:

70.22 70.23		$	19,287,000 19,982,000	.....	2014
70.24		$	19,287,000	.....	2015

70.25The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
70.26 for 2014.
70.27The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
70.28 $17,359,000 for 2015.

70.29    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
70.30    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
70.31Minnesota Statutes, section 123B.591, subdivision 4:

70.32 70.33		$	3,564,000 3,858,000	.....	2014
70.34 70.35		$	3,730,000 4,024,000	.....	2015

71.1The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
71.2 for 2014.
71.3The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
71.4 $3,646,000 for 2015.

71.6    Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
71.7    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
71.8Statutes, section 124D.1158:

71.9 71.10		$	5,711,000 5,308,000	.....	2014
71.11 71.12		$	6,022,000 5,607,000	.....	2015

71.13    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
71.14    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
71.15section 124D.118:

71.16 71.17		$	1,039,000 992,000	.....	2014
71.18 71.19		$	1,049,000 1,002,000	.....	2015

71.20    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
71.21    Subd. 6. Basic system support. For basic system support grants under Minnesota
71.22Statutes, section 134.355:

71.23 71.24		$	13,570,000 14,058,000	.....	2014
71.25 71.26		$	13,570,000 13,570,000	.....	2015

71.27The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
71.28 for 2014.
71.29The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
71.30 $12,213,000 for 2015.

71.31    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
71.32    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
71.33Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

72.1 72.2		$	1,300,000 1,346,000	.....	2014
72.3		$	1,300,000	.....	2015

72.4The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
72.5 for 2014.
72.6The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
72.7 $1,170,000 for 2015.

72.8    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
72.9    Subd. 9. Regional library telecommunications aid. For regional library
72.10telecommunications aid under Minnesota Statutes, section 134.355:

72.11 72.12		$	2,300,000 2,382,000	.....	2014
72.13		$	2,300,000	.....	2015

72.14The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
72.15 for 2014.
72.16The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
72.17 $2,070,000 for 2015.

72.20    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
72.21    Subd. 3. Early childhood family education aid. For early childhood family
72.22education aid under Minnesota Statutes, section 124D.135:

72.23 72.24		$	22,078,000 22,797,000	.....	2014
72.25 72.26		$	22,425,000 22,001,000	.....	2015

72.27The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
72.28 for 2014.
72.29The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
72.30 $19,803,000 for 2015.

72.31    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
72.32    Subd. 10. Community education aid. For community education aid under
72.33Minnesota Statutes, section 124D.20:

73.1 73.2		$	935,000 955,000	.....	2014
73.3 73.4		$	1,056,000 1,060,000	.....	2015

73.5The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
73.6The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
73.7 for 2015.

73.8    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
73.9    Subd. 11. Adults with disabilities program aid. For adults with disabilities
73.10programs under Minnesota Statutes, section 124D.56:

73.11 73.12		$	710,000 735,000	.....	2014
73.13		$	710,000	.....	2015

73.14The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
73.15The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
73.16 for 2015."
73.17Renumber the articles in sequence
73.18Amend the title accordingly